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Leases | 12 Months Ended
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Dec. 31, 2020
Leases [Abstract] |
Leases | Leases In January 2019, the Companies adopted Accounting Standards Update (ASU) No. 2016-02, “Leases (Topic 842),” including the amendments thereto, using a modified retrospective transition method of adoption that required no prior period adjustments or charges to retained earnings for cumulative impact. The standard supersedes the lease requirements within ASC Topic 840, “Leases.” The Companies lease land, office buildings, equipment and access rights to support electric transmission facilities. The Companies recognized lease right-of-use assets and lease liabilities on their consolidated balance sheets for virtually all of their leases (other than leases that meet the definition of a short-term lease, the expense for which was immaterial). A lease right-of-use asset represents a right to use an identifiable underlying asset and obtain substantially all of the economic benefits from the use of that asset for the lease term. A lease liability represents an obligation to make lease payments arising from the lease. Leases are classified as either operating leases or finance leases. Operating leases are included in operating lease right-of-use asset and operating lease liabilities on the Companies’ consolidated balance sheets. Finance leases are included in other noncurrent assets, other current liabilities and other noncurrent liabilities. The Utilities, as regulated entities, are permitted to continue to recognize expense for operating leases using the timing that conforms to the regulatory rate treatment as rental payments are recovered from our customers and to account the same way for finance leases. For new operating leases, the Companies recognize operating lease right-of-use assets and operating lease liabilities based on the present value of the future minimum lease payments over the lease term at commencement date. As most of the Companies’ leases do not provide an implicit rate, the Companies used their collateralized incremental borrowing rate based on the information available at the commencement date to determine the present value of future payments. Most of the Companies’ leases have remaining lease terms of one year to 40 years and may include options to renew or extend the leases for up to five years at the fair rental value. The Companies' lease terms include options to renew, extend or terminate the lease when it is reasonably certain that the Companies will exercise that option. There were no leases with material variable lease payments or residual value guarantees. The Companies account for lease and non-lease components as a single lease component. Operating lease cost and cash paid for amounts included in the measurement of lease liabilities for the twelve months ended December 31, 2020 and 2019 were as follows:
| Con Edison | CECONY
(Millions of Dollars) | 2020 | 2019 | 2020 | 2019
Operating lease cost | $85 |  | $83 |  | $65 |  | $64 |
Operating lease cash flows | $79 |  | $75 |  | $61 |  | $60 |
As of December 31, 2020, assets recorded as finance leases for Con Edison and CECONY were $3 million and $2 million, respectively, and the accumulated amortization associated with finance leases for Con Edison and CECONY were $3 million and $1 million, respectively. As of December 31, 2019, assets recorded as finance leases were $1 million for Con Edison and an immaterial amount for CECONY, and the accumulated amortization associated with finance leases for Con Edison and CECONY were $5 million and $3 million, respectively. For the twelve months ended December 31, 2020 and 2019, finance lease costs and cash flows for Con Edison and CECONY were immaterial. Right-of-use assets obtained in exchange for lease obligations for Con Edison and CECONY were $23 million and $11 million, respectively, for the twelve months ended December 31, 2020 and $39 million and $4 million, respectively, for the twelve months ended December 31, 2019. Other information related to leases for Con Edison and CECONY at December 31, 2020 and 2019 was as follows:
| Con Edison | CECONY
| 2020 | 2019 | 2020 | 2019
Weighted Average Remaining Lease Term: |  |  |  |
Operating leases | 19.1 years | 19.8 years | 13.0 years | 14.0 years
Finance leases | 7.3 years | 12.2 years | 4.0 years | 2.4 years
Weighted Average Discount Rate: |  |  |  |
Operating leases | 4.3% | 4.3% | 3.6% | 3.6%
Finance leases | 1.8% | 3.5% | 1.3% | 4.1%
Future minimum lease payments under non-cancellable leases at December 31, 2020 were as follows:
(Millions of Dollars) | Con Edison | CECONY
Year Ending December 31, | Operating Leases | Finance Leases | Operating Leases | Finance Leases
2021 | $79 |  | $1 |  | $62 |  | $1 |
2022 | 77 |  | 1 |  | 58 |  | 1 |
2023 | 74 |  | — |  | 57 |  | — |
2024 | 75 |  | — |  | 57 |  | — |
2025 | 75 |  | — |  | 58 |  | — |
All years thereafter | 938 |  | 1 |  | 451 |  | — |
Total future minimum lease payments | $1,318 |  | $3 |  | $743 |  | $2 |
Less: imputed interest | (458) | — |  | (158) | — |
Total | $860 |  | $3 |  | $585 |  | $2 |
Reported as of December 31, 2020 |  |  |  |
Operating lease liabilities (current) | $96 |  | $— |  | $73 |  | $— |
Operating lease liabilities (noncurrent) | 764 |  | — |  | 512 |  | — |
Other current liabilities | — |  | 1 |  | — |  | 1 |
Other noncurrent liabilities | — |  | 2 |  | — |  | 1 |
Total | $860 |  | $3 |  | $585 |  | $2 |
At December 31, 2020, the Companies did not have material obligations under operating or finance leases that had not yet commenced. The Companies are lessors under certain leases whereby the Companies own real estate and distribution poles and lease portions of them to others. Revenue under such leases was immaterial for Con Edison and CECONY for the twelve months ended December 31, 2020 and 2019.
