Notes to the Consolidated Financial Statements
17. Lease Liability Leases are recognized as right-of-use assets and corresponding liabilities at the date at which a leased asset is available for use. Payments for short-term leases and leases of low-value assets are expensed on a straight-line basis and excluded from the lease liability. (millions) 2024 2023 Total future minimum lease payments $ 14 $ 11 Less: Future finance charges on leases (1) (1) Present value of lease liability 13 10 Less: Current portion of lease liability (5) (4) $ 8 $ 6
(millions)
2024
2023
$
10 $
Lease liabilities, beginning of year
10
8
Net additions
4
(5)
Principal repayment of lease liability
(4)
$
13 $
Lease liabilities, end of year
10
The weighted average discount rate applied to computer leases and vehicle leases is 4.0 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, 2024, scheduled future minimum lease payments and the present value of the finance lease obligation are as follows for the next five fiscal years: (millions) 2025 2026 2027 2028 2029 Future minimum lease payments $ 6 $ 4 $ 2 $ 1 $ 1 Present value of lease liability $ 5 $ 4 $ 2 $ 1 $ 1
18. Provisions (millions)
2024
2023
$
158 $
Balance, beginning of year
178
(13)
Provisions settled
(11) (14)
7 6
Change in assumptions Unwinding of discount Balance, end of year
5
158
158
(8)
Less: Current portion of provisions
-
$
150 $
158
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, 2024 and March 31, 2114. The undiscounted cash flows required to settle the obligations total $659 million (2023 - $639 million). Discount rates between nil per cent and 4.8 per cent were used to calculate the carrying amount of the obligation (2023 - nil per cent and 4.5 per cent). No funds have been set aside by the Corporation to settle these obligations.
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