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Condensed Consolidating Financial Information (Tables)

6 Months Ended

Jun. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Interim Condensed Consolidating Statements of Income

For the three months ended June 30, 2016



(in millions of Canadian dollars)	CPRL (Parent Guarantor)			CPRC (Subsidiary Issuer)			Non-Guarantor Subsidiaries			Consolidating Adjustments and Eliminations			CPRL Consolidated
Revenues
Freight	$	—		$	1,007		$	399		$	—		$	1,406
Non-freight	—			33			98			(87		)	44
Total revenues	—			1,040			497			(87		)	1,450
Operating expenses
Compensation and benefits	—			181			102			1			284
Fuel	—			103			28			—			131
Materials	—			27			8			3			38
Equipment rents	—			53			(9		)	—			44
Depreciation and amortization	—			107			54			—			161
Purchased services and other	—			193			139			(91		)	241
Total operating expenses	—			664			322			(87		)	899
Operating income	—			376			175			—			551
Less:
Other income and charges	(4		)	(12		)	7			—			(9		)
Net interest expense (income)	10			111			(6		)	—			115
(Loss) income before income tax expense and equity in net earnings of subsidiaries	(6		)	277			174			—			445
Less: Income tax (recovery) expense	(6		)	70			53			—			117
Add: Equity in net earnings of subsidiaries	328			121			—			(449		)	—
Net income	$	328		$	328		$	121		$	(449	)	$	328

Interim Condensed Consolidating Statements of Income

For the three months ended June 30, 2015



(in millions of Canadian dollars)	CPRL (Parent Guarantor)			CPRC (Subsidiary Issuer)			Non-Guarantor Subsidiaries			Consolidating Adjustments and Eliminations			CPRL Consolidated
Revenues
Freight	$	—		$	1,131		$	479		$	—		$	1,610
Non-freight	—			34			90			(83		)	41
Total revenues	—			1,165			569			(83		)	1,651
Operating expenses
Compensation and benefits	—			198			110			—			308
Fuel	—			134			51			—			185
Materials	—			35			10			—			45
Equipment rents	—			52			(6		)	—			46
Depreciation and amortization	—			102			43			—			145
Purchased services and other	—			192			167			(83		)	276
Total operating expenses	—			713			375			(83		)	1,005
Operating income	—			452			194			—			646
Less:
Other income and charges	(3		)	(8		)	6			—			(5		)
Net interest expense (income)	—			98			(14		)	—			84
Income before income tax expense and equity in net earnings of subsidiaries	3			362			202			—			567
Less: Income tax expense	2			93			82			—			177
Add: Equity in net earnings of subsidiaries	389			120			—			(509		)	—
Net income	$	390		$	389		$	120		$	(509	)	$	390

Interim Condensed Consolidating Statements of Income

For the six months ended June 30, 2016



(in millions of Canadian dollars)	CPRL (Parent Guarantor)			CPRC (Subsidiary Issuer)			Non-Guarantor Subsidiaries			Consolidating Adjustments and Eliminations			CPRL Consolidated
Revenues
Freight	$	—		$	2,104		$	850		$	—		$	2,954
Non-freight	—			66			194			(173		)	87
Total revenues	—			2,170			1,044			(173		)	3,041
Operating expenses
Compensation and benefits	—			382			228			3			613
Fuel	—			206			50			—			256
Materials	—			65			18			11			94
Equipment rents	—			107			(18		)	—			89
Depreciation and amortization	—			214			109			—			323
Purchased services and other	—			329			320			(187		)	462
Total operating expenses	—			1,303			707			(173		)	1,837
Operating income	—			867			337			—			1,204
Less:
Other income and charges	(73		)	(150		)	33			—			(190		)
Net interest expense (income)	9			242			(12		)	—			239
Income before income tax expense and equity in net earnings of subsidiaries	64			775			316			—			1,155
Less: Income tax expense	3			181			103			—			287
Add: Equity in net earnings of subsidiaries	807			213			—			(1,020		)	—
Net income	$	868		$	807		$	213		$	(1,020	)	$	868

