Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 18, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | CP | |
Entity Registrant Name | CANADIAN PACIFIC RAILWAY LTD/CN | |
Entity Central Index Key | 16,875 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Common Stock, Shares Outstanding | 147,771,618 |
INTERIM CONSOLIDATED STATEMENTS
INTERIM CONSOLIDATED STATEMENTS OF INCOME (unaudited) - CAD shares in Millions, CAD in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenues | ||||
Freight | CAD 1,406 | CAD 1,610 | CAD 2,954 | CAD 3,240 |
Non-freight | 44 | 41 | 87 | 76 |
Total revenues | 1,450 | 1,651 | 3,041 | 3,316 |
Operating expenses | ||||
Compensation and benefits | 284 | 308 | 613 | 686 |
Fuel | 131 | 185 | 256 | 380 |
Materials | 38 | 45 | 94 | 97 |
Equipment rents | 44 | 46 | 89 | 88 |
Depreciation and amortization | 161 | 145 | 323 | 291 |
Purchased services and other | 241 | 276 | 462 | 516 |
Total operating expenses | 899 | 1,005 | 1,837 | 2,058 |
Operating income | 551 | 646 | 1,204 | 1,258 |
Less: | ||||
Other income and charges | (9) | (5) | (190) | 68 |
Net interest expense | 115 | 84 | 239 | 169 |
Income before income tax expense | 445 | 567 | 1,155 | 1,021 |
Income tax expense | 117 | 177 | 287 | 311 |
Net income | CAD 328 | CAD 390 | CAD 868 | CAD 710 |
Earnings per share | ||||
Basic earnings per share (in CAD per share) | CAD 2.16 | CAD 2.38 | CAD 5.70 | CAD 4.32 |
Diluted earnings per share (in CAD per share) | CAD 2.15 | CAD 2.36 | CAD 5.67 | CAD 4.28 |
Weighted-average number of shares (millions) | ||||
Basic (shares) | 151.7 | 163.7 | 152.3 | 164.3 |
Diluted (shares) | 152.6 | 165 | 153.2 | 165.7 |
Dividends declared per share (in CAD per share) | CAD 0.5000 | CAD 0.3500 | CAD 0.8500 | CAD 0.7000 |
INTERIM CONSOLIDATED STATEMENT3
INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - CAD CAD in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | CAD 328 | CAD 390 | CAD 868 | CAD 710 |
Net gain (loss) in foreign currency translation adjustments, net of hedging activities | 3 | 7 | 40 | (30) |
Change in derivatives designated as cash flow hedges | (29) | 36 | (76) | (33) |
Change in pension and post-retirement defined benefit plans | 43 | 66 | 90 | 138 |
Other comprehensive income before income taxes | 17 | 109 | 54 | 75 |
Income tax (expense) recovery on above items | (7) | (35) | (48) | 11 |
Other comprehensive (loss) income | 10 | 74 | 6 | 86 |
Comprehensive income | CAD 338 | CAD 464 | CAD 874 | CAD 796 |
INTERIM CONSOLIDATED BALANCE SH
INTERIM CONSOLIDATED BALANCE SHEETS AS AT (unaudited) - CAD CAD in Millions | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Current assets | ||||||
Cash and cash equivalents | CAD 92 | CAD 571 | CAD 650 | CAD 185 | CAD 184 | CAD 226 |
Accounts receivable, net | 577 | 645 | ||||
Materials and supplies | 195 | 188 | ||||
Other current assets | 59 | 54 | ||||
Total current assets | 923 | 1,537 | ||||
Investments | 155 | 152 | ||||
Properties | 16,160 | 16,273 | ||||
Goodwill and intangible assets | 195 | 211 | ||||
Pension asset | 1,565 | 1,401 | ||||
Other assets | 70 | 63 | ||||
Total assets | 19,068 | 19,637 | ||||
Current liabilities | ||||||
Accounts payable and accrued liabilities | 1,247 | 1,417 | ||||
Long-term debt maturing within one year | 198 | 30 | ||||
Total current liabilities | 1,445 | 1,447 | ||||
Pension and other benefit liabilities | 751 | 758 | ||||
Other long-term liabilities | 286 | 318 | ||||
Long-term debt | 8,383 | 8,927 | ||||
Deferred income taxes | 3,512 | 3,391 | ||||
Total liabilities | 14,377 | 14,841 | ||||
Shareholders’ equity | ||||||
Share capital | 2,000 | 2,058 | ||||
Additional paid-in capital | 49 | 43 | ||||
Accumulated other comprehensive loss | (1,471) | (1,477) | ||||
Retained earnings | 4,113 | 4,172 | ||||
Total Shareholders' equity | 4,691 | 4,796 | CAD 5,251 | CAD 5,610 | ||
Total liabilities and shareholders’ equity | CAD 19,068 | CAD 19,637 |
INTERIM CONSOLIDATED STATEMENT5
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - CAD CAD in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Operating activities | ||||
Net income | CAD 328 | CAD 390 | CAD 868 | CAD 710 |
Reconciliation of net income to cash provided by operating activities: | ||||
Depreciation and amortization | 161 | 145 | 323 | 291 |
Deferred income taxes | 90 | 74 | 183 | 106 |
Pension funding in excess of expense | (37) | (20) | (79) | (30) |
Foreign exchange (gain) loss on long-term debt | (18) | (10) | (199) | 54 |
Other operating activities, net | (47) | (28) | (113) | (69) |
Change in non-cash working capital balances related to operations | 35 | 34 | (253) | 78 |
Cash provided by operating activities | 512 | 585 | 730 | 1,140 |
Investing activities | ||||
Additions to properties | (330) | (355) | (608) | (618) |
Proceeds from sale of properties and other assets | 11 | 8 | 71 | 60 |
Other | (2) | (7) | (2) | 13 |
Cash used in investing activities | (321) | (354) | (539) | (545) |
Financing activities | ||||
Dividends paid | (53) | (57) | (107) | (115) |
Issuance of CP Common Shares | 4 | 11 | 9 | 27 |
Purchase of CP Common Shares | (788) | (543) | (788) | (1,072) |
Issuance of long-term debt, excluding commercial paper | 0 | 0 | 0 | 810 |
Repayment of long-term debt, excluding commercial paper | (7) | (9) | (18) | (67) |
Net issuance (repayment) of commercial paper (Note 8) | 176 | 369 | 176 | (224) |
Other | (1) | 0 | (3) | 0 |
Cash used in financing activities | (669) | (229) | (731) | (641) |
Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents | (1) | (1) | (18) | 5 |
Cash position | ||||
(Decrease) increase in cash and cash equivalents | (479) | 1 | (558) | (41) |
Cash and cash equivalents at beginning of period | 571 | 184 | 650 | 226 |
Cash and cash equivalents at end of period | 92 | 185 | 92 | 185 |
Supplemental disclosures of cash flow information: | ||||
Income taxes paid | 65 | 62 | 257 | 59 |
Interest paid | CAD 92 | CAD 94 | CAD 247 | CAD 161 |
INTERIM CONSOLIDATED STATEMENT6
INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited) - CAD shares in Millions, CAD in Millions | Total | Common shares/Share capital [Member] | Additional paid-in capital [Member] | Accumulated other comprehensive loss [Member] | Retained earnings [Member] |
Beginning balance (shares) at Dec. 31, 2014 | 166.1 | ||||
Beginning balance at Dec. 31, 2014 | CAD 5,610 | CAD 2,185 | CAD 36 | CAD (2,219) | CAD 5,608 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 710 | 710 | |||
Other comprehensive (loss) income | 86 | 86 | |||
Dividends declared | (115) | (115) | |||
Effect of stock-based compensation expense | 10 | 10 | |||
CP Common Shares repurchased (shares) | (5.2) | ||||
CP Common Shares repurchased | (1,080) | CAD (70) | (1,010) | ||
Shares issued under stock option plan (shares) | 0.4 | ||||
Shares issued under stock option plan | CAD 30 | CAD 36 | (6) | ||
Ending balance (shares) at Jun. 30, 2015 | 161.3 | 161.3 | |||
Ending balance at Jun. 30, 2015 | CAD 5,251 | CAD 2,151 | 40 | (2,133) | 5,193 |
Beginning balance at Mar. 31, 2015 | (2,207) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 390 | ||||
Other comprehensive (loss) income | CAD 74 | ||||
Ending balance (shares) at Jun. 30, 2015 | 161.3 | 161.3 | |||
Ending balance at Jun. 30, 2015 | CAD 5,251 | CAD 2,151 | 40 | (2,133) | 5,193 |
Beginning balance (shares) at Dec. 31, 2015 | 153 | ||||
Beginning balance at Dec. 31, 2015 | 4,796 | CAD 2,058 | 43 | (1,477) | 4,172 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 868 | 868 | |||
Other comprehensive (loss) income | 6 | 6 | |||
Dividends declared | (130) | (130) | |||
Effect of stock-based compensation expense | 8 | 8 | |||
CP Common Shares repurchased (shares) | (4.7) | ||||
CP Common Shares repurchased | (867) | CAD (70) | (797) | ||
Shares issued under stock option plan (shares) | 0.1 | ||||
Shares issued under stock option plan | CAD 10 | CAD 12 | (2) | ||
Ending balance (shares) at Jun. 30, 2016 | 148.4 | 148.4 | |||
Ending balance at Jun. 30, 2016 | CAD 4,691 | CAD 2,000 | 49 | (1,471) | 4,113 |
Beginning balance at Mar. 31, 2016 | (1,481) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 328 | ||||
Other comprehensive (loss) income | CAD 10 | ||||
Ending balance (shares) at Jun. 30, 2016 | 148.4 | 148.4 | |||
Ending balance at Jun. 30, 2016 | CAD 4,691 | CAD 2,000 | CAD 49 | CAD (1,471) | CAD 4,113 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of presentation These unaudited interim consolidated financial statements of Canadian Pacific Railway Limited (“CP”, or “the Company”), expressed in Canadian dollars, reflect management’s estimates and assumptions that are necessary for their fair presentation in conformity with generally accepted accounting principles in the United States of America (“GAAP”). They do not include all disclosures required under GAAP for annual financial statements and should be read in conjunction with the 2015 annual consolidated financial statements and notes included in CP's 2015 Annual Report on Form 10-K. The accounting policies used are consistent with the accounting policies used in preparing the 2015 annual consolidated financial statements, except for the newly adopted accounting policy discussed in Note 2. CP's operations can be affected by seasonal fluctuations such as changes in customer demand and weather-related issues. This seasonality could impact quarter-over-quarter comparisons. In management’s opinion, the unaudited interim consolidated financial statements include all adjustments (consisting of normal and recurring adjustments) necessary to present fairly such information. Interim results are not necessarily indicative of the results expected for the fiscal year. |
Basis of Accounting, Policy [Policy Text Block] | These unaudited interim consolidated financial statements of Canadian Pacific Railway Limited (“CP”, or “the Company”), expressed in Canadian dollars, reflect management’s estimates and assumptions that are necessary for their fair presentation in conformity with generally accepted accounting principles in the United States of America (“GAAP”). They do not include all disclosures required under GAAP for annual financial statements and should be read in conjunction with the 2015 annual consolidated financial statements and notes included in CP's 2015 Annual Report on Form 10-K. The accounting policies used are consistent with the accounting policies used in preparing the 2015 annual consolidated financial statements, except for the newly adopted accounting policy discussed in Note 2. CP's operations can be affected by seasonal fluctuations such as changes in customer demand and weather-related issues. This seasonality could impact quarter-over-quarter comparisons. In management’s opinion, the unaudited interim consolidated financial statements include all adjustments (consisting of normal and recurring adjustments) necessary to present fairly such information. Interim results are not necessarily indicative of the results expected for the fiscal year. |
Accounting Changes
Accounting Changes | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Changes | Accounting changes Implemented in 2016 Amendments to the Consolidation Analysis In February 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) 2015-02, Amendments to the Consolidation Analysis under FASB Accounting Standards Codification ("ASC") Topic 810 Consolidation. The amendments required reporting entities to evaluate whether they should consolidate certain legal entities under the revised consolidation model. Specifically, the amendments modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (“VIEs”) or voting interest entities, eliminated the presumption that a general partner should consolidate a limited partnership and affected the consolidation analysis of reporting entities involved with VIEs, particularly those that have fee arrangements and related party relationships. This ASU was effective for public entities for fiscal years, and interim periods within those years, beginning on or after December 15, 2015. Entities had the option of using either a full retrospective or a modified retrospective approach to adopt this ASU. The Company evaluated all arrangements that might give rise to a VIE and all existing VIEs; no changes to disclosure or financial statement presentation were required as a result of this evaluation. Future changes Leases In February 2016, the FASB issued ASU 2016-02, Leases. The new FASB ASC Topic 842 Leases supersedes the lease recognition and measurement requirements in Topic 840 Leases. This new standard requires recognition of right-of-use assets and lease liabilities by lessees for those leases classified as finance and operating leases with a maximum term exceeding 12 months. This ASU will be effective for public entities for fiscal years, and interim periods within those years, beginning on or after December 15, 2018. Entities are required to use a modified retrospective approach to adopt this ASU. The Company is currently evaluating the impact adoption of this ASU will have on the consolidated financial statements. Revenue from Contracts with Customers In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations under FASB ASC Topic 606. The amendments clarify the principal versus agent guidance in determining whether to recognize revenue on a gross or net basis. The amendments are effective for public entities for annual reporting periods beginning on or after December 15, 2017, including interim periods within that reporting period. Entities have the option of using either a full retrospective or a modified retrospective approach to adopt this ASU. The Company is currently evaluating the impact adoption of this ASU will have on the consolidated financial statements. Compensation - Stock Compensation In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation, under ASC Topic 718. The amendments clarify the guidance relating to treatment of excess tax benefits and deficiencies, acceptable forfeiture rate policies, and treatment of cash paid by an employer when directly withholding shares for tax-withholding purposes and the requirement to treat such cash flows as a financing activity. This ASU will be effective for public entities for fiscal years, and interim periods within those years, beginning on or after December 15, 2016. Early adoption is permitted. The Company is currently evaluating the impact adoption of this ASU will have on the consolidated financial statements. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss ("AOCL") by Component | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss (AOCL) by Component | Changes in accumulated other comprehensive loss ("AOCL") by component For the three months ended June 30 (in millions of Canadian dollars, net of tax) Foreign currency Derivatives and other Pension and post-retirement defined benefit plans Total Opening balance, 2016 $ 125 $ (136 ) $ (1,470 ) $ (1,481 ) Other comprehensive income (loss) before reclassifications (1 ) (23 ) (2 ) (26 ) Amounts reclassified from accumulated other comprehensive loss — 2 34 36 Net current-period other comprehensive (loss) income (1 ) (21 ) 32 10 Closing balance, 2016 $ 124 $ (157 ) $ (1,438 ) $ (1,471 ) Opening balance, 2015 $ 125 $ (103 ) $ (2,229 ) $ (2,207 ) Other comprehensive income (loss) before reclassifications — 26 — 26 Amounts reclassified from accumulated other comprehensive loss — — 48 48 Net current-period other comprehensive income — 26 48 74 Closing balance, 2015 $ 125 $ (77 ) $ (2,181 ) $ (2,133 ) For the six months ended June 30 (in millions of Canadian dollars, net of tax) Foreign currency Derivatives and other Pension and post-retirement defined benefit plans Total Opening balance, 2016 $ 129 $ (102 ) $ (1,504 ) $ (1,477 ) Other comprehensive income (loss) before reclassifications (5 ) (59 ) (2 ) (66 ) Amounts reclassified from accumulated other comprehensive loss — 4 68 72 Net current-period other comprehensive (loss) income (5 ) (55 ) 66 6 Closing balance, 2016 $ 124 $ (157 ) $ (1,438 ) $ (1,471 ) Opening balance, 2015 $ 115 $ (52 ) $ (2,282 ) $ (2,219 ) Other comprehensive income (loss) before reclassifications 10 (26 ) 5 (11 ) Amounts reclassified from accumulated other comprehensive loss — 1 96 97 Net current-period other comprehensive income (loss) 10 (25 ) 101 86 Closing balance, 2015 $ 125 $ (77 ) $ (2,181 ) $ (2,133 ) Amounts in Pension and post-retirement defined benefit plans reclassified from AOCL For the three months ended June 30 For the six months ended June 30 (in millions of Canadian dollars) 2016 2015 2016 2015 Amortization of prior service costs (a) $ (1 ) $ (2 ) $ (3 ) $ (3 ) Recognition of net actuarial loss (a) 48 67 97 134 Total before income tax 47 65 94 131 Income tax recovery (13 ) (17 ) (26 ) (35 ) Net of income tax $ 34 $ 48 $ 68 $ 96 (a) Impacts Compensation and benefits on the Interim Consolidated Statements of Income. |
