LEASES

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

LEASES

LEASES

LESSEE

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 year ended December 31, 2019, we incurred operating lease expenses of $113 million. Operating lease expenses are reported under Operating and administrative expenses on the Consolidated Statements of Earnings.

For the year ended December 31, 2019, operating lease payments to settle lease liabilities were $123 million. Operating lease payments are reported under operating activities in the Consolidated Statements of Cash Flows.

Supplemental Statements of Financial Position Information

	December 31, 2019		January 1, 2019
(millions of Canadian dollars, except lease term and discount rate)
Operating leases
Operating lease right-of-use assets, net1	713		771
Operating lease liabilities - current2	94		86
Operating lease liabilities - long-term3	689		770
Total operating lease liabilities	783		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 December 31, 2019, our operating lease liabilities are expected to mature as follows:

	Operating leases
(millions of Canadian dollars)
2020	128
2021	99
2022	94
2023	84
2024	79
Thereafter	588
Total undiscounted lease payments	1,072
Less imputed interest	(289	)
Total operating lease liabilities	783

LESSOR

We receive revenues from operating leases primarily related to natural gas and crude oil storage and processing facilities, rail cars, and wind power generation assets. Our operating leases have remaining lease terms of 2 months to 24 years.

Year ended December 31,	2019
(millions of Canadian dollars)
Operating lease income	265
Variable lease income	360
Total lease income1	625

1 Lease income is recorded under Transportation and other services in the Consolidated Statements of Earnings.

As at December 31, 2019, the following table sets out future lease payments to be received under operating lease contracts where we are the lessor:

	Operating leases
(millions of Canadian dollars)
2020	236
2021	199
2022	188
2023	180
2024	178
Thereafter	2,276
Future lease payments	3,257

LEASES

LEASES

LESSEE

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 year ended December 31, 2019, we incurred operating lease expenses of $113 million. Operating lease expenses are reported under Operating and administrative expenses on the Consolidated Statements of Earnings.

For the year ended December 31, 2019, operating lease payments to settle lease liabilities were $123 million. Operating lease payments are reported under operating activities in the Consolidated Statements of Cash Flows.

Supplemental Statements of Financial Position Information

	December 31, 2019		January 1, 2019
(millions of Canadian dollars, except lease term and discount rate)
Operating leases
Operating lease right-of-use assets, net1	713		771
Operating lease liabilities - current2	94		86
Operating lease liabilities - long-term3	689		770
Total operating lease liabilities	783		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 December 31, 2019, our operating lease liabilities are expected to mature as follows:

	Operating leases
(millions of Canadian dollars)
2020	128
2021	99
2022	94
2023	84
2024	79
Thereafter	588
Total undiscounted lease payments	1,072
Less imputed interest	(289	)
Total operating lease liabilities	783

LESSOR

We receive revenues from operating leases primarily related to natural gas and crude oil storage and processing facilities, rail cars, and wind power generation assets. Our operating leases have remaining lease terms of 2 months to 24 years.

Year ended December 31,	2019
(millions of Canadian dollars)
Operating lease income	265
Variable lease income	360
Total lease income1	625

1 Lease income is recorded under Transportation and other services in the Consolidated Statements of Earnings.

As at December 31, 2019, the following table sets out future lease payments to be received under operating lease contracts where we are the lessor:

	Operating leases
(millions of Canadian dollars)
2020	236
2021	199
2022	188
2023	180
2024	178
Thereafter	2,276
Future lease payments	3,257