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Financial Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2020

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, 2020 and 2019:

	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, 2020
Noncurrent:
Financial assets at fair value through profit or loss		—		—				380				—		380
Debt instruments at amortized cost – net of current portion		—		1,153				—				—		1,153
Other financial assets – net of current portion		—		2,915		⁽¹⁾		—				—		2,915
Current:
Cash and cash equivalents		40,237		—				—				—		40,237
Short-term investments		—		508				481		⁽²⁾		—		989
Trade and other receivables		—		22,053				—				—		22,053
Current portion of derivative financial assets		—		—				22				—		22
Current portion of financial assets at fair value through other comprehensive income		—		—				—				168		168
Current portion of other financial assets		—		200		⁽¹⁾		6,972		⁽³⁾		—		7,172
Total assets		40,237		26,829				7,855				168		75,089

Liabilities as at December 31, 2020
Noncurrent:
Interest-bearing financial liabilities – net of current portion		—		205,195				—				—		205,195
Lease liabilities – net of current portion		—		15,982				—				—		15,982
Derivative financial liabilities – net of current portion		—		—				360				—		360
Customers' deposits		—		2,371				—				—		2,371
Deferred credits and other noncurrent liabilities		—		1,683				—				—		1,683
Current:
Accounts payable		—		80,051				—				—		80,051
Accrued expenses and other current liabilities		—		79,000				7,849				—		86,849
Current portion of interest-bearing financial liabilities		—		17,570				—				—		17,570
Current portion of lease liabilities		—		4,043				—				—		4,043
Dividends payable		—		1,194				—				—		1,194
Current portion of derivative financial liabilities		—		—				176				—		176
Total liabilities		—		407,089				8,385				—		415,474
Net assets (liabilities)		40,237		(380,260	)			(530	)			168		(340,385	)

⁽¹⁾

Includes refundable deposits and notes receivables.

⁽²⁾

In December 2020, PLDT invested US$10.0 million in the Supply Chain Finance of Cedit Suisse equivalent to 9,114.59 shares.
The fund is invested in Notes backed by buyer-confirmed trade receivables/buyer payment undertakings, supplier payment undertakings and account receivables. Underlying credit risk of the Notes is insured by an insurance company with ratings of at least A by S&P and A2 by Moodys. As at December 31, 2020, the fund’s value is US$10.01 million.

⁽³⁾

Includes RCBC Redemption Trust Account. See Note 20 – Equity – Redemption of Preferred Stock.

	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		—		364,526			7,964		—		372,490
Net assets (liabilities)		24,369		(338,420	)		2,313		2,919		(308,819	)

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, 2020 and 2019:

	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, 2020
Current Financial Assets
Trade and other receivables
Foreign administrations		7,161		5,877		1,284
Domestic carriers		717		552		165
Total		7,878		6,429		1,449
Current Financial Liabilities
Accounts payable
Suppliers and contractors		75,394		72		75,322
Carriers and other customers		7,128		2,699		4,429
Total		82,522		2,771		79,751

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

Disclosure Of Carrying Amount And Fair Value Of Financial Instruments Explanatory

The following table sets forth our consolidated carrying values and estimated fair values of our financial assets and liabilities recognized as at December 31, 2020 and 2019 other than those whose carrying amounts are reasonable approximations of fair values:

	Carrying Value				Fair Value
	2020		2019		2020		2019
	(in million pesos)
Noncurrent Financial Assets
Debt instruments at amortized cost		1,153		—		1,163		—
Other financial assets – net of current portion		2,915		1,986		2,561		1,657
Total		4,068		1,986		3,724		1,657
Noncurrent Financial Liabilities
Interest-bearing financial liabilities:
Long-term debt – net of current portion		205,195		172,834		213,908		169,965
Customers' deposits		2,371		2,205		1,821		1,539
Deferred credits and other noncurrent liabilities		1,683		2,179		1,562		1,953
Total		209,249		177,218		217,291		173,457

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, 2020 and 2019. This classification provides a reasonable basis to illustrate the nature and extent of risks associated with those financial statements.

