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Long-Term Debt (Tables)
 12 Months Ended
Dec. 31, 2017
Text block1 [abstract]  
Summary of Carrying Value of Long Term Debt Instruments

(a) Carrying value of long-term debt instruments

 

As at December 31,   Issue date    Maturity date    Par value      2017      2016  

4.70% Senior notes(1),(3)

   June 23, 2016    June 23, 2046      US$  1,000      $ 1,246      $ 1,333  

5.375% Senior notes(2),(3)

   March 4, 2016    March 4, 2046      US$     750        928        994  

3.527% Senior notes(2),(3)

   December 2, 2016    December 2, 2026      US$     270        338        361  

4.150% Senior notes(2),(3)

   March 4, 2016    March 4, 2026      US$  1,000        1,246        1,333  

4.90% Senior notes(2),(3)

   September 17, 2010    September 17, 2020      US$     500        626        669  

7.768% Medium-term notes(4)

   April 8, 2009    April 8, 2019      $     600        –        599  

5.505% Medium-term notes(5)

   June 26, 2008    June 26, 2018      $     400        400        400  

Other notes payable(6)

   n/a    n/a      n/a        1        7  

Total

                      $   4,785      $   5,696  

 

(1) MFC may redeem the notes in whole, but not in part, on June 23, 2021 and thereafter on every June 23, at a redemption price equal to par, together with accrued and unpaid interest.
(2) MFC may redeem the senior notes in whole or in part, at any time, at a redemption price equal to the greater of par and a price based on the yield of a corresponding U.S. Treasury bond plus a specified number of basis points. The specified number of basis points is as follows: 5.375% – 40 bps, 3.527% – 20 bps, 4.150% – 35 bps, and 4.90% – 35 bps.
(3) These U.S. dollar senior notes have been designated as hedges of the Company’s net investment in its U.S. operations which reduces the earnings volatility that would otherwise arise from the re-measurement of these senior notes into Canadian dollars.
(4) On October 6, 2017, MFC redeemed, prior to maturity, all of its outstanding 7.768% medium term notes due April 8, 2019. The early redemption premium of $44 before income taxes was recorded as interest expense.
(5) MFC may redeem the medium-term notes in whole or in part, at any time, at a redemption price equal to the greater of par and a price based on the yield of a corresponding Government of Canada bond plus 39 basis points.
(6) Other notes payable were substantially repaid during the year.
Aggregate Maturities of Long-term Debt

(c) Aggregate maturities of long-term debt

 

As at December 31,    2017      2016  

Less than one year

    $ 401      $ 7  

One to two years

      –        400  

Two to three years

      626        599  

Three to four years

      –        669  

Four to five years

      –        –  

Greater than five years

      3,758        4,021  

Total

    $   4,785      $   5,696