Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 22, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2019 | |
Document Period End Date | Sep. 30, 2019 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-01342 | |
Entity Registrant Name | CANADIAN PACIFIC RAILWAY LTD/CN | |
Entity Central Index Key | 0000016875 | |
Entity Tax Identification Number | 98-0355078 | |
Entity Incorporation, State or Country Code | Z4 | |
Entity Address, Address Line One | 7550 Ogden Dale Road S.E. | |
Entity Address, City or Town | Calgary | |
Entity Address, State or Province | AB | |
Entity Address, Postal Zip Code | T2C 4X9 | |
City Area Code | (403) | |
Local Phone Number | 319-7000 | |
Title of 12(b) Security | Common Shares, without par value | |
Trading Symbol | CP | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 137,195,014 |
INTERIM CONSOLIDATED STATEMENTS
INTERIM CONSOLIDATED STATEMENTS OF INCOME (unaudited) - CAD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues | ||||
Total revenues | $ 1,979 | $ 1,898 | $ 5,723 | $ 5,310 |
Operating expenses | ||||
Compensation and benefits | 355 | 365 | 1,144 | 1,090 |
Fuel | 210 | 226 | 655 | 671 |
Materials | 50 | 47 | 161 | 155 |
Equipment rents | 33 | 33 | 102 | 99 |
Depreciation and amortization | 185 | 174 | 528 | 516 |
Purchased services and other | 277 | 263 | 899 | 822 |
Total operating expenses | 1,110 | 1,108 | 3,489 | 3,353 |
Operating income | 869 | 790 | 2,234 | 1,957 |
Less: | ||||
Other expense (income) | 29 | (47) | (58) | 56 |
Other components of net periodic benefit recovery | (99) | (96) | (294) | (287) |
Net interest expense | 110 | 112 | 336 | 339 |
Income before income tax expense | 829 | 821 | 2,250 | 1,849 |
Income tax expense | 211 | 199 | 474 | 443 |
Net income | $ 618 | $ 622 | $ 1,776 | $ 1,406 |
Earnings per share | ||||
Basic earnings per share | $ 4.47 | $ 4.36 | $ 12.75 | $ 9.81 |
Diluted earnings per share | $ 4.46 | $ 4.35 | $ 12.70 | $ 9.78 |
Weighted-average number of shares (millions) | ||||
Basic | 138.1 | 142.6 | 139.3 | 143.2 |
Diluted | 138.7 | 143.1 | 139.8 | 143.7 |
Dividends declared per share | $ 0.8300 | $ 0.6500 | $ 2.3100 | $ 1.8625 |
Freight | ||||
Revenues | ||||
Total revenues | $ 1,932 | $ 1,854 | $ 5,589 | $ 5,188 |
Non-freight | ||||
Revenues | ||||
Total revenues | $ 47 | $ 44 | $ 134 | $ 122 |
INTERIM CONSOLIDATED STATEMEN_2
INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - CAD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 618 | $ 622 | $ 1,776 | $ 1,406 |
Net (loss) gain in foreign currency translation adjustments, net of hedging activities | (8) | 12 | 23 | (24) |
Change in derivatives designated as cash flow hedges | 2 | 1 | 8 | 36 |
Change in pension and post-retirement defined benefit plans | 20 | 28 | 61 | 86 |
Other comprehensive income before income taxes | 14 | 41 | 92 | 98 |
Income tax recovery (expense) on above items | 3 | (22) | (41) | (11) |
Other comprehensive income (loss) | 17 | 19 | 51 | 87 |
Comprehensive income | $ 635 | $ 641 | $ 1,827 | $ 1,493 |
INTERIM CONSOLIDATED BALANCE SH
INTERIM CONSOLIDATED BALANCE SHEETS AS AT (unaudited) - CAD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets | |||||||
Cash and cash equivalents | $ 145 | $ 61 | |||||
Accounts receivable, net | 770 | 815 | |||||
Materials and supplies | 188 | 173 | |||||
Other current assets | 83 | 68 | |||||
Total current assets | 1,186 | 1,117 | |||||
Investments | 215 | 203 | |||||
Properties | 18,909 | $ 18,406 | 18,418 | ||||
Goodwill and intangible assets | 195 | 202 | |||||
Pension asset | 1,572 | 1,243 | |||||
Other assets | 462 | 470 | 71 | ||||
Total assets | 22,539 | 21,254 | |||||
Current liabilities | |||||||
Accounts payable and accrued liabilities | 1,415 | 1,507 | 1,449 | ||||
Long-term debt maturing within one year | 675 | 506 | |||||
Total current liabilities | 2,090 | 1,955 | |||||
Pension and other benefit liabilities | 712 | 718 | |||||
Other long-term liabilities | 579 | 574 | 237 | ||||
Long-term debt | 8,308 | 8,190 | |||||
Deferred income taxes | 3,635 | 3,515 | 3,518 | ||||
Total liabilities | 15,324 | 14,618 | |||||
Shareholders’ equity | |||||||
Share capital | 1,982 | 2,002 | |||||
Additional paid-in capital | 45 | 42 | |||||
Accumulated other comprehensive (loss) income | (1,992) | $ (2,009) | (2,043) | $ (1,654) | $ (1,673) | $ (1,741) | |
Retained earnings | 7,180 | 6,630 | 6,635 | ||||
Total shareholders' equity | 7,215 | $ 7,157 | $ 6,631 | 6,636 | $ 7,128 | $ 6,574 | $ 6,437 |
Total liabilities and shareholders’ equity | $ 22,539 | $ 21,254 |
INTERIM CONSOLIDATED STATEMEN_3
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - CAD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Operating activities | ||||
Net income | $ 618 | $ 622 | $ 1,776 | $ 1,406 |
Reconciliation of net income to cash provided by operating activities: | ||||
Depreciation and amortization | 185 | 174 | 528 | 516 |
Deferred income tax (recovery) expense | 96 | 77 | 116 | 155 |
Pension recovery and funding | (94) | (84) | (271) | (238) |
Foreign exchange loss (gain) on debt and lease liabilities | 25 | (38) | (57) | 55 |
Settlement of forward starting swaps on debt issuance | 0 | 0 | 0 | (24) |
Other operating activities, net | 24 | (6) | 87 | (23) |
Change in non-cash working capital balances related to operations | (31) | (72) | (222) | (66) |
Cash provided by operating activities | 823 | 673 | 1,957 | 1,781 |
Investing activities | ||||
Additions to properties | (464) | (430) | (1,147) | (1,084) |
Proceeds from sale of properties and other assets | 4 | 7 | 18 | 16 |
Other investing activities | (1) | 0 | (6) | (1) |
Cash used in investing activities | (461) | (423) | (1,135) | (1,069) |
Financing activities | ||||
Dividends paid | (116) | (92) | (298) | (255) |
Issuance of CP Common Shares | 6 | 4 | 20 | 16 |
Purchase of CP Common Shares | (500) | 0 | (964) | (559) |
Issuance of long-term debt, excluding commercial paper | 0 | 0 | 397 | 638 |
Repayment of long-term debt, excluding commercial paper | (6) | (5) | (491) | (744) |
Net issuance of commercial paper | 355 | (53) | 601 | 0 |
Other financing activities | (2) | 0 | (2) | 0 |
Cash used in financing activities | (263) | (146) | (737) | (904) |
Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents | 1 | (5) | (1) | 4 |
Cash position | ||||
Increase (decrease) in cash and cash equivalents | 100 | 99 | 84 | (188) |
Cash and cash equivalents at beginning of period | 45 | 51 | 61 | 338 |
Cash and cash equivalents at end of period | 145 | 150 | 145 | 150 |
Supplemental disclosures of cash flow information: | ||||
Income taxes paid | 122 | 74 | 379 | 230 |
Interest paid | $ 141 | $ 147 | $ 373 | $ 380 |
INTERIM CONSOLIDATED STATEMEN_4
INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited) - CAD ($) shares in Millions, $ in Millions | Total | Share capital | Additional paid-in capital | Accumulated other comprehensive loss | Retained earnings |
Beginning balance (shares) at Dec. 31, 2017 | 144.9 | ||||
Beginning balance at Dec. 31, 2017 | $ 6,437 | $ 2,032 | $ 43 | $ (1,741) | $ 6,103 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 1,406 | 0 | 0 | 0 | 1,406 |
Other comprehensive income | 87 | 0 | 0 | 87 | 0 |
Dividends declared | (267) | 0 | 0 | 0 | (267) |
Effect of stock-based compensation expense | $ 8 | 0 | 8 | 0 | 0 |
Common Shares repurchased (shares) | (2.5) | ||||
Common Shares repurchased | $ (559) | (35) | 0 | 0 | (524) |
Shares issued under stock option plan (shares) | 0.2 | ||||
Shares issued under stock option plan | $ 16 | 20 | (4) | 0 | 0 |
Ending balance (shares) at Sep. 30, 2018 | 142.6 | ||||
Ending balance at Sep. 30, 2018 | $ 7,128 | 2,017 | 47 | (1,654) | 6,718 |
Beginning balance (shares) at Jun. 30, 2018 | 142.5 | ||||
Beginning balance at Jun. 30, 2018 | $ 6,574 | 2,013 | 45 | (1,673) | 6,189 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 622 | 0 | 0 | 0 | 622 |
Other comprehensive income | 19 | 0 | 0 | 19 | 0 |
Dividends declared | (93) | 0 | 0 | 0 | (93) |
Effect of stock-based compensation expense | $ 2 | 0 | 2 | 0 | 0 |
Shares issued under stock option plan (shares) | 0.1 | ||||
Shares issued under stock option plan | $ 4 | 4 | 0 | 0 | 0 |
Ending balance (shares) at Sep. 30, 2018 | 142.6 | ||||
Ending balance at Sep. 30, 2018 | $ 7,128 | 2,017 | 47 | (1,654) | 6,718 |
Beginning balance (shares) at Dec. 31, 2018 | 140.5 | ||||
Beginning balance at Dec. 31, 2018 | $ 6,636 | 2,002 | 42 | (2,043) | 6,635 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 1,776 | 0 | 0 | 0 | 1,776 |
Other comprehensive income | 51 | 0 | 0 | 51 | 0 |
Dividends declared | (320) | 0 | 0 | 0 | (320) |
Effect of stock-based compensation expense | $ 11 | 0 | 11 | 0 | 0 |
Common Shares repurchased (shares) | (3.2) | ||||
Common Shares repurchased | $ (952) | (46) | 0 | 0 | (906) |
Shares issued under stock option plan (shares) | 0.2 | ||||
Shares issued under stock option plan | $ 18 | 26 | (8) | 0 | 0 |
Ending balance (shares) at Sep. 30, 2019 | 137.5 | ||||
Ending balance at Sep. 30, 2019 | $ 7,215 | 1,982 | 45 | (1,992) | 7,180 |
Beginning balance (shares) at Jun. 30, 2019 | 139.1 | ||||
Beginning balance at Jun. 30, 2019 | $ 7,157 | 1,996 | 45 | (2,009) | 7,125 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 618 | 0 | 0 | 0 | 618 |
Other comprehensive income | 17 | 0 | 0 | 17 | 0 |
Dividends declared | (114) | 0 | 0 | 0 | (114) |
Effect of stock-based compensation expense | $ 3 | 0 | 3 | 0 | 0 |
Common Shares repurchased (shares) | (1.6) | ||||
Common Shares repurchased | $ (471) | (22) | 0 | 0 | (449) |
Shares issued under stock option plan (shares) | 0 | ||||
Shares issued under stock option plan | $ 5 | 8 | (3) | 0 | 0 |
Ending balance (shares) at Sep. 30, 2019 | 137.5 | ||||
Ending balance at Sep. 30, 2019 | $ 7,215 | $ 1,982 | $ 45 | $ (1,992) | $ 7,180 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
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 2018 annual consolidated financial statements and notes included in CP's 2018 Annual Report on Form 10-K. The accounting policies used are consistent with the accounting policies used in preparing the 2018 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 | 9 Months Ended |
Sep. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Accounting Changes | Accounting changes Implemented in 2019 Leases On January 1, 2019, the Company adopted the new Accounting Standards Update ("ASU") 2016-02, issued by the Financial Accounting Standards Board ("FASB"), and all related amendments under FASB Accounting Standards Codification ("ASC") Topic 842, Leases. Using the cumulative-effect adjustment transition approach, the Company recognized a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Accordingly, comparative financial information has not been restated and continues to be reported under the accounting standards in effect for those periods. In January 2019, the Company implemented a lease management system to assist in delivering the required accounting changes. To facilitate the transition, the Company made policy choices to utilize available practical expedients provided by the new standard, including the: • Acceptance of the package of practical expedients, permitting the Company not to reassess lease existence, classification, and capitalization of initial direct costs previously determined for all leases under Topic 840, Leases; • Acceptance of the previous accounting treatment for land easements where Topic 840 was not applied; and • Use of hindsight at transition to determine lease term length. Operating leases with fixed terms and in-substance fixed terms were transitioned by recognizing both an operating lease liability and right-of-use ("ROU") asset. Operating lease liabilities and ROU assets were calculated at the present value of remaining lease payments using the Company’s incremental borrowing interest rate as at January 1, 2019. ROU assets were further modified to include previously accrued balances for prepayments and initial direct costs, but reduced for accrued lease incentives. The Company did not recognize operating lease liabilities or ROU assets for leases requiring variable payment not dependent on an index or rate, or short term leases with a term of 12 months or less. On adoption, the standard had a material impact on the Company's consolidated balance sheet, but did not have a significant impact on its consolidated statement of income. The most significant impact was the recognition of operating lease ROU assets and operating lease liabilities, while the Company's accounting for finance leases remained substantially unchanged. The impact of the adoption of ASC 842 as at January 1, 2019 was as follows: (in millions of Canadian dollars) As reported New lease standard As restated Assets Properties $ 18,418 $ (12 ) $ 18,406 Other assets 71 399 470 Liabilities Accounts payable and accrued liabilities $ 1,449 $ 58 $ 1,507 Other long-term liabilities 237 337 574 Deferred income taxes 3,518 (3 ) 3,515 Shareholders' equity Retained earnings $ 6,635 $ (5 ) $ 6,630 There was no significant impact to lessor accounting upon the adoption of ASC 842. Future changes Financial Instruments - Credit Losses In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments under FASB ASC Topic 326. This will replace the current incurred loss methodology used for establishing a provision against financial assets, including accounts receivable, with a forward-looking expected loss methodology for accounts receivable, loans and other financial instruments. The standard is effective as of January 1, 2020. Entities are required to apply the amendments in this update using a modified retrospective approach, through a cumulative-effect adjustment to retained earnings as of the effective date. The Company is currently performing analysis to determine the impact this new accounting standard will have on its financial statements, as well as determining the most appropriate portfolios of financial assets and the expected loss methodology to apply to each portfolio. |
Revenues
Revenues | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenues The following table disaggregates the Company’s revenues from contracts with customers by major source: For the three months ended September 30 For the nine months ended September 30 (in millions of Canadian dollars) 2019 2018 2019 2018 Freight Grain $ 409 $ 384 $ 1,211 $ 1,113 Coal 183 171 514 486 Potash 117 130 367 358 Fertilizers and sulphur 66 55 186 171 Forest products 78 76 229 211 Energy, chemicals and plastics 382 339 1,043 874 Metals, minerals and consumer products 201 208 579 595 Automotive 87 85 267 247 Intermodal 409 406 1,193 1,133 Total freight revenues 1,932 1,854 5,589 5,188 Non-freight excluding leasing revenues 32 28 89 76 Revenues from contracts with customers 1,964 1,882 5,678 5,264 Leasing revenues 15 16 45 46 Total revenues $ 1,979 $ 1,898 $ 5,723 $ 5,310 Contract liabilities Contract liabilities represent payments received for performance obligations not yet satisfied and relate to deferred revenue and are presented as components of Accounts payable and accrued liabilities and Other long-term liabilities on the Company's Interim Consolidated Balance Sheets. The following tables summarize the changes in contract liabilities for the three and nine months ended September 30, 2019 and 2018: For the three months ended September 30 For the nine months ended September 30 (in millions of Canadian dollars) 2019 2018 2019 2018 Opening balance $ 74 $ 3 $ 2 $ 2 Revenue recognized that was included in the contract liability balance at the beginning of the period (8 ) (3 ) (2 ) (2 ) Increases due to consideration received, excluding amounts recognized as revenue during the period 4 2 70 2 Closing balance $ 70 $ 2 $ 70 $ 2 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss ("AOCL") by Component | 9 Months Ended |
Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Changes in Accumulated Other Comprehensive Loss (AOCL) by Component | Changes in Accumulated other comprehensive loss ("AOCL") by component For the three months ended September 30 (in millions of Canadian dollars) Foreign currency net of hedging activities (1) Derivatives and (1) Pension and post- (1) Total (1) Opening balance, July 1, 2019 $ 112 $ (58 ) $ (2,063 ) $ (2,009 ) Other comprehensive income before reclassifications 1 — — 1 Amounts reclassified from accumulated other comprehensive loss — 1 15 16 Net other comprehensive income 1 1 15 17 Closing balance, September 30, 2019 $ 113 $ (57 ) $ (2,048 ) $ (1,992 ) Opening balance, July 1, 2018 $ 110 $ (64 ) $ (1,719 ) $ (1,673 ) Other comprehensive (loss) income before reclassifications (1 ) (2 ) 1 (2 ) Amounts reclassified from accumulated other comprehensive loss — 2 19 21 Net other comprehensive (loss) income (1 ) — 20 19 Closing balance, September 30, 2018 $ 109 $ (64 ) $ (1,699 ) $ (1,654 ) (1) Amounts are presented net of tax. For the nine months ended September 30 (in millions of Canadian dollars) Foreign currency net of hedging activities (1) Derivatives and (1) Pension and post- (1) Total (1) Opening balance, January 1, 2019 $ 113 $ (62 ) $ (2,094 ) $ (2,043 ) Other comprehensive loss before reclassifications — — (1 ) (1 ) Amounts reclassified from accumulated other comprehensive loss — 5 47 52 Net other comprehensive income — 5 46 51 Closing balance, September 30, 2019 $ 113 $ (57 ) $ (2,048 ) $ (1,992 ) Opening balance, January 1, 2018 $ 109 $ (89 ) $ (1,761 ) $ (1,741 ) Other comprehensive income before reclassifications — 19 — 19 Amounts reclassified from accumulated other comprehensive loss — 6 62 68 Net other comprehensive income — 25 62 87 Closing balance, September 30, 2018 $ 109 $ (64 ) $ (1,699 ) $ (1,654 ) (1) Amounts are presented net of tax. Amounts in Pension and post-retirement defined benefit plans reclassified from AOCL are as follows: For the three months ended September 30 For the nine months ended September 30 (in millions of Canadian dollars) 2019 2018 2019 2018 Amortization of prior service costs (1) $ (1 ) $ (1 ) $ — $ (2 ) Recognition of net actuarial loss (1) 21 29 62 88 Total before income tax 20 28 62 86 Income tax recovery (5 ) (9 ) (15 ) (24 ) Total net of income tax $ 15 $ 19 $ 47 $ 62 (1) Impacts " Other components of net periodic benefit recovery " on the Interim Consolidated Statements of Income. |