	2020								2019
	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
Financial assets at FVPL		61		294		25		380		2,442		304		623		3,369
Derivative financial assets – net of current portion		—		—		—		—		—		1		—		1
Financial assets at FVOCI – net of current portion		—		—		—		—		—		162		—		162
Current Financial Assets
Short-term investments		—		481		—		481		—		—		—		—
Current portion of derivative financial assets		—		22		—		22		—		41		—		41
Current portion of FVOCI		—		168		—		168		—		2,757		—		2,757
Current portion of other financial assets		—		6,972		—		6,972		—		6,866		—		6,866
Total		61		7,937		25		8,023		2,442		10,131		623		13,196

Noncurrent Financial Liabilities
Derivative financial liabilities – net of current portion		—		360		—		360		—		25		—		25
Current Financial Liabilities
Accrued expenses and other current liabilities		—		7,849		—		7,849		—		7,851		—		7,851
Current portion of derivative financial liabilities		—		176		—		176		—		88		—		88
Total		—		8,385		—		8,385		—		7,964		—		7,964

⁽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, 2020 and 2019:

										2020					2019
	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 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$16	Various dates in October 2020 to January 2021	U.S. Dollar Liabilities	Various dates in January to April 2021		—		Php48.40		US$13			(5	)	US$22			(12	)
	US$45	January to February 2021	U.S. Dollar Liabilities	Various dates in March to June 2021		—		Php48.26			—		—			—		—
	EUR5	Various dates in July and August 2019	EUR Assets	January 2020		—		Php58.65			—		—		EUR5			8
Smart
Forward foreign exchange contracts	US$144	Various dates in 2018 and 2019	U.S. Dollar Liabilities	Various dates in 2019		—		Php52.73			—		—			—		—
	US$260	Various dates in 2019 and 2020	U.S. Dollar Liabilities	Various dates in 2020		—		Php50.77			—		—		US$41			(22	)
	US$26	Various dates in 2020	U.S. Dollar Liabilities	Various dates in 2021		—		Php48.44		US$26			(9	)		—		—
	US$69	January to March 2021	U.S. Dollar Liabilities	February to June 2021		—		Php48.42			—		—			—		—
PCEV
Forward foreign exchange contracts	US$22	Various dates in 2019	U.S. Dollar Cash Conversion	Various dates in 2019		—		Php52.24			—		—			—		—
													(14	)				(26	)
Transactions designated as hedges:
PLDT
Interest rate swaps^(a)	US$100	August 2014	100 PNB	August 11, 2020		3.46	%		—		—		—		US$95			(6	)
	US$50	September 2014	50 Metrobank	September 2, 2020		3.47	%		—		—		—		US$48			(5	)
	US$150	April and June 2015	200 Term Loan	February 25, 2022		2.70	%		—	US$34			(25	)	US$56			2
Long-term currency swaps^(b)	US$4	January 2017	100 PNB	August 11, 2020		1.01	%	Php49.79			—		—		US$1			1
	US$6	April and June 2017	200 MUFG Bank, Ltd.	August 26,2019		1.63	%	Php49.51			—		—			—		—
	US$2	January 2018	200 MUFG Bank, Ltd.	August 26,2019		1.59	%	Php49.86			—		—			—		—
	US$6	February 2018	200 MUFG Bank, Ltd.	February 26, 2020		1.82	%	Php51.27			—		—		US$1			(2	)
	US$27	November 2018 to August 2020	200 MUFG Bank, Ltd.	February 25, 2022		2.15	%	Php50.78		US$16			(52	)	US$17			(30	)
Long-term foreign currency options^(c)	US$200	Various dates in July 2020 and February 2021	300M Notes 2031	January 23, 2031		1.26	%	Php50.00 Php56.00		US$200			(406	)		—		—
	US$80	February to March 2021	300M Notes 2031	January 23, 2031		1.07	%	Php48.75 Php53.69			—		—			—		—
													(483	)				(40	)
Smart
Interest rate swaps^(d)	US$85	Various dates in 2014 and 2015	100 Bank of Tokyo	March 7, 2019		2.23	%		—		—		—			—		—
	US$50	October 2, 2014	50 Mizuho	May 14, 2019		2.58	%		—		—		—			—		—
	US$200	Various dates in 2015	200 Mizuho	March 4, 2020		2.10	%		—		—		—		US$22			4
	US$30	February 2016	100 Mizuho	December 7, 2021		2.03	%		—	US$6			(2	)	US$12			5
Long-term currency swaps^(e)	US$18	Various dates in 2017, 2018 and 2019	100 Mizuho	December 7, 2020		1.76	%	Php50.98			—		—		US$9			(3	)
	US$13	Various dates in 2018 and 2019	200 Mizuho	March 4, 2020		2.06	%	Php51.93			—		—		US$4			(6	)
	US$6	February 2019	100 Mizuho	December 7, 2021		2.22	%	Php51.83		US$2			(8	)	US$4			(5	)
	US$6	August 2020	100 Mizuho	December 7, 2022		1.99	%	Php48.64		US$6			(7	)		—		—
Long-term foreign currency options^(f)	US$80	February to March 2021	140 PNB	December 13, 2030		1.64	%	Php48.00 Php53.48			—		—			—		—
													(17	)				(5	)
													(514	)				(71	)

