Document and Entity Information
Document and Entity Information Document - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 20, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2020 | |
Document Period End Date | Mar. 31, 2020 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-01342 | |
Entity Registrant Name | CANADIAN PACIFIC RAILWAY LTD/CN | |
Entity Central Index Key | 0000016875 | |
Entity Incorporation, State or Country Code | Z4 | |
Entity Tax Identification Number | 98-0355078 | |
Entity Address, Address Line One | 7550 Ogden Dale Road S.E. | |
Entity Address, City or Town | Calgary | |
Entity Address, State or Province | AB | |
Entity Address, Postal Zip Code | T2C 4X9 | |
City Area Code | (403) | |
Local Phone Number | 319-7000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 135,631,754 | |
Common Shares, without par value, of Canadian Pacific Railway Limited | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Shares, without par value, of Canadian Pacific Railway Limited | |
Trading Symbol | CP | |
Security Exchange Name | NYSE | |
Perpetual 4% Consolidated Debenture Stock of Canadian Pacific Railway Company | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Perpetual 4% Consolidated Debenture Stock of Canadian Pacific Railway Company | |
Trading Symbol | CP/40 | |
Security Exchange Name | NYSE |
INTERIM CONSOLIDATED STATEMENTS
INTERIM CONSOLIDATED STATEMENTS OF INCOME (unaudited) - CAD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues | ||
Total revenues | $ 2,043 | $ 1,767 |
Operating expenses | ||
Compensation and benefits | 398 | 406 |
Fuel | 212 | 209 |
Materials | 59 | 57 |
Equipment rents | 36 | 35 |
Depreciation and amortization | 192 | 160 |
Purchased services and other | 312 | 357 |
Total operating expenses | 1,209 | 1,224 |
Operating income | 834 | 543 |
Less: | ||
Other expense (income) | 211 | (47) |
Other components of net periodic benefit recovery | (85) | (97) |
Net interest expense | 114 | 114 |
Income before income tax expense | 594 | 573 |
Income tax expense | 185 | 139 |
Net income | $ 409 | $ 434 |
Earnings per share | ||
Basic earnings per share | $ 2.99 | $ 3.10 |
Diluted earnings per share | $ 2.98 | $ 3.09 |
Weighted-average number of shares (millions) | ||
Basic | 136.7 | 140.1 |
Diluted | 137.2 | 140.5 |
Dividends declared per share | $ 0.8300 | $ 0.6500 |
Freight | ||
Revenues | ||
Total revenues | $ 2,000 | $ 1,726 |
Non-freight | ||
Revenues | ||
Total revenues | $ 43 | $ 41 |
INTERIM CONSOLIDATED STATEMEN_2
INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - CAD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 409 | $ 434 |
Net (loss) gain in foreign currency translation adjustments, net of hedging activities | (65) | 16 |
Change in derivatives designated as cash flow hedges | 2 | 2 |
Change in pension and post-retirement defined benefit plans | 45 | 20 |
Other comprehensive (loss) income before income taxes | (18) | 38 |
Income tax recovery (expense) on above items | 60 | (22) |
Other comprehensive income (loss) | 42 | 16 |
Comprehensive income | $ 451 | $ 450 |
INTERIM CONSOLIDATED BALANCE SH
INTERIM CONSOLIDATED BALANCE SHEETS AS AT (unaudited) - CAD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets | ||||
Cash and cash equivalents | $ 247 | $ 133 | ||
Accounts receivable, net | 885 | 805 | ||
Materials and supplies | 177 | 182 | ||
Other current assets | 98 | 90 | ||
Total current assets | 1,407 | 1,210 | ||
Investments | 369 | 341 | ||
Properties | 19,900 | 19,156 | ||
Goodwill and intangible assets | 223 | 206 | ||
Pension asset | 1,111 | 1,003 | ||
Other assets | 478 | 451 | ||
Total assets | 23,488 | 22,367 | ||
Current liabilities | ||||
Accounts payable and accrued liabilities | 1,528 | 1,693 | ||
Long-term debt maturing within one year | 266 | 599 | ||
Total current liabilities | 1,794 | 2,292 | ||
Pension and other benefit liabilities | 790 | 785 | ||
Other long-term liabilities | 541 | 562 | ||
Long-term debt | 9,804 | 8,158 | ||
Deferred income taxes | 3,604 | 3,501 | ||
Total liabilities | 16,533 | 15,298 | ||
Shareholders’ equity | ||||
Share capital | 1,985 | 1,993 | ||
Additional paid-in capital | 51 | 48 | ||
Accumulated other comprehensive loss | (2,480) | (2,522) | $ (2,027) | $ (2,043) |
Retained earnings | 7,399 | 7,550 | ||
Total shareholders' equity | 6,955 | 7,069 | $ 6,814 | |
Total liabilities and shareholders’ equity | $ 23,488 | $ 22,367 |
INTERIM CONSOLIDATED STATEMEN_3
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - CAD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating activities | ||
Net income | $ 409 | $ 434 |
Reconciliation of net income to cash provided by operating activities: | ||
Depreciation and amortization | 192 | 160 |
Deferred income tax expense | 39 | 38 |
Pension recovery and funding | (65) | (88) |
Foreign exchange loss (gain) on debt and lease liabilities | 215 | (45) |
Other operating activities, net | (72) | 45 |
Change in non-cash working capital balances related to operations | (229) | (131) |
Cash provided by operating activities | 489 | 413 |
Investing activities | ||
Additions to properties | (355) | (224) |
Proceeds from sale of properties and other assets | 2 | 6 |
Other investing activities | (9) | (1) |
Cash used in investing activities | (362) | (219) |
Financing activities | ||
Dividends paid | (114) | (91) |
Issuance of CP Common Shares | 24 | 4 |
Purchase of CP Common Shares | (501) | (207) |
Issuance of long-term debt, excluding commercial paper | 959 | 397 |
Repayment of long-term debt, excluding commercial paper | (15) | (5) |
Net repayment of commercial paper | (553) | 0 |
Increase in short-term borrowings | 145 | 0 |
Other financing activities | 11 | 0 |
Cash (used in) provided by financing activities | (44) | 98 |
Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents | 31 | (1) |
Cash position | ||
Increase in cash and cash equivalents | 114 | 291 |
Cash and cash equivalents at beginning of period | 133 | 61 |
Cash and cash equivalents at end of period | 247 | 352 |
Supplemental disclosures of cash flow information: | ||
Income taxes paid | 139 | 149 |
Interest paid | $ 157 | $ 149 |
INTERIM CONSOLIDATED STATEMEN_4
INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited) - CAD ($) shares in Millions, $ in Millions | Total | Share capital | Additional paid-in capital | Accumulated other comprehensive loss | Retained earnings |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance at January 1, 2020, as restated | $ 6,631 | $ 2,002 | $ 42 | $ (2,043) | $ 6,630 |
Beginning balance (shares) at Dec. 31, 2018 | 140.5 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 434 | 0 | 0 | 0 | 434 |
Other comprehensive income | 16 | 0 | 0 | 16 | 0 |
Dividends declared | (91) | 0 | 0 | 0 | (91) |
Effect of stock-based compensation expense | $ 5 | 0 | 5 | 0 | 0 |
CP Common Shares repurchased (shares) | (0.7) | ||||
CP Common Shares repurchased | $ (185) | (10) | 0 | 0 | (175) |
Shares issued under stock option plan (shares) | 0 | ||||
Shares issued under stock option plan | $ (4) | (5) | (1) | 0 | 0 |
Ending balance (shares) at Mar. 31, 2019 | 139.8 | ||||
Ending balance at Mar. 31, 2019 | $ 6,814 | 1,997 | 46 | (2,027) | 6,798 |
Beginning balance (shares) at Dec. 31, 2019 | 137 | ||||
Beginning balance at Dec. 31, 2019 | $ 7,069 | 1,993 | 48 | (2,522) | 7,550 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 409 | 0 | 0 | 0 | 409 |
Other comprehensive income | 42 | 0 | 0 | 42 | 0 |
Dividends declared | (112) | 0 | 0 | 0 | (112) |
Effect of stock-based compensation expense | $ 5 | 0 | 5 | 0 | 0 |
CP Common Shares repurchased (shares) | (1.6) | ||||
CP Common Shares repurchased | $ (468) | (21) | 0 | 0 | (447) |
Shares issued under stock option plan (shares) | 0.2 | ||||
