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Leases, Lessee | 12 Months Ended
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Dec. 31, 2020
19. Leases |
Leases, Lessee | 19. LEASES Lessee The Company has operating leases for buildings, land, telecommunication services, and rail cars. Emera’s leases have remaining lease terms of 1 year to 65 years, some of which include options to extend the leases for up to 65 years. These options are inclu ded as part of the lease term when it is considered reasonably certain that they will be exercised.
As at |  |  | December 31 |  | December 31
millions of Canadian dollars | Classification |  | 2020 |  | 2019
Right-of-use asset | Other long-term assets | $ | 61 | $ | 64
Lease liabilities |  |  |  |  |
Current | Other current liabilities |  | 3 |  | 5
Long-term | Other long-term liabilities |  | 60 |  | 61
Total lease liabilities |  | $ | 63 | $ | 66
The Company has recorded lease expense of $1 60 million for the year ended December 31, 2020 (2019 – $172 million), of which $149 million (2019 – $156 million) relates to variable costs for power generation facility finance leases, recorded in “Regulated fuel for generation and purchased power” in the C onsolidated S tatements of I ncome.
Future minimum lease payments under non-cancellable operating leases for each of the next five years and in aggregate thereafter are as follows:
millions of Canadian dollars | 2021 | 2022 | 2023 | 2024 | 2025 |  | Thereafter |  | Total
Minimum lease payments | $ | 6 | $ | 6 | $ | 6 | $ | 5 | $ | 4 | $ | 112 | $ | 139
Less imputed interest |  | - |  | - |  | - |  | - |  | - |  | - |  | (76)
Total | $ | 6 | $ | 6 | $ | 6 | $ | 5 | $ | 4 | $ | 112 | $ | 63
Additional information related to Emera's leases is as follows:
|  | Year ended December
For the |  | 2020 |  | 2019
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |
Operating cash flows for operating leases (millions of Canadian dollars) | $ | 7 | $ | 7
Right-of-use assets obtained in exchange for lease obligations: |  |  |  |
Operating leases (millions of Canadian dollars) | $ | 7 | $ | 16
Weighted average remaining lease term (years) |  | 43 |  | 39
Weighted average discount rate- operating leases |  | 3.96% |  | 4.07%
L essor The Company’s ne t investment in direct finance and sales-type lease s primarily relates to Brunswick Pipeline, compressed natural gas (“CNG”) stations and heat pumps. Direct finance and sales-type lease unearned income is recognized in income over the life of the lease using a constant rate of interest equal to the internal rate of return on the lease and is recorded as “Operating revenues – regulated gas” and “Other income (expense), net” on the Consoli dated Statements of Income. The Company manages its risk associated with the residual value of the Brunswick Pipeline lease through proper routine maintenance of the asset. Customers have the option to purchase CNG station assets at any time after 2021 by paying a make-whole payment at the date of the purchase based on a targeted internal rate of return or may take possession of the CNG station asset at the end of the lease term for no cost. Customers have the option to purchase heat pumps at the end of the lease term for a nominal fee. Ne t investment in direct finance and sales-type lease s consist of the following:
As at | December 31 | December 31
millions of Canadian dollars |  | 2020 |  | 2019
Total minimum lease payment to be received |  | 1,018 | $ | 1,066
Less: amounts representing estimated executory costs |  | (179) |  | (189)
Minimum lease payments receivable |  | 839 | $ | 877
Estimated residual value of leased property (unguaranteed) |  | 183 |  | 183
Less: unearned finance lease income |  | (487) |  | (532)
Net investment in direct finance and sales-type leases |  | 535 | $ | 528
Principal due within one year (included in "Receivables and other current assets") |  | 18 |  | 17
Net investment in sales-type leases - long-term (included in "Other long-term assets") |  | 42 |  | 38
Net Investment in direct finance leases - long-term |  | 475 | $ | 473
As at December 31, 2020, future minimum lease payments to be received for each of the next five years and in aggregate thereafter are as follows:
millions of Canadian dollars | 2021 | 2022 | 2023 | 2024 | 2025 | Thereafter | Total
Minimum lease payments to be received | $ | 78 | $ | 77 | $ | 76 | $ | 77 | $ | 79 | $ | 631 | $ | 1,018
Less: executory costs |  |  |  |  |  |  |  |  |  |  |  |  |  | (179)
Minimum lease payments receivable | $ | 78 | $ | 77 | $ | 76 | $ | 77 | $ | 79 | $ | 631 | $ | 839

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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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