Other (Income) Expense
Other (Income) Expense | 9 Months Ended |
Sep. 30, 2019 | |
Other Income and Expenses [Abstract] | |
Other Income and Expenses | Other expense (income) For the three months ended September 30 For the nine months ended September 30 (in millions of Canadian dollars) 2019 2018 2019 2018 Foreign exchange loss (gain) on debt and lease liabilities $ 25 $ (38 ) $ (57 ) $ 55 Other foreign exchange losses (gains) 2 (1 ) (4 ) 2 Other 2 (8 ) 3 (1 ) Other expense (income) $ 29 $ (47 ) $ (58 ) $ 56 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income taxes For the three months ended September 30 For the nine months ended September 30 (in millions of Canadian dollars) 2019 2018 2019 2018 Current income tax expense $ 115 $ 122 $ 358 $ 288 Deferred income tax expense 96 77 116 155 Income tax expense $ 211 $ 199 $ 474 $ 443 During the nine months ended September 30, 2019, legislation was enacted to decrease the Alberta provincial corporate income tax rate. As a result of this change, the Company recorded a deferred tax recovery of $88 million in the second quarter of 2019 related to the revaluation of its deferred income tax balances as at January 1, 2019. During the nine months ended September 30, 2018, legislation was enacted to decrease the Iowa and Missouri state corporate income tax rates. As a result of these changes, the Company recorded a deferred tax recovery of $21 million in the second quarter of 2018 related to the revaluation of deferred income tax balances as at January 1, 2018. The effective tax rates for the three and nine months ended September 30, 2019 were 25.43% and 21.06% , respectively, compared to 24.23% and 23.95% , respectively for the same periods of 2018 . For the three months ended September 30, 2019, the effective tax rate excluding the discrete item of the foreign exchange ("FX") loss of $25 million on debt and lease liabilities, was 25.11% . For the three months ended September 30, 2018 , the effective tax rate excluding the discrete item of the FX gain of $38 million on debt, was 24.75% . For the nine months ended September 30, 2019 , the effective tax rate excluding the discrete items of the FX gain of $57 million on debt and lease liabilities and the $88 million deferred tax recovery on the Alberta provincial corporate income tax rate change, was 25.50% . For the nine months ended September 30, 2018 , the effective tax rate excluding the discrete items of the FX loss of $55 million on debt and the $21 million deferred tax recovery on the Iowa and Missouri state corporate income tax rate changes, was 24.75% |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings per share At September 30, 2019 , the number of CP Common Shares outstanding was 137.5 million ( September 30, 2018 - 142.6 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 September 30 For the nine months ended September 30 (in millions) 2019 2018 2019 2018 Weighted-average basic shares outstanding 138.1 142.6 139.3 143.2 Dilutive effect of stock options 0.6 0.5 0.5 0.5 Weighted-average diluted shares outstanding 138.7 143.1 139.8 143.7 For the three months ended September 30 , 2019 , there were no options excluded from the computation of diluted earnings per share (three months ended September 30, 2018 - 0.3 million ). For the nine months ended September 30, 2019 , there were 0.1 million options excluded from the computation of diluted earnings per share because their effects were not dilutive ( nine months ended September 30, 2018 - 0.2 million ). |
Debt
Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Credit facility Effective September 27, 2019, the Company amended and restated its revolving credit facility agreement to, among other things, increase the total amount available to U.S. $1.3 billion (December 31, 2018 - U.S. $1.0 billion ). The amended and restated revolving credit facility consists of a U.S. $1.0 billion tranche maturing September 27, 2024 (extended from June 28, 2023, previously) and a U.S. $300 million tranche maturing September 27, 2021. As at September 30, 2019, the revolving credit facility was undrawn (December 31, 2018 - undrawn). Effective September 27, 2019, the Company also reduced its bilateral letter of credit facilities to $300 million (December 31, 2018 - $600 million ). Retirement of long-term debt During the three months ended June 30, 2019, the Company repaid U.S. $350 million 7.250% 10 -year notes at maturity for a total of U.S. $350 million ( $471 million ). Issuance of long-term debt During the three months ended March 31, 2019, the Company issued $400 million 3.150% 10 -year notes due March 13, 2029 for net proceeds of $397 million . These notes pay interest semi-annually and are unsecured but carry a negative pledge. 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. $1.3 billion revolving credit facility. As at September 30, 2019 , the Company had total commercial paper borrowings of U.S. $455 million ( $603 million ), presented in "Long-term debt maturing within one year" on the Company's Interim Consolidated Balance Sheets (December 31, 2018 - $ nil ). The weighted-average interest rate on these borrowings was 2.38% . The Company presents issuances and repayments of commercial paper, all of which have a maturity of less than 90 days, in the Company's Interim Consolidated Statements of Cash Flows on a net basis. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company has leases for rolling stock, buildings, vehicles, railway equipment, and roadway machines. CP has entered into rolling stock leases that are fully variable or contain both fixed and variable components. Variable components are dependent on the hours and miles that the underlying equipment has been used. Fixed term, short-term, and variable operating lease costs are recorded in Equipment rents and Purchased services and other on the Company's Interim Consolidated Income Statements. Components of finance lease costs are recorded in Depreciation and amortization and Net interest expense on the Company's Interim Consolidated Income Statements. The Company determines lease existence and classification at the lease inception date. Leases are identified when an agreement conveys the right to control identified property for a period of time in exchange for consideration. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating and finance lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Lease payments include fixed and variable payments that are based on an index or a rate. If the Company's leases do not provide a readily determinable implicit interest rate, the Company uses internal incremental secured borrowing rates for comparable tenor in the same currency at the commencement date in determining the present value of lease payments. Operating and finance lease ROU assets also include lease prepayments and initial direct costs, but are reduced by lease incentives. The lease term may include periods associated with options to extend or exclude periods associated with options to terminate the lease when it is reasonably certain that the Company will exercise these options. The Company’s leases have remaining terms from one to 12 years , some of which include options to extend for up to an additional 10 years and some of which include options to terminate within one year . The Company has short-term operating leases with terms of 12 months or less, some of which include options to purchase that the Company is not reasonably certain to exercise. The Company has elected to apply the recognition exemption and, as such, accounts for leases with a term of 12 months or less off-balance sheet. Therefore, lease payments on these short-term operating leases are not included in operating lease ROU assets and liabilities, but are recognized as an expense in the Company's Consolidated Statements of Income on a straight-line basis over the term of the lease. Further, the Company has elected to combine lease and non-lease components for all leases, except for leases of roadway machines. Residual value guarantees are provided on certain rolling stock and vehicle operating leases. Cumulatively, these guarantees are limited to $2 million and are not included in lease liabilities as it is not currently probable that any amounts will be owed under these residual value guarantees. The components of lease expense are as follows: For the three months ended September 30 For the nine months ended September 30 (in millions of Canadian dollars) 2019 2019 Operating lease cost $ 22 $ 67 Short-term lease cost 1 3 Variable lease cost 3 9 Sublease income (1 ) (2 ) Finance Lease Cost Amortization of right-of use-assets 2 7 Interest on lease liabilities 3 8 Total lease costs $ 30 $ 92 Supplemental balance sheet information related to leases is as follows: As at September 30 (in millions of Canadian dollars) Classification 2019 Assets Operating Other assets $ 376 Finance Properties, net book value 179 Liabilities Current Operating Accounts payable and accrued liabilities 73 Finance Long-term debt maturing within one year 7 Long-term Operating Other long-term liabilities 297 Finance Long-term debt 148 The following table provides the Company's weighted average remaining lease terms and discount rates: As at September 30 (in millions of Canadian dollars) 2019 Weighted Average Remaining Lease Term Operating leases 7 years Finance leases 4 years Weighted Average Discount Rate Operating leases 3.46 % Finance leases 7.05 % Supplemental information related to leases is as follows: For the three months ended September 30 For the nine months ended September 30 (in millions of Canadian dollars) 2019 2019 Cash paid for amounts included in measurement of lease liabilities Operating cash outflows from operating leases $ 20 $ 66 Operating cash outflows from finance leases 5 10 Financing cash outflows from finance leases 2 4 Right-of-use assets obtained in exchange for lease liabilities Operating leases $ 8 $ 31 Finance leases — 4 Maturities of lease liabilities are as follows: As at September 30, 2019 (in millions of Canadian dollars) Finance Leases Operating Leases 2019 $ 3 $ 28 2020 11 69 2021 10 54 2022 110 52 2023 9 40 Thereafter 29 178 Total lease payments $ 172 $ 421 Less: Imputed interest 17 51 Present value of lease payments $ 155 $ 370 |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders' equity On October 19, 2018, the Company announced a normal course issuer bid ("NCIB"), commencing October 24, 2018, to purchase up to 5.68 million of its Common Shares in the open market for cancellation on or before October 23, 2019. As at September 30, 2019 , the Company had purchased 5.37 million Common Shares for $1,520 million under this NCIB program. On May 10, 2017, the Company announced an NCIB, commencing May 15, 2017, to purchase up to 4.38 million Common Shares for cancellation before May 14, 2018. The Company completed this NCIB on May 10, 2018. All purchases were made in accordance with the NCIB at prevalent market prices plus brokerage fees, or such other prices that were 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 describes activities under the share repurchase program: For the three months ended September 30 For the nine months ended September 30 2019 2018 2019 2018 Number of Common Shares repurchased (1) 1,519,540 — 3,183,461 2,495,962 Weighted-average price per share (2) $ 310.36 $ — $ 299.09 $ 223.97 Amount of repurchase (in millions) (2) $ 471 $ — $ 952 $ 559 (1) Includes shares repurchased but not yet canceled at quarter end. (2) Includes brokerage fees. |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2019 | |
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 into a three-level hierarchy established by GAAP that prioritizes those inputs to valuation techniques used to measure fair value based on the degree to which they are observable. The three levels of the fair value hierarchy are as follows: Level 1 inputs are quoted prices in active markets for identical assets and liabilities; Level 2 inputs, other than quoted prices included within Level 1, are observable for the asset or liability either directly or indirectly; and Level 3 inputs are not observable in the market. When possible, the estimated fair value is based on quoted market prices and, if not available, it is based on estimates from third party brokers. For non-exchange-traded derivatives classified as Level 2, the Company uses standard valuation techniques to calculate fair value. Primary inputs to these techniques include observable market prices (interest, FX, and commodity) and volatility, depending on the type of derivative and the 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. All derivatives and long-term debt are classified as Level 2. The carrying values of financial instruments equal or approximate their fair values with the exception of long-term debt: (in millions of Canadian dollars) September 30, 2019 December 31, 2018 Long-term debt (including current maturities): Fair value $ 10,420 $ 9,639 Carrying value 8,983 8,696 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 principal and interest at estimated interest rates expected to be available to the Company at period end. 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 Company's 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 as to 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 the 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 foreign subsidiaries with a U.S. dollar functional currency. 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 effect of the net investment hedge recognized in “Other comprehensive income” for the three and nine months ended September 30, 2019 was an unrealized FX loss of $68 million and an unrealized FX gain of $172 million , respectively ( three and nine months ended September 30, 2018 - unrealized FX gain of $96 million and an unrealized FX loss of $177 million , respectively). 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 ongoing 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 During the second quarter of 2018, the Company settled a notional U.S. $500 million of forward starting swaps related to the U.S. $500 million 4.000% 10 -year Notes issued in the same period. The fair value of these derivative instruments at the time of settlement was a loss of U.S. $19 million ( $24 million ). The changes in fair value from forward starting swaps for the three and nine months ended September 30, 2019 was $ nil ( three and nine months ended September 30, 2018 - $ nil and a gain of $31 million , respectively). This was recorded in "Accumulated other comprehensive loss”, net of tax, and is being reclassified to "Net interest expense" on the Interim Consolidated Statements of Income until the underlying hedged notes are repaid. For the three and nine months ended September 30, 2019 , a net loss of $2 million and $7 million , respectively, related to settled forward starting swap hedges have been amortized to “Net interest expense” ( three and nine months ended September 30, 2018 - net loss of $2 million and $7 million , respectively). The Company expects that during the next twelve months, an additional $9 million of net losses will be amortized to “Net interest expense”. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-based compensation At September 30, 2019 , the Company had several stock-based compensation plans including stock option plans, various cash-settled liability plans, and an employee share purchase plan. These plans resulted in an expense for the three and nine months ended September 30, 2019 of $15 million and $88 million , respectively ( three and nine months ended September 30, 2018 - $28 million and $60 million , respectively). Stock option plan In the nine months ended September 30, 2019 , under CP’s stock option plans, the Company issued 224,730 options at the weighted-average price of $272.66 per share, based on the closing price on the grant date. Pursuant to the employee plan, these options may be exercised upon vesting, which is between 12 months and 48 months after the grant date, and will expire after seven years . Under the fair value method, the fair value of the stock options at the grant date was approximately $14 million . The weighted-average fair value assumptions were approximately: For the nine months ended September 30, 2019 Grant price $272.66 Expected option life (years) (1) 5.00 Risk-free interest rate (2) 2.22% Expected stock price volatility (3) 25.04% Expected annual dividends per share (4) $2.6191 Expected forfeiture rate (5) 6.05% Weighted-average grant date fair value per option granted during the period $63.69 (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 term commensurate with the expected term of the option. (3) Based on the historical volatility of the Company’s stock price 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 May 6, 2019, the Company announced an increase in its quarterly dividend to $0.8300 per share, representing $3.3200 on an annual basis. (5) The Company estimates forfeitures based on past experience. This rate is monitored on a periodic basis. Performance share unit plan In the nine months ended September 30, 2019 , the Company issued 134,260 Performance Share Units ("PSUs") with a grant date fair value of approximately $36 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 these PSUs is measured periodically until settlement, using either a lattice-based valuation model or a Monte Carlo simulation model. The performance period for 133,681 PSUs issued in the nine months ended September 30, 2019 is January 1, 2019 to December 31, 2021, and the performance factors for these PSUs are Return on Invested Capital ("ROIC"), Total Shareholder Return ("TSR") compared to the S&P/TSX 60 Index, and TSR compared to Class I railways. The performance factors for the remaining 579 PSUs are annual revenue for the fiscal year 2020, diluted earnings per share for the fiscal year 2020, and share price appreciation. The performance period for the PSUs issued in 2016 was January 1, 2016 to December 31, 2018. The performance factors for these PSUs were Operating Ratio, ROIC, TSR compared to the S&P/TSX 60 index, and TSR compared to Class I railways. The resulting payout was 177% of the outstanding units multiplied by the Company's average share price that was calculated using the last 30 trading days preceding December 31, 2018. In the three months ended March 31, 2019, payouts occurred on the total outstanding awards, including dividends reinvested, totaling $54 million on 117,228 outstanding awards. Deferred share unit plan In the nine months ended September 30, 2019 , the Company granted 17,653 Deferred Share Units ("DSUs") with a grant date fair value of approximately $5 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. |
Pension and Other Benefits
Pension and Other Benefits | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Pensions and Other Benefits | Pension and other benefits In the three months ended September 30, 2019 , the Company made contributions of $17 million (three months ended September 30, 2018 - $13 million ) to its defined benefit pension plans. In the nine months ended September 30, 2019 , the Company made contributions of $40 million ( nine months ended September 30, 2018 - $25 million , which is net of a $10 million refund of plan surplus) to its defined benefit pension plans. Net periodic benefit costs for defined benefit pension plans and other benefits recognized in the three and nine months ended September 30, 2019 and 2018 included the following components: For the three months ended September 30 Pensions Other benefits (in millions of Canadian dollars) 2019 2018 2019 2018 Current service cost (benefits earned by employees) $ 27 $ 30 $ 3 $ 3 Other components of net periodic benefit (recovery) cost: Interest cost on benefit obligation 113 110 4 5 Expected return on fund assets (236 ) (239 ) — — Recognized net actuarial loss 20 29 1 — Amortization of prior service costs (1 ) (1 ) — — Total other components of net periodic benefit (recovery) cost (104 ) (101 ) 5 5 Net periodic benefit (recovery) cost $ (77 ) $ (71 ) $ 8 $ 8 For the nine months ended September 30 Pensions Other benefits (in millions of Canadian dollars) 2019 2018 2019 2018 Current service cost (benefits earned by employees) $ 81 $ 90 $ 9 $ 9 Other components of net periodic benefit (recovery) cost: Interest cost on benefit obligation 338 329 14 14 Expected return on fund assets (710 ) (716 ) — — Recognized net actuarial loss 61 86 3 2 Amortization of prior service costs (1 ) (2 ) 1 — Total other components of net periodic benefit (recovery) cost (312 ) (303 ) 18 16 Net periodic benefit (recovery) cost $ (231 ) $ (213 ) $ 27 $ 25 |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
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 adequate for such actions. While the outcome with respect to actions outstanding or pending at September 30, 2019 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 petroleum crude oil operated by Montreal Maine and Atlantic Railway (“MMAR”) or a subsidiary, Montreal Maine & Atlantic Canada Co. (“MMAC”, collectively “MMA Group”), derailed in Lac-Mégantic, Québec. The derailment occurred on a section of railway owned and operated by the MMA Group and while the MMA Group had custody and control of the train. Following the derailment, MMAC sought court protection in Canada under the Companies’ Creditors Arrangement Act, R.S.C. , 1985, c. C-36 and MMAR filed for bankruptcy in the United States. Plans of arrangement were approved in both Canada and the U.S. (the “Plans”), providing for the distribution of approximately $440 million amongst those claiming derailment damages. A number of legal proceedings, set out below, were commenced in Canada and the U.S. against CP and others: (1) Québec's Minister of Sustainable Development, Environment, Wildlife and Parks ordered various parties, including CP, to clean up the derailment site and served CP with a Notice of Claim for $95 million for those cleanup costs. CP appealed the cleanup order and contested the Notice of Claim with the Administrative Tribunal of Québec. These proceedings are stayed pending determination of the Attorney General of Quebec (“AGQ”) action (paragraph 2 below). (2) The AGQ sued CP in the Québec Superior Court claiming $409 million in damages, which was amended and reduced to $315 million (the “AGQ Action”). The AGQ Action alleges that: (i) CP exercised custody or control over the petroleum crude oil until its delivery to Irving Oil and was negligent in that custody and control; and (ii) CP is vicariously liable for the acts and omissions of the MMA Group. (3) A class action in the Québec Superior Court on behalf of persons and entities residing in, owning or leasing property in, operating a business in, or physically present in Lac-Mégantic at the time of the derailment (the “Class Action”) was certified against CP, MMAC and the train conductor, Mr. Thomas Harding ("Harding") in May 2015. The Class Action seeks unquantified damages, including for wrongful death, personal injury, and property damage. (4) Eight subrogated insurers sued CP in the Québec Superior Court claiming approximately $16 million in damages, which was amended and reduced to $14 million (the “Promutuel Action”), and two additional subrogated insurers sued CP claiming approximately $3 million in damages (the “Royal Action”). Both actions contain similar allegations as the AGQ Action. The actions do not identify the subrogated parties, and therefore overlap with the claims process under the Plans is unclear. The Royal Action is stayed pending determination of the consolidated proceedings described below. The AGQ Action, the Class Action and the Promutuel Action have been consolidated and scheduled for a joint liability trial commencing September 14, 2020, followed by a damages trial, if necessary. (5) Forty-eight plaintiffs (individual claims joined in one action) sued CP, MMAC, and Harding in the Québec Superior Court claiming approximately $5 million in damages for economic loss and pain and suffering, and asserting similar allegations as in the Class Action and the AGQ Action. The plaintiffs opted-out of the Class Action and all but two are also plaintiffs in litigation against CP, described in paragraph 7 below. This action is stayed pending determination of the consolidated proceedings described above. (6) The MMAR U.S. estate representative commenced an action against CP in November 2014 in the Maine Bankruptcy Court claiming that CP failed to abide by certain regulations and seeking damages for MMAR’s loss in business value (as yet unquantified). This action asserts that CP knew or ought to have known that the shipper misclassified the petroleum crude oil and therefore should have refused to transport it. (7) The class and mass tort action commenced against CP in June 2015 in Texas (on behalf of Lac-Mégantic residents and wrongful death representatives) and the wrongful death and personal injury actions commenced against CP in June 2015 in Illinois and Maine, were all transferred and consolidated in Federal District Court in Maine (the “Maine Actions”). The Maine Actions allege that CP negligently misclassified and mis-packaged the petroleum crude oil. On CP’s motion, the Maine Actions were dismissed. The plaintiffs are appealing the dismissal decision. (8) The trustee for the wrongful death trust commenced Carmack Amendment claims against CP in North Dakota Federal Court, seeking to recover approximately $6 million for damaged rail cars and lost crude and reimbursement for the settlement paid by the consignor and the consignee under the Plans (alleged to be $110 million and $60 million , respectively). This action is scheduled for trial in August 2020. At this stage of the proceedings, any potential responsibility and the quantum of potential losses cannot be determined. Nevertheless, CP denies liability and is vigorously defending these proceedings. 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, 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 nine months ended September 30, 2019 was $2 million and $4 million , respectively ( three and nine months ended September 30, 2018 - $2 million and $4 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 September 30, 2019 was $80 million ( December 31, 2018 - $82 million ). Payments are expected to be made over 10 years through 2029. |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidating Financial Information | 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 September 30, 2019 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Revenues Freight $ — $ 1,381 $ 551 $ — $ 1,932 Non-freight — 35 115 (103 ) 47 Total revenues — 1,416 666 (103 ) 1,979 Operating expenses Compensation and benefits — 238 114 3 355 Fuel — 164 46 — 210 Materials — 35 12 3 50 Equipment rents — 36 (3 ) — 33 Depreciation and amortization — 112 73 — 185 Purchased services and other — 194 192 (109 ) 277 Total operating expenses — 779 434 (103 ) 1,110 Operating income — 637 232 — 869 Less: Other expense (income) 3 27 (1 ) — 29 Other components of net periodic benefit (recovery) expense — (100 ) 1 — (99 ) Net interest expense (income) — 118 (8 ) — 110 (Loss) income before income tax expense and equity in net earnings of subsidiaries (3 ) 592 240 — 829 Less: Income tax expense 1 156 54 — 211 Add: Equity in net earnings of subsidiaries 622 186 — (808 ) — Net income $ 618 $ 622 $ 186 $ (808 ) $ 618 Interim Condensed Consolidating Statements of Income For the three months ended September 30, 2018 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Revenues Freight $ — $ 1,316 $ 538 $ — $ 1,854 Non-freight — 31 92 (79 ) 44 Total revenues — 1,347 630 (79 ) 1,898 Operating expenses Compensation and benefits — 246 117 2 365 Fuel — 177 49 — 226 Materials — 33 11 3 47 Equipment rents — 27 6 — 33 Depreciation and amortization — 105 69 — 174 Purchased services and other — 224 123 (84 ) 263 Total operating expenses — 812 375 (79 ) 1,108 Operating income — 535 255 — 790 Less: Other (income) expense (4 ) (46 ) 3 — (47 ) Other components of net periodic benefit (recovery) expense — (97 ) 1 — (96 ) Net interest (income) expense (2 ) 121 (7 ) — 112 Income before income tax expense and equity in net earnings of subsidiaries 6 557 258 — 821 Less: Income tax (recovery) expense (1 ) 142 58 — 199 Add: Equity in net earnings of subsidiaries 615 200 — (815 ) — Net income $ 622 $ 615 $ 200 $ (815 ) $ 622 Interim Condensed Consolidating Statements of Income For the nine months ended September 30, 2019 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Revenues Freight $ — $ 4,028 $ 1,561 $ — $ 5,589 Non-freight — 98 344 (308 ) 134 Total revenues — 4,126 1,905 (308 ) 5,723 Operating expenses Compensation and benefits — 769 369 6 1,144 Fuel — 518 137 — 655 Materials — 110 40 11 161 Equipment rents — 116 (14 ) — 102 Depreciation and amortization — 318 210 — 528 Purchased services and other — 712 512 (325 ) 899 Total operating expenses — 2,543 1,254 (308 ) 3,489 Operating income — 1,583 651 — 2,234 Less: Other (income) expense (7 ) (54 ) 3 — (58 ) Other components of net periodic benefit (recovery) expense — (298 ) 4 — (294 ) Net interest (income) expense (2 ) 360 (22 ) — 336 Income before income tax expense and equity in net earnings of subsidiaries 9 1,575 666 — 2,250 Less: Income tax expense 3 373 98 — 474 Add: Equity in net earnings of subsidiaries 1,770 568 — (2,338 ) — Net income $ 1,776 $ 1,770 $ 568 $ (2,338 ) $ 1,776 Interim Condensed Consolidating Statements of Income For the nine months ended September 30, 2018 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Revenues Freight $ — $ 3,667 $ 1,521 $ — $ 5,188 Non-freight — 89 271 (238 ) 122 Total revenues — 3,756 1,792 (238 ) 5,310 Operating expenses Compensation and benefits — 740 346 4 1,090 Fuel — 523 148 — 671 Materials — 106 38 11 155 Equipment rents — 88 11 — 99 Depreciation and amortization — 314 202 — 516 Purchased services and other — 647 428 (253 ) 822 Total operating expenses — 2,418 1,173 (238 ) 3,353 Operating income — 1,338 619 — 1,957 Less: Other expense (income) 7 81 (32 ) — 56 Other components of net periodic benefit (recovery) expense — (289 ) 2 — (287 ) Net interest expense (income) 4 356 (21 ) — 339 (Loss) income before income tax expense and equity in net earnings of subsidiaries (11 ) 1,190 670 — 1,849 Less: Income tax (recovery) expense (2 ) 327 118 — 443 Add: Equity in net earnings of subsidiaries 1,415 552 — (1,967 ) — Net income $ 1,406 $ 1,415 $ 552 $ (1,967 ) $ 1,406 Interim Condensed Consolidating Statements of Comprehensive Income For the three months ended September 30, 2019 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Net income $ 618 $ 622 $ 186 $ (808 ) $ 618 Net (loss) gain in foreign currency translation adjustments, net of hedging activities — (68 ) 60 — (8 ) Change in derivatives designated as cash flow — 2 — — 2 Change in pension and post-retirement defined — 19 1 — 20 Other comprehensive (loss) income before income taxes — (47 ) 61 — 14 Income tax recovery on above items — 3 — — 3 Equity accounted investments 17 61 — (78 ) — Other comprehensive income 17 17 61 (78 ) 17 Comprehensive income $ 635 $ 639 $ 247 $ (886 ) $ 635 Interim Condensed Consolidating Statements of Comprehensive Income For the three months ended September 30, 2018 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Net income $ 622 $ 615 $ 200 $ (815 ) $ 622 Net gain (loss) in foreign currency translation adjustments, net of hedging activities — 96 (84 ) — 12 Change in derivatives designated as cash flow — 1 — — 1 Change in pension and post-retirement defined — 27 1 — 28 Other comprehensive income (loss) before income taxes — 124 (83 ) — 41 Income tax expense on above items — (22 ) — — (22 ) Equity accounted investments 19 (83 ) — 64 — Other comprehensive income (loss) 19 19 (83 ) 64 19 Comprehensive income $ 641 $ 634 $ 117 $ (751 ) $ 641 Interim Condensed Consolidating Statements of Comprehensive Income For the nine months ended September 30, 2019 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Net income $ 1,776 $ 1,770 $ 568 $ (2,338 ) $ 1,776 Net gain (loss) in foreign currency translation adjustments, net of hedging activities — 173 (150 ) — 23 Change in derivatives designated as cash flow — 8 — — 8 Change in pension and post-retirement defined — 58 3 — 61 Other comprehensive income (loss) before income taxes — 239 (147 ) — 92 Income tax expense on above items — (41 ) — — (41 ) Equity accounted investments 51 (147 ) — 96 — Other comprehensive income (loss) 51 51 (147 ) 96 51 Comprehensive income $ 1,827 $ 1,821 $ 421 $ (2,242 ) $ 1,827 Interim Condensed Consolidating Statements of Comprehensive Income For the nine months ended September 30, 2018 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Net income $ 1,406 $ 1,415 $ 552 $ (1,967 ) $ 1,406 Net (loss) gain in foreign currency translation adjustments, net of hedging activities — (177 ) 153 — (24 ) Change in derivatives designated as cash flow — 36 — — 36 Change in pension and post-retirement defined — 82 4 — 86 Other comprehensive (loss) income before income taxes — (59 ) 157 — 98 Income tax expense on above items — (10 ) (1 ) — (11 ) Equity accounted investments 87 156 — (243 ) — Other comprehensive income 87 87 156 (243 ) 87 Comprehensive income $ 1,493 $ 1,502 $ 708 $ (2,210 ) $ 1,493 Interim Condensed Consolidating Balance Sheets As at September 30, 2019 (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 $ — $ 45 $ 100 $ — $ 145 Accounts receivable, net — 581 189 — 770 Accounts receivable, intercompany 158 136 232 (526 ) — Short-term advances to affiliates — 1,099 4,918 (6,017 ) — Materials and supplies — 150 38 — 188 Other current assets — 51 32 — 83 158 2,062 5,509 (6,543 ) 1,186 Long-term advances to affiliates 1,090 6 86 (1,182 ) — Investments — 31 184 — 215 Investments in subsidiaries 11,748 12,427 — (24,175 ) — Properties — 10,080 8,829 — 18,909 Goodwill and intangible assets — — 195 — 195 Pension asset — 1,572 — — 1,572 Other assets — 167 295 — 462 Deferred income taxes 5 — — (5 ) — Total assets $ 13,001 $ 26,345 $ 15,098 $ (31,905 ) $ 22,539 Liabilities and shareholders’ equity Current liabilities Accounts payable and accrued liabilities $ 128 $ 926 $ 361 $ — $ 1,415 Accounts payable, intercompany 7 383 136 (526 ) — Short-term advances from affiliates 5,651 363 3 (6,017 ) — Long-term debt maturing within one year — 634 41 — 675 5,786 2,306 541 (6,543 ) 2,090 Pension and other benefit liabilities — 640 72 — 712 Long-term advances from affiliates — 1,176 6 (1,182 ) — Other long-term liabilities — 224 355 — 579 Long-term debt — 8,295 13 — 8,308 Deferred income taxes — 1,956 1,684 (5 ) 3,635 Total liabilities 5,786 14,597 2,671 (7,730 ) 15,324 Shareholders’ equity Share capital 1,982 537 6,071 (6,608 ) 1,982 Additional paid-in capital 45 1,648 96 (1,744 ) 45 Accumulated other comprehensive (loss) income (1,992 ) (1,992 ) 692 1,300 (1,992 ) Retained earnings 7,180 11,555 5,568 (17,123 ) 7,180 7,215 11,748 12,427 (24,175 ) 7,215 Total liabilities and shareholders’ equity $ 13,001 $ 26,345 $ 15,098 $ (31,905 ) $ 22,539 Condensed Consolidating Balance Sheets As at December 31, 2018 (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 $ — $ 42 $ 19 $ — $ 61 Accounts receivable, net — 629 186 — 815 Accounts receivable, intercompany 125 167 224 (516 ) — Short-term advances to affiliates — 1,602 4,651 (6,253 ) — Materials and supplies — 136 37 — 173 Other current assets — 39 29 — 68 125 2,615 5,146 (6,769 ) 1,117 Long-term advances to affiliates 1,090 5 93 (1,188 ) — Investments — 24 179 — 203 Investments in subsidiaries 11,443 12,003 — (23,446 ) — Properties — 9,579 8,839 — 18,418 Goodwill and intangible assets — — 202 — 202 Pension asset — 1,243 — — 1,243 Other assets — 57 14 — 71 Deferred income taxes 6 — — (6 ) — Total assets $ 12,664 $ 25,526 $ 14,473 $ (31,409 ) $ 21,254 Liabilities and shareholders’ equity Current liabilities Accounts payable and accrued liabilities $ 115 $ 1,017 $ 317 $ — $ 1,449 Accounts payable, intercompany 4 344 168 (516 ) — Short-term advances from affiliates 5,909 341 3 (6,253 ) — Long-term debt maturing within one year — 506 — — 506 6,028 2,208 488 (6,769 ) 1,955 Pension and other benefit liabilities — 639 79 — 718 Long-term advances from affiliates — 1,182 6 (1,188 ) — Other long-term liabilities — 120 117 — 237 Long-term debt — 8,135 55 — 8,190 Deferred income taxes — 1,799 1,725 (6 ) 3,518 Total liabilities 6,028 14,083 2,470 (7,963 ) 14,618 Shareholders’ equity Share capital 2,002 538 5,946 (6,484 ) 2,002 Additional paid-in capital 42 1,656 92 (1,748 ) 42 Accumulated other comprehensive (loss) income (2,043 ) (2,043 ) 839 1,204 (2,043 ) Retained earnings 6,635 11,292 5,126 (16,418 ) 6,635 6,636 11,443 12,003 (23,446 ) 6,636 Total liabilities and shareholders’ equity $ 12,664 $ 25,526 $ 14,473 $ (31,409 ) $ 21,254 Interim Condensed Consolidating Statements of Cash Flows For the three months ended September 30, 2019 (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 $ 709 $ 608 $ 267 $ (761 ) $ 823 Investing activities Additions to properties — (321 ) (143 ) — (464 ) Proceeds from sale of properties and other assets — 1 3 — 4 Advances to affiliates — — (7 ) 7 — Repayment of advances to affiliates — 101 — (101 ) — Other — — (1 ) — (1 ) Cash used in investing activities — (219 ) (148 ) (94 ) (461 ) Financing activities Dividends paid (116 ) (716 ) (45 ) 761 (116 ) Issuance of CP Common Shares 6 — — — 6 Purchase of CP Common Shares (498 ) (2 ) — — (500 ) Repayment of long-term debt, excluding commercial paper — (6 ) — — (6 ) Net issuance of commercial paper — 355 — — 355 Advances from affiliates — 7 — (7 ) — Repayment of advances from affiliates (101 ) — — 101 — Other — (2 ) — — (2 ) Cash used in financing activities (709 ) (364 ) (45 ) 855 (263 ) Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents — — 1 — 1 Cash position Increase in cash and cash equivalents — 25 75 — 100 Cash and cash equivalents at beginning of period — 20 25 — 45 Cash and cash equivalents at end of period $ — $ 45 $ 100 $ — $ 145 Interim Condensed Consolidating Statements of Cash Flows For the three months ended September 30, 2018 (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 $ 87 $ 416 $ 319 $ (149 ) $ 673 Investing activities Additions to properties — (303 ) (127 ) — (430 ) Proceeds from sale of properties and other assets — 4 3 — 7 Advances to affiliates — — (209 ) 209 — Repayment of advances to affiliates — 499 345 (844 ) — Repurchase of share capital from affiliates 500 236 — (736 ) — Cash provided by (used in) investing activities 500 436 12 (1,371 ) (423 ) Financing activities Dividends paid (92 ) (92 ) (57 ) 149 (92 ) Return of share capital to affiliates — (500 ) (236 ) 736 — Issuance of CP Common Shares 4 — — — 4 Repayment of long-term debt, excluding commercial paper — (5 ) — — (5 ) Net repayment of commercial paper — (53 ) — — (53 ) Advances from affiliates 209 — — (209 ) — Repayment of advances from affiliates (708 ) (136 ) — 844 — Cash used in financing activities (587 ) (786 ) (293 ) 1,520 (146 ) Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents — 17 (22 ) — (5 ) Cash position Increase in cash and cash equivalents — 83 16 — 99 Cash and cash equivalents at beginning of period — 20 31 — 51 Cash and cash equivalents at end of period $ — $ 103 $ 47 $ — $ 150 Interim Condensed Consolidating Statements of Cash Flows For the nine months ended September 30, 2019 (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 $ 1,494 $ 1,371 $ 721 $ (1,629 ) $ 1,957 Investing activities Additions to properties — (778 ) (369 ) — (1,147 ) Proceeds from sale of properties and other assets — 13 5 — 18 Advances to affiliates — (250 ) (267 ) 517 — Repayment of advances to affiliates — 749 4 (753 ) — Capital contributions to affiliates — (125 ) — 125 — Other — 1 (7 ) — (6 ) Cash used in investing activities — (390 ) (634 ) (111 ) (1,135 ) Financing activities Dividends paid (298 ) (1,498 ) (131 ) 1,629 (298 ) Issuance of share capital — — 125 (125 ) — Issuance of CP Common Shares 20 — — — 20 Purchase of CP Common Shares (962 ) (2 ) — — (964 ) Issuance of long-term debt, excluding commercial paper — 397 — — 397 Repayment of long-term debt, excluding commercial paper — (491 ) — — (491 ) Net issuance of commercial paper — 601 — — 601 Advances from affiliates 495 22 — (517 ) — Repayment of advances from affiliates (749 ) (4 ) — 753 — Other — (2 ) — — (2 ) Cash used in financing activities (1,494 ) (977 ) (6 ) 1,740 (737 ) Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents — (1 ) — — (1 ) Cash position Increase in cash and cash equivalents — 3 81 — 84 Cash and cash equivalents at beginning of year — 42 19 — 61 Cash and cash equivalents at end of year $ — $ 45 $ 100 $ — $ 145 Interim Condensed Consolidating Statements of Cash Flows For the nine months ended September 30, 2018 (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 $ 235 $ 1,309 $ 782 $ (545 ) $ 1,781 Investing activities Additions to properties — (701 ) (383 ) — (1,084 ) Proceeds from sale of properties and other assets — 10 6 — 16 Advances to affiliates — (63 ) (209 ) 272 — Repayment of advances to affiliates — — 840 (840 ) — Repurchase of share capital from affiliates 500 783 — (1,283 ) — Other — — (1 ) — (1 ) Cash provided by (used in) investing activities 500 29 253 (1,851 ) (1,069 ) Financing activities Dividends paid (255 ) (255 ) (290 ) 545 (255 ) Return of share capital to affiliates — (500 ) (783 ) 1,283 — Issuance of CP Common Shares 16 — — — 16 Purchase of CP Common Shares (559 ) — — — (559 ) Issuance of long-term debt, excluding commercial paper — 638 — — 638 Repayment of long-term debt, excluding commercial paper — (744 ) — — (744 ) Advances from affiliates 272 — — (272 ) — Repayment of advances from affiliates (209 ) (631 ) — 840 — Cash used in financing activities (735 ) (1,492 ) (1,073 ) 2,396 (904 ) Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents — 16 (12 ) — 4 Cash position Decrease in cash and cash equivalents — (138 ) (50 ) — (188 ) Cash and cash equivalents at beginning of year — 241 97 — 338 Cash and cash equivalents at end of year $ — $ 103 $ 47 $ — $ 150 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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 2018 annual consolidated financial statements and notes included in CP's 2018 Annual Report on Form 10-K. The accounting policies used are consistent with the accounting policies used in preparing the 2018 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 (Policies)
Accounting Changes (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Accounting Changes | Implemented in 2019 Leases On January 1, 2019, the Company adopted the new Accounting Standards Update ("ASU") 2016-02, issued by the Financial Accounting Standards Board ("FASB"), and all related amendments under FASB Accounting Standards Codification ("ASC") Topic 842, Leases. Using the cumulative-effect adjustment transition approach, the Company recognized a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Accordingly, comparative financial information has not been restated and continues to be reported under the accounting standards in effect for those periods. In January 2019, the Company implemented a lease management system to assist in delivering the required accounting changes. To facilitate the transition, the Company made policy choices to utilize available practical expedients provided by the new standard, including the: • Acceptance of the package of practical expedients, permitting the Company not to reassess lease existence, classification, and capitalization of initial direct costs previously determined for all leases under Topic 840, Leases; • Acceptance of the previous accounting treatment for land easements where Topic 840 was not applied; and • Use of hindsight at transition to determine lease term length. Operating leases with fixed terms and in-substance fixed terms were transitioned by recognizing both an operating lease liability and right-of-use ("ROU") asset. Operating lease liabilities and ROU assets were calculated at the present value of remaining lease payments using the Company’s incremental borrowing interest rate as at January 1, 2019. ROU assets were further modified to include previously accrued balances for prepayments and initial direct costs, but reduced for accrued lease incentives. The Company did not recognize operating lease liabilities or ROU assets for leases requiring variable payment not dependent on an index or rate, or short term leases with a term of 12 months or less. On adoption, the standard had a material impact on the Company's consolidated balance sheet, but did not have a significant impact on its consolidated statement of income. The most significant impact was the recognition of operating lease ROU assets and operating lease liabilities, while the Company's accounting for finance leases remained substantially unchanged. The impact of the adoption of ASC 842 as at January 1, 2019 was as follows: (in millions of Canadian dollars) As reported New lease standard As restated Assets Properties $ 18,418 $ (12 ) $ 18,406 Other assets 71 399 470 Liabilities Accounts payable and accrued liabilities $ 1,449 $ 58 $ 1,507 Other long-term liabilities 237 337 574 Deferred income taxes 3,518 (3 ) 3,515 Shareholders' equity Retained earnings $ 6,635 $ (5 ) $ 6,630 There was no significant impact to lessor accounting upon the adoption of ASC 842. Future changes Financial Instruments - Credit Losses In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments under FASB ASC Topic 326. This will replace the current incurred loss methodology used for establishing a provision against financial assets, including accounts receivable, with a forward-looking expected loss methodology for accounts receivable, loans and other financial instruments. The standard is effective as of January 1, 2020. Entities are required to apply the amendments in this update using a modified retrospective approach, through a cumulative-effect adjustment to retained earnings as of the effective date. The Company is currently performing analysis to determine the impact this new accounting standard will have on its financial statements, as well as determining the most appropriate portfolios of financial assets and the expected loss methodology to apply to each portfolio. |
Leases (Policies)
Leases (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | The Company has leases for rolling stock, buildings, vehicles, railway equipment, and roadway machines. CP has entered into rolling stock leases that are fully variable or contain both fixed and variable components. Variable components are dependent on the hours and miles that the underlying equipment has been used. Fixed term, short-term, and variable operating lease costs are recorded in Equipment rents and Purchased services and other on the Company's Interim Consolidated Income Statements. Components of finance lease costs are recorded in Depreciation and amortization and Net interest expense on the Company's Interim Consolidated Income Statements. The Company determines lease existence and classification at the lease inception date. Leases are identified when an agreement conveys the right to control identified property for a period of time in exchange for consideration. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating and finance lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Lease payments include fixed and variable payments that are based on an index or a rate. If the Company's leases do not provide a readily determinable implicit interest rate, the Company uses internal incremental secured borrowing rates for comparable tenor in the same currency at the commencement date in determining the present value of lease payments. Operating and finance lease ROU assets also include lease prepayments and initial direct costs, but are reduced by lease incentives. The lease term may include periods associated with options to extend or exclude periods associated with options to terminate the lease when it is reasonably certain that the Company will exercise these options. The Company’s leases have remaining terms from one to 12 years , some of which include options to extend for up to an additional 10 years and some of which include options to terminate within one year . The Company has short-term operating leases with terms of 12 months or less, some of which include options to purchase that the Company is not reasonably certain to exercise. The Company has elected to apply the recognition exemption and, as such, accounts for leases with a term of 12 months or less off-balance sheet. Therefore, lease payments on these short-term operating leases are not included in operating lease ROU assets and liabilities, but are recognized as an expense in the Company's Consolidated Statements of Income on a straight-line basis over the term of the lease. Further, the Company has elected to combine lease and non-lease components for all leases, except for leases of roadway machines. |
Accounting Changes (Tables)
Accounting Changes (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Impact of ASC 842 Adoption | The impact of the adoption of ASC 842 as at January 1, 2019 was as follows: (in millions of Canadian dollars) As reported New lease standard As restated Assets Properties $ 18,418 $ (12 ) $ 18,406 Other assets 71 399 470 Liabilities Accounts payable and accrued liabilities $ 1,449 $ 58 $ 1,507 Other long-term liabilities 237 337 574 Deferred income taxes 3,518 (3 ) 3,515 Shareholders' equity Retained earnings $ 6,635 $ (5 ) $ 6,630 |
Revenues (Tables)
Revenues (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table disaggregates the Company’s revenues from contracts with customers by major source: For the three months ended September 30 For the nine months ended September 30 (in millions of Canadian dollars) 2019 2018 2019 2018 Freight Grain $ 409 $ 384 $ 1,211 $ 1,113 Coal 183 171 514 486 Potash 117 130 367 358 Fertilizers and sulphur 66 55 186 171 Forest products 78 76 229 211 Energy, chemicals and plastics 382 339 1,043 874 Metals, minerals and consumer products 201 208 579 595 Automotive 87 85 267 247 Intermodal 409 406 1,193 1,133 Total freight revenues 1,932 1,854 5,589 5,188 Non-freight excluding leasing revenues 32 28 89 76 Revenues from contracts with customers 1,964 1,882 5,678 5,264 Leasing revenues 15 16 45 46 Total revenues $ 1,979 $ 1,898 $ 5,723 $ 5,310 |
Contract Liabilities | Contract liabilities Contract liabilities represent payments received for performance obligations not yet satisfied and relate to deferred revenue and are presented as components of Accounts payable and accrued liabilities and Other long-term liabilities on the Company's Interim Consolidated Balance Sheets. The following tables summarize the changes in contract liabilities for the three and nine months ended September 30, 2019 and 2018: For the three months ended September 30 For the nine months ended September 30 (in millions of Canadian dollars) 2019 2018 2019 2018 Opening balance $ 74 $ 3 $ 2 $ 2 Revenue recognized that was included in the contract liability balance at the beginning of the period (8 ) (3 ) (2 ) (2 ) Increases due to consideration received, excluding amounts recognized as revenue during the period 4 2 70 2 Closing balance $ 70 $ 2 $ 70 $ 2 |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Loss ("AOCL") by Component (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Changes in Accumulated Other Comprehensive Loss (AOCL) by Component | Changes in Accumulated other comprehensive loss ("AOCL") by component For the three months ended September 30 (in millions of Canadian dollars) Foreign currency net of hedging activities (1) Derivatives and (1) Pension and post- (1) Total (1) Opening balance, July 1, 2019 $ 112 $ (58 ) $ (2,063 ) $ (2,009 ) Other comprehensive income before reclassifications 1 — — 1 Amounts reclassified from accumulated other comprehensive loss — 1 15 16 Net other comprehensive income 1 1 15 17 Closing balance, September 30, 2019 $ 113 $ (57 ) $ (2,048 ) $ (1,992 ) Opening balance, July 1, 2018 $ 110 $ (64 ) $ (1,719 ) $ (1,673 ) Other comprehensive (loss) income before reclassifications (1 ) (2 ) 1 (2 ) Amounts reclassified from accumulated other comprehensive loss — 2 19 21 Net other comprehensive (loss) income (1 ) — 20 19 Closing balance, September 30, 2018 $ 109 $ (64 ) $ (1,699 ) $ (1,654 ) (1) Amounts are presented net of tax. For the nine months ended September 30 (in millions of Canadian dollars) Foreign currency net of hedging activities (1) Derivatives and (1) Pension and post- (1) Total (1) Opening balance, January 1, 2019 $ 113 $ (62 ) $ (2,094 ) $ (2,043 ) Other comprehensive loss before reclassifications — — (1 ) (1 ) Amounts reclassified from accumulated other comprehensive loss — 5 47 52 Net other comprehensive income — 5 46 51 Closing balance, September 30, 2019 $ 113 $ (57 ) $ (2,048 ) $ (1,992 ) Opening balance, January 1, 2018 $ 109 $ (89 ) $ (1,761 ) $ (1,741 ) Other comprehensive income before reclassifications — 19 — 19 Amounts reclassified from accumulated other comprehensive loss — 6 62 68 Net other comprehensive income — 25 62 87 Closing balance, September 30, 2018 $ 109 $ (64 ) $ (1,699 ) $ (1,654 ) (1) |