Gain on Sale of Properties
Gain on Sale of Properties | 6 Months Ended |
Jun. 30, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Gain on Sale of Properties | Gain on sale of properties Gain on sale of Arbutus Corridor In March 2016, the Company announced the sale of CP’s Arbutus Corridor (the “Arbutus Corridor”) to the City of Vancouver for gross proceeds of $55 million . The agreement allows the Company to share in future proceeds on the eventual development and/or sale of certain parcels of the Arbutus Corridor. The Company recorded a gain on sale of $50 million before tax ( $43 million after tax) from the transaction during the first quarter of 2016. Gain on settlement of legal proceedings related to the purchase and sale of a building In 2013, CP provided an interest free loan pursuant to a court order to a corporation owned by a court appointed trustee (“the judicial trustee”) to facilitate the acquisition of a building. The building was held in trust during the legal proceedings with regard to CP’s entitlement to an exercised purchase option of the building. As at December 31, 2014, the loan of $20 million and the purchase option with a carrying value of $8 million , were recorded as “Other assets” in the Company’s Consolidated Balance Sheets. In the first quarter of 2015, CP reached a settlement with a third party that, following the sale of the building to an arm’s length third party, resulted in resolution of legal proceedings. CP received $59 million for the sale of the building which included repayment of the aforementioned loan to the judicial trustee and recorded a gain of $31 million ( $27 million after tax). |
Other Income and Charges
Other Income and Charges | 6 Months Ended |
Jun. 30, 2016 | |
Other Income and Expenses [Abstract] | |
Other Income and Charges | Other income and charges For the three months ended June 30 For the six months ended June 30 (in millions of Canadian dollars) 2016 2015 2016 2015 Foreign exchange (gain) loss on long-term debt $ (18 ) $ (10 ) $ (199 ) $ 54 Other foreign exchange (gains) losses — — (7 ) 6 Other 9 5 16 8 Total other income and charges $ (9 ) $ (5 ) $ (190 ) $ 68 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income taxes For the three months ended June 30 For the six months ended June 30 (in millions of Canadian dollars) 2016 2015 2016 2015 Current income tax expense $ 27 $ 103 $ 104 $ 205 Deferred income tax expense 90 74 183 106 Income tax expense $ 117 $ 177 $ 287 $ 311 The estimated 2016 annual effective tax rate for the three and six months ended June 30, 2016 , excluding the discrete item related to the foreign exchange gain on the Company’s U.S. dollar-denominated debt, is 26.93% and 27.25% , respectively, compared to the estimate of 27.50% for the same periods in 2015 . The effective tax rate for the three and six months ended June 30, 2016 , including the discrete item, is 26.40% and 24.86% , respectively, compared to 31.30% and 30.51% , respectively, for the same period in 2015 . |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings per share At June 30, 2016 , the number of shares outstanding was 148.4 million ( June 30, 2015 - 161.3 million ). Basic earnings per share have been calculated using net income for the period divided by the weighted-average number of shares outstanding during the period. The number of shares used in earnings per share calculations is reconciled as follows: For the three months ended June 30 For the six months ended June 30 (in millions) 2016 2015 2016 2015 Weighted-average basic shares outstanding 151.7 163.7 152.3 164.3 Dilutive effect of stock options 0.9 1.3 0.9 1.4 Weighted-average diluted shares outstanding 152.6 165.0 153.2 165.7 For the three and six months ended June 30, 2016 , there were 440,009 options and 443,000 options, respectively, excluded from the computation of diluted earnings per share because their effects were not dilutive ( three and six months ended June 30, 2015 - 175,068 and 87,976 , respectively). |
Debt (Notes)
Debt (Notes) | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt Revolving credit facility Effective June 28, 2016, the Company extended the maturity date by one year on its existing revolving U.S. $2.0 billion revolving credit facility, which includes a U.S. $1.0 billion five-year portion and U.S. $1.0 billion one-year plus one-year term-out portion. The maturity date on the U.S. $1.0 billion one-year plus one-year term-out portion has been extended to June 28, 2018; the maturity date on the U.S. $1.0 billion five-year portion was extended to June 28, 2021. Commercial paper program The Company has a commercial paper program which enables it to issue commercial paper up to a maximum aggregate principal amount of U.S. $1.0 billion in the form of unsecured promissory notes. The commercial paper is backed by the U.S. $1.0 billion one-year plus one-year term-out portion of the revolving credit facility. As at June 30, 2016, the Company had total commercial paper borrowings of U.S. $135 million ( $174 million ), presented in “Long-term debt maturing within one year” on the Interim Consolidated Balance Sheets (December 31, 2015 - $ nil ). The weighted-average interest rate on these borrowings was 0.67% . The Company presents issuances and repayments of commercial paper in the Interim Consolidated Statements of Cash Flows on a net basis, all of which have a maturity of less than 90 days . |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders' equity On April 20, 2016, the Company announced a new normal course issuer bid ("bid"), commencing May 2, 2016 to May 1, 2017, to purchase up to 6.91 million of its outstanding Common Shares for cancellation. All purchases are made in accordance with the bid at prevalent market prices plus brokerage fees, or such other prices that may be permitted by the Toronto Stock Exchange, with consideration allocated to share capital up to the average carrying amount of the shares, and any excess allocated to retained earnings. The following table provides activities under the share repurchase program: For the three months ended June 30 For the six months ended June 30 2016 2015 2016 2015 Number of Common Shares repurchased (1) 5,127,800 3,058,900 5,127,800 5,233,688 Weighted-average price per share (2) $ 169.13 $ 193.10 $ 169.13 $ 206.40 Amount of repurchase (in millions) (2) $ 867 $ 590 $ 867 $ 1,080 (1) Includes shares repurchased but not yet canceled at quarter end. (2) Includes brokerage fees. |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Financial instruments A. Fair values of financial instruments The Company categorizes its financial assets and liabilities measured at fair value in line with the fair value hierarchy established by GAAP that prioritizes, with respect to reliability, the inputs to valuation techniques used to measure fair value. This hierarchy consists of three broad levels. Level 1 inputs consist of quoted prices (unadjusted) in active markets for identical assets and liabilities and give the highest priority to these inputs. Level 2 and 3 inputs are based on significant other observable inputs and significant unobservable inputs, respectively, and give lower priority to these inputs. When possible, the estimated fair value is based on quoted market prices and, if not available, estimates from third party brokers. For non-exchange traded derivatives classified in Level 2, the Company uses standard valuation techniques to calculate fair value. Primary inputs to these techniques include observable market prices (interest, foreign exchange (“FX”) and commodity) and volatility, depending on the type of derivative and nature of the underlying risk. The Company uses inputs and data used by willing market participants when valuing derivatives and considers its own credit default swap spread as well as those of its counterparties in its determination of fair value. The carrying values of financial instruments equal or approximate their fair values with the exception of long-term debt which has a fair value of approximately $10,335 million at June 30, 2016 (December 31, 2015 - $9,750 million ) and a carrying value of $8,581 million at June 30, 2016 (December 31, 2015 - $8,957 million ). The estimated fair value of current and long-term borrowings has been determined based on market information where available, or by discounting future payments of interest and principal at estimated interest rates expected to be available to the Company at period end. All derivatives and long-term debt are classified as Level 2. B. Financial risk management Derivative financial instruments Derivative financial instruments may be used to selectively reduce volatility associated with fluctuations in interest rates, FX rates, the price of fuel and stock-based compensation expense. Where derivatives are designated as hedging instruments, the relationship between the hedging instruments and their associated hedged items is documented, as well as the risk management objective and strategy for the use of the hedging instruments. This documentation includes linking the derivatives that are designated as fair value or cash flow hedges to specific assets or liabilities on the Interim Consolidated Balance Sheets, commitments or forecasted transactions. At the time a derivative contract is entered into, and at least quarterly thereafter, an assessment is made whether the derivative item is effective in offsetting the changes in fair value or cash flows of the hedged items. The derivative qualifies for hedge accounting treatment if it is effective in substantially mitigating the risk it was designed to address. It is not the Company’s intent to use financial derivatives or commodity instruments for trading or speculative purposes. FX management The Company conducts business transactions and owns assets in both Canada and the United States. As a result, the Company is exposed to fluctuations in value of financial commitments, assets, liabilities, income or cash flows due to changes in FX rates. The Company may enter into FX risk management transactions primarily to manage fluctuations in the exchange rate between Canadian and U.S. currencies. FX exposure is primarily mitigated through natural offsets created by revenues, expenditures and balance sheet positions incurred in the same currency. Where appropriate, the Company may negotiate with customers and suppliers to reduce the net exposure. Net investment hedge The FX gains and losses on long-term debt are mainly unrealized and can only be realized when U.S. dollar denominated long-term debt matures or is settled. The Company also has long-term FX exposure on its investment in U.S. affiliates. The majority of the Company’s U.S. dollar denominated long-term debt has been designated as a hedge of the net investment in foreign subsidiaries. This designation has the effect of mitigating volatility on net income by offsetting long-term FX gains and losses on U.S. dollar denominated long-term debt and gains and losses on its net investment. The effective portion recognized in “Other comprehensive income” for the three and six months ended June 30, 2016 was an unrealized FX gain of $24 million and $332 million , respectively ( three and six months ended June 30, 2015 - unrealized FX gain of $58 million and an unrealized FX loss of $298 million , respectively). There was no ineffectiveness during the three and six months ended June 30, 2016 and June 30, 2015 . Interest rate management The Company is exposed to interest rate risk, which is the risk that the fair value or future cash flows of a financial instrument will vary as a result of changes in market interest rates. In order to manage funding needs or capital structure goals, the Company enters into debt or capital lease agreements that are subject to either fixed market interest rates set at the time of issue or floating rates determined by on-going market conditions. Debt subject to variable interest rates exposes the Company to variability in interest expense, while debt subject to fixed interest rates exposes the Company to variability in the fair value of debt. To manage interest rate exposure, the Company accesses diverse sources of financing and manages borrowings in line with a targeted range of capital structure, debt ratings, liquidity needs, maturity schedule, and currency and interest rate profiles. In anticipation of future debt issuances, the Company may enter into forward rate agreements, that are designated as cash flow hedges, to substantially lock in all or a portion of the effective future interest expense. The Company may also enter into swap agreements, designated as fair value hedges, to manage the mix of fixed and floating rate debt. Forward starting swaps As at December 31, 2015, the Company had forward starting floating-to-fixed interest rate swap agreements (“forward starting swaps”) totaling a notional U.S. $700 million to fix the benchmark rate on cash flows associated with highly probable forecasted issuances of long-term notes. The effective portion of changes in fair value on the forward starting swaps is recorded in “Accumulated other comprehensive loss”, net of tax, as cash flow hedges until the highly probable forecasted notes are issued. Subsequent to the notes issuance, amounts in “Accumulated other comprehensive loss” are reclassified to “Net interest expense”. During the second quarter of 2016, the Company rolled the notional U.S. $700 million forward starting swaps. The Company de-designated the hedging relationship for U.S. $700 million of forward starting swaps. The Company did not cash settle these swaps. There was no ineffectiveness to record upon de-designation. Concurrently the Company re-designated the forward starting swaps totaling U.S. $700 million to fix the benchmark rate on cash flows associated with a highly probable forecasted debt issuance of long-term notes. As at June 30, 2016 , the total fair value loss of $144 million ( December 31, 2015 - fair value loss of $60 million ) derived from the forward starting swaps was included in “Accounts payable and accrued liabilities”. Changes in fair value from the forward starting swaps for the three and six months ended June 30, 2016 was a loss of $32 million and $84 million , respectively ( three and six months ended June 30, 2015 - a gain of $34 million and a loss of $39 million , respectively). The effective portion for the three and six months ended June 30, 2016 of a loss of $32 million and $82 million , respectively, ( three and six months ended June 30, 2015 - a fair value gain of $34 million and a fair value loss of $37 million , respectively) is recorded in “Other comprehensive income”. For the three and six months ended June 30, 2016 , the ineffective portion of $ nil and $2 million loss, respectively ( three and six months ended June 30, 2015 - $ nil and $2 million loss, respectively) is recorded to “Net interest expense” on the Interim Consolidated Statements of Income. For the three and six months ended June 30, 2016 , a loss of $3 million and $5 million , respectively, related to previous forward starting swap hedges have been amortized to “Net interest expense” ( three and six months ended June 30, 2015 - a loss of $1 million and $2 million , respectively). The Company expects that during the next 12 months $11 million of losses will be amortized to “Net interest expense”. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-based compensation At June 30, 2016 , the Company had several stock-based compensation plans, including stock option plans, various cash settled liability plans and an employee stock savings plan. These plans resulted in an expense for the three and six months ended June 30, 2016 of $1 million and $15 million , respectively ( three and six months ended June 30, 2015 - recovery of $5 million and an expense of $24 million , respectively). Regular options In the six months ended June 30, 2016 , under CP’s stock option plans, the Company issued 402,331 regular options at the weighted average price of $165.55 per share, based on the closing price on the grant date. Pursuant to the employee plan, these regular options may be exercised upon vesting, which is between 12 months and 48 months after the grant date, and will expire after 10 years . Under the fair value method, the fair value of the regular options at the grant date was approximately $16 million . The weighted average fair value assumptions were approximately: For the six months ended June 30, 2016 Grant price $165.55 Expected option life (years) (1) 5.25 Risk-free interest rate (2) 1.21% Expected stock price volatility (3) 26.58% Expected annual dividends per share (4) $1.40 Expected forfeiture rate (5) 2.0% Weighted-average grant date fair value per regular options granted during the period $38.98 (1) Represents the period of time that awards are expected to be outstanding. Historical data on exercise behaviour, or when available, specific expectations regarding future exercise behaviour, were used to estimate the expected life of the option. (2) Based on the implied yield available on zero-coupon government issues with an equivalent remaining term at the time of the grant. (3) Based on the historical stock price volatility of the Company’s stock over a period commensurate with the expected term of the option. (4) Determined by the current annual dividend at the time of grant. The Company does not employ different dividend yields throughout the contractual term of the option. On April 20, 2016, the Company announced an increase in its quarterly dividend to $0.50 per share, representing $2.00 on an annual basis. (5) The Company estimated forfeitures based on past experience. This rate is monitored on a periodic basis. Performance share unit (“PSU”) plan In the six months ended June 30, 2016 , the Company issued 147,157 PSUs with a grant date fair value of approximately $24 million . These units attract dividend equivalents in the form of additional units based on the dividends paid on the Company’s Common Shares. PSUs vest and are settled in cash, or in CP Common Shares, approximately three years after the grant date, contingent upon CP’s performance ("performance factor"). The fair value of PSUs is measured periodically until settlement, using a latticed-based valuation model. The performance period for PSUs issued in the six months ended June 30, 2016 is January 1, 2016 to December 31, 2018. The performance factors for these PSUs are Operating Ratio, Return on Invested Capital, Total Shareholder Return ("TSR") compared to the S&P/TSX 60 Index, and TSR compared to Class I railways. The performance period for the PSUs issued in the fourth quarter of 2012 and in 2013 was January 1, 2013 to December 31, 2015. The performance factors for these PSUs were Operating Ratio, Free cash flow, TSR compared to the S&P/TSX 60 index, TSR compared to Class I railways. All performance factors met the 200% payout thresholds, in effect resulting in a target payout of 200% on 300,095 total outstanding awards as at December 31, 2015. A payout of $79 million on 217,179 outstanding awards occurred on December 31, 2015 and was calculated using the Company's average share price using the last 30 trading days preceding December 31, 2015. In the first quarter of 2016, final payouts occurred on the total outstanding awards, including dividends reinvested, totaling $31 million on 83,563 outstanding awards. Deferred share unit (“DSU”) plan In the six months ended June 30, 2016 , the Company granted 25,050 DSUs with a grant date fair value of approximately $4 million . DSUs vest over various periods of up to 48 months and are only redeemable for a specified period after employment is terminated. An expense to income for DSUs is recognized over the vesting period for both the initial subscription price and the change in value between reporting periods. |
Pensions and Other Benefits
Pensions and Other Benefits | 6 Months Ended |
Jun. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Pensions and Other Benefits | Pension and other benefits In the three and six months ended June 30, 2016 , the Company made contributions of $14 million and $34 million , respectively( three and six months ended June 30, 2015 - $20 million and $41 million , respectively), to its defined benefit pension plans. The elements of net periodic benefit cost for defined benefit pension plans and other benefits recognized in the three and six months ended June 30, 2016 included the following components: For the three months ended June 30 Pensions Other benefits (in millions of Canadian dollars) 2016 2015 2016 2015 Current service cost (benefits earned by employees in the period) $ 26 $ 32 $ 3 $ 3 Interest cost on benefit obligation 116 116 5 5 Expected return on fund assets (211 ) (212 ) — — Recognized net actuarial loss 47 66 1 1 Amortization of prior service costs (1 ) (2 ) — — Net periodic benefit (recovery) cost $ (23 ) $ — $ 9 $ 9 For the six months ended June 30 Pensions Other benefits (in millions of Canadian dollars) 2016 2015 2016 2015 Current service cost (benefits earned by employees in the period) $ 53 $ 64 $ 6 $ 6 Interest cost on benefit obligation 233 231 10 10 Expected return on fund assets (423 ) (413 ) — — Recognized net actuarial loss 95 132 2 2 Amortization of prior service costs (3 ) (3 ) — — Net periodic benefit (recovery) cost $ (45 ) $ 11 $ 18 $ 18 |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies In the normal course of its operations, the Company becomes involved in various legal actions, including claims relating to injuries and damage to property. The Company maintains provisions it considers to be adequate for such actions. While the final outcome with respect to actions outstanding or pending at June 30, 2016 cannot be predicted with certainty, it is the opinion of management that their resolution will not have a material adverse effect on the Company’s financial position or results of operations. Legal proceedings related to Lac-Mégantic rail accident On July 6, 2013, a train carrying crude oil operated by Montreal Maine and Atlantic Railway (“MMA”) and/or its subsidiary, Montreal Maine and Atlantic Canada Co. (“MMAC”, and collectively with MMA, the “MMA Group”) derailed and exploded in Lac-Mégantic, Quebec on a section of railway line owned by the MMA Group. The previous day CP had interchanged the train to the MMA Group, and after that interchange MMA Group exercised exclusive control over the train. Following this incident, the Minister of Sustainable Development, Environment, Wildlife and Parks of Quebec issued an order directing certain named parties to recover the contaminants and to clean up and decontaminate the derailment site. CP was added as a named party on August 14, 2013 (the “Amended Cleanup Order”). CP has sought an administrative appeal of the Amended Cleanup Order to the Administrative Tribunal of Quebec. The proceedings before the Administrative tribunal have been stayed until September 2016. Directly related to this matter, the Province of Quebec filed a lawsuit against CP before the Quebec Superior Court on July 6, 2015 in which it claims $409 million for the damages sustained by the province as a result of the expenses incurred following the derailment, including costs incurred for the work carried out pursuant to the Amended Cleanup Order. The province alleges that CP had custody or control of the contaminants that were discharged in Lac-Mégantic on July 6, 2013, and that CP was otherwise negligent and therefore is solidarily (joint and severally) liable with the other third parties responsible for the accident. The province’s lawsuit has been stayed until September 12, 2016. Also directly related to the this matter, the Quebec Minister of Sustainable Development and Environment has served a Notice of Claim on July 5, 2016 claiming nearly $95 million in compensation from CP for having to carry out the cleanup measures set out in the Amended Cleanup Order, alleging that CP had refused or neglected to carry out same. These proceedings are duplicative, in whole or in part. A class action lawsuit has also been filed in the Superior Court of Quebec on behalf of a class of persons and entities residing in, owning or leasing property in, operating a business in or physically present in Lac-Mégantic (the “Class Action”). The lawsuit seeks damages caused by the derailment including for wrongful deaths, personal injuries, and property damages. CP was added as a defendant on August 16, 2013. On May 8, 2015, the Superior Court of Quebec authorized the institution of the Class Action as against CP and as against the shipper, Western Petroleum, and the shipper’s parent, World Fuel Services (collectively, the “World Fuel Defendants”). The World Fuel Defendants have since settled. No timetable governing the conduct of this lawsuit has been ordered by the Superior Court of Quebec. On July 4, 2016, CP was served with subrogated insurance claims brought by 8 insurers for a claimed amount of approximately $16 million . On July 11, 2016, CP was served with subrogated insurance claims brought by an additional 2 insurers for a claimed amount of approximately $3 million . These insurers have not identified in their respective lawsuit the identity of the parties to whose claims they are subrogated and thus it is difficult to determine the extent to which these claims overlap with other claims and the extent to which their claim would be satisfied after their proof of claim has been reviewed and distribution is received from the Plans of arrangements referred to below. In the wake of the derailment and ensuing litigation, MMAC filed for bankruptcy in Canada (the “Canadian Proceeding”) and MMA filed for bankruptcy in the United States (the “U.S. Proceeding”). Plans of arrangement have been approved both in the Canadian Proceeding and the U.S. Proceeding (the “Plans”). These Plans provide for the distribution of a fund of approximately $440 million amongst those who claimed loss or damage as a result of the derailment and will release those parties which contributed to the fund from any further liability. The Plans also provide for broadly worded third-party releases and injunctions that prevent actions against settling parties. CP has not participated in the settlement and hence will not benefit from any third-party releases or injunctions. In addition, both Plans contain judgment reduction provisions. Pursuant to these provisions, in the event of a judgment against CP in a case arising from the Lac-Mégantic derailment, CP will receive a credit for the greater of (i) the settlement monies received by the plaintiff(s) for the claim, or (ii) the amount which, but for the third-party non-debtor injunctions, CP would have been entitled to obtain from third parties other than MMA and MMAC through contribution or indemnification. CP may also have rights to judgment reduction, as part of the contribution/indemnification credit, for the fault of MMA and/or MMAC. The provisions of the Plans also provide for a potential re-allocation of of the MMA Group’s liability among plaintiffs and CP, the only non-settling party. An Adversary Proceeding filed by the MMA U.S. bankruptcy trustee against CP, Irving Oil and the World Fuel Defendants accuses CP of failing to ensure that World Fuel Defendants or Irving Oil properly classified the oil lading and of not refusing to ship the oil in DOT-111 tank cars. The trustee has since settled with the World Fuel Defendants and Irving Oil and now maintains that CP misfeasance is based upon the railroad’s failure to abide by a Canadian regulation in North Dakota that supposedly would have caused the originating railroad to refuse to carry the crude oil based upon reason to suspect inaccurate classification. In response to CP’s motion to withdraw the Adversary Proceedings from the bankruptcy reference, the trustee maintained that Canadian law rather than U.S. law controlled, and the Article III court found that if the federal regulations governed, the case was not complex enough to warrant withdrawal. In bankruptcy court CP moved to dismiss for want of personal jurisdiction, but that motion, which was heard on August 18, 2015, has been denied. Motions to dismiss on procedural grounds are pending. The trustee recently withdrew objection to the trial of the Adversary Proceedings to a jury before the Article III district court. There are also a class action and a mass action instituted Texas and wrongful death and personal injury actions instituted in Illinois and Maine. All the various lawsuits have been removed to federal court and have since been consolidated in Maine. These actions generally charge CP with negligence in the misclassification and mis-packaging (that is the use of inappropriate DOT-111 tank cars). Motions to dismiss have been filed and heard regarding jurisdiction and venue. Decisions on CP’s motions and other parties’ cross-motions are pending. CP has received two damage to cargo notices of claims from the shipper of the oil on the derailed train, Western Petroleum. Western Petroleum submitted U.S. and Canadian notices of claims for the same damages and, under the Carmack Amendment (49 U.S.C. Section 11706), seeks to recover for all injuries associated with, and indemnification for the derailment. Both jurisdictions permit a shipper to recover the value of damaged lading against any carrier in the delivery chain, subject to limitations in the carrier’s tariffs. CP’s tariffs significantly restrict shipper damage claim rights. Western Petroleum is part of the World Fuel Services group, and those entities settled with the trustee. On April 12, 2016, Trustee (the “WD Trustee”) of a wrongful death trust (the “WD Trust”), as defined and established under the confirmed Plan, filed an action against CP in federal court in North Dakota seeking to establish Carmack Amendment liability under 49 U.S.C. Section 11706. The WD Trustee asserts the WD Trust was assigned Carmack claim rights by the bankruptcy estate representative. The parties that settled Lac Megantic derailment liability in connection with MMA’s confirmed Plan supposedly gave the bankruptcy estate representative the right to assign Carmack claims. The WD Trustee seeks to recover losses associated with the lost lading (approximately $6 million ), as well as settlement amounts the consignor (i.e, the shipper, World Fuel Entities) and the consignee (Irving Oil) paid to the MMA bankruptcy estate to settle all Lac Megantic derailment claims, which are alleged to be $110 million and $60 million respectively. The WD Trustee maintains that Carmack liability extends beyond lading losses to cover all derailment related damages incurred by the World Fuel Services group or Irving Oil. CP disputes this interpretation of damages to lading law and maintains that CP’s tariffs, if applicable, would preclude such a result. At this early stage of the legal proceedings, any potential liability and the quantum of potential loss cannot be determined. Nevertheless, CP denies liability for the MMA derailment and intends to vigorously defend itself in the proceedings described above and in any proceeding that may be commenced in the future. Legal proceedings initiated by Canadian National Railway Company On August 13, 2015, Canadian National Railway Company (“CN”) issued a statement of claim against the Company and an employee. The statement of claim was amended on January 7, 2016 to include an additional employee and an officer of the Company. The principal allegations against the Company are that the Company obtained and benefited from certain confidential CN customer data. CN is seeking damages but has not yet provided evidence to substantiate its damages claim. The Company plans to defend this claim and the amount of loss, if any, to the Company as a result of the claim cannot be reasonably estimated. Environmental liabilities Environmental remediation accruals, recorded on an undiscounted basis unless a reliable, determinable estimate as to an amount and timing of costs can be established, cover site-specific remediation programs. The accruals for environmental remediation represent CP’s best estimate of its probable future obligation and include both asserted and unasserted claims, without reduction for anticipated recoveries from third parties. Although the recorded accruals include CP’s best estimate of all probable costs, CP’s total environmental remediation costs cannot be predicted with certainty. Accruals for environmental remediation may change from time to time as new information about previously untested sites becomes known, and as environmental laws and regulations evolve and advances are made in environmental remediation technology. The accruals may also vary as the courts decide legal proceedings against outside parties responsible for contamination. These potential charges, which cannot be quantified at this time, are not expected to be material to CP’s financial position, but may materially affect income in the particular period in which a charge is recognized. Costs related to existing, but as yet unknown, or future contamination will be accrued in the period in which they become probable and reasonably estimable. The expense included in “Purchased services and other” for the three and six months ended June 30, 2016 was $1 million and $2 million , respectively ( three and six