LEASES

9 Months Ended

Sep. 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 3 months to 28 years.

For the three and nine months ended September 30, 2019, we incurred operating lease expenses of $28 million and $84 million, respectively. Operating lease expenses are reported under Operating and administrative expenses on the Consolidated Statements of Earnings.

For the three and nine months ended September 30, 2019, operating lease payments to settle lease liabilities were $31 million and $92 million, respectively. Operating lease payments are reported under operating activities in the Consolidated Statements of Cash Flows.

Supplemental Statements of Financial Position Information

	September 30, 2019		January 1, 2019
(millions of Canadian dollars, except lease term and discount rate)
Operating leases
Operating lease right-of-use assets, net1	733		771
Operating lease liabilities - current2	99		86
Operating lease liabilities - long-term3	705		770
Total operating lease liabilities	804		856
Weighted average remaining lease term
Operating leases	13 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 September 30, 2019, we have operating lease commitments as detailed below:

	Operating leases
(millions of Canadian dollars)
20191	30
2020	126
2021	98
2022	92
2023	82
Thereafter	666
Total undiscounted lease payments	1,094
Less imputed interest	(290	)
Total operating lease commitments	804

1 For the three 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 September 30, 2019	Nine months ended September 30, 2019
(millions of Canadian dollars)
Operating lease income	67	196
Variable lease income	77	262
Total lease income	144	458

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

	Operating leases
(millions of Canadian dollars)
20191	64
2020	238
2021	200
2022	189
2023	178
Thereafter	2,448
Total undiscounted lease payments	3,317

1

For the three 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 3 months to 28 years.

For the three and nine months ended September 30, 2019, we incurred operating lease expenses of $28 million and $84 million, respectively. Operating lease expenses are reported under Operating and administrative expenses on the Consolidated Statements of Earnings.

For the three and nine months ended September 30, 2019, operating lease payments to settle lease liabilities were $31 million and $92 million, respectively. Operating lease payments are reported under operating activities in the Consolidated Statements of Cash Flows.

Supplemental Statements of Financial Position Information

	September 30, 2019		January 1, 2019
(millions of Canadian dollars, except lease term and discount rate)
Operating leases
Operating lease right-of-use assets, net1	733		771
Operating lease liabilities - current2	99		86
Operating lease liabilities - long-term3	705		770
Total operating lease liabilities	804		856
Weighted average remaining lease term
Operating leases	13 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 September 30, 2019, we have operating lease commitments as detailed below:

	Operating leases
(millions of Canadian dollars)
20191	30
2020	126
2021	98
2022	92
2023	82
Thereafter	666
Total undiscounted lease payments	1,094
Less imputed interest	(290	)
Total operating lease commitments	804

1 For the three 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 September 30, 2019	Nine months ended September 30, 2019
(millions of Canadian dollars)
Operating lease income	67	196
Variable lease income	77	262
Total lease income	144	458

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

	Operating leases
(millions of Canadian dollars)
20191	64
2020	238
2021	200
2022	189
2023	178
Thereafter	2,448
Total undiscounted lease payments	3,317

1

For the three months remaining in the 2019 fiscal year.