Amounts in Pension and Post-retirement Defined Benefit Plans Reclassified from AOCL | Amounts in Pension and post-retirement defined benefit plans reclassified from AOCL are as follows: For the three months ended September 30 For the nine months ended September 30 (in millions of Canadian dollars) 2019 2018 2019 2018 Amortization of prior service costs (1) $ (1 ) $ (1 ) $ — $ (2 ) Recognition of net actuarial loss (1) 21 29 62 88 Total before income tax 20 28 62 86 Income tax recovery (5 ) (9 ) (15 ) (24 ) Total net of income tax $ 15 $ 19 $ 47 $ 62 (1) Impacts " Other components of net periodic benefit recovery " on the Interim Consolidated Statements of Income. |
Other (Income) Expense (Tables)
Other (Income) Expense (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Other Income and Expenses [Abstract] | |
Other Income and Expenses | For the three months ended September 30 For the nine months ended September 30 (in millions of Canadian dollars) 2019 2018 2019 2018 Foreign exchange loss (gain) on debt and lease liabilities $ 25 $ (38 ) $ (57 ) $ 55 Other foreign exchange losses (gains) 2 (1 ) (4 ) 2 Other 2 (8 ) 3 (1 ) Other expense (income) $ 29 $ (47 ) $ (58 ) $ 56 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Tax Expense | For the three months ended September 30 For the nine months ended September 30 (in millions of Canadian dollars) 2019 2018 2019 2018 Current income tax expense $ 115 $ 122 $ 358 $ 288 Deferred income tax expense 96 77 116 155 Income tax expense $ 211 $ 199 $ 474 $ 443 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Number of Shares Used in the Earnings Per Share Calculation | The number of shares used in earnings per share calculations is reconciled as follows: For the three months ended September 30 For the nine months ended September 30 (in millions) 2019 2018 2019 2018 Weighted-average basic shares outstanding 138.1 142.6 139.3 143.2 Dilutive effect of stock options 0.6 0.5 0.5 0.5 Weighted-average diluted shares outstanding 138.7 143.1 139.8 143.7 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense are as follows: For the three months ended September 30 For the nine months ended September 30 (in millions of Canadian dollars) 2019 2019 Operating lease cost $ 22 $ 67 Short-term lease cost 1 3 Variable lease cost 3 9 Sublease income (1 ) (2 ) Finance Lease Cost Amortization of right-of use-assets 2 7 Interest on lease liabilities 3 8 Total lease costs $ 30 $ 92 |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases is as follows: As at September 30 (in millions of Canadian dollars) Classification 2019 Assets Operating Other assets $ 376 Finance Properties, net book value 179 Liabilities Current Operating Accounts payable and accrued liabilities 73 Finance Long-term debt maturing within one year 7 Long-term Operating Other long-term liabilities 297 Finance Long-term debt 148 |
Weighted Average Remaining Lease Terms and Discount Rates | The following table provides the Company's weighted average remaining lease terms and discount rates: As at September 30 (in millions of Canadian dollars) 2019 Weighted Average Remaining Lease Term Operating leases 7 years Finance leases 4 years Weighted Average Discount Rate Operating leases 3.46 % Finance leases 7.05 % |
Supplemental Information Related to Leases | Supplemental information related to leases is as follows: For the three months ended September 30 For the nine months ended September 30 (in millions of Canadian dollars) 2019 2019 Cash paid for amounts included in measurement of lease liabilities Operating cash outflows from operating leases $ 20 $ 66 Operating cash outflows from finance leases 5 10 Financing cash outflows from finance leases 2 4 Right-of-use assets obtained in exchange for lease liabilities Operating leases $ 8 $ 31 Finance leases — 4 |
Maturities of Operating and Finance Lease Liabilities | Maturities of lease liabilities are as follows: As at September 30, 2019 (in millions of Canadian dollars) Finance Leases Operating Leases 2019 $ 3 $ 28 2020 11 69 2021 10 54 2022 110 52 2023 9 40 Thereafter 29 178 Total lease payments $ 172 $ 421 Less: Imputed interest 17 51 Present value of lease payments $ 155 $ 370 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Activities Under Share Repurchase Program | The following table describes activities under the share repurchase program: For the three months ended September 30 For the nine months ended September 30 2019 2018 2019 2018 Number of Common Shares repurchased (1) 1,519,540 — 3,183,461 2,495,962 Weighted-average price per share (2) $ 310.36 $ — $ 299.09 $ 223.97 Amount of repurchase (in millions) (2) $ 471 $ — $ 952 $ 559 (1) Includes shares repurchased but not yet canceled at quarter end. (2) Includes brokerage fees. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value and Carrying Value of Long-term Debt | The carrying values of financial instruments equal or approximate their fair values with the exception of long-term debt: (in millions of Canadian dollars) September 30, 2019 December 31, 2018 Long-term debt (including current maturities): Fair value $ 10,420 $ 9,639 Carrying value 8,983 8,696 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Weighted-Average Fair Value Assumptions | The weighted-average fair value assumptions were approximately: For the nine months ended September 30, 2019 Grant price $272.66 Expected option life (years) (1) 5.00 Risk-free interest rate (2) 2.22% Expected stock price volatility (3) 25.04% Expected annual dividends per share (4) $2.6191 Expected forfeiture rate (5) 6.05% Weighted-average grant date fair value per option granted during the period $63.69 (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 term commensurate with the expected term of the option. (3) Based on the historical volatility of the Company’s stock price 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 May 6, 2019, the Company announced an increase in its quarterly dividend to $0.8300 per share, representing $3.3200 on an annual basis. (5) The Company estimates forfeitures based on past experience. This rate is monitored on a periodic basis. |
Pension and Other Benefits (Tab
Pension and Other Benefits (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Net Periodic Benefit Cost for Defined Benefit Pension Plans and Other Benefits | Net periodic benefit costs for defined benefit pension plans and other benefits recognized in the three and nine months ended September 30, 2019 and 2018 included the following components: For the three months ended September 30 Pensions Other benefits (in millions of Canadian dollars) 2019 2018 2019 2018 Current service cost (benefits earned by employees) $ 27 $ 30 $ 3 $ 3 Other components of net periodic benefit (recovery) cost: Interest cost on benefit obligation 113 110 4 5 Expected return on fund assets (236 ) (239 ) — — Recognized net actuarial loss 20 29 1 — Amortization of prior service costs (1 ) (1 ) — — Total other components of net periodic benefit (recovery) cost (104 ) (101 ) 5 5 Net periodic benefit (recovery) cost $ (77 ) $ (71 ) $ 8 $ 8 For the nine months ended September 30 Pensions Other benefits (in millions of Canadian dollars) 2019 2018 2019 2018 Current service cost (benefits earned by employees) $ 81 $ 90 $ 9 $ 9 Other components of net periodic benefit (recovery) cost: Interest cost on benefit obligation 338 329 14 14 Expected return on fund assets (710 ) (716 ) — — Recognized net actuarial loss 61 86 3 2 Amortization of prior service costs (1 ) (2 ) 1 — Total other components of net periodic benefit (recovery) cost (312 ) (303 ) 18 16 Net periodic benefit (recovery) cost $ (231 ) $ (213 ) $ 27 $ 25 |
Condensed Consolidating Finan_2
Condensed Consolidating Financial Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, 2019 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Revenues Freight $ — $ 1,381 $ 551 $ — $ 1,932 Non-freight — 35 115 (103 ) 47 Total revenues — 1,416 666 (103 ) 1,979 Operating expenses Compensation and benefits — 238 114 3 355 Fuel — 164 46 — 210 Materials — 35 12 3 50 Equipment rents — 36 (3 ) — 33 Depreciation and amortization — 112 73 — 185 Purchased services and other — 194 192 (109 ) 277 Total operating expenses — 779 434 (103 ) 1,110 Operating income — 637 232 — 869 Less: Other expense (income) 3 27 (1 ) — 29 Other components of net periodic benefit (recovery) expense — (100 ) 1 — (99 ) Net interest expense (income) — 118 (8 ) — 110 (Loss) income before income tax expense and equity in net earnings of subsidiaries (3 ) 592 240 — 829 Less: Income tax expense 1 156 54 — 211 Add: Equity in net earnings of subsidiaries 622 186 — (808 ) — Net income $ 618 $ 622 $ 186 $ (808 ) $ 618 Interim Condensed Consolidating Statements of Income For the three months ended September 30, 2018 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Revenues Freight $ — $ 1,316 $ 538 $ — $ 1,854 Non-freight — 31 92 (79 ) 44 Total revenues — 1,347 630 (79 ) 1,898 Operating expenses Compensation and benefits — 246 117 2 365 Fuel — 177 49 — 226 Materials — 33 11 3 47 Equipment rents — 27 6 — 33 Depreciation and amortization — 105 69 — 174 Purchased services and other — 224 123 (84 ) 263 Total operating expenses — 812 375 (79 ) 1,108 Operating income — 535 255 — 790 Less: Other (income) expense (4 ) (46 ) 3 — (47 ) Other components of net periodic benefit (recovery) expense — (97 ) 1 — (96 ) Net interest (income) expense (2 ) 121 (7 ) — 112 Income before income tax expense and equity in net earnings of subsidiaries 6 557 258 — 821 Less: Income tax (recovery) expense (1 ) 142 58 — 199 Add: Equity in net earnings of subsidiaries 615 200 — (815 ) — Net income $ 622 $ 615 $ 200 $ (815 ) $ 622 Interim Condensed Consolidating Statements of Income For the nine months ended September 30, 2019 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Revenues Freight $ — $ 4,028 $ 1,561 $ — $ 5,589 Non-freight — 98 344 (308 ) 134 Total revenues — 4,126 1,905 (308 ) 5,723 Operating expenses Compensation and benefits — 769 369 6 1,144 Fuel — 518 137 — 655 Materials — 110 40 11 161 Equipment rents — 116 (14 ) — 102 Depreciation and amortization — 318 210 — 528 Purchased services and other — 712 512 (325 ) 899 Total operating expenses — 2,543 1,254 (308 ) 3,489 Operating income — 1,583 651 — 2,234 Less: Other (income) expense (7 ) (54 ) 3 — (58 ) Other components of net periodic benefit (recovery) expense — (298 ) 4 — (294 ) Net interest (income) expense (2 ) 360 (22 ) — 336 Income before income tax expense and equity in net earnings of subsidiaries 9 1,575 666 — 2,250 Less: Income tax expense 3 373 98 — 474 Add: Equity in net earnings of subsidiaries 1,770 568 — (2,338 ) — Net income $ 1,776 $ 1,770 $ 568 $ (2,338 ) $ 1,776 Interim Condensed Consolidating Statements of Income For the nine months ended September 30, 2018 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Revenues Freight $ — $ 3,667 $ 1,521 $ — $ 5,188 Non-freight — 89 271 (238 ) 122 Total revenues — 3,756 1,792 (238 ) 5,310 Operating expenses Compensation and benefits — 740 346 4 1,090 Fuel — 523 148 — 671 Materials — 106 38 11 155 Equipment rents — 88 11 — 99 Depreciation and amortization — 314 202 — 516 Purchased services and other — 647 428 (253 ) 822 Total operating expenses — 2,418 1,173 (238 ) 3,353 Operating income — 1,338 619 — 1,957 Less: Other expense (income) 7 81 (32 ) — 56 Other components of net periodic benefit (recovery) expense — (289 ) 2 — (287 ) Net interest expense (income) 4 356 (21 ) — 339 (Loss) income before income tax expense and equity in net earnings of subsidiaries (11 ) 1,190 670 — 1,849 Less: Income tax (recovery) expense (2 ) 327 118 — 443 Add: Equity in net earnings of subsidiaries 1,415 552 — (1,967 ) — Net income $ 1,406 $ 1,415 $ 552 $ (1,967 ) $ 1,406 |
Interim Condensed Consolidating Statements of Comprehensive Income | Interim Condensed Consolidating Statements of Comprehensive Income For the three months ended September 30, 2019 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Net income $ 618 $ 622 $ 186 $ (808 ) $ 618 Net (loss) gain in foreign currency translation adjustments, net of hedging activities — (68 ) 60 — (8 ) Change in derivatives designated as cash flow — 2 — — 2 Change in pension and post-retirement defined — 19 1 — 20 Other comprehensive (loss) income before income taxes — (47 ) 61 — 14 Income tax recovery on above items — 3 — — 3 Equity accounted investments 17 61 — (78 ) — Other comprehensive income 17 17 61 (78 ) 17 Comprehensive income $ 635 $ 639 $ 247 $ (886 ) $ 635 Interim Condensed Consolidating Statements of Comprehensive Income For the three months ended September 30, 2018 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Net income $ 622 $ 615 $ 200 $ (815 ) $ 622 Net gain (loss) in foreign currency translation adjustments, net of hedging activities — 96 (84 ) — 12 Change in derivatives designated as cash flow — 1 — — 1 Change in pension and post-retirement defined — 27 1 — 28 Other comprehensive income (loss) before income taxes — 124 (83 ) — 41 Income tax expense on above items — (22 ) — — (22 ) Equity accounted investments 19 (83 ) — 64 — Other comprehensive income (loss) 19 19 (83 ) 64 19 Comprehensive income $ 641 $ 634 $ 117 $ (751 ) $ 641 Interim Condensed Consolidating Statements of Comprehensive Income For the nine months ended September 30, 2019 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Net income $ 1,776 $ 1,770 $ 568 $ (2,338 ) $ 1,776 Net gain (loss) in foreign currency translation adjustments, net of hedging activities — 173 (150 ) — 23 Change in derivatives designated as cash flow — 8 — — 8 Change in pension and post-retirement defined — 58 3 — 61 Other comprehensive income (loss) before income taxes — 239 (147 ) — 92 Income tax expense on above items — (41 ) — — (41 ) Equity accounted investments 51 (147 ) — 96 — Other comprehensive income (loss) 51 51 (147 ) 96 51 Comprehensive income $ 1,827 $ 1,821 $ 421 $ (2,242 ) $ 1,827 Interim Condensed Consolidating Statements of Comprehensive Income For the nine months ended September 30, 2018 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Net income $ 1,406 $ 1,415 $ 552 $ (1,967 ) $ 1,406 Net (loss) gain in foreign currency translation adjustments, net of hedging activities — (177 ) 153 — (24 ) Change in derivatives designated as cash flow — 36 — — 36 Change in pension and post-retirement defined — 82 4 — 86 Other comprehensive (loss) income before income taxes — (59 ) 157 — 98 Income tax expense on above items — (10 ) (1 ) — (11 ) Equity accounted investments 87 156 — (243 ) — Other comprehensive income 87 87 156 (243 ) 87 Comprehensive income $ 1,493 $ 1,502 $ 708 $ (2,210 ) $ 1,493 |
Interim Condensed Consolidating Balance Sheets | Interim Condensed Consolidating Balance Sheets As at September 30, 2019 (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 $ — $ 45 $ 100 $ — $ 145 Accounts receivable, net — 581 189 — 770 Accounts receivable, intercompany 158 136 232 (526 ) — Short-term advances to affiliates — 1,099 4,918 (6,017 ) — Materials and supplies — 150 38 — 188 Other current assets — 51 32 — 83 158 2,062 5,509 (6,543 ) 1,186 Long-term advances to affiliates 1,090 6 86 (1,182 ) — Investments — 31 184 — 215 Investments in subsidiaries 11,748 12,427 — (24,175 ) — Properties — 10,080 8,829 — 18,909 Goodwill and intangible assets — — 195 — 195 Pension asset — 1,572 — — 1,572 Other assets — 167 295 — 462 Deferred income taxes 5 — — (5 ) — Total assets $ 13,001 $ 26,345 $ 15,098 $ (31,905 ) $ 22,539 Liabilities and shareholders’ equity Current liabilities Accounts payable and accrued liabilities $ 128 $ 926 $ 361 $ — $ 1,415 Accounts payable, intercompany 7 383 136 (526 ) — Short-term advances from affiliates 5,651 363 3 (6,017 ) — Long-term debt maturing within one year — 634 41 — 675 5,786 2,306 541 (6,543 ) 2,090 Pension and other benefit liabilities — 640 72 — 712 Long-term advances from affiliates — 1,176 6 (1,182 ) — Other long-term liabilities — 224 355 — 579 Long-term debt — 8,295 13 — 8,308 Deferred income taxes — 1,956 1,684 (5 ) 3,635 Total liabilities 5,786 14,597 2,671 (7,730 ) 15,324 Shareholders’ equity Share capital 1,982 537 6,071 (6,608 ) 1,982 Additional paid-in capital 45 1,648 96 (1,744 ) 45 Accumulated other comprehensive (loss) income (1,992 ) (1,992 ) 692 1,300 (1,992 ) Retained earnings 7,180 11,555 5,568 (17,123 ) 7,180 7,215 11,748 12,427 (24,175 ) 7,215 Total liabilities and shareholders’ equity $ 13,001 $ 26,345 $ 15,098 $ (31,905 ) $ 22,539 Condensed Consolidating Balance Sheets As at December 31, 2018 (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 $ — $ 42 $ 19 $ — $ 61 Accounts receivable, net — 629 186 — 815 Accounts receivable, intercompany 125 167 224 (516 ) — Short-term advances to affiliates — 1,602 4,651 (6,253 ) — Materials and supplies — 136 37 — 173 Other current assets — 39 29 — 68 125 2,615 5,146 (6,769 ) 1,117 Long-term advances to affiliates 1,090 5 93 (1,188 ) — Investments — 24 179 — 203 Investments in subsidiaries 11,443 12,003 — (23,446 ) — Properties — 9,579 8,839 — 18,418 Goodwill and intangible assets — — 202 — 202 Pension asset — 1,243 — — 1,243 Other assets — 57 14 — 71 Deferred income taxes 6 — — (6 ) — Total assets $ 12,664 $ 25,526 $ 14,473 $ (31,409 ) $ 21,254 Liabilities and shareholders’ equity Current liabilities Accounts payable and accrued liabilities $ 115 $ 1,017 $ 317 $ — $ 1,449 Accounts payable, intercompany 4 344 168 (516 ) — Short-term advances from affiliates 5,909 341 3 (6,253 ) — Long-term debt maturing within one year — 506 — — 506 6,028 2,208 488 (6,769 ) 1,955 Pension and other benefit liabilities — 639 79 — 718 Long-term advances from affiliates — 1,182 6 (1,188 ) — Other long-term liabilities — 120 117 — 237 Long-term debt — 8,135 55 — 8,190 Deferred income taxes — 1,799 1,725 (6 ) 3,518 Total liabilities 6,028 14,083 2,470 (7,963 ) 14,618 Shareholders’ equity Share capital 2,002 538 5,946 (6,484 ) 2,002 Additional paid-in capital 42 1,656 92 (1,748 ) 42 Accumulated other comprehensive (loss) income (2,043 ) (2,043 ) 839 1,204 (2,043 ) Retained earnings 6,635 11,292 5,126 (16,418 ) 6,635 6,636 11,443 12,003 (23,446 ) 6,636 Total liabilities and shareholders’ equity $ 12,664 $ 25,526 $ 14,473 $ (31,409 ) $ 21,254 |