months ended June 30, 2015 - $3 million and $6 million , respectively). Provisions for environmental remediation costs are recorded in “Other long-term liabilities”, except for the current portion which is recorded in “Accounts payable and accrued liabilities”. The total amount provided at June 30, 2016 was $86 million ( December 31, 2015 - $93 million ). Payments are expected to be made over 10 years through 2026. |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidating Financial Information | Canadian Pacific Railway Company, a 100%-owned subsidiary of Canadian Pacific Railway Limited (“CPRL”), is the issuer of certain debt securities, which are fully and unconditionally guaranteed by CPRL. The following tables present condensed consolidating financial information (“CCFI”) in accordance with Rule 3-10(c) of Regulation S-X. Investments in subsidiaries are accounted for under the equity method when presenting the CCFI. The tables include all adjustments necessary to reconcile the CCFI on a consolidated basis to CPRL’s consolidated financial statements for the periods presented. Interim Condensed Consolidating Statements of Income For the three months ended June 30, 2016 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Revenues Freight $ — $ 1,007 $ 399 $ — $ 1,406 Non-freight — 33 98 (87 ) 44 Total revenues — 1,040 497 (87 ) 1,450 Operating expenses Compensation and benefits — 181 102 1 284 Fuel — 103 28 — 131 Materials — 27 8 3 38 Equipment rents — 53 (9 ) — 44 Depreciation and amortization — 107 54 — 161 Purchased services and other — 193 139 (91 ) 241 Total operating expenses — 664 322 (87 ) 899 Operating income — 376 175 — 551 Less: Other income and charges (4 ) (12 ) 7 — (9 ) Net interest expense (income) 10 111 (6 ) — 115 (Loss) income before income tax expense and equity in net earnings of subsidiaries (6 ) 277 174 — 445 Less: Income tax (recovery) expense (6 ) 70 53 — 117 Add: Equity in net earnings of subsidiaries 328 121 — (449 ) — Net income $ 328 $ 328 $ 121 $ (449 ) $ 328 Interim Condensed Consolidating Statements of Income For the three months ended June 30, 2015 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Revenues Freight $ — $ 1,131 $ 479 $ — $ 1,610 Non-freight — 34 90 (83 ) 41 Total revenues — 1,165 569 (83 ) 1,651 Operating expenses Compensation and benefits — 198 110 — 308 Fuel — 134 51 — 185 Materials — 35 10 — 45 Equipment rents — 52 (6 ) — 46 Depreciation and amortization — 102 43 — 145 Purchased services and other — 192 167 (83 ) 276 Total operating expenses — 713 375 (83 ) 1,005 Operating income — 452 194 — 646 Less: Other income and charges (3 ) (8 ) 6 — (5 ) Net interest expense (income) — 98 (14 ) — 84 Income before income tax expense and equity in net earnings of subsidiaries 3 362 202 — 567 Less: Income tax expense 2 93 82 — 177 Add: Equity in net earnings of subsidiaries 389 120 — (509 ) — Net income $ 390 $ 389 $ 120 $ (509 ) $ 390 Interim Condensed Consolidating Statements of Income For the six months ended June 30, 2016 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Revenues Freight $ — $ 2,104 $ 850 $ — $ 2,954 Non-freight — 66 194 (173 ) 87 Total revenues — 2,170 1,044 (173 ) 3,041 Operating expenses Compensation and benefits — 382 228 3 613 Fuel — 206 50 — 256 Materials — 65 18 11 94 Equipment rents — 107 (18 ) — 89 Depreciation and amortization — 214 109 — 323 Purchased services and other — 329 320 (187 ) 462 Total operating expenses — 1,303 707 (173 ) 1,837 Operating income — 867 337 — 1,204 Less: Other income and charges (73 ) (150 ) 33 — (190 ) Net interest expense (income) 9 242 (12 ) — 239 Income before income tax expense and equity in net earnings of subsidiaries 64 775 316 — 1,155 Less: Income tax expense 3 181 103 — 287 Add: Equity in net earnings of subsidiaries 807 213 — (1,020 ) — Net income $ 868 $ 807 $ 213 $ (1,020 ) $ 868 Interim Condensed Consolidating Statements of Income For the six months ended June 30, 2015 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Revenues Freight $ — $ 2,250 $ 990 $ — $ 3,240 Non-freight — 63 179 (166 ) 76 Total revenues — 2,313 1,169 (166 ) 3,316 Operating expenses Compensation and benefits — 460 226 — 686 Fuel — 295 85 — 380 Materials — 78 19 — 97 Equipment rents — 88 — — 88 Depreciation and amortization — 204 87 — 291 Purchased services and other — 334 348 (166 ) 516 Total operating expenses — 1,459 765 (166 ) 2,058 Operating income — 854 404 — 1,258 Less: Other income and charges 15 78 (25 ) — 68 Net interest expense (income) — 194 (25 ) — 169 (Loss) income before income tax expense and equity in net earnings of subsidiaries (15 ) 582 454 — 1,021 Less: Income tax (recovery) expense (2 ) 160 153 — 311 Add: Equity in net earnings of subsidiaries 723 301 — (1,024 ) — Net income $ 710 $ 723 $ 301 $ (1,024 ) $ 710 Interim Condensed Consolidating Statements of Comprehensive Income For the three months ended June 30, 2016 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Net income $ 328 $ 328 $ 121 $ (449 ) $ 328 Net gain (loss) in foreign currency translation — 20 (17 ) — 3 Change in derivatives designated as cash flow — (29 ) — — (29 ) Change in pension and post-retirement defined — 41 2 — 43 Other comprehensive income (loss) before — 32 (15 ) — 17 Income tax expense on above items — (5 ) (2 ) — (7 ) Equity accounted investments 10 (17 ) — 7 — Other comprehensive income (loss) 10 10 (17 ) 7 10 Comprehensive income $ 338 $ 338 $ 104 $ (442 ) $ 338 Interim Condensed Consolidating Statements of Comprehensive Income For the three months ended June 30, 2015 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Net income $ 390 $ 389 $ 120 $ (509 ) $ 390 Net gain (loss) in foreign currency translation — 59 (52 ) — 7 Change in derivatives designated as cash flow — 36 — — 36 Change in pension and post-retirement defined benefit plans — 64 2 — 66 Other comprehensive income (loss) before — 159 (50 ) — 109 Income tax (expense) recovery on above items — (55 ) 20 — (35 ) Equity accounted investments 74 (30 ) — (44 ) — Other comprehensive income (loss) 74 74 (30 ) (44 ) 74 Comprehensive income $ 464 $ 463 $ 90 $ (553 ) $ 464 Interim Condensed Consolidating Statements of Comprehensive Income For the six months ended June 30, 2016 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Net income $ 868 $ 807 $ 213 $ (1,020 ) $ 868 Net gain (loss) in foreign currency translation — 330 (290 ) — 40 Change in derivatives designated as cash flow — (76 ) — — (76 ) Change in pension and post-retirement defined — 86 4 — 90 Other comprehensive income (loss) before — 340 (286 ) — 54 Income tax expense on above items — (46 ) (2 ) — (48 ) Equity accounted investments 6 (288 ) — 282 — Other comprehensive income (loss) 6 6 (288 ) 282 6 Comprehensive income (loss) $ 874 $ 813 $ (75 ) $ (738 ) $ 874 Interim Condensed Consolidating Statements of Comprehensive Income For the six months ended June 30, 2015 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Net income $ 710 $ 723 $ 301 $ (1,024 ) $ 710 Net (loss) gain in foreign currency translation — (298 ) 268 — (30 ) Change in derivatives designated as cash flow — (33 ) — — (33 ) Change in pension and post-retirement defined benefit plans — 134 4 — 138 Other comprehensive (loss) income before — (197 ) 272 — 75 Income tax recovery (expense) on above items — 13 (2 ) — 11 Equity accounted investments 86 270 — (356 ) — Other comprehensive income 86 86 270 (356 ) 86 Comprehensive income $ 796 $ 809 $ 571 $ (1,380 ) $ 796 Interim Condensed Consolidating Balance Sheets As at June 30, 2016 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Assets Current assets Cash and cash equivalents $ — $ 47 $ 45 $ — $ 92 Accounts receivable, net — 406 171 — 577 Accounts receivable, inter-company 78 80 159 (317 ) — Short-term advances to affiliates — 470 3,758 (4,228 ) — Materials and supplies — 164 31 — 195 Other current assets — 49 10 — 59 78 1,216 4,174 (4,545 ) 923 Long-term advances to affiliates 501 — 88 (589 ) — Investments — 26 129 — 155 Investments in subsidiaries 8,217 9,753 — (17,970 ) — Properties — 8,560 7,600 — 16,160 Goodwill and intangible assets — — 195 — 195 Pension asset — 1,565 — — 1,565 Other assets — 50 20 — 70 Deferred income taxes 14 — — (14 ) — Total assets $ 8,810 $ 21,170 $ 12,206 $ (23,118 ) $ 19,068 Liabilities and shareholders’ equity Current liabilities Accounts payable and accrued liabilities $ 156 $ 804 $ 287 $ — $ 1,247 Accounts payable, inter-company 3 235 79 (317 ) — Short-term advances from affiliates 3,960 247 21 (4,228 ) — Long-term debt maturing within one year — 198 — — 198 4,119 1,484 387 (4,545 ) 1,445 Pension and other benefit liabilities — 675 76 — 751 Long-term advances from affiliates — 589 — (589 ) — Other long-term liabilities — 159 127 — 286 Long-term debt — 8,323 60 — 8,383 Deferred income taxes — 1,723 1,803 (14 ) 3,512 Total liabilities 4,119 12,953 2,453 (5,148 ) 14,377 Shareholders’ equity Share capital 2,000 1,037 5,808 (6,845 ) 2,000 Additional paid-in capital 49 1,630 418 (2,048 ) 49 Accumulated other comprehensive (loss) income (1,471 ) (1,471 ) 548 923 (1,471 ) Retained earnings 4,113 7,021 2,979 (10,000 ) 4,113 4,691 8,217 9,753 (17,970 ) 4,691 Total liabilities and shareholders’ equity $ 8,810 $ 21,170 $ 12,206 $ (23,118 ) $ 19,068 Condensed Consolidating Balance Sheets As at December 31, 2015 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Assets Current assets Cash and cash equivalents $ — $ 502 $ 148 $ — $ 650 Accounts receivable, net — 452 193 — 645 Accounts receivable, inter-company 59 105 265 (429 ) — Short-term advances to affiliates — 75 3,483 (3,558 ) — Materials and supplies — 154 34 — 188 Other current assets — 37 17 — 54 59 1,325 4,140 (3,987 ) 1,537 Long-term advances to affiliates 501 207 376 (1,084 ) — Investments — 22 130 — 152 Investments in subsidiaries 7,518 9,832 — (17,350 ) — Properties — 8,481 7,792 — 16,273 Goodwill and intangible assets — 3 208 — 211 Pension asset — 1,401 — — 1,401 Other assets — 55 8 — 63 Deferred income taxes 25 — — (25 ) — Total assets $ 8,103 $ 21,326 $ 12,654 $ (22,446 ) $ 19,637 Liabilities and shareholders’ equity Current liabilities Accounts payable and accrued liabilities $ 54 $ 1,122 $ 241 $ — $ 1,417 Accounts payable, inter-company — 325 104 (429 ) — Short-term advances from affiliates 3,253 230 75 (3,558 ) — Long-term debt maturing within one year — 24 6 — 30 3,307 1,701 426 (3,987 ) 1,447 Pension and other benefit liabilities — 676 82 — 758 Long-term advances from affiliates — 877 207 (1,084 ) — Other long-term liabilities — 186 132 — 318 Long-term debt — 8,863 64 — 8,927 Deferred income taxes — 1,505 1,911 (25 ) 3,391 Total liabilities 3,307 13,808 2,822 (5,096 ) 14,841 Shareholders’ equity Share capital 2,058 1,037 5,465 (6,502 ) 2,058 Additional paid-in capital 43 1,568 613 (2,181 ) 43 Accumulated other comprehensive (loss) income (1,477 ) (1,477 ) 840 637 (1,477 ) Retained earnings 4,172 6,390 2,914 (9,304 ) 4,172 4,796 7,518 9,832 (17,350 ) 4,796 Total liabilities and shareholders’ equity $ 8,103 $ 21,326 $ 12,654 $ (22,446 ) $ 19,637 Interim Condensed Consolidating Statements of Cash Flows For the three months ended June 30, 2016 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Cash provided by operating activities $ 75 $ 374 $ 219 $ (156 ) $ 512 Investing activities Additions to properties — (206 ) (124 ) — (330 ) Proceeds from sale of properties and other assets — 11 — — 11 Advances to affiliates — (482 ) (285 ) 767 — Repayment of advances to affiliates — 208 — (208 ) — Capital contributions to affiliates — (348 ) — 348 — Other — — (2 ) — (2 ) Cash used in investing activities — (817 ) (411 ) 907 (321 ) Financing activities Dividends paid (53 ) (53 ) (103 ) 156 (53 ) Issuance of share capital — — 348 (348 ) — Issuance of CP Common Shares 4 — — — 4 Purchase of CP Common Shares (788 ) — — — (788 ) Repayment of long-term debt, excluding commercial paper — (7 ) — — (7 ) Net issuance of commercial paper — 176 — — 176 Advances from affiliates 762 — 5 (767 ) — Repayment of advances from affiliates — — (208 ) 208 — Other financing activities — (1 ) — — (1 ) Cash (used in) provided by financing activities (75 ) 115 42 (751 ) (669 ) Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents — (1 ) — — (1 ) Cash position Decrease in cash and cash equivalents — (329 ) (150 ) — (479 ) Cash and cash equivalents at beginning of period — 376 195 — 571 Cash and cash equivalents at end of period $ — $ 47 $ 45 $ — $ 92 Interim Condensed Consolidating Statements of Cash Flows For the three months ended June 30, 2015 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Cash provided by operating activities $ 59 $ 525 $ 143 $ (142 ) $ 585 Investing activities Additions to properties — (210 ) (145 ) — (355 ) Proceeds from sale of properties and other assets — 8 — — 8 Advances to affiliates (500 ) (633 ) (500 ) 1,633 — Capital contributions to affiliates — (500 ) — 500 — Other — (6 ) (1 ) — (7 ) Cash used in investing activities (500 ) (1,341 ) (646 ) 2,133 (354 ) Financing activities Dividends paid (57 ) (57 ) (85 ) 142 (57 ) Issuance of share capital — — 500 (500 ) — Issuance of CP Common Shares 11 — — — 11 Purchase of CP Common Shares (543 ) — — — (543 ) Repayment of long-term debt, excluding commercial paper — (9 ) — — (9 ) Net issuance of commercial paper — 369 — — 369 Advances from affiliates 1,030 500 103 (1,633 ) — Cash provided by (used in) financing activities 441 803 518 (1,991 ) (229 ) Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents — (1 ) — — (1 ) Cash position (Decrease) increase in cash and cash equivalents — (14 ) 15 — 1 Cash and cash equivalents at beginning of period — 153 31 — 184 Cash and cash equivalents at end of period $ — $ 139 $ 46 $ — $ 185 Interim Condensed Consolidating Statements of Cash Flows For the six months ended June 30, 2016 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Cash provided by operating activities $ 98 $ 425 $ 417 $ (210 ) $ 730 Investing activities Additions to properties — (338 ) (270 ) — (608 ) Proceeds from sale of properties and other assets — 68 3 — 71 Advances to affiliates — (517 ) (285 ) 802 — Repayment of advances to affiliates — 208 — (208 ) — Capital contributions to affiliates — (357 ) — 357 — Repurchase of share capital from affiliates — 6 — (6 ) — Other — — (2 ) — (2 ) Cash used in investing activities — (930 ) (554 ) 945 (539 ) Financing activities Dividends paid (107 ) (107 ) (103 ) 210 (107 ) Return of share capital to affiliates — — (6 ) 6 — Issuance of share capital — — 357 (357 ) — Issuance of CP Common Shares 9 — — — 9 Purchase of CP Common Shares (788 ) — — — (788 ) Repayment of long-term debt, excluding commercial paper — (11 ) (7 ) — (18 ) Net issuance of commercial paper — 176 — — 176 Advances from affiliates 788 — 14 (802 ) — Repayment of advances from affiliates — — (208 ) 208 — Other financing activities — (3 ) — — (3 ) Cash (used in) provided by financing activities (98 ) 55 47 (735 ) (731 ) Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents — (5 ) (13 ) — (18 ) Cash position Decrease in cash and cash equivalents — (455 ) (103 ) — (558 ) Cash and cash equivalents at beginning of period — 502 148 — 650 Cash and cash equivalents at end of period $ — $ 47 $ 45 $ — $ 92 Interim Condensed Consolidating Statements of Cash Flows For the six months ended June 30, 2015 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Cash provided by operating activities $ 115 $ 824 $ 416 $ (215 ) $ 1,140 Investing activities Additions to properties — (303 ) (315 ) — (618 ) Proceeds from sale of properties and other assets — 59 1 — 60 Advances to affiliates (500 ) (936 ) (729 ) 2,165 — Capital contributions to affiliates — (617 ) — 617 — Other — 14 (1 ) — 13 Cash used in investing activities (500 ) (1,783 ) (1,044 ) 2,782 (545 ) Financing activities Dividends paid (115 ) (115 ) (100 ) 215 (115 ) Issuance of share capital — — 617 (617 ) — Issuance of CP Common Shares 27 — — — 27 Purchase of CP Common Shares (1,072 ) — — — (1,072 ) Issuance of long-term debt, excluding commercial paper — 810 — — 810 Repayment of long-term debt, excluding commercial paper — (24 ) (43 ) — (67 ) Net repayment of commercial paper — (224 ) — — (224 ) Advances from affiliates 1,545 500 120 (2,165 ) — Cash provided by (used in) financing activities 385 947 594 (2,567 ) (641 ) Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents — (1 ) 6 — 5 Cash position Decrease in cash and cash equivalents — (13 ) (28 ) — (41 ) Cash and cash equivalents at beginning of period — 152 74 — 226 Cash and cash equivalents at end of period $ — $ 139 $ 46 $ — $ 185 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Accounting Changes | Implemented in 2016 Amendments to the Consolidation Analysis In February 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) 