Condensed Consolidating Financial Information (Tables)

6 Months Ended

Jun. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Interim Condensed Consolidating Statements of Income

Interim Condensed Consolidating Statements of Income

For the three months ended June 30, 2019    

(in millions of Canadian dollars)	CPRL (Parent Guarantor)			CPRC (Subsidiary Issuer)			Non-Guarantor Subsidiaries			Consolidating Adjustments and Eliminations			CPRL Consolidated
Revenues
Freight	$	—		$	1,403		$	528		$	—		$	1,931
Non-freight	—			34			115			(103		)	46
Total revenues	—			1,437			643			(103		)	1,977
Operating expenses
Compensation and benefits	—			257			125			1			383
Fuel	—			189			47			—			236
Materials	—			37			13			4			54
Equipment rents	—			47			(13		)	—			34
Depreciation and amortization	—			110			73			—			183
Purchased services and other	—			240			133			(108		)	265
Total operating expenses	—			880			378			(103		)	1,155
Operating income	—			557			265			—			822
Less:
Other (income) expense	(5		)	(38		)	3			—			(40		)
Other components of net periodic benefit (recovery) expense	—			(100		)	2			—			(98		)
Net interest (income) expense	(1		)	120			(7		)	—			112
Income before income tax expense and equity in net earnings of subsidiaries	6			575			267			—			848
Less: Income tax expense	2			113			9			—			124
Add: Equity in net earnings of subsidiaries	720			258			—			(978		)	—
Net income	$	724		$	720		$	258		$	(978	)	$	724

Interim Condensed Consolidating Statements of Income

For the three months ended June 30, 2018                 

(in millions of Canadian dollars)	CPRL (Parent Guarantor)			CPRC (Subsidiary Issuer)			Non-Guarantor Subsidiaries			Consolidating Adjustments and Eliminations			CPRL Consolidated
Revenues
Freight	$	—		$	1,196		$	513		$	—		$	1,709
Non-freight	—			31			90			(80		)	41
Total revenues	—			1,227			603			(80		)	1,750
Operating expenses
Compensation and benefits	—			237			114			—			351
Fuel	—			178			52			—			230
Materials	—			38			12			3			53
Equipment rents	—			30			3			—			33
Depreciation and amortization	—			105			67			—			172
Purchased services and other	—			205			162			(83		)	284
Total operating expenses	—			793			410			(80		)	1,123
Operating income	—			434			193			—			627
Less:
Other expense (income)	5			79			(32		)	—			52
Other components of net periodic benefit (recovery) expense	—			(96		)	1			—			(95		)
Net interest (income) expense	(2		)	121			(7		)	—			112
(Loss) income before income tax expense and equity in net earnings of subsidiaries	(3		)	330			231			—			558
Less: Income tax (recovery) expense	(1		)	99			24			—			122
Add: Equity in net earnings of subsidiaries	438			207			—			(645		)	—
Net income	$	436		$	438		$	207		$	(645	)	$	436

Interim Condensed Consolidating Statements of Income

For the six months ended June 30, 2019    

(in millions of Canadian dollars)	CPRL (Parent Guarantor)			CPRC (Subsidiary Issuer)			Non-Guarantor Subsidiaries			Consolidating Adjustments and Eliminations			CPRL Consolidated
Revenues
Freight	$	—		$	2,647		$	1,010		$	—		$	3,657
Non-freight	—			63			229			(205		)	87
Total revenues	—			2,710			1,239			(205		)	3,744
Operating expenses
Compensation and benefits	—			531			255			3			789
Fuel	—			354			91			—			445
Materials	—			75			28			8			111
Equipment rents	—			80			(11		)	—			69
Depreciation and amortization	—			206			137			—			343
Purchased services and other	—			518			320			(216		)	622
Total operating expenses	—			1,764			820			(205		)	2,379
Operating income	—			946			419			—			1,365
Less:
Other (income) expense	(10		)	(81		)	4			—			(87		)
Other components of net periodic benefit (recovery) expense	—			(198		)	3			—			(195		)
Net interest (income) expense	(2		)	242			(14		)	—			226
Income before income tax expense and equity in net earnings of subsidiaries	12			983			426			—			1,421
Less: Income tax expense	2			217			44			—			263
Add: Equity in net earnings of subsidiaries	1,148			382			—			(1,530		)	—
Net income	$	1,158		$	1,148		$	382		$	(1,530	)	$	1,158

