Condensed Consolidating Financial Information (Tables)

12 Months Ended

Dec. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidating Statements of Income

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

YEAR ENDED DECEMBER 31, 2016

(in millions of Canadian dollars)	CPRL (Parent Guarantor)			CPRC (Subsidiary Issuer)			Non-Guarantor Subsidiaries			Consolidating Adjustments and Eliminations			CPRL Consolidated
Revenues
Freight	$	—		$	4,332		$	1,728		$	—		$	6,060
Non-freight	—			134			386			(348		)	172
Total revenues	—			4,466			2,114			(348		)	6,232
Operating expenses
Compensation and benefits	—			749			434			6			1,189
Fuel	—			458			109			—			567
Materials	—			130			32			18			180
Equipment rents	—			204			(31		)	—			173
Depreciation and amortization	—			422			218			—			640
Purchased services and other	—			673			604			(372		)	905
Total operating expenses	—			2,636			1,366			(348		)	3,654
Operating income	—			1,830			748			—			2,578
Less:
Other income and charges	(40		)	(34		)	29			—			(45		)
Net interest expense (income)	1			493			(23		)	—			471
Income before income tax expense and equity in net earnings of subsidiaries	39			1,371			742			—			2,152
Less: Income tax expense	6			337			210			—			553
Add: Equity in net earnings of subsidiaries	1,566			532			—			(2,098		)	—
Net income	$	1,599		$	1,566		$	532		$	(2,098	)	$	1,599

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

YEAR ENDED DECEMBER 31, 2015

(in millions of Canadian dollars)	CPRL (Parent Guarantor)			CPRC (Subsidiary Issuer)		Non-Guarantor Subsidiaries			Consolidating Adjustments and Eliminations			CPRL Consolidated
Revenues
Freight	$	—		$	4,532	$	2,020		$	—		$	6,552
Non-freight	—			128		363			(331		)	160
Total revenues	—			4,660		2,383			(331		)	6,712
Operating expenses
Compensation and benefits	—			943		428			—			1,371
Fuel	—			549		159			—			708
Materials	—			148		36			—			184
Equipment rents	—			181		(7		)	—			174
Depreciation and amortization	—			411		184			—			595
Purchased services and other	—			711		680			(331		)	1,060
Gain on sale of Delaware & Hudson South	—			—		(68		)	—			(68		)
Total operating expenses	—			2,943		1,412			(331		)	4,024
Operating income	—			1,717		971			—			2,688
Less:
Other income and charges	84			322		(71		)	—			335
Net interest (income) expense	(5		)	447		(48		)	—			394
(Loss) income before income tax expense and equity in net earnings of subsidiaries	(79		)	948		1,090			—			1,959
Less: Income tax (recovery) expense	(21		)	303		325			—			607
Add: Equity in net earnings of subsidiaries	1,410			765		—			(2,175		)	—
Net income	$	1,352		$	1,410	$	765		$	(2,175	)	$	1,352

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

YEAR ENDED DECEMBER 31, 2014

(in millions of Canadian dollars)	CPRL (Parent Guarantor)			CPRC (Subsidiary Issuer)		Non-Guarantor Subsidiaries			Consolidating Adjustments and Eliminations			CPRL Consolidated
Revenues
Freight	$	—		$	4,524	$	1,940		$	—		$	6,464
Non-freight	—			130		357			(331		)	156
Total revenues	—			4,654		2,297			(331		)	6,620
Operating expenses
Compensation and benefits	—			945		403			—			1,348
Fuel	—			779		269			—			1,048
Materials	—			156		37			—			193
Equipment rents	—			137		18			—			155
Depreciation and amortization	—			396		156			—			552
Purchased services and other	—			706		610			(331		)	985
Total operating expenses	—			3,119		1,493			(331		)	4,281
Operating income	—			1,535		804			—			2,339
Less:
Other income and charges	3			46		(30		)	—			19
Net interest expense	—			250		32			—			282
(Loss) income before income tax expense and equity in net earnings of subsidiaries	(3		)	1,239		802			—			2,038
Less: Income tax (recovery) expense	(1		)	320		243			—			562
Add: Equity in net earnings of subsidiaries	$	1,478		$	559	$	—		$	(2,037	)	$	—
Net income	$	1,476		$	1,478	$	559		$	(2,037	)	$	1,476

