Notes to the Consolidated Financial Statements (unaudited)
9. 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.
As at June 30, 2023
As at March 31, 2023
(millions)
$
13
Total future minimum lease payments Less: Future finance charges on leases
$
11
(1)
(1)
12
Present value of lease liability
10
(5)
Less: Current portion of lease liability
(4)
$
7
$
6
As at March 31, 2023
As at June 30, 2023
(millions)
$
10
Lease liabilities, beginning of year
$
10
3
Net additions
4
(1)
Principal repayment of lease liability
(4)
$
12
Lease liabilities, end of year
$
10
The weighted average discount rate applied to computer leases is 4.0 per cent and vehicles is 3.5 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 June 30, 2023, scheduled future minimum lease payments and the present value of the finance lease obligation are as follows for the next five fiscal years: (millions) 2024 2025 2026 2027 2028
Future minimum lease payments Present value of lease liability
$ $
5 5
$ $
4 3
$ $
2 2
$ $
1 1
$ $
1 1
10. LONG-TERM DEBT During the first quarter of the fiscal year, the Corporation issued $125 million in long-term debt in three increments. The first $50 million increment was issued at a discount of $4 million with an interest rate of 3.8 per cent maturing in 2062. The second $25 million increment was issued at no premium or discount with an interest rate of 3.9 per cent maturing in 2033. The third $50 million increment was issued at no premium or discount with an interest rate of 4.2 per cent maturing in 2054.
25
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