Leases

12 Months Ended

Dec. 31, 2024

Leases [Abstract]

Leases

Leases

The Company’s leases have remaining terms of less than one year to 16 years. Residual value guarantees are also 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 included in the Company's Consolidated Statements of Income for the years ended December 31 are as follows:

(in millions of Canadian dollars)	2024		2023		2022
Operating lease cost	$	111	$	94	$	77
Short-term lease cost	19		29		17
Variable lease cost	16		10		9
Sublease income	(2)		(1)		(2)
Finance lease cost
Amortization of ROU assets	11		10		6
Interest on lease liabilities	2		2		4
Total lease costs	$	157	$	144	$	111

ROU Assets and Lease Liabilities included in the Company's Consolidated Balance Sheet are as follows:

As at December 31 (in millions of Canadian dollars)	Classification	2024		2023
ROU Assets
Operating leases	Other assets (long-term)	$	364	$	347
Finance leases	Properties	102		111
Lease Liabilities
Current liabilities
Operating leases	Accounts payable and accrued liabilities	112		102
Finance leases	Long-term debt maturing within one year	14		14
Long-term liabilities
Operating leases	Other long-term liabilities	254		242
Finance leases	Long-term debt	21		31

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

	2024		2023
Weighted-Average Remaining Lease Term
Operating leases	4 years		5 years
Finance leases	4 years		4 years
Weighted-Average Discount Rate
Operating leases	3.61	%	3.93	%
Finance leases	5.39	%	6.18	%

Cash Flow information related to leases is as follows:

As at December 31 (in millions of Canadian dollars)	2024		2023		2022
Cash paid for amounts included in measurement of lease liabilities
Operating cash outflows from operating leases	$	114	$	96	$	64
Operating cash outflows from finance leases	1		2		6
Financing cash outflows from finance leases	13		13		104
ROU assets obtained in exchange for lease liabilities
Operating leases	105		62		34

The following table provides the maturities of lease liabilities for the next five years and thereafter as at December 31, 2024:

(in millions of Canadian dollars)	Finance leases		Operating leases
2025	$	7	$	126
2026	14		109
2027	10		78
2028	—		53
2029	—		26
Thereafter	7		16
Total lease future payments	38		408
Imputed interest	(3)		(42)
Present value of future lease payments	$	35	$	366

Leases

Leases

The Company’s leases have remaining terms of less than one year to 16 years. Residual value guarantees are also 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 included in the Company's Consolidated Statements of Income for the years ended December 31 are as follows:

(in millions of Canadian dollars)	2024		2023		2022
Operating lease cost	$	111	$	94	$	77
Short-term lease cost	19		29		17
Variable lease cost	16		10		9
Sublease income	(2)		(1)		(2)
Finance lease cost
Amortization of ROU assets	11		10		6
Interest on lease liabilities	2		2		4
Total lease costs	$	157	$	144	$	111

ROU Assets and Lease Liabilities included in the Company's Consolidated Balance Sheet are as follows:

As at December 31 (in millions of Canadian dollars)	Classification	2024		2023
ROU Assets
Operating leases	Other assets (long-term)	$	364	$	347
Finance leases	Properties	102		111
Lease Liabilities
Current liabilities
Operating leases	Accounts payable and accrued liabilities	112		102
Finance leases	Long-term debt maturing within one year	14		14
Long-term liabilities
Operating leases	Other long-term liabilities	254		242
Finance leases	Long-term debt	21		31

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

	2024		2023
Weighted-Average Remaining Lease Term
Operating leases	4 years		5 years
Finance leases	4 years		4 years
Weighted-Average Discount Rate
Operating leases	3.61	%	3.93	%
Finance leases	5.39	%	6.18	%

Cash Flow information related to leases is as follows:

As at December 31 (in millions of Canadian dollars)	2024		2023		2022
Cash paid for amounts included in measurement of lease liabilities
Operating cash outflows from operating leases	$	114	$	96	$	64
Operating cash outflows from finance leases	1		2		6
Financing cash outflows from finance leases	13		13		104
ROU assets obtained in exchange for lease liabilities
Operating leases	105		62		34

The following table provides the maturities of lease liabilities for the next five years and thereafter as at December 31, 2024:

(in millions of Canadian dollars)	Finance leases		Operating leases
2025	$	7	$	126
2026	14		109
2027	10		78
2028	—		53
2029	—		26
Thereafter	7		16
Total lease future payments	38		408
Imputed interest	(3)		(42)
Present value of future lease payments	$	35	$	366