Condensed Consolidating Statements of Comprehensive Income

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

YEAR ENDED DECEMBER 31, 2016

(in millions of Canadian dollars)	CPRL (Parent Guarantor)			CPRC (Subsidiary Issuer)			Non-Guarantor Subsidiaries			Consolidating Adjustments and Eliminations			CPRL Consolidated
Net income	$	1,599		$	1,566		$	532		$	(2,098	)	$	1,599
Net gain (loss) in foreign currency translation adjustments, net of hedging activities	—			149			(131		)	—			18
Change in derivatives designated as cash flow hedges	—			(2		)	—			—			(2		)
Change in pension and post-retirement defined benefit plans	—			(443		)	9			—			(434		)
Other comprehensive loss before income taxes	—			(296		)	(122		)	—			(418		)
Income tax recovery (expense) on above items	—			99			(3		)	—			96
Equity accounted investments	(322		)	(125		)	—			447			—
Other comprehensive loss	(322		)	(322		)	(125		)	447			(322		)
Comprehensive income	$	1,277		$	1,244		$	407		$	(1,651	)	$	1,277

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

YEAR ENDED DECEMBER 31, 2015

(in millions of Canadian dollars)	CPRL (Parent Guarantor)		CPRC (Subsidiary Issuer)			Non-Guarantor Subsidiaries			Consolidating Adjustments and Eliminations			CPRL Consolidated
Net income	$	1,352	$	1,410		$	765		$	(2,175	)	$	1,352
Net (loss) gain in foreign currency translation adjustments, net of hedging activities	—		(757		)	671			—			(86		)
Change in derivatives designated as cash flow hedges	—		(69		)	—			—			(69		)
Change in pension and post-retirement defined benefit plans	—		1,061			(2		)	—			1,059
Other comprehensive income before income taxes	—		235			669			—			904
Income tax (expense) recovery on above items	—		(163		)	1			—			(162		)
Equity accounted investments	742		670			—			(1,412		)	—
Other comprehensive income	742		742			670			(1,412		)	742
Comprehensive income	$	2,094	$	2,152		$	1,435		$	(3,587	)	$	2,094

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

YEAR ENDED DECEMBER 31, 2014

(in millions of Canadian dollars)	CPRL (Parent Guarantor)			CPRC (Subsidiary Issuer)			Non-Guarantor Subsidiaries			Consolidating Adjustments and Eliminations			CPRL Consolidated
Net income	$	1,476		$	1,478		$	559		$	(2,037	)	$	1,476
Net (loss) gain in foreign currency translation adjustments, net of hedging activities	—			(316		)	284			—			(32		)
Change in derivatives designated as cash flow hedges	—			(49		)	—			—			(49		)
Change in pension and post-retirement defined benefit plans	—			(908		)	(33		)	—			(941		)
Other comprehensive (loss) income before income taxes	—			(1,273		)	251			—			(1,022		)
Income tax recovery on above items	—			293			13			—			306
Equity accounted investments	(716		)	264			—			452			—
Other comprehensive (loss) income	(716		)	(716		)	264			452			(716		)
Comprehensive income	$	760		$	762		$	823		$	(1,585	)	$	760

