Leases

12 Months Ended

Dec. 31, 2020

The Company’s leases have remaining terms of less than one year to 14 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 vehicle operating leases. Cumulatively, these guarantees are limited to $1 million and are not included in lease liabilities as it is not currently probable that any amounts will be owed.

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


(in millions of Canadian dollars)	2020		2019
Operating lease cost	$	83	$	89
Short-term lease cost	10		10
Variable lease cost	13		13
Sublease income	(3)		(3)

Finance Lease Cost
Amortization of right-of-use assets	9		9
Interest on lease liabilities	11		11
Total lease costs	$	123	$	129

Supplemental balance sheet information related to leases is as follows:


(in millions of Canadian dollars)	Classification	2020		2019
Assets
Operating	Other assets	$	316	$	358
Finance	Properties, net book value	171		177

Liabilities
Current
Operating	Accounts payable and accrued liabilities	63		69
Finance	Long-term debt maturing within one year	8		7
Long-term
Operating	Other long-term liabilities	248		285
Finance	Long-term debt	135		144

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


	2020		2019
Weighted-Average Remaining Lease Term
Operating leases	7 years		7 years
Finance leases	3 years		4 years

Weighted-Average Discount Rate
Operating leases	3.32	%	3.45	%
Finance leases	7.06	%	7.07	%

Supplemental information related to leases is as follows:


(in millions of Canadian dollars)	2020		2019
Cash paid for amounts included in measurement of lease liabilities
Operating cash outflows from operating leases	$	74	$	82
Operating cash outflows from finance leases	10		10
Financing cash outflows from finance leases	8		6

Right-of-use assets obtained in exchange for lease liabilities
Operating leases	34		38
Finance leases	4		4

The following table provides the maturities of lease liabilities for the next five years and thereafter as at December 31, 2020:


(in millions of Canadian dollars)	Finance Leases		Operating Leases
2021	$	11	$	71
2022	107		59
2023	9		53
2024	8		42
2025	8		34
Thereafter	12		88
Total lease payments	155		347
Imputed interest	(12)		(36)
Present value of lease payments	$	143	$	311