Shares issued under stock option plan | $ (11) | (13) | (2) | 0 | 0 |
Ending balance (shares) at Mar. 31, 2020 | 135.6 | ||||
Ending balance at Mar. 31, 2020 | $ 6,955 | $ 1,985 | $ 51 | $ (2,480) | $ 7,399 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of presentation These unaudited interim consolidated financial statements of Canadian Pacific Railway Limited (“CP”, or “the Company”), expressed in Canadian dollars, reflect management’s estimates and assumptions that are necessary for their fair presentation in conformity with generally accepted accounting principles in the United States of America (“GAAP”). They do not include all disclosures required under GAAP for annual financial statements and should be read in conjunction with the 2019 annual consolidated financial statements and notes included in CP's 2019 Annual Report on Form 10-K. The accounting policies used are consistent with the accounting policies used in preparing the 2019 annual consolidated financial statements, except for the newly adopted accounting policy discussed in Note 2. CP's operations can be affected by seasonal fluctuations such as changes in customer demand and weather-related issues. This seasonality could impact quarter-over-quarter comparisons. In management’s opinion, the unaudited interim consolidated financial statements include all adjustments (consisting of normal and recurring adjustments) necessary to present fairly such information. Interim results are not necessarily indicative of the results expected for the fiscal year. |
Accounting Changes
Accounting Changes | 3 Months Ended |
Mar. 31, 2020 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Accounting Changes | Accounting changes Implemented in 2020 Financial Instruments - Credit Losses On January 1, 2020, the Company adopted the new Accounting Standards Update ("ASU") 2016-13, issued by the Financial Accounting Standards Board ("FASB"), and all related amendments under FASB Accounting Standards Codification ("ASC") Topic 326, Financial Instruments - Credit Losses. Using a modified retrospective approach, the Company recognized a cumulative-effect adjustment to its opening retained earnings balance in the period of adoption. Accordingly, comparative financial information has not been restated and continues to be reported under the accounting standards in effect for those periods. The impact of the adoption of ASC 326 as at January 1, 2020 was an increase in the allowance for credit losses of $1 million , with the offsets to "Deferred income taxes" and "Retained earnings" on the Company's Interim Consolidated Balance Sheet. See Note 8 for further discussion of the current period credit loss. Future Changes Simplification of Financial Disclosures about Guarantors In March 2020, the Securities and Exchange Commission issued amendments to the financial disclosure requirements for guarantors and issuers of guaranteed securities, to improve the quality of disclosure and reduce compliance burdens. Among other changes, the amendments replace the current requirement for condensed consolidating financial information (“CCFI”), as specified in Rule 3-10 of Regulation S-X, with summarized financial information and expanded qualitative non-financial disclosures about the guarantees, issuers, and guarantors. The amendments will be effective on January 4, 2021, with the option to comply in advance. The Company is currently assessing the impact of these amendments for its future CCFI disclosures. |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenues The following table disaggregates the Company’s revenues from contracts with customers by major source: For the three months ended March 31 (in millions of Canadian dollars) 2020 2019 Freight Grain $ 418 $ 380 Coal 150 158 Potash 112 114 Fertilizers and sulphur 70 57 Forest products 78 73 Energy, chemicals and plastics 491 315 Metals, minerals and consumer products 189 173 Automotive 87 76 Intermodal 405 380 Total freight revenues 2,000 1,726 Non-freight excluding leasing revenues 29 26 Revenues from contracts with customers 2,029 1,752 Leasing revenues 14 15 Total revenues $ 2,043 $ 1,767 Contract liabilities Contract liabilities represent payments received for performance obligations not yet satisfied and relate to deferred revenue and are presented as components of "Accounts payable and accrued liabilities" and "Other long-term liabilities" on the Company's Interim Consolidated Balance Sheets. The following table summarizes the changes in contract liabilities: For the three months ended March 31 (in millions of Canadian dollars) 2020 2019 Opening balance $ 146 $ 2 Revenue recognized that was included in the contract liability balance at the beginning of the period (37 ) (2 ) Increase due to consideration received, net of revenue recognized during the period 3 73 Closing balance $ 112 $ 73 |
Other (Income) Expense
Other (Income) Expense | 3 Months Ended |
Mar. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Other Income and Expenses | Other expense (income) For the three months ended March 31 (in millions of Canadian dollars) 2020 2019 Foreign exchange loss (gain) on debt and lease liabilities $ 215 $ (45 ) Other foreign exchange gains (5 ) (3 ) Other 1 1 Other expense (income) $ 211 $ (47 ) |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income taxes For the three months ended March 31 (in millions of Canadian dollars) 2020 2019 Current income tax expense $ 146 $ 101 Deferred income tax expense 39 38 Income tax expense $ 185 $ 139 The effective tax rate for the three months ended March 31, 2020 was 31.10% , compared to 24.24% for the same period of 2019 . For the three months ended March 31, 2020 , the effective tax rate excluding the discrete item of the foreign exchange ("FX") loss of $215 million on debt and lease liabilities was 25.00% . For the three months ended March 31, 2019 , the effective tax rate excluding the discrete item of the FX gain of $45 million on debt and lease liabilities was 25.75% |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings per share Basic earnings per share has been calculated using Net income for the period divided by the weighted-average number of shares outstanding during the period. The number of shares used in the earnings per share calculations are reconciled as follows: For the three months ended March 31 (in millions) 2020 2019 Weighted-average basic shares outstanding 136.7 140.1 Dilutive effect of stock options 0.5 0.4 Weighted-average diluted shares outstanding 137.2 140.5 For the three months ended March 31, 2020 , there were 0.1 million options excluded from the computation of diluted earnings per share because their effects were not dilutive ( three months ended March 31, 2019 - 0.2 million ). |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss ("AOCL") by Component | 3 Months Ended |
Mar. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Changes in Accumulated Other Comprehensive Loss (AOCL) by Component | Changes in Accumulated other comprehensive loss ("AOCL") by component For the three months ended March 31 (in millions of Canadian dollars) Foreign currency net of hedging activities (1) Derivatives and (1) Pension and post- (1) Total (1) Opening balance, January 1, 2020 $ 112 $ (54 ) $ (2,580 ) $ (2,522 ) Other comprehensive income before reclassifications 7 — — 7 Amounts reclassified from accumulated other comprehensive loss — 2 33 35 Net other comprehensive income 7 2 33 42 Closing balance, March 31, 2020 $ 119 $ (52 ) $ (2,547 ) $ (2,480 ) Opening balance, January 1, 2019 $ 113 $ (62 ) $ (2,094 ) $ (2,043 ) Other comprehensive loss before reclassifications — (1 ) (1 ) (2 ) Amounts reclassified from accumulated other comprehensive loss — 2 16 18 Net other comprehensive income — 1 15 16 Closing balance, March 31, 2019 $ 113 $ (61 ) $ (2,079 ) $ (2,027 ) (1) Amounts are presented net of tax. Amounts in Pension and post-retirement defined benefit plans reclassified from AOCL are as follows: For the three months ended March 31 (in millions of Canadian dollars) 2020 2019 Recognition of net actuarial loss (1) $ 45 $ 21 Income tax recovery (12 ) (5 ) Total net of income tax $ 33 $ 16 (1) Impacts " Other components of net periodic benefit recovery " on the Interim Consolidated Statements of Income. |
