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Leases | 12 Months Ended
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Dec. 31, 2019
Leased facilities | 14. Leases The company generally purchases the property, plant and equipment used in operations, but there are situations where assets are leased, primarily storage tanks, rail cars, marine vessels and transportation facilities. Right of use assets and lease liabilities are established on the balance sheet for leases with an expected term greater than one year, by discounting the amounts fixed in the lease agreement for the duration of the lease which is reasonably certain, considering the probability of exercising any early termination and extension options. The portion of the fixed payment related to service costs for tankers and finance leases is excluded from the calculation of right of use assets and lease liabilities. Usually, assets are leased only for a portion of their useful lives and are accounted for as operating leases. In limited situations assets are leased for nearly all of their useful lives and are accounted for as finance leases. In general, leases are capitalized using the company’s incremental borrowing rate. Variable payments under these lease agreements are not significant. Residual value guarantees, restrictions, or covenants related to leases, and transactions with related parties are also not significant. The company’s activities as a lessor are not material. At adoption of the lease accounting change (see note 2), on January 1, 2019, an operating lease liability of $298 million was recorded and the operating lease right of use asset was $298 million. There was no cumulative earnings effect adjustment. The table below summarizes the total lease cost incurred:
|  | 2019 |
millions of Canadian dollars |  | Operating leases |  |  | Finance leases |
Operating lease cost |  |  | 151 |  |  |  |  |
Short-term and other (net of sublease rental income) |  |  | 76 |  |  |  |  |
Amortization of right of use assets |  |  |  |  |  |  | 55 |
Interest on lease liabilities |  |  |  |  |  |  | 40 |
Total lease cost |  |  | 227 |  |  |  | 95 |
The following table summarizes the amounts related to operating leases and finance leases recorded on the Consolidated balance sheet as at December 31, 2019:
|  | 2019 |
millions of Canadian dollars |  | Operating leases |  |  | Finance leases |
Right of use assets |  |  |  |  |  |  |  |
Included in Other assets, including intangibles, net |  |  | 260 |  |  |  |  |
Included in Property, plant and equipment, net |  |  |  |  |  |  | 546 |
Total right of use assets |  |  | 260 |  |  |  | 546 |
Lease liability due within one year |  |  |  |  |  |  |  |
Included in Accounts payable and accrued liabilities |  |  | 115 |  |  |  | 15 |
Included in Notes and loans payable |  |  |  |  |  |  | 18 |
Long-term lease liability |  |  |  |  |  |  |  |
Included in Other long-term obligations |  |  | 143 |  |  |  | - |
Included in Long-term debt |  |  |  |  |  |  | 514 |
Total lease liability |  |  | 258 |  |  |  | 547 |
The maturity analysis of the company’s lease liabilities, weighted average remaining lease term and weighted average discount rates applied at December 31, 2019, are summarized below:
|  | 2019 |
millions of Canadian dollars, unless noted |  |  | Operating leases |  |  |  | Finance leases |
Maturity analysis of lease liabilities |  |  |  |  |  |  |  |
202 0 |  |  | 121 |  |  |  | 71 |
2021 |  |  | 70 |  |  |  | 50 |
2022 |  |  | 30 |  |  |  | 49 |
2023 |  |  | 13 |  |  |  | 48 |
2024 |  |  | 11 |  |  |  | 47 |
2025 and beyond |  |  | 30 |  |  |  | 1,086 |
Total lease payments |  |  | 275 |  |  |  | 1,351 |
Discount to present value |  |  | (17 | ) |  |  | (804 | )
Total lease liability |  |  | 258 |  |  |  | 547 |
Weighted average remaining lease term (years) |  |  | 4 |  |  |  | 40 |
Weighted average discount rate (percent) |  |  | 2.6 |  |  |  | 7.5 |
In addition to the operating lease liabilities in the table immediately above, at December 31, 2019, additional undiscounted commitments for leases not yet commenced totalled $6 million. The table below summarizes the cash paid for amounts included in the measurement of lease liabilities and the right of use assets obtained in exchange for new lease liabilities:
|  | 2019 |
millions of Canadian dollars |  |  | Operating leases |  |  |  | Finance leases |
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |  |  |  |  |
Cash flows from operating activities |  |  | 147 |  |  |  | 45 |
Cash flows from financing activities |  |  |  |  |  |  | 27 |
Non-cash right of use assets recorded for lease liabilities |  |  |  |  |  |  |  |
For January 1 adoption of Leases (Topic 842) |  |  | 298 |  |  |  |  |
In exchange for new lease liabilities during the year |  |  | 104 |  |  |  |  |
Disclosures under the previous lease standard (Topic 840) Net rental cost incurred under both cancelable and non-cancelable operating leases was $221 million in 2018 and $206 million in 2017. At December 31, 2018, minimum undiscounted lease commitments under non-cancelable operating leases for 2019 and beyond were $291 million.

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- Definition The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing. + References Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 + Details
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