2015-02, Amendments to the Consolidation Analysis under FASB Accounting Standards Codification ("ASC") Topic 810 Consolidation. The amendments required reporting entities to evaluate whether they should consolidate certain legal entities under the revised consolidation model. Specifically, the amendments modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (“VIEs”) or voting interest entities, eliminated the presumption that a general partner should consolidate a limited partnership and affected the consolidation analysis of reporting entities involved with VIEs, particularly those that have fee arrangements and related party relationships. This ASU was effective for public entities for fiscal years, and interim periods within those years, beginning on or after December 15, 2015. Entities had the option of using either a full retrospective or a modified retrospective approach to adopt this ASU. The Company evaluated all arrangements that might give rise to a VIE and all existing VIEs; no changes to disclosure or financial statement presentation were required as a result of this evaluation. Future changes Leases In February 2016, the FASB issued ASU 2016-02, Leases. The new FASB ASC Topic 842 Leases supersedes the lease recognition and measurement requirements in Topic 840 Leases. This new standard requires recognition of right-of-use assets and lease liabilities by lessees for those leases classified as finance and operating leases with a maximum term exceeding 12 months. This ASU will be effective for public entities for fiscal years, and interim periods within those years, beginning on or after December 15, 2018. Entities are required to use a modified retrospective approach to adopt this ASU. The Company is currently evaluating the impact adoption of this ASU will have on the consolidated financial statements. Revenue from Contracts with Customers In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations under FASB ASC Topic 606. The amendments clarify the principal versus agent guidance in determining whether to recognize revenue on a gross or net basis. The amendments are effective for public entities for annual reporting periods beginning on or after December 15, 2017, including interim periods within that reporting period. Entities have the option of using either a full retrospective or a modified retrospective approach to adopt this ASU. The Company is currently evaluating the impact adoption of this ASU will have on the consolidated financial statements. Compensation - Stock Compensation In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation, under ASC Topic 718. The amendments clarify the guidance relating to treatment of excess tax benefits and deficiencies, acceptable forfeiture rate policies, and treatment of cash paid by an employer when directly withholding shares for tax-withholding purposes and the requirement to treat such cash flows as a financing activity. This ASU will be effective for public entities for fiscal years, and interim periods within those years, beginning on or after December 15, 2016. Early adoption is permitted. The Company is currently evaluating the impact adoption of this ASU will have on the consolidated financial statements. |
Changes in Accumulated Other 22
Changes in Accumulated Other Comprehensive Loss ("AOCL") by Component (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss (AOCL) by Component | For the three months ended June 30 (in millions of Canadian dollars, net of tax) Foreign currency Derivatives and other Pension and post-retirement defined benefit plans Total Opening balance, 2016 $ 125 $ (136 ) $ (1,470 ) $ (1,481 ) Other comprehensive income (loss) before reclassifications (1 ) (23 ) (2 ) (26 ) Amounts reclassified from accumulated other comprehensive loss — 2 34 36 Net current-period other comprehensive (loss) income (1 ) (21 ) 32 10 Closing balance, 2016 $ 124 $ (157 ) $ (1,438 ) $ (1,471 ) Opening balance, 2015 $ 125 $ (103 ) $ (2,229 ) $ (2,207 ) Other comprehensive income (loss) before reclassifications — 26 — 26 Amounts reclassified from accumulated other comprehensive loss — — 48 48 Net current-period other comprehensive income — 26 48 74 Closing balance, 2015 $ 125 $ (77 ) $ (2,181 ) $ (2,133 ) For the six months ended June 30 (in millions of Canadian dollars, net of tax) Foreign currency Derivatives and other Pension and post-retirement defined benefit plans Total Opening balance, 2016 $ 129 $ (102 ) $ (1,504 ) $ (1,477 ) Other comprehensive income (loss) before reclassifications (5 ) (59 ) (2 ) (66 ) Amounts reclassified from accumulated other comprehensive loss — 4 68 72 Net current-period other comprehensive (loss) income (5 ) (55 ) 66 6 Closing balance, 2016 $ 124 $ (157 ) $ (1,438 ) $ (1,471 ) Opening balance, 2015 $ 115 $ (52 ) $ (2,282 ) $ (2,219 ) Other comprehensive income (loss) before reclassifications 10 (26 ) 5 (11 ) Amounts reclassified from accumulated other comprehensive loss — 1 96 97 Net current-period other comprehensive income (loss) 10 (25 ) 101 86 Closing balance, 2015 $ 125 $ (77 ) $ (2,181 ) $ (2,133 ) |
Summary of Amounts in Pension and Post-retirement Defined Benefit Plans Reclassified from Accumulated Other Comprehensive Loss | Amounts in Pension and post-retirement defined benefit plans reclassified from AOCL For the three months ended June 30 For the six months ended June 30 (in millions of Canadian dollars) 2016 2015 2016 2015 Amortization of prior service costs (a) $ (1 ) $ (2 ) $ (3 ) $ (3 ) Recognition of net actuarial loss (a) 48 67 97 134 Total before income tax 47 65 94 131 Income tax recovery (13 ) (17 ) (26 ) (35 ) Net of income tax $ 34 $ 48 $ 68 $ 96 (a) Impacts Compensation and benefits on the Interim Consolidated Statements of Income. |
Other Income and Charges (Table
Other Income and Charges (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Other Income and Expenses [Abstract] | |
Other Income and Charges | For the three months ended June 30 For the six months ended June 30 (in millions of Canadian dollars) 2016 2015 2016 2015 Foreign exchange (gain) loss on long-term debt $ (18 ) $ (10 ) $ (199 ) $ 54 Other foreign exchange (gains) losses — — (7 ) 6 Other 9 5 16 8 Total other income and charges $ (9 ) $ (5 ) $ (190 ) $ 68 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Tax Expense | For the three months ended June 30 For the six months ended June 30 (in millions of Canadian dollars) 2016 2015 2016 2015 Current income tax expense $ 27 $ 103 $ 104 $ 205 Deferred income tax expense 90 74 183 106 Income tax expense $ 117 $ 177 $ 287 $ 311 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Number of Shares Used In the Earnings Per Share Calculations | The number of shares used in earnings per share calculations is reconciled as follows: For the three months ended June 30 For the six months ended June 30 (in millions) 2016 2015 2016 2015 Weighted-average basic shares outstanding 151.7 163.7 152.3 164.3 Dilutive effect of stock options 0.9 1.3 0.9 1.4 Weighted-average diluted shares outstanding 152.6 165.0 153.2 165.7 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Activities Under Shares Repurchase Program | The following table provides activities under the share repurchase program: For the three months ended June 30 For the six months ended June 30 2016 2015 2016 2015 Number of Common Shares repurchased (1) 5,127,800 3,058,900 5,127,800 5,233,688 Weighted-average price per share (2) $ 169.13 $ 193.10 $ 169.13 $ 206.40 Amount of repurchase (in millions) (2) $ 867 $ 590 $ 867 $ 1,080 (1) Includes shares repurchased but not yet canceled at quarter end. (2) Includes brokerage fees. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Weighted-Average Fair Value Assumptions | The weighted average fair value assumptions were approximately: For the six months ended June 30, 2016 Grant price $165.55 Expected option life (years) (1) 5.25 Risk-free interest rate (2) 1.21% Expected stock price volatility (3) 26.58% Expected annual dividends per share (4) $1.40 Expected forfeiture rate (5) 2.0% Weighted-average grant date fair value per regular options granted during the period $38.98 (1) Represents the period of time that awards are expected to be outstanding. Historical data on exercise behaviour, or when available, specific expectations regarding future exercise behaviour, were used to estimate the expected life of the option. (2) Based on the implied yield available on zero-coupon government issues with an equivalent remaining term at the time of the grant. (3) Based on the historical stock price volatility of the Company’s stock over a period commensurate with the expected term of the option. (4) Determined by the current annual dividend at the time of grant. The Company does not employ different dividend yields throughout the contractual term of the option. On April 20, 2016, the Company announced an increase in its quarterly dividend to $0.50 per share, representing $2.00 on an annual basis. (5) The Company estimated forfeitures based on past experience. This rate is monitored on a periodic basis. |
Pensions and Other Benefits (Ta
Pensions and Other Benefits (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Net Periodic Benefit Cost for Defined Benefit Pension Plans and Other Benefits | The elements of net periodic benefit cost for defined benefit pension plans and other benefits recognized in the three and six months ended June 30, 2016 included the following components: For the three months ended June 30 Pensions Other benefits (in millions of Canadian dollars) 2016 2015 2016 2015 Current service cost (benefits earned by employees in the period) $ 26 $ 32 $ 3 $ 3 Interest cost on benefit obligation 116 116 5 5 Expected return on fund assets (211 ) (212 ) — — Recognized net actuarial loss 47 66 1 1 Amortization of prior service costs (1 ) (2 ) — — Net periodic benefit (recovery) cost $ (23 ) $ — $ 9 $ 9 For the six months ended June 30 Pensions Other benefits (in millions of Canadian dollars) 2016 2015 2016 2015 Current service cost (benefits earned by employees in the period) $ 53 $ 64 $ 6 $ 6 Interest cost on benefit obligation 233 231 10 10 Expected return on fund assets (423 ) (413 ) — — Recognized net actuarial loss 95 132 2 2 Amortization of prior service costs (3 ) (3 ) — — Net periodic benefit (recovery) cost $ (45 ) $ 11 $ 18 $ 18 |
Condensed Consolidating Finan29
Condensed Consolidating Financial Information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Interim Condensed Consolidating Statements of Income | Interim Condensed Consolidating Statements of Income For the three months ended June 30, 2016 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Revenues Freight $ — $ 1,007 $ 399 $ — $ 1,406 Non-freight — 33 98 (87 ) 44 Total revenues — 1,040 497 (87 ) 1,450 Operating expenses Compensation and benefits — 181 102 1 284 Fuel — 103 28 — 131 Materials — 27 8 3 38 Equipment rents — 53 (9 ) — 44 Depreciation and amortization — 107 54 — 161 Purchased services and other — 193 139 (91 ) 241 Total operating expenses — 664 322 (87 ) 899 Operating income — 376 175 — 551 Less: Other income and charges (4 ) (12 ) 7 — (9 ) Net interest expense (income) 10 111 (6 ) — 115 (Loss) income before income tax expense and equity in net earnings of subsidiaries (6 ) 277 174 — 445 Less: Income tax (recovery) expense (6 ) 70 53 — 117 Add: Equity in net earnings of subsidiaries 328 121 — (449 ) — Net income $ 328 $ 328 $ 121 $ (449 ) $ 328 Interim Condensed Consolidating Statements of Income For the three months ended June 30, 2015 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Revenues Freight $ — $ 1,131 $ 479 $ — $ 1,610 Non-freight — 34 90 (83 ) 41 Total revenues — 1,165 569 (83 ) 1,651 Operating expenses Compensation and benefits — 198 110 — 308 Fuel — 134 51 — 185 Materials — 35 10 — 45 Equipment rents — 52 (6 ) — 46 Depreciation and amortization — 102 43 — 145 Purchased services and other — 192 167 (83 ) 276 Total operating expenses — 713 375 (83 ) 1,005 Operating income — 452 194 — 646 Less: Other income and charges (3 ) (8 ) 6 — (5 ) Net interest expense (income) — 98 (14 ) — 84 Income before income tax expense and equity in net earnings of subsidiaries 3 362 202 — 567 Less: Income tax expense 2 93 82 — 177 Add: Equity in net earnings of subsidiaries 389 120 — (509 ) — Net income $ 390 $ 389 $ 120 $ (509 ) $ 390 Interim Condensed Consolidating Statements of Income For the six months ended June 30, 2016 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Revenues Freight $ — $ 2,104 $ 850 $ — $ 2,954 Non-freight — 66 194 (173 ) 87 Total revenues — 2,170 1,044 (173 ) 3,041 Operating expenses Compensation and benefits — 382 228 3 613 Fuel — 206 50 — 256 Materials — 65 18 11 94 Equipment rents — 107 (18 ) — 89 Depreciation and amortization — 214 109 — 323 Purchased services and other — 329 320 (187 ) 462 Total operating expenses — 1,303 707 (173 ) 1,837 Operating income — 867 337 — 1,204 Less: Other income and charges (73 ) (150 ) 33 — (190 ) Net interest expense (income) 9 242 (12 ) — 239 Income before income tax expense and equity in net earnings of subsidiaries 64 775 316 — 1,155 Less: Income tax expense 3 181 103 — 287 Add: Equity in net earnings of subsidiaries 807 213 — (1,020 ) — Net income $ 868 $ 807 $ 213 $ (1,020 ) $ 868 Interim Condensed Consolidating Statements of Income For the six months ended June 30, 2015 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Revenues Freight $ — $ 2,250 $ 990 $ — $ 3,240 Non-freight — 63 179 (166 ) 76 Total revenues — 2,313 1,169 (166 ) 3,316 Operating expenses Compensation and benefits — 460 226 — 686 Fuel — 295 85 — 380 Materials — 78 19 — 97 Equipment rents — 88 — — 88 Depreciation and amortization — 204 87 — 291 Purchased services and other — 334 348 (166 ) 516 Total operating expenses — 1,459 765 (166 ) 2,058 Operating income — 854 404 — 1,258 Less: Other income and charges 15 78 (25 ) — 68 Net interest expense (income) — 194 (25 ) — 169 (Loss) income before income tax expense and equity in net earnings of subsidiaries (15 ) 582 454 — 1,021 Less: Income tax (recovery) expense (2 ) 160 153 — 311 Add: Equity in net earnings of subsidiaries 723 301 — (1,024 ) — Net income $ 710 $ 723 $ 301 $ (1,024 ) $ 710 |
Interim Condensed Consolidating Statements of Comprehensive Income | Interim Condensed Consolidating Statements of Comprehensive Income For the three months ended June 30, 2016 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Net income $ 328 $ 328 $ 121 $ (449 ) $ 328 Net gain (loss) in foreign currency translation — 20 (17 ) — 3 Change in derivatives designated as cash flow — (29 ) — — (29 ) Change in pension and post-retirement defined — 41 2 — 43 Other comprehensive income (loss) before — 32 (15 ) — 17 Income tax expense on above items — (5 ) (2 ) — (7 ) Equity accounted investments 10 (17 ) — 7 — Other comprehensive income (loss) 10 10 (17 ) 7 10 Comprehensive income $ 338 $ 338 $ 104 $ (442 ) $ 338 Interim Condensed Consolidating Statements of Comprehensive Income For the three months ended June 30, 2015 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Net income $ 390 $ 389 $ 120 $ (509 ) $ 390 Net gain (loss) in foreign currency translation — 59 (52 ) — 7 Change in derivatives designated as cash flow — 36 — — 36 Change in pension and post-retirement defined benefit plans — 64 2 — 66 Other comprehensive income (loss) before — 159 (50 ) — 109 Income tax (expense) recovery on above items — (55 ) 20 — (35 ) Equity accounted investments 74 (30 ) — (44 ) — Other comprehensive income (loss) 74 74 (30 ) (44 ) 74 Comprehensive income $ 464 $ 463 $ 90 $ (553 ) $ 464 Interim Condensed Consolidating Statements of Comprehensive Income For the six months ended June 30, 2016 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Net income $ 868 $ 807 $ 213 $ (1,020 ) $ 868 Net gain (loss) in foreign currency translation — 330 (290 ) — 40 Change in derivatives designated as cash flow — (76 ) — — (76 ) Change in pension and post-retirement defined — 86 4 — 90 Other comprehensive income (loss) before — 340 (286 ) — 54 Income tax expense on above items — (46 ) (2 ) — (48 ) Equity accounted investments 6 (288 ) — 282 — Other comprehensive income (loss) 6 6 (288 ) 282 6 Comprehensive income (loss) $ 874 $ 813 $ (75 ) $ (738 ) $ 874 Interim Condensed Consolidating Statements of Comprehensive Income For the six months ended June 30, 2015 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Net income $ 710 $ 723 $ 301 $ (1,024 ) $ 710 Net (loss) gain in foreign currency translation — (298 ) 268 — (30 ) Change in derivatives designated as cash flow — (33 ) — — (33 ) Change in pension and post-retirement defined benefit plans — 134 4 — 138 Other comprehensive (loss) income before — (197 ) 272 — 75 Income tax recovery (expense) on above items — 13 (2 ) — 11 Equity accounted investments 86 270 — (356 ) — Other comprehensive income 86 86 270 (356 ) 86 Comprehensive income $ 796 $ 809 $ 571 $ (1,380 ) $ 796 |
