Canadian Pacific Railway Limited (CP) 10-Q 20 Oct 20 2020 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document - shares	9 Months Ended
	Sep. 30, 2020	Oct. 19, 2020
Entity Information [Line Items]
Document Type	10-Q
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2020
Document Period End Date	Sep. 30, 2020
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 Incorporation, State or Country Code	Z4
Entity Tax Identification Number	98-0355078
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
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		134,499,003
Common Shares, without par value, of Canadian Pacific Railway Limited
Entity Information [Line Items]
Title of 12(b) Security	Common Shares, without par value, of Canadian Pacific Railway Limited
Trading Symbol	CP
Security Exchange Name	NYSE
Perpetual 4% Consolidated Debenture Stock of Canadian Pacific Railway Company
Entity Information [Line Items]
Title of 12(b) Security	Perpetual 4% Consolidated Debenture Stock of Canadian Pacific Railway Company
Trading Symbol	CP/40
Security Exchange Name	NYSE

INTERIM CONSOLIDATED STATEMENTS

INTERIM CONSOLIDATED STATEMENTS OF INCOME (unaudited) - CAD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenues
Total revenues	$ 1,863	$ 1,979	$ 5,698	$ 5,723
Operating expenses
Compensation and benefits	382	355	1,127	1,144
Fuel	140	210	483	655
Materials	53	50	162	161
Equipment rents	39	33	108	102
Depreciation and amortization	195	185	582	528
Purchased services and other	275	277	853	899
Total operating expenses	1,084	1,110	3,315	3,489
Operating income	779	869	2,383	2,234
Less:
Other (income) expense	(36)	29	89	(58)
Other components of net periodic benefit recovery	(86)	(99)	(257)	(294)
Net interest expense	114	110	346	336
Income before income tax expense	787	829	2,205	2,250
Income tax expense	189	211	563	474
Net income	$ 598	$ 618	$ 1,642	$ 1,776
Earnings per share
Basic earnings per share	$ 4.42	$ 4.47	$ 12.09	$ 12.75
Diluted earnings per share	$ 4.41	$ 4.46	$ 12.04	$ 12.70
Weighted-average number of shares (millions)
Basic	135.2	138.1	135.9	139.3
Diluted	135.8	138.7	136.4	139.8
Dividends declared per share	$ 0.9500	$ 0.8300	$ 2.6100	$ 2.3100
Freight
Revenues
Total revenues	$ 1,821	$ 1,932	$ 5,573	$ 5,589
Non-freight
Revenues
Total revenues	$ 42	$ 47	$ 125	$ 134

INTERIM CONSOLIDATED STATEMEN_2

INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - CAD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Statement of Comprehensive Income [Abstract]
Net income	$ 598	$ 618	$ 1,642	$ 1,776
Net gain (loss) in foreign currency translation adjustments, net of hedging activities	16	(8)	(18)	23
Change in derivatives designated as cash flow hedges	3	2	6	8
Change in pension and post-retirement defined benefit plans	44	20	134	61
Other comprehensive income before income taxes	63	14	122	92
Income tax (expense) recovery on above items	(29)	3	(16)	(41)
Other comprehensive income	34	17	106	51
Comprehensive income	$ 632	$ 635	$ 1,748	$ 1,827

INTERIM CONSOLIDATED BALANCE SH

INTERIM CONSOLIDATED BALANCE SHEETS AS AT (unaudited) - CAD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Current assets
Cash and cash equivalents	$ 183	$ 133
Accounts receivable, net	840	805
Materials and supplies	185	182
Other current assets	116	90
Total current assets	1,324	1,210
Investments	223	341
Properties	20,169	19,156
Goodwill and intangible assets	284	206
Pension asset	1,317	1,003
Other assets	470	451
Total assets	23,787	22,367
Current liabilities
Accounts payable and accrued liabilities	1,380	1,693
Long-term debt maturing within one year	841	599
Total current liabilities	2,221	2,292
Pension and other benefit liabilities	777	785
Other long-term liabilities	576	562
Long-term debt	8,945	8,158
Deferred income taxes	3,689	3,501
Total liabilities	16,208	15,298
Shareholders’ equity
Share capital	1,978	1,993
Additional paid-in capital	56	48
Accumulated other comprehensive loss	(2,416)	(2,522)
Retained earnings	7,961	7,550
Total shareholders' equity	7,579	7,069
Total liabilities and shareholders’ equity	$ 23,787	$ 22,367

INTERIM CONSOLIDATED STATEMEN_3

INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - CAD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Operating activities
Net income	$ 598	$ 618	$ 1,642	$ 1,776
Reconciliation of net income to cash provided by operating activities:
Depreciation and amortization	195	185	582	528
Deferred income tax expense	45	96	133	116
Pension recovery and funding	(65)	(94)	(192)	(271)
Foreign exchange (gain) loss on debt and lease liabilities	(40)	25	89	(57)
Other operating activities, net	56	24	11	87
Change in non-cash working capital balances related to operations	(296)	(31)	(448)	(222)
Cash provided by operating activities	493	823	1,817	1,957
Investing activities
Additions to properties	(484)	(464)	(1,341)	(1,147)
Investment in Central Maine & Quebec Railway	0	0	19	0
Proceeds from sale of properties and other assets	2	4	9	18
Other investing activities	(1)	(1)	0	(6)
Cash used in investing activities	(483)	(461)	(1,313)	(1,135)
Financing activities
Dividends paid	(113)	(116)	(339)	(298)
Issuance of CP Common Shares	3	6	32	20
Purchase of CP Common Shares	(400)	(500)	(945)	(964)
Issuance of long-term debt, excluding commercial paper	0	0	958	397
Repayment of long-term debt, excluding commercial paper	(49)	(6)	(74)	(491)
Net (repayment) issuance of commercial paper	459	355	(114)	601
Net increase in short-term borrowings	0	0	5	0
Other financing activities	0	(2)	11	(2)
Cash used in financing activities	(100)	(263)	(466)	(737)
Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents	(4)	1	12	(1)
Cash position
(Decrease) increase in cash and cash equivalents	(94)	100	50	84
Cash and cash equivalents at beginning of period	277	45	133	61
Cash and cash equivalents at end of period	183	145	183	145
Supplemental disclosures of cash flow information:
Income taxes paid	311	122	455	379
Interest paid	$ 163	$ 141	$ 383	$ 373

