LEASES

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

LEASES

LEASES

We incur operating lease expenses related primarily to real estate, pipelines, storage and equipment. Our operating leases have remaining lease terms of 6 months to 29 years.

For the three and six months ended June 30, 2019, we incurred operating lease expenses of $28 million and $56 million, respectively. Operating lease expenses are reported under Operating and administrative expenses on the Consolidated Statements of Earnings.

For the three and six months ended June 30, 2019, operating lease payments to settle lease liabilities were $30 million and $61 million, respectively. Operating lease payments are reported under operating activities in the Consolidated Statements of Cash Flows.

Supplemental Statements of Financial Position Information

	June 30, 2019		January 1, 2019
(millions of Canadian dollars, except lease term and discount rate)
Operating leases
Operating lease right-of-use assets, net1	738		771
Operating lease liabilities - current2	99		86
Operating lease liabilities - long-term3	714		770
Total operating lease liabilities	813		856
Weighted average remaining lease term
Operating leases	14 years		14 years
Weighted average discount rate
Operating leases	4.3	%	4.3	%

1 Right-of-use assets are reported under Deferred amounts and other assets in the Consolidated Statements of Financial Position.

2 Current lease liabilities are reported under Accounts payable and other in the Consolidated Statements of Financial Position.

3 Long-term lease liabilities are reported under Other long-term liabilities in the Consolidated Statements of Financial Position.

As at June 30, 2019, we have operating lease commitments as detailed below:

	Operating leases
(millions of Canadian dollars)
20191	60
2020	124
2021	96
2022	91
2023	81
Thereafter	665
Total undiscounted lease payments	1,117
Less imputed interest	(304	)
Total operating lease commitments	813

1 For the six months remaining in the 2019 fiscal year.

LESSOR

We have operating leases primarily related to natural gas and crude oil storage and processing facilities, rail cars, and wind power generation assets. Our leases have remaining lease terms of 1 month to 24 years.

	Three months ended June 30, 2019	Six months ended June 30, 2019
(millions of Canadian dollars)
Operating lease income	66	130
Variable lease income	85	185
Total lease income	151	315

The following table sets out future minimum lease payments expected to be received under lease contracts where we are the lessor:

	Operating leases
(millions of Canadian dollars)
20191	131
2020	229
2021	196
2022	186
2023	178
Thereafter	2,391
Total undiscounted lease payments	3,311

1

For the six months remaining in the 2019 fiscal year.

LEASES

LEASES

We incur operating lease expenses related primarily to real estate, pipelines, storage and equipment. Our operating leases have remaining lease terms of 6 months to 29 years.

For the three and six months ended June 30, 2019, we incurred operating lease expenses of $28 million and $56 million, respectively. Operating lease expenses are reported under Operating and administrative expenses on the Consolidated Statements of Earnings.

For the three and six months ended June 30, 2019, operating lease payments to settle lease liabilities were $30 million and $61 million, respectively. Operating lease payments are reported under operating activities in the Consolidated Statements of Cash Flows.

Supplemental Statements of Financial Position Information

	June 30, 2019		January 1, 2019
(millions of Canadian dollars, except lease term and discount rate)
Operating leases
Operating lease right-of-use assets, net1	738		771
Operating lease liabilities - current2	99		86
Operating lease liabilities - long-term3	714		770
Total operating lease liabilities	813		856
Weighted average remaining lease term
Operating leases	14 years		14 years
Weighted average discount rate
Operating leases	4.3	%	4.3	%

1 Right-of-use assets are reported under Deferred amounts and other assets in the Consolidated Statements of Financial Position.

2 Current lease liabilities are reported under Accounts payable and other in the Consolidated Statements of Financial Position.

3 Long-term lease liabilities are reported under Other long-term liabilities in the Consolidated Statements of Financial Position.

As at June 30, 2019, we have operating lease commitments as detailed below:

	Operating leases
(millions of Canadian dollars)
20191	60
2020	124
2021	96
2022	91
2023	81
Thereafter	665
Total undiscounted lease payments	1,117
Less imputed interest	(304	)
Total operating lease commitments	813

1 For the six months remaining in the 2019 fiscal year.

LESSOR

We have operating leases primarily related to natural gas and crude oil storage and processing facilities, rail cars, and wind power generation assets. Our leases have remaining lease terms of 1 month to 24 years.

	Three months ended June 30, 2019	Six months ended June 30, 2019
(millions of Canadian dollars)
Operating lease income	66	130
Variable lease income	85	185
Total lease income	151	315

The following table sets out future minimum lease payments expected to be received under lease contracts where we are the lessor:

	Operating leases
(millions of Canadian dollars)
20191	131
2020	229
2021	196
2022	186
2023	178
Thereafter	2,391
Total undiscounted lease payments	3,311

1

For the six months remaining in the 2019 fiscal year.