Interim Condensed Consolidating Statements of Cash Flows | Interim Condensed Consolidating Statements of Cash Flows For the three months ended September 30, 2019 (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 $ 709 $ 608 $ 267 $ (761 ) $ 823 Investing activities Additions to properties — (321 ) (143 ) — (464 ) Proceeds from sale of properties and other assets — 1 3 — 4 Advances to affiliates — — (7 ) 7 — Repayment of advances to affiliates — 101 — (101 ) — Other — — (1 ) — (1 ) Cash used in investing activities — (219 ) (148 ) (94 ) (461 ) Financing activities Dividends paid (116 ) (716 ) (45 ) 761 (116 ) Issuance of CP Common Shares 6 — — — 6 Purchase of CP Common Shares (498 ) (2 ) — — (500 ) Repayment of long-term debt, excluding commercial paper — (6 ) — — (6 ) Net issuance of commercial paper — 355 — — 355 Advances from affiliates — 7 — (7 ) — Repayment of advances from affiliates (101 ) — — 101 — Other — (2 ) — — (2 ) Cash used in financing activities (709 ) (364 ) (45 ) 855 (263 ) Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents — — 1 — 1 Cash position Increase in cash and cash equivalents — 25 75 — 100 Cash and cash equivalents at beginning of period — 20 25 — 45 Cash and cash equivalents at end of period $ — $ 45 $ 100 $ — $ 145 Interim Condensed Consolidating Statements of Cash Flows For the three months ended September 30, 2018 (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 $ 87 $ 416 $ 319 $ (149 ) $ 673 Investing activities Additions to properties — (303 ) (127 ) — (430 ) Proceeds from sale of properties and other assets — 4 3 — 7 Advances to affiliates — — (209 ) 209 — Repayment of advances to affiliates — 499 345 (844 ) — Repurchase of share capital from affiliates 500 236 — (736 ) — Cash provided by (used in) investing activities 500 436 12 (1,371 ) (423 ) Financing activities Dividends paid (92 ) (92 ) (57 ) 149 (92 ) Return of share capital to affiliates — (500 ) (236 ) 736 — Issuance of CP Common Shares 4 — — — 4 Repayment of long-term debt, excluding commercial paper — (5 ) — — (5 ) Net repayment of commercial paper — (53 ) — — (53 ) Advances from affiliates 209 — — (209 ) — Repayment of advances from affiliates (708 ) (136 ) — 844 — Cash used in financing activities (587 ) (786 ) (293 ) 1,520 (146 ) Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents — 17 (22 ) — (5 ) Cash position Increase in cash and cash equivalents — 83 16 — 99 Cash and cash equivalents at beginning of period — 20 31 — 51 Cash and cash equivalents at end of period $ — $ 103 $ 47 $ — $ 150 Interim Condensed Consolidating Statements of Cash Flows For the nine months ended September 30, 2019 (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 $ 1,494 $ 1,371 $ 721 $ (1,629 ) $ 1,957 Investing activities Additions to properties — (778 ) (369 ) — (1,147 ) Proceeds from sale of properties and other assets — 13 5 — 18 Advances to affiliates — (250 ) (267 ) 517 — Repayment of advances to affiliates — 749 4 (753 ) — Capital contributions to affiliates — (125 ) — 125 — Other — 1 (7 ) — (6 ) Cash used in investing activities — (390 ) (634 ) (111 ) (1,135 ) Financing activities Dividends paid (298 ) (1,498 ) (131 ) 1,629 (298 ) Issuance of share capital — — 125 (125 ) — Issuance of CP Common Shares 20 — — — 20 Purchase of CP Common Shares (962 ) (2 ) — — (964 ) Issuance of long-term debt, excluding commercial paper — 397 — — 397 Repayment of long-term debt, excluding commercial paper — (491 ) — — (491 ) Net issuance of commercial paper — 601 — — 601 Advances from affiliates 495 22 — (517 ) — Repayment of advances from affiliates (749 ) (4 ) — 753 — Other — (2 ) — — (2 ) Cash used in financing activities (1,494 ) (977 ) (6 ) 1,740 (737 ) Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents — (1 ) — — (1 ) Cash position Increase in cash and cash equivalents — 3 81 — 84 Cash and cash equivalents at beginning of year — 42 19 — 61 Cash and cash equivalents at end of year $ — $ 45 $ 100 $ — $ 145 Interim Condensed Consolidating Statements of Cash Flows For the nine months ended September 30, 2018 (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 $ 235 $ 1,309 $ 782 $ (545 ) $ 1,781 Investing activities Additions to properties — (701 ) (383 ) — (1,084 ) Proceeds from sale of properties and other assets — 10 6 — 16 Advances to affiliates — (63 ) (209 ) 272 — Repayment of advances to affiliates — — 840 (840 ) — Repurchase of share capital from affiliates 500 783 — (1,283 ) — Other — — (1 ) — (1 ) Cash provided by (used in) investing activities 500 29 253 (1,851 ) (1,069 ) Financing activities Dividends paid (255 ) (255 ) (290 ) 545 (255 ) Return of share capital to affiliates — (500 ) (783 ) 1,283 — Issuance of CP Common Shares 16 — — — 16 Purchase of CP Common Shares (559 ) — — — (559 ) Issuance of long-term debt, excluding commercial paper — 638 — — 638 Repayment of long-term debt, excluding commercial paper — (744 ) — — (744 ) Advances from affiliates 272 — — (272 ) — Repayment of advances from affiliates (209 ) (631 ) — 840 — Cash used in financing activities (735 ) (1,492 ) (1,073 ) 2,396 (904 ) Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents — 16 (12 ) — 4 Cash position Decrease in cash and cash equivalents — (138 ) (50 ) — (188 ) Cash and cash equivalents at beginning of year — 241 97 — 338 Cash and cash equivalents at end of year $ — $ 103 $ 47 $ — $ 150 |
Accounting Changes - Impact of
Accounting Changes - Impact of ASC 842 Adoption (Details) - CAD ($) $ in Millions | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Properties | $ 18,909 | $ 18,406 | $ 18,418 |
Other assets | 462 | 470 | 71 |
Accounts payable and accrued liabilities | 1,415 | 1,507 | 1,449 |
Other long-term liabilities | 579 | 574 | 237 |
Deferred income taxes | 3,635 | 3,515 | 3,518 |
Retained earnings | $ 7,180 | 6,630 | $ 6,635 |
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Properties | (12) | ||
Other assets | 399 | ||
Accounts payable and accrued liabilities | 58 | ||
Other long-term liabilities | 337 | ||
Deferred income taxes | (3) | ||
Retained earnings | $ (5) |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenue (Details) - CAD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 1,964 | $ 1,882 | $ 5,678 | $ 5,264 |
Leasing revenues | 15 | 16 | 45 | 46 |
Total revenues | 1,979 | 1,898 | 5,723 | 5,310 |
Freight [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 1,932 | 1,854 | 5,589 | 5,188 |
Total revenues | 1,932 | 1,854 | 5,589 | 5,188 |
Grain | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 409 | 384 | 1,211 | 1,113 |
Coal | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 183 | 171 | 514 | 486 |
Potash | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 117 | 130 | 367 | 358 |
Fertilizers and sulphur | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 66 | 55 | 186 | 171 |
Forest products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 78 | 76 | 229 | 211 |
Energy, chemicals and plastics | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 382 | 339 | 1,043 | 874 |
Metals, minerals and consumer products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 201 | 208 | 579 | 595 |
Automotive | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 87 | 85 | 267 | 247 |
Intermodal | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 409 | 406 | 1,193 | 1,133 |
Non-freight | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 32 | 28 | 89 | 76 |
Total revenues | $ 47 | $ 44 | $ 134 | $ 122 |
Revenues - Contract Liabilities
Revenues - Contract Liabilities (Details) - CAD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Contract with Customer, Liability [Abstract] | ||||
Contract liability, opening balance | $ 74 | $ 3 | $ 2 | $ 2 |
Revenue recognized that was included in the contract liability balance at the beginning of the period | (8) | (3) | (2) | (2) |
Increases due to consideration received, excluding amounts recognized as revenue during the period | 4 | 2 | 70 | 2 |
Contract liability, closing balance | $ 70 | $ 2 | $ 70 | $ 2 |
Changes in Accumulated Other _3
Changes in Accumulated Other Comprehensive Loss ("AOCL") by Component - Changes in Accumulated Other Comprehensive Loss (AOCL) by Component (Details) - CAD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
AOC Income (Loss), Opening balance | $ (2,009) | $ (1,673) | $ (2,043) | $ (1,741) |
Other comprehensive income (loss) before reclassifications | 1 | (2) | (1) | 19 |
Amounts reclassified from accumulated other comprehensive loss | 16 | 21 | 52 | 68 |
Net current-period other comprehensive income (loss) | 17 | 19 | 51 | 87 |
AOC Income (Loss), Closing balance | (1,992) | (1,654) | (1,992) | (1,654) |
Foreign currency net of hedging activities | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
AOC Income (Loss), Opening balance | 112 | 110 | 113 | 109 |
Other comprehensive income (loss) before reclassifications | 1 | (1) | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | 0 |
Net current-period other comprehensive income (loss) | 1 | (1) | 0 | 0 |
AOC Income (Loss), Closing balance | 113 | 109 | 113 | 109 |
Derivatives and other | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
AOC Income (Loss), Opening balance | (58) | (64) | (62) | (89) |
Other comprehensive income (loss) before reclassifications | 0 | (2) | 0 | 19 |
Amounts reclassified from accumulated other comprehensive loss | 1 | 2 | 5 | 6 |
Net current-period other comprehensive income (loss) | 1 | 0 | 5 | 25 |
AOC Income (Loss), Closing balance | (57) | (64) | (57) | (64) |
Pension and post-retirement defined benefit plans | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
AOC Income (Loss), Opening balance | (2,063) | (1,719) | (2,094) | (1,761) |
Other comprehensive income (loss) before reclassifications | 0 | 1 | (1) | 0 |
Amounts reclassified from accumulated other comprehensive loss | 15 | 19 | 47 | 62 |
Net current-period other comprehensive income (loss) | 15 | 20 | 46 | 62 |
AOC Income (Loss), Closing balance | $ (2,048) | $ (1,699) | $ (2,048) | $ (1,699) |
Changes in Accumulated Other _4
Changes in Accumulated Other Comprehensive Loss ("AOCL") by Component - Amounts in Pension and Post-retirement Defined Benefit Plans Reclassified from AOCL (Details) - CAD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Income tax expense (recovery) | $ 211 | $ 199 | $ 474 | $ 443 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amortization of prior service costs | (1) | (1) | 0 | (2) |
Recognition of net actuarial loss | 21 | 29 | 62 | 88 |
Total before income tax | 20 | 28 | 62 | 86 |
Income tax expense (recovery) | (5) | (9) | (15) | (24) |
Total net of income tax | $ 15 | $ 19 | $ 47 | $ 62 |
Other (Income) Expense - Other
Other (Income) Expense - Other Income and Expenses (Details) - CAD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Other Income and Expenses [Abstract] | ||||
Foreign exchange loss (gain) on debt and lease liabilities | $ 25 | $ (38) | $ (57) | $ 55 |
Other foreign exchange losses (gains) | 2 | (1) | (4) | 2 |
Other | 2 | (8) | 3 | (1) |
Other expense (income) | $ 29 | $ (47) | $ (58) | $ 56 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Expense (Details) - CAD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Current income tax expense | $ 115 | $ 122 | $ 358 | $ 288 |
Deferred income tax (recovery) expense | 96 | 77 | 116 | 155 |
Income tax expense | $ 211 | $ 199 | $ 474 | $ 443 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - CAD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Effect of change in enacted tax rate | $ (88) | $ (21) | ||
Effective tax rate | 25.43% | 24.23% | 21.06% | 23.95% |
Foreign exchange loss (gain) on debt and lease liabilities | $ 25 | $ (38) | $ (57) | $ 55 |
Effective tax rate, excluding discrete items | 25.11% | 24.75% | 25.50% | 24.75% |
Earnings Per Share - Number of
Earnings Per Share - Number of Shares Used in the Earnings Per Share Calculations (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Weighted average basic shares outstanding | 138.1 | 142.6 | 139.3 | 143.2 |
Dilutive effect of stock options | 0.6 | 0.5 | 0.5 | 0.5 |
Weighted average diluted shares outstanding | 138.7 | 143.1 | 139.8 | 143.7 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||||||||
Number of shares outstanding | 137.5 | 142.6 | 137.5 | 142.6 | 139.1 | 140.5 | 140.5 | 142.5 | 144.9 |
Stock Options | |||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||
Number of options excluded from the computation of diluted earnings per share | 0 | 0.3 | 0.1 | 0.2 |
Debt - Narrative (Details)
Debt - Narrative (Details) | 3 Months Ended | 9 Months Ended | |||||||
Jun. 30, 2019CAD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019CAD ($) | Jun. 30, 2018USD ($) | Sep. 30, 2019CAD ($) | Sep. 30, 2019USD ($) | Sep. 27, 2019USD ($) | Dec. 31, 2018CAD ($) | Dec. 31, 2018USD ($) | |
Debt Instrument [Line Items] | |||||||||
Commercial Paper | $ 603,000,000 | $ 455,000,000 | $ 0 | ||||||
Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,300,000,000 | $ 1,000,000,000 | |||||||
Current borrowing capacity | 1,300,000,000 | ||||||||
U.S $1.0 Billion Tranche | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000,000,000 | ||||||||
U.S. $3 Million Tranche | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 300,000,000 | ||||||||
Bilateral Letter of Credit Facilities | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 300,000,000 | $ 600,000,000 | |||||||
Commercial Paper | |||||||||
Debt Instrument [Line Items] | |||||||||
Current borrowing capacity | $ 1,000,000,000 | ||||||||
Weighted average interest rate, Commercial paper | 2.38% | ||||||||
CAD $400 million 3.150% 10-year Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, Interest rate | 3.15% | 4.00% | |||||||
Debt instrument, Term | 10 years | 10 years | |||||||
Debt instrument, Face amount | $ 400,000,000 | $ 500,000,000 | |||||||
Debt instrument, Maturity date | Mar. 13, 2029 | ||||||||
Proceeds from issuance of debt | $ 397,000,000 | ||||||||
U.S. $350 million 7.250% 10-year Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Retirement of long-term debt, Amount | $ 471,000,000 | $ 350,000,000 | |||||||
Debt instrument, Interest rate | 7.25% | 7.25% | |||||||
Debt instrument, Term | 10 years | 10 years |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019CAD ($) | |
Lessee, Lease, Description [Line Items] | |
Operating lease, Option to extend | P10Y |
Operating lease, Option to terminate | P1Y |
Operating lease, Residual value guarantee | $ 2 |
Minimum [Member] | |
Lessee, Lease, Description [Line Items] | |
Operating lease, Term of contract | 1 year |
Finance lease, Term of contract | 1 year |
Maximum [Member] | |
Lessee, Lease, Description [Line Items] | |
Operating lease, Term of contract | 12 years |
Finance lease, Term of contract | 12 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - CAD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 22 | $ 67 |
Short-term lease cost | 1 | 3 |
Variable lease cost | 3 | 9 |
Sublease income | (1) | (2) |
Finance lease cost, Amortization of right-of-use assets | 2 | 7 |
Finance lease cost, Interest on lease liabilities | 3 | 8 |
Total lease costs | $ 30 | $ 92 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) $ in Millions | Sep. 30, 2019CAD ($) |
Leases [Abstract] | |
Operating lease, ROU asset | $ 376 |
Finance lease, ROU asset | 179 |
Operating lease, ROU liability, current | 73 |
Finance lease, ROU liability, current | 7 |
Operating lease, ROU liability, non-current | 297 |
Finance lease, ROU liability, non-current | $ 148 |
Leases - Weighted Average Remai
Leases - Weighted Average Remaining Lease Terms and Discount Rates (Details) | Sep. 30, 2019 |
Leases [Abstract] | |
Operating lease, Weighted average remaining lease term | 7 years |
Finance lease, Weighted average remaining lease term | 4 years |
Operating lease, Weighted average discount rate | 3.46% |
Finance lease, Weighted average discount rate | 7.05% |
Leases - Supplemental Informati
Leases - Supplemental Information Related to Leases (Details) - CAD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Operating cash outflows from operating leases | $ 20 | $ 66 |
Operating cash outflows from finance leases | 5 | 10 |
Financing cash outflows from finance leases | 2 | 4 |
Right-of-use assets obtained in exchange for operating lease liabilities | 8 | 31 |
Right-of-use assets obtained in exchange for finance lease liabilities | $ 0 | $ 4 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) $ in Millions | Sep. 30, 2019CAD ($) |
Leases [Abstract] | |
Finance lease, Payments due remainder of year one | $ 3 |
Finance lease, Payments due year two | 11 |
Finance lease, Payments due year three | 10 |
Finance lease, Payments due year four | 110 |
Finance lease, Payments due year five | 9 |
Finance lease, Payments due after year five | 29 |
Finance lease, Total lease payments | 172 |
Finance lease, Imputed interest | 17 |
Finance lease, Present value of lease payments | 155 |
Operating lease, Payments due remainder of year one | 28 |
Operating lease, Payments due year two | 69 |
Operating lease, Payments due year three | 54 |
Operating lease, Payments due year four | 52 |
Operating lease, Payments due year five | 40 |