(a)

PLDT’s interest rate swap agreements outstanding as at December 31, 2020 and 2019 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 losses amounting to Php16 million and Php11 million were recognized in our consolidated statements of other comprehensive income as at December 31, 2020 and 2019, respectively. Interest accrual on the interest rate swaps amounting to Php9 million and Php2 million were recorded as at December 31, 2020 and 2019, respectively. There were no ineffective portion in the fair value recognized in our consolidated income statements for the years ended December 31, 2020 and 2019.

(b)

PLDT’s long-term principal only-currency swap agreements outstanding as at December 31, 2020 and 2019 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 losses amounting to Php46 million and Php23 million were recognized in our consolidated statements of other comprehensive income as at December 31, 2020 and 2019, respectively. Hedge cost accrual on the long-term principal only-currency swaps amounting to Php6 million and Php7 million were recognized as at December 31, 2020 and 2019, 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 were recognized in our consolidated income statements for each of the years ended December 31, 2020 and 2019.

(c)

PLDT’s long-term foreign currency option agreements outstanding as at December 31, 2020 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. Settlement of the foreign currency option agreements will depend on the spot exchange rate on the fixing date. If the Philippine peso to U.S. dollar spot exchange rate on fixing date is between Php50.00 and Php56.00, PLDT will purchase the U.S. dollar at Php50.00. However, if on fixing date, the exchange rate is beyond Php56.00, PLDT will purchase the U.S. dollar at the prevailing Philippine peso to U.S. dollar spot exchange rate minus a subsidy of Php6.00, and if the exchange rate is lower than Php50.00, PLDT will purchase the U.S. dollar at the prevailing Philippine peso to U.S. dollar spot exchange rate. The mark-to-market losses amounting to Php342 million were recognized in our consolidated statement of other comprehensive income as at December 31, 2020. Hedge cost accrual on the long-term foreign currency option agreements amounting to Php64 million were recognized as at December 31, 2020. The intrinsic value of the long-term foreign currency options 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 Php26 million were recognized in our consolidated income statement for the year ended December 31, 2020.

(d)

Smart’s interest rate swap agreements outstanding as at December 31, 2020 and, 2019 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 Php2 million and mark-to-market gain amounting to Php6 million were recognized in our consolidated statements of other comprehensive income as at December 31, 2020 and 2019, respectively. Interest accrual amounting to Php197 thousand and interest reduction amounting to Php3 million were recognized as at December 31, 2020 and 2019, respectively. There were no ineffective portion in the fair value recognized in our consolidated income statements for the years ended December 31, 2020 and 2019.

(e)

Smart’s long-term principal only-currency swap agreements outstanding as at December 31, 2020 and 2019 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 losses amounting to Php13 million and Php12 million were recognized in our consolidated statements of other comprehensive income as at December 31, 2020 and 2019, respectively. Hedge cost accrual on the long-term principal only-currency swaps amounting to Php2 million each was recognized as at December 31, 2020 and 2019. 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 each was recognized in our consolidated income statements for the years ended December 31, 2020 and 2019.