Interim Condensed Consolidating Statements of Income

For the six months ended June 30, 2015



(in millions of Canadian dollars)	CPRL (Parent Guarantor)			CPRC (Subsidiary Issuer)		Non-Guarantor Subsidiaries			Consolidating Adjustments and Eliminations			CPRL Consolidated
Revenues
Freight	$	—		$	2,250	$	990		$	—		$	3,240
Non-freight	—			63		179			(166		)	76
Total revenues	—			2,313		1,169			(166		)	3,316
Operating expenses
Compensation and benefits	—			460		226			—			686
Fuel	—			295		85			—			380
Materials	—			78		19			—			97
Equipment rents	—			88		—			—			88
Depreciation and amortization	—			204		87			—			291
Purchased services and other	—			334		348			(166		)	516
Total operating expenses	—			1,459		765			(166		)	2,058
Operating income	—			854		404			—			1,258
Less:
Other income and charges	15			78		(25		)	—			68
Net interest expense (income)	—			194		(25		)	—			169
(Loss) income before income tax expense and equity in net earnings of subsidiaries	(15		)	582		454			—			1,021
Less: Income tax (recovery) expense	(2		)	160		153			—			311
Add: Equity in net earnings of subsidiaries	723			301		—			(1,024		)	—
Net income	$	710		$	723	$	301		$	(1,024	)	$	710

Interim Condensed Consolidating Statements of Comprehensive Income

For the three months ended June 30, 2016



(in millions of Canadian dollars)	CPRL (Parent Guarantor)		CPRC (Subsidiary Issuer)			Non-Guarantor Subsidiaries			Consolidating Adjustments and Eliminations			CPRL Consolidated
Net income	$	328	$	328		$	121		$	(449	)	$	328
Net gain (loss) in foreign currency translation adjustments, net of hedging activities	—		20			(17		)	—			3
Change in derivatives designated as cash flow hedges	—		(29		)	—			—			(29		)
Change in pension and post-retirement defined benefit plans	—		41			2			—			43
Other comprehensive income (loss) before income taxes	—		32			(15		)	—			17
Income tax expense on above items	—		(5		)	(2		)	—			(7		)
Equity accounted investments	10		(17		)	—			7			—
Other comprehensive income (loss)	10		10			(17		)	7			10
Comprehensive income	$	338	$	338		$	104		$	(442	)	$	338

Interim Condensed Consolidating Statements of Comprehensive Income

For the three months ended June 30, 2015



(in millions of Canadian dollars)	CPRL (Parent Guarantor)		CPRC (Subsidiary Issuer)			Non-Guarantor Subsidiaries			Consolidating Adjustments and Eliminations			CPRL Consolidated
Net income	$	390	$	389		$	120		$	(509	)	$	390
Net gain (loss) in foreign currency translation adjustments, net of hedging activities	—		59			(52		)	—			7
Change in derivatives designated as cash flow hedges	—		36			—			—			36
Change in pension and post-retirement defined benefit plans	—		64			2			—			66
Other comprehensive income (loss) before income taxes	—		159			(50		)	—			109
Income tax (expense) recovery on above items	—		(55		)	20			—			(35		)
Equity accounted investments	74		(30		)	—			(44		)	—
Other comprehensive income (loss)	74		74			(30		)	(44		)	74
Comprehensive income	$	464	$	463		$	90		$	(553	)	$	464

Interim Condensed Consolidating Statements of Comprehensive Income

For the six months ended June 30, 2016



(in millions of Canadian dollars)	CPRL (Parent Guarantor)		CPRC (Subsidiary Issuer)			Non-Guarantor Subsidiaries			Consolidating Adjustments and Eliminations			CPRL Consolidated
Net income	$	868	$	807		$	213		$	(1,020	)	$	868
Net gain (loss) in foreign currency translation adjustments, net of hedging activities	—		330			(290		)	—			40
Change in derivatives designated as cash flow hedges	—		(76		)	—			—			(76		)
Change in pension and post-retirement defined benefit plans	—		86			4			—			90
Other comprehensive income (loss) before income taxes	—		340			(286		)	—			54
Income tax expense on above items	—		(46		)	(2		)	—			(48		)
Equity accounted investments	6		(288		)	—			282			—
Other comprehensive income (loss)	6		6			(288		)	282			6
Comprehensive income (loss)	$	874	$	813		$	(75	)	$	(738	)	$	874