Accounts Receivable, Net
Accounts Receivable, Net | 3 Months Ended |
Mar. 31, 2020 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Accounts receivable, net | Accounts receivable, net Accounts receivable from customers are recognized initially at fair value and subsequently measured at amortized cost less allowance for expected credit losses. Losses on accounts receivable are estimated based on historical credit loss experience of receivables with similar risk characteristics. Historical loss experience is adjusted to reflect any management expectations that current or future conditions will differ from conditions that existed for the period over which historical information is evaluated. To determine expected credit losses, customer receivables are disaggregated by credit characteristics, type of customer service, customer line of business, and receivable aging. (in millions of Canadian dollars) Freight Non-freight Total Accounts receivable, as at March 31, 2020 $ 724 $ 202 $ 926 Allowance for credit losses Restated, as at January 1, 2020 (Note 2) (27 ) (16 ) (43 ) Current period credit loss provision, net — 2 2 Allowance for credit losses, as at March 31, 2020 (27 ) (14 ) (41 ) Total accounts receivable, net as at March 31, 2020 $ 697 $ 188 $ 885 Total accounts receivable, net restated, as at January 1, 2020 $ 610 $ 194 $ 804 Receivables are considered to be in default and are written off against the allowance for credit losses when it is probable that all remaining contractual payments due will not be collected in accordance with the terms of the customer contracts. Subsequent recoveries of amounts previously written off are credited to earnings in the period recovered. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt Issuance of long-term debt During the three months ended March 31, 2020, the Company issued U.S. $500 million 2.050% 10 -year unsecured notes due March 5, 2030 for net proceeds of approximately U.S. $495 million ( $662 million ) and $300 million 3.050% 30 -year unsecured notes due March 9, 2050 for net proceeds of approximately $296 million . These notes pay interest semi-annually and carry a negative pledge. Credit facility The Company's revolving credit facility consists of a U.S. $1.0 billion tranche maturing September 27, 2024 and a U.S. $300 million tranche maturing September 27, 2021. As at March 31, 2020, the Company had U.S. $100 million ( $142 million ) drawn from the U.S. $300 million tranche of its revolving credit facility (December 31, 2019 - undrawn). The interest rate on these borrowings is 1.875% . These borrowings are included in "Long-term debt maturing within one year" on the Company's Interim Consolidated Balance Sheets. Commercial paper program The Company has a commercial paper program which enables it to issue commercial paper up to a maximum aggregate principal amount of U.S. $1.0 billion in the form of unsecured promissory notes. This commercial paper program is backed by the U.S. $1.3 billion revolving credit facility. As at March 31, 2020 , the Company had total commercial paper borrowings of U.S. $20 million ( $28 million ), included in "Long-term debt maturing within one year" on the Company's Interim Consolidated Balance Sheets (December 31, 2019 - U.S. $397 million ). The weighted-average interest rate on these borrowings was 2.55% (December 31, 2019 - 2.03% ). The Company presents issuances and repayments of commercial paper, all of which have a maturity of less than 90 days, in the Company's Interim Consolidated Statements of Cash Flows on a net basis. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Financial instruments A. Fair values of financial instruments The Company categorizes its financial assets and liabilities measured at fair value into a three-level hierarchy established by GAAP that prioritizes those inputs to valuation techniques used to measure fair value based on the degree to which they are observable. The three levels of the fair value hierarchy are as follows: Level 1 inputs are quoted prices in active markets for identical assets and liabilities; Level 2 inputs, other than quoted prices included within Level 1, are observable for the asset or liability either directly or indirectly; and Level 3 inputs are not observable in the market. The carrying values of financial instruments equal or approximate their fair values with the exception of long-term debt as at: (in millions of Canadian dollars) March 31, 2020 December 31, 2019 Long-term debt (including current maturities): Fair value $ 11,607 $ 10,149 Carrying value 10,070 8,757 All long-term debt is classified as level 2. The estimated fair value of current and long-term borrowings has been determined based on market information where available, or by discounting future payments of principal and interest at estimated interest rates expected to be available to the Company at period end. B. Financial risk management The effect of the Company's net investment hedge for the three months ended March 31, 2020 was an unrealized FX loss of $555 million ( three months ended March 31, 2019 - unrealized FX gain of $120 million ) recognized in “Other comprehensive income”. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders' equity On December 17, 2019, the Company announced a normal course issuer bid ("NCIB"), commencing December 20, 2019, to purchase up to 4.80 million Common Shares in the open market for cancellation on or before December 19, 2020. As at March 31, 2020, the Company had purchased 1.75 million Common Shares for $568 million under this NCIB. On October 19, 2018, the Company announced a NCIB, commencing October 24, 2018, to purchase up to 5.68 million Common Shares for cancellation on or before October 23, 2019. The Company completed this NCIB on October 23, 2019. All purchases were made in accordance with the respective NCIB at prevailing market prices plus brokerage fees, or such other prices that were permitted by the Toronto Stock Exchange, with consideration allocated to share capital up to the average carrying amount of the shares and any excess allocated to "Retained earnings". The following table provides activities under the share repurchase programs: For the three months ended March 31 2020 2019 Number of Common Shares repurchased (1) 1,455,854 707,678 Weighted-average price per share (2) $ 321.71 $ 261.73 Amount of repurchase (in millions) (2) $ 468 $ 185 (1) Includes shares repurchased but not yet cancelled at end of period. (2) Includes brokerage fees. |
Pension and Other Benefits
Pension and Other Benefits | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