(f)

Smart’s long-term foreign currency option agreements entered on various dates in February 2021 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. Settlement of the foreign currency option agreements will depend on the spot exchange rate on the fixing date. If the Philippine Peso to U.S. Dollar spot exchange rate on fixing date is between Php48.00 and Php54.00, Smart will purchase the U.S. Dollar at Php48.00. However, if on fixing date the exchange rate is beyond Php54.00, Smart will purchase the U.S. Dollar at the prevailing Philippine Peso to U.S. Dollar spot exchange rate minus a subsidy of Php6.00, and if the exchange rate is lower than Php48.00, Smart will purchase the U.S. Dollar at the prevailing Philippine Peso to U.S. Dollar spot exchange rate.

Summary of Derivative Financial Instruments by Classification

Our derivative financial instruments as at December 31, 2020 and 2019 are presented in the statements of financial position as follows:

	2020			2019
	(in million pesos)
Presented as:
Noncurrent assets		—			1
Current assets		22			41
Noncurrent liabilities (Note 29)		(360	)		(25	)
Current liabilities (Note 29)		(176	)		(88	)
Net liabilities		(514	)		(71	)

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, 2020 and 2019 are summarized as follows:

	2020			2019
	(in million pesos)
Net mark-to-market gains (losses) at beginning of the year		(71	)		243
Settlements, interest expense and others		430			235
Effective portion recognized in the profit or loss for the cash flow hedges		(156	)		14
Losses on derivative financial instruments (Note 4)		(284	)		(233	)
Net fair value losses on cash flow hedges charged to other comprehensive income		(433	)		(330	)
Net mark-to-market losses at end of the year		(514	)		(71	)

Disclosure Of Gains (Losses) On Derivative Financial Instruments Explanatory

Our consolidated analysis of gains (losses) on derivative financial instruments for the years ended December 31, 2020, 2019 and 2018 are as follows:

	2020			2019			2018
	(in million pesos)
Hedge costs		(94	)		(51	)		(49	)
Gains (losses) on derivative financial instruments (Note 4)		(284	)		(233	)		1,135
Net gains (losses) on derivative financial instruments (Notes 4 and 5)		(378	)		(284	)		1,086

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, 2020 and 2019:

	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
	(in million pesos)
December 31, 2020
Cash and cash equivalents		30,711		30,711		—		—		—
Temporary cash investments		30,711		30,711		—		—		—
Financial instruments at amortized cost:		43,654		40,165		2,286		732		471
Other financial assets		3,689		200		2,286		732		471
Debt instruments at amortized cost		1,153		1,153		—		—		—
Short-term investments		508		508		—		—		—
Retail subscribers		17,142		17,142		—		—		—
Corporate subscribers		13,318		13,318		—		—		—
Foreign administrations		1,520		1,520		—		—		—
Domestic carriers		226		226		—		—		—
Dealers, agents and others		6,098		6,098		—		—		—
Financial instruments at FVPL:		7,833		7,453		—		—		380
Financial assets at fair value through profit or loss		380		—		—		—		380
Short-term investments		481		481		—		—		—
Other financial assets		6,972		6,972		—		—		—
Financial instruments at FVOCI:		168		168		—		—		—
Financial assets at fair value through other comprehensive income		168		168		—		—		—
Total		82,366		78,497		2,286		732		851

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

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, 2020 and 2019:

	Payments Due by Period
	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
	(in million pesos)
December 31, 2020
Debt^(1):		292,639		12,562		74,960		51,659		153,458
Principal		224,027		12,400		47,753		37,785		126,089
Interest		68,612		162		27,207		13,874		27,369
Lease obligations		29,312		10,995		8,897		5,068		4,352
Various trade and other obligations:		169,808		165,750		2,010		36		2,012
Suppliers and contractors		76,864		75,322		1,535		7		—
Utilities and related expenses		64,580		64,577		3		—		—
Employee benefits		10,404		10,404		—		—		—
Liability from redemption of preferred shares		7,849		7,849		—		—		—
Customers’ deposits		2,371		—		330		29		2,012
Carriers and other customers		1,336		1,336		—		—		—
Dividends		1,194		1,194		—		—		—
Others		5,210		5,068		142		—		—
Total contractual obligations		491,759		189,307		85,867		56,763		159,822

