Leases

12 Months Ended

Dec. 31, 2019

The Company’s leases have remaining terms of less than one year to 15 years, some include options to extend up to an additional 10 years, and some include options to terminate within one year.

Residual value guarantees are provided on certain rolling stock and vehicle operating leases. Cumulatively, these guarantees are limited to $2 million and are not included in lease liabilities as it is not currently probable that any amounts will be owed under these residual value guarantees.

The components of lease expense for the year ended December 31 are as follows:



(in millions of Canadian dollars)	2019
Operating lease cost	$	89
Short-term lease cost	10
Variable lease cost	13
Sublease income	(3		)

Finance Lease Cost
Amortization of right-of use-assets	9
Interest on lease liabilities	11
Total lease costs	$	129

Supplemental balance sheet information related to leases is as follows:



(in millions of Canadian dollars)	Classification	2019
Assets
Operating	Other assets	$	358
Finance	Properties, net book value	177

Liabilities
Current
Operating	Accounts payable and accrued liabilities	69
Finance	Long-term debt maturing within one year	7
Long-term
Operating	Other long-term liabilities	285
Finance	Long-term debt	144

The following table provides the Company's weighted-average remaining lease terms and discount rates:



	2019
Weighted-Average Remaining Lease Term
Operating leases	7 years
Finance leases	4 years

Weighted-Average Discount Rate
Operating leases	3.45	%
Finance leases	7.07	%

Supplemental information related to leases is as follows:



(in millions of Canadian dollars)	2019
Cash paid for amounts included in measurement of lease liabilities
Operating cash outflows from operating leases	$	82
Operating cash outflows from finance leases	10
Financing cash outflows from finance leases	6

Right-of-use assets obtained in exchange for lease liabilities
Operating leases	38
Finance leases	4

The following table provides the maturities of lease liabilities for the next five years and thereafter as at December 31, 2019:



(in millions of Canadian dollars)	Finance Leases			Operating Leases
2020	$	11		$	80
2021	10			55
2022	108			51
2023	8			39
2024	9			40
Thereafter	21			130
Total lease payments	167			395
Imputed interest	(16		)	(41		)
Present value of lease payments	$	151		$	354