Pensions and Other Benefits | Pension and other benefits In the three months ended March 31, 2020 , the Company made contributions of $9 million ( three months ended March 31, 2019 - $11 million ) to its defined benefit pension plans. Net periodic benefit costs for defined benefit pension plans and other benefits included the following components: For the three months ended March 31 Pensions Other benefits (in millions of Canadian dollars) 2020 2019 2020 2019 Current service cost (benefits earned by employees) $ 35 $ 27 $ 3 $ 3 Other components of net periodic benefit (recovery) cost: Interest cost on benefit obligation 102 112 5 5 Expected return on fund assets (237 ) (237 ) — — Recognized net actuarial loss 44 21 1 2 Total other components of net periodic benefit (recovery) cost (91 ) (104 ) 6 7 Net periodic benefit (recovery) cost $ (56 ) $ (77 ) $ 9 $ 10 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-based compensation At March 31, 2020 , the Company had several stock-based compensation plans including stock option plans, various cash-settled liability plans, and an employee share purchase plan. These plans resulted in an expense for the three months ended March 31, 2020 of $11 million ( three months ended March 31, 2019 - an expense of $34 million ). Stock option plan In the three months ended March 31, 2020 , under CP’s stock option plans, the Company issued 212,020 options at the weighted-average price of $351.37 per share, based on the closing price on the grant date. Pursuant to the employee plan, these options may be exercised upon vesting, which is between 12 months and 48 months after the grant date, and will expire after seven years . Under the fair value method, the fair value of the stock options at grant date was approximately $15 million . The weighted-average fair value assumptions were approximately: For the three months ended March 31, 2020 Expected option life (years) (1) 4.75 Risk-free interest rate (2) 1.31% Expected stock price volatility (3) 23.05% Expected annual dividends per share (4) $3.3200 Expected forfeiture rate (5) 4.37% Weighted-average grant date fair value per option granted during the period $68.95 (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 three months ended March 31, 2020 , the Company issued 97,205 Performance Share Units ("PSUs") with a grant date fair value of approximately $34 million and 10,029 Performance Deferred Share Units ("PDSUs") with a grant date fair value, including value of expected future matching units, of approximately $4 million . PSUs and PDSUs attract dividend equivalents in the form of additional units based on dividends paid on the Company’s Common Shares, and vest approximately three years after the grant date, contingent upon CP’s performance ("performance factor"). The fair value of these PSUs and PDSUs is measured periodically until settlement using a lattice-based valuation model.Vested PSUs are settled in cash. Vested PDSUs are settled in cash pursuant to the Deferred Share Unit ("DSU") Plan and are eligible for a 25% match if the holder has not exceeded their share ownership requirements, and are paid out only when the holder ceases their employment with CP. The performance period for PSUs and PDSUs issued in the three months ended March 31, 2020 is January 1, 2020 to December 31, 2022 and the performance factors are Return on Invested Capital ("ROIC"), Total Shareholder Return ("TSR") compared to the S&P/TSX 60 Index, and TSR compared to Class I railways. The performance period for PSUs issued in 2017 was January 1, 2017 to December 31, 2019, and the performance factors for these PSUs were ROIC, TSR compared to the S&P/TSX Capped Industrial Index, and TSR compared to S&P 1500 Road and Rail Index. The resulting payout was 193% of the outstanding units multiplied by the Company's average share price calculated using the last 30 trading days preceding December 31, 2019. In the first quarter of 2020, payouts occurred on the total outstanding awards, including dividends reinvested, totalling $76 million on 121,225 outstanding awards. Deferred share unit plan During the three months ended March 31, 2020 , the Company granted 13,134 DSUs with a grant date fair value of approximately $4 million . DSUs vest over various periods of up to 48 months and are only redeemable for a specified period after employment is terminated. The expense for DSUs is recognized over the vesting period for both the initial subscription price and the change in value between reporting periods. |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies In the normal course of its operations, the Company becomes involved in various legal actions, including claims relating to injuries and damage to property. The Company maintains provisions it considers to be adequate for such actions. While the final outcome with respect to actions outstanding or pending at March 31, 2020 cannot be predicted with certainty, it is the opinion of management that their resolution will not have a material adverse effect on the Company’s business, financial position or results of operations. Legal proceedings related to Lac-Mégantic rail accident On July 6, 2013, a train carrying petroleum crude oil operated by Montréal Maine and Atlantic Railway (“MMAR”) or a subsidiary, Montréal Maine & Atlantic Canada Co. (“MMAC” and collectively the “MMA Group”), derailed in Lac-Mégantic, Québec. The derailment occurred on a section of railway owned and operated by the MMA Group and while the MMA Group exclusively controlled the train. Following the derailment, MMAC sought court protection in Canada under the Companies’ Creditors Arrangement Act and MMAR filed for bankruptcy in the U.S. Plans of arrangement were approved in both Canada and the U.S. (the “Plans”), providing for the distribution of approximately $440 million amongst those claiming derailment damages. A number of legal proceedings, set out below, were commenced in Canada and the U.S. against CP and others: (1) Québec's Minister of Sustainable Development, Environment, Wildlife and Parks ordered various parties, including CP, to remediate the derailment site (the "Cleanup Order") and served CP with a Notice of Claim for $95 million for those costs. CP appealed the Cleanup Order and contested the Notice of Claim with the Administrative Tribunal of Québec. These proceedings are stayed pending determination of the Attorney General of Québec (“AGQ”) action (paragraph 2 below). (2) The AGQ sued CP in the Québec Superior Court claiming $409 million in damages, which was amended and reduced to $315 million (the “AGQ Action”). The AGQ Action alleges that: (i) CP was responsible for the petroleum crude oil from its point of origin until its delivery to Irving Oil Ltd.; and (ii) CP is vicariously liable for the acts and omissions of the MMA Group. (3) A class action in the Québec Superior Court on behalf of persons and entities residing in, owning or leasing property in, operating a business in, or physically present in Lac-Mégantic at the time of the derailment was certified against CP on May 8, 2015 (the "Class Action"). Other defendants including MMAC and Mr. Thomas Harding ("Harding") were added to the Class Action on January 25, 2017. The Class Action seeks unquantified damages, including for wrongful death, personal injury, property damage, and economic loss. (4) Eight subrogated insurers sued CP in the Québec Superior Court claiming approximately $16 million in damages, which was amended and reduced to approximately $15 million (the “Promutuel Action”), and two additional subrogated insurers sued CP claiming approximately $3 million in damages (the “Royal Action”). Both actions contain similar allegations as the AGQ Action. The actions do not identify the subrogated parties. As such, the extent of any overlap between the damages claimed in these actions and under the Plans is unclear. The Royal Action is stayed pending determination of the consolidated proceedings described below. On December 11, 2017, the AGQ Action, the Class Action and the Promutuel Action were consolidated. These consolidated claims are currently scheduled for a joint liability trial commencing September 28, 2020, followed by a damages trial, if necessary. (5) Forty-eight plaintiffs (all individual claims joined in one action) sued CP, MMAC, and Harding in the Québec Superior Court claiming approximately $5 