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Lease obligations | 12 Months Ended
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Dec. 31, 2020
Disclosure of leases [Abstract] |
Lease obligations | Lease obligations:
| 2020 | 2019
Opening lease obligations | 718,505 |  | 652,642 |
Additions, net of disposals | 108,763 |  | 168,216 |
Interest expense | 47,871 |  | 43,288 |
Lease payments | (154,727) |  | (145,100) |
Effect of movements in exchange rates and other | 1,822 |  | (541) |
Lease obligations at December 31 | 722,234 |  | 718,505 |
Less: current portion | (97,516) |  | (89,820) |
Lease obligations - non current portion | $ | 624,718 |  | $ | 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, 2020:
| Lease payments | Interest component | Lease obligations
2021 | $ | 142,096 | $ | 44,580 | $ | 97,516
2022 | 118,139 | 40,075 | 78,064
2023 | 110,354 | 35,760 | 74,594
2024 | 101,467 | 31,622 | 69,845
2025 | 90,875 | 27,370 | 63,505
Thereafter | 419,456 | 80,746 | 338,710
| $ | 982,387 | $ | 260,153 | $ | 722,234
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 2020 was $91.8 million (2019 - $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 2020 were $0.3 million (2019 - $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 $53.4 million (2019 - $70.6 million).
| Lease liabilities recognized (discounted) | Potential future lease payments not included in lease liabilities (undiscounted)
Ocean going vessels | $ | 472,322 |  | $ | 5,994 |
Terminals and tanks | 194,938 |  | 30,161 |
Other | 54,974 |  | 17,209 |
Total | $ | 722,234 |  | $ | 53,364 |
Leases not yet commenced As at December 31, 2020, the Company has entered into lease agreements for which the leases have not yet commenced. Total exposure to undiscounted future cash outflows not reflected in lease liabilities is $550.8 million (2019 - $6.6 million). The leases not yet commenced as at December 31, 2020 related solely to ocean vessels, with the majority comprised of the addition of 8 new dual-fuel ocean going vessels from 2021 to 2023 with 15-year terms, replacing expiring time charter vessels. The leases not yet commenced as at December 31, 2019 related to storage tank agreements now in place.

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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 2020-01-01 -Section Presentation -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=16&code=ifrs-tx-2020-en-r&doctype=Standard&dita_xref=IFRS16_g47-50_TI -URIDate 2020-01-01 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Name IFRS -Number 16 -IssueDate 2020-01-01 -Section Disclosure -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=16&code=ifrs-tx-2020-en-r&doctype=Standard&dita_xref=IFRS16_g51-60_TI -URIDate 2020-01-01 + Details
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- Definition Disclosure of leases [Abstract] + References No definition available. + Details
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