Leases (Tables)

12 Months Ended

Dec. 31, 2025

The table below summarizes the total lease cost incurred:


	2025		2024		2023
millions of Canadian dollars	Operating leases	Finance leases	Operating leases	Finance leases	Operating leases	Finance leases
Operating lease cost	105		111		114
Short-term and other (net of sublease rental income)	108		50		30

Amortization of right of use assets		16		16		19
Interest on lease liabilities		27		28		29
Total lease cost	213	43	161	44	144	48

Schedule Of Operating Leases and Finance Leases Recorded In Balance Sheet

The following table summarizes the amounts related to operating leases and finance leases recorded on the Consolidated balance sheet, weighted-average remaining lease term and weighted-average discount rates applied at December 31:


	2025		2024
millions of Canadian dollars	Operating leases	Finance leases	Operating leases	Finance leases
Right of use assets
Included in Other assets, including intangibles - net	285		240
Included in Property, plant and equipment, less		582		579
accumulated depreciation and depletion
Total right of use assets	285	582	240	579

Lease liability due within one year
Included in Accounts payable and accrued liabilities	87	—	100	—
Included in Notes and loans payable		19		18
Long-term lease liability
Included in Other long-term obligations	149	—	144	—
Included in Long-term debt		531		545
Total lease liability	236	550	244	563

Weighted-average remaining lease term (years)	5	35	5	35
Weighted-average discount rate (percent)	3.2	5.8	4.1	4.8

Finance Lease, Liability, to be Paid, Maturity

The maturity analysis of the company’s lease liabilities as at December 31 are summarized below:


	2025
millions of Canadian dollars	Operating leases	Finance leases
Maturity analysis of lease liabilities
2026	93	49
2027	44	48
2028	39	47
2029	31	45
2030	16	44
2031 and beyond	29	862
Total lease payments	252	1,095

Discount to present value	(16)	(545)
Total lease liability	236	550

Lessee, Operating Lease, Liability, to be Paid, Maturity

The maturity analysis of the company’s lease liabilities as at December 31 are summarized below:


	2025
millions of Canadian dollars	Operating leases	Finance leases
Maturity analysis of lease liabilities
2026	93	49
2027	44	48
2028	39	47
2029	31	45
2030	16	44
2031 and beyond	29	862
Total lease payments	252	1,095

Discount to present value	(16)	(545)
Total lease liability	236	550

Schedule Of Measurement Of Lease Liabilities and Right Of Use Assets

The table below summarizes the cash paid for amounts included in the measurement of lease liabilities and the right of use assets obtained in exchange for new lease liabilities:


	2025		2024		2023
millions of Canadian dollars	Operating leases	Finance leases	Operating leases	Finance leases	Operating leases	Finance leases
Cash paid for amounts included in the measurement of lease liabilities
Cash flows from operating activities	121	—	118	—	56	—
Cash flows from financing activities		18		22		22

Non-cash right of use assets recorded for lease liabilities

In exchange for lease liabilities during the year	107	17	152	—	61	—