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	Cumulative Effect, Period of Adoption, Adjusted Balance	Cumulative Effect, Period of Adoption, Adjusted BalanceShare capital	Cumulative Effect, Period of Adoption, Adjusted BalanceAdditional paid-in capital	Cumulative Effect, Period of Adoption, Adjusted BalanceAccumulated other comprehensive loss	Cumulative Effect, Period of Adoption, Adjusted BalanceRetained earnings
Beginning balance (shares) at Dec. 31, 2018	140.5
Balance at January 1 at Dec. 31, 2018						$ 6,631	$ 2,002	$ 42	$ (2,043)	$ 6,630
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
CP Common Shares repurchased (shares)	(3.2)
CP 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
CP Common Shares repurchased (shares)	(1.6)
CP 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
Beginning balance (shares) at Dec. 31, 2019	137
Beginning balance at Dec. 31, 2019	$ 7,069	1,993	48	(2,522)	7,550
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	1,642	0	0	0	1,642
Other comprehensive income	106	0	0	106	0
Dividends declared	(353)	0	0	0	(353)
Effect of stock-based compensation expense	$ 13	0	13	0	0
CP Common Shares repurchased (shares)	(2.7)
CP Common Shares repurchased	$ (916)	(39)	0	0	(877)
Shares issued under stock option plan (shares)	0.2
Shares issued under stock option plan	$ 19	24	(5)	0	0
Ending balance (shares) at Sep. 30, 2020	134.5
Ending balance at Sep. 30, 2020	$ 7,579	1,978	56	(2,416)	7,961
Beginning balance (shares) at Jun. 30, 2020	135.5
Beginning balance at Jun. 30, 2020	$ 7,465	1,990	53	(2,450)	7,872
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	598	0	0	0	598
Other comprehensive income	34	0	0	34	0
Dividends declared	(128)	0	0	0	(128)
Effect of stock-based compensation expense	$ 4	0	4	0	0
CP Common Shares repurchased (shares)	(1)
CP Common Shares repurchased	$ (396)	(15)	0	0	(381)
Shares issued under stock option plan (shares)	0
Shares issued under stock option plan	$ 2	3	(1)	0	0
Ending balance (shares) at Sep. 30, 2020	134.5
Ending balance at Sep. 30, 2020	$ 7,579	$ 1,978	$ 56	$ (2,416)	$ 7,961

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2020
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 2019 annual Consolidated Financial Statements and notes included in CP's 2019 Annual Report on Form 10-K. The accounting policies used are consistent with the accounting policies used in preparing the 2019 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, 2020
Accounting Standards Update and Change in Accounting Principle [Abstract]
Accounting Changes	Accounting changes Implemented in 2020 Financial Instruments - Credit Losses On January 1, 2020, the Company adopted the new Accounting Standards Update ("ASU") 2016-13, issued by the Financial Accounting Standards Board ("FASB"), and all related amendments under FASB Accounting Standards Codification ("ASC") Topic 326, Financial Instruments - Credit Losses. Using a modified retrospective approach, the Company recognized a cumulative-effect adjustment to its opening retained earnings balance 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. The impact of the adoption of ASC 326 as at January 1, 2020 was an increase in the allowance for credit losses of $1 million , with the offsets to "Deferred income taxes" and "Retained earnings" on the Company's Interim Consolidated Balance Sheet. See Note 8 for further discussion of the current period credit loss. Simplification of Financial Disclosures about Guarantors During the second quarter of 2020, the Company early adopted the Securities and Exchange Commission amendments to the financial disclosure requirements for guarantors and issuers of guaranteed securities, as specified in Rule 3-10 of Regulation S-X. The amendments simplify disclosure requirements by replacing condensed consolidating financial information (“CCFI”) with summarized financial information and expanded qualitative non-financial disclosures about the guarantees, issuers, and guarantors. This disclosure can be found in the Liquidity and Capital Resources section of Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.

Revenues

Revenues	9 Months Ended
	Sep. 30, 2020
Revenue from Contract with Customer [Abstract]
Revenues	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) 2020 2019 2020 2019 Freight Grain $ 457 $ 409 $ 1,321 $ 1,211 Coal 130 183 411 514 Potash 132 117 390 367 Fertilizers and sulphur 65 66 212 186 Forest products 85 78 244 229 Energy, chemicals and plastics 321 382 1,153 1,043 Metals, minerals and consumer products 152 201 474 579 Automotive 94 87 215 267 Intermodal 385 409 1,153 1,193 Total freight revenues 1,821 1,932 5,573 5,589 Non-freight excluding leasing revenues 27 32 80 89 Revenues from contracts with customers 1,848 1,964 5,653 5,678 Leasing revenues 15 15 45 45 Total revenues $ 1,863 $ 1,979 $ 5,698 $ 5,723 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 table summarizes the changes in contract liabilities: For the three months ended September 30 For the nine months ended September 30 (in millions of Canadian dollars) 2020 2019 2020 2019 Opening balance $ 79 $ 74 $ 146 $ 2 Revenue recognized that was included in the contract liability balance at the beginning of the period (25 ) (8 ) (95 ) (2 ) Increase due to consideration received, net of revenue recognized during the period 5 4 8 70 Closing balance $ 59 $ 70 $ 59 $ 70

Other (Income) Expense

Other (Income) Expense	9 Months Ended
	Sep. 30, 2020
Other Income and Expenses [Abstract]
Other Income and Expenses	Other (income) expense For the three months ended September 30 For the nine months ended September 30 (in millions of Canadian dollars) 2020 2019 2020 2019 Foreign exchange (gain) loss on debt and lease liabilities $ (40 ) $ 25 $ 89 $ (57 ) Other foreign exchange losses (gains) 2 2 (2 ) (4 ) Other 2 2 2 3 Other (income) expense $ (36 ) $ 29 $ 89 $ (58 )

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2020
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) 2020 2019 2020 2019 Current income tax expense $ 144 $ 115 $ 430 $ 358 Deferred income tax expense 45 96 133 116 Income tax expense $ 189 $ 211 $ 563 $ 474 The effective tax rates for the three and nine months ended September 30, 2020 were 23.97% and 25.52% , respectively, compared to 25.43% and 21.06% , respectively for the same periods of 2019 . For the three months ended September 30, 2020 , the effective tax rate was 25.00% , excluding the discrete item of the foreign exchange ("FX") gain of $40 million on debt and lease liabilities. For the three months ended September 30, 2019 , the effective tax rate was 25.11% , excluding the discrete item of the FX loss of $25 million on debt and lease liabilities. For the nine months ended September 30, 2020 , the effective tax rate was 25.00% , excluding the discrete item of the FX loss of $89 million on debt and lease liabilities. For the nine months ended September 30, 2019 , the effective tax rate was 25.50% , excluding the discrete items of the FX gain of $57 million on debt and lease liabilities and an $88 million deferred income tax recovery from the revaluation of deferred income tax balances as at January 1, 2019 on the enactment of Alberta provincial corporate income tax rate decrease.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2020
Earnings Per Share [Abstract]
Earnings Per Share	Earnings per share Basic earnings per share has 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 the earnings per share calculations are reconciled as follows: For the three months ended September 30 For the nine months ended September 30 (in millions) 2020 2019 2020 2019 Weighted-average basic shares outstanding 135.2 138.1 135.9 139.3 Dilutive effect of stock options 0.6 0.6 0.5 0.5 Weighted-average diluted shares outstanding 135.8 138.7 136.4 139.8 For the three months ended September 30, 2020, there were no options excluded from the computation of diluted earnings per share (three months ended September 30, 2019 - nil). For the nine months ended September 30, 2020 , 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, 2019 - 0.1 million ).

Changes in Accumulated Other Co

Changes in Accumulated Other Comprehensive Loss ("AOCL") by Component	9 Months Ended
	Sep. 30, 2020
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, 2020 $ 116 $ (52 ) $ (2,514 ) $ (2,450 ) Other comprehensive loss before reclassifications (1 ) — — (1 ) Amounts reclassified from accumulated other comprehensive loss — 2 33 35 Net other comprehensive (loss) income (1 ) 2 33 34 Closing balance, September 30, 2020 $ 115 $ (50 ) $ (2,481 ) $ (2,416 ) 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 ) (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, 2020 $ 112 $ (54 ) $ (2,580 ) $ (2,522 ) Other comprehensive income (loss) before reclassifications 3 (2 ) — 1 Amounts reclassified from accumulated other comprehensive loss — 6 99 105 Net other comprehensive income 3 4 99 106 Closing balance, September 30, 2020 $ 115 $ (50 ) $ (2,481 ) $ (2,416 ) 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 ) (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) 2020 2019 2020 2019 Amortization of prior service costs (1) $ (1 ) $ (1 ) $ (1 ) $ — Recognition of net actuarial loss (1) 45 21 135 62 Total before income tax 44 20 134 62 Income tax recovery (11 ) (5 ) (35 ) (15 ) Total net of income tax $ 33 $ 15 $ 99 $ 47 (1) Impacts " Other components of net periodic benefit recovery " on the Interim Consolidated Statements of Income.