Operating lease, Payments due after year five | 178 |
Operating lease, Total lease payments | 421 |
Operating lease, Imputed interest | 51 |
Operating lease, Present value of lease payments | $ 370 |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - CAD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 11 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Oct. 19, 2018 | May 10, 2017 | |
Number of Common Shares repurchased | 1,600,000 | 3,200,000 | 2,500,000 | ||||
Amount of repurchase (in millions) | $ 471 | $ 952 | $ 559 | ||||
Current Normal Course Issuer Bid (NCIB) [Member] | |||||||
Common Shares authorized to be repurchased | 5,680,000 | ||||||
Number of Common Shares repurchased | 1,519,540 | 3,183,461 | 5,370,000 | ||||
Amount of repurchase (in millions) | $ 471 | $ 952 | $ 1,520 | ||||
2017 Normal Course Issuer Bid (NCIB) [Member] | |||||||
Common Shares authorized to be repurchased | 4,380,000 | ||||||
Number of Common Shares repurchased | 0 | 2,495,962 | |||||
Amount of repurchase (in millions) | $ 0 | $ 559 |
Shareholders' Equity - Activiti
Shareholders' Equity - Activities Under Share Repurchase Program (Detail) - CAD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | 11 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | |
Number of Common Shares repurchased | 1,600,000 | 3,200,000 | 2,500,000 | ||
Amount of repurchase (in millions) | $ 471 | $ 952 | $ 559 | ||
Current Normal Course Issuer Bid (NCIB) [Member] | |||||
Number of Common Shares repurchased | 1,519,540 | 3,183,461 | 5,370,000 | ||
Weighted-average price per share | $ 310.36 | $ 299.09 | |||
Amount of repurchase (in millions) | $ 471 | $ 952 | $ 1,520 | ||
2017 Normal Course Issuer Bid (NCIB) [Member] | |||||
Number of Common Shares repurchased | 0 | 2,495,962 | |||
Weighted-average price per share | $ 0 | $ 223.97 | |||
Amount of repurchase (in millions) | $ 0 | $ 559 |
Financial Instruments - Fair Va
Financial Instruments - Fair Value and Carrying Value of Long-term Debt (Details) - CAD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Schedule of Investments [Line Items] | ||
Long-term Debt, Fair value | $ 10,420 | $ 9,639 |
Carrying Value Measurement [Member] | ||
Schedule of Investments [Line Items] | ||
Long-term Debt, Carrying value | $ 8,983 | $ 8,696 |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2019CAD ($) | Mar. 31, 2019CAD ($) | Sep. 30, 2018CAD ($) | Jun. 30, 2018CAD ($) | Sep. 30, 2019CAD ($) | Sep. 30, 2018CAD ($) | Jun. 30, 2018USD ($) | |
U.S. $500 million 4.000% 10-year Notes | |||||||
Schedule of Investments [Line Items] | |||||||
Debt instrument, Face amount | $ 400,000,000 | $ 500,000,000 | |||||
Debt instrument, Interest rate | 3.15% | 4.00% | 4.00% | ||||
Debt instrument, Term | 10 years | 10 years | |||||
Forward Starting Swaps [Member] | |||||||
Schedule of Investments [Line Items] | |||||||
Floating-to-fixed interest rate swaps, Notional amount | $ 500,000,000 | ||||||
Fair value loss | $ 24,000,000 | $ 19,000,000 | |||||
Gain on Derivative | $ 0 | $ 0 | $ 31,000,000 | ||||
Forward Starting Swaps [Member] | Net Interest Expense [Member] | |||||||
Schedule of Investments [Line Items] | |||||||
Derivative losses amortized to net interest expense | $ 2,000,000 | 2,000,000 | 7,000,000 | 7,000,000 | |||
Derivative losses expected to be amortized to net interest expense | 9,000,000 | ||||||
Net Investment Hedging [Member] | |||||||
Schedule of Investments [Line Items] | |||||||
Gain (Loss) on Derivative, Net | $ (68,000,000) | $ 96,000,000 | $ 172,000,000 | $ (177,000,000) |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - CAD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expense | $ 15 | $ 28 | $ 88 | $ 60 | ||
Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of options issued (shares) | 224,730 | |||||
Weighted average grant price | $ 272.66 | |||||
Expiration period | 7 years | |||||
Grant date fair value, options | $ 14 | |||||
Stock Options | Minimum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 12 months | |||||
Stock Options | Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 48 months | |||||
Performance Share Units (PSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Units issued | 133,681 | |||||
PSU payout percentage | 177.00% | |||||
Number of trading days | 30 days | |||||
PSU cash payout | $ 54 | |||||
Units vested in the period | 117,228 | |||||
Performance Share Units (PSUs) | Regular and Retention Grant [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 3 years | |||||
Units issued | 134,260 | |||||
Grant date fair value, other than options | $ 36 | |||||
Performance Share Units (PSUs) | Retention Grant [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Units issued | 579 | |||||
Deferred Share Units (DSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 48 months | |||||
Units issued | 17,653 | |||||
Grant date fair value, other than options | $ 5 |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted-Average Fair Value Assumptions (Details) - CAD ($) | May 06, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Dividends declared per share | $ 0.8300 | $ 0.6500 | $ 2.3100 | $ 1.8625 | ||
Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted average grant price | $ 272.66 | |||||
Expected option life (years) | 5 years | |||||
Risk-free interest rate | 2.22% | |||||
Expected stock price volatility | 25.04% | |||||
Expected annual dividends per share | $ 2.6191 | |||||
Estimated forfeiture rate | 6.05% | |||||
Weighted average grant date fair value per option granted during the period | $ 63.69 | |||||
Dividends declared per share | $ 0.8300 | |||||
Stock Options | Forecast [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Expected annual dividends per share | $ 3.3200 |
Pension and Other Benefits - Na
Pension and Other Benefits - Narrative (Details) - Pension Plans, Defined Benefit [Member] - CAD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Contributions made by the company | $ 17 | $ 13 | $ 40 | $ 25 |
Refund of plan surplus | $ 10 |
Pension and Other Benefits - Ne
Pension and Other Benefits - Net Periodic Benefit Cost for DB Pension Plans and Other Benefits (Details) - CAD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Defined Benefit Plan and Other Postretirement Benefit Plans | ||||
Total other components of net periodic benefit (recovery) cost | $ (99) | $ (96) | $ (294) | $ (287) |
Pension Plans, Defined Benefit [Member] | ||||
Defined Benefit Plan and Other Postretirement Benefit Plans | ||||
Current service cost (benefits earned by employees) | 27 | 30 | 81 | 90 |
Interest cost on benefit obligation | 113 | 110 | 338 | 329 |
Expected return on fund assets | (236) | (239) | (710) | (716) |
Recognized net actuarial loss | 20 | 29 | 61 | 86 |
Amortization of prior service costs | (1) | (1) | (1) | (2) |
Total other components of net periodic benefit (recovery) cost | (104) | (101) | (312) | (303) |
Net periodic benefit (recovery) cost | (77) | (71) | (231) | (213) |
Other Postretirement Benefit Plans, Defined Benefit [Member] | ||||
Defined Benefit Plan and Other Postretirement Benefit Plans | ||||
Current service cost (benefits earned by employees) | 3 | 3 | 9 | 9 |
Interest cost on benefit obligation | 4 | 5 | 14 | 14 |
Expected return on fund assets | 0 | 0 | 0 | 0 |
Recognized net actuarial loss | 1 | 0 | 3 | 2 |
Amortization of prior service costs | 0 | 0 | 1 | 0 |
Total other components of net periodic benefit (recovery) cost | 5 | 5 | 18 | 16 |
Net periodic benefit (recovery) cost | $ 8 | $ 8 | $ 27 | $ 25 |
Contingencies - Legal Proceedin
Contingencies - Legal Proceedings (Details) - Lac-Megantic Rail Accident [Member] $ in Millions | 9 Months Ended |
Sep. 30, 2019CAD ($)claim | |
Claimed damages as a result of derailment | |
Other Commitments [Line Items] | |
Amount of fund to be distributed | $ 440 |
Quebec Minister of Sustainable Development, Environment, Wildlife and Parks | |
Other Commitments [Line Items] | |
Value of damages sought | 95 |
Attorney General of Quebec | |
Other Commitments [Line Items] | |
Value of damages sought | 315 |
Initial value of damages sought | 409 |
Initial Insurer Claimants | Subrogated insurance claim | |
Other Commitments [Line Items] | |
Value of damages sought | 14 |
Initial value of damages sought | $ 16 |
Number of pending claims | claim | 8 |
Additional Insurer Claimants | Subrogated insurance claim | |
Other Commitments [Line Items] | |
Value of damages sought | $ 3 |
Number of pending claims | claim | 2 |
Plaintiffs | |
Other Commitments [Line Items] | |
Value of damages sought | $ 5 |
Number of Plaintiffs | claim | 48 |
Wrongful Death Trustee | Damaged rail cars and lost crude | |
Other Commitments [Line Items] | |
Value of damages sought | $ 6 |
Wrongful Death Trustee | Reimbursement for settlement paid by consignor | |
Other Commitments [Line Items] | |
Value of damages sought | 110 |
Wrongful Death Trustee | Reimbursement for settlement paid by consignee | |
Other Commitments [Line Items] | |
Value of damages sought | $ 60 |
Contingencies - Environmental L
Contingencies - Environmental Liabilities (Details) - CAD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Site Contingency [Line Items] | |||||
Total amount provided for provisions for environmental remediation costs | $ 80 | $ 80 | $ 82 | ||
Term for expected payments to be made | 10 years | ||||
Purchased services and other | |||||
Site Contingency [Line Items] | |||||
Environmental remediation expense | $ 2 | $ 2 | $ 4 | $ 4 |
Condensed Consolidating Finan_3
Condensed Consolidating Financial Information - Interim Condensed Consolidating Statements of Income (Details) - CAD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues | ||||
Total revenues | $ 1,979 | $ 1,898 | $ 5,723 | $ 5,310 |
Operating expenses | ||||
Compensation and benefits | 355 | 365 | 1,144 | 1,090 |
Fuel | 210 | 226 | 655 | 671 |
Materials | 50 | 47 | 161 | 155 |
Equipment rents | 33 | 33 | 102 | 99 |
Depreciation and amortization | 185 | 174 | 528 | 516 |
Purchased services and other | 277 | 263 | 899 | 822 |
Total operating expenses | 1,110 | 1,108 | 3,489 | 3,353 |
Operating income | 869 | 790 | 2,234 | 1,957 |
Less: | ||||
Other expense (income) | 29 | (47) | (58) | 56 |
Other components of net periodic benefit recovery cost | (99) | (96) | (294) | (287) |
Net interest (income) expense | 110 | 112 | 336 | 339 |
(Loss) income before income tax expense and equity in net earnings of subsidiaries | 829 | 821 | 2,250 | 1,849 |
Income tax expense (recovery) | 211 | 199 | 474 | 443 |
Add: Equity in net earnings of subsidiaries | 0 | 0 | 0 | 0 |
Net income | 618 | 622 | 1,776 | 1,406 |
Freight | ||||
Revenues | ||||
Total revenues | 1,932 | 1,854 | 5,589 | 5,188 |
Non-freight | ||||
Revenues | ||||
Total revenues | 47 | 44 | 134 | 122 |
Consolidating Adjustments and Eliminations [Member] | ||||
Revenues | ||||
Total revenues | (103) | (79) | (308) | (238) |
Operating expenses | ||||
Compensation and benefits | 3 | 2 | 6 | 4 |
Fuel | 0 | 0 | 0 | 0 |
Materials | 3 | 3 | 11 | 11 |
Equipment rents | 0 | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Purchased services and other | (109) | (84) | (325) | (253) |
Total operating expenses | (103) | (79) | (308) | (238) |
Operating income | 0 | 0 | 0 | 0 |
Less: | ||||
Other expense (income) | 0 | 0 | 0 | 0 |
Other components of net periodic benefit recovery cost | 0 | 0 | 0 | 0 |
Net interest (income) expense | 0 | 0 | 0 | 0 |
(Loss) income before income tax expense and equity in net earnings of subsidiaries | 0 | 0 | 0 | 0 |
Income tax expense (recovery) | 0 | 0 | 0 | 0 |
Add: Equity in net earnings of subsidiaries | (808) | (815) | (2,338) | (1,967) |
Net income | (808) | (815) | (2,338) | (1,967) |
Consolidating Adjustments and Eliminations [Member] | Freight | ||||
Revenues | ||||
Total revenues | 0 | 0 | 0 | 0 |
Consolidating Adjustments and Eliminations [Member] | Non-freight | ||||
Revenues | ||||
Total revenues | (103) | (79) | (308) | (238) |
CPRL (Parent Guarantor) [Member] | Reportable Legal Entities [Member] | ||||
Revenues | ||||
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 expense (income) | 3 | (4) | (7) | 7 |
Other components of net periodic benefit recovery cost | 0 | 0 | 0 | 0 |
Net interest (income) expense | 0 | (2) | (2) | 4 |
(Loss) income before income tax expense and equity in net earnings of subsidiaries | (3) | 6 | 9 | (11) |
Income tax expense (recovery) | 1 | (1) | 3 | (2) |
Add: Equity in net earnings of subsidiaries | 622 | 615 | 1,770 | 1,415 |
Net income | 618 | 622 | 1,776 | 1,406 |
CPRL (Parent Guarantor) [Member] | Reportable Legal Entities [Member] | Freight | ||||
Revenues | ||||
Total revenues | 0 | 0 | 0 | 0 |
CPRL (Parent Guarantor) [Member] | Reportable Legal Entities [Member] | Non-freight | ||||
Revenues | ||||
Total revenues | 0 | 0 | 0 | 0 |
CPRC (Subsidiary Issuer) [Member] | Reportable Legal Entities [Member] | ||||
Revenues | ||||
Total revenues | 1,416 | 1,347 | 4,126 | 3,756 |
Operating expenses | ||||
Compensation and benefits | 238 | 246 | 769 | 740 |
Fuel | 164 | 177 | 518 | 523 |
Materials | 35 | 33 | 110 | 106 |
Equipment rents | 36 | 27 | 116 | 88 |
Depreciation and amortization | 112 | 105 | 318 | 314 |
Purchased services and other | 194 | 224 | 712 | 647 |
Total operating expenses | 779 | 812 | 2,543 | 2,418 |
Operating income | 637 | 535 | 1,583 | 1,338 |
Less: | ||||
Other expense (income) | 27 | (46) | (54) | 81 |
Other components of net periodic benefit recovery cost | (100) | (97) | (298) | (289) |
Net interest (income) expense | 118 | 121 | 360 | 356 |
(Loss) income before income tax expense and equity in net earnings of subsidiaries | 592 | 557 | 1,575 | 1,190 |
Income tax expense (recovery) | 156 | 142 | 373 | 327 |
Add: Equity in net earnings of subsidiaries | 186 | 200 | 568 | 552 |
Net income | 622 | 615 | 1,770 | 1,415 |
CPRC (Subsidiary Issuer) [Member] | Reportable Legal Entities [Member] | Freight | ||||
Revenues | ||||
Total revenues | 1,381 | 1,316 | 4,028 | 3,667 |
CPRC (Subsidiary Issuer) [Member] | Reportable Legal Entities [Member] | Non-freight | ||||
Revenues | ||||
Total revenues | 35 | 31 | 98 | 89 |
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||||
Revenues | ||||
Total revenues | 666 | 630 | 1,905 | 1,792 |
Operating expenses | ||||
Compensation and benefits | 114 | 117 | 369 | 346 |
Fuel | 46 | 49 | 137 | 148 |
Materials | 12 | 11 | 40 | 38 |
Equipment rents | (3) | 6 | (14) | 11 |
Depreciation and amortization | 73 | 69 | 210 | 202 |
Purchased services and other | 192 | 123 | 512 | 428 |
Total operating expenses | 434 | 375 | 1,254 | 1,173 |
Operating income | 232 | 255 | 651 | 619 |
Less: | ||||
Other expense (income) | (1) | 3 | 3 | (32) |
Other components of net periodic benefit recovery cost | 1 | 1 | 4 | 2 |
Net interest (income) expense | (8) | (7) | (22) | (21) |
(Loss) income before income tax expense and equity in net earnings of subsidiaries | 240 | 258 | 666 | 670 |
Income tax expense (recovery) | 54 | 58 | 98 | 118 |
Add: Equity in net earnings of subsidiaries | 0 | 0 | 0 | 0 |
Net income | 186 | 200 | 568 | 552 |
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | Freight | ||||
Revenues | ||||
Total revenues | 551 | 538 | 1,561 | 1,521 |
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | Non-freight | ||||
Revenues | ||||
Total revenues | $ 115 | $ 92 | $ 344 | $ 271 |
Condensed Consolidating Finan_4
Condensed Consolidating Financial Information - Interim Condensed Consolidating Statements of Comprehensive Income (Details) - CAD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | $ 618 | $ 622 | $ 1,776 | $ 1,406 |
Net (loss) gain in foreign currency translation adjustments, net of hedging activities | (8) | 12 | 23 | (24) |
Change in derivatives designated as cash flow hedges | 2 | 1 | 8 | 36 |
Change in pension and post-retirement defined benefit plans | 20 | 28 | 61 | 86 |
Other comprehensive income before income taxes | 14 | 41 | 92 | 98 |
Income tax recovery (expense) on above items | 3 | (22) | (41) | (11) |
Equity accounted investments | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | 17 | 19 | 51 | 87 |
Comprehensive income | 635 | 641 | 1,827 | 1,493 |
Consolidating Adjustments and Eliminations [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | (808) | (815) | (2,338) | (1,967) |
Net (loss) gain 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 recovery (expense) on above items | 0 | 0 | 0 | 0 |
Equity accounted investments | (78) | 64 | 96 | (243) |
Other comprehensive income (loss) | (78) | 64 | 96 | (243) |
Comprehensive income | (886) | (751) | (2,242) | (2,210) |
CPRL (Parent Guarantor) [Member] | Reportable Legal Entities [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | 618 | 622 | 1,776 | 1,406 |
Net (loss) gain 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 recovery (expense) on above items | 0 | 0 | 0 | 0 |
Equity accounted investments | 17 | 19 | 51 | 87 |
Other comprehensive income (loss) | 17 | 19 | 51 | 87 |
Comprehensive income | 635 | 641 | 1,827 | 1,493 |
CPRC (Subsidiary Issuer) [Member] | Reportable Legal Entities [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | 622 | 615 | 1,770 | 1,415 |
Net (loss) gain in foreign currency translation adjustments, net of hedging activities | (68) | 96 | 173 | (177) |
Change in derivatives designated as cash flow hedges | 2 | 1 | 8 | 36 |
Change in pension and post-retirement defined benefit plans | 19 | 27 | 58 | 82 |
Other comprehensive income before income taxes | (47) | 124 | 239 | (59) |
Income tax recovery (expense) on above items | 3 | (22) | (41) | (10) |
Equity accounted investments | 61 | (83) | (147) | 156 |
Other comprehensive income (loss) | 17 | 19 | 51 | 87 |
Comprehensive income | 639 | 634 | 1,821 | 1,502 |
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | 186 | 200 | 568 | 552 |