Interim Condensed Consolidating Statements of Income

For the six months ended June 30, 2018    

(in millions of Canadian dollars)	CPRL (Parent Guarantor)			CPRC (Subsidiary Issuer)			Non-Guarantor Subsidiaries			Consolidating Adjustments and Eliminations			CPRL Consolidated
Revenues
Freight	$	—		$	2,351		$	983		$	—		$	3,334
Non-freight	—			58			179			(159		)	78
Total revenues	—			2,409			1,162			(159		)	3,412
Operating expenses
Compensation and benefits	—			494			229			2			725
Fuel	—			346			99			—			445
Materials	—			73			27			8			108
Equipment rents	—			61			5			—			66
Depreciation and amortization	—			209			133			—			342
Purchased services and other	—			423			305			(169		)	559
Total operating expenses	—			1,606			798			(159		)	2,245
Operating income	—			803			364			—			1,167
Less:
Other expense (income)	11			127			(35		)	—			103
Other components of net periodic benefit (recovery) expense	—			(192		)	1			—			(191		)
Net interest expense (income)	6			235			(14		)	—			227
(Loss) income before income tax expense and equity in net earnings of subsidiaries	(17		)	633			412			—			1,028
Less: Income tax (recovery) expense	(1		)	185			60			—			244
Add: Equity in net earnings of subsidiaries	800			352			—			(1,152		)	—
Net income	$	784		$	800		$	352		$	(1,152	)	$	784

Interim Condensed Consolidating Statements of Comprehensive Income

Interim Condensed Consolidating Statements of Comprehensive Income

For the three months ended June 30, 2019             

(in millions of Canadian dollars)	CPRL (Parent Guarantor)		CPRC (Subsidiary Issuer)			Non-Guarantor Subsidiaries			Consolidating Adjustments and Eliminations			CPRL Consolidated
Net income	$	724	$	720		$	258		$	(978	)	$	724
Net gain (loss) in foreign currency translation adjustments, net of hedging activities	—		121			(106		)	—			15
Change in derivatives designated as cash flow hedges	—		4			—			—			4
Change in pension and post-retirement defined benefit plans	—		20			1			—			21
Other comprehensive income (loss) before income taxes	—		145			(105		)	—			40
Income tax expense on above items	—		(22		)	—			—			(22		)
Equity accounted investments	18		(105		)	—			87			—
Other comprehensive income (loss)	18		18			(105		)	87			18
Comprehensive income	$	742	$	738		$	153		$	(891	)	$	742

Interim Condensed Consolidating Statements of Comprehensive Income

For the three months ended June 30, 2018     

(in millions of Canadian dollars)	CPRL (Parent Guarantor)		CPRC (Subsidiary Issuer)			Non-Guarantor Subsidiaries			Consolidating Adjustments and Eliminations			CPRL Consolidated
Net income	$	436	$	438		$	207		$	(645	)	$	436
Net (loss) gain in foreign currency translation adjustments, net of hedging activities	—		(123		)	107			—			(16		)
Change in derivatives designated as cash flow hedges	—		14			—			—			14
Change in pension and post-retirement defined benefit plans	—		27			2			—			29
Other comprehensive (loss) income before income taxes	—		(82		)	109			—			27
Income tax recovery (expense) on above items	—		6			(1		)	—			5
Equity accounted investments	32		108			—			(140		)	—
Other comprehensive income	32		32			108			(140		)	32
Comprehensive income	$	468	$	470		$	315		$	(785	)	$	468

Interim Condensed Consolidating Statements of Comprehensive Income

For the six months ended June 30, 2019             

(in millions of Canadian dollars)	CPRL (Parent Guarantor)		CPRC (Subsidiary Issuer)			Non-Guarantor Subsidiaries			Consolidating Adjustments and Eliminations			CPRL Consolidated
Net income	$	1,158	$	1,148		$	382		$	(1,530	)	$	1,158
Net gain (loss) in foreign currency translation adjustments, net of hedging activities	—		241			(210		)	—			31
Change in derivatives designated as cash flow hedges	—		6			—			—			6
Change in pension and post-retirement defined benefit plans	—		39			2			—			41
Other comprehensive income (loss) before income taxes	—		286			(208		)	—			78
Income tax expense on above items	—		(44		)	—			—			(44		)
Equity accounted investments	34		(208		)	—			174			—
Other comprehensive income (loss)	34		34			(208		)	174			34
Comprehensive income	$	1,192	$	1,182		$	174		$	(1,356	)	$	1,192

