Leases

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Leases

Leases

The Company’s leases have remaining terms of less than one year to 19 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)	2021		2020
Operating lease cost	$	74	$	83
Short-term lease cost	16		10
Variable lease cost	5		13
Sublease income	(3)		(3)
Finance Lease Cost
Amortization of right-of-use assets	10		9
Interest on lease liabilities	10		11
Total lease costs	$	112	$	123

Supplemental balance sheet information related to leases is as follows:

(in millions of Canadian dollars)	Classification	2021		2020
Assets
Operating	Other assets	$	287	$	316
Finance	Properties, net book value	166		171
Liabilities
Current
Operating	Accounts payable and accrued liabilities	59		63
Finance	Long-term debt maturing within one year	104		8
Long-term
Operating	Other long-term liabilities	224		248
Finance	Long-term debt	36		135

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

	2021		2020
Weighted-Average Remaining Lease Term
Operating leases	6 years		7 years
Finance leases	2 years		3 years
Weighted-Average Discount Rate
Operating leases	3.18	%	3.32	%
Finance leases	6.96	%	7.06	%

Supplemental information related to leases is as follows:

(in millions of Canadian dollars)	2021		2020
Cash paid for amounts included in measurement of lease liabilities
Operating cash outflows from operating leases	$	64	$	74
Operating cash outflows from finance leases	10		10
Financing cash outflows from finance leases	8		8
Right-of-use assets obtained in exchange for lease liabilities
Operating leases	36		34
Finance leases	5		4

The following table provides the maturities of lease liabilities for the next five years and thereafter as at December 31, 2021:

(in millions of Canadian dollars)	Finance Leases		Operating Leases
2022	$	107	$	66
2023	9		62
2024	9		50
2025	9		39
2026	9		34
Thereafter	7		60
Total lease payments	150		311
Imputed interest	(10)		(28)
Present value of lease payments	$	140	$	283

Leases

Leases

The Company’s leases have remaining terms of less than one year to 19 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)	2021		2020
Operating lease cost	$	74	$	83
Short-term lease cost	16		10
Variable lease cost	5		13
Sublease income	(3)		(3)
Finance Lease Cost
Amortization of right-of-use assets	10		9
Interest on lease liabilities	10		11
Total lease costs	$	112	$	123

Supplemental balance sheet information related to leases is as follows:

(in millions of Canadian dollars)	Classification	2021		2020
Assets
Operating	Other assets	$	287	$	316
Finance	Properties, net book value	166		171
Liabilities
Current
Operating	Accounts payable and accrued liabilities	59		63
Finance	Long-term debt maturing within one year	104		8
Long-term
Operating	Other long-term liabilities	224		248
Finance	Long-term debt	36		135

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

	2021		2020
Weighted-Average Remaining Lease Term
Operating leases	6 years		7 years
Finance leases	2 years		3 years
Weighted-Average Discount Rate
Operating leases	3.18	%	3.32	%
Finance leases	6.96	%	7.06	%

Supplemental information related to leases is as follows:

(in millions of Canadian dollars)	2021		2020
Cash paid for amounts included in measurement of lease liabilities
Operating cash outflows from operating leases	$	64	$	74
Operating cash outflows from finance leases	10		10
Financing cash outflows from finance leases	8		8
Right-of-use assets obtained in exchange for lease liabilities
Operating leases	36		34
Finance leases	5		4

The following table provides the maturities of lease liabilities for the next five years and thereafter as at December 31, 2021:

(in millions of Canadian dollars)	Finance Leases		Operating Leases
2022	$	107	$	66
2023	9		62
2024	9		50
2025	9		39
2026	9		34
Thereafter	7		60
Total lease payments	150		311
Imputed interest	(10)		(28)
Present value of lease payments	$	140	$	283