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Lease obligations | 12 Months Ended
--- | ---
Dec. 31, 2019
Disclosure of leases [Abstract] |
Lease obligations | Lease obligations:
Finance lease obligations at December 31, 2018 | $ | 199,760 |
Adjustment on initial adoption of IFRS 16 (note 2 (t)) | 452,882 |
Lease obligations - IFRS 16 adjusted | 652,642 |
Additions, net of disposals | 168,216 |
Interest expense | 43,288 |
Lease payments | (145,100 | )
Effect of movements in exchange rates and other | (541 | )
Lease obligations at December 31, 2019 | 718,505 |
Less: current portion | (89,820 | )
Lease obligations - non current portion | $ | 628,685 |
The Company incurs lease payments related to ocean vessels, terminal facilities, rail cars, vehicles and equipment, and office facilities. Leases are entered into and exited in coordination with specific business requirements which includes the assessment of the appropriate durations for the related leased assets. The following table presents the contractual undiscounted cash flows for lease obligations as at December 31, 2019:
| Lease payments |  | Interest component |  | Lease obligations |
2020 | $ | 134,175 |  | $ | 44,355 |  | $ | 89,820 |
2021 | 111,305 |  | 41,136 |  | 70,169 |
2022 | 100,715 |  | 37,453 |  | 63,262 |
2023 | 95,606 |  | 33,677 |  | 61,929 |
2024 | 88,445 |  | 30,011 |  | 58,434 |
Thereafter | 477,850 |  | 102,959 |  | 374,891 |
| $ | 1,008,096 |  | $ | 289,591 |  | $ | 718,505 |
Variable lease payments and short-term and low value leases Certain leases contain non-lease components, excluded from the right-of-use asset and lease liability, related to operating charges for ocean vessels and terminal facilities. The total expense recognized in cost of sales relating to operating charges for 2019 was $83.7 million. Short-term leases are leases with a lease term of twelve months or less while low-value leases comprised of information technology and miscellaneous equipment. Such items recognized within cost of sales in 2019 were $0.5 million. Extension options Some leases contain extension options exercisable by the Company. Where practicable, the Company seeks to include extension options in new leases to provide operational flexibility. The extension options held are exercisable only by the Company and not by the lessors. The Company assesses, at lease commencement, whether it is reasonably certain to exercise the extension options. The Company reassesses whether it is reasonably certain to exercise the options if there is a significant event or significant change in circumstances within its control. Total potential future lease payments not included in the lease liabilities should the Company exercise these extension options totals $70.6 million.
| Lease liabilities recognized (discounted) |  | Potential future lease payments not included in lease liabilities (undiscounted) |
Ocean going vessels | $ | 462,843 |  | $ | 22,464 |
Terminal and tanks | 194,665 |  | 31,210 |
Other | 60,997 |  | 16,914 |
Total | $ | 718,505 |  | $ | 70,588 |
Leases not yet commenced As at December 31, 2019, the Company has entered into lease agreements for which the leases have not yet commenced. Total exposure to future cash outflows not reflected in lease liabilities is $6.6 million.

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- Definition The entire disclosure for leases. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IFRS -Number 16 -IssueDate 2019-01-01 -Section Presentation -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=16&code=ifrs-tx-2019-en-r&doctype=Standard&dita_xref=IFRS16_g47-50_TI -URIDate 2019-03-27 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Name IFRS -Number 16 -IssueDate 2019-01-01 -Section Disclosure -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=16&code=ifrs-tx-2019-en-r&doctype=Standard&dita_xref=IFRS16_g51-60_TI -URIDate 2019-03-27 + Details
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- Definition Disclosure of leases [Abstract] + References No definition available. + Details
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