financing costs

6 Months Ended

Jun. 30, 2020

financing costs

financing costs

9     financing costs

		Three months				Six months
Periods ended June 30 (millions)	Note	2020		2019		2020		2019
Interest expense
Interest on long-term debt, excluding lease liabilities – gross		$	169	$	161	$	339	$	311
Interest on long-term debt, excluding lease liabilities - capitalized 1	18(a)		(9)		(4)		(17)		(4)
Interest on long-term debt, excluding lease liabilities			160		157		322		307
Interest on lease liabilities	19		17		16		35		32
Interest on short-term borrowings and other			2		3		4		8
Interest accretion on provisions	25		4		5		9		11
Long-term debt prepayment premium	26(a)		18		—		18		—
			201		181		388		358
Employee defined benefit plans net interest	15		4		—		8		—
Foreign exchange			(1)		11		1		4
			204		192		397		362
Interest income			(2)		(3)		(3)		(5)
		$	202	$	189	$	394	$	357
Net interest cost	3					$	403	$	361
Interest on long-term debt, excluding lease liabilities - capitalized 1							(17)		(4)
Employee defined benefit plans net interest							8		—
						$	394	$	357

(1) Interest on long-term debt, excluding lease liabilities, interest at a composite rate of 4.33% was capitalized to intangible assets with indefinite lives in the period.