Net (loss) gain in foreign currency translation adjustments, net of hedging activities | 60 | (84) | (150) | 153 |
Change in derivatives designated as cash flow hedges | 0 | 0 | 0 | 0 |
Change in pension and post-retirement defined benefit plans | 1 | 1 | 3 | 4 |
Other comprehensive income before income taxes | 61 | (83) | (147) | 157 |
Income tax recovery (expense) on above items | 0 | 0 | 0 | (1) |
Equity accounted investments | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | 61 | (83) | (147) | 156 |
Comprehensive income | $ 247 | $ 117 | $ 421 | $ 708 |
Condensed Consolidating Finan_5
Condensed Consolidating Financial Information - Interim Condensed Consolidating Balance Sheets (Details) - CAD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets | |||||||
Cash and cash equivalents | $ 145 | $ 61 | |||||
Accounts receivable, net | 770 | 815 | |||||
Accounts receivable, intercompany | 0 | 0 | |||||
Short-term advances to affiliates | 0 | 0 | |||||
Materials and supplies | 188 | 173 | |||||
Other current assets | 83 | 68 | |||||
Total current assets | 1,186 | 1,117 | |||||
Long-term advances to affiliates | 0 | 0 | |||||
Investments | 215 | 203 | |||||
Investments in subsidiaries | 0 | 0 | |||||
Properties | 18,909 | $ 18,406 | 18,418 | ||||
Goodwill and intangible assets | 195 | 202 | |||||
Pension asset | 1,572 | 1,243 | |||||
Other assets | 462 | 470 | 71 | ||||
Deferred income taxes | 0 | 0 | |||||
Total assets | 22,539 | 21,254 | |||||
Current liabilities | |||||||
Accounts payable and accrued liabilities | 1,415 | 1,507 | 1,449 | ||||
Accounts payable, intercompany | 0 | 0 | |||||
Short-term advances from affiliates | 0 | 0 | |||||
Long-term debt maturing within one year | 675 | 506 | |||||
Total current liabilities | 2,090 | 1,955 | |||||
Pension and other benefit liabilities | 712 | 718 | |||||
Long-term advances from affiliates | 0 | 0 | |||||
Other long-term liabilities | 579 | 574 | 237 | ||||
Long-term debt | 8,308 | 8,190 | |||||
Deferred income taxes | 3,635 | 3,515 | 3,518 | ||||
Total liabilities | 15,324 | 14,618 | |||||
Shareholders’ equity | |||||||
Share capital | 1,982 | 2,002 | |||||
Additional paid-in capital | 45 | 42 | |||||
Accumulated other comprehensive (loss) income | (1,992) | $ (2,009) | (2,043) | $ (1,654) | $ (1,673) | $ (1,741) | |
Retained earnings | 7,180 | 6,630 | 6,635 | ||||
Total shareholders' equity | 7,215 | $ 7,157 | $ 6,631 | 6,636 | $ 7,128 | $ 6,574 | $ 6,437 |
Total liabilities and shareholders’ equity | 22,539 | 21,254 | |||||
Consolidating Adjustments and Eliminations [Member] | |||||||
Current assets | |||||||
Cash and cash equivalents | 0 | 0 | |||||
Accounts receivable, net | 0 | 0 | |||||
Accounts receivable, intercompany | (526) | (516) | |||||
Short-term advances to affiliates | (6,017) | (6,253) | |||||
Materials and supplies | 0 | 0 | |||||
Other current assets | 0 | 0 | |||||
Total current assets | (6,543) | (6,769) | |||||
Long-term advances to affiliates | (1,182) | (1,188) | |||||
Investments | 0 | 0 | |||||
Investments in subsidiaries | (24,175) | (23,446) | |||||
Properties | 0 | 0 | |||||
Goodwill and intangible assets | 0 | 0 | |||||
Pension asset | 0 | 0 | |||||
Other assets | 0 | 0 | |||||
Deferred income taxes | (5) | (6) | |||||
Total assets | (31,905) | (31,409) | |||||
Current liabilities | |||||||
Accounts payable and accrued liabilities | 0 | 0 | |||||
Accounts payable, intercompany | (526) | (516) | |||||
Short-term advances from affiliates | (6,017) | (6,253) | |||||
Long-term debt maturing within one year | 0 | 0 | |||||
Total current liabilities | (6,543) | (6,769) | |||||
Pension and other benefit liabilities | 0 | 0 | |||||
Long-term advances from affiliates | (1,182) | (1,188) | |||||
Other long-term liabilities | 0 | 0 | |||||
Long-term debt | 0 | 0 | |||||
Deferred income taxes | (5) | (6) | |||||
Total liabilities | (7,730) | (7,963) | |||||
Shareholders’ equity | |||||||
Share capital | (6,608) | (6,484) | |||||
Additional paid-in capital | (1,744) | (1,748) | |||||
Accumulated other comprehensive (loss) income | 1,300 | 1,204 | |||||
Retained earnings | (17,123) | (16,418) | |||||
Total shareholders' equity | (24,175) | (23,446) | |||||
Total liabilities and shareholders’ equity | (31,905) | (31,409) | |||||
CPRL (Parent Guarantor) [Member] | Reportable Legal Entities [Member] | |||||||
Current assets | |||||||
Cash and cash equivalents | 0 | 0 | |||||
Accounts receivable, net | 0 | 0 | |||||
Accounts receivable, intercompany | 158 | 125 | |||||
Short-term advances to affiliates | 0 | 0 | |||||
Materials and supplies | 0 | 0 | |||||
Other current assets | 0 | 0 | |||||
Total current assets | 158 | 125 | |||||
Long-term advances to affiliates | 1,090 | 1,090 | |||||
Investments | 0 | 0 | |||||
Investments in subsidiaries | 11,748 | 11,443 | |||||
Properties | 0 | 0 | |||||
Goodwill and intangible assets | 0 | 0 | |||||
Pension asset | 0 | 0 | |||||
Other assets | 0 | 0 | |||||
Deferred income taxes | 5 | 6 | |||||
Total assets | 13,001 | 12,664 | |||||
Current liabilities | |||||||
Accounts payable and accrued liabilities | 128 | 115 | |||||
Accounts payable, intercompany | 7 | 4 | |||||
Short-term advances from affiliates | 5,651 | 5,909 | |||||
Long-term debt maturing within one year | 0 | 0 | |||||
Total current liabilities | 5,786 | 6,028 | |||||
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 | 5,786 | 6,028 | |||||
Shareholders’ equity | |||||||
Share capital | 1,982 | 2,002 | |||||
Additional paid-in capital | 45 | 42 | |||||
Accumulated other comprehensive (loss) income | (1,992) | (2,043) | |||||
Retained earnings | 7,180 | 6,635 | |||||
Total shareholders' equity | 7,215 | 6,636 | |||||
Total liabilities and shareholders’ equity | 13,001 | 12,664 | |||||
CPRC (Subsidiary Issuer) [Member] | Reportable Legal Entities [Member] | |||||||
Current assets | |||||||
Cash and cash equivalents | 45 | 42 | |||||
Accounts receivable, net | 581 | 629 | |||||
Accounts receivable, intercompany | 136 | 167 | |||||
Short-term advances to affiliates | 1,099 | 1,602 | |||||
Materials and supplies | 150 | 136 | |||||
Other current assets | 51 | 39 | |||||
Total current assets | 2,062 | 2,615 | |||||
Long-term advances to affiliates | 6 | 5 | |||||
Investments | 31 | 24 | |||||
Investments in subsidiaries | 12,427 | 12,003 | |||||
Properties | 10,080 | 9,579 | |||||
Goodwill and intangible assets | 0 | 0 | |||||
Pension asset | 1,572 | 1,243 | |||||
Other assets | 167 | 57 | |||||
Deferred income taxes | 0 | 0 | |||||
Total assets | 26,345 | 25,526 | |||||
Current liabilities | |||||||
Accounts payable and accrued liabilities | 926 | 1,017 | |||||
Accounts payable, intercompany | 383 | 344 | |||||
Short-term advances from affiliates | 363 | 341 | |||||
Long-term debt maturing within one year | 634 | 506 | |||||
Total current liabilities | 2,306 | 2,208 | |||||
Pension and other benefit liabilities | 640 | 639 | |||||
Long-term advances from affiliates | 1,176 | 1,182 | |||||
Other long-term liabilities | 224 | 120 | |||||
Long-term debt | 8,295 | 8,135 | |||||
Deferred income taxes | 1,956 | 1,799 | |||||
Total liabilities | 14,597 | 14,083 | |||||
Shareholders’ equity | |||||||
Share capital | 537 | 538 | |||||
Additional paid-in capital | 1,648 | 1,656 | |||||
Accumulated other comprehensive (loss) income | (1,992) | (2,043) | |||||
Retained earnings | 11,555 | 11,292 | |||||
Total shareholders' equity | 11,748 | 11,443 | |||||
Total liabilities and shareholders’ equity | 26,345 | 25,526 | |||||
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | |||||||
Current assets | |||||||
Cash and cash equivalents | 100 | 19 | |||||
Accounts receivable, net | 189 | 186 | |||||
Accounts receivable, intercompany | 232 | 224 | |||||
Short-term advances to affiliates | 4,918 | 4,651 | |||||
Materials and supplies | 38 | 37 | |||||
Other current assets | 32 | 29 | |||||
Total current assets | 5,509 | 5,146 | |||||
Long-term advances to affiliates | 86 | 93 | |||||
Investments | 184 | 179 | |||||
Investments in subsidiaries | 0 | 0 | |||||
Properties | 8,829 | 8,839 | |||||
Goodwill and intangible assets | 195 | 202 | |||||
Pension asset | 0 | 0 | |||||
Other assets | 295 | 14 | |||||
Deferred income taxes | 0 | 0 | |||||
Total assets | 15,098 | 14,473 | |||||
Current liabilities | |||||||
Accounts payable and accrued liabilities | 361 | 317 | |||||
Accounts payable, intercompany | 136 | 168 | |||||
Short-term advances from affiliates | 3 | 3 | |||||
Long-term debt maturing within one year | 41 | 0 | |||||
Total current liabilities | 541 | 488 | |||||
Pension and other benefit liabilities | 72 | 79 | |||||
Long-term advances from affiliates | 6 | 6 | |||||
Other long-term liabilities | 355 | 117 | |||||
Long-term debt | 13 | 55 | |||||
Deferred income taxes | 1,684 | 1,725 | |||||
Total liabilities | 2,671 | 2,470 | |||||
Shareholders’ equity | |||||||
Share capital | 6,071 | 5,946 | |||||
Additional paid-in capital | 96 | 92 | |||||
Accumulated other comprehensive (loss) income | 692 | 839 | |||||
Retained earnings | 5,568 | 5,126 | |||||
Total shareholders' equity | 12,427 | 12,003 | |||||
Total liabilities and shareholders’ equity | $ 15,098 | $ 14,473 |
Condensed Consolidating Finan_6
Condensed Consolidating Financial Information - Interim Condensed Consolidating Statements of Cash Flows (Details) - CAD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Cash provided by operating activities | $ 823 | $ 673 | $ 1,957 | $ 1,781 |
Investing activities | ||||
Additions to properties | (464) | (430) | (1,147) | (1,084) |
Proceeds from sale of properties and other assets | 4 | 7 | 18 | 16 |
Advances to affiliates | 0 | 0 | 0 | 0 |
Repayment of advances to affiliates | 0 | 0 | 0 | 0 |
Capital contributions to affiliates | 0 | |||
Repurchase of share capital from affiliates | 0 | 0 | ||
Other investing activities | (1) | 0 | (6) | (1) |
Cash used in investing activities | (461) | (423) | (1,135) | (1,069) |
Financing activities | ||||
Dividends paid | (116) | (92) | (298) | (255) |
Issuance of share capital | 0 | |||
Return of share capital to affiliates | 0 | 0 | ||
Issuance of CP Common Shares | 6 | 4 | 20 | 16 |
Purchase of CP Common Shares | (500) | 0 | (964) | (559) |
Issuance of long-term debt, excluding commercial paper | 0 | 0 | 397 | 638 |
Repayment of long-term debt, excluding commercial paper | (6) | (5) | (491) | (744) |
Net issuance of commercial paper | 355 | (53) | 601 | 0 |
Advances from affiliates | 0 | 0 | 0 | 0 |
Repayment of advances from affiliates | 0 | 0 | 0 | 0 |
Other financing activities | (2) | 0 | (2) | 0 |
Cash used in financing activities | (263) | (146) | (737) | (904) |
Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents | 1 | (5) | (1) | 4 |
Cash position | ||||
Increase (decrease) in cash and cash equivalents | 100 | 99 | 84 | (188) |
Cash and cash equivalents at beginning of period | 45 | 51 | 61 | 338 |
Cash and cash equivalents at end of period | 145 | 150 | 145 | 150 |
Consolidating Adjustments and Eliminations [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash provided by operating activities | (761) | (149) | (1,629) | (545) |
Investing activities | ||||
Additions to properties | 0 | 0 | 0 | 0 |
Proceeds from sale of properties and other assets | 0 | 0 | 0 | 0 |
Advances to affiliates | 7 | 209 | 517 | 272 |
Repayment of advances to affiliates | (101) | (844) | (753) | (840) |
Capital contributions to affiliates | 125 | |||
Repurchase of share capital from affiliates | (736) | (1,283) | ||
Other investing activities | 0 | 0 | 0 | |
Cash used in investing activities | (94) | (1,371) | (111) | (1,851) |
Financing activities | ||||
Dividends paid | 761 | 149 | 1,629 | 545 |
Issuance of share capital | (125) | |||
Return of share capital to affiliates | 736 | 1,283 | ||
Issuance of CP Common Shares | 0 | 0 | 0 | 0 |
Purchase of CP Common Shares | 0 | 0 | 0 | |
Issuance of long-term debt, excluding commercial paper | 0 | 0 | ||
Repayment of long-term debt, excluding commercial paper | 0 | 0 | 0 | 0 |
Net issuance of commercial paper | 0 | 0 | 0 | |
Advances from affiliates | (7) | (209) | (517) | (272) |
Repayment of advances from affiliates | 101 | 844 | 753 | 840 |
Other financing activities | 0 | 0 | ||
Cash used in financing activities | 855 | 1,520 | 1,740 | 2,396 |
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 |
CPRL (Parent Guarantor) [Member] | Reportable Legal Entities [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash provided by operating activities | 709 | 87 | 1,494 | 235 |
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 | 0 | 0 | 0 |
Repayment of advances to affiliates | 0 | 0 | 0 | 0 |
Capital contributions to affiliates | 0 | |||
Repurchase of share capital from affiliates | 500 | 500 | ||
Other investing activities | 0 | 0 | 0 | |
Cash used in investing activities | 0 | 500 | 0 | 500 |
Financing activities | ||||
Dividends paid | (116) | (92) | (298) | (255) |
Issuance of share capital | 0 | |||
Return of share capital to affiliates | 0 | 0 | ||
Issuance of CP Common Shares | 6 | 4 | 20 | 16 |
Purchase of CP Common Shares | (498) | (962) | (559) | |
Issuance of long-term debt, excluding commercial paper | 0 | 0 | ||
Repayment of long-term debt, excluding commercial paper | 0 | 0 | 0 | 0 |
Net issuance of commercial paper | 0 | 0 | 0 | |
Advances from affiliates | 0 | 209 | 495 | 272 |
Repayment of advances from affiliates | (101) | (708) | (749) | (209) |
Other financing activities | 0 | 0 | ||
Cash used in financing activities | (709) | (587) | (1,494) | (735) |
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 |
CPRC (Subsidiary Issuer) [Member] | Reportable Legal Entities [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash provided by operating activities | 608 | 416 | 1,371 | 1,309 |
Investing activities | ||||
Additions to properties | (321) | (303) | (778) | (701) |
Proceeds from sale of properties and other assets | 1 | 4 | 13 | 10 |
Advances to affiliates | 0 | 0 | (250) | (63) |
Repayment of advances to affiliates | 101 | 499 | 749 | 0 |
Capital contributions to affiliates | (125) | |||
Repurchase of share capital from affiliates | 236 | 783 | ||
Other investing activities | 0 | 1 | 0 | |
Cash used in investing activities | (219) | 436 | (390) | 29 |
Financing activities | ||||
Dividends paid | (716) | (92) | (1,498) | (255) |
Issuance of share capital | 0 | |||
Return of share capital to affiliates | (500) | (500) | ||
Issuance of CP Common Shares | 0 | 0 | 0 | 0 |
Purchase of CP Common Shares | (2) | (2) | 0 | |
Issuance of long-term debt, excluding commercial paper | 397 | 638 | ||
Repayment of long-term debt, excluding commercial paper | (6) | (5) | (491) | (744) |
Net issuance of commercial paper | 355 | (53) | 601 | |
Advances from affiliates | 7 | 0 | 22 | 0 |
Repayment of advances from affiliates | 0 | (136) | (4) | (631) |
Other financing activities | (2) | (2) | ||
Cash used in financing activities | (364) | (786) | (977) | (1,492) |
Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents | 0 | 17 | (1) | 16 |
Cash position | ||||
Increase (decrease) in cash and cash equivalents | 25 | 83 | 3 | (138) |
Cash and cash equivalents at beginning of period | 20 | 20 | 42 | 241 |
Cash and cash equivalents at end of period | 45 | 103 | 45 | 103 |
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash provided by operating activities | 267 | 319 | 721 | 782 |
Investing activities | ||||
Additions to properties | (143) | (127) | (369) | (383) |
Proceeds from sale of properties and other assets | 3 | 3 | 5 | 6 |
Advances to affiliates | (7) | (209) | (267) | (209) |
Repayment of advances to affiliates | 0 | 345 | 4 | 840 |
Capital contributions to affiliates | 0 | |||
Repurchase of share capital from affiliates | 0 | 0 | ||
Other investing activities | (1) | (7) | (1) | |
Cash used in investing activities | (148) | 12 | (634) | 253 |
Financing activities | ||||
Dividends paid | (45) | (57) | (131) | (290) |
Issuance of share capital | 125 | |||
Return of share capital to affiliates | (236) | (783) | ||
Issuance of CP Common Shares | 0 | 0 | 0 | 0 |
Purchase of CP Common Shares | 0 | 0 | 0 | |
Issuance of long-term debt, excluding commercial paper | 0 | 0 | ||
Repayment of long-term debt, excluding commercial paper | 0 | 0 | 0 | 0 |
Net issuance of commercial paper | 0 | 0 | 0 | |
Advances from affiliates | 0 | 0 | 0 | 0 |
Repayment of advances from affiliates | 0 | 0 | 0 | 0 |
Other financing activities | 0 | 0 | ||
Cash used in financing activities | (45) | (293) | (6) | (1,073) |
Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents | 1 | (22) | 0 | (12) |
Cash position | ||||
Increase (decrease) in cash and cash equivalents | 75 | 16 | 81 | (50) |
Cash and cash equivalents at beginning of period | 25 | 31 | 19 | 97 |
Cash and cash equivalents at end of period | $ 100 | $ 47 | $ 100 | $ 47 |
Uncategorized Items - q32019qua
Label | Element | Value |
Additional Paid-in Capital [Member] | ||
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | $ 42,000,000 |
AOCI Attributable to Parent [Member] | ||
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | (2,043,000,000) |
Retained Earnings [Member] | ||
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | 6,630,000,000 |
Common Stock [Member] | ||
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | 2,002,000,000 |
Accounting Standards Update 2016-02 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (5,000,000) |
Accounting Standards Update 2016-02 [Member] | Additional Paid-in Capital [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Accounting Standards Update 2016-02 [Member] | AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Accounting Standards Update 2016-02 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (5,000,000) |
Accounting Standards Update 2016-02 [Member] | Common Stock [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 0 |