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

⁽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, 2020 and 2019 are as follows:

	2020		2019
	(in million pesos)
Within one year		11,061		10,480
After one year but not more than five years		13,899		11,258
More than five years		4,352		3,727
Total		29,312		25,465

Summary of Impact of Hedging Instruments

The impact of the hedging instruments on our consolidated statements of financial position as at December 31, 2020 and 2019 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, 2020
Long-term currency swaps		24		—		Derivative financial assets – net of current portion
		—		(14	)	Derivative financial liabilities – net of current portion
		—		(48	)	Current portion of derivative financial liabilities
Long-term foreign currency options		200		(342	)	Derivative financial liabilities – net of current portion
		224		(404	)

December 31, 2019
Long-term currency swaps		36		1		Derivative financial assets – net of current portion
		—		3		Current portion of derivative financial assets
		—		(25	)	Derivative financial liabilities – net of current portion
		—		(24	)	Current portion of derivative financial liabilities
		36		(45	)

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, 2020 and 2019 are as follows:

		2020					2019
		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	)		—
US$100M PNB			(11	)		—		(11	)		—
US$200M MUFG Bank, Ltd.			(47	)		6		(48	)		8
US$300M Notes 2031			(414	)		64		—			—
			(745	)		70		(332	)		8

Smart:
US$200M Mizuho			(1	)		—		(12	)		5
US$100M Mizuho			(18	)		15		(22	)		12
			(19	)		15		(34	)		17

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, 2020 and 2019 are as follows:

	Total hedging loss recognized in OCI			Line item in our Consolidated Income Statements
	(in million pesos)
December 31, 2020
Long-term currency swaps		(350	)	Other comprehensive loss
Long-term foreign currency options		(414	)	Other comprehensive loss
		(764	)

December 31, 2019
Long-term currency swaps		(366	)	Other comprehensive loss

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, 2020 and 2019:

	2020				2019
	U.S. Dollar		Php⁽¹⁾		U.S. Dollar		Php⁽²⁾
	(in millions)
Noncurrent Financial Assets
Debt instruments at amortized cost		24		1,153		—		—
Derivative financial assets – net of current portion		—		—		—		1
Other financial assets – net of current portion		—		7		—		13
Total noncurrent financial assets		24		1,160		—		14
Current Financial Assets
Cash and cash equivalents		338		16,251		122		6,181
Short-term investments		10		480		6		285
Trade and other receivables – net		131		6,290		777		39,472
Current portion of derivative financial assets		1		22		1		41
Current portion of other financial assets		—		12		—		11
Total current financial assets		480		23,055		906		45,990
Total Financial Assets		504		24,215		906		46,004
Noncurrent Financial Liabilities
Interest-bearing financial liabilities – net of current portion		802		38,530		126		6,389
Derivative financial liabilities – net of current portion		7		360		—		25
Other noncurrent liabilities		1		22		—		15
Total noncurrent financial liabilities		810		38,912		126		6,429
Current Financial Liabilities
Accounts payable		670		32,201		676		34,325
Accrued expenses and other current liabilities		253		12,135		208		10,555
Current portion of interest-bearing financial liabilities		59		2,842		210		10,687
Current portion of derivative financial liabilities		4		176		2		88
Total current financial liabilities		986		47,354		1,096		55,655
Total Financial Liabilities		1,796		86,266		1,222		62,084

⁽¹⁾

The exchange rate used to convert the U.S. Dollar amounts into Philippine Peso was Php48.02 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, 2020.

⁽²⁾

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.

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, 2020 and 2019 are as follows:

	2020		2019
	(in million pesos)
Financial assets at fair value through profit or loss (Note 12)		380		3,369
Derivative financial assets – net of current portion		—		1
Current portion of derivative financial assets		22		41
Total		402		3,411

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

For financial assets recognized on our consolidated statements of financial position as at December 31, 2020 and 2019, the gross exposure to credit risk equal their carrying amount.