Interim Condensed Consolidating Statements of Comprehensive Income

For the six months ended June 30, 2018             

(in millions of Canadian dollars)	CPRL (Parent Guarantor)		CPRC (Subsidiary Issuer)			Non-Guarantor Subsidiaries			Consolidating Adjustments and Eliminations			CPRL Consolidated
Net income	$	784	$	800		$	352		$	(1,152	)	$	784
Net (loss) gain in foreign currency translation adjustments, net of hedging activities	—		(273		)	237			—			(36		)
Change in derivatives designated as cash flow hedges	—		35			—			—			35
Change in pension and post-retirement defined benefit plans	—		55			3			—			58
Other comprehensive (loss) income before income taxes	—		(183		)	240			—			57
Income tax recovery (expense) on above items	—		12			(1		)	—			11
Equity accounted investments	68		239			—			(307		)	—
Other comprehensive income	68		68			239			(307		)	68
Comprehensive income	$	852	$	868		$	591		$	(1,459	)	$	852

Interim Condensed Consolidating Balance Sheets

Interim Condensed Consolidating Balance Sheets

As at June 30, 2019

(in millions of Canadian dollars)	CPRL (Parent Guarantor)			CPRC (Subsidiary Issuer)			Non-Guarantor Subsidiaries		Consolidating Adjustments and Eliminations			CPRL Consolidated
Assets
Current assets
Cash and cash equivalents	$	—		$	20		$	25	$	—		$	45
Accounts receivable, net	—			593			202		—			795
Accounts receivable, intercompany	153			146			205		(504		)	—
Short-term advances to affiliates	—			1,197			4,910		(6,107		)	—
Materials and supplies	—			158			37		—			195
Other current assets	—			61			19		—			80
	153			2,175			5,398		(6,611		)	1,115
Long-term advances to affiliates	1,090			6			85		(1,181		)	—
Investments	—			31			179		—			210
Investments in subsidiaries	11,819			12,225			—		(24,044		)	—
Properties	—			9,761			8,728		—			18,489
Goodwill and intangible assets	—			—			193		—			193
Pension asset	—			1,460			—		—			1,460
Other assets	—			161			305		—			466
Deferred income taxes	5			—			—		(5		)	—
Total assets	$	13,067		$	25,819		$	14,888	$	(31,841	)	$	21,933
Liabilities and shareholders’ equity
Current liabilities
Accounts payable and accrued liabilities	$	156		$	872		$	373	$	—		$	1,401
Accounts payable, intercompany	5			354			145		(504		)	—
Short-term advances from affiliates	5,749			356			2		(6,107		)	—
Long-term debt maturing within one year	—			273			—		—			273
	5,910			1,855			520		(6,611		)	1,674
Pension and other benefit liabilities	—			638			75		—			713
Long-term advances from affiliates	—			1,175			6		(1,181		)	—
Other long-term liabilities	—			234			364		—			598
Long-term debt	—			8,213			53		—			8,266
Deferred income taxes	—			1,885			1,645		(5		)	3,525
Total liabilities	5,910			14,000			2,663		(7,797		)	14,776
Shareholders’ equity
Share capital	1,996			537			6,071		(6,608		)	1,996
Additional paid-in capital	45			1,645			95		(1,740		)	45
Accumulated other comprehensive (loss) income	(2,009		)	(2,009		)	631		1,378			(2,009		)
Retained earnings	7,125			11,646			5,428		(17,074		)	7,125
	7,157			11,819			12,225		(24,044		)	7,157
Total liabilities and shareholders’ equity	$	13,067		$	25,819		$	14,888	$	(31,841	)	$	21,933