Interim Condensed Consolidating Statements of Comprehensive Income

For the six months ended June 30, 2015



(in millions of Canadian dollars)	CPRL (Parent Guarantor)		CPRC (Subsidiary Issuer)			Non-Guarantor Subsidiaries			Consolidating Adjustments and Eliminations			CPRL Consolidated
Net income	$	710	$	723		$	301		$	(1,024	)	$	710
Net (loss) gain in foreign currency translation adjustments, net of hedging activities	—		(298		)	268			—			(30		)
Change in derivatives designated as cash flow hedges	—		(33		)	—			—			(33		)
Change in pension and post-retirement defined benefit plans	—		134			4			—			138
Other comprehensive (loss) income before income taxes	—		(197		)	272			—			75
Income tax recovery (expense) on above items	—		13			(2		)	—			11
Equity accounted investments	86		270			—			(356		)	—
Other comprehensive income	86		86			270			(356		)	86
Comprehensive income	$	796	$	809		$	571		$	(1,380	)	$	796

Interim Condensed Consolidating Balance Sheets

As at June 30, 2016



(in millions of Canadian dollars)	CPRL (Parent Guarantor)			CPRC (Subsidiary Issuer)			Non-Guarantor Subsidiaries		Consolidating Adjustments and Eliminations			CPRL Consolidated
Assets
Current assets
Cash and cash equivalents	$	—		$	47		$	45	$	—		$	92
Accounts receivable, net	—			406			171		—			577
Accounts receivable, inter-company	78			80			159		(317		)	—
Short-term advances to affiliates	—			470			3,758		(4,228		)	—
Materials and supplies	—			164			31		—			195
Other current assets	—			49			10		—			59
	78			1,216			4,174		(4,545		)	923
Long-term advances to affiliates	501			—			88		(589		)	—
Investments	—			26			129		—			155
Investments in subsidiaries	8,217			9,753			—		(17,970		)	—
Properties	—			8,560			7,600		—			16,160
Goodwill and intangible assets	—			—			195		—			195
Pension asset	—			1,565			—		—			1,565
Other assets	—			50			20		—			70
Deferred income taxes	14			—			—		(14		)	—
Total assets	$	8,810		$	21,170		$	12,206	$	(23,118	)	$	19,068
Liabilities and shareholders’ equity
Current liabilities
Accounts payable and accrued liabilities	$	156		$	804		$	287	$	—		$	1,247
Accounts payable, inter-company	3			235			79		(317		)	—
Short-term advances from affiliates	3,960			247			21		(4,228		)	—
Long-term debt maturing within one year	—			198			—		—			198
	4,119			1,484			387		(4,545		)	1,445
Pension and other benefit liabilities	—			675			76		—			751
Long-term advances from affiliates	—			589			—		(589		)	—
Other long-term liabilities	—			159			127		—			286
Long-term debt	—			8,323			60		—			8,383
Deferred income taxes	—			1,723			1,803		(14		)	3,512
Total liabilities	4,119			12,953			2,453		(5,148		)	14,377
Shareholders’ equity
Share capital	2,000			1,037			5,808		(6,845		)	2,000
Additional paid-in capital	49			1,630			418		(2,048		)	49
Accumulated other comprehensive (loss) income	(1,471		)	(1,471		)	548		923			(1,471		)
Retained earnings	4,113			7,021			2,979		(10,000		)	4,113
	4,691			8,217			9,753		(17,970		)	4,691
Total liabilities and shareholders’ equity	$	8,810		$	21,170		$	12,206	$	(23,118	)	$	19,068