Accounts Receivable, Net

Accounts Receivable, Net	9 Months Ended
	Sep. 30, 2020
Accounts Receivable, after Allowance for Credit Loss [Abstract]
Accounts receivable, net	Accounts receivable, net Accounts receivable from customers are recognized initially at fair value and subsequently measured at amortized cost less allowance for expected credit losses. Losses on accounts receivable are estimated based on historical credit loss experience of receivables with similar risk characteristics. Historical loss experience is adjusted to reflect any management expectations that current or future conditions will differ from conditions that existed for the period over which historical information is evaluated. To determine expected credit losses, customer receivables are disaggregated by credit characteristics, type of customer service, customer line of business, and receivable aging. For the three months ended September 30, 2020 For the nine months ended September 30, 2020 (in millions of Canadian dollars) Freight Non-freight Total Freight Non-freight Total Allowance for credit losses, opening balance (1) $ (26 ) $ (14 ) $ (40 ) $ (27 ) $ (16 ) $ (43 ) Current period credit loss provision, net — — — 1 2 3 Allowance for credit losses, closing balance $ (26 ) $ (14 ) $ (40 ) $ (26 ) $ (14 ) $ (40 ) (1) O pening balance at January 1, 2020 was restated as described in Note 2. As at September 30, 2020 (in millions of Canadian dollars) Freight Non-freight Total Total accounts receivable $ 705 $ 175 $ 880 Allowance for credit losses (26 ) (14 ) (40 ) Total accounts receivable, net $ 679 $ 161 $ 840 Receivables are considered to be in default and are written off against the allowance for credit losses when it is probable that all remaining contractual payments due will not be collected in accordance with the terms of the customer contracts. Subsequent recoveries of amounts previously written off are credited to earnings in the period recovered.

Business Combination Business C

Business Combination Business Combination	9 Months Ended
	Sep. 30, 2020
Business Combinations [Abstract]
Business Combination	Business combination On December 30, 2019, CP purchased 100% of Central Maine & Québec Railway Canada Inc. ("CMQ Canada") and Central Maine & Québec Railway U.S. ("CMQ U.S.") (together "CMQ"). The acquisition of CMQ Canada did not require regulatory approval and was accounted for as a business combination under the acquisition method of accounting on December 30, 2019. The acquisition of CMQ U.S. was subject to approval from the United States Surface Transportation Board ("STB"). From the December 30, 2019 date of purchase, all purchased shares of CMQ U.S. were held in an independent voting trust (the "Trust") pending the STB's approval of CP's application for control of CMQ U.S. Approval was granted with an effective date of June 3, 2020. Between December 30, 2019 and June 3, 2020, CP accounted for its acquisition of CMQ U.S. as an equity method investment. During this time, CP paid additional consideration for CMQ of $3 million , representing changes from the finalization of previously estimated closing date working capital. On June 3, 2020 the Trust was dissolved and CP assumed control of CMQ U.S. At this time, CP accounted for its acquisition in CMQ U.S. as a business combination using the acquisition method of accounting. Accordingly, the acquired tangible and intangible assets and assumed liabilities were recorded at their estimated fair values as at June 3, 2020 and results from operations and cash flows were consolidated prospectively. There was no material change in the acquisition-date fair value of the equity interest held by the Company in CMQ U.S. immediately before the acquisition date. Fair values were determined primarily through the use of an income approach. The purchase price allocation was prepared on a preliminary basis and is subject to change as additional information becomes available concerning the fair value and tax bases of the net assets acquired. Any adjustments to the purchase price allocation will be made as soon as practicable but no later than one year from the date of acquisition. The following summarizes the estimated fair values of the acquired assets and liabilities of CMQ U.S. at June 3, 2020: (in millions of Canadian dollars) June 3, 2020 Fair value of net assets acquired: Cash and cash equivalents $ 22 Accounts receivable, net 2 Properties 54 Intangible assets 27 Accounts payable and accrued liabilities (13 ) Other long-term liabilities (5 ) Total identifiable assets and liabilities $ 87 Goodwill 51 $ 138 Consideration: Fair value of previously held equity method investment $ 138 Goodwill of $51 million relates primarily to expected operating business synergies between the Company and CMQ U.S. The factors that contribute to the goodwill are revenue growth from customers which are currently not served by CP, access to new routes, and an assembled workforce. Goodwill recognized is not deductible for tax purposes. Intangible assets of $27 million reflect customer lists acquired in the purchase of CMQ U.S., and have amortization periods of 20 years . Acquired cash and cash equivalents of $22 million is presented as a reduction of cash used in investing activities in the Company's Interim Consolidated Statement of Cash Flows for the nine months ended September 30, 2020, and is presented net of finalized closing working capital adjustments for CMQ of $3 million as described above. CP has not provided pro forma information relating to the pre-acquisition period as it is not material.

Debt

Debt	9 Months Ended
	Sep. 30, 2020
Debt Disclosure [Abstract]
Debt	Debt Issuance of long-term debt During the three months ended March 31, 2020, the Company issued U.S. $500 million 2.050% 10 -year unsecured notes due March 5, 2030 for net proceeds of U.S. $495 million ( $662 million ) and $300 million 3.050% 30 -year unsecured notes due March 9, 2050 for net proceeds of $296 million . These notes pay interest semi-annually and carry a negative pledge . Credit facility The Company's revolving credit facility consists of a U.S. $1.0 billion tranche maturing September 27, 2024 and a U.S. $300 million tranche maturing September 27, 2021. During the three months ended March 31, 2020, the Company drew U.S. $100 million from the U.S. $300 million tranche of its revolving credit facility. During the three months ended June 30, 2020, the Company repaid this amount in full. As at September 30, 2020 , the revolving credit facility was undrawn (December 31, 2019 - undrawn). The Company presents draws and repayments on its revolving credit facility in the Company's Interim Consolidated Statements of Cash Flows on a net basis. 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. This commercial paper program is backed by the U.S. $1.3 billion revolving credit facility. As at September 30, 2020 , the Company had total commercial paper borrowings of U.S. $345 million (December 31, 2019 - U.S. $397 million ). The weighted-average interest rate on these borrowings was 0.20% (December 31, 2019 - 2.03% ). 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.

Financial Instruments

Financial Instruments	9 Months Ended
	Sep. 30, 2020
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. The Company’s short-term financial instruments include cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, and short-term borrowings including commercial paper. The carrying value of short-term financial instruments all approximate their fair values. The carrying value of the Company’s debt and finance lease liabilities do not approximate their fair value. Their estimated fair value 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. All measurements are classified as Level 2. The Company’s debt and finance lease liabilities, including current maturities, with a carrying value of $9,327 million at September 30, 2020 ( December 31, 2019 - $8,241 million ), had a fair value of $11,860 million ( December 31, 2019 - $10,149 million ). B. Financial risk management The effect of the Company's net investment hedge for the three and nine months ended September 30, 2020 was an unrealized FX gain of $135 million and an unrealized FX loss of $156 million , respectively ( three and nine months ended September 30, 2019 - an unrealized FX loss of $68 million and an unrealized FX gain of $172 million , respectively) recognized in “Other comprehensive income”.