Leases | Leases In January 2019, the Companies adopted Accounting Standards Update (ASU) No. 2016-02, “Leases (Topic 842),” including the amendments thereto, using a modified retrospective transition method of adoption that required no prior period adjustments or charges to retained earnings for cumulative impact. The standard supersedes the lease requirements within ASC Topic 840, “Leases.” The Companies lease land, office buildings, equipment and access rights to support electric transmission facilities. The Companies recognized lease right-of-use assets and lease liabilities on their consolidated balance sheets for virtually all of their leases (other than leases that meet the definition of a short-term lease, the expense for which was immaterial). A lease right-of-use asset represents a right to use an identifiable underlying asset and obtain substantially all of the economic benefits from the use of that asset for the lease term. A lease liability represents an obligation to make lease payments arising from the lease. Leases are classified as either operating leases or finance leases. Operating leases are included in operating lease right-of-use asset and operating lease liabilities on the Companies’ consolidated balance sheets. Finance leases are included in other noncurrent assets, other current liabilities and other noncurrent liabilities. The Utilities, as regulated entities, are permitted to continue to recognize expense for operating leases using the timing that conforms to the regulatory rate treatment as rental payments are recovered from our customers and to account the same way for finance leases. For new operating leases, the Companies recognize operating lease right-of-use assets and operating lease liabilities based on the present value of the future minimum lease payments over the lease term at commencement date. As most of the Companies’ leases do not provide an implicit rate, the Companies used their collateralized incremental borrowing rate based on the information available at the commencement date to determine the present value of future payments. Most of the Companies’ leases have remaining lease terms of one year to 40 years and may include options to renew or extend the leases for up to five years at the fair rental value. The Companies' lease terms include options to renew, extend or terminate the lease when it is reasonably certain that the Companies will exercise that option. There were no leases with material variable lease payments or residual value guarantees. The Companies account for lease and non-lease components as a single lease component. Operating lease cost and cash paid for amounts included in the measurement of lease liabilities for the twelve months ended December 31, 2020 and 2019 were as follows:
| Con Edison | CECONY
(Millions of Dollars) | 2020 | 2019 | 2020 | 2019
Operating lease cost | $85 |  | $83 |  | $65 |  | $64 |
Operating lease cash flows | $79 |  | $75 |  | $61 |  | $60 |
As of December 31, 2020, assets recorded as finance leases for Con Edison and CECONY were $3 million and $2 million, respectively, and the accumulated amortization associated with finance leases for Con Edison and CECONY were $3 million and $1 million, respectively. As of December 31, 2019, assets recorded as finance leases were $1 million for Con Edison and an immaterial amount for CECONY, and the accumulated amortization associated with finance leases for Con Edison and CECONY were $5 million and $3 million, respectively. For the twelve months ended December 31, 2020 and 2019, finance lease costs and cash flows for Con Edison and CECONY were immaterial. Right-of-use assets obtained in exchange for lease obligations for Con Edison and CECONY were $23 million and $11 million, respectively, for the twelve months ended December 31, 2020 and $39 million and $4 million, respectively, for the twelve months ended December 31, 2019. Other information related to leases for Con Edison and CECONY at December 31, 2020 and 2019 was as follows:
| Con Edison | CECONY
| 2020 | 2019 | 2020 | 2019
Weighted Average Remaining Lease Term: |  |  |  |
Operating leases | 19.1 years | 19.8 years | 13.0 years | 14.0 years
Finance leases | 7.3 years | 12.2 years | 4.0 years | 2.4 years
Weighted Average Discount Rate: |  |  |  |
Operating leases | 4.3% | 4.3% | 3.6% | 3.6%
Finance leases | 1.8% | 3.5% | 1.3% | 4.1%
Future minimum lease payments under non-cancellable leases at December 31, 2020 were as follows:
(Millions of Dollars) | Con Edison | CECONY
Year Ending December 31, | Operating Leases | Finance Leases | Operating Leases | Finance Leases
2021 | $79 |  | $1 |  | $62 |  | $1 |
2022 | 77 |  | 1 |  | 58 |  | 1 |
2023 | 74 |  | — |  | 57 |  | — |
2024 | 75 |  | — |  | 57 |  | — |
2025 | 75 |  | — |  | 58 |  | — |
All years thereafter | 938 |  | 1 |  | 451 |  | — |
Total future minimum lease payments | $1,318 |  | $3 |  | $743 |  | $2 |
Less: imputed interest | (458) | — |  | (158) | — |
Total | $860 |  | $3 |  | $585 |  | $2 |
Reported as of December 31, 2020 |  |  |  |
Operating lease liabilities (current) | $96 |  | $— |  | $73 |  | $— |
Operating lease liabilities (noncurrent) | 764 |  | — |  | 512 |  | — |
Other current liabilities | — |  | 1 |  | — |  | 1 |
Other noncurrent liabilities | — |  | 2 |  | — |  | 1 |
Total | $860 |  | $3 |  | $585 |  | $2 |
At December 31, 2020, the Companies did not have material obligations under operating or finance leases that had not yet commenced. The Companies are lessors under certain leases whereby the Companies own real estate and distribution poles and lease portions of them to others. Revenue under such leases was immaterial for Con Edison and CECONY for the twelve months ended December 31, 2020 and 2019.

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance 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
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