XML 161 R25.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Leases (Notes) | 12 Months Ended
--- | ---
Dec. 31, 2019
Leases [Abstract] |
Leases: Lessee | 17. Leases Effective January 1, 2019, we adopted ASU No. 2016-02 “Leases (Topic 842)” and the series of related Accounting Standards Updates that followed (collectively referred to as “Topic 842”). The most significant changes under the new guidance include clarification of the definition of a lease, and the requirements for lessees to recognize a ROU asset and a lease liability for all qualifying leases with terms longer than twelve months in the consolidated balance sheet. In addition, under Topic 842, additional disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. We elected the practical expedient available to us under ASU 2018-11 “Leases: Targeted Improvements,” which allows us to apply the transition provision for Topic 842 at our adoption date instead of at the earliest comparative period presented in our financial statements. Therefore, we recognized and measured leases existing at January 1, 2019 but without retrospective application. In addition, we elected the practical expedient permitted under the transition guidance related to land easements which allows us to carry forward our historical accounting treatment for land easements on existing agreements upon adoption. We also elected all other available practical expedients except the hindsight practical expedient. The impact of Topic 842 on our consolidated balance sheet beginning January 1, 2019 was through the recognition of ROU assets and lease liabilities for operating leases, while our accounting for finance leases remained substantially unchanged. Our finance leases were immaterial prior to the adoption of Topic 842, and no change was made to the classification for these leases. Amounts recognized at January 1, 2019 for operating leases were as follows (in millions):
| January 1, 2019
ROU assets | $ | 696 |
Short-term lease liability | 52 |
Long-term lease liability | 644 |
No impact was recorded to our consolidated income statement for the year ended December 31, 2019 or beginning accumulated deficit for Topic 842. Refer to Note 2 “Summary of Significant Accounting Policies—Leases” for a description of accounting for leases. Lessee Following are components of our lease cost (in millions):
| Year ended December 31, 2019
Operating leases | $ | 136 |
Short-term and variable leases | 92 |
Total lease cost(a) | $ | 228 |
_______
(a) | Includes $46 million of capitalized lease costs.
Other information related to our operating leases are as follows (in millions, except lease term and discount rate):
| Year ended December 31, 2019
Operating cash flows from operating leases | $ | (182 | )
Investing cash flows from operating leases | (46 | )
ROU assets obtained in exchange for operating lease obligations, net of retirements adjusted for currency conversion | 102 |
Amortization of ROU assets | 75 |
Removal of ROU assets and liabilities associated with the KML and U.S. Cochin Sale | (394 | )
Weighted average remaining lease term | 13.40 years |
Weighted average discount rate | 4.31 | %
Amounts recognized in the accompanying consolidated balance sheet are as follows (in millions):
Lease Activity | Balance sheet location | December 31, 2019
ROU assets | Deferred charges and other assets | $ | 329 |
Short-term lease liability | Other current liabilities | 40 |
Long-term lease liability | Other long-term liabilities and deferred credits | 289 |
Finance lease assets | Property, plant and equipment, net | 2 |
Finance lease liabilities | Long-term debt—Outstanding | 2 |
Operating lease liabilities under non-cancellable leases (excluding short-term leases) as of December 31, 2019 are as follows (in millions):
Year | Commitment
2020 | $ | 55 |
2021 | 45 |
2022 | 38 |
2023 | 32 |
2024 | 30 |
Thereafter | 267 |
Total lease payments | 467 |
Less: Interest | (138 | )
Present value of lease liabilities | $ | 329 |
Short-term lease costs are not material to us and are anticipated to be similar to the current year short-term lease expense outlined in this disclosure. Commitment Obligations Prior to January 1, 2019 Under ASC 840 Under the transition provision of Topic 842, we elected the effective date transition option. Following is the additional required transition disclosure for undiscounted future gross minimum operating lease payments and ROW obligations as of December 31, 2018 under ASC 840 (in millions):
| Leases(a) |  | ROW(b) |  | Total(c)
2019 | $ | 90 |  |  | $ | 25 |  |  | $ | 115 |
2020 | 75 |  |  | 25 |  |  | 100 |
2021 | 70 |  |  | 25 |  |  | 95 |
2022 | 65 |  |  | 26 |  |  | 91 |
2023 | 59 |  |  | 25 |  |  | 84 |
Thereafter | 771 |  |  | 88 |  |  | 859 |
Total payments | $ | 1,130 |  |  | $ | 214 |  |  | $ | 1,344 |
_______
(a) | Total future minimum lease obligations include $695 million for assets included in the KML and U.S. Cochin Sale (see Note 3).
(b) | Refer to Note 13 for additional information regarding our ROW obligations as of December 31, 2019.
(c) This table has been revised from the previously reported December 31, 2018 future gross minimum rental commitments under our operating leases and ROW obligations table in our 2018 Form 10-K to (i) separately present lease and ROW obligations and (ii) to correct amounts previously reported to include an additional $482 million of undiscounted future lease payments, primarily in the “Thereafter” amount associated with the 2018 extension of KML’s, Edmonton South tank lease through December 2038. As of December 31, 2019, we no longer have an obligation for this lease as the obligation was transferred to Pembina in the KML and U.S. Cochin Sale.

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration