Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 29, 2024 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-01342 | |
Entity Registrant Name | CANADIAN PACIFIC KANSAS CITY LTD/CN | |
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, Country | CA | |
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 | 933,125,135 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000016875 | |
Current Fiscal Year End Date | --12-31 | |
Common Shares, without par value, of Canadian Pacific Railway Limited | NEW YORK STOCK EXCHANGE, INC. | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Shares, without par value, of Canadian Pacific Kansas City Limited | |
Trading Symbol | CP | |
Security Exchange Name | NYSE | |
Common Shares, without par value, of Canadian Pacific Railway Limited | TORONTO STOCK EXCHANGE | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Shares, without par value, of Canadian Pacific Kansas City Limited | |
Trading Symbol | CP | |
Perpetual 4% Consolidated Debenture Stock of Canadian Pacific Railway Company | NEW YORK STOCK EXCHANGE, INC. | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Perpetual 4% Consolidated Debenture Stock of Canadian Pacific Railway Company | |
Trading Symbol | CP40 | |
Security Exchange Name | NYSE | |
Perpetual 4% Consolidated Debenture Stock of Canadian Pacific Railway Company | LONDON STOCK EXCHANGE | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Perpetual 4% Consolidated Debenture Stock of Canadian Pacific Railway Company | |
Trading Symbol | BC87 |
INTERIM CONSOLIDATED STATEMENTS
INTERIM CONSOLIDATED STATEMENTS OF INCOME - CAD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenues (Note 3) | ||||
Total revenues | $ 3,603 | $ 3,174 | $ 7,123 | $ 5,440 |
Operating expenses | ||||
Compensation and benefits (Note 8) | 612 | 659 | 1,302 | 1,097 |
Fuel | 466 | 397 | 924 | 723 |
Materials (Note 8) | 97 | 98 | 191 | 170 |
Equipment rents | 82 | 80 | 164 | 110 |
Depreciation and amortization (Note 8) | 473 | 410 | 940 | 635 |
Purchased services and other (Note 8) | 606 | 586 | 1,186 | 932 |
Total operating expenses | 2,336 | 2,230 | 4,707 | 3,667 |
Operating income | 1,267 | 944 | 2,416 | 1,773 |
Less: | ||||
Equity earnings of Kansas City Southern (Note 8, 9) | 0 | (26) | 0 | (230) |
Other (income) expense (Note 8, 10) | (40) | 21 | (42) | 23 |
Other components of net periodic benefit recovery (Note 12) | (88) | (83) | (176) | (169) |
Net interest expense (Note 8) | 200 | 204 | 406 | 358 |
Remeasurement loss of Kansas City Southern (Note 8) | 0 | 7,175 | 0 | 7,175 |
Income before income taxes | 1,195 | (6,347) | 2,228 | (5,384) |
Income (loss) before income tax expense (recovery) | ||||
Current income tax expense (Note 4) | 274 | 281 | 516 | 419 |
Deferred income tax expense (recovery) (Note 4, 8) | 18 | (7,953) | 35 | (7,928) |
Income tax expense (recovery) (Note 4) | 292 | (7,672) | 551 | (7,509) |
Net income | 903 | 1,325 | 1,677 | 2,125 |
Less: Net (loss) income attributable to non-controlling interest (Note 8) | (2) | 1 | (3) | 1 |
Net income attributable to controlling shareholders | $ 905 | $ 1,324 | $ 1,680 | $ 2,124 |
Earnings per share (Note 5) | ||||
Basic earnings per share (in dollars per share) | $ 0.97 | $ 1.42 | $ 1.80 | $ 2.28 |
Diluted earnings per share (in dollars per share) | $ 0.97 | $ 1.42 | $ 1.80 | $ 2.28 |
Weighted-average number of shares (millions) (Note 5) | ||||
Basic (in shares) | 932.8 | 931.2 | 932.6 | 930.9 |
Diluted (in shares) | 934.6 | 933.8 | 934.5 | 933.6 |
Dividends declared per share (in dollars per share) | $ 0.19 | $ 0.19 | $ 0.38 | $ 0.38 |
Freight | ||||
Revenues (Note 3) | ||||
Total revenues | $ 3,534 | $ 3,101 | $ 6,961 | $ 5,318 |
Non-freight | ||||
Revenues (Note 3) | ||||
Total revenues | $ 69 | $ 73 | $ 162 | $ 122 |
INTERIM CONSOLIDATED STATEMEN_2
INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 903 | $ 1,325 | $ 1,677 | $ 2,125 |
Net gain (loss) in foreign currency translation adjustments, net of hedging activities | 301 | (611) | 1,000 | (638) |
Change in derivatives designated as cash flow hedges | 3 | 1 | 4 | 3 |
Change in pension and post-retirement defined benefit plans | 11 | (3) | 23 | 5 |
Other comprehensive (loss) income from equity investees | (2) | 4 | (2) | 7 |
Other comprehensive income (loss) before income taxes | 313 | (609) | 1,025 | (623) |
Income tax (expense) recovery | 0 | (17) | 6 | (20) |
Net other comprehensive income (loss) | 313 | (626) | 1,031 | (643) |
Comprehensive income | 1,216 | 699 | 2,708 | 1,482 |
Comprehensive income (loss) attributable to non-controlling interest | 9 | (7) | 31 | (7) |
Comprehensive income attributable to controlling shareholders | $ 1,207 | $ 706 | $ 2,677 | $ 1,489 |
INTERIM CONSOLIDATED BALANCE SH
INTERIM CONSOLIDATED BALANCE SHEETS AS AT - CAD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets | ||
Cash and cash equivalents | $ 557 | $ 464 |
Accounts receivable, net (Note 7) | 1,893 | 1,887 |
Materials and supplies | 421 | 400 |
Other current assets | 334 | 251 |
Total current assets | 3,205 | 3,002 |
Investments | 559 | 533 |
Properties | 53,470 | 51,744 |
Goodwill (Note 8) | 18,411 | 17,729 |
Intangible assets | 3,035 | 2,974 |
Pension asset | 3,516 | 3,338 |
Other assets | 596 | 582 |
Total assets | 82,792 | 79,902 |
Current liabilities | ||
Accounts payable and accrued liabilities | 2,611 | 2,567 |
Long-term debt maturing within one year (Note 10, 11) | 3,668 | 3,143 |
Total current liabilities | 6,279 | 5,710 |
Pension and other benefit liabilities | 582 | 581 |
Other long-term liabilities | 812 | 797 |
Long-term debt (Note 10, 11) | 18,956 | 19,351 |
Deferred income taxes | 11,340 | 11,052 |
Total liabilities | 37,969 | 37,491 |
Shareholders’ equity | ||
Share capital | 25,655 | 25,602 |
Additional paid-in capital | 93 | 88 |
Accumulated other comprehensive income (loss) (Note 6) | 379 | (618) |
Retained earnings | 17,745 | 16,420 |
Total shareholders' equity | 43,872 | 41,492 |
Non-controlling interest | 951 | 919 |
Total equity | 44,823 | 42,411 |
Total liabilities and equity | $ 82,792 | $ 79,902 |
INTERIM CONSOLIDATED STATEMEN_3
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Operating activities | ||||
Net income | $ 903 | $ 1,325 | $ 1,677 | $ 2,125 |
Reconciliation of net income to cash provided by operating activities: | ||||
Depreciation and amortization (Note 8) | 473 | 410 | 940 | 635 |
Deferred income tax expense (recovery) (Note 4, 8) | 18 | (7,953) | 35 | (7,928) |
Pension recovery and funding (Note 12) | (75) | (78) | (151) | (155) |
Equity earnings of Kansas City Southern (Note 8, 9) | 0 | (26) | 0 | (230) |
Remeasurement loss of Kansas City Southern (Note 8) | 0 | 7,175 | 0 | 7,175 |
Dividend from Kansas City Southern (Note 9) | 0 | 0 | 0 | 300 |
Settlement of foreign currency forward contracts (Note 11) | 0 | 0 | (65) | 0 |
Other operating activities, net | (69) | 28 | (68) | (19) |
Changes in non-cash working capital balances related to operations | 28 | 11 | (75) | (129) |
Net cash provided by operating activities | 1,278 | 892 | 2,293 | 1,774 |
Investing activities | ||||
Additions to properties | (808) | (628) | (1,335) | (1,034) |
Additions to Meridian Speedway properties | (16) | (8) | (20) | (8) |
Proceeds from sale of properties and other assets | 9 | 12 | 10 | 16 |
Cash acquired on control of Kansas City Southern (Note 8) | 0 | 298 | 0 | 298 |
Investment in government securities (Note 12) | 0 | (267) | 0 | (267) |
Other investing activities, net | 33 | (24) | 21 | (24) |
Net cash used in investing activities | (782) | (617) | (1,324) | (1,019) |
Financing activities | ||||
Dividends paid | (178) | (176) | (355) | (353) |
Issuance of Common Shares | 20 | 19 | 42 | 37 |
Repayment of long-term debt, excluding commercial paper (Note 10) | (149) | (610) | (220) | (1,096) |
Net (repayment) issuance of commercial paper (Note 10) | (157) | 550 | (362) | 550 |
Acquisition-related financing fees (Note 12) | 0 | (15) | 0 | (15) |
Other | 0 | (1) | 0 | (1) |
Net cash used in financing activities | (464) | (233) | (895) | (878) |
Effect of foreign currency fluctuations on foreign-denominated cash and cash equivalents | 6 | (7) | 19 | (3) |
Cash position | ||||
Net increase (decrease) in cash and cash equivalents | 38 | 35 | 93 | (126) |
Cash and cash equivalents at beginning of period | 519 | 290 | 464 | 451 |
Cash and cash equivalents at end of period | 557 | 325 | 557 | 325 |
Supplemental cash flow information | ||||
Income taxes paid | 309 | 259 | 551 | 443 |
Interest paid | $ 161 | $ 271 | $ 406 | $ 418 |
INTERIM CONSOLIDATED STATEMEN_4
INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - CAD ($) shares in Millions, $ in Millions | Total | Parent | Share capital | Additional paid-in capital | Accumulated other comprehensive Income (loss) | Retained earnings | Non-controlling interest |
Beginning balance (shares) at Dec. 31, 2022 | 930.5 | ||||||
Beginning balance at Dec. 31, 2022 | $ 38,886 | $ 38,886 | $ 25,516 | $ 78 | $ 91 | $ 13,201 | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 2,125 | 2,124 | 2,124 | 1 | |||
Other comprehensive income (loss) | (643) | (635) | (635) | (8) | |||
Dividends declared | (353) | (353) | (353) | ||||
Effect of stock-based compensation expense | 19 | 19 | 19 | ||||
Shares issued under stock option plan (shares) | 0.9 | ||||||
Shares issued under stock option plan | 38 | 38 | $ 47 | (9) | |||
Non-controlling interest in connection with business acquisition | 932 | 932 | |||||
Ending balance (shares) at Jun. 30, 2023 | 931.4 | ||||||
Ending balance at Jun. 30, 2023 | 41,004 | 40,079 | $ 25,563 | 88 | (544) | 14,972 | 925 |
Beginning balance (shares) at Mar. 31, 2023 | 930.9 | ||||||
Beginning balance at Mar. 31, 2023 | 39,520 | 39,520 | $ 25,538 | 84 | 74 | 13,824 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 1,325 | 1,324 | 1,324 | 1 | |||
Other comprehensive income (loss) | (626) | (618) | (618) | (8) | |||
Dividends declared | (176) | (176) | (176) | ||||
Effect of stock-based compensation expense | 9 | 9 | 9 | ||||
Shares issued under stock option plan (shares) | 0.5 | ||||||
Shares issued under stock option plan | 20 | 20 | $ 25 | (5) | |||
Non-controlling interest in connection with business acquisition | 932 | 932 | |||||
Ending balance (shares) at Jun. 30, 2023 | 931.4 | ||||||
Ending balance at Jun. 30, 2023 | 41,004 | 40,079 | $ 25,563 | 88 | (544) | 14,972 | 925 |
Beginning balance (shares) at Dec. 31, 2023 | 932.1 | ||||||
Beginning balance at Dec. 31, 2023 | 42,411 | 41,492 | $ 25,602 | 88 | (618) | 16,420 | 919 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 1,677 | 1,680 | 1,680 | (3) | |||
Contribution from non-controlling interest | 1 | 1 | |||||
Other comprehensive income (loss) | 1,031 | 997 | 997 | 34 | |||
Dividends declared | (355) | (355) | (355) | ||||
Effect of stock-based compensation expense | 16 | 16 | 16 | ||||
Shares issued under stock option plan (shares) | 1 | ||||||
Shares issued under stock option plan | 42 | 42 | $ 53 | (11) | |||
Ending balance (shares) at Jun. 30, 2024 | 933.1 | ||||||
Ending balance at Jun. 30, 2024 | 44,823 | 43,872 | $ 25,655 | 93 | 379 | 17,745 | 951 |
Beginning balance (shares) at Mar. 31, 2024 | 932.6 | ||||||
Beginning balance at Mar. 31, 2024 | 43,761 | 42,819 | $ 25,629 | 95 | 77 | 17,018 | 942 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 903 | 905 | 905 | (2) | |||
Contribution from non-controlling interest | 0 | 0 | |||||
Other comprehensive income (loss) | 313 | 302 | 302 | 11 | |||
Dividends declared | (178) | (178) | (178) | ||||
Effect of stock-based compensation expense | 3 | 3 | 3 | ||||
Shares issued under stock option plan (shares) | 0.5 | ||||||
Shares issued under stock option plan | 21 | 21 | $ 26 | (5) | |||
Ending balance (shares) at Jun. 30, 2024 | 933.1 | ||||||
Ending balance at Jun. 30, 2024 | $ 44,823 | $ 43,872 | $ 25,655 | $ 93 | $ 379 | $ 17,745 | $ 951 |
INTERIM CONSOLIDATED STATEMEN_5
INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (PARENTHETICAL) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared per share (in dollars per share) | $ 0.19 | $ 0.19 | $ 0.38 | $ 0.38 |
Description of business and bas
Description of business and basis of presentation | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of business and basis of presentation | Description of business and basis of presentation Canadian Pacific Kansas City Limited ("CPKC" or the "Company") owns and operates a transcontinental freight railway spanning Canada, the United States ("U.S."), and Mexico. CPKC provides rail and intermodal transportation services over a network of approximately 20,000 miles, serving principal business centres across Canada, the U.S., and Mexico. The Company transports bulk commodities, merchandise, and intermodal freight. CPKC's Common Shares trade on the Toronto Stock Exchange and New York Stock Exchange under the symbol "CP". On April 14, 2023, Canadian Pacific Railway Limited ("CPRL") assumed control of Kansas City Southern ("KCS") and changed its name to Canadian Pacific Kansas City Limited. These unaudited interim consolidated financial statements as at and for the three and six months ended June 30, 2024 ("Interim Consolidated Financial Statements") include KCS as a consolidated subsidiary from April 14, 2023. For the period beginning on January 1, 2023 and ending on April 13, 2023, the Company's 100% interest in KCS was accounted for and reported as an equity-method investment (see Notes 8 and 9). These Interim Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the U.S. ("GAAP"). They do not include all of the information required for a complete set of annual financial statements prepared in accordance with GAAP and should be read in conjunction with the Company's audited consolidated financial statements as at and for the year ended December 31, 2023 ("last annual financial statements"). Selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Company's financial position and results of operations since the last annual financial statements. These Interim Consolidated Financial Statements have been prepared using the same significant accounting policies used in the last annual financial statements, except for the adoption of new standards (see Note 2). Amounts are stated in Canadian dollars unless otherwise noted. The Company's operations and income for interim periods can be affected by seasonal fluctuations such as changes in customer demand and weather conditions, and may not be indicative of annual results. |
Accounting changes
Accounting changes | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Accounting changes | Accounting changes Recently adopted accounting standards The accounting standards that have become effective during the three and six months ended June 30, 2024 did not have a material impact on the Interim Consolidated Financial Statements. Accounting standards not yet adopted |
Revenues
Revenues | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues The following table presents disaggregated information about the Company’s revenues from contracts with customers by major source: For the three months ended June 30 For the six months ended June 30 (in millions of Canadian dollars) 2024 2023 2024 2023 Grain $ 665 $ 537 $ 1,395 $ 1,052 Coal 236 219 445 374 Potash 180 144 317 276 Fertilizers and sulphur 103 89 207 185 Forest products 203 187 405 290 Energy, chemicals and plastics 695 575 1,397 941 Metals, minerals and consumer products 464 440 904 673 Automotive 358 257 623 382 Intermodal 630 653 1,268 1,145 Total freight revenues 3,534 3,101 6,961 5,318 Non-freight excluding leasing revenues 43 39 106 66 Revenues from contracts with customers 3,577 3,140 7,067 5,384 Leasing revenues 26 34 56 56 Total revenues $ 3,603 $ 3,174 $ 7,123 $ 5,440 |
Income taxes
Income taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes During the three months ended June 30, 2024, legislation was enacted to decrease the Arkansas state corporate income tax rate. As a result of this change, the Company recorded a deferred tax recovery of $3 million related to the revaluation of deferred income tax balances. The effective tax rates including discrete items for the three and six months ended June 30, 2024 were 24.40% and 24.72%, respectively, compared to 120.88% and 139.47%, respectively, for the same periods of 2023. For the three months ended June 30, 2024, the effective tax rate was 25.00%, excluding the discrete items of amortization of business acquisition fair value adjustments of $88 million, acquisition-related costs incurred by CPKC of $28 million, and a deferred tax recovery of $3 million on the Arkansas state corporate income tax rate change. For the three months ended June 30, 2023, the effective tax rate was 25.18%, excluding the discrete items of the derecognition of the deferred income tax liability on the outside basis difference of the investment in KCS of $7,832 million upon acquiring control of KCS, remeasurement loss of KCS of $7,175 million, acquisition-related costs incurred by CPKC of $119 million, amortization of business acquisition fair value adjustments of $75 million, revaluation of deferred income tax balances on unitary state apportionment changes of $51 million, and the equity earnings of KCS of $26 million. For the six months ended June 30, 2024, the effective tax rate was 25.00%, excluding the discrete items of amortization of business acquisition fair value adjustments of $174 million, acquisition-related costs incurred by CPKC of $54 million, adjustments to provisions and settlements of Mexican taxes of $10 million recognized in "Compensation and benefits", and a deferred tax recovery of $3 million on the Arkansas state corporate income tax rate change. For the six months ended June 30, 2023, the effective tax rate was 24.88%, excluding the discrete items of the derecognition of the deferred income tax liability on the outside basis difference of the investment in KCS of $7,832 million upon acquiring control of KCS, remeasurement loss of KCS of $7,175 million, the equity earnings of KCS of $230 million, acquisition-related costs incurred by CPKC of $134 million, amortization of business acquisition fair value adjustments of $75 million, revaluation of deferred income tax balances on unitary state apportionment changes of $51 million, and an outside basis deferred tax recovery of $23 million arising from the difference between the carrying amount of CPKC's investment in KCS for financial reporting and the underlying tax basis of this investment. See Note 8 for information regarding the KCS acquisition and Note 9 for information regarding the investment in KCS. Mexican Tax Audits There are certain Mexican subsidiaries with ongoing audits for the years 2016-2019 and 2021. As at June 30, 2024, the Company believes that it has recorded sufficient income tax reserves with respect to these income tax examinations. 2014 Tax Assessment The Kansas City Southern de México, S.A. de C.V. (also known as Canadian Pacific Kansas City Mexico) ("CPKCM") 2014 Tax Assessment is currently in litigation. Following an Administrative Court decision in April 2024 that upheld the Servicio de Administración Tributaria's ("SAT”) (Mexican tax authority) dismissal of CPKCM's administrative appeal and the 2014 Tax Assessment, CPKCM challenged this decision by filing an amparo petition on June 21, 2024 (see Note 14). |
Earnings per share
Earnings per share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Earnings per share | Earnings per share For the three months ended June 30 For the six months ended June 30 (in millions, except per share data) 2024 2023 2024 2023 Net income attributable to controlling shareholders $ 905 $ 1,324 $ 1,680 $ 2,124 Weighted-average basic shares outstanding 932.8 931.2 932.6 930.9 Dilutive effect of stock options 1.8 2.6 1.9 2.7 Weighted-average diluted shares outstanding 934.6 933.8 934.5 933.6 Earnings per share - basic $ 0.97 $ 1.42 $ 1.80 $ 2.28 Earnings per share - diluted $ 0.97 $ 1.42 $ 1.80 $ 2.28 For the three and six months ended June 30, 2024, there were 0.7 million and 0.5 million |
Changes in Accumulated other co
Changes in Accumulated other comprehensive income ("AOCI") by component | 6 Months Ended |
Jun. 30, 2024 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Changes in Accumulated other comprehensive income ("AOCI") by component | Changes in Accumulated other comprehensive income ("AOCI") by component Changes in AOCI attributable to controlling shareholders, net of tax, by component are as follows: For the three months ended June 30 (in millions of Canadian dollars) Foreign currency net of hedging activities Derivatives Pension and post- Equity accounted investments Total Opening balance, April 1, 2024 $ 1,522 $ 6 $ (1,454) $ 3 $ 77 Other comprehensive income (loss) before reclassifications 294 — — (2) 292 Amounts reclassified from AOCI — 2 8 — 10 Net other comprehensive income (loss) 294 2 8 (2) 302 Closing balance, June 30, 2024 $ 1,816 $ 8 $ (1,446) $ 1 $ 379 Opening balance, April 1, 2023 $ 1,478 $ 1 $ (1,404) $ (1) $ 74 Other comprehensive (loss) income before reclassifications (621) — (9) 3 (627) Amounts reclassified from AOCI — 1 7 1 9 Net other comprehensive (loss) income (621) 1 (2) 4 (618) Closing balance, June 30, 2023 $ 857 $ 2 $ (1,406) $ 3 $ (544) For the six months ended June 30 (in millions of Canadian dollars) Foreign currency net of hedging activities Derivatives Pension and post- Equity accounted investments Total Opening balance, January 1, 2024 $ 837 $ 5 $ (1,463) $ 3 $ (618) Other comprehensive income (loss) before reclassifications 979 — — (2) 977 Amounts reclassified from AOCI — 3 17 — 20 Net other comprehensive income (loss) 979 3 17 (2) 997 Closing balance, June 30, 2024 $ 1,816 $ 8 $ (1,446) $ 1 $ 379 Opening balance, January 1, 2023 $ 1,505 $ — $ (1,410) $ (4) $ 91 Other comprehensive (loss) income before reclassifications (648) — (9) 6 (651) Amounts reclassified from AOCI — 2 13 1 16 Net other comprehensive (loss) income (648) 2 4 7 (635) Closing balance, June 30, 2023 $ 857 $ 2 $ (1,406) $ 3 $ (544) |
Accounts receivable, net
Accounts receivable, net | 6 Months Ended |
Jun. 30, 2024 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Accounts receivable, net | Accounts receivable, net (in millions of Canadian dollars) As at June 30, 2024 As at December 31, 2023 Total accounts receivable $ 1,987 $ 1,976 Allowance for credit losses (94) (89) Total accounts receivable, net $ 1,893 $ 1,887 |
Business acquisition
Business acquisition | 6 Months Ended |
Jun. 30, 2024 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
Business acquisition | Business acquisition Kansas City Southern On December 14, 2021, the Company purchased 100% of the issued and outstanding shares of KCS with the objective of creating the only single-line railroad linking the U.S., Mexico and Canada, and the Company placed the shares of KCS in a voting trust. On March 15, 2023, the U.S. Surface Transportation Board (the “STB”) approved the Company and KCS’s joint merger application, and the Company assumed control of KCS on April 14, 2023 (the "Control Date"). From December 14, 2021 to April 13, 2023, the Company recorded its investment in KCS using the equity method of accounting. Accordingly, the Company commenced consolidation of KCS on the Control Date, accounting for the acquisition as a business combination achieved in stages. The results from operations and cash flows have been consolidated prospectively from the Control Date. The Company derecognized its previously held equity method investment in KCS of $44,402 million as of April 13, 2023 and remeasured the investment at its Control Date fair value of $37,227 million, which formed part of the purchase consideration, resulting in a remeasurement loss of $7,175 million recorded in the second quarter of 2023. In addition, and on the same date, a deferred income tax recovery of $7,832 million was recognized upon the derecognition of the deferred income tax liability computed on the outside basis that the Company had recognized in relation to its investment in KCS while accounted for using the equity method. The fair value of the previously held equity interest in KCS was determined by a discounted cash flow approach, which incorporated the Company’s best estimates of long-term growth rates, tax rates, discount rates, and terminal multiples. The identifiable assets acquired, and liabilities and non-controlling interest assumed were measured at their provisional fair values at the Control Date, with certain exceptions, including income taxes, certain contingent liabilities and contract liabilities. The provisional fair values of the tangible assets were determined using valuation techniques including, but not limited to, the market approach and the cost approach. The significant assumptions used to determine the provisional fair value of the tangible assets included, but were not limited to, a selection of comparable assets and an appropriate inflation rate. Presented with the acquired Properties are concession and related assets held under the terms of a concession from the Mexican government (the "Concession"). The Concession expires in June 2047 and is renewable under certain conditions for additional periods, each of up to 50 years. The provisional fair values of the intangible assets were determined using valuation techniques including, but not limited to, the multi-period excess earnings method, the replacement cost method, the relief from royalty method and the income approach. The significant assumptions used to determine the provisional fair values of the intangible assets included, but were not limited to, the renewal probability and term of the Mexican concession extension, discount rates, earnings before interest, tax, depreciation, and amortization ("EBITDA") margins and terminal growth rates. The fair value of non-controlling interest was determined using a combination of the income and market approaches to determine the fair value of Meridian Speedway LLC in which Norfolk Southern Corporation ("NSC") owns a non-controlling interest, and this fair value was allocated proportionately between KCS and NSC. The accounting for the acquisition of KCS was completed on April 13, 2024, with the end of the measurement period and the final validation of the fair values assigned to acquired assets and assumed liabilities. This validation was completed using additional information about facts and circumstances as of the Control Date, that was obtained during the measurement period. The following table summarizes the final purchase price allocation with the amounts recognized in respect of the identifiable assets acquired and liabilities and non-controlling interest assumed on the Control Date, as well as the fair value of the previously held equity interest in KCS and the measurement period adjustments recorded: (in millions of Canadian dollars) Preliminary allocation - April 14, 2023 Measurement period adjustments Final allocation Net assets acquired: Cash and cash equivalents $ 298 $ — $ 298 Net working capital 51 (161) (110) Properties 28,748 1 28,749 Intangible assets 3,022 — 3,022 Other long-term assets 496 (6) 490 Debt including debt maturing within one year (4,545) — (4,545) Deferred income taxes (6,984) 62 (6,922) Other long-term liabilities (406) (37) (443) Total identifiable net assets $ 20,680 $ (141) $ 20,539 Goodwill 17,491 141 17,632 $ 38,171 $ — $ 38,171 Consideration: Fair value of previously held equity method investment $ 37,227 $ — $ 37,227 Intercompany payable balance, net acquired 12 — 12 Fair value of non-controlling interest 932 — 932 Total $ 38,171 $ — $ 38,171 During the measurement period adjustments were recorded as a result of new information that was obtained about facts and circumstances of certain KCS assets and liabilities as of the Control Date. New information obtained during 2023 was primarily in relation to CPKCM's value added tax assets and liabilities, as well as income and other tax positions. New information obtained during the first quarter of 2024 was primarily in relation to KCS's environmental liabilities, certain liabilities for other taxes in Mexico and legal and personal injury claims. Other adjustments recorded in relation to assets and liabilities were not significant in value. These adjustments to the Company's December 31, 2023 Consolidated Balance Sheet and March 31, 2024 Interim Consolidated Balance Sheet had a negligible impact to the Company's net income in 2023 and in the three and six months ended June 30, 2024. The net working capital acquired included trade receivables of $697 million and accounts payable and accrued liabilities of $1,014 million. Intangible assets of $3,022 million consisted of contracts and customer relationships with amortization periods of nine Net working capital and Other long-term liabilities included environmental liabilities of $15 million and $160 million, respectively, and legal and personal injury claims of $44 million and $40 million, respectively, which are contingent on the outcome of uncertain future events. The values are measured at estimated cost and evaluated for changes in facts at the end of the reporting period. The excess of the total consideration, over the amounts allocated to acquired assets and assumed liabilities and non-controlling interest recognized, has been recognized as goodwill of $17,632 million. Goodwill represents future synergies and an acquired assembled workforce. All of the goodwill has been assigned to the Company's single, rail transportation operating segment. None of the goodwill is expected to be deductible for income tax purposes. In relation to certain Mexican tax liabilities identified and recorded through Goodwill during the measurement period, in the first quarter of 2024, the Company also recorded further accruals for liabilities incurred since the Control Date of $10 million, recognized as an expense within "Compensation and benefits". On a pro forma basis, if the Company had consolidated KCS beginning on January 1, 2022, the revenue and net income attributable to controlling shareholders of the combined entity would be as follows for the three and six months ended June 30, 2023: Three Months Ended Six Months Ended (in millions of Canadian dollars) KCS Historical (1) Pro Forma CPKC KCS Historical (1) Pro Forma CPKC Revenue $ 164 $ 3,338 $ 1,351 $ 6,794 Net income attributable to controlling shareholders 34 615 280 1,371 (1) KCS's historical amounts were translated into Canadian dollars at the Bank of Canada daily exchange rate for the period from April 1 to April 13, 2023 and January 1 to April 13, 2023 with effective exchange rates of $1.35 and $1.35, respectively. For the three and six months ended June 30, 2023, the supplemental pro forma Net income attributable to controlling shareholders for the combined entity were adjusted for: • the removal of the remeasurement loss of $7,175 million upon the derecognition of CPRL's previously held equity method investment in KCS from the three and six months ended June 30, 2023, which included the reclassification of associated accumulated other comprehensive income to retained earnings; • depreciation and amortization of differences between the historic carrying value and the preliminary fair value of tangible and intangible assets and investments prior to the Control Date; • amortization of differences between the carrying amount and the fair value of debt through net interest expense prior to the Control Date; • the elimination of intercompany transactions prior to the Control Date between the Company and KCS; • miscellaneous amounts have been reclassified across revenue, operating expenses, and non-operating income or expense, consistent with CPKC's financial statement captions; • the removal of equity earnings from KCS, previously recognized as an equity method investment prior to the Control Date, of $26 million and $230 million for the three and six months ended June 30, 2023, respectively (see Note 9); and • income tax adjustments including: ◦ the derecognition of a deferred income tax recovery of $7,832 million for the three and six months ended June 30, 2023 related to the elimination of the deferred income tax liability on the outside basis difference of the investment in KCS; ◦ the derecognition of a deferred income tax recovery for the three months ended June 30, 2023 on CPKC unitary state apportionment changes; and ◦ a deferred income tax recovery prior to the Control Date on amortization of fair value adjustments to investments, properties, intangible assets, and debt. During the three and six months ended June 30, 2024, the Company incurred $28 million and $54 million, in acquisition-related costs, respectively, of which: • $2 million and $6 million were recognized in "Compensation and benefits", respectively, primarily related to retention and synergy related incentive compensation costs; • $2 million and $4 million were recognized in "Materials", respectively; and • $24 million and $44 million were recognized in "Purchased services and other", respectively, primarily related to system migration, restructuring, and third party purchased services. During the three and six months ended June 30, 2023, the Company incurred $119 million and $134 million, in acquisition-related costs, respectively, of which: • $63 million and $63 million were recognized in "Compensation and benefits", respectively; • $53 million and $65 million were recognized in "Purchased services and other", respectively; and • $3 million and $6 million were recognized in "Other (income) expense", respectively. Acquisition-related costs of $1 million and $11 million incurred by KCS during the three and six months ended June 30, 2023 were included within "Equity earnings of Kansas City Southern". During the three and six months ended June 30, 2024, the Company recognized $86 million ($62 million after deferred income tax recovery of $24 million) and $170 million ($123 million after deferred income tax recovery of $47 million), respectively, of KCS purchase accounting representing incremental depreciation and amortization in relation to fair value adjustments to depreciable property, plant and equipment, intangible assets with definite lives, KCS’s investments, the non-controlling interest, and long-term debt, and amortized over the related assets' remaining useful lives and the remaining terms to maturity of the debt instruments in "Net income", including costs of: • $82 million and $161 million recognized in "Depreciation and amortization", respectively; • $1 million and $2 million recognized in "Purchased services and other", respectively; • $nil and $1 million recognized in "Other (income) expense", respectively; • $5 million and $10 million recognized in "Net interest expense", respectively; and • a recovery of $2 million and $4 million recognized in "Net (loss) income attributable to non-controlling interest", respectively. During the three and six months ended June 30, 2023, the Company recognized $81 million ($61 million after deferred income tax recovery of $20 million) and $123 million ($103 million after deferred income tax recovery of $20 million), respectively, of KCS purchase accounting, including costs of: • $68 million and $68 million recognized in "Depreciation and amortization", respectively; • $6 million and $48 million recognized in "Equity earnings of Kansas City Southern", respectively; • $1 million and $1 million recognized in "Other (income) expense", respectively; and • $6 million and $6 million recognized in "Net interest expense", respectively. |
Investment in KCS
Investment in KCS | 6 Months Ended |
Jun. 30, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in KCS | Investment in KCS On April 14, 2023, the Company assumed control of KCS and subsequently derecognized its equity method investment in KCS (see Note 8). For the period April 1 to 13, 2023 and the period January 1 to April 13, 2023, the Company recognized $26 million and $230 million of equity earnings of KCS, respectively, and received dividends from KCS for the same periods of $nil and $300 million. Included within the equity earnings of KCS recognized for the period April 1 to 13, 2023 and the period January 1 to April 13, 2023 was amortization (net of tax) of basis differences of $6 million and $48 million, respectively, that related to depreciable property, plant and equipment, intangible assets with definite lives, and long-term debt, and are amortized over the related assets' remaining useful lives and the remaining terms to maturity of the debt instruments. The following table presents summarized financial information for KCS, on its historical cost basis: Consolidated Statements of Income (in millions of Canadian dollars) (1) For the period April 1 to April 13, 2023 For the period January 1 to April 13, 2023 Total revenues $ 164 $ 1,351 Total operating expenses 109 888 Operating income 55 463 Less: Other (2) 9 83 Income before income taxes 46 380 Net income $ 34 $ 280 (1) Amounts translated at the average foreign exchange ("FX") rate for the period April 1 to April 13, 2023 and the period January 1 to April 13, 2023 of $1.00 USD = $1.35 CAD. (2) Includes Equity in net earnings of KCS's affiliates, Interest expense, FX loss, and Other income, net. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Debt | Debt During the six months ended June 30, 2024, the Company repaid U.S. $48 million ($66 million) 5.41% Senior Secured Notes at maturity. Debt repurchase During the three months ended June 30, 2024, the Company repurchased certain Senior Notes on the open market. These repurchases were accounted for as debt extinguishments, with gains recorded in “Other (income) expense” on the Company's Interim Consolidated Statements of Income. During the three and six months ended June 30, 2024, the Company repurchased U.S. $110 million ($151 million) of Senior Notes, and recognized a gain of $16 million in "Other (income) expense". During the second quarter of 2024 the company also committed to the repurchase of U.S. $26 million ($35 million) in Senior Notes that were extinguished subsequent to June 30, 2024. Credit facility Effective June 25, 2024, the Company entered into a third amended and restated revolving credit facility (the "facility") agreement to extend the maturity dates of its five-year U.S. $1.1 billion facility and two-year U.S. $1.1 billion facility to June 25, 2029 and June 25, 2026, respectively. Commercial paper program The Company has a commercial paper program, under which it may issue up to a maximum aggregate principal amount of U.S. $1.5 billion in the form of unsecured promissory notes. This commercial paper program is backed by a U.S. $2.2 billion revolving credit facility. As at June 30, 2024, the Company had total commercial paper borrowings outstanding o f U.S. $536 million ($734 million ) included in "Long-term debt maturing within one year" on the Company's Interim Consolidated Balance Sheet (December 31, 2023 - U.S. $800 million). The weighted-average interest rate on these borrowings as at June 30, 2024 wa s 5.53% (December 31, 2023 - 5.59%). |
Financial instruments
Financial instruments | 6 Months Ended |
Jun. 30, 2024 | |
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 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 and term loans. The carrying value of short-term financial instruments approximate their fair value. The carrying value of the Company’s debt does not approximate its fair value. The 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 the balance sheet date. All measurements are classified as Level 2. The Company’s long-term debt, including current maturities, with a carrying value of $21,890 million as at June 30, 2024 (December 31, 2023 - $21,437 million), had a fair value of $20,314 million (December 31, 2023 - $20,550 million ). B. Financial risk management FX management Net investment hedge The majority of the Company’s U.S. dollar-denominated long-term debt, finance lease obligations, and operating lease liabilities have been designated as a hedge of the Company's 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 Company's net investment hedge included in "Other comprehensive income (loss)" for the three and six months ended June 30, 2024 was an unrealized FX loss of $41 million and $144 million, respectively (three and six months ended June 30, 2023 - unrealized FX loss of $163 million and $162 million, respectively). Mexican Peso- U.S. dollar FX Forward contracts The Company’s Mexican subsidiaries have net U.S. dollar-denominated monetary assets or liabilities which, for Mexican income tax purposes, are subject to periodic revaluation based on changes in the value of the Mexican peso ("Ps.") against the U.S dollar. This revaluation creates fluctuations in the Company’s Mexican income tax expense and the amount of income taxes paid in Mexican pesos. The Company also has net monetary assets or liabilities denominated in Mexican pesos that are subject to periodic re-measurement and settlement that create fluctuations within "Other (income) expense". The Company has hedged its net exposure to Mexican peso/U.S dollar fluctuations in earnings with foreign currency forward contracts. The foreign currency forward contracts involve the Company’s agreement to buy or sell pesos at an agreed-upon exchange rate on a future date. The Company measures the foreign currency derivative contracts at fair value each period and recognizes any change in "Other (income) expense". The cash flows associated with these instruments are classified as "Operating activities" within the Interim Consolidated Statements of Cash Flows. During the six months ended June 30, 2024, the Company recorded a loss of $4 million related to foreign exchange currency forwards. As at December 31, 2023, the fair value of outstanding foreign exchange contracts included in "Accounts payable and accrued liabilities" was $60 million. As of January 12, 2024, the Company settled all outstanding foreign currency forward contracts, resulting in a cash outflow of $65 million. Offsetting The Company’s foreign currency forward contracts were executed with counterparties in the U.S. and were governed by International Swaps and Derivatives Association agreements that included standard netting arrangements. Asset and liability positions from contracts with the same counterparty were net settled upon maturity/expiration and presented on a net basis in the Interim Consolidated Balance Sheets prior to settlement. |
Pension and other benefits
Pension and other benefits | 6 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
Pension and other benefits | Pension and other benefits In the three and six months ended June 30, 2024, the Company made contributions to its defined benefit pension plans of $2 million and $5 million, respectively (three and six months ended June 30, 2023 - $5 million and $9 million, respectively). Net periodic benefit (recovery) cost for defined benefit pension plans and other benefits included the following components: For the three months ended June 30 Pensions Other benefits Total (in millions of Canadian dollars) 2024 2023 2024 2023 2024 2023 Current service cost $ 21 $ 17 $ 3 $ 3 $ 24 $ 20 Other components of net periodic benefit (recovery) cost: Interest cost on benefit obligation 117 122 6 6 123 128 Expected return on plan assets (222) (221) — — (222) (221) Recognized net actuarial loss 10 8 — — 10 8 Amortization of prior service costs 1 1 — 1 1 2 Total other components of net periodic benefit (recovery) cost (94) (90) 6 7 (88) (83) Net periodic benefit (recovery) cost $ (73) $ (73) $ 9 $ 10 $ (64) $ (63) For the six months ended June 30 Pensions Other benefits Total (in millions of Canadian dollars) 2024 2023 2024 2023 2024 2023 Current service cost $ 42 $ 35 $ 6 $ 5 $ 48 $ 40 Other components of net periodic benefit (recovery) cost: Interest cost on benefit obligation 234 243 12 11 246 254 Expected return on plan assets (445) (441) — — (445) (441) Recognized net actuarial loss 20 16 — — 20 16 Amortization of prior service costs 3 1 — 1 3 2 Total other components of net periodic benefit (recovery) cost (188) (181) 12 12 (176) (169) Net periodic benefit (recovery) cost $ (146) $ (146) $ 18 $ 17 $ (128) $ (129) |
Stock-based compensation
Stock-based compensation | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based compensation | Stock-based compensation As at June 30, 2024, the Company had several stock-based compensation plans including a stock options plan, various cash-settled liability plans, and an employee share purchase plan. These plans resulted in an expense for the three and six months ended June 30, 2024 of $9 million and $68 million, respectively (three and six months ended June 30, 2023 - expense of $39 million and $71 million, respectively). Stock options plan In the six months ended June 30, 2024, under the Company’s stock options plan, the Company issued 817,609 options at the weighted-average price of $113.77 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 seven years from the grant date. Under the fair value method, the fair value of the stock options at grant date was approximately $27 million. The weighted-average fair value assumptions were approximately: For the six months ended June 30, 2024 Expected option life (years) (1) 4.75 Risk-free interest rate (2) 3.88% Expected share price volatility (3) 28.38% Expected annual dividends per share (4) $0.76 Expected forfeiture rate (5) 3.12% Weighted-average grant date fair value per option granted during the period $33.27 (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. (5) The Company estimates forfeitures based on past experience. This rate is monitored on a periodic basis. Performance share unit plans During the six months ended June 30, 2024, the Company issued 568,159 Performance Share Units ("PSUs") with a grant date fair value of $65 million and 25,589 Performance Deferred Share Units ("PDSUs") with a grant date fair value, including the fair value of expected future matching units, of $3 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 three The performance period for 568,159 PSUs and all PDSUs granted in the six months ended June 30, 2024 is January 1, 2024 to December 31, 2026 and the performance factors are Free Cash Flow ("FCF"), annualized earnings before interest, tax, depreciation, and amortization ("EBITDA"), and Total Shareholder Return "TSR" compared to the S&P/TSX 60 Index, TSR compared to the S&P 500 Industrials Index, and TSR compared to Class 1 Railroads. The performance period for all of the 431,430 PSUs and 12,694 PDSUs granted in 2021 was January 1, 2021 to December 31, 2023, and the performance factors were Return on Invested Capital ("ROIC"), TSR compared to the S&P/TSX 60 Index, and TSR compared to Class I Railways. The resulting payout was 135% of the outstanding units multiplied by the Company's average common share price calculated based on the last 30 trading days preceding December 31, 2023. In the first quarter of 2024, payouts were $54 million on 399,372 PSUs, including dividends reinvested. The 11,372 PDSUs that vested on December 31, 2023, with a fair value of $2 million, including dividends reinvested and matching units, will be paid out in future reporting periods pursuant to the DSU plan (as described above). |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Litigation In the normal course of its operations, the Company becomes involved in various legal actions, including claims relating to injuries and damage to property. The Company maintains provisions it considers to be adequate for such actions. While the final outcome with respect to actions outstanding or pending at June 30, 2024 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, results of operations, or liquidity. However, an unexpected adverse resolution of one or more of these legal actions could have a material adverse effect on the Company's business, financial position, results of operations, or liquidity in a particular quarter or fiscal year. 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 the Company and others: (1) Québec's Minister of Sustainable Development, Environment, Wildlife and Parks ordered various parties, including the Company, to remediate the derailment site (the "Cleanup Order") and served the Company with a Notice of Claim for $95 million for those costs. The Company 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 the Company 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) the Company was responsible for the petroleum crude oil from its point of origin until its delivery to Irving Oil Ltd.; and (ii) the Company 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 the Company 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. On November 28, 2019, the plaintiffs' motion to discontinue their action against Harding was granted. The Class Action seeks unquantified damages, including for wrongful death, personal injury, property damage, and economic loss. (4) Eight subrogated insurers sued the Company 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 the Company 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. The joint liability trial of these consolidated claims commenced on September 21, 2021 with oral arguments ending on June 15, 2022. The Québec Superior Court issued a decision on December 14, 2022 dismissing all claims as against the Company, finding that the Company’s actions were not the direct and immediate cause of the accident and the damages suffered by the plaintiffs. All three plaintiffs filed a declaration of appeal on January 13, 2023. The appeal is set to be heard in the week of October 7, 2024. A damages trial will follow after the disposition of all appeals, if necessary. (5) Forty-eight plaintiffs (all individual claims joined in one action) sued the Company, 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 the Company, 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 the Company in November 2014 in the Maine Bankruptcy Court claiming that the Company failed to abide by certain regulations and seeking approximately U.S. $30 million in damages for MMAR’s loss in business value according to an expert report filed by the bankruptcy estate. This action asserts that the Company knew or ought to have known that the shipper misclassified the petroleum crude oil and therefore should have refused to transport it. Summary judgment motion was argued and taken under advisement on June 9, 2022, and decision is pending. On May 23, 2023, the case management judge stayed the proceedings pending the outcome of the appeal in the Canadian consolidated claims. (7) The class and mass tort action commenced against the Company 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 the Company 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 the Company negligently misclassified and improperly packaged the petroleum crude oil. On the Company’s motion, the Maine Actions were dismissed. The plaintiffs appealed the dismissal decision to the U.S. First Circuit Court of Appeals, which dismissed the plaintiffs' appeal on June 2, 2021. The plaintiffs further petitioned the U.S. First Circuit Court of Appeals for a rehearing, which was denied on September 8, 2021. On January 24, 2022, the plaintiffs further appealed to the U.S. Supreme Court on two bankruptcy procedural grounds. On May 31, 2022, the U.S. Supreme Court denied the petition, thereby rejecting the plaintiffs' appeal. (8) The trustee for the wrongful death trust commenced Carmack Amendment claims against the Company in North Dakota Federal Court, seeking to recover approximately U.S. $6 million for damaged rail cars and lost crude oil 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 has been reviewed and confirmed following motions by the parties for clarification and reconsideration. Final briefs of dispositive motions for summary judgment and for reconsideration on tariff applicability were submitted on September 30, 2022. On January 20, 2023, the Court granted in part the Company's summary judgment motion by dismissing all claims for recovery of settlement payments but leaving for trial the determination of the value of the lost crude oil. It also dismissed the Company's motion for reconsideration on tariff applicability. The remaining issues of the value of the lost crude oil and applicability of judgment reduction provisions do not require trial, and were fully briefed in 2024. On January 5, 2024, the Court issued its decision finding that the Company is liable for approximately U.S. $3.9 million plus pre-judgment interest, but declined to determine whether judgment reduction provisions were applicable, referring the parties to a court in Maine on that issue. On January 18, 2024, the Company filed a motion for reconsideration for the Court to apply the judgment reduction provisions. On January 19, 2024, the trustee for the wrongful death trust filed a Notice of Appeal for the January 5, 2024 decision, as well as prior decisions. On February 23, 2024, the Court denied the Company’s motion for reconsideration, again referring the parties to a court in Maine to apply the judgment reduction provision. On March 6, 2024, the Company filed its notice of appeal of this latest ruling, as well as prior decisions. At this stage of the proceedings, any potential responsibility and the quantum of potential losses cannot be determined. Nevertheless, the Company denies liability and is vigorously defending these proceedings. Court decision related to Remington Development Corporation legal claim On October 20, 2022, the Court of King’s Bench of Alberta issued a decision in a claim brought by Remington Development Corporation (“Remington”) against the Company and the Province of Alberta (“Alberta”) with respect to an alleged breach of contract by the Company in relation to the sale of certain properties in Calgary. In its decision, the Court found the Company had breached its contract with Remington and Alberta had induced the contract breach. The Court found the Company and Alberta liable for damages of approximately $164 million plus interest and costs, and subject to an adjustment to the acquisition value of the property. In a further decision on August 30, 2023, the Court determined that adjustment and set the total damages at $165 million plus interest and costs. On October 20, 2023, the Court determined the costs payable to Remington, however, the Court has not provided any indication of how the damages, which are currently estimated to total approximately $222 million, should be apportioned between the Company and Alberta. As a result, at this time, the Company cannot reasonably estimate the amount of damages for which it is liable under the ruling of the Court. The Company has filed an appeal of the Court’s decision, which is set to be heard on September 10, 2024. On April 11, 2024, the Court stayed the judgement pending the outcome of the appeal. 2014 Tax Assessment On April 13, 2022, the SAT delivered an audit assessment on CPKCM’s 2014 tax returns (the "2014 Assessment"). As at June 30, 2024, the assessment was Ps.6,159 million ($459 million), which included inflation, interest, and penalties. On July 7, 2022, CPKCM filed an administrative appeal with the SAT to revoke the 2014 Assessment and challenge that the SAT’s delivery of the assessment by electronic tax mailbox violated an enforceable court injunction previously granted to CPKCM. On September 26, 2022, the SAT dismissed CPKCM’s administrative appeal on grounds that it was not submitted timely. On November 10, 2022, CPKCM filed a lawsuit in the Administrative Court challenging the legality of the SAT's delivery of the assessment by electronic mailbox and also the SAT’s dismissal of CPKCM’s administrative appeal. On April 24, 2024, the Administrative Court issued a decision confirming the legality of the SAT’s delivery of the 2014 Assessment and dismissing CPKCM’s administrative appeal. On June 21, 2024, CPKCM appealed the decision by submitting an amparo petition. CPKCM expects to prevail based on the technical merits of its case. 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 the Company’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 the Company’s best estimate of all probable costs, the Company’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” in the Company's Interim Consolidated Statements of Income for the three and six months ended June 30, 2024 was $2 million and $4 million, respectively (three and six months ended June 30, 2023 - $3 million and $4 million, respectively). Provisions for environmental remediation costs are recorded in the Company's Interim Consolidated Balance Sheets in “Other long-term liabilities”, except for the current portion, which is recorded in “Accounts payable and accrued liabilities”. The total amount provided as at June 30, 2024 was $253 million (December 31, 2023 - $220 million). Payments are expected to be made over 10 years through 2033. |
Description of business and b_2
Description of business and basis of presentation (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation | These Interim Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the U.S. ("GAAP"). They do not include all of the information required for a complete set of annual financial statements prepared in accordance with GAAP and should be read in conjunction with the Company's audited consolidated financial statements as at and for the year ended December 31, 2023 ("last annual financial statements"). Selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Company's financial position and results of operations since the last annual financial statements. These Interim Consolidated Financial Statements have been prepared using the same significant accounting policies used in the last annual financial statements, except for the adoption of new standards (see Note 2). Amounts are stated in Canadian dollars unless otherwise noted. The Company's operations and income for interim periods can be affected by seasonal fluctuations such as changes in customer demand and weather conditions, and may not be indicative of annual results. |
Recently adopted accounting standards & Accounting standards not yet adopted | Recently adopted accounting standards The accounting standards that have become effective during the three and six months ended June 30, 2024 did not have a material impact on the Interim Consolidated Financial Statements. Accounting standards not yet adopted |
Revenues (Tables)
Revenues (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table presents disaggregated information about the Company’s revenues from contracts with customers by major source: For the three months ended June 30 For the six months ended June 30 (in millions of Canadian dollars) 2024 2023 2024 2023 Grain $ 665 $ 537 $ 1,395 $ 1,052 Coal 236 219 445 374 Potash 180 144 317 276 Fertilizers and sulphur 103 89 207 185 Forest products 203 187 405 290 Energy, chemicals and plastics 695 575 1,397 941 Metals, minerals and consumer products 464 440 904 673 Automotive 358 257 623 382 Intermodal 630 653 1,268 1,145 Total freight revenues 3,534 3,101 6,961 5,318 Non-freight excluding leasing revenues 43 39 106 66 Revenues from contracts with customers 3,577 3,140 7,067 5,384 Leasing revenues 26 34 56 56 Total revenues $ 3,603 $ 3,174 $ 7,123 $ 5,440 |
Earnings per share (Tables)
Earnings per share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Shares Used in the Earnings Per Share Calculations | For the three months ended June 30 For the six months ended June 30 (in millions, except per share data) 2024 2023 2024 2023 Net income attributable to controlling shareholders $ 905 $ 1,324 $ 1,680 $ 2,124 Weighted-average basic shares outstanding 932.8 931.2 932.6 930.9 Dilutive effect of stock options 1.8 2.6 1.9 2.7 Weighted-average diluted shares outstanding 934.6 933.8 934.5 933.6 Earnings per share - basic $ 0.97 $ 1.42 $ 1.80 $ 2.28 Earnings per share - diluted $ 0.97 $ 1.42 $ 1.80 $ 2.28 |
Changes in Accumulated other _2
Changes in Accumulated other comprehensive income ("AOCI") by component (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) by Component | Changes in AOCI attributable to controlling shareholders, net of tax, by component are as follows: For the three months ended June 30 (in millions of Canadian dollars) Foreign currency net of hedging activities Derivatives Pension and post- Equity accounted investments Total Opening balance, April 1, 2024 $ 1,522 $ 6 $ (1,454) $ 3 $ 77 Other comprehensive income (loss) before reclassifications 294 — — (2) 292 Amounts reclassified from AOCI — 2 8 — 10 Net other comprehensive income (loss) 294 2 8 (2) 302 Closing balance, June 30, 2024 $ 1,816 $ 8 $ (1,446) $ 1 $ 379 Opening balance, April 1, 2023 $ 1,478 $ 1 $ (1,404) $ (1) $ 74 Other comprehensive (loss) income before reclassifications (621) — (9) 3 (627) Amounts reclassified from AOCI — 1 7 1 9 Net other comprehensive (loss) income (621) 1 (2) 4 (618) Closing balance, June 30, 2023 $ 857 $ 2 $ (1,406) $ 3 $ (544) For the six months ended June 30 (in millions of Canadian dollars) Foreign currency net of hedging activities Derivatives Pension and post- Equity accounted investments Total Opening balance, January 1, 2024 $ 837 $ 5 $ (1,463) $ 3 $ (618) Other comprehensive income (loss) before reclassifications 979 — — (2) 977 Amounts reclassified from AOCI — 3 17 — 20 Net other comprehensive income (loss) 979 3 17 (2) 997 Closing balance, June 30, 2024 $ 1,816 $ 8 $ (1,446) $ 1 $ 379 Opening balance, January 1, 2023 $ 1,505 $ — $ (1,410) $ (4) $ 91 Other comprehensive (loss) income before reclassifications (648) — (9) 6 (651) Amounts reclassified from AOCI — 2 13 1 16 Net other comprehensive (loss) income (648) 2 4 7 (635) Closing balance, June 30, 2023 $ 857 $ 2 $ (1,406) $ 3 $ (544) |
Accounts receivable, net (Table
Accounts receivable, net (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Schedule of Accounts Receivable, Net | (in millions of Canadian dollars) As at June 30, 2024 As at December 31, 2023 Total accounts receivable $ 1,987 $ 1,976 Allowance for credit losses (94) (89) Total accounts receivable, net $ 1,893 $ 1,887 |
Business acquisition (Tables)
Business acquisition (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
Schedule of Allocation of Net Assets and Consideration Paid | The following table summarizes the final purchase price allocation with the amounts recognized in respect of the identifiable assets acquired and liabilities and non-controlling interest assumed on the Control Date, as well as the fair value of the previously held equity interest in KCS and the measurement period adjustments recorded: (in millions of Canadian dollars) Preliminary allocation - April 14, 2023 Measurement period adjustments Final allocation Net assets acquired: Cash and cash equivalents $ 298 $ — $ 298 Net working capital 51 (161) (110) Properties 28,748 1 28,749 Intangible assets 3,022 — 3,022 Other long-term assets 496 (6) 490 Debt including debt maturing within one year (4,545) — (4,545) Deferred income taxes (6,984) 62 (6,922) Other long-term liabilities (406) (37) (443) Total identifiable net assets $ 20,680 $ (141) $ 20,539 Goodwill 17,491 141 17,632 $ 38,171 $ — $ 38,171 Consideration: Fair value of previously held equity method investment $ 37,227 $ — $ 37,227 Intercompany payable balance, net acquired 12 — 12 Fair value of non-controlling interest 932 — 932 Total $ 38,171 $ — $ 38,171 |
Schedule of Pro Forma Information | On a pro forma basis, if the Company had consolidated KCS beginning on January 1, 2022, the revenue and net income attributable to controlling shareholders of the combined entity would be as follows for the three and six months ended June 30, 2023: Three Months Ended Six Months Ended (in millions of Canadian dollars) KCS Historical (1) Pro Forma CPKC KCS Historical (1) Pro Forma CPKC Revenue $ 164 $ 3,338 $ 1,351 $ 6,794 Net income attributable to controlling shareholders 34 615 280 1,371 (1) KCS's historical amounts were translated into Canadian dollars at the Bank of Canada daily exchange rate for the period from April 1 to April 13, 2023 and January 1 to April 13, 2023 with effective exchange rates of $1.35 and $1.35, respectively. |
Investment in KCS (Tables)
Investment in KCS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summarized Financial Information | The following table presents summarized financial information for KCS, on its historical cost basis: Consolidated Statements of Income (in millions of Canadian dollars) (1) For the period April 1 to April 13, 2023 For the period January 1 to April 13, 2023 Total revenues $ 164 $ 1,351 Total operating expenses 109 888 Operating income 55 463 Less: Other (2) 9 83 Income before income taxes 46 380 Net income $ 34 $ 280 (1) Amounts translated at the average foreign exchange ("FX") rate for the period April 1 to April 13, 2023 and the period January 1 to April 13, 2023 of $1.00 USD = $1.35 CAD. (2) Includes Equity in net earnings of KCS's affiliates, Interest expense, FX loss, and Other income, net. |
Pension and other benefits (Tab
Pension and other benefits (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
Net Periodic Benefit Cost for Defined Benefit Pension Plans and Other Benefits | Net periodic benefit (recovery) cost for defined benefit pension plans and other benefits included the following components: For the three months ended June 30 Pensions Other benefits Total (in millions of Canadian dollars) 2024 2023 2024 2023 2024 2023 Current service cost $ 21 $ 17 $ 3 $ 3 $ 24 $ 20 Other components of net periodic benefit (recovery) cost: Interest cost on benefit obligation 117 122 6 6 123 128 Expected return on plan assets (222) (221) — — (222) (221) Recognized net actuarial loss 10 8 — — 10 8 Amortization of prior service costs 1 1 — 1 1 2 Total other components of net periodic benefit (recovery) cost (94) (90) 6 7 (88) (83) Net periodic benefit (recovery) cost $ (73) $ (73) $ 9 $ 10 $ (64) $ (63) For the six months ended June 30 Pensions Other benefits Total (in millions of Canadian dollars) 2024 2023 2024 2023 2024 2023 Current service cost $ 42 $ 35 $ 6 $ 5 $ 48 $ 40 Other components of net periodic benefit (recovery) cost: Interest cost on benefit obligation 234 243 12 11 246 254 Expected return on plan assets (445) (441) — — (445) (441) Recognized net actuarial loss 20 16 — — 20 16 Amortization of prior service costs 3 1 — 1 3 2 Total other components of net periodic benefit (recovery) cost (188) (181) 12 12 (176) (169) Net periodic benefit (recovery) cost $ (146) $ (146) $ 18 $ 17 $ (128) $ (129) |
Stock-based compensation (Table
Stock-based compensation (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Weighted-Average Fair Value Assumptions | The weighted-average fair value assumptions were approximately: For the six months ended June 30, 2024 Expected option life (years) (1) 4.75 Risk-free interest rate (2) 3.88% Expected share price volatility (3) 28.38% Expected annual dividends per share (4) $0.76 Expected forfeiture rate (5) 3.12% Weighted-average grant date fair value per option granted during the period $33.27 (1) Represents the period of time that awards are expected to be outstanding. Historical data on exercise behaviour or, when available, specific expectations regarding future exercise behaviour were used to estimate the expected life of the option. (2) Based on the implied yield available on zero-coupon government issues with an equivalent term commensurate with the expected term of the option. (3) Based on the historical volatility of the Company’s stock price over a period commensurate with the expected term of the option. (4) Determined by the current annual dividend at the time of grant. The Company does not employ different dividend yields throughout the contractual term of the option. (5) The Company estimates forfeitures based on past experience. This rate is monitored on a periodic basis. |
Description of business and b_3
Description of business and basis of presentation (Details) - mi mi in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Apr. 13, 2023 | |
Description of Business [Line Items] | ||
Miles of transportation network | 20 | |
KCS | ||
Description of Business [Line Items] | ||
Ownership percentage, equity method investment | 100% |
Revenues (Details)
Revenues (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ 3,577 | $ 3,140 | $ 7,067 | $ 5,384 |
Leasing revenues | 26 | 34 | 56 | 56 |
Total revenues | 3,603 | 3,174 | 7,123 | 5,440 |
Freight | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 3,534 | 3,101 | 6,961 | 5,318 |
Total revenues | 3,534 | 3,101 | 6,961 | 5,318 |
Grain | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 665 | 537 | 1,395 | 1,052 |
Coal | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 236 | 219 | 445 | 374 |
Potash | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 180 | 144 | 317 | 276 |
Fertilizers and sulphur | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 103 | 89 | 207 | 185 |
Forest products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 203 | 187 | 405 | 290 |
Energy, chemicals and plastics | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 695 | 575 | 1,397 | 941 |
Metals, minerals and consumer products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 464 | 440 | 904 | 673 |
Automotive | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 358 | 257 | 623 | 382 |
Intermodal | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 630 | 653 | 1,268 | 1,145 |
Non-freight excluding leasing revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ 43 | $ 39 | $ 106 | $ 66 |
Income taxes (Details)
Income taxes (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Apr. 13, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Apr. 13, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Business Acquisition [Line Items] | ||||||
Deferred tax recovery | $ 3 | $ 3 | ||||
Effective tax rate | 24.40% | 120.88% | 24.72% | 139.47% | ||
Effective tax rate, excluding discrete items | 25% | 25.18% | 25% | 24.88% | ||
Deferred tax expense (recovery) | $ 18 | $ (7,953) | $ 35 | $ (7,928) | ||
Remeasurement loss of Kansas City Southern | 0 | 7,175 | 0 | 7,175 | ||
Re-evaluation of deferred income tax | 51 | 51 | ||||
Equity earnings of Kansas City Southern | $ 26 | 0 | 26 | $ (230) | 0 | 230 |
Outside basis deferred tax recovery | 23 | |||||
Mexican Tax Authority | ||||||
Business Acquisition [Line Items] | ||||||
Other tax expense | 10 | |||||
KCS | ||||||
Business Acquisition [Line Items] | ||||||
Amortization of fair value adjustments | 88 | 75 | 174 | 75 | ||
Acquisition-related costs | $ 28 | 119 | $ 54 | 134 | ||
Deferred tax expense (recovery) | (7,832) | (7,832) | ||||
Remeasurement loss of Kansas City Southern | $ 7,175 | $ 7,175 |
Earnings per share - Schedule o
Earnings per share - Schedule of Shares Used in the Earnings Per Share Calculations (Details) - CAD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to controlling shareholders | $ 905 | $ 1,324 | $ 1,680 | $ 2,124 |
Weighted-average basic shares outstanding (in shares) | 932.8 | 931.2 | 932.6 | 930.9 |
Dilutive effect of stock options (in shares) | 1.8 | 2.6 | 1.9 | 2.7 |
Weighted-average diluted shares outstanding (in shares) | 934.6 | 933.8 | 934.5 | 933.6 |
Earnings per share - basic (in dollars per share) | $ 0.97 | $ 1.42 | $ 1.80 | $ 2.28 |
Earnings per share - diluted (in dollars per share) | $ 0.97 | $ 1.42 | $ 1.80 | $ 2.28 |
Earnings per share - Narrative
Earnings per share - Narrative (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
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 (in shares) | 0.7 | 0.5 | 0.5 | 0.2 |
Changes in Accumulated other _3
Changes in Accumulated other comprehensive income ("AOCI") by component (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 43,761 | $ 39,520 | $ 42,411 | $ 38,886 |
Net other comprehensive income (loss) | 313 | (626) | 1,031 | (643) |
Ending balance | 44,823 | 41,004 | 44,823 | 41,004 |
Foreign currency net of hedging activities | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | 1,522 | 1,478 | 837 | 1,505 |
Other comprehensive income (loss) before reclassifications | 294 | (621) | 979 | (648) |
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 |
Net other comprehensive income (loss) | 294 | (621) | 979 | (648) |
Ending balance | 1,816 | 857 | 1,816 | 857 |
Derivatives | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | 6 | 1 | 5 | 0 |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 |
Amounts reclassified from AOCI | 2 | 1 | 3 | 2 |
Net other comprehensive income (loss) | 2 | 1 | 3 | 2 |
Ending balance | 8 | 2 | 8 | 2 |
Pension and post-
retirement defined
benefit plans | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (1,454) | (1,404) | (1,463) | (1,410) |
Other comprehensive income (loss) before reclassifications | 0 | (9) | 0 | (9) |
Amounts reclassified from AOCI | 8 | 7 | 17 | 13 |
Net other comprehensive income (loss) | 8 | (2) | 17 | 4 |
Ending balance | (1,446) | (1,406) | (1,446) | (1,406) |
Equity accounted investments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | 3 | (1) | 3 | (4) |
Other comprehensive income (loss) before reclassifications | (2) | 3 | (2) | 6 |
Amounts reclassified from AOCI | 0 | 1 | 0 | 1 |
Net other comprehensive income (loss) | (2) | 4 | (2) | 7 |
Ending balance | 1 | 3 | 1 | 3 |
Accumulated other comprehensive Income (loss) | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | 77 | 74 | (618) | 91 |
Other comprehensive income (loss) before reclassifications | 292 | (627) | 977 | (651) |
Amounts reclassified from AOCI | 10 | 9 | 20 | 16 |
Net other comprehensive income (loss) | 302 | (618) | 997 | (635) |
Ending balance | $ 379 | $ (544) | $ 379 | $ (544) |
Accounts receivable, net (Detai
Accounts receivable, net (Details) - CAD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | ||
Total accounts receivable | $ 1,987 | $ 1,976 |
Allowance for credit losses | (94) | (89) |
Total accounts receivable, net | $ 1,893 | $ 1,887 |
Business acquisition - Narrativ
Business acquisition - Narrative (Details) | 3 Months Ended | 6 Months Ended | ||||||||||
Apr. 13, 2024 CAD ($) renewal_period | Apr. 14, 2023 CAD ($) | Apr. 13, 2023 CAD ($) | Apr. 13, 2023 CAD ($) | Jun. 30, 2024 CAD ($) | Mar. 31, 2024 CAD ($) | Jun. 30, 2023 CAD ($) | Apr. 13, 2023 CAD ($) | Jun. 30, 2024 CAD ($) | Jun. 30, 2023 CAD ($) | Dec. 31, 2023 CAD ($) | Dec. 14, 2021 | |
Business Acquisition [Line Items] | ||||||||||||
Investment in Kansas City Southern | $ 44,402,000,000 | $ 44,402,000,000 | $ 44,402,000,000 | |||||||||
Remeasurement loss of Kansas City Southern | $ 0 | $ 7,175,000,000 | $ 0 | $ 7,175,000,000 | ||||||||
Deferred income tax recovery | (18,000,000) | 7,953,000,000 | (35,000,000) | 7,928,000,000 | ||||||||
Goodwill | 18,411,000,000 | 18,411,000,000 | $ 17,729,000,000 | |||||||||
Equity earnings of Kansas City Southern | $ 26,000,000 | 0 | 26,000,000 | $ (230,000,000) | 0 | 230,000,000 | ||||||
KCS | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Percentage of voting interest acquired | 100% | |||||||||||
Fair value of previously held equity method investment | $ 37,227,000,000 | $ 37,227,000,000 | $ 37,227,000,000 | |||||||||
Remeasurement loss of Kansas City Southern | 7,175,000,000 | 7,175,000,000 | ||||||||||
Deferred income tax recovery | 7,832,000,000 | 7,832,000,000 | ||||||||||
Accounts receivables, net | 697,000,000 | |||||||||||
Accounts payable and accrued liabilities | 1,014,000,000 | |||||||||||
Intangible assets | 3,022,000,000 | 3,022,000,000 | ||||||||||
Net working capital | (110,000,000) | 51,000,000 | ||||||||||
Goodwill | 17,632,000,000 | $ 17,491,000,000 | ||||||||||
Goodwill, expected tax deductible amount | 0 | |||||||||||
Acquisition-related costs | 28,000,000 | 119,000,000 | 54,000,000 | 134,000,000 | ||||||||
KCS historical, net income (loss) attributable to controlling shareholders | (86,000,000) | (81,000,000) | (170,000,000) | (123,000,000) | ||||||||
KCS earnings (loss), after deferred tax recovery | (62,000,000) | (61,000,000) | (123,000,000) | (103,000,000) | ||||||||
KCS deferred tax recovery | 24,000,000 | 20,000,000 | 47,000,000 | 20,000,000 | ||||||||
KCS | Environmental Liabilities | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Liabilities arising from contingencies acquired | 160,000,000 | |||||||||||
Net working capital | 15,000,000 | |||||||||||
KCS | Litigation and Personal Injury Claims | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Liabilities arising from contingencies acquired | 40,000,000 | |||||||||||
Net working capital | 44,000,000 | |||||||||||
KCS | Income (loss) from equity method investments | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Equity earnings of Kansas City Southern | 26,000,000 | 230,000,000 | ||||||||||
KCS | Concession Rights | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Renewal term of concession rights and related assets | 50 years | |||||||||||
Intangible assets | $ 9,176,000,000 | |||||||||||
Amortization periods of intangible assets acquired | 74 years | |||||||||||
Number of renewal periods | renewal_period | 1 | |||||||||||
KCS | Contracts and Customer Relationships | Minimum | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Amortization periods of intangible assets acquired | 9 years | |||||||||||
KCS | Contracts and Customer Relationships | Maximum | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Amortization periods of intangible assets acquired | 22 years | |||||||||||
Income (loss) from equity method investments | KCS | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquisition-related costs | 1,000,000 | 11,000,000 | ||||||||||
KCS historical, net income (loss) attributable to controlling shareholders | 6,000,000 | 48,000,000 | ||||||||||
Compensation and benefits | KCS | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Other tax expense | $ 10,000,000 | |||||||||||
Acquisition-related costs | 2,000,000 | 63,000,000 | 6,000,000 | 63,000,000 | ||||||||
Materials | KCS | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquisition-related costs | 2,000,000 | 4,000,000 | ||||||||||
Purchased services and other | KCS | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquisition-related costs | 24,000,000 | 53,000,000 | 44,000,000 | 65,000,000 | ||||||||
Other expense (income) | KCS | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquisition-related costs | 3,000,000 | 6,000,000 | ||||||||||
KCS historical, net income (loss) attributable to controlling shareholders | 0 | (1,000,000) | (1,000,000) | (1,000,000) | ||||||||
Depreciation and amortization | KCS | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
KCS historical, net income (loss) attributable to controlling shareholders | (82,000,000) | (68,000,000) | (161,000,000) | (68,000,000) | ||||||||
Purchased services and other | KCS | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
KCS historical, net income (loss) attributable to controlling shareholders | (1,000,000) | (2,000,000) | ||||||||||
Net interest expense | KCS | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
KCS historical, net income (loss) attributable to controlling shareholders | (5,000,000) | $ (6,000,000) | (10,000,000) | $ (6,000,000) | ||||||||
Net loss attributable to non-controlling interest | KCS | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
KCS historical, net income (loss) attributable to controlling shareholders | $ 2,000,000 | $ 4,000,000 |
Business acquisition - Schedule
Business acquisition - Schedule of Allocation of Net Assets and Consideration Paid (Details) - CAD ($) $ in Millions | 12 Months Ended | |||||
Apr. 13, 2024 | Apr. 14, 2023 | Apr. 13, 2023 | Apr. 13, 2024 | Jun. 30, 2024 | Dec. 31, 2023 | |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 18,411 | $ 17,729 | ||||
KCS | ||||||
Business Acquisition [Line Items] | ||||||
Cash and cash equivalents | $ 298 | $ 298 | $ 298 | |||
Net working capital | (110) | 51 | (110) | |||
Properties | 28,749 | 28,748 | 28,749 | |||
Intangible assets | 3,022 | 3,022 | 3,022 | |||
Other long-term assets | 490 | 496 | 490 | |||
Debt including debt maturing within one year | (4,545) | (4,545) | (4,545) | |||
Deferred income taxes | (6,922) | (6,984) | (6,922) | |||
Other long-term liabilities | (443) | (406) | (443) | |||
Total identifiable net assets | 20,539 | 20,680 | 20,539 | |||
Goodwill | 17,632 | 17,491 | 17,632 | |||
Total identifiable net assets and goodwill | 38,171 | 38,171 | 38,171 | |||
Fair value of previously held equity method investment | 37,227 | 37,227 | $ 37,227 | |||
Intercompany payable balance, net acquired | 12 | 12 | 12 | |||
Fair value of non-controlling interest | 932 | 932 | 932 | |||
Total | $ 38,171 | $ 38,171 | ||||
Measurement period adjustments | ||||||
Cash and cash equivalents | 0 | |||||
Net working capital | (161) | |||||
Properties | 1 | |||||
Intangible assets | 0 | |||||
Other long-term assets | (6) | |||||
Debt including debt maturing within one year | 0 | |||||
Deferred income taxes | 62 | |||||
Other long-term liabilities | (37) | |||||
Total identifiable net assets | (141) | |||||
Goodwill | 141 | |||||
Total net identifiable net assets and goodwill | 0 | |||||
Fair value of previously held equity method investment | 0 | |||||
Intercompany payable balance, net acquired | 0 | |||||
Fair value of non-controlling interest | 0 | |||||
Total | $ 0 |
Business acquisition - Pro Form
Business acquisition - Pro Forma Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Apr. 13, 2023 | Jun. 30, 2023 CAD ($) | Apr. 13, 2023 | Jun. 30, 2023 CAD ($) | |
Business Acquisition [Line Items] | ||||
Pro forma CPKC, revenue | $ 3,338 | $ 6,794 | ||
Pro forma, net income attributable to controlling shareholders | 615 | 1,371 | ||
Daily exchange rate used, revenue | 1.35 | 1.35 | ||
KCS | ||||
Business Acquisition [Line Items] | ||||
KCS historical, revenue | 164 | 1,351 | ||
KCS historical, net income attributable to controlling shareholders | $ 34 | $ 280 |
Investment in KCS - Narrative (