Shareholders' Equity

Shareholders' Equity	9 Months Ended
	Sep. 30, 2020
Stockholders' Equity Note [Abstract]
Shareholders' Equity	Shareholders' equity On December 17, 2019, the Company announced a normal course issuer bid ("NCIB"), commencing December 20, 2019, to purchase up to 4.80 million Common Shares in the open market for cancellation on or before December 19, 2020. As at September 30, 2020 , the Company had purchased 2.95 million Common Shares for $1,016 million under this NCIB. On October 19, 2018, the Company announced a NCIB, commencing October 24, 2018, to purchase up to 5.68 million Common Shares for cancellation on or before October 23, 2019. The Company completed this NCIB on October 23, 2019. All purchases were made in accordance with the respective NCIB at prevailing 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 provides activities under the share repurchase programs: For the three months ended September 30 For the nine months ended September 30 2020 2019 2020 2019 Number of Common Shares repurchased (1) 1,044,868 1,519,540 2,651,582 3,183,461 Weighted-average price per share (2) $ 379.42 $ 310.36 $ 345.56 $ 299.09 Amount of repurchase (in millions of Canadian dollars) (2) $ 396 $ 471 $ 916 $ 952 (1) Includes shares repurchased but not yet cancelled at end of period. (2) Includes brokerage fees.

Pension and Other Benefits

Pension and Other Benefits	9 Months Ended
	Sep. 30, 2020
Retirement Benefits [Abstract]
Pensions and Other Benefits	Pension and other benefits In the three months ended September 30, 2020 , the Company made contributions of $9 million (three months ended September 30, 2019 - $17 million ) to its defined benefit pension plans. In the nine months ended September 30, 2020 , the Company made contributions of $24 million ( nine months ended September 30, 2019 - $40 million ) to its defined benefit pension plans. Net periodic benefit costs for defined benefit pension plans and other benefits included the following components: For the three months ended September 30 Pensions Other benefits (in millions of Canadian dollars) 2020 2019 2020 2019 Current service cost (benefits earned by employees) $ 35 $ 27 $ 3 $ 3 Other components of net periodic benefit (recovery) cost: Interest cost on benefit obligation 102 113 4 4 Expected return on fund assets (236 ) (236 ) — — Recognized net actuarial loss 44 20 1 1 Amortization of prior service costs (1 ) (1 ) — — Total other components of net periodic benefit (recovery) cost (91 ) (104 ) 5 5 Net periodic benefit (recovery) cost $ (56 ) $ (77 ) $ 8 $ 8 For the nine months ended September 30 Pensions Other benefits (in millions of Canadian dollars) 2020 2019 2020 2019 Current service cost (benefits earned by employees) $ 105 $ 81 $ 9 $ 9 Other components of net periodic benefit (recovery) cost: Interest cost on benefit obligation 305 338 13 14 Expected return on fund assets (709 ) (710 ) — — Recognized net actuarial loss 132 61 3 3 Amortization of prior service costs (1 ) (1 ) — 1 Total other components of net periodic benefit (recovery) cost (273 ) (312 ) 16 18 Net periodic benefit (recovery) cost $ (168 ) $ (231 ) $ 25 $ 27

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2020
Share-based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-based compensation At September 30, 2020 , 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, 2020 of $56 million and $110 million , respectively ( three and nine months ended September 30, 2019 - expense of $15 million and $88 million , respectively). Stock option plan In the nine months ended September 30, 2020 , under CP’s stock option plans, the Company issued 215,943 options at the weighted-average price of $350.65 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 grant date was approximately $15 million . The weighted-average fair value assumptions were approximately: For the nine months ended September 30, 2020 Expected option life (years) (1) 4.75 Risk-free interest rate (2) 1.29% Expected stock price volatility (3) 23.11% Expected annual dividends per share (4) $3.3200 Expected forfeiture rate (5) 4.40% Weighted-average grant date fair value per option granted during the period $68.86 (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 July 21, 2020, the Company announced an increase in its quarterly dividend to $0.9500 per share, representing $3.8000 on an annual basis. (5) The Company estimates forfeitures based on past experience. This rate is monitored on a periodic basis. Performance share unit plans During the nine months ended September 30, 2020 , the Company issued 97,710 Performance Share Units ("PSUs") with a grant date fair value of approximately $34 million and 10,029 Performance Deferred Share Units ("PDSUs") with a grant date fair value, including value of expected future matching units, of approximately $4 million . PSUs and PDSUs attract dividend equivalents in the form of additional units based on dividends paid on the Company’s Common Shares, and vest approximately three years after the grant date, contingent upon CP’s performance ("performance factor"). The fair value of these PSUs and PDSUs is measured periodically until settlement. Vested PSUs are settled in cash. Vested PDSUs are settled in cash pursuant to the Deferred Share Unit ("DSU") Plan and are eligible for a 25% match if the holder has not exceeded their share ownership requirements, and are paid out only when the holder ceases their employment with CP. The performance period for PSUs and PDSUs issued in the nine months ended September 30, 2020 is January 1, 2020 to December 31, 2022 and the performance factors 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 period for PSUs issued in 2017 was January 1, 2017 to December 31, 2019, and the performance factors for these PSUs were ROIC, TSR compared to the S&P/TSX Capped Industrial Index, and TSR compared to S&P 1500 Road and Rail Index. The resulting payout was 193% of the outstanding units multiplied by the Company's average share price calculated using the last 30 trading days preceding December 31, 2019. In the first quarter of 2020, payouts occurred on the total outstanding awards, including dividends reinvested, totalling $76 million on 121,225 outstanding awards. Deferred share unit plan During the nine months ended September 30, 2020 , the Company granted 17,356 DSUs with a grant date fair value of approximately $6 million . DSUs vest over various periods of up to 36 months and are only redeemable for a specified period after employment is terminated. During the nine months ended September 30, 2020, payouts totaling $8 million were made in respect of 25,345 vested DSUs, including dividends reinvested. The expense for DSUs is recognized over the vesting period for both the initial subscription price and the change in value between reporting periods.

Contingencies

Contingencies	9 Months Ended
	Sep. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Contingencies In the normal course of its operations, the Company becomes involved in various legal actions, including claims relating to injuries and damage to property. The Company maintains provisions it considers to be adequate for such actions. While the final outcome with respect to actions outstanding or pending at September 30, 2020 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 business, 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 Montréal Maine and Atlantic Railway (“MMAR”) or a subsidiary, Montréal Maine & Atlantic Canada Co. (“MMAC” and collectively the “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 exclusively controlled the train. Following the derailment, MMAC sought court protection in Canada under the Companies’ Creditors Arrangement Act and MMAR filed for bankruptcy in the U.S. 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 remediate the derailment site (the "Cleanup Order") and served CP with a Notice of Claim for $95 million for those 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 Québec (“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 was responsible for the petroleum crude oil from its point of origin until its delivery to Irving Oil Ltd.; 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 was certified against CP on May 8, 2015 (the "Class Action"). Other defendants including MMAC and Mr. Thomas Harding ("Harding") were added to the Class Action on January 25, 2017. The Class Action seeks unquantified damages, including for wrongful death, personal injury, property damage, and economic loss. (4) Eight subrogated insurers sued CP in the Québec Superior Court claiming approximately $16 million in damages, which was amended and reduced to approximately $15 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. As such, the extent of any overlap between the damages claimed in these actions and under the Plans is unclear. The Royal Action is stayed pending determination of the consolidated proceedings described below. On December 11, 2017, the AGQ Action, the Class Action and the Promutuel Action were consolidated. These consolidated claims are currently scheduled for a joint liability trial commencing on or around September 13, 2021, followed by a damages trial, if necessary. (5) Forty-eight plaintiffs (all 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 majority of 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 claims described above. (6) The MMAR U.S. bankruptcy 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 approximately U.S. $30 million in damages for MMAR’s loss in business value according to a recent report. 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 improperly packaged the petroleum crude oil. On CP’s motion, the Maine Actions were dismissed. The plaintiffs are appealing the dismissal decision, which is pending. (8) The trustee for the wrongful death trust commenced Carmack Amendment claims against CP in North Dakota Federal Court, seeking to recover approximately U.S. $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 U.S. $110 million and U.S. $60 million , respectively). The Court issued an Order on August 6, 2020 granting and denying in parts the parties' summary judgment motions, which Order is now subject to further review based on pending motions by the parties. This action is scheduled for trial on March 23, 2021. 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, 2020 was $2 million and $6 million , respectively ( three and nine months ended September 30, 2019 - $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, 2020 was $81 million ( December 31, 2019 - $77 million ). Payments are expected to be made over 10 years through 2029.

Subsequent Event

Subsequent Event	9 Months Ended
	Sep. 30, 2020
Subsequent Events [Abstract]
Subsequent Event	Subsequent event On October 15, 2020, CP and OMERS Infrastructure Management Inc. (“OMERS”) entered into a purchase agreement whereby CP will acquire the 83.5 percent ownership of the Detroit River Tunnel Partnership, currently held by certain affiliates of OMERS. CP currently owns the remaining 16.5 percent. The purchase price for the transaction is approximately U.S. $312 million subject to customary closing adjustments. The acquisition is currently expected to close at the end of 2020 and is subject to customary closing conditions, including regulatory approvals.

Basis of Presentation (Policies

Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2020
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 2019 annual Consolidated Financial Statements and notes included in CP's 2019 Annual Report on Form 10-K. The accounting policies used are consistent with the accounting policies used in preparing the 2019 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, 2020
Accounting Standards Update and Change in Accounting Principle [Abstract]
Accounting Changes	Implemented in 2020 Financial Instruments - Credit Losses On January 1, 2020, the Company adopted the new Accounting Standards Update ("ASU") 2016-13, issued by the Financial Accounting Standards Board ("FASB"), and all related amendments under FASB Accounting Standards Codification ("ASC") Topic 326, Financial Instruments - Credit Losses. Using a modified retrospective approach, the Company recognized a cumulative-effect adjustment to its opening retained earnings balance 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. The impact of the adoption of ASC 326 as at January 1, 2020 was an increase in the allowance for credit losses of $1 million , with the offsets to "Deferred income taxes" and "Retained earnings" on the Company's Interim Consolidated Balance Sheet. See Note 8 for further discussion of the current period credit loss. Simplification of Financial Disclosures about Guarantors During the second quarter of 2020, the Company early adopted the Securities and Exchange Commission amendments to the financial disclosure requirements for guarantors and issuers of guaranteed securities, as specified in Rule 3-10 of Regulation S-X. The amendments simplify disclosure requirements by replacing condensed consolidating financial information (“CCFI”) with summarized financial information and expanded qualitative non-financial disclosures about the guarantees, issuers, and guarantors. This disclosure can be found in the Liquidity and Capital Resources section of Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.

Accounts Receivable, Net (Polic

Accounts Receivable, Net (Policies)	9 Months Ended
	Sep. 30, 2020
Accounts Receivable, after Allowance for Credit Loss [Abstract]
Allowance for Credit Losses	Accounts receivable from customers are recognized initially at fair value and subsequently measured at amortized cost less allowance for expected credit losses. Losses on accounts receivable are estimated based on historical credit loss experience of receivables with similar risk characteristics. Historical loss experience is adjusted to reflect any management expectations that current or future conditions will differ from conditions that existed for the period over which historical information is evaluated. To determine expected credit losses, customer receivables are disaggregated by credit characteristics, type of customer service, customer line of business, and receivable aging.
Accounts Receivable	Receivables are considered to be in default and are written off against the allowance for credit losses when it is probable that all remaining contractual payments due will not be collected in accordance with the terms of the customer contracts. Subsequent recoveries of amounts previously written off are credited to earnings in the period recovered.

Revenues (Tables)

Revenues (Tables)	9 Months Ended
	Sep. 30, 2020
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) 2020 2019 2020 2019 Freight Grain $ 457 $ 409 $ 1,321 $ 1,211 Coal 130 183 411 514 Potash 132 117 390 367 Fertilizers and sulphur 65 66 212 186 Forest products 85 78 244 229 Energy, chemicals and plastics 321 382 1,153 1,043 Metals, minerals and consumer products 152 201 474 579 Automotive 94 87 215 267 Intermodal 385 409 1,153 1,193 Total freight revenues 1,821 1,932 5,573 5,589 Non-freight excluding leasing revenues 27 32 80 89 Revenues from contracts with customers 1,848 1,964 5,653 5,678 Leasing revenues 15 15 45 45 Total revenues $ 1,863 $ 1,979 $ 5,698 $ 5,723
Changes in Contract Liabilities	The following table summarizes the changes in contract liabilities: For the three months ended September 30 For the nine months ended September 30 (in millions of Canadian dollars) 2020 2019 2020 2019 Opening balance $ 79 $ 74 $ 146 $ 2 Revenue recognized that was included in the contract liability balance at the beginning of the period (25 ) (8 ) (95 ) (2 ) Increase due to consideration received, net of revenue recognized during the period 5 4 8 70 Closing balance $ 59 $ 70 $ 59 $ 70

Other (Income) Expense (Tables)

Other (Income) Expense (Tables)	9 Months Ended
	Sep. 30, 2020
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) 2020 2019 2020 2019 Foreign exchange (gain) loss on debt and lease liabilities $ (40 ) $ 25 $ 89 $ (57 ) Other foreign exchange losses (gains) 2 2 (2 ) (4 ) Other 2 2 2 3 Other (income) expense $ (36 ) $ 29 $ 89 $ (58 )

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Sep. 30, 2020
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) 2020 2019 2020 2019 Current income tax expense $ 144 $ 115 $ 430 $ 358 Deferred income tax expense 45 96 133 116 Income tax expense $ 189 $ 211 $ 563 $ 474

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2020
Earnings Per Share [Abstract]
Shares Used in the Earnings Per Share Calculation	The number of shares used in the earnings per share calculations are reconciled as follows: For the three months ended September 30 For the nine months ended September 30 (in millions) 2020 2019 2020 2019 Weighted-average basic shares outstanding 135.2 138.1 135.9 139.3 Dilutive effect of stock options 0.6 0.6 0.5 0.5 Weighted-average diluted shares outstanding 135.8 138.7 136.4 139.8

Changes in Accumulated Other _2

Changes in Accumulated Other Comprehensive Loss ("AOCL") by Component (Tables)	9 Months Ended
	Sep. 30, 2020
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
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, 2020 $ 116 $ (52 ) $ (2,514 ) $ (2,450 ) Other comprehensive loss before reclassifications (1 ) — — (1 ) Amounts reclassified from accumulated other comprehensive loss — 2 33 35 Net other comprehensive (loss) income (1 ) 2 33 34 Closing balance, September 30, 2020 $ 115 $ (50 ) $ (2,481 ) $ (2,416 ) 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 ) (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, 2020 $ 112 $ (54 ) $ (2,580 ) $ (2,522 ) Other comprehensive income (loss) before reclassifications 3 (2 ) — 1 Amounts reclassified from accumulated other comprehensive loss — 6 99 105 Net other comprehensive income 3 4 99 106 Closing balance, September 30, 2020 $ 115 $ (50 ) $ (2,481 ) $ (2,416 ) 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 ) (1) Amounts are presented net of tax.
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) 2020 2019 2020 2019 Amortization of prior service costs (1) $ (1 ) $ (1 ) $ (1 ) $ — Recognition of net actuarial loss (1) 45 21 135 62 Total before income tax 44 20 134 62 Income tax recovery (11 ) (5 ) (35 ) (15 ) Total net of income tax $ 33 $ 15 $ 99 $ 47 (1) Impacts " Other components of net periodic benefit recovery " on the Interim Consolidated Statements of Income.

Accounts Receivable, Net (Table

Accounts Receivable, Net (Tables)	9 Months Ended
	Sep. 30, 2020
Accounts Receivable, after Allowance for Credit Loss [Abstract]
Accounts Receivable, Allowance for Credit Loss	For the three months ended September 30, 2020 For the nine months ended September 30, 2020 (in millions of Canadian dollars) Freight Non-freight Total Freight Non-freight Total Allowance for credit losses, opening balance (1) $ (26 ) $ (14 ) $ (40 ) $ (27 ) $ (16 ) $ (43 ) Current period credit loss provision, net — — — 1 2 3 Allowance for credit losses, closing balance $ (26 ) $ (14 ) $ (40 ) $ (26 ) $ (14 ) $ (40 ) (1) O
Schedule of Accounts Receivable	As at September 30, 2020 (in millions of Canadian dollars) Freight Non-freight Total Total accounts receivable $ 705 $ 175 $ 880 Allowance for credit losses (26 ) (14 ) (40 ) Total accounts receivable, net $ 679 $ 161 $ 840

Business Combination (Tables)

Business Combination (Tables)	9 Months Ended
	Sep. 30, 2020
Business Combinations [Abstract]
Schedule of Assets Acquired and Liabilities Assumed	The following summarizes the estimated fair values of the acquired assets and liabilities of CMQ U.S. at June 3, 2020: (in millions of Canadian dollars) June 3, 2020 Fair value of net assets acquired: Cash and cash equivalents $ 22 Accounts receivable, net 2 Properties 54 Intangible assets 27 Accounts payable and accrued liabilities (13 ) Other long-term liabilities (5 ) Total identifiable assets and liabilities $ 87 Goodwill 51 $ 138 Consideration: Fair value of previously held equity method investment $ 138

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2020
Stockholders' Equity Note [Abstract]
Activities Under Share Repurchase Program	The following table provides activities under the share repurchase programs: For the three months ended September 30 For the nine months ended September 30 2020 2019 2020 2019 Number of Common Shares repurchased (1) 1,044,868 1,519,540 2,651,582 3,183,461 Weighted-average price per share (2) $ 379.42 $ 310.36 $ 345.56 $ 299.09 Amount of repurchase (in millions of Canadian dollars) (2) $ 396 $ 471 $ 916 $ 952 (1) Includes shares repurchased but not yet cancelled at end of period. (2) Includes brokerage fees.

Pension and Other Benefits (Tab

Pension and Other Benefits (Tables)	9 Months Ended
	Sep. 30, 2020
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 included the following components: For the three months ended September 30 Pensions Other benefits (in millions of Canadian dollars) 2020 2019 2020 2019 Current service cost (benefits earned by employees) $ 35 $ 27 $ 3 $ 3 Other components of net periodic benefit (recovery) cost: Interest cost on benefit obligation 102 113 4 4 Expected return on fund assets (236 ) (236 ) — — Recognized net actuarial loss 44 20 1 1 Amortization of prior service costs (1 ) (1 ) — — Total other components of net periodic benefit (recovery) cost (91 ) (104 ) 5 5 Net periodic benefit (recovery) cost $ (56 ) $ (77 ) $ 8 $ 8 For the nine months ended September 30 Pensions Other benefits (in millions of Canadian dollars) 2020 2019 2020 2019 Current service cost (benefits earned by employees) $ 105 $ 81 $ 9 $ 9 Other components of net periodic benefit (recovery) cost: Interest cost on benefit obligation 305 338 13 14 Expected return on fund assets (709 ) (710 ) — — Recognized net actuarial loss 132 61 3 3 Amortization of prior service costs (1 ) (1 ) — 1 Total other components of net periodic benefit (recovery) cost (273 ) (312 ) 16 18 Net periodic benefit (recovery) cost $ (168 ) $ (231 ) $ 25 $ 27

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2020
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, 2020 Expected option life (years) (1) 4.75 Risk-free interest rate (2) 1.29% Expected stock price volatility (3) 23.11% Expected annual dividends per share (4) $3.3200 Expected forfeiture rate (5) 4.40% Weighted-average grant date fair value per option granted during the period $68.86 (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 July 21, 2020, the Company announced an increase in its quarterly dividend to $0.9500 per share, representing $3.8000 on an annual basis. (5) The Company estimates forfeitures based on past experience. This rate is monitored on a periodic basis.

Accounting Changes - Impact of

Accounting Changes - Impact of ASC 326 Adoption (Details) - CAD ($) $ in Millions	Sep. 30, 2020	Jun. 30, 2020	Jan. 01, 2020	Dec. 31, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Impact of the adoption of ASC 326	$ (40)	$ (40)		$ (43)
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-13
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Impact of the adoption of ASC 326			$ 1

Revenues - Disaggregation of Re

Revenues - Disaggregation of Revenue (Details) - CAD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	$ 1,848	$ 1,964	$ 5,653	$ 5,678
Leasing revenues	15	15	45	45
Total revenues	1,863	1,979	5,698	5,723
Freight
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	1,821	1,932	5,573	5,589
Total revenues	1,821	1,932	5,573	5,589
Grain
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	457	409	1,321	1,211
Coal
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	130	183	411	514
Potash
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	132	117	390	367
Fertilizers and sulphur
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	65	66	212	186
Forest products
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	85	78	244	229
Energy, chemicals and plastics
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	321	382	1,153	1,043
Metals, minerals and consumer products
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	152	201	474	579
Automotive
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	94	87	215	267
Intermodal
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	385	409	1,153	1,193
Non-freight excluding leasing revenues
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	$ 27	$ 32	$ 80	$ 89

Revenues - Contract Liabilities

Revenues - Contract Liabilities (Details) - CAD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Contract with Customer, Liability [Abstract]
Opening balance	$ 79	$ 74	$ 146	$ 2
Revenue recognized that was included in the contract liability balance at the beginning of the period	(25)	(8)	(95)	(2)
Increase due to consideration received, net of revenue recognized during the period	5	4	8	70
Closing balance	$ 59	$ 70	$ 59	$ 70