million in damages for economic loss and pain and suffering, and asserting similar allegations as in the Class Action and the AGQ Action. The majority of the plaintiffs opted-out of the Class Action and all but two are also plaintiffs in litigation against CP, described in paragraph 7 below. This action is stayed pending determination of the consolidated claims described above. (6) The MMAR U.S. bankruptcy estate representative commenced an action against CP in November 2014 in the Maine Bankruptcy Court claiming that CP failed to abide by certain regulations and seeking damages for MMAR’s loss in business value (as yet unquantified). This action asserts that CP knew or ought to have known that the shipper misclassified the petroleum crude oil and therefore should have refused to transport it. (7) The class and mass tort action commenced against CP in June 2015 in Texas (on behalf of Lac-Mégantic residents and wrongful death representatives) and the wrongful death and personal injury actions commenced against CP in June 2015 in Illinois and Maine, were all transferred and consolidated in Federal District Court in Maine (the “Maine Actions”). The Maine Actions allege that CP negligently misclassified and improperly packaged the petroleum crude oil. On CP’s motion, the Maine Actions were dismissed. The plaintiffs are appealing the dismissal decision, which may be heard in July 2020. (8) The trustee for the wrongful death trust commenced Carmack Amendment claims against CP in North Dakota Federal Court, seeking to recover approximately U.S. $6 million for damaged rail cars and lost crude and reimbursement for the settlement paid by the consignor and the consignee under the Plans (alleged to be U.S. $110 million and U.S. $60 million , respectively). This action is scheduled for trial in August 2020. At this stage of the proceedings, any potential responsibility and the quantum of potential losses cannot be determined. Nevertheless, CP denies liability and is vigorously defending these proceedings. Environmental liabilities Environmental remediation accruals, recorded on an undiscounted basis unless a reliable, determinable estimate as to an amount and timing of costs can be established, cover site-specific remediation programs. The accruals for environmental remediation represent CP’s best estimate of its probable future obligation and include both asserted and unasserted claims, without reduction for anticipated recoveries from third parties. Although the recorded accruals include CP’s best estimate of all probable costs, CP’s total environmental remediation costs cannot be predicted with certainty. Accruals for environmental remediation may change from time to time as new information about previously untested sites becomes known, and as environmental laws and regulations evolve and advances are made in environmental remediation technology. The accruals may also vary as the courts decide legal proceedings against outside parties responsible for contamination. These potential charges, which cannot be quantified at this time, may materially affect income in the particular period in which a charge is recognized. Costs related to existing, but as yet unknown, or future contamination will be accrued in the period in which they become probable and reasonably estimable. The expense included in “Purchased services and other” for the three months ended March 31, 2020 was $1 million ( three months ended March 31, 2019 - $1 million ). Provisions for environmental remediation costs are recorded in “Other long-term liabilities”, except for the current portion which is recorded in “Accounts payable and accrued liabilities”. The total amount provided at March 31, 2020 was $83 million ( December 31, 2019 - $77 million ). Payments are expected to be made over 10 years through 2029. |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidating Financial Information | Condensed consolidating financial information Canadian Pacific Railway Company, a 100%-owned subsidiary of Canadian Pacific Railway Limited (“CPRL”), is the issuer of certain debt securities, which are fully and unconditionally guaranteed by CPRL. The following tables present condensed consolidating financial information (“CCFI”) in accordance with Rule 3-10(c) of Regulation S-X. Investments in subsidiaries are accounted for under the equity method when presenting the CCFI. The tables include all adjustments necessary to reconcile the CCFI on a consolidated basis to CPRL’s consolidated financial statements for the periods presented. Interim Condensed Consolidating Statements of Income For the three months ended March 31, 2020 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Revenues Freight $ — $ 1,457 $ 543 $ — $ 2,000 Non-freight — 33 93 (83 ) 43 Total revenues — 1,490 636 (83 ) 2,043 Operating expenses Compensation and benefits — 275 120 3 398 Fuel — 167 45 — 212 Materials — 41 16 2 59 Equipment rents — 44 (5 ) (3 ) 36 Depreciation and amortization — 115 77 — 192 Purchased services and other — 243 154 (85 ) 312 Total operating expenses — 885 407 (83 ) 1,209 Operating income — 605 229 — 834 Less: Other expense (income) 21 208 (18 ) — 211 Other components of net periodic benefit (recovery) expense — (87 ) 2 — (85 ) Net interest expense (income) — 122 (8 ) — 114 (Loss) income before income tax expense and equity in net earnings of subsidiaries (21 ) 362 253 — 594 Less: Income tax expense — 134 51 — 185 Add: Equity in net earnings of subsidiaries 430 202 — (632 ) — Net income $ 409 $ 430 $ 202 $ (632 ) $ 409 Interim Condensed Consolidating Statements of Income For the three months ended March 31, 2019 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Revenues Freight $ — $ 1,244 $ 482 $ — $ 1,726 Non-freight — 29 114 (102 ) 41 Total revenues — 1,273 596 (102 ) 1,767 Operating expenses Compensation and benefits — 274 130 2 406 Fuel — 165 44 — 209 Materials — 38 15 4 57 Equipment rents — 33 2 — 35 Depreciation and amortization — 96 64 — 160 Purchased services and other — 278 187 (108 ) 357 Total operating expenses — 884 442 (102 ) 1,224 Operating income — 389 154 — 543 Less: Other (income) expense (5 ) (43 ) 1 — (47 ) Other components of net periodic benefit (recovery) expense — (98 ) 1 — (97 ) Net interest (income) expense (1 ) 122 (7 ) — 114 Income before income tax expense and equity in net earnings of subsidiaries 6 408 159 — 573 Less: Income tax expense — 104 35 — 139 Add: Equity in net earnings of subsidiaries 428 124 — (552 ) — Net income $ 434 $ 428 $ 124 $ (552 ) $ 434 Interim Condensed Consolidating Statements of Comprehensive Income For the three months ended March 31, 2020 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Net income $ 409 $ 430 $ 202 $ (632 ) $ 409 Net (loss) gain in foreign currency translation adjustments, net of hedging activities — (555 ) 490 — (65 ) Change in derivatives designated as cash flow — 2 — — 2 Change in pension and post-retirement defined — 44 1 — 45 Other comprehensive (loss) income before income taxes — (509 ) 491 — (18 ) Income tax recovery on above items — 60 — — 60 Equity accounted investments 42 491 — (533 ) — Other comprehensive income 42 42 491 (533 ) 42 Comprehensive income $ 451 $ 472 $ 693 $ (1,165 ) $ 451 Interim Condensed Consolidating Statements of Comprehensive Income For the three months ended March 31, 2019 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Net income $ 434 $ 428 $ 124 $ (552 ) $ 434 Net gain (loss) in foreign currency translation adjustments, net of hedging activities — 120 (104 ) — 16 Change in derivatives designated as cash flow — 2 — — 2 Change in pension and post-retirement defined — 19 1 — 20 Other comprehensive income (loss) before income taxes — 141 (103 ) — 38 Income tax expense on above items — (22 ) — — (22 ) Equity accounted investments 16 (103 ) — 87 — Other comprehensive income (loss) 16 16 (103 ) 87 16 Comprehensive income $ 450 $ 444 $ 21 $ (465 ) $ 450 Interim Condensed Consolidating Balance Sheets As at March 31, 2020 (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 $ — $ 119 $ 128 $ — $ 247 Accounts receivable, net — 670 215 — 885 Accounts receivable, intercompany 172 249 168 (589 ) — Short-term advances to affiliates — 1,891 3,874 (5,765 ) — Materials and supplies — 134 43 — 177 Other current assets — 54 44 — 98 172 3,117 4,472 (6,354 ) 1,407 Long-term advances to affiliates 1,090 8 92 (1,190 ) — Investments — 29 340 — 369 Investments in subsidiaries 10,886 11,861 — (22,747 ) — Properties — 10,446 9,454 — 19,900 Goodwill and intangible assets — — 223 — 223 Pension asset — 1,111 — — 1,111 Other assets — 179 299 — 478 Deferred income taxes 5 — — (5 ) — Total assets $ 12,153 $ 26,751 $ 14,880 $ (30,296 ) $ 23,488 Liabilities and shareholders’ equity Current liabilities Accounts payable and accrued liabilities $ 113 $ 1,025 $ 390 $ — $ 1,528 Accounts payable, intercompany 7 333 249 (589 ) — Short-term advances from affiliates 5,078 664 23 (5,765 ) — Long-term debt maturing within one year — 203 63 — 266 5,198 2,225 725 (6,354 ) 1,794 Pension and other benefit liabilities — 695 95 — 790 Long-term advances from affiliates — 1,181 9 (1,190 ) — Other long-term liabilities — 180 361 — 541 Long-term debt — 9,804 — — 9,804 Deferred income taxes — 1,780 1,829 (5 ) 3,604 Total liabilities 5,198 15,865 3,019 (7,549 ) 16,533 Shareholders’ equity Share capital 1,985 538 4,610 (5,148 ) 1,985 Additional paid-in capital 51 411 267 (678 ) 51 Accumulated other comprehensive (loss) income (2,480 ) (2,480 ) 1,072 1,408 (2,480 ) Retained earnings 7,399 12,417 5,912 (18,329 ) 7,399 6,955 10,886 11,861 (22,747 ) 6,955 Total liabilities and shareholders’ equity $ 12,153 $ 26,751 $ 14,880 $ (30,296 ) $ 23,488 Condensed Consolidating Balance Sheets As at December 31, 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 $ — $ 37 $ 96 $ — $ 133 Accounts receivable, net 24 597 184 — 805 Accounts receivable, intercompany 164 313 249 (726 ) — Short-term advances to affiliates — 1,387 3,700 (5,087 ) — Materials and supplies — 144 38 — 182 Other current assets — 41 49 — 90 188 2,519 4,316 (5,813 ) 1,210 Long-term advances to affiliates 1,090 7 84 (1,181 ) — Investments — 32 309 — 341 Investments in subsidiaries 10,522 11,165 — (21,687 ) — Properties — 10,287 8,869 — 19,156 Goodwill and intangible assets — — 206 — 206 Pension asset — 1,003 — — 1,003 Other assets — 173 278 — 451 Deferred income taxes 4 — — (4 ) — Total assets $ 11,804 $ 25,186 $ 14,062 $ (28,685 ) $ 22,367 Liabilities and shareholders’ equity Current liabilities Accounts payable and accrued liabilities $ 146 $ 1,189 $ 358 $ — $ 1,693 Accounts payable, intercompany 6 402 318 (726 ) — Short-term advances from affiliates 4,583 490 14 (5,087 ) — Long-term debt maturing within one year — 548 51 — 599 4,735 2,629 741 (5,813 ) 2,292 Pension and other benefit liabilities — 698 87 — 785 Long-term advances from affiliates — 1,174 7 (1,181 ) — Other long-term liabilities — 206 356 — 562 Long-term debt — 8,145 13 — 8,158 Deferred income taxes — 1,812 1,693 (4 ) 3,501 Total liabilities 4,735 14,664 2,897 (6,998 ) 15,298 Shareholders’ equity Share capital 1,993 538 4,610 (5,148 ) 1,993 Additional paid-in capital 48 406 265 (671 ) 48 Accumulated other comprehensive (loss) income (2,522 ) (2,522 ) 581 1,941 (2,522 ) Retained earnings 7,550 12,100 5,709 (17,809 ) 7,550 7,069 10,522 11,165 (21,687 ) 7,069 Total liabilities and shareholders’ equity $ 11,804 $ 25,186 $ 14,062 $ (28,685 ) $ 22,367 Interim Condensed Consolidating Statements of Cash Flows For the three months ended March 31, 2020 (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 $ 94 $ 240 $ 269 $ (114 ) $ 489 Investing activities Additions to properties — (271 ) (84 ) — (355 ) Proceeds from sale of properties and other assets — 1 1 — 2 Advances to affiliates — (496 ) (175 ) 671 — Other — (8 ) (1 ) — (9 ) Cash used in investing activities — (774 ) (259 ) 671 (362 ) Financing activities Dividends paid (114 ) (114 ) — 114 (114 ) Issuance of CP Common Shares 24 — — — 24 Purchase of CP Common Shares (501 ) — — — (501 ) Issuance of long-term debt, excluding commercial paper — 959 — — 959 Repayment of long-term debt, excluding commercial paper — (6 ) (9 ) — (15 ) Net repayment of commercial paper — (553 ) — — (553 ) Increase in short-term borrowings — 145 — — 145 Advances from affiliates 486 175 10 (671 ) — Other 11 — — — 11 Cash (used in) provided by financing activities (94 ) 606 1 (557 ) (44 ) Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents — 10 21 — 31 Cash position Increase in cash and cash equivalents — 82 32 — 114 Cash and cash equivalents at beginning of period — 37 96 — 133 Cash and cash equivalents at end of period $ — $ 119 $ 128 $ — $ 247 Interim Condensed Consolidating Statements of Cash Flows For the three months ended March 31, 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 $ 687 $ 198 $ 219 $ (691 ) $ 413 Investing activities Additions to properties — (141 ) (83 ) — (224 ) Proceeds from sale of properties and other assets — 4 2 — 6 Advances to affiliates — (250 ) (30 ) 280 — Repayment of advances to affiliates — 643 — (643 ) — Other — — (1 ) — (1 ) Cash provided by (used in) investing activities — 256 (112 ) (363 ) (219 ) Financing activities Dividends paid (91 ) (691 ) — 691 (91 ) Issuance of CP Common Shares 4 — — — 4 Purchase of CP Common Shares (207 ) — — — (207 ) Issuance of long-term debt, excluding commercial paper — 397 — — 397 Repayment of long-term debt, excluding commercial paper — (5 ) — — (5 ) Advances from affiliates 250 30 — (280 ) — Repayment of advances from affiliates (643 ) — — 643 — Cash (used in) provided by financing activities (687 ) (269 ) — 1,054 98 Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents — (1 ) — — (1 ) Cash position Increase in cash and cash equivalents — 184 107 — 291 Cash and cash equivalents at beginning of period — 42 19 — 61 Cash and cash equivalents at end of period $ — $ 226 $ 126 $ — $ 352 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation | These unaudited interim consolidated financial statements of Canadian Pacific Railway Limited (“CP”, or “the Company”), expressed in Canadian dollars, reflect management’s estimates and assumptions that are necessary for their fair presentation in conformity with generally accepted accounting principles in the United States of America (“GAAP”). They do not include all disclosures required under GAAP for annual financial statements and should be read in conjunction with the 2019 annual consolidated financial statements and notes included in CP's 2019 Annual Report on Form 10-K. The accounting policies used are consistent with the accounting policies used in preparing the 2019 annual consolidated financial statements, except for the newly adopted accounting policy discussed in Note 2. CP's operations can be affected by seasonal fluctuations such as changes in customer demand and weather-related issues. This seasonality could impact quarter-over-quarter comparisons. In management’s opinion, the unaudited interim consolidated financial statements include all adjustments (consisting of normal and recurring adjustments) necessary to present fairly such information. Interim results are not necessarily indicative of the results expected for the fiscal year. |
Accounting Changes (Policies)
Accounting Changes (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Accounting Changes | Implemented in 2020 Financial Instruments - Credit Losses On January 1, 2020, the Company adopted the new Accounting Standards Update ("ASU") 2016-13, issued by the Financial Accounting Standards Board ("FASB"), and all related amendments under FASB Accounting Standards Codification ("ASC") Topic 326, Financial Instruments - Credit Losses. Using a modified retrospective approach, the Company recognized a cumulative-effect adjustment to its opening retained earnings balance in the period of adoption. Accordingly, comparative financial information has not been restated and continues to be reported under the accounting standards in effect for those periods. The impact of the adoption of ASC 326 as at January 1, 2020 was an increase in the allowance for credit losses of $1 million , with the offsets to "Deferred income taxes" and "Retained earnings" on the Company's Interim Consolidated Balance Sheet. See Note 8 for further discussion of the current period credit loss. Future Changes Simplification of Financial Disclosures about Guarantors In March 2020, the Securities and Exchange Commission issued amendments to the financial disclosure requirements for guarantors and issuers of guaranteed securities, to improve the quality of disclosure and reduce compliance burdens. Among other changes, the amendments replace the current requirement for condensed consolidating financial information (“CCFI”), as specified in Rule 3-10 of Regulation S-X, with summarized financial information and expanded qualitative non-financial disclosures about the guarantees, issuers, and guarantors. The amendments will be effective on January 4, 2021, with the option to comply in advance. The Company is currently assessing the impact of these amendments for its future CCFI disclosures. |
Accounts Receivable, Net (Polic
Accounts Receivable, Net (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Credit Losses | Accounts receivable from customers are recognized initially at fair value and subsequently measured at amortized cost less allowance for expected credit losses. Losses on accounts receivable are estimated based on historical credit loss experience of receivables with similar risk characteristics. Historical loss experience is adjusted to reflect any management expectations that current or future conditions will differ from conditions that existed for the period over which historical information is evaluated. To determine expected credit losses, customer receivables are disaggregated by credit characteristics, type of customer service, customer line of business, and receivable aging. |
Accounts Receivable | Receivables are considered to be in default and are written off against the allowance for credit losses when it is probable that all remaining contractual payments due will not be collected in accordance with the terms of the customer contracts. Subsequent recoveries of amounts previously written off are credited to earnings in the period recovered. |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table disaggregates the Company’s revenues from contracts with customers by major source: For the three months ended March 31 (in millions of Canadian dollars) 2020 2019 Freight Grain $ 418 $ 380 Coal 150 158 Potash 112 114 Fertilizers and sulphur 70 57 Forest products 78 73 Energy, chemicals and plastics 491 315 Metals, minerals and consumer products 189 173 Automotive 87 76 Intermodal 405 380 Total freight revenues 2,000 1,726 Non-freight excluding leasing revenues 29 26 Revenues from contracts with customers 2,029 1,752 Leasing revenues 14 15 Total revenues $ 2,043 $ 1,767 |
Changes in Contract Liabilities | The following table summarizes the changes in contract liabilities: For the three months ended March 31 (in millions of Canadian dollars) 2020 2019 Opening balance $ 146 $ 2 Revenue recognized that was included in the contract liability balance at the beginning of the period (37 ) (2 ) Increase due to consideration received, net of revenue recognized during the period 3 73 Closing balance $ 112 $ 73 |
Other (Income) Expense (Tables)
Other (Income) Expense (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Other Income and Expenses | For the three months ended March 31 (in millions of Canadian dollars) 2020 2019 Foreign exchange loss (gain) on debt and lease liabilities $ 215 $ (45 ) Other foreign exchange gains (5 ) (3 ) Other 1 1 Other expense (income) $ 211 $ (47 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Tax Expense | For the three months ended March 31 (in millions of Canadian dollars) 2020 2019 Current income tax expense $ 146 $ 101 Deferred income tax expense 39 38 Income tax expense $ 185 $ 139 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Shares Used in the Earnings Per Share Calculation | The number of shares used in the earnings per share calculations are reconciled as follows: For the three months ended March 31 (in millions) 2020 2019 Weighted-average basic shares outstanding 136.7 140.1 Dilutive effect of stock options 0.5 0.4 Weighted-average diluted shares outstanding 137.2 140.5 |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Loss ("AOCL") by Component (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Changes in Accumulated Other Comprehensive Loss (AOCL) by Component | For the three months ended March 31 (in millions of Canadian dollars) Foreign currency net of hedging activities (1) Derivatives and (1) Pension and post- (1) Total (1) Opening balance, January 1, 2020 $ 112 $ (54 ) $ (2,580 ) $ (2,522 ) Other comprehensive income before reclassifications 7 — — 7 Amounts reclassified from accumulated other comprehensive loss — 2 33 35 Net other comprehensive income 7 2 33 42 Closing balance, March 31, 2020 $ 119 $ (52 ) $ (2,547 ) $ (2,480 ) Opening balance, January 1, 2019 $ 113 $ (62 ) $ (2,094 ) $ (2,043 ) Other comprehensive loss before reclassifications — (1 ) (1 ) (2 ) Amounts reclassified from accumulated other comprehensive loss — 2 16 18 Net other comprehensive income — 1 15 16 Closing balance, March 31, 2019 $ 113 $ (61 ) $ (2,079 ) $ (2,027 ) (1) Amounts are presented net of tax. |
Amounts in Pension and Post-retirement Defined Benefit Plans Reclassified from AOCL | Amounts in Pension and post-retirement defined benefit plans reclassified from AOCL are as follows: For the three months ended March 31 (in millions of Canadian dollars) 2020 2019 Recognition of net actuarial loss (1) $ 45 $ 21 Income tax recovery (12 ) (5 ) Total net of income tax $ 33 $ 16 (1) Impacts " Other components of net periodic benefit recovery " on the Interim Consolidated Statements of Income. |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Accounts Receivable, Allowance for Credit Loss | (in millions of Canadian dollars) Freight Non-freight Total Accounts receivable, as at March 31, 2020 $ 724 $ 202 $ 926 Allowance for credit losses Restated, as at January 1, 2020 (Note 2) (27 ) (16 ) (43 ) Current period credit loss provision, net — 2 2 Allowance for credit losses, as at March 31, 2020 (27 ) (14 ) (41 ) Total accounts receivable, net as at March 31, 2020 $ 697 $ 188 $ 885 Total accounts receivable, net restated, as at January 1, 2020 $ 610 $ 194 $ 804 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value and Carrying Value of Long-term Debt | The carrying values of financial instruments equal or approximate their fair values with the exception of long-term debt as at: (in millions of Canadian dollars) March 31, 2020 December 31, 2019 Long-term debt (including current maturities): Fair value $ 11,607 $ 10,149 Carrying value 10,070 8,757 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Activities Under Share Repurchase Program | The following table provides activities under the share repurchase programs: For the three months ended March 31 2020 2019 Number of Common Shares repurchased (1) 1,455,854 707,678 Weighted-average price per share (2) $ 321.71 $ 261.73 Amount of repurchase (in millions) (2) $ 468 $ 185 (1) Includes shares repurchased but not yet cancelled at end of period. (2) Includes brokerage fees. |