Condensed Consolidating Balance Sheets

As at December 31, 2015



(in millions of Canadian dollars)	CPRL (Parent Guarantor)			CPRC (Subsidiary Issuer)			Non-Guarantor Subsidiaries		Consolidating Adjustments and Eliminations			CPRL Consolidated
Assets
Current assets
Cash and cash equivalents	$	—		$	502		$	148	$	—		$	650
Accounts receivable, net	—			452			193		—			645
Accounts receivable, inter-company	59			105			265		(429		)	—
Short-term advances to affiliates	—			75			3,483		(3,558		)	—
Materials and supplies	—			154			34		—			188
Other current assets	—			37			17		—			54
	59			1,325			4,140		(3,987		)	1,537
Long-term advances to affiliates	501			207			376		(1,084		)	—
Investments	—			22			130		—			152
Investments in subsidiaries	7,518			9,832			—		(17,350		)	—
Properties	—			8,481			7,792		—			16,273
Goodwill and intangible assets	—			3			208		—			211
Pension asset	—			1,401			—		—			1,401
Other assets	—			55			8		—			63
Deferred income taxes	25			—			—		(25		)	—
Total assets	$	8,103		$	21,326		$	12,654	$	(22,446	)	$	19,637
Liabilities and shareholders’ equity
Current liabilities
Accounts payable and accrued liabilities	$	54		$	1,122		$	241	$	—		$	1,417
Accounts payable, inter-company	—			325			104		(429		)	—
Short-term advances from affiliates	3,253			230			75		(3,558		)	—
Long-term debt maturing within one year	—			24			6		—			30
	3,307			1,701			426		(3,987		)	1,447
Pension and other benefit liabilities	—			676			82		—			758
Long-term advances from affiliates	—			877			207		(1,084		)	—
Other long-term liabilities	—			186			132		—			318
Long-term debt	—			8,863			64		—			8,927
Deferred income taxes	—			1,505			1,911		(25		)	3,391
Total liabilities	3,307			13,808			2,822		(5,096		)	14,841
Shareholders’ equity
Share capital	2,058			1,037			5,465		(6,502		)	2,058
Additional paid-in capital	43			1,568			613		(2,181		)	43
Accumulated other comprehensive (loss) income	(1,477		)	(1,477		)	840		637			(1,477		)
Retained earnings	4,172			6,390			2,914		(9,304		)	4,172
	4,796			7,518			9,832		(17,350		)	4,796
Total liabilities and shareholders’ equity	$	8,103		$	21,326		$	12,654	$	(22,446	)	$	19,637

Interim Condensed Consolidating Statements of Cash Flows

For the three months ended June 30, 2016



(in millions of Canadian dollars)	CPRL (Parent Guarantor)			CPRC (Subsidiary Issuer)			Non-Guarantor Subsidiaries			Consolidating Adjustments and Eliminations			CPRL Consolidated
Cash provided by operating activities	$	75		$	374		$	219		$	(156	)	$	512
Investing activities
Additions to properties	—			(206		)	(124		)	—			(330		)
Proceeds from sale of properties and other assets	—			11			—			—			11
Advances to affiliates	—			(482		)	(285		)	767			—
Repayment of advances to affiliates	—			208			—			(208		)	—
Capital contributions to affiliates	—			(348		)	—			348			—
Other	—			—			(2		)	—			(2		)
Cash used in investing activities	—			(817		)	(411		)	907			(321		)
Financing activities
Dividends paid	(53		)	(53		)	(103		)	156			(53		)
Issuance of share capital	—			—			348			(348		)	—
Issuance of CP Common Shares	4			—			—			—			4
Purchase of CP Common Shares	(788		)	—			—			—			(788		)
Repayment of long-term debt, excluding commercial paper	—			(7		)	—			—			(7		)
Net issuance of commercial paper	—			176			—			—			176
Advances from affiliates	762			—			5			(767		)	—
Repayment of advances from affiliates	—			—			(208		)	208			—
Other financing activities	—			(1		)	—			—			(1		)
Cash (used in) provided by financing activities	(75		)	115			42			(751		)	(669		)
Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents	—			(1		)	—			—			(1		)
Cash position
Decrease in cash and cash equivalents	—			(329		)	(150		)	—			(479		)
Cash and cash equivalents at beginning of period	—			376			195			—			571
Cash and cash equivalents at end of period	$	—		$	47		$	45		$	—		$	92

Interim Condensed Consolidating Statements of Cash Flows

For the three months ended June 30, 2015



(in millions of Canadian dollars)	CPRL (Parent Guarantor)			CPRC (Subsidiary Issuer)			Non-Guarantor Subsidiaries			Consolidating Adjustments and Eliminations			CPRL Consolidated
Cash provided by operating activities	$	59		$	525		$	143		$	(142	)	$	585
Investing activities
Additions to properties	—			(210		)	(145		)	—			(355		)
Proceeds from sale of properties and other assets	—			8			—			—			8
Advances to affiliates	(500		)	(633		)	(500		)	1,633			—
Capital contributions to affiliates	—			(500		)	—			500			—
Other	—			(6		)	(1		)	—			(7		)
Cash used in investing activities	(500		)	(1,341		)	(646		)	2,133			(354		)
Financing activities
Dividends paid	(57		)	(57		)	(85		)	142			(57		)
Issuance of share capital	—			—			500			(500		)	—
Issuance of CP Common Shares	11			—			—			—			11
Purchase of CP Common Shares	(543		)	—			—			—			(543		)
Repayment of long-term debt, excluding commercial paper	—			(9		)	—			—			(9		)
Net issuance of commercial paper	—			369			—			—			369
Advances from affiliates	1,030			500			103			(1,633		)	—
Cash provided by (used in) financing activities	441			803			518			(1,991		)	(229		)
Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents	—			(1		)	—			—			(1		)
Cash position
(Decrease) increase in cash and cash equivalents	—			(14		)	15			—			1
Cash and cash equivalents at beginning of period	—			153			31			—			184
Cash and cash equivalents at end of period	$	—		$	139		$	46		$	—		$	185

Interim Condensed Consolidating Statements of Cash Flows

For the six months ended June 30, 2016



(in millions of Canadian dollars)	CPRL (Parent Guarantor)			CPRC (Subsidiary Issuer)			Non-Guarantor Subsidiaries			Consolidating Adjustments and Eliminations			CPRL Consolidated
Cash provided by operating activities	$	98		$	425		$	417		$	(210	)	$	730
Investing activities
Additions to properties	—			(338		)	(270		)	—			(608		)
Proceeds from sale of properties and other assets	—			68			3			—			71
Advances to affiliates	—			(517		)	(285		)	802			—
Repayment of advances to affiliates	—			208			—			(208		)	—
Capital contributions to affiliates	—			(357		)	—			357			—
Repurchase of share capital from affiliates	—			6			—			(6		)	—
Other	—			—			(2		)	—			(2		)
Cash used in investing activities	—			(930		)	(554		)	945			(539		)
Financing activities
Dividends paid	(107		)	(107		)	(103		)	210			(107		)
Return of share capital to affiliates	—			—			(6		)	6			—
Issuance of share capital	—			—			357			(357		)	—
Issuance of CP Common Shares	9			—			—			—			9
Purchase of CP Common Shares	(788		)	—			—			—			(788		)
Repayment of long-term debt, excluding commercial paper	—			(11		)	(7		)	—			(18		)
Net issuance of commercial paper	—			176			—			—			176
Advances from affiliates	788			—			14			(802		)	—
Repayment of advances from affiliates	—			—			(208		)	208			—
Other financing activities	—			(3		)	—			—			(3		)
Cash (used in) provided by financing activities	(98		)	55			47			(735		)	(731		)
Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents	—			(5		)	(13		)	—			(18		)
Cash position
Decrease in cash and cash equivalents	—			(455		)	(103		)	—			(558		)
Cash and cash equivalents at beginning of period	—			502			148			—			650
Cash and cash equivalents at end of period	$	—		$	47		$	45		$	—		$	92

Interim Condensed Consolidating Statements of Cash Flows

For the six months ended June 30, 2015



(in millions of Canadian dollars)	CPRL (Parent Guarantor)			CPRC (Subsidiary Issuer)			Non-Guarantor Subsidiaries			Consolidating Adjustments and Eliminations			CPRL Consolidated
Cash provided by operating activities	$	115		$	824		$	416		$	(215	)	$	1,140
Investing activities
Additions to properties	—			(303		)	(315		)	—			(618		)
Proceeds from sale of properties and other assets	—			59			1			—			60
Advances to affiliates	(500		)	(936		)	(729		)	2,165			—
Capital contributions to affiliates	—			(617		)	—			617			—
Other	—			14			(1		)	—			13
Cash used in investing activities	(500		)	(1,783		)	(1,044		)	2,782			(545		)
Financing activities
Dividends paid	(115		)	(115		)	(100		)	215			(115		)
Issuance of share capital	—			—			617			(617		)	—
Issuance of CP Common Shares	27			—			—			—			27
Purchase of CP Common Shares	(1,072		)	—			—			—			(1,072		)
Issuance of long-term debt, excluding commercial paper	—			810			—			—			810
Repayment of long-term debt, excluding commercial paper	—			(24		)	(43		)	—			(67		)
Net repayment of commercial paper	—			(224		)	—			—			(224		)
Advances from affiliates	1,545			500			120			(2,165		)	—
Cash provided by (used in) financing activities	385			947			594			(2,567		)	(641		)
Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents	—			(1		)	6			—			5
Cash position
Decrease in cash and cash equivalents	—			(13		)	(28		)	—			(41		)
Cash and cash equivalents at beginning of period	—			152			74			—			226
Cash and cash equivalents at end of period	$	—		$	139		$	46		$	—		$	185