Investment in KCS - Narrative (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Apr. 13, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Apr. 13, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Schedule of Equity Method Investments [Line Items] | ||||||
Equity earnings of Kansas City Southern | $ 26 | $ 0 | $ 26 | $ (230) | $ 0 | $ 230 |
Dividend from Kansas City Southern | $ 0 | $ 0 | $ 0 | $ 300 | ||
KCS | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Dividend from Kansas City Southern | 0 | 300 | ||||
Amortization of basis difference | $ 6 | $ 48 |
Investment in KCS - Summarized
Investment in KCS - Summarized Financial Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Apr. 13, 2023 CAD ($) | Jun. 30, 2024 CAD ($) | Jun. 30, 2023 CAD ($) | Apr. 13, 2023 CAD ($) | Jun. 30, 2024 CAD ($) | Jun. 30, 2023 CAD ($) | |
Schedule of Equity Method Investments [Line Items] | ||||||
Total revenues | $ 3,603 | $ 3,174 | $ 7,123 | $ 5,440 | ||
Total operating expenses | 2,336 | 2,230 | 4,707 | 3,667 | ||
Operating income | 1,267 | 944 | 2,416 | 1,773 | ||
Income before income taxes | 1,195 | (6,347) | 2,228 | (5,384) | ||
Net income | $ 905 | $ 1,324 | $ 1,680 | $ 2,124 | ||
Daily exchange rate used, revenue | 1.35 | 1.35 | ||||
KCS | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Total revenues | $ 164 | $ 1,351 | ||||
Total operating expenses | 109 | 888 | ||||
Operating income | 55 | 463 | ||||
Less : other | 9 | 83 | ||||
Income before income taxes | 46 | 380 | ||||
Net income | $ 34 | $ 280 |
Debt (Details)
Debt (Details) $ in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
Jun. 25, 2024 USD ($) | Jul. 30, 2024 USD ($) | Jul. 30, 2024 CAD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2024 CAD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2024 CAD ($) | Jun. 30, 2024 CAD ($) | Dec. 31, 2023 USD ($) | |
Debt Instrument [Line Items] | |||||||||
Early repayment of senior notes | $ 110 | $ 151 | $ 110 | $ 151 | |||||
Gain on extinguishment of senior notes | $ 16 | 16 | |||||||
Commercial paper borrowings | $ 800 | ||||||||
Senior Notes | Subsequent Event | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayment of note | $ 26 | $ 35 | |||||||
5.41% Senior Secured Notes | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayment of note | $ 48 | $ 66 | |||||||
Interest rate | 5.41% | 5.41% | 5.41% | ||||||
Five-year Amended and Restated Revolving Credit Facility | Line of Credit | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Note term | 5 years | ||||||||
Maximum borrowing capacity (up to) | $ 1,100 | ||||||||
Two-year Amended and Restated Revolving Credit Facility | Line of Credit | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Note term | 2 years | ||||||||
Maximum borrowing capacity (up to) | $ 1,100 | ||||||||
Commercial Paper | Unsecured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity (up to) | $ 1,500 | $ 1,500 | |||||||
Commercial paper borrowings | $ 536 | $ 536 | $ 734 | ||||||
Weighted average interest rate | 5.53% | 5.53% | 5.53% | 5.59% | |||||
Second Amended and Restated Credit Agreement | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity (up to) | $ 2,200 | $ 2,200 |
Financial instruments (Details)
Financial instruments (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jan. 12, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Schedule of Investments [Line Items] | ||||||
Debt and finance lease liabilities, carrying value | $ 21,890 | $ 21,890 | $ 21,437 | |||
Debt and finance lease liabilities, fair value | 20,314 | 20,314 | 20,550 | |||
Payments for settlement of foreign currency forward contracts | 0 | $ 0 | 65 | $ 0 | ||
Foreign Exchange Contract | ||||||
Schedule of Investments [Line Items] | ||||||
Loss on derivative | 4 | |||||
Foreign currency contracts, fair value | $ 60 | |||||
Payments for settlement of foreign currency forward contracts | $ 65 | |||||
Net Investment Hedge | ||||||
Schedule of Investments [Line Items] | ||||||
Unrealized loss on net investment hedge | $ 41 | $ 163 | $ 144 | $ 162 |
Pension and other benefits - Na
Pension and other benefits - Narrative (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pensions | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contributions made by the Company | $ 2 | $ 5 | $ 5 | $ 9 |
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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Defined Benefit Plan and Other Postretirement Benefit Plans | ||||
Current service cost | $ 24 | $ 20 | $ 48 | $ 40 |
Other components of net periodic benefit (recovery) cost: | ||||
Interest cost on benefit obligation | 123 | 128 | 246 | 254 |
Expected return on plan assets | (222) | (221) | (445) | (441) |
Recognized net actuarial loss | 10 | 8 | 20 | 16 |
Amortization of prior service costs | 1 | 2 | 3 | 2 |
Total other components of net periodic benefit (recovery) cost | (88) | (83) | (176) | (169) |
Net periodic benefit (recovery) cost | (64) | (63) | (128) | (129) |
Pensions | ||||
Defined Benefit Plan and Other Postretirement Benefit Plans | ||||
Current service cost | 21 | 17 | 42 | 35 |
Other components of net periodic benefit (recovery) cost: | ||||
Interest cost on benefit obligation | 117 | 122 | 234 | 243 |
Expected return on plan assets | (222) | (221) | (445) | (441) |
Recognized net actuarial loss | 10 | 8 | 20 | 16 |
Amortization of prior service costs | 1 | 1 | 3 | 1 |
Total other components of net periodic benefit (recovery) cost | (94) | (90) | (188) | (181) |
Net periodic benefit (recovery) cost | (73) | (73) | (146) | (146) |
Other benefits | ||||
Defined Benefit Plan and Other Postretirement Benefit Plans | ||||
Current service cost | 3 | 3 | 6 | 5 |
Other components of net periodic benefit (recovery) cost: | ||||
Interest cost on benefit obligation | 6 | 6 | 12 | 11 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Recognized net actuarial loss | 0 | 0 | 0 | 0 |
Amortization of prior service costs | 0 | 1 | 0 | 1 |
Total other components of net periodic benefit (recovery) cost | 6 | 7 | 12 | 12 |
Net periodic benefit (recovery) cost | $ 9 | $ 10 | $ 18 | $ 17 |
Stock-based compensation - Narr
Stock-based compensation - Narrative (Details) - CAD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation expense | $ 9 | $ 39 | $ 68 | $ 71 | |||
Stock Options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of options issued (in shares) | 817,609 | ||||||
Options issued, weighted average price per share (In cad per share) | $ 113.77 | ||||||
Expiration period (in years) | 7 years | ||||||
Stock options grant date fair value | $ 27 | ||||||
Stock Options | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period (in years) | 12 months | ||||||
Stock Options | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period (in years) | 48 months | ||||||
Performance Share Units (PSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Units issued (in shares) | 568,159 | 431,430 | |||||
Grant date fair value | $ 65 | ||||||
PSU payout percentage | 135% | ||||||
Number of trading days | 30 days | ||||||
Units paid in period (in shares) | 399,372 | ||||||
Performance Share Units (PSUs) | Share-based Payment Arrangement, Tranche One | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Cash payout | $ 54 | ||||||
Performance Share Units (PSUs) | Performance Period One | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Units issued (in shares) | 568,159 | ||||||
Performance Deferred Share Units (PDSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Units issued (in shares) | 25,589 | 12,694 | |||||
Grant date fair value | $ 3 | ||||||
Number of units that can be granted as percentage of shares acquired | 25% | 25% | |||||
Units paid in period (in shares) | 11,372 | ||||||
Payout in future periods | $ 2 | ||||||
PSUs and PDSUs | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period (in years) | 3 years | ||||||
PSUs and PDSUs | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period (in years) | 4 years |
Stock-based compensation - Weig
Stock-based compensation - Weighted-Average Fair Value Assumptions (Details) - Stock Options | 6 Months Ended |
Jun. 30, 2024 $ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected option life (years) | 4 years 9 months |
Risk-free interest rate | 3.88% |
Expected share price volatility | 28.38% |
Expected annual dividends per share (in cad per share) | $ 0.76 |
Expected forfeiture rate | 3.12% |
Weighted-average grant date fair value per option granted during the period (in cad per share) | $ 33.27 |
Contingencies - Legal Proceedin
Contingencies - Legal Proceedings (Details) $ in Millions, $ in Millions | 6 Months Ended | ||||
Jan. 05, 2024 USD ($) | Aug. 30, 2023 CAD ($) | Oct. 20, 2022 CAD ($) | Jun. 30, 2024 CAD ($) claim appeal plaintiff | Jun. 30, 2024 USD ($) claim appeal plaintiff | |
Other Commitments [Line Items] | |||||
Number of appeals from bankruptcy procedural grounds | appeal | 2 | 2 | |||
Damaged rail cars and lost crude recovery | |||||
Other Commitments [Line Items] | |||||
Damages awarded | $ 3.9 | ||||
Lac-Megantic Rail Accident | Claimed derailment damages | |||||
Other Commitments [Line Items] | |||||
Amount of fund to be distributed | $ 440 | ||||
Lac-Megantic Rail Accident | Quebec Minister of Sustainable Development, Environment, Wildlife and Parks | |||||
Other Commitments [Line Items] | |||||
Value of damages sought | 95 | ||||
Lac-Megantic Rail Accident | Attorney General of Quebec | |||||
Other Commitments [Line Items] | |||||
Value of damages sought | 315 | ||||
Initial value of damages sought | 409 | ||||
Lac-Megantic Rail Accident | 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 | |||
Lac-Megantic Rail Accident | Additional Subrogated Insurers | Subrogated insurance claim | |||||
Other Commitments [Line Items] | |||||
Value of damages sought | $ 3 | ||||
Number of subrogated insurer claims | claim | 2 | 2 | |||
Lac-Megantic Rail Accident | Class Action Plaintiffs | |||||
Other Commitments [Line Items] | |||||
Value of damages sought | $ 5 | ||||
Number of plaintiffs | plaintiff | 48 | 48 | |||
Lac-Megantic Rail Accident | MMAR Estate Representative | Damages for loss in business value | |||||
Other Commitments [Line Items] | |||||
Value of damages sought | $ 30 | ||||
Lac-Megantic Rail Accident | WD Trustee | Damaged rail cars and lost crude recovery | |||||
Other Commitments [Line Items] | |||||
Value of damages sought | 6 | ||||
Lac-Megantic Rail Accident | WD Trustee | Reimbursement for settlement paid by consignor | |||||
Other Commitments [Line Items] | |||||
Value of damages sought | 110 | ||||
Lac-Megantic Rail Accident | WD Trustee | Reimbursement for settlement paid by consignee | |||||
Other Commitments [Line Items] | |||||
Value of damages sought | $ 60 | ||||
AGQ Action and Promutuel Action | Class Action Plaintiffs | |||||
Other Commitments [Line Items] | |||||
Number of plaintiffs | plaintiff | 3 | 3 | |||
Remington Development Corporation legal claim | Remington Development Corporation | Breach of contract | |||||
Other Commitments [Line Items] | |||||
Damages awarded | $ 165 | $ 164 | |||
Total estimated damage | $ 222 |
Contingencies - Tax Assessment
Contingencies - Tax Assessment (Details) - 6 months ended Jun. 30, 2024 $ in Millions, $ in Millions | MXN ($) | CAD ($) |
Foreign Tax Authority | Mexican Tax Authority | Tax Year 2014 | ||
Loss Contingencies [Line Items] | ||
Tax assessment amount | $ 6,159 | $ 459 |
Contingencies - Environmental L
Contingencies - Environmental Liabilities (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |||||
Environmental remediation expense | $ 2 | $ 3 | $ 4 | $ 4 | |
Accrued environmental loss contingencies, noncurrent | $ 253 | $ 253 | $ 220 | ||
Term for expected payments to be made | 10 years |