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Financial assets and liabilities | 6 Months Ended
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Jun. 30, 2019
Financial Instruments [Abstract] |
Financial assets and liabilities |
Note 11 Financial assets and liabilities
FAIR VALUE The following table provides the fair value details of financial instruments measured at amortized cost in the statements of financial position.
|  |  | JUNE 30, 2019 | DECEMBER 31, 2018
| CLASSIFICATION | FAIR VALUE METHODOLOGY | CARRYING VALUE |  | FAIR VALUE |  | CARRYING VALUE |  | FAIR VALUE |
CRTC tangible benefits obligation | Trade payables and other liabilities and other non-current liabilities | Present value of estimated future cash flows discounted using observable market interest rates | 35 |  | 35 |  | 61 |  | 61 |
CRTC deferral account obligation | Trade payables and other liabilities and other non-current liabilities | Present value of estimated future cash flows discounted using observable market interest rates | 82 |  | 86 |  | 108 |  | 112 |
Debt securities and other debt | Debt due within one year and long-term debt | Quoted market price of debt | 18,105 |  | 20,361 |  | 18,188 |  | 19,178 |
Finance leases (1) | Debt due within one year and long-term debt | Present value of future cash flows discounted using observable market interest rates | — |  | — |  | 2,097 |  | 2,304 |
(1) Upon adoption of IFRS 16 on January 1, 2019, fair value disclosures are no longer required for leases. The following table provides the fair value details of financial instruments measured at fair value in the statements of financial position.
|  |  | FAIR VALUE
| CLASSIFICATION | CARRYING VALUE OF ASSET (LIABILITY) |  | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) |  | OBSERVABLE MARKET DATA (LEVEL 2)(1) |  | NON-OBSERVABLE MARKET INPUTS (LEVEL 3)(2) |
June 30, 2019 |  |  |  |  |
Publicly-traded and privately-held investments | Other non-current assets | 121 |  | 1 |  | — |  | 120 |
Derivative financial instruments | Other current assets, trade payables and other liabilities, other non-current assets and liabilities | (73 | ) | — |  | (73 | ) | — |
Maple Leaf Sports & Entertainment Ltd. (MLSE) financial liability(3) | Trade payables and other liabilities | (135 | ) | — |  | — |  | (135 | )
Other | Other non-current assets and liabilities | 56 |  | 1 |  | 126 |  | (71 | )
December 31, 2018 |  |  |  |  |
Publicly-traded and privately-held investments | Other non-current assets | 110 |  | 1 |  | — |  | 109 |
Derivative financial instruments | Other current assets, trade payables and other liabilities, other non-current assets and liabilities | 181 |  | — |  | 181 |  | — |
MLSE financial liability(3) | Trade payables and other liabilities | (135 | ) | — |  | — |  | (135 | )
Other | Other non-current assets and liabilities | 43 |  | — |  | 114 |  | (71 | )
(1) | Observable market data such as equity prices, interest rates, swap rate curves and foreign currency exchange rates.
(2) | Non-observable market inputs such as discounted cash flows and earnings multiples. A reasonable change in our assumptions would not result in a significant increase (decrease) to our level 3 financial instruments.
(3) | Represents BCE’s obligation to repurchase the BCE Master Trust Fund's (Master Trust Fund) 9% interest in MLSE at a price not less than an agreed minimum price should the Master Trust Fund exercise its put option. The obligation to repurchase is marked to market each reporting period and the gain or loss is recorded in Other (expense) income in the income statements. The option has been exercisable since 2017.
CURRENCY EXPOSURES We use forward contracts, options and cross currency basis swaps to manage foreign currency risk related to anticipated purchases and sales and certain foreign currency debt. A 10% depreciation (appreciation) in the value of the Canadian dollar relative to the U.S. dollar would result in a loss (gain) of $8 million ($2 million) recognized in net earnings at June 30, 2019 and a gain (loss) of $186 million ($174 million) recognized in Other comprehensive (loss) income at June 30, 2019, with all other variables held constant. A 10% depreciation (appreciation) in the value of the Canadian dollar relative to the Philippines Peso would result in a gain (loss) of $3 million in Other comprehensive (loss) income at June 30, 2019, with all other variables held constant. In Q2 2019, we entered into a cross currency interest rate swap with a notional amount of $600 million in U.S. dollars ($808 million in Canadian dollars) to hedge the U.S. currency exposure of our Series US-2 Notes maturing in 2049. See Note 9, Debt, for additional details. The following table provides further details on our outstanding foreign currency forward contracts and options as at June 30, 2019.
TYPE OF HEDGE | BUY CURRENCY | AMOUNT TO RECEIVE |  | SELL CURRENCY | AMOUNT TO PAY |  | MATURITY |  | HEDGED ITEM
Cash flow | USD | 2,960 |  | CAD | 3,942 |  | 2019 |  | Commercial paper
Cash flow | USD | 419 |  | CAD | 520 |  | 2019 |  | Anticipated transactions
Cash flow | PHP | 892 |  | CAD | 22 |  | 2019 |  | Anticipated transactions
Cash flow | USD | 762 |  | CAD | 991 |  | 2020 |  | Anticipated transactions
Cash flow | PHP | 932 |  | CAD | 23 |  | 2020 |  | Anticipated transactions
Cash flow | USD | 40 |  | CAD | 50 |  | 2021 |  | Anticipated transactions
Economic | USD | 60 |  | CAD | 77 |  | 2019 |  | Anticipated transactions
Economic - put options | USD | 45 |  | CAD | 56 |  | 2019 |  | Anticipated transactions
Economic - put options | USD | 81 |  | CAD | 101 |  | 2020 |  | Anticipated transactions
Economic - call options | USD | 48 |  | CAD | 60 |  | 2020 |  | Anticipated transactions
INTEREST RATE EXPOSURES A 1% increase (decrease) in interest rates would result in a decrease (increase) of $36 million in net earnings at June 30, 2019. EQUITY PRICE EXPOSURES We use equity forward contracts on BCE’s common shares to economically hedge the cash flow exposure related to the settlement of equity settled share-based compensation plans and the equity price risk related to a cash-settled share-based payment plan. The fair value of our equity forward contracts at June 30, 2019 was an asset of $30 million. A 5% increase (decrease) in the market price of BCE’s common shares at June 30, 2019 would result in a gain (loss) of $38 million recognized in net earnings, with all other variables held constant.

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