Other (Income) Expense - Other

Other (Income) Expense - Other Income and Expense (Details) - CAD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Other Income and Expenses [Abstract]
Foreign exchange (gain) loss on debt and lease liabilities	$ (40)	$ 25	$ 89	$ (57)
Other foreign exchange losses (gains)	2	2	(2)	(4)
Other	2	2	2	3
Other (income) expense	$ (36)	$ 29	$ 89	$ (58)

Income Taxes - Summary of Incom

Income Taxes - Summary of Income Tax Expense (Details) - CAD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Current income tax expense	$ 144	$ 115	$ 430	$ 358
Deferred income tax expense	45	96	133	116
Income tax expense	$ 189	$ 211	$ 563	$ 474

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) - CAD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Effective tax rate	23.97%	25.43%	25.52%	21.06%
Effective tax rate, excluding discrete items	25.00%	25.11%	25.00%	25.50%
Foreign exchange (gain) loss on debt and lease liabilities	$ (40)	$ 25	$ 89	$ (57)
Deferred income tax recovery from rate decrease				$ (88)

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, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Earnings Per Share [Abstract]
Weighted-average basic shares outstanding	135.2	138.1	135.9	139.3
Dilutive effect of stock options	0.6	0.6	0.5	0.5
Weighted-average diluted shares outstanding	135.8	138.7	136.4	139.8

Earnings Per Share - Narrative

Earnings Per Share - Narrative (Details) - shares shares in Millions	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
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	0.1	0.1

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, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
AOC Income (Loss), Opening balance	$ (2,450)	$ (2,009)	$ (2,522)	$ (2,043)
Other comprehensive income (loss) before reclassifications	(1)	1	1	(1)
Amounts reclassified from accumulated other comprehensive loss	35	16	105	52
Net other comprehensive (loss) income	34	17	106	51
AOC Income (Loss), Closing balance	(2,416)	(1,992)	(2,416)	(1,992)
Foreign currency net of hedging activities
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
AOC Income (Loss), Opening balance	116	112	112	113
Other comprehensive income (loss) before reclassifications	(1)	1	3	0
Amounts reclassified from accumulated other comprehensive loss	0	0	0	0
Net other comprehensive (loss) income	(1)	1	3	0
AOC Income (Loss), Closing balance	115	113	115	113
Derivatives and other
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
AOC Income (Loss), Opening balance	(52)	(58)	(54)	(62)
Other comprehensive income (loss) before reclassifications	0	0	(2)	0
Amounts reclassified from accumulated other comprehensive loss	2	1	6	5
Net other comprehensive (loss) income	2	1	4	5
AOC Income (Loss), Closing balance	(50)	(57)	(50)	(57)
Pension and post-retirement defined benefit plans
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
AOC Income (Loss), Opening balance	(2,514)	(2,063)	(2,580)	(2,094)
Other comprehensive income (loss) before reclassifications	0	0	0	(1)
Amounts reclassified from accumulated other comprehensive loss	33	15	99	47
Net other comprehensive (loss) income	33	15	99	46
AOC Income (Loss), Closing balance	$ (2,481)	$ (2,048)	$ (2,481)	$ (2,048)

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) - Reclassification out of Accumulated Other Comprehensive Income [Member] - CAD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amortization of prior service costs	$ (1)	$ (1)	$ (1)	$ 0
Recognition of net actuarial loss	45	21	135	62
Total before income tax	44	20	134	62
Income tax recovery	(11)	(5)	(35)	(15)
Total net of income tax	$ 33	$ 15	$ 99	$ 47

Accounts Receivable, Net - Allo

Accounts Receivable, Net - Allowance for Credit Loss (Details) - CAD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2020
Allowance for Credit Loss [Roll Forward]
Allowance for credit losses, opening balance	$ (40)	$ (43)
Current period credit loss provision, net	0	3
Allowance for credit losses, closing balance	(40)	(40)
Freight
Allowance for Credit Loss [Roll Forward]
Allowance for credit losses, opening balance	(26)	(27)
Current period credit loss provision, net	0	1
Allowance for credit losses, closing balance	(26)	(26)
Non-freight
Allowance for Credit Loss [Roll Forward]
Allowance for credit losses, opening balance	(14)	(16)
Current period credit loss provision, net	0	2
Allowance for credit losses, closing balance	$ (14)	$ (14)

Accounts Receivable, Net - Sche

Accounts Receivable, Net - Schedule of Accounts Receivable (Details) - CAD ($) $ in Millions	Sep. 30, 2020	Jun. 30, 2020	Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total accounts receivable	$ 880
Allowance for credit losses	(40)	$ (40)	$ (43)
Total accounts receivable, net	840
Freight
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total accounts receivable	705
Allowance for credit losses	(26)	(26)	(27)
Total accounts receivable, net	679
Non-freight
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total accounts receivable	175
Allowance for credit losses	(14)	$ (14)	$ (16)
Total accounts receivable, net	$ 161

Business Combination (Details)

Business Combination (Details) $ in Millions	Jun. 03, 2020CAD ($)	Jun. 03, 2020CAD ($)
CMQ
Business Acquisition [Line Items]
Working capital adjustment		$ 3
CMQ U.S.
Business Acquisition [Line Items]
Goodwill	$ 51	51
Intangible assets	$ 27	27
Intangible asset amortization periods	20 years
Cash and cash equivalents	$ 22	$ 22

Business Combination - Schedule

Business Combination - Schedule of Assets Acquired and Liabilities Assumed (Details) - CMQ U.S. $ in Millions	Jun. 03, 2020CAD ($)
Business Acquisition [Line Items]
Cash and cash equivalents	$ 22
Accounts receivables, net	2
Properties	54
Intangible assets	27
Accounts payable and accrued liabilities	(13)
Other long-term liabilities	(5)
Total identifiable assets and liabilities	87
Goodwill	51
Fair value of net assets acquired	138
Fair value of previously held equity method investment	$ 138

Debt - Narrative (Details)

Debt - Narrative (Details)	3 Months Ended
	Mar. 31, 2020CAD ($)	Mar. 31, 2020USD ($)	Sep. 30, 2020USD ($)	Mar. 31, 2020USD ($)	Dec. 31, 2019USD ($)
Debt Instrument [Line Items]
Commercial paper borrowings			$ 345,000,000		$ 397,000,000
Commercial Paper
Debt Instrument [Line Items]
Maximum borrowing capacity, Commercial paper			$ 1,000,000,000
Weighted-average interest rate			0.20%		2.03%
U.S $1.0 Billion Tranche
Debt Instrument [Line Items]
Current borrowing capacity			$ 1,000,000,000
U.S. $300 Million Tranche
Debt Instrument [Line Items]
Current borrowing capacity			300,000,000	$ 300,000,000
Revolving credit facility, Drawn		$ 100,000,000
Revolving Credit Facility
Debt Instrument [Line Items]
Current borrowing capacity			$ 1,300,000,000
2.050% 10-year Notes
Debt Instrument [Line Items]
Debt instrument, Face amount				$ 500,000,000
Debt instrument, Interest rate	2.05%			2.05%
Debt instrument, Term	10 years	10 years
Debt instrument, Maturity date	Mar. 5, 2030	Mar. 5, 2030
Net proceeds from issuance of debt	$ 662,000,000	$ 495,000,000
3.050% 30-year Notes
Debt Instrument [Line Items]
Debt instrument, Face amount	$ 300,000,000
Debt instrument, Interest rate	3.05%			3.05%
Debt instrument, Term	30 years	30 years
Debt instrument, Maturity date	Mar. 9, 2050	Mar. 9, 2050
Net proceeds from issuance of debt	$ 296,000,000