Condensed Consolidating Balance Sheets

As at December 31, 2018                

(in millions of Canadian dollars)	CPRL (Parent Guarantor)			CPRC (Subsidiary Issuer)			Non-Guarantor Subsidiaries		Consolidating Adjustments and Eliminations			CPRL Consolidated
Assets
Current assets
Cash and cash equivalents	$	—		$	42		$	19	$	—		$	61
Accounts receivable, net	—			629			186		—			815
Accounts receivable, intercompany	125			167			224		(516		)	—
Short-term advances to affiliates	—			1,602			4,651		(6,253		)	—
Materials and supplies	—			136			37		—			173
Other current assets	—			39			29		—			68
	125			2,615			5,146		(6,769		)	1,117
Long-term advances to affiliates	1,090			5			93		(1,188		)	—
Investments	—			24			179		—			203
Investments in subsidiaries	11,443			12,003			—		(23,446		)	—
Properties	—			9,579			8,839		—			18,418
Goodwill and intangible assets	—			—			202		—			202
Pension asset	—			1,243			—		—			1,243
Other assets	—			57			14		—			71
Deferred income taxes	6			—			—		(6		)	—
Total assets	$	12,664		$	25,526		$	14,473	$	(31,409	)	$	21,254
Liabilities and shareholders’ equity
Current liabilities
Accounts payable and accrued liabilities	$	115		$	1,017		$	317	$	—		$	1,449
Accounts payable, intercompany	4			344			168		(516		)	—
Short-term advances from affiliates	5,909			341			3		(6,253		)	—
Long-term debt maturing within one year	—			506			—		—			506
	6,028			2,208			488		(6,769		)	1,955
Pension and other benefit liabilities	—			639			79		—			718
Long-term advances from affiliates	—			1,182			6		(1,188		)	—
Other long-term liabilities	—			120			117		—			237
Long-term debt	—			8,135			55		—			8,190
Deferred income taxes	—			1,799			1,725		(6		)	3,518
Total liabilities	6,028			14,083			2,470		(7,963		)	14,618
Shareholders’ equity
Share capital	2,002			538			5,946		(6,484		)	2,002
Additional paid-in capital	42			1,656			92		(1,748		)	42
Accumulated other comprehensive (loss) income	(2,043		)	(2,043		)	839		1,204			(2,043		)
Retained earnings	6,635			11,292			5,126		(16,418		)	6,635
	6,636			11,443			12,003		(23,446		)	6,636
Total liabilities and shareholders’ equity	$	12,664		$	25,526		$	14,473	$	(31,409	)	$	21,254

Interim Condensed Consolidating Statements of Cash Flows

Interim Condensed Consolidating Statements of Cash Flows

For the three months ended June 30, 2019

(in millions of Canadian dollars)	CPRL (Parent Guarantor)			CPRC (Subsidiary Issuer)			Non-Guarantor Subsidiaries			Consolidating Adjustments and Eliminations			CPRL Consolidated
Cash provided by operating activities	$	98		$	565		$	235		$	(177	)	$	721
Investing activities
Additions to properties	—			(316		)	(143		)	—			(459		)
Proceeds from sale of properties and other assets	—			8			—			—			8
Advances to affiliates	—			—			(245		)	245			—
Repayment of advances to affiliates	—			5			19			(24		)	—
Capital contributions to affiliates	—			(125		)	—			125			—
Other	—			1			(5		)	—			(4		)
Cash used in investing activities	—			(427		)	(374		)	346			(455		)
Financing activities
Dividends paid	(91		)	(91		)	(86		)	177			(91		)
Issuance of share capital	—			—			125			(125		)	—
Issuance of CP Common Shares	10			—			—			—			10
Purchase of CP Common Shares	(257		)	—			—			—			(257		)
Repayment of long-term debt, excluding commercial paper	—			(480		)	—			—			(480		)
Net issuance of commercial paper	—			246			—			—			246
Advances from affiliates	245			—			—			(245		)	—
Repayment of advances from affiliates	(5		)	(19		)	—			24			—
Cash (used in) provided by financing activities	(98		)	(344		)	39			(169		)	(572		)
Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents	—			—			(1		)	—			(1		)
Cash position
Decrease in cash and cash equivalents	—			(206		)	(101		)	—			(307		)
Cash and cash equivalents at beginning of period	—			226			126			—			352
Cash and cash equivalents at end of period	$	—		$	20		$	25		$	—		$	45

Interim Condensed Consolidating Statements of Cash Flows

For the three months ended June 30, 2018

(in millions of Canadian dollars)	CPRL (Parent Guarantor)			CPRC (Subsidiary Issuer)			Non-Guarantor Subsidiaries			Consolidating Adjustments and Eliminations			CPRL Consolidated
Cash provided by operating activities	$	83		$	501		$	328		$	(201	)	$	711
Investing activities
Additions to properties	—			(276		)	(137		)	—			(413		)
Proceeds from sale of properties and other assets	—			3			2			—			5
Advances to affiliates	—			(255		)	(7		)	262			—
Repurchase of share capital from affiliates	—			124			—			(124		)	—
Cash used in investing activities	—			(404		)	(142		)	138			(408		)
Financing activities
Dividends paid	(81		)	(81		)	(120		)	201			(81		)
Return of share capital to affiliates				—			(124		)	124			—
Issuance of CP Common Shares	4			—			—			—			4
Purchase of CP Common Shares	(261		)	—			—			—			(261		)
Issuance of long-term debt, excluding commercial paper	—			638			—			—			638
Repayment of long-term debt, excluding commercial paper	—			(734		)	—			—			(734		)
Net issuance of commercial paper				53			—			—			53
Advances from affiliates	255			7			—			(262		)	—
Cash used in financing activities	(83		)	(117		)	(244		)	63			(381		)
Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents	—			(3		)	7			—			4
Cash position
Decrease in cash and cash equivalents	—			(23		)	(51		)	—			(74		)
Cash and cash equivalents at beginning of period	—			43			82			—			125
Cash and cash equivalents at end of period	$	—		$	20		$	31		$	—		$	51

