Notes to the Consolidated Financial Statements
The weighted average discount rate applied to computer leases is 4.0 per cent and vehicles is 2.8 per cent based on the rates implicit in the agreements. The weighted average discount rate applied to building leases is 4.0 per cent based on the Corporation’s incremental borrowing rate. As at March 31, 2021, scheduled future minimum lease payments and the present value of the finance lease obligation are as follows for the next five fiscal years:
(millions)
2022
2023
2024
2025
2026
Future minimum lease payments Present value of lease liability
$ $
6 $ 5 $
3 $ 3 $
2 $ 2 $
1 $ 1 $
1 1
17. PROVISIONS
(millions)
2021
2020
$
292
Balance, beginning of year
$
200
10
Provisions made Provisions settled
-
(10) (70)
(9)
Change in discount rate Unwinding of discount Balance, end of year
96
5
5
$
227
$
292
The Corporation has estimated the future cost of decommissioning certain natural gas facilities. For the purposes of estimating the fair value of these decommissioning obligations, it is assumed that the costs will be incurred between April 1, 2021 and March 31, 2109. The undiscounted cash flows required to settle the obligations total $552 million (2019 - $498 million). Discount rates between 0.3 per cent and 2.4 per cent were used to calculate the carrying amount of the obligation (2020 - 0.7 per cent and 1.4 per cent). No funds have been set aside by the Corporation to settle these obligations. 18. LONG-TERM DEBT
(millions)
2021
2020
$
1,359
Balance, beginning of year
$
1,180
160
Proceeds
212
(34)
Repayments
(33)
$
1,485
Balance, end of year
$
1,359
p.74
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