Interim Condensed Consolidating Balance Sheets | Interim Condensed Consolidating Balance Sheets As at June 30, 2016 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Assets Current assets Cash and cash equivalents $ — $ 47 $ 45 $ — $ 92 Accounts receivable, net — 406 171 — 577 Accounts receivable, inter-company 78 80 159 (317 ) — Short-term advances to affiliates — 470 3,758 (4,228 ) — Materials and supplies — 164 31 — 195 Other current assets — 49 10 — 59 78 1,216 4,174 (4,545 ) 923 Long-term advances to affiliates 501 — 88 (589 ) — Investments — 26 129 — 155 Investments in subsidiaries 8,217 9,753 — (17,970 ) — Properties — 8,560 7,600 — 16,160 Goodwill and intangible assets — — 195 — 195 Pension asset — 1,565 — — 1,565 Other assets — 50 20 — 70 Deferred income taxes 14 — — (14 ) — Total assets $ 8,810 $ 21,170 $ 12,206 $ (23,118 ) $ 19,068 Liabilities and shareholders’ equity Current liabilities Accounts payable and accrued liabilities $ 156 $ 804 $ 287 $ — $ 1,247 Accounts payable, inter-company 3 235 79 (317 ) — Short-term advances from affiliates 3,960 247 21 (4,228 ) — Long-term debt maturing within one year — 198 — — 198 4,119 1,484 387 (4,545 ) 1,445 Pension and other benefit liabilities — 675 76 — 751 Long-term advances from affiliates — 589 — (589 ) — Other long-term liabilities — 159 127 — 286 Long-term debt — 8,323 60 — 8,383 Deferred income taxes — 1,723 1,803 (14 ) 3,512 Total liabilities 4,119 12,953 2,453 (5,148 ) 14,377 Shareholders’ equity Share capital 2,000 1,037 5,808 (6,845 ) 2,000 Additional paid-in capital 49 1,630 418 (2,048 ) 49 Accumulated other comprehensive (loss) income (1,471 ) (1,471 ) 548 923 (1,471 ) Retained earnings 4,113 7,021 2,979 (10,000 ) 4,113 4,691 8,217 9,753 (17,970 ) 4,691 Total liabilities and shareholders’ equity $ 8,810 $ 21,170 $ 12,206 $ (23,118 ) $ 19,068 Condensed Consolidating Balance Sheets As at December 31, 2015 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Assets Current assets Cash and cash equivalents $ — $ 502 $ 148 $ — $ 650 Accounts receivable, net — 452 193 — 645 Accounts receivable, inter-company 59 105 265 (429 ) — Short-term advances to affiliates — 75 3,483 (3,558 ) — Materials and supplies — 154 34 — 188 Other current assets — 37 17 — 54 59 1,325 4,140 (3,987 ) 1,537 Long-term advances to affiliates 501 207 376 (1,084 ) — Investments — 22 130 — 152 Investments in subsidiaries 7,518 9,832 — (17,350 ) — Properties — 8,481 7,792 — 16,273 Goodwill and intangible assets — 3 208 — 211 Pension asset — 1,401 — — 1,401 Other assets — 55 8 — 63 Deferred income taxes 25 — — (25 ) — Total assets $ 8,103 $ 21,326 $ 12,654 $ (22,446 ) $ 19,637 Liabilities and shareholders’ equity Current liabilities Accounts payable and accrued liabilities $ 54 $ 1,122 $ 241 $ — $ 1,417 Accounts payable, inter-company — 325 104 (429 ) — Short-term advances from affiliates 3,253 230 75 (3,558 ) — Long-term debt maturing within one year — 24 6 — 30 3,307 1,701 426 (3,987 ) 1,447 Pension and other benefit liabilities — 676 82 — 758 Long-term advances from affiliates — 877 207 (1,084 ) — Other long-term liabilities — 186 132 — 318 Long-term debt — 8,863 64 — 8,927 Deferred income taxes — 1,505 1,911 (25 ) 3,391 Total liabilities 3,307 13,808 2,822 (5,096 ) 14,841 Shareholders’ equity Share capital 2,058 1,037 5,465 (6,502 ) 2,058 Additional paid-in capital 43 1,568 613 (2,181 ) 43 Accumulated other comprehensive (loss) income (1,477 ) (1,477 ) 840 637 (1,477 ) Retained earnings 4,172 6,390 2,914 (9,304 ) 4,172 4,796 7,518 9,832 (17,350 ) 4,796 Total liabilities and shareholders’ equity $ 8,103 $ 21,326 $ 12,654 $ (22,446 ) $ 19,637 |
Interim Condensed Consolidating Statements of Cash Flows | Interim Condensed Consolidating Statements of Cash Flows For the three months ended June 30, 2016 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Cash provided by operating activities $ 75 $ 374 $ 219 $ (156 ) $ 512 Investing activities Additions to properties — (206 ) (124 ) — (330 ) Proceeds from sale of properties and other assets — 11 — — 11 Advances to affiliates — (482 ) (285 ) 767 — Repayment of advances to affiliates — 208 — (208 ) — Capital contributions to affiliates — (348 ) — 348 — Other — — (2 ) — (2 ) Cash used in investing activities — (817 ) (411 ) 907 (321 ) Financing activities Dividends paid (53 ) (53 ) (103 ) 156 (53 ) Issuance of share capital — — 348 (348 ) — Issuance of CP Common Shares 4 — — — 4 Purchase of CP Common Shares (788 ) — — — (788 ) Repayment of long-term debt, excluding commercial paper — (7 ) — — (7 ) Net issuance of commercial paper — 176 — — 176 Advances from affiliates 762 — 5 (767 ) — Repayment of advances from affiliates — — (208 ) 208 — Other financing activities — (1 ) — — (1 ) Cash (used in) provided by financing activities (75 ) 115 42 (751 ) (669 ) Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents — (1 ) — — (1 ) Cash position Decrease in cash and cash equivalents — (329 ) (150 ) — (479 ) Cash and cash equivalents at beginning of period — 376 195 — 571 Cash and cash equivalents at end of period $ — $ 47 $ 45 $ — $ 92 Interim Condensed Consolidating Statements of Cash Flows For the three months ended June 30, 2015 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Cash provided by operating activities $ 59 $ 525 $ 143 $ (142 ) $ 585 Investing activities Additions to properties — (210 ) (145 ) — (355 ) Proceeds from sale of properties and other assets — 8 — — 8 Advances to affiliates (500 ) (633 ) (500 ) 1,633 — Capital contributions to affiliates — (500 ) — 500 — Other — (6 ) (1 ) — (7 ) Cash used in investing activities (500 ) (1,341 ) (646 ) 2,133 (354 ) Financing activities Dividends paid (57 ) (57 ) (85 ) 142 (57 ) Issuance of share capital — — 500 (500 ) — Issuance of CP Common Shares 11 — — — 11 Purchase of CP Common Shares (543 ) — — — (543 ) Repayment of long-term debt, excluding commercial paper — (9 ) — — (9 ) Net issuance of commercial paper — 369 — — 369 Advances from affiliates 1,030 500 103 (1,633 ) — Cash provided by (used in) financing activities 441 803 518 (1,991 ) (229 ) Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents — (1 ) — — (1 ) Cash position (Decrease) increase in cash and cash equivalents — (14 ) 15 — 1 Cash and cash equivalents at beginning of period — 153 31 — 184 Cash and cash equivalents at end of period $ — $ 139 $ 46 $ — $ 185 Interim Condensed Consolidating Statements of Cash Flows For the six months ended June 30, 2016 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Cash provided by operating activities $ 98 $ 425 $ 417 $ (210 ) $ 730 Investing activities Additions to properties — (338 ) (270 ) — (608 ) Proceeds from sale of properties and other assets — 68 3 — 71 Advances to affiliates — (517 ) (285 ) 802 — Repayment of advances to affiliates — 208 — (208 ) — Capital contributions to affiliates — (357 ) — 357 — Repurchase of share capital from affiliates — 6 — (6 ) — Other — — (2 ) — (2 ) Cash used in investing activities — (930 ) (554 ) 945 (539 ) Financing activities Dividends paid (107 ) (107 ) (103 ) 210 (107 ) Return of share capital to affiliates — — (6 ) 6 — Issuance of share capital — — 357 (357 ) — Issuance of CP Common Shares 9 — — — 9 Purchase of CP Common Shares (788 ) — — — (788 ) Repayment of long-term debt, excluding commercial paper — (11 ) (7 ) — (18 ) Net issuance of commercial paper — 176 — — 176 Advances from affiliates 788 — 14 (802 ) — Repayment of advances from affiliates — — (208 ) 208 — Other financing activities — (3 ) — — (3 ) Cash (used in) provided by financing activities (98 ) 55 47 (735 ) (731 ) Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents — (5 ) (13 ) — (18 ) Cash position Decrease in cash and cash equivalents — (455 ) (103 ) — (558 ) Cash and cash equivalents at beginning of period — 502 148 — 650 Cash and cash equivalents at end of period $ — $ 47 $ 45 $ — $ 92 Interim Condensed Consolidating Statements of Cash Flows For the six months ended June 30, 2015 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Cash provided by operating activities $ 115 $ 824 $ 416 $ (215 ) $ 1,140 Investing activities Additions to properties — (303 ) (315 ) — (618 ) Proceeds from sale of properties and other assets — 59 1 — 60 Advances to affiliates (500 ) (936 ) (729 ) 2,165 — Capital contributions to affiliates — (617 ) — 617 — Other — 14 (1 ) — 13 Cash used in investing activities (500 ) (1,783 ) (1,044 ) 2,782 (545 ) Financing activities Dividends paid (115 ) (115 ) (100 ) 215 (115 ) Issuance of share capital — — 617 (617 ) — Issuance of CP Common Shares 27 — — — 27 Purchase of CP Common Shares (1,072 ) — — — (1,072 ) Issuance of long-term debt, excluding commercial paper — 810 — — 810 Repayment of long-term debt, excluding commercial paper — (24 ) (43 ) — (67 ) Net repayment of commercial paper — (224 ) — — (224 ) Advances from affiliates 1,545 500 120 (2,165 ) — Cash provided by (used in) financing activities 385 947 594 (2,567 ) (641 ) Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents — (1 ) 6 — 5 Cash position Decrease in cash and cash equivalents — (13 ) (28 ) — (41 ) Cash and cash equivalents at beginning of period — 152 74 — 226 Cash and cash equivalents at end of period $ — $ 139 $ 46 $ — $ 185 |
Changes in Accumulated Other 30
Changes in Accumulated Other Comprehensive Loss ("AOCL") by Component - Changes in AOCL by Component (Details) - CAD CAD in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Changes in Accumulated Other Comprehensive Loss by Component [Roll Forward] | ||||
Beginning balance | CAD 4,796 | CAD 5,610 | ||
Ending balance | CAD 4,691 | CAD 5,251 | 4,691 | 5,251 |
Total [Member] | ||||
Changes in Accumulated Other Comprehensive Loss by Component [Roll Forward] | ||||
Beginning balance | (1,481) | (2,207) | (1,477) | (2,219) |
Other comprehensive income (loss) before reclassifications | (26) | 26 | (66) | (11) |
Amounts reclassified from accumulated other comprehensive loss | 36 | 48 | 72 | 97 |
Net current-period other comprehensive (loss) income | 10 | 74 | 6 | 86 |
Ending balance | (1,471) | (2,133) | (1,471) | (2,133) |
Foreign currency net of hedging activities [Member] | ||||
Changes in Accumulated Other Comprehensive Loss by Component [Roll Forward] | ||||
Beginning balance | 125 | 125 | 129 | 115 |
Other comprehensive income (loss) before reclassifications | (1) | 0 | (5) | 10 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | 0 |
Net current-period other comprehensive (loss) income | (1) | 0 | (5) | 10 |
Ending balance | 124 | 125 | 124 | 125 |
Derivatives and other [Member] | ||||
Changes in Accumulated Other Comprehensive Loss by Component [Roll Forward] | ||||
Beginning balance | (136) | (103) | (102) | (52) |
Other comprehensive income (loss) before reclassifications | (23) | 26 | (59) | (26) |
Amounts reclassified from accumulated other comprehensive loss | 2 | 0 | 4 | 1 |
Net current-period other comprehensive (loss) income | (21) | 26 | (55) | (25) |
Ending balance | (157) | (77) | (157) | (77) |
Pension and post-retirement defined benefit plans [Member] | ||||
Changes in Accumulated Other Comprehensive Loss by Component [Roll Forward] | ||||
Beginning balance | (1,470) | (2,229) | (1,504) | (2,282) |
Other comprehensive income (loss) before reclassifications | (2) | 0 | (2) | 5 |
Amounts reclassified from accumulated other comprehensive loss | 34 | 48 | 68 | 96 |
Net current-period other comprehensive (loss) income | 32 | 48 | 66 | 101 |
Ending balance | CAD (1,438) | CAD (2,181) | CAD (1,438) | CAD (2,181) |
Changes in Accumulated Other 31
Changes in Accumulated Other Comprehensive Loss ("AOCL") by Component - Amounts in Pension and Post-Retirement Defined Benefit Plans Reclassified from AOCL (Details) - CAD CAD in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Total before tax [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from AOCL | CAD 47 | CAD 65 | CAD 94 | CAD 131 |
Income tax recovery | (13) | (17) | (26) | (35) |
Net of income tax | 34 | 48 | 68 | 96 |
Amortization of prior service costs [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from AOCL | (1) | (2) | (3) | (3) |
Recognition of net actuarial loss [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from AOCL | CAD 48 | CAD 67 | CAD 97 | CAD 134 |
Gain on Sale of Properties - Ga
Gain on Sale of Properties - Gain on Sale of Arbutus Corridor (Details) - Arbutus Corridor [Member] - CAD CAD in Millions | 1 Months Ended | 3 Months Ended |
Mar. 31, 2016 | Mar. 31, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Proceeds from sale | CAD 55 | |
Gain on sale before tax | CAD 50 | |
Gain on sale after tax | CAD 43 |
Gain on Sale of Properties - 33
Gain on Sale of Properties - Gain on Settlement of Legal Proceedings Related to the Purchase and Sale of a Building (Details) - CAD CAD in Millions | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Discontinued Operations and Disposal Groups [Abstract] | ||
Amount of interest free loan | CAD 20 | |
Carrying value of purchase option | CAD 8 | |
Proceeds from sale of building | CAD 59 | |
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | 31 | |
Gain on sale of building, after tax | CAD 27 |
Other Income and Charges (Detai
Other Income and Charges (Details) - CAD CAD in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Other Income and Expenses [Abstract] | ||||
Foreign exchange loss on long-term debt | CAD (18) | CAD (10) | CAD (199) | CAD 54 |
Other foreign exchange (gains) losses | 0 | 0 | (7) | 6 |
Other | 9 | 5 | 16 | 8 |
Total other income and charges | CAD (9) | CAD (5) | CAD (190) | CAD 68 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Expense (Details) - CAD CAD in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Current income tax expense | CAD 27 | CAD 103 | CAD 104 | CAD 205 |
Deferred income tax expense | 90 | 74 | 183 | 106 |
Income tax expense | CAD 117 | CAD 177 | CAD 287 | CAD 311 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Estimated annual effective tax rate | 26.93% | 27.50% | 27.25% | 27.50% |
Effective tax rate | 26.40% | 31.30% | 24.86% | 30.51% |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share [Line Items] | ||||
Number of shares outstanding (shares) | 148,400,000 | 161,300,000 | 148,400,000 | 161,300,000 |
Stock Options [Member] | ||||
Earnings Per Share [Line Items] | ||||
Number of options excluded from the computation of diluted earnings per share (shares) | 440,009 | 175,068 | 443,000 | 87,976 |
Earnings Per Share - Number of
Earnings Per Share - Number of Shares Used in Earnings Per Share Calculations (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Weighted average basic shares outstanding (shares) | 151.7 | 163.7 | 152.3 | 164.3 |
Dilutive effect of weighted average number of stock options (shares) | 0.9 | 1.3 | 0.9 | 1.4 |
Weighted average diluted shares outstanding (shares) | 152.6 | 165 | 153.2 | 165.7 |
Debt - Revolving Credit Facilit
Debt - Revolving Credit Facility (Details) $ in Billions | Jun. 28, 2016USD ($) |
Revolving Credit Facility [Member] | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Current Borrowing Capacity | $ 2 |
Five Year Portion [Member] | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Current Borrowing Capacity | 1 |
One Year Plus One Year Term Out Portion [Member] | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Current Borrowing Capacity | $ 1 |
Debt - Commercial Paper Program
Debt - Commercial Paper Program (Details) $ in Millions | 3 Months Ended | |||
Jun. 30, 2016CAD | Jun. 30, 2016USD ($) | Jun. 28, 2016USD ($) | Dec. 31, 2015CAD | |
Cash and Cash Equivalents [Line Items] | ||||
Short-term Debt, Weighted Average Interest Rate | 0.67% | 0.67% | ||
Commercial Paper [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Line of Credit Facility, Borrowing Capacity, Description | 1 | |||
Long-term Debt, Current Maturities | CAD 174,000,000 | $ 135 | CAD 0 | |
Debt instrument maturity | less than 90 days | |||
One Year Plus One Year Term Out Portion [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Line of Credit Facility, Current Borrowing Capacity | $ 1,000 |
Shareholders Equity - Narrative
Shareholders Equity - Narrative (Details) shares in Thousands | Apr. 20, 2016shares |
Normal Course Issuer Bid (NCIB) [Member] | |
Repurchase, for cancellation, outstanding Common Shares (shares) | 6,910 |
Shareholders' Equity - Activiti
Shareholders' Equity - Activities Under Shares Repurchase Program (Detail) - CAD CAD / shares in Units, CAD in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Stockholders' Equity [Abstract] | ||||
Stock Repurchased and Retired During Period, Shares | 5,127,800 | 3,058,900 | 5,127,800 | 5,233,688 |