For financial guarantees granted, the maximum exposure to credit risk is the maximum amount that we would have to pay if the guarantees are called upon. For loan commitments and other credit related commitments that are irrevocable over the life of the respective facilities, the maximum exposure to credit risk is the full amount of the committed facilities.

	December 31, 2020
	Stage 1 12-Month ECL		Stage 2 Lifetime ECL		Stage 3 Lifetime ECL		Total
	(in million pesos)
High grade		44,618		8,239		—		52,857
Standard grade		563		4,443		—		5,006
Substandard grade		—		9,371		—		9,371
Default		574		3,960		12,291		16,825
Gross carrying amount		45,755		26,013		12,291		84,059
Less allowance		574		3,960		12,291		16,825
Carrying amount		45,181		22,053		—		67,234

	December 31, 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

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, 2020 and 2019:

	December 31, 2020
	Gross Maximum Exposure		Collateral and Other Credit Enhancements*		Net Maximum Exposure
	(in million pesos)
Cash and cash equivalents		40,237		173		40,064
Financial instruments at amortized cost:		26,829		355		26,474
Other financial assets		3,115		—		3,115
Debt instruments at amortized cost		1,153		—		1,153
Short-term investments		508		—		508
Retail subscribers		7,152		18		7,134
Corporate subscribers		8,460		337		8,123
Foreign administrations		1,284		—		1,284
Domestic carriers		165		—		165
Dealers, agents and others		4,992		—		4,992
Financial instruments at FVPL:		7,855		—		7,855
Financial assets at FVPL		380		—		380
Short-term investments		481		—		481
Other financial assets		6,972		—		6,972
Interest rate swap		22		—		22
Financial instruments at FVOCI:		168		—		168
Financial assets at FVOCI		168		—		168
Total		75,089		528		74,561

Includes bank insurance, security deposits and customer deposits. We have no collateral held as at December 31, 2020.

	December 31, 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.

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, 2020 and 2019:

			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, 2020
Cash and cash equivalents		40,237		39,956		281		—		—
Financial instruments at amortized cost:		43,654		12,733		4,725		9,371		16,825
Other financial assets		3,689		2,833		282		—		574
Debt instruments at amortized cost		1,153		1,153		—		—		—
Short-term investments		508		508		—		—		—
Retail subscribers		17,142		3,263		2,348		1,541		9,990
Corporate subscribers		13,318		3,358		228		4,874		4,858
Foreign administrations		1,520		246		567		471		236
Domestic carriers		226		14		38		113		61
Dealers, agents and others		6,098		1,358		1,262		2,372		1,106
Financial instruments at FVPL:		7,855		7,741		114		—		—
Financial assets at FVPL		380		266		114		—		—
Short-term investments		481		481		—		—		—
Other financial assets		6,972		6,972		—		—		—
Interest rate swap		22		22		—		—		—
Financial instruments at FVOCI:		168		168		—		—		—
Financial assets at FVOCI		168		168		—		—		—
Total		91,914		60,598		5,120		9,371		16,825

⁽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, 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⁾

⁽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, 2020 and 2019 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, 2020
Cash and cash equivalents		40,237		40,237		—		—		—		—
Financial instruments at amortized cost:		43,654		17,458		3,090		1,139		5,142		16,825
Other financial assets		3,689		3,115		—		—		—		574
Debt instruments at amortized cost		1,153		1,153		—		—		—		—
Short-term investments		508		508		—		—		—		—
Retail subscribers		17,142		5,611		884		348		309		9,990
Corporate subscribers		13,318		3,586		1,606		559		2,709		4,858
Foreign administrations		1,520		813		144		70		257		236
Domestic carriers		226		52		31		10		72		61
Dealers, agents and others		6,098		2,620		425		152		1,795		1,106
Financial instruments at FVPL:		7,855		7,855		—		—		—		—
Financial assets at FVPL		380		380		—		—		—		—
Short-term investments		481		481		—		—		—		—
Other financial assets		6,972		6,972		—		—		—		—
Interest rate swap		22		22		—		—		—		—
Financial instruments at FVOCI:		168		168		—		—		—		—
Financial assets at FVOCI		168		168		—		—		—		—
Total		91,914		65,718		3,090		1,139		5,142		16,825

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

Interest rate risk [member]