Condensed Consolidating Balance Sheets

CONDENSED CONSOLIDATING BALANCE SHEETS

AS AT DECEMBER 31, 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	$	—		$	100		$	64	$	—		$	164
Accounts receivable, net	—			435			156		—			591
Accounts receivable, intercompany	90			113			206		(409		)	—
Short-term advances to affiliates	500			692			4,035		(5,227		)	—
Materials and supplies	—			150			34		—			184
Other current assets	—			38			32		—			70
	590			1,528			4,527		(5,636		)	1,009
Long-term advances to affiliates	1			—			91		(92		)	—
Investments	—			47			147		—			194
Investments in subsidiaries	8,513			10,249			—		(18,762		)	—
Properties	—			8,756			7,933		—			16,689
Goodwill and intangible assets	—			—			202		—			202
Pension asset	—			1,070			—		—			1,070
Other assets	1			48			8		—			57
Deferred income taxes	11			—			—		(11		)	—
Total assets	$	9,116		$	21,698		$	12,908	$	(24,501	)	$	19,221
Liabilities and shareholders’ equity
Current liabilities
Accounts payable and accrued liabilities	$	73		$	945		$	304	$	—		$	1,322
Accounts payable, intercompany	14			292			103		(409		)	—
Short-term advances from affiliates	4,403			816			8		(5,227		)	—
Long-term debt maturing within one year	—			25			—		—			25
	4,490			2,078			415		(5,636		)	1,347
Pension and other benefit liabilities	—			658			76		—			734
Long-term advances from affiliates	—			92			—		(92		)	—
Other long-term liabilities	—			152			132		—			284
Long-term debt	—			8,605			54		—			8,659
Deferred income taxes	—			1,600			1,982		(11		)	3,571
Total liabilities	4,490			13,185			2,659		(5,739		)	14,595
Shareholders’ equity
Share capital	2,002			1,037			5,823		(6,860		)	2,002
Additional paid-in capital	52			1,638			298		(1,936		)	52
Accumulated other comprehensive (loss) income	(1,799		)	(1,799		)	712		1,087			(1,799		)
Retained earnings	4,371			7,637			3,416		(11,053		)	4,371
	4,626			8,513			10,249		(18,762		)	4,626
Total liabilities and shareholders’ equity	$	9,116		$	21,698		$	12,908	$	(24,501	)	$	19,221

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, intercompany	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, intercompany	—			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

Condensed Consolidating Statements of Cash Flows

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

YEAR ENDED DECEMBER 31, 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	$	255		$	1,424		$	879		$	(469	)	$	2,089
Investing activities
Additions to properties	—			(728		)	(454		)	—			(1,182		)
Proceeds from sale of properties and other assets	—			102			14			—			116
Advances to affiliates	—			(664		)	(539		)	1,203			—
Repayment of advances to affiliates	—			222			—			(222		)	—
Capital contributions to affiliates	—			(472		)	—			472			—
Repurchase of share capital from affiliates	—			8			—			(8		)	—
Other	—			—			(3		)	—			(3		)
Cash used in investing activities	—			(1,532		)	(982		)	1,445			(1,069		)
Financing activities
Dividends paid	(255		)	(255		)	(214		)	469			(255		)
Issuance of share capital	—			—			472			(472		)	—
Return of share capital to affiliates	—			—			(8		)	8			—
Issuance of CP Common Shares	21			—			—			—			21
Purchase of CP Common Shares	(1,210		)	—			—			—			(1,210		)
Repayment of long-term debt, excluding commercial paper	—			(24		)	(14		)	—			(38		)
Net repayment of commercial paper	—			(8		)	—			—			(8		)
Advances from affiliates	1,189			—			14			(1,203		)	—
Repayment of advances from affiliates	—			—			(222		)	222			—
Other	—			(3		)	—			—			(3		)
Cash (used in) provided by financing activities	(255		)	(290		)	28			(976		)	(1,493		)
Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents	—			(4		)	(9		)	—			(13		)
Cash position
Decrease in cash and cash equivalents	—			(402		)	(84		)	—			(486		)
Cash and cash equivalents at beginning of year	—			502			148			—			650
Cash and cash equivalents at end of year	$	—		$	100		$	64		$	—		$	164