Interim Condensed Consolidating Statements of Cash Flows

For the six months ended June 30, 2019

(in millions of Canadian dollars)	CPRL (Parent Guarantor)			CPRC (Subsidiary Issuer)			Non-Guarantor Subsidiaries			Consolidating Adjustments and Eliminations			CPRL Consolidated
Cash provided by operating activities	$	785		$	763		$	454		$	(868	)	$	1,134
Investing activities
Additions to properties	—			(457		)	(226		)	—			(683		)
Proceeds from sale of properties and other assets	—			12			2			—			14
Advances to affiliates	—			(250		)	(260		)	510			—
Repayment of advances to affiliates	—			648			4			(652		)	—
Capital contributions to affiliates	—			(125		)	—			125			—
Other	—			1			(6		)	—			(5		)
Cash used in investing activities	—			(171		)	(486		)	(17		)	(674		)
Financing activities
Dividends paid	(182		)	(782		)	(86		)	868			(182		)
Issuance of share capital	—			—			125			(125		)	—
Issuance of CP Common Shares	14			—			—			—			14
Purchase of CP Common Shares	(464		)	—			—			—			(464		)
Issuance of long-term debt, excluding commercial paper	—			397			—			—			397
Repayment of long-term debt, excluding commercial paper	—			(485		)	—			—			(485		)
Net issuance of commercial paper	—			246			—			—			246
Advances from affiliates	495			15			—			(510		)	—
Repayment of advances from affiliates	(648		)	(4		)	—			652			—
Cash (used in) provided by financing activities	(785		)	(613		)	39			885			(474		)
Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents	—			(1		)	(1		)	—			(2		)
Cash position
(Decrease) increase in cash and cash equivalents	—			(22		)	6			—			(16		)
Cash and cash equivalents at beginning of year	—			42			19			—			61
Cash and cash equivalents at end of year	$	—		$	20		$	25		$	—		$	45

Interim Condensed Consolidating Statements of Cash Flows

For the six months ended June 30, 2018

(in millions of Canadian dollars)	CPRL (Parent Guarantor)			CPRC (Subsidiary Issuer)			Non-Guarantor Subsidiaries			Consolidating Adjustments and Eliminations			CPRL Consolidated
Cash provided by operating activities	$	148		$	893		$	463		$	(396	)	$	1,108
Investing activities
Additions to properties	—			(398		)	(256		)	—			(654		)
Proceeds from sale of properties and other assets	—			6			3			—			9
Advances to affiliates	—			(562		)	—			562			—
Repayment of advances to affiliates	—			—			495			(495		)	—
Repurchase of share capital from affiliates	—			547			—			(547		)	—
Other	—			—			(1		)	—			(1		)
Cash (used in) provided by investing activities	—			(407		)	241			(480		)	(646		)
Financing activities
Dividends paid	(163		)	(163		)	(233		)	396			(163		)
Return of share capital to affiliates	—			—			(547		)	547			—
Issuance of CP Common Shares	12			—			—			—			12
Purchase of CP Common Shares	(559		)	—			—			—			(559		)
Issuance of long-term debt, excluding commercial paper	—			638			—			—			638
Repayment of long-term debt, excluding commercial paper	—			(739		)	—			—			(739		)
Net issuance of commercial paper	—			53			—			—			53
Advances from affiliates	562			—			—			(562		)	—
Repayment of advances from affiliates	—			(495		)	—			495			—
Cash used in financing activities	(148		)	(706		)	(780		)	876			(758		)
Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents	—			(1		)	10			—			9
Cash position
Decrease in cash and cash equivalents	—			(221		)	(66		)	—			(287		)
Cash and cash equivalents at beginning of year	—			241			97			—			338
Cash and cash equivalents at end of year	$	—		$	20		$	31		$	—		$	51