Weighted-average price per share (in dollars per share) | CAD 169.13 | CAD 193.10 | CAD 169.13 | CAD 206.40 |
Payments for Repurchase of Common Stock | CAD 867 | CAD 590 | CAD 867 | CAD 1,080 |
Financial Instruments (Details)
Financial Instruments (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016CAD | Jun. 30, 2015CAD | Jun. 30, 2016CAD | Jun. 30, 2015CAD | Dec. 31, 2015CAD | Dec. 31, 2014USD ($) | |
Schedule of Investments [Line Items] | ||||||
Fair value | CAD 10,335,000,000 | CAD 10,335,000,000 | CAD 9,750,000,000 | |||
Gain (loss) on effective portion of derivative instrument designated as hedge | CAD 34,000,000 | 82,000,000 | CAD 37,000,000 | |||
Derivative Instruments, Gain Recognized in Other Comprehensive Income (Loss), Effective Portion | 32,000,000 | 84,000,000 | 39,000,000 | |||
Derivative losses amortized to net interest expense | (11,000,000) | |||||
Accounts Payable and Accrued Liabilities [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Derivative, Net Liability Position, Aggregate Fair Value | 144,000,000 | 144,000,000 | 60,000,000 | |||
Net Interest Expense [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Derivative Instruments, Loss Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing | 0 | 0 | 2,000,000 | 2,000,000 | ||
Amortized Net Interest Expensed [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Derivative Instruments, Gain Recognized in Other Comprehensive Income (Loss), Effective Portion | 3,000,000 | 1,000,000 | 5,000,000 | 2,000,000 | ||
Forward Starting Interest Rate Swaps [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Floating-to-fixed interest rate swap agreements | $ | $ 700 | |||||
Net Investment Hedging [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Gain (loss) on effective portion of derivative instrument designated as hedge | 24,000,000 | CAD (58,000,000) | 332,000,000 | CAD (298,000,000) | ||
Ineffectiveness | 0 | |||||
Reported Value Measurement [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Carrying value | CAD 8,581,000,000 | CAD 8,581,000,000 | CAD 8,957,000,000 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - CAD CAD / shares in Units, CAD in Millions | Apr. 20, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||||||
Stock-based compensation expense | CAD 1 | CAD 5 | CAD 15 | CAD 24 | ||||
Number of options issued (shares) | 402,331 | |||||||
Weighted average of options issued (in CAD per share) | CAD 38.98 | |||||||
Expected quarterly dividends per share (in CAD per share) | CAD 0.50 | 1.40 | ||||||
Stock Options [Member] | ||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||||||
Weighted average of options issued (in CAD per share) | CAD 165.55 | |||||||
Expiration period | 10 years | |||||||
Grant price | CAD 16 | |||||||
Stock Options [Member] | Minimum [Member] | ||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||||||
Vesting period | 12 months | |||||||
Stock Options [Member] | Maximum [Member] | ||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||||||
Vesting period | 48 months | |||||||
Performance Share Units [Member] | ||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||||||
Units issued (shares) | 147,157 | |||||||
Grant date fair value | CAD 24 | |||||||
PSU payout threshold | 200.00% | |||||||
PSU meeting threshold requirements (shares) | 300,095 | |||||||
PSU payout | CAD 31 | CAD 79 | ||||||
Number of PSUs exercised (shares) | 83,563 | 217,179 | ||||||
Number of trading days | 30 days | |||||||
Deferred Share Units [Member] | ||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||||||
Vesting period | 48 months | |||||||
Company granted DSUs (shares) | 25,050 | |||||||
Grant date fair value | CAD 4 | |||||||
Annual [Member] | ||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||||||
Expected quarterly dividends per share (in CAD per share) | CAD 2 |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted-Average Fair Value Assumptions (Details) - CAD / shares | Apr. 20, 2016 | Jun. 30, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average grant date fair value of options granted during the year (in CAD per share) | CAD 38.98 | |
Expected option life (years) | 5 years 3 months | |
Risk-free interest rate | 1.21% | |
Expected stock price volatility | 26.58% | |
Expected annual dividends per share (in CAD per share) | CAD 0.50 | CAD 1.40 |
Estimated forfeiture rate | 2.00% | |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average grant date fair value of options granted during the year (in CAD per share) | CAD 165.55 |
Pensions and Other Benefits - N
Pensions and Other Benefits - Narrative (Details) - CAD CAD in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contributions made by the company | CAD 14 | CAD 20 | CAD 34 | CAD 41 |
Pensions and Other Benefits -47
Pensions and Other Benefits - Net Periodic Benefit Cost for DB Pension Plans and Other Benefits (Details) - CAD CAD in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Pensions [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Current service cost (benefits earned by employees in the period) | CAD 26 | CAD 32 | CAD 53 | CAD 64 |
Interest cost on benefit obligation | 116 | 116 | 233 | 231 |
Expected return on fund assets | (211) | (212) | (423) | (413) |
Recognized net actuarial loss | 47 | 66 | 95 | 132 |
Amortization of prior service costs | (1) | (2) | (3) | (3) |
Net periodic benefit (recovery) cost | (23) | 0 | (45) | 11 |
Other benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Current service cost (benefits earned by employees in the period) | 3 | 3 | 6 | 6 |
Interest cost on benefit obligation | 5 | 5 | 10 | 10 |
Expected return on fund assets | 0 | 0 | 0 | 0 |
Recognized net actuarial loss | 1 | 1 | 2 | 2 |
Amortization of prior service costs | 0 | 0 | 0 | 0 |
Net periodic benefit (recovery) cost | CAD 9 | CAD 9 | CAD 18 | CAD 18 |
Contingencies - Legal Proceedin
Contingencies - Legal Proceedings (Details) CAD in Millions | Jul. 11, 2016CADclaim | Jul. 05, 2016CAD | Jul. 04, 2016CADclaim | Apr. 12, 2016CAD | Jul. 06, 2015CAD | Jun. 30, 2016CADclaim |
Claimed loss or damages as a result of derailment [Member] | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Settlement amounts | CAD 440 | |||||
Number of notices for claims of damage to cargo | claim | 2 | |||||
Province of Quebec [Member] | Lac-Megantic Rail Accident [Member] | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Value of damages sought | CAD 409 | |||||
The “WD Trustee” [Member] | Lac-Megantic Rail Accident [Member] | Lost Lading Loss Recovery [Member] | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Value of damages sought | CAD 6 | |||||
Subsequent Event [Member] | Quebec Minister of Sustainable Development and Environment [Member] | Lac-Megantic Rail Accident [Member] | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Value of damages sought | CAD 95 | |||||
Subsequent Event [Member] | Initial 8 Insurers [Member] | Lac-Megantic Rail Accident [Member] | Subrogated Insurance Claim [Member] | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Value of damages sought | CAD 16 | |||||
Number of notices for claims of damage to cargo | claim | 8 | |||||
Subsequent Event [Member] | Additional 2 Insurers [Member] | Lac-Megantic Rail Accident [Member] | Subrogated Insurance Claim [Member] | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Value of damages sought | CAD 3 | |||||
Number of notices for claims of damage to cargo | claim | 2 | |||||
World Fuel Entities [Member] | Lac-Megantic Rail Accident [Member] | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Settlement amounts | 110 | |||||
Irving Oil [Member] | MMA Bankruptcy Estate [Member] | Lac-Megantic Rail Accident [Member] | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Settlement amounts | CAD 60 |
Contingencies - Environmental L
Contingencies - Environmental Liabilities (Details) - CAD CAD in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Site Contingency [Line Items] | |||||
Total amount provided for provisions for environmental remediation costs | CAD 86 | CAD 86 | CAD 93 | ||
Term for expected payments to be made | 10 years | ||||
Purchased Services and Other [Member] | |||||
Site Contingency [Line Items] | |||||
Environmental remediation expense | CAD 1 | CAD 3 | CAD 2 | CAD 6 |
Condensed Consolidating Finan50
Condensed Consolidating Financial Information - Interim Condensed Consolidating Statements of Income (Details) - CAD CAD in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenues | ||||
Freight | CAD 1,406 | CAD 1,610 | CAD 2,954 | CAD 3,240 |
Non-freight | 44 | 41 | 87 | 76 |
Total revenues | 1,450 | 1,651 | 3,041 | 3,316 |
Operating expenses | ||||
Compensation and benefits | 284 | 308 | 613 | 686 |
Fuel | 131 | 185 | 256 | 380 |
Materials | 38 | 45 | 94 | 97 |
Equipment rents | 44 | 46 | 89 | 88 |
Depreciation and amortization | 161 | 145 | 323 | 291 |
Purchased services and other | 241 | 276 | 462 | 516 |
Total operating expenses | 899 | 1,005 | 1,837 | 2,058 |
Operating income | 551 | 646 | 1,204 | 1,258 |
Less: | ||||
Other income and charges | (9) | (5) | (190) | 68 |
Net interest (income) expense | 115 | 84 | 239 | 169 |
Income before income tax expense | 445 | 567 | 1,155 | 1,021 |
Less: Income tax (recovery) expense | 117 | 177 | 287 | 311 |
Add: Equity in net earnings of subsidiaries | 0 | 0 | 0 | 0 |
Net income | 328 | 390 | 868 | 710 |
Consolidating Adjustments and Eliminations [Member] | ||||
Revenues | ||||
Freight | 0 | 0 | 0 | 0 |
Non-freight | (87) | (83) | (173) | (166) |
Total revenues | (87) | (83) | (173) | (166) |
Operating expenses | ||||
Compensation and benefits | 1 | 0 | 3 | 0 |
Fuel | 0 | 0 | 0 | 0 |
Materials | 3 | 0 | 11 | 0 |
Equipment rents | 0 | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Purchased services and other | (91) | (83) | (187) | (166) |
Total operating expenses | (87) | (83) | (173) | (166) |
Operating income | 0 | 0 | 0 | 0 |
Less: | ||||
Other income and charges | 0 | 0 | 0 | 0 |
Net interest (income) expense | 0 | 0 | 0 | 0 |
Income before income tax expense | 0 | 0 | 0 | 0 |
Less: Income tax (recovery) expense | 0 | 0 | 0 | 0 |
Add: Equity in net earnings of subsidiaries | (449) | (509) | (1,020) | (1,024) |
Net income | (449) | (509) | (1,020) | (1,024) |
CPRL (Parent Guarantor) [Member] | ||||
Revenues | ||||
Freight | 0 | 0 | 0 | 0 |
Non-freight | 0 | 0 | 0 | 0 |
Total revenues | 0 | 0 | 0 | 0 |
Operating expenses | ||||
Compensation and benefits | 0 | 0 | 0 | 0 |
Fuel | 0 | 0 | 0 | 0 |
Materials | 0 | 0 | 0 | 0 |
Equipment rents | 0 | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Purchased services and other | 0 | 0 | 0 | 0 |
Total operating expenses | 0 | 0 | 0 | 0 |
Operating income | 0 | 0 | 0 | 0 |
Less: | ||||
Other income and charges | (4) | (3) | (73) | 15 |
Net interest (income) expense | 10 | 0 | 9 | 0 |
Income before income tax expense | (6) | 3 | 64 | (15) |
Less: Income tax (recovery) expense | (6) | 2 | 3 | (2) |
Add: Equity in net earnings of subsidiaries | 328 | 389 | 807 | 723 |
Net income | 328 | 390 | 868 | 710 |
CPRC (Subsidiary Issuer) [Member] | ||||
Revenues | ||||
Freight | 1,007 | 1,131 | 2,104 | 2,250 |
Non-freight | 33 | 34 | 66 | 63 |
Total revenues | 1,040 | 1,165 | 2,170 | 2,313 |
Operating expenses | ||||
Compensation and benefits | 181 | 198 | 382 | 460 |
Fuel | 103 | 134 | 206 | 295 |
Materials | 27 | 35 | 65 | 78 |
Equipment rents | 53 | 52 | 107 | 88 |
Depreciation and amortization | 107 | 102 | 214 | 204 |
Purchased services and other | 193 | 192 | 329 | 334 |
Total operating expenses | 664 | 713 | 1,303 | 1,459 |
Operating income | 376 | 452 | 867 | 854 |
Less: | ||||
Other income and charges | (12) | (8) | (150) | 78 |
Net interest (income) expense | 111 | 98 | 242 | 194 |
Income before income tax expense | 277 | 362 | 775 | 582 |
Less: Income tax (recovery) expense | 70 | 93 | 181 | 160 |
Add: Equity in net earnings of subsidiaries | 121 | 120 | 213 | 301 |
Net income | 328 | 389 | 807 | 723 |
Non-Guarantor Subsidiaries [Member] | ||||
Revenues | ||||
Freight | 399 | 479 | 850 | 990 |
Non-freight | 98 | 90 | 194 | 179 |
Total revenues | 497 | 569 | 1,044 | 1,169 |
Operating expenses | ||||
Compensation and benefits | 102 | 110 | 228 | 226 |
Fuel | 28 | 51 | 50 | 85 |
Materials | 8 | 10 | 18 | 19 |
Equipment rents | (9) | (6) | (18) | 0 |
Depreciation and amortization | 54 | 43 | 109 | 87 |
Purchased services and other | 139 | 167 | 320 | 348 |
Total operating expenses | 322 | 375 | 707 | 765 |
Operating income | 175 | 194 | 337 | 404 |
Less: | ||||
Other income and charges | 7 | 6 | 33 | (25) |
Net interest (income) expense | (6) | (14) | (12) | (25) |
Income before income tax expense | 174 | 202 | 316 | 454 |
Less: Income tax (recovery) expense | 53 | 82 | 103 | 153 |
Add: Equity in net earnings of subsidiaries | 0 | 0 | 0 | 0 |
Net income | CAD 121 | CAD 120 | CAD 213 | CAD 301 |
Condensed Consolidating Finan51
Condensed Consolidating Financial Information - Interim Condensed Consolidating Statements of Comprehensive Income (Details) - CAD CAD in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Nonoperating Income (Expense) | CAD 9 | CAD 5 | CAD 190 | CAD (68) |
Net income | 328 | 390 | 868 | 710 |
Net gain (loss) in foreign currency translation adjustments, net of hedging activities | 3 | 7 | 40 | (30) |
Change in derivatives designated as cash flow hedges | (29) | 36 | (76) | (33) |
Change in pension and post-retirement defined benefit plans | 43 | 66 | 90 | 138 |
Other comprehensive income before income taxes | 17 | 109 | 54 | 75 |
Income tax expense on above items | (7) | (35) | (48) | 11 |
Equity accounted investments | 0 | 0 | 0 | 0 |
Other comprehensive (loss) income | 10 | 74 | 6 | 86 |
Comprehensive income | 338 | 464 | 874 | 796 |
Consolidating Adjustments and Eliminations [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Nonoperating Income (Expense) | 0 | 0 | 0 | 0 |
Net income | (449) | (509) | (1,020) | (1,024) |
Net gain (loss) in foreign currency translation adjustments, net of hedging activities | 0 | 0 | 0 | 0 |
Change in derivatives designated as cash flow hedges | 0 | 0 | 0 | 0 |
Change in pension and post-retirement defined benefit plans | 0 | 0 | 0 | 0 |
Other comprehensive income before income taxes | 0 | 0 | 0 | 0 |
Income tax expense on above items | 0 | 0 | 0 | 0 |
Equity accounted investments | 7 | (44) | 282 | (356) |
Other comprehensive (loss) income | 7 | (44) | 282 | (356) |
Comprehensive income | (442) | (553) | (738) | (1,380) |
CPRL (Parent Guarantor) [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Nonoperating Income (Expense) | 4 | 3 | 73 | (15) |
Net income | 328 | 390 | 868 | 710 |
Net gain (loss) in foreign currency translation adjustments, net of hedging activities | 0 | 0 | 0 | 0 |
Change in derivatives designated as cash flow hedges | 0 | 0 | 0 | 0 |
Change in pension and post-retirement defined benefit plans | 0 | 0 | 0 | 0 |
Other comprehensive income before income taxes | 0 | 0 | 0 | 0 |
Income tax expense on above items | 0 | 0 | 0 | 0 |
Equity accounted investments | 10 | 74 | 6 | 86 |
Other comprehensive (loss) income | 10 | 74 | 6 | 86 |
Comprehensive income | 338 | 464 | 874 | 796 |
CPRC (Subsidiary Issuer) [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Nonoperating Income (Expense) | 12 | 8 | 150 | (78) |
Net income | 328 | 389 | 807 | 723 |
Net gain (loss) in foreign currency translation adjustments, net of hedging activities | 20 | 59 | 330 | (298) |
Change in derivatives designated as cash flow hedges | (29) | 36 | (76) | (33) |
Change in pension and post-retirement defined benefit plans | 41 | 64 | 86 | 134 |
Other comprehensive income before income taxes | 32 | 159 | 340 | (197) |
Income tax expense on above items | (5) | (55) | (46) | 13 |
Equity accounted investments | (17) | (30) | (288) | 270 |
Other comprehensive (loss) income | 10 | 74 | 6 | 86 |
Comprehensive income | 338 | 463 | 813 | 809 |
Non-Guarantor Subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Nonoperating Income (Expense) | (7) | (6) | (33) | 25 |
Net income | 121 | 120 | 213 | 301 |
Net gain (loss) in foreign currency translation adjustments, net of hedging activities | (17) | (52) | (290) | 268 |
Change in derivatives designated as cash flow hedges | 0 | 0 | 0 | 0 |
Change in pension and post-retirement defined benefit plans | 2 | 2 | 4 | 4 |
Other comprehensive income before income taxes | (15) | (50) | (286) | 272 |
Income tax expense on above items | (2) | 20 | (2) | (2) |
Equity accounted investments | 0 | 0 | 0 | 0 |
Other comprehensive (loss) income | (17) | (30) | (288) | 270 |
Comprehensive income | CAD 104 | CAD 90 | CAD (75) | CAD 571 |
Condensed Consolidating Finan52
