Notes to the Consolidated Financial Statements
16. LEASE LIABILITY Leases are recognized as ROU 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)
2020
2019
$
14
Total future minimum lease payments Less: Future finance charges on leases
$
9
(1)
(1)
13
Present value of lease liability
8
(6)
Less: Current portion of lease liability
(3)
$
7
$
5
(millions)
2020
$
8 7 3
Lease liabilities, beginning of year
IFRS 16 transition (Note 3a)
Net additions
(5)
Principal repayment of lease liability
$
13
Lease liabilities, end of year
As at March 31, 2020, scheduled future minimum lease payments and the present value of the finance lease obligation are as follows for the next five fiscal years:
(millions)
2021
2022
2023
2024
2025
Future minimum lease payments Present value of lease liability
$ $
7 $ 6 $
4 $ 4 $
2 $ 2 $
1 $ 1 $
1 1
17. PROVISIONS
(millions)
2020
2019
$
200
Balance, beginning of year
$
128
-
Provisions made Provisions settled
65
(9)
(10)
96
Change in discount rate Unwinding of discount Balance, end of year
13
5
4
$
292
$
200
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, 2020 and March 31, 2109. The undiscounted cash flows required to settle the obligations total $498 million (2019 - $469 million). Discount rates between 0.7 per cent and 1.4 per cent were used to calculate the carrying amount of the obligation (2019 - 1.9 per cent and 2.3 per cent). No funds have been set aside by the Corporation to settle these obligations.
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