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

YEAR ENDED DECEMBER 31, 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	$	2,283		$	1,650		$	1,074		$	(2,548	)	$	2,459
Investing activities
Additions to properties	—			(766		)	(756		)	—			(1,522		)
Proceeds from the sale of Delaware & Hudson South	—			—			281			—			281
Proceeds from sale of properties and other assets	—			103			11			—			114
Advances to affiliates	(1,133		)	(311		)	(1,820		)	3,264			—
Repayment of advances to affiliates	—			804			1,000			(1,804		)	—
Capital contributions to affiliates	—			(1,655		)	—			1,655			—
Repurchase of share capital from affiliates	—			1,210			—			(1,210		)	—
Other	—			6			(2		)	—			4
Cash used in investing activities	(1,133		)	(609		)	(1,286		)	1,905			(1,123		)
Financing activities
Dividends paid	(226		)	(2,272		)	(276		)	2,548			(226		)
Issuance of share capital	—			—			1,655			(1,655		)	—
Return of share capital to affiliates	—			—			(1,210		)	1,210			—
Issuance of CP Common Shares	43			—			—			—			43
Purchase of CP Common Shares	(2,787		)	—			—			—			(2,787		)
Issuance of long-term debt, excluding commercial paper	—			3,411			—			—			3,411
Repayment of long-term debt, excluding commercial paper	—			(461		)	(44		)	—			(505		)
Net repayment of commercial paper	—			(893		)	—			—			(893		)
Advances from affiliates	1,820			500			944			(3,264		)	—
Repayment of advances from affiliates	—			(1,000		)	(804		)	1,804			—
Cash (used in) provided by financing activities	(1,150		)	(715		)	265			643			(957		)
Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents	—			24			21			—			45
Cash position
Increase in cash and cash equivalents	—			350			74			—			424
Cash and cash equivalents at beginning of year	—			152			74			—			226
Cash and cash equivalents at end of year	$	—		$	502		$	148		$	—		$	650

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

YEAR ENDED DECEMBER 31, 2014

(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	$	183		$	1,684		$	604		$	(348	)	$	2,123
Investing activities
Additions to properties	—			(816		)	(702		)	69			(1,449		)
Proceeds from the sale of west end of Dakota, Minnesota and Eastern Railroad	—			—			236			—			236
Proceeds from sale of properties and other assets	—			116			5			(69		)	52
Advances to affiliates	—			(611		)	(2,636		)	3,247			—
Repayment of advances to affiliates	—			2,167			1,592			(3,759		)	—
Capital contributions to affiliates	—			(2,927		)	—			2,927			—
Other	—			2			(2		)	—			—
Cash used in investing activities(1)	—			(2,069		)	(1,507		)	2,415			(1,161		)
Financing activities
Dividends paid	(244		)	(182		)	(166		)	348			(244		)
Issuance of share capital	—			—			2,927			(2,927		)	—
Issuance of CP Common Shares	62			—			—			—			62
Purchase of CP Common Shares	(2,050		)	—			—			—			(2,050		)
Repayment of long-term debt, excluding commercial paper	—			(174		)	(9		)	—			(183		)
Net issuance of commercial paper	—			771			—			—			771
Settlement of foreign exchange forward on long-term debt	—			17			—			—			17
Advances from affiliates	2,049			1,198			—			(3,247		)	—
Repayment of advances from affiliates	—			(1,592		)	(2,167		)	3,759			—
Other	—			—			(3		)	—			(3		)
Cash (used in) provided by financing activities	(183		)	38			582			(2,067		)	(1,630		)
Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents	—			(3		)	10			—			7
Cash position
Decrease in cash, cash equivalents, and restricted cash(1)	—			(350		)	(311		)	—			(661		)
Cash, cash equivalents, and restricted cash at beginning of year(1)	—			502			385			—			887
Cash, cash equivalents, and restricted cash at end of year(1)	$	—		$	152		$	74		$	—		$	226