Financial Instruments - Narrati

Financial Instruments - Narrative (Details) - CAD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Schedule of Investments [Line Items]
Debt and finance lease liabilities, Carrying value	$ 9,327		$ 9,327		$ 8,241
Debt and finance lease liabilities, Fair value	11,860		11,860		$ 10,149
Net Investment Hedge
Schedule of Investments [Line Items]
Gain (loss) on net investment hedge	$ 135	$ (68)	$ (156)	$ 172

Shareholders' Equity - Narrativ

Shareholders' Equity - Narrative (Details) - CAD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2020	Sep. 30, 2019	Dec. 17, 2019	Oct. 19, 2018
Common Shares repurchased	1,000,000	1,600,000		2,700,000	3,200,000
Common Shares repurchased (value)	$ 396	$ 471		$ 916	$ 952
Current Normal Course Issuer Bid (NCIB)
Common Shares authorized to be repurchased						4,800,000
Common Shares repurchased	1,044,868		2,950,000	2,651,582
Common Shares repurchased (value)	$ 396		$ 1,016	$ 916
2018 Normal Course Issuer Bid (NCIB)
Common Shares authorized to be repurchased							5,680,000
Common Shares repurchased		1,519,540			3,183,461
Common Shares repurchased (value)		$ 471			$ 952

Shareholders' Equity - Activiti

Shareholders' Equity - Activities Under Share Repurchase Program (Detail) - CAD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2020	Sep. 30, 2019
Number of Common Shares repurchased	1,000,000	1,600,000	2,700,000		3,200,000
Amount of repurchase (in millions of Canadian dollars)	$ 396	$ 471	$ 916		$ 952
Current Normal Course Issuer Bid (NCIB)
Number of Common Shares repurchased	1,044,868		2,651,582	2,950,000
Weighted-average price per share	$ 379.42		$ 345.56
Amount of repurchase (in millions of Canadian dollars)	$ 396		$ 916	$ 1,016
2018 Normal Course Issuer Bid (NCIB)
Number of Common Shares repurchased		1,519,540			3,183,461
Weighted-average price per share		$ 310.36			$ 299.09
Amount of repurchase (in millions of Canadian dollars)		$ 471			$ 952

Pension and Other Benefits - Na

Pension and Other Benefits - Narrative (Details) - CAD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Defined Benefit Pension Plan
Defined Benefit Plan Disclosure [Line Items]
Contributions made by the Company	$ 9	$ 17	$ 24	$ 40

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, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Defined Benefit Plan and Other Postretirement Benefit Plans
Total other components of net periodic benefit (recovery) cost	$ (86)	$ (99)	$ (257)	$ (294)
Defined Benefit Pension Plan
Defined Benefit Plan and Other Postretirement Benefit Plans
Current service cost (benefits earned by employees)	35	27	105	81
Interest cost on benefit obligation	102	113	305	338
Expected return on fund assets	(236)	(236)	(709)	(710)
Recognized net actuarial loss	44	20	132	61
Amortization of prior service costs	(1)	(1)	(1)	(1)
Total other components of net periodic benefit (recovery) cost	(91)	(104)	(273)	(312)
Net periodic benefit (recovery) cost	(56)	(77)	(168)	(231)
Other Post-retirement Benefit Plans
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	4	13	14
Expected return on fund assets	0	0	0	0
Recognized net actuarial loss	1	1	3	3
Amortization of prior service costs	0	0	0	1
Total other components of net periodic benefit (recovery) cost	5	5	16	18
Net periodic benefit (recovery) cost	$ 8	$ 8	$ 25	$ 27

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, 2020	Mar. 31, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 56		$ 15	$ 110	$ 88
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options issued				215,943
Weighted-average grant price				$ 350.65
Expiration period				7 years
Stock options grant date fair value				$ 15
Stock Options | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period				12 months
Stock Options | Maximum
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				97,710
Grant date fair value				$ 34
PSU payout percentage						193.00%
Number of trading days						30 days
Cash payout		$ 76
Units paid in period		121,225
Performance Deferred Share Units (PDSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Units issued				10,029
Grant date fair value				$ 4
Number of additional PDSUs that can be granted as a percentage of original units granted	25.00%			25.00%
PSUs and PDSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period				3 years
Deferred Share Units (DSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period				36 months
Units issued				17,356
Grant date fair value				$ 6
Cash payout				$ 8
Units paid in period				25,345

Stock-Based Compensation - Weig

Stock-Based Compensation - Weighted-Average Fair Value Assumptions (Details) - CAD ($)	Jul. 21, 2020	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividends declared per share		$ 0.9500	$ 0.8300	$ 2.6100	$ 2.3100
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected option life (years)				4 years 9 months
Risk-free interest rate				1.29%
Expected stock price volatility				23.11%
Expected annual dividends per share	$ 3.8000			$ 3.3200
Estimated forfeiture rate				4.40%
Weighted-average grant date fair value per option granted during the period				$ 68.86
Dividends declared per share	$ 0.9500

Contingencies - Legal Proceedin

Contingencies - Legal Proceedings (Details) - 9 months ended Sep. 30, 2020 - Lac-Megantic Rail Accident $ in Millions, $ in Millions	CAD ($)claim	USD ($)claim
Claimed derailment damages
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 Subrogated Insurers | Subrogated insurance claim
Other Commitments [Line Items]
Value of damages sought	15
Initial value of damages sought	$ 16
Number of subrogated insurer claims | claim	8	8
Additional Subrogated Insurers | Subrogated insurance claim
Other Commitments [Line Items]
Value of damages sought	$ 3
Number of subrogated insurer claims | claim	2	2
Class Action Plaintiffs
Other Commitments [Line Items]
Value of damages sought	$ 5
Number of plaintiffs | claim	48	48
MMAR Estate Representative | Damages for loss in business value
Other Commitments [Line Items]
Value of damages sought		$ 30
WD Trustee | Damaged rail cars and lost crude recovery
Other Commitments [Line Items]
Value of damages sought		6
WD Trustee | Reimbursement for settlement paid by consignor
Other Commitments [Line Items]
Value of damages sought		110
WD 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, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Site Contingency [Line Items]
Total amount provided for provisions for environmental remediation costs	$ 81		$ 81		$ 77
Term for expected payments to be made			10 years
Purchased services and other
Site Contingency [Line Items]
Environmental remediation expense	$ 2	$ 2	$ 6	$ 4

Subsequent Event (Details)

Subsequent Event (Details) - Subsequent Event $ in Millions	Oct. 15, 2020USD ($)
Subsequent Event [Line Items]
Detroit River Tunnel Partnership, Current ownership percentage	16.50%
Forecast
Subsequent Event [Line Items]
Detroit River Tunnel Partnership, Percentage of voting interests to be acquired	83.50%
Purchase price for transaction	$ 312

Uncategorized Items - q32020qua

Label	Element	Value
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest	$ 7,068,000,000
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Common Stock [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest	1,993,000,000
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Additional Paid-in Capital [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest	48,000,000
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Retained Earnings [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest	7,549,000,000
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | AOCI Attributable to Parent [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest	(2,522,000,000)
Accounting Standards Update 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest	(1,000,000)
Accounting Standards Update 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Retained Earnings [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest	$ (1,000,000)