Company: IMO
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0000049938-25-000015
Chunk: 126

Company: IMPERIAL OIL LTD
Filing Date: 2025-02-19
Form: 10-K
Item: Item 16
Chunk 126
---
 any of its outstanding $500 million of available credit facilities.  

At December 31, 2024, the company had no short-term borrowings outstanding. At December 31, 2023, the weighted-average interest rate on short-term borrowings outstanding was 4.9 percent. 

101

Note 13. Leases

The company generally purchases the property, plant and equipment used in operations, but there are situations where assets are leased, primarily storage tanks, rail cars, marine vessels and transportation facilities. Right of use assets and lease liabilities are established on the balance sheet for leases with an expected term greater than one year, by discounting the amounts fixed in the lease agreement for the duration of the lease which is reasonably certain, considering the probability of exercising any early termination and extension options. The portion of the fixed payment related to service costs for tankers and finance leases is excluded from the calculation of right of use assets and lease liabilities. Usually, assets are leased only for a portion of their useful lives and are accounted for as operating leases. In limited situations, assets are leased for nearly all of their useful lives and are accounted for as finance leases. In general, leases are capitalized using the company’s incremental borrowing rate. Variable payments under these lease agreements are not significant. Residual value guarantees, restrictions, or covenants related to leases, and transactions with related parties are also not significant. The company’s activities as a lessor are not material. The table below summarizes the total lease cost incurred:  202420232022millions of Canadian dollarsOperating leasesFinance leasesOperating leasesFinance leasesOperating leasesFinance leasesOperating lease cost111 114 119 Short-term and other (net of sublease rental income)50 30 40  Amortization of right of use assets16 19 19 Interest on lease liabilities28 29 30 Total lease cost161 44 144 48 159 49 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:  20242023 millions of Canadian dollarsOperating leasesFinance leasesOperating leasesFinance leasesRight of use assets    Included in Other assets, including intangibles - net240 196 Included in Property, plant and equipment, less579 599 accumulated depreciation and depletion    Total right of use assets240 579 196