Condensed Consolidating Financial Information - Interim Condensed Consolidating Balance Sheets (Details) - CAD CAD in Millions | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Current assets | ||||||
Cash and cash equivalents | CAD 92 | CAD 571 | CAD 650 | CAD 185 | CAD 184 | CAD 226 |
Accounts receivable, net | 577 | 645 | ||||
Accounts receivable, inter-company | 0 | 0 | ||||
Short-term advances to affiliates | 0 | 0 | ||||
Materials and supplies | 195 | 188 | ||||
Other current assets | 59 | 54 | ||||
Total current assets | 923 | 1,537 | ||||
Long-term advances to affiliates | 0 | 0 | ||||
Investments | 155 | 152 | ||||
Investments in subsidiaries | 0 | 0 | ||||
Properties | 16,160 | 16,273 | ||||
Goodwill and intangible assets | 195 | 211 | ||||
Pension asset | 1,565 | 1,401 | ||||
Other assets | 70 | 63 | ||||
Deferred income taxes | 0 | 0 | ||||
Total assets | 19,068 | 19,637 | ||||
Current liabilities | ||||||
Accounts payable and accrued liabilities | 1,247 | 1,417 | ||||
Accounts payable, inter-company | 0 | 0 | ||||
Short-term advances from affiliates | 0 | 0 | ||||
Long-term debt maturing within one year | 198 | 30 | ||||
Total current liabilities | 1,445 | 1,447 | ||||
Pension and other benefit liabilities | 751 | 758 | ||||
Long-term advances from affiliates | 0 | 0 | ||||
Other long-term liabilities | 286 | 318 | ||||
Long-term debt | 8,383 | 8,927 | ||||
Deferred income taxes | 3,512 | 3,391 | ||||
Total liabilities | 14,377 | 14,841 | ||||
Shareholders’ equity | ||||||
Share capital | 2,000 | 2,058 | ||||
Additional paid-in capital | 49 | 43 | ||||
Accumulated other comprehensive (loss) income | (1,471) | (1,477) | ||||
Retained earnings | 4,113 | 4,172 | ||||
Total Shareholders' equity | 4,691 | 4,796 | 5,251 | 5,610 | ||
Total liabilities and shareholders’ equity | 19,068 | 19,637 | ||||
Consolidating Adjustments and Eliminations [Member] | ||||||
Current assets | ||||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | ||||
Accounts receivable, inter-company | (317) | (429) | ||||
Short-term advances to affiliates | (4,228) | (3,558) | ||||
Materials and supplies | 0 | 0 | ||||
Other current assets | 0 | 0 | ||||
Total current assets | (4,545) | (3,987) | ||||
Long-term advances to affiliates | (589) | (1,084) | ||||
Investments | 0 | 0 | ||||
Investments in subsidiaries | (17,970) | (17,350) | ||||
Properties | 0 | 0 | ||||
Goodwill and intangible assets | 0 | 0 | ||||
Pension asset | 0 | 0 | ||||
Other assets | 0 | 0 | ||||
Deferred income taxes | (14) | (25) | ||||
Total assets | (23,118) | (22,446) | ||||
Current liabilities | ||||||
Accounts payable and accrued liabilities | 0 | 0 | ||||
Accounts payable, inter-company | (317) | (429) | ||||
Short-term advances from affiliates | (4,228) | (3,558) | ||||
Long-term debt maturing within one year | 0 | 0 | ||||
Total current liabilities | (4,545) | (3,987) | ||||
Pension and other benefit liabilities | 0 | 0 | ||||
Long-term advances from affiliates | (589) | (1,084) | ||||
Other long-term liabilities | 0 | 0 | ||||
Long-term debt | 0 | 0 | ||||
Deferred income taxes | (14) | (25) | ||||
Total liabilities | (5,148) | (5,096) | ||||
Shareholders’ equity | ||||||
Share capital | (6,845) | (6,502) | ||||
Additional paid-in capital | (2,048) | (2,181) | ||||
Accumulated other comprehensive (loss) income | 923 | 637 | ||||
Retained earnings | (10,000) | (9,304) | ||||
Total Shareholders' equity | (17,970) | (17,350) | ||||
Total liabilities and shareholders’ equity | (23,118) | (22,446) | ||||
CPRL (Parent Guarantor) [Member] | ||||||
Current assets | ||||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | ||||
Accounts receivable, inter-company | 78 | 59 | ||||
Short-term advances to affiliates | 0 | 0 | ||||
Materials and supplies | 0 | 0 | ||||
Other current assets | 0 | 0 | ||||
Total current assets | 78 | 59 | ||||
Long-term advances to affiliates | 501 | 501 | ||||
Investments | 0 | 0 | ||||
Investments in subsidiaries | 8,217 | 7,518 | ||||
Properties | 0 | 0 | ||||
Goodwill and intangible assets | 0 | 0 | ||||
Pension asset | 0 | 0 | ||||
Other assets | 0 | 0 | ||||
Deferred income taxes | 14 | 25 | ||||
Total assets | 8,810 | 8,103 | ||||
Current liabilities | ||||||
Accounts payable and accrued liabilities | 156 | 54 | ||||
Accounts payable, inter-company | 3 | 0 | ||||
Short-term advances from affiliates | 3,960 | 3,253 | ||||
Long-term debt maturing within one year | 0 | 0 | ||||
Total current liabilities | 4,119 | 3,307 | ||||
Pension and other benefit liabilities | 0 | 0 | ||||
Long-term advances from affiliates | 0 | 0 | ||||
Other long-term liabilities | 0 | 0 | ||||
Long-term debt | 0 | 0 | ||||
Deferred income taxes | 0 | 0 | ||||
Total liabilities | 4,119 | 3,307 | ||||
Shareholders’ equity | ||||||
Share capital | 2,000 | 2,058 | ||||
Additional paid-in capital | 49 | 43 | ||||
Accumulated other comprehensive (loss) income | (1,471) | (1,477) | ||||
Retained earnings | 4,113 | 4,172 | ||||
Total Shareholders' equity | 4,691 | 4,796 | ||||
Total liabilities and shareholders’ equity | 8,810 | 8,103 | ||||
CPRC (Subsidiary Issuer) [Member] | ||||||
Current assets | ||||||
Cash and cash equivalents | 47 | 376 | 502 | 139 | 153 | 152 |
Accounts receivable, net | 406 | 452 | ||||
Accounts receivable, inter-company | 80 | 105 | ||||
Short-term advances to affiliates | 470 | 75 | ||||
Materials and supplies | 164 | 154 | ||||
Other current assets | 49 | 37 | ||||
Total current assets | 1,216 | 1,325 | ||||
Long-term advances to affiliates | 0 | 207 | ||||
Investments | 26 | 22 | ||||
Investments in subsidiaries | 9,753 | 9,832 | ||||
Properties | 8,560 | 8,481 | ||||
Goodwill and intangible assets | 0 | 3 | ||||
Pension asset | 1,565 | 1,401 | ||||
Other assets | 50 | 55 | ||||
Deferred income taxes | 0 | 0 | ||||
Total assets | 21,170 | 21,326 | ||||
Current liabilities | ||||||
Accounts payable and accrued liabilities | 804 | 1,122 | ||||
Accounts payable, inter-company | 235 | 325 | ||||
Short-term advances from affiliates | 247 | 230 | ||||
Long-term debt maturing within one year | 198 | 24 | ||||
Total current liabilities | 1,484 | 1,701 | ||||
Pension and other benefit liabilities | 675 | 676 | ||||
Long-term advances from affiliates | 589 | 877 | ||||
Other long-term liabilities | 159 | 186 | ||||
Long-term debt | 8,323 | 8,863 | ||||
Deferred income taxes | 1,723 | 1,505 | ||||
Total liabilities | 12,953 | 13,808 | ||||
Shareholders’ equity | ||||||
Share capital | 1,037 | 1,037 | ||||
Additional paid-in capital | 1,630 | 1,568 | ||||
Accumulated other comprehensive (loss) income | (1,471) | (1,477) | ||||
Retained earnings | 7,021 | 6,390 | ||||
Total Shareholders' equity | 8,217 | 7,518 | ||||
Total liabilities and shareholders’ equity | 21,170 | 21,326 | ||||
Non-Guarantor Subsidiaries [Member] | ||||||
Current assets | ||||||
Cash and cash equivalents | 45 | CAD 195 | 148 | CAD 46 | CAD 31 | CAD 74 |
Accounts receivable, net | 171 | 193 | ||||
Accounts receivable, inter-company | 159 | 265 | ||||
Short-term advances to affiliates | 3,758 | 3,483 | ||||
Materials and supplies | 31 | 34 | ||||
Other current assets | 10 | 17 | ||||
Total current assets | 4,174 | 4,140 | ||||
Long-term advances to affiliates | 88 | 376 | ||||
Investments | 129 | 130 | ||||
Investments in subsidiaries | 0 | 0 | ||||
Properties | 7,600 | 7,792 | ||||
Goodwill and intangible assets | 195 | 208 | ||||
Pension asset | 0 | 0 | ||||
Other assets | 20 | 8 | ||||
Deferred income taxes | 0 | 0 | ||||
Total assets | 12,206 | 12,654 | ||||
Current liabilities | ||||||
Accounts payable and accrued liabilities | 287 | 241 | ||||
Accounts payable, inter-company | 79 | 104 | ||||
Short-term advances from affiliates | 21 | 75 | ||||
Long-term debt maturing within one year | 0 | 6 | ||||
Total current liabilities | 387 | 426 | ||||
Pension and other benefit liabilities | 76 | 82 | ||||
Long-term advances from affiliates | 0 | 207 | ||||
Other long-term liabilities | 127 | 132 | ||||
Long-term debt | 60 | 64 | ||||
Deferred income taxes | 1,803 | 1,911 | ||||
Total liabilities | 2,453 | 2,822 | ||||
Shareholders’ equity | ||||||
Share capital | 5,808 | 5,465 | ||||
Additional paid-in capital | 418 | 613 | ||||
Accumulated other comprehensive (loss) income | 548 | 840 | ||||
Retained earnings | 2,979 | 2,914 | ||||
Total Shareholders' equity | 9,753 | 9,832 | ||||
Total liabilities and shareholders’ equity | CAD 12,206 | CAD 12,654 |
Condensed Consolidating Finan53
Condensed Consolidating Financial Information - Interim Condensed Consolidating Statements of Cash Flows (Details) - CAD CAD in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Cash provided by operating activities | CAD 512 | CAD 585 | CAD 730 | CAD 1,140 |
Investing activities | ||||
Additions to properties | (330) | (355) | (608) | (618) |
Proceeds from sale of properties and other assets | 11 | 8 | 71 | 60 |
Advances to affiliates | 0 | 0 | 0 | 0 |
Proceeds from Collection of Advance to Affiliate | 0 | 0 | ||
Capital contributions to affiliates | 0 | 0 | 0 | 0 |
Proceeds from (Repurchase of) Equity | 0 | |||
Other | (2) | (7) | (2) | 13 |
Cash used in investing activities | (321) | (354) | (539) | (545) |
Financing activities | ||||
Dividends paid | (53) | (57) | (107) | (115) |
Proceeds from Equity Method Investment, Dividends or Distributions, Return of Capital | 0 | |||
Issuance of share capital | 0 | 0 | 0 | 0 |
Purchase of CP Common Shares | (788) | (543) | (788) | (1,072) |
Proceeds from Issuance of Long-term Debt | 810 | |||
Issuance of long-term debt, excluding commercial paper | 0 | 0 | 0 | 810 |
Repayment of long-term debt, excluding commercial paper | (7) | (9) | (18) | (67) |
Proceeds from Contributions from (Payments of Distributions to) Affiliates | 0 | 0 | 0 | 0 |
Repayment Of Advances From Affiliates | 0 | 0 | ||
Other | (1) | 0 | (3) | 0 |
Net repayment of commercial paper | 176 | 369 | 176 | (224) |
Cash used in financing activities | (669) | (229) | (731) | (641) |
Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents | (1) | (1) | (18) | 5 |
Cash position | ||||
Increase (decrease) in cash and cash equivalents | (479) | 1 | (558) | (41) |
Cash and cash equivalents at beginning of period | 571 | 184 | 650 | 226 |
Cash and cash equivalents at end of period | 92 | 185 | 92 | 185 |
Issuance of CP Common Shares | 4 | 11 | 9 | 27 |
Consolidating Adjustments and Eliminations [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash provided by operating activities | (156) | (142) | (210) | (215) |
Investing activities | ||||
Additions to properties | 0 | 0 | 0 | 0 |
Proceeds from sale of properties and other assets | 0 | 0 | 0 | 0 |
Advances to affiliates | 767 | 1,633 | 802 | 2,165 |
Proceeds from Collection of Advance to Affiliate | (208) | (208) | ||
Capital contributions to affiliates | 348 | 500 | 357 | 617 |
Proceeds from (Repurchase of) Equity | (6) | |||
Other | 0 | 0 | 0 | 0 |
Cash used in investing activities | 907 | 2,133 | 945 | 2,782 |
Financing activities | ||||
Dividends paid | 156 | 142 | 210 | 215 |
Proceeds from Equity Method Investment, Dividends or Distributions, Return of Capital | 6 | |||
Issuance of share capital | (348) | (500) | (357) | (617) |
Purchase of CP Common Shares | 0 | 0 | 0 | 0 |
Proceeds from Issuance of Long-term Debt | 0 | |||
Repayment of long-term debt, excluding commercial paper | 0 | 0 | 0 | 0 |
Proceeds from Contributions from (Payments of Distributions to) Affiliates | (767) | (1,633) | (802) | (2,165) |
Repayment Of Advances From Affiliates | 208 | 208 | ||
Other | 0 | 0 | ||
Net repayment of commercial paper | 0 | 0 | 0 | 0 |
Cash used in financing activities | (751) | (1,991) | (735) | (2,567) |
Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents | 0 | 0 | 0 | 0 |
Cash position | ||||
Increase (decrease) in cash and cash equivalents | 0 | 0 | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 | 0 | 0 |
Issuance of CP Common Shares | 0 | 0 | 0 | 0 |
CPRL (Parent Guarantor) [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash provided by operating activities | 75 | 59 | 98 | 115 |
Investing activities | ||||
Additions to properties | 0 | 0 | 0 | 0 |
Proceeds from sale of properties and other assets | 0 | 0 | 0 | 0 |
Advances to affiliates | 0 | (500) | 0 | (500) |
Proceeds from Collection of Advance to Affiliate | 0 | 0 | ||
Capital contributions to affiliates | 0 | 0 | 0 | 0 |
Proceeds from (Repurchase of) Equity | 0 | |||
Other | 0 | 0 | 0 | 0 |
Cash used in investing activities | 0 | (500) | 0 | (500) |
Financing activities | ||||
Dividends paid | (53) | (57) | (107) | (115) |
Proceeds from Equity Method Investment, Dividends or Distributions, Return of Capital | 0 | |||
Issuance of share capital | 0 | 0 | 0 | 0 |
Purchase of CP Common Shares | (788) | (543) | (788) | (1,072) |
Proceeds from Issuance of Long-term Debt | 0 | |||
Repayment of long-term debt, excluding commercial paper | 0 | 0 | 0 | 0 |
Proceeds from Contributions from (Payments of Distributions to) Affiliates | 762 | 1,030 | 788 | 1,545 |
Repayment Of Advances From Affiliates | 0 | 0 | ||
Other | 0 | 0 | ||
Net repayment of commercial paper | 0 | 0 | 0 | 0 |
Cash used in financing activities | (75) | 441 | (98) | 385 |
Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents | 0 | 0 | 0 | 0 |
Cash position | ||||
Increase (decrease) in cash and cash equivalents | 0 | 0 | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 | 0 | 0 |
Issuance of CP Common Shares | 4 | 11 | 9 | 27 |
CPRC (Subsidiary Issuer) [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash provided by operating activities | 374 | 525 | 425 | 824 |
Investing activities | ||||
Additions to properties | (206) | (210) | (338) | (303) |
Proceeds from sale of properties and other assets | 11 | 8 | 68 | 59 |
Advances to affiliates | (482) | (633) | (517) | (936) |
Proceeds from Collection of Advance to Affiliate | 208 | 208 | ||
Capital contributions to affiliates | (348) | (500) | (357) | (617) |
Proceeds from (Repurchase of) Equity | 6 | |||
Other | 0 | (6) | 0 | 14 |
Cash used in investing activities | (817) | (1,341) | (930) | (1,783) |
Financing activities | ||||
Dividends paid | (53) | (57) | (107) | (115) |
Proceeds from Equity Method Investment, Dividends or Distributions, Return of Capital | 0 | |||
Issuance of share capital | 0 | 0 | 0 | 0 |
Purchase of CP Common Shares | 0 | 0 | 0 | 0 |
Proceeds from Issuance of Long-term Debt | 810 | |||
Repayment of long-term debt, excluding commercial paper | (7) | (9) | (11) | (24) |
Proceeds from Contributions from (Payments of Distributions to) Affiliates | 0 | 500 | 0 | 500 |
Repayment Of Advances From Affiliates | 0 | 0 | ||
Other | (1) | (3) | ||
Net repayment of commercial paper | 176 | 369 | 176 | (224) |
Cash used in financing activities | 115 | 803 | 55 | 947 |
Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents | (1) | (1) | (5) | (1) |
Cash position | ||||
Increase (decrease) in cash and cash equivalents | (329) | (14) | (455) | (13) |
Cash and cash equivalents at beginning of period | 376 | 153 | 502 | 152 |
Cash and cash equivalents at end of period | 47 | 139 | 47 | 139 |
Issuance of CP Common Shares | 0 | 0 | 0 | 0 |
Non-Guarantor Subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash provided by operating activities | 219 | 143 | 417 | 416 |
Investing activities | ||||
Additions to properties | (124) | (145) | (270) | (315) |
Proceeds from sale of properties and other assets | 0 | 0 | 3 | 1 |
Advances to affiliates | (285) | (500) | (285) | (729) |
Proceeds from Collection of Advance to Affiliate | 0 | 0 | ||
Capital contributions to affiliates | 0 | 0 | 0 | 0 |
Proceeds from (Repurchase of) Equity | 0 | |||
Other | (2) | (1) | (2) | (1) |
Cash used in investing activities | (411) | (646) | (554) | (1,044) |
Financing activities | ||||
Dividends paid | (103) | (85) | (103) | (100) |
Proceeds from Equity Method Investment, Dividends or Distributions, Return of Capital | (6) | |||
Issuance of share capital | 348 | 500 | 357 | 617 |
Purchase of CP Common Shares | 0 | 0 | 0 | 0 |
Proceeds from Issuance of Long-term Debt | 0 | |||
Repayment of long-term debt, excluding commercial paper | 0 | 0 | (7) | (43) |
Proceeds from Contributions from (Payments of Distributions to) Affiliates | 5 | 103 | 14 | 120 |
Repayment Of Advances From Affiliates | (208) | (208) | ||
Other | 0 | 0 | ||
Net repayment of commercial paper | 0 | 0 | 0 | 0 |
Cash used in financing activities | 42 | 518 | 47 | 594 |
Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents | 0 | 0 | (13) | 6 |
Cash position | ||||
Increase (decrease) in cash and cash equivalents | (150) | 15 | (103) | (28) |
Cash and cash equivalents at beginning of period | 195 | 31 | 148 | 74 |
Cash and cash equivalents at end of period | 45 | 46 | 45 | 46 |
Issuance of CP Common Shares | CAD 0 | CAD 0 | CAD 0 | CAD 0 |