Pension and Other Benefits (Tab
Pension and Other Benefits (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
Net Periodic Benefit Cost for Defined Benefit Pension Plans and Other Benefits | Net periodic benefit costs for defined benefit pension plans and other benefits included the following components: For the three months ended March 31 Pensions Other benefits (in millions of Canadian dollars) 2020 2019 2020 2019 Current service cost (benefits earned by employees) $ 35 $ 27 $ 3 $ 3 Other components of net periodic benefit (recovery) cost: Interest cost on benefit obligation 102 112 5 5 Expected return on fund assets (237 ) (237 ) — — Recognized net actuarial loss 44 21 1 2 Total other components of net periodic benefit (recovery) cost (91 ) (104 ) 6 7 Net periodic benefit (recovery) cost $ (56 ) $ (77 ) $ 9 $ 10 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Weighted-Average Fair Value Assumptions | The weighted-average fair value assumptions were approximately: For the three months ended March 31, 2020 Expected option life (years) (1) 4.75 Risk-free interest rate (2) 1.31% Expected stock price volatility (3) 23.05% Expected annual dividends per share (4) $3.3200 Expected forfeiture rate (5) 4.37% Weighted-average grant date fair value per option granted during the period $68.95 (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. |
Condensed Consolidating Finan_2
Condensed Consolidating Financial Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Revenues Freight $ — $ 1,457 $ 543 $ — $ 2,000 Non-freight — 33 93 (83 ) 43 Total revenues — 1,490 636 (83 ) 2,043 Operating expenses Compensation and benefits — 275 120 3 398 Fuel — 167 45 — 212 Materials — 41 16 2 59 Equipment rents — 44 (5 ) (3 ) 36 Depreciation and amortization — 115 77 — 192 Purchased services and other — 243 154 (85 ) 312 Total operating expenses — 885 407 (83 ) 1,209 Operating income — 605 229 — 834 Less: Other expense (income) 21 208 (18 ) — 211 Other components of net periodic benefit (recovery) expense — (87 ) 2 — (85 ) Net interest expense (income) — 122 (8 ) — 114 (Loss) income before income tax expense and equity in net earnings of subsidiaries (21 ) 362 253 — 594 Less: Income tax expense — 134 51 — 185 Add: Equity in net earnings of subsidiaries 430 202 — (632 ) — Net income $ 409 $ 430 $ 202 $ (632 ) $ 409 Interim Condensed Consolidating Statements of Income For the three months ended March 31, 2019 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Revenues Freight $ — $ 1,244 $ 482 $ — $ 1,726 Non-freight — 29 114 (102 ) 41 Total revenues — 1,273 596 (102 ) 1,767 Operating expenses Compensation and benefits — 274 130 2 406 Fuel — 165 44 — 209 Materials — 38 15 4 57 Equipment rents — 33 2 — 35 Depreciation and amortization — 96 64 — 160 Purchased services and other — 278 187 (108 ) 357 Total operating expenses — 884 442 (102 ) 1,224 Operating income — 389 154 — 543 Less: Other (income) expense (5 ) (43 ) 1 — (47 ) Other components of net periodic benefit (recovery) expense — (98 ) 1 — (97 ) Net interest (income) expense (1 ) 122 (7 ) — 114 Income before income tax expense and equity in net earnings of subsidiaries 6 408 159 — 573 Less: Income tax expense — 104 35 — 139 Add: Equity in net earnings of subsidiaries 428 124 — (552 ) — Net income $ 434 $ 428 $ 124 $ (552 ) $ 434 |
Interim Condensed Consolidating Statements of Comprehensive Income | Interim Condensed Consolidating Statements of Comprehensive Income For the three months ended March 31, 2020 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Net income $ 409 $ 430 $ 202 $ (632 ) $ 409 Net (loss) gain in foreign currency translation adjustments, net of hedging activities — (555 ) 490 — (65 ) Change in derivatives designated as cash flow — 2 — — 2 Change in pension and post-retirement defined — 44 1 — 45 Other comprehensive (loss) income before income taxes — (509 ) 491 — (18 ) Income tax recovery on above items — 60 — — 60 Equity accounted investments 42 491 — (533 ) — Other comprehensive income 42 42 491 (533 ) 42 Comprehensive income $ 451 $ 472 $ 693 $ (1,165 ) $ 451 Interim Condensed Consolidating Statements of Comprehensive Income For the three months ended March 31, 2019 (in millions of Canadian dollars) CPRL (Parent Guarantor) CPRC (Subsidiary Issuer) Non-Guarantor Subsidiaries Consolidating Adjustments and Eliminations CPRL Consolidated Net income $ 434 $ 428 $ 124 $ (552 ) $ 434 Net gain (loss) in foreign currency translation adjustments, net of hedging activities — 120 (104 ) — 16 Change in derivatives designated as cash flow — 2 — — 2 Change in pension and post-retirement defined — 19 1 — 20 Other comprehensive income (loss) before income taxes — 141 (103 ) — 38 Income tax expense on above items — (22 ) — — (22 ) Equity accounted investments 16 (103 ) — 87 — Other comprehensive income (loss) 16 16 (103 ) 87 16 Comprehensive income $ 450 $ 444 $ 21 $ (465 ) $ 450 |
Interim Condensed Consolidating Balance Sheets | Interim Condensed Consolidating Balance Sheets As at March 31, 2020 (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 $ — $ 119 $ 128 $ — $ 247 Accounts receivable, net — 670 215 — 885 Accounts receivable, intercompany 172 249 168 (589 ) — Short-term advances to affiliates — 1,891 3,874 (5,765 ) — Materials and supplies — 134 43 — 177 Other current assets — 54 44 — 98 172 3,117 4,472 (6,354 ) 1,407 Long-term advances to affiliates 1,090 8 92 (1,190 ) — Investments — 29 340 — 369 Investments in subsidiaries 10,886 11,861 — (22,747 ) — Properties — 10,446 9,454 — 19,900 Goodwill and intangible assets — — 223 — 223 Pension asset — 1,111 — — 1,111 Other assets — 179 299 — 478 Deferred income taxes 5 — — (5 ) — Total assets $ 12,153 $ 26,751 $ 14,880 $ (30,296 ) $ 23,488 Liabilities and shareholders’ equity Current liabilities Accounts payable and accrued liabilities $ 113 $ 1,025 $ 390 $ — $ 1,528 Accounts payable, intercompany 7 333 249 (589 ) — Short-term advances from affiliates 5,078 664 23 (5,765 ) — Long-term debt maturing within one year — 203 63 — 266 5,198 2,225 725 (6,354 ) 1,794 Pension and other benefit liabilities — 695 95 — 790 Long-term advances from affiliates — 1,181 9 (1,190 ) — Other long-term liabilities — 180 361 — 541 Long-term debt — 9,804 — — 9,804 Deferred income taxes — 1,780 1,829 (5 ) 3,604 Total liabilities 5,198 15,865 3,019 (7,549 ) 16,533 Shareholders’ equity Share capital 1,985 538 4,610 (5,148 ) 1,985 Additional paid-in capital 51 411 267 (678 ) 51 Accumulated other comprehensive (loss) income (2,480 ) (2,480 ) 1,072 1,408 (2,480 ) Retained earnings 7,399 12,417 5,912 (18,329 ) 7,399 6,955 10,886 11,861 (22,747 ) 6,955 Total liabilities and shareholders’ equity $ 12,153 $ 26,751 $ 14,880 $ (30,296 ) $ 23,488 Condensed Consolidating Balance Sheets As at December 31, 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 $ — $ 37 $ 96 $ — $ 133 Accounts receivable, net 24 597 184 — 805 Accounts receivable, intercompany 164 313 249 (726 ) — Short-term advances to affiliates — 1,387 3,700 (5,087 ) — Materials and supplies — 144 38 — 182 Other current assets — 41 49 — 90 188 2,519 4,316 (5,813 ) 1,210 Long-term advances to affiliates 1,090 7 84 (1,181 ) — Investments — 32 309 — 341 Investments in subsidiaries 10,522 11,165 — (21,687 ) — Properties — 10,287 8,869 — 19,156 Goodwill and intangible assets — — 206 — 206 Pension asset — 1,003 — — 1,003 Other assets — 173 278 — 451 Deferred income taxes 4 — — (4 ) — Total assets $ 11,804 $ 25,186 $ 14,062 $ (28,685 ) $ 22,367 Liabilities and shareholders’ equity Current liabilities Accounts payable and accrued liabilities $ 146 $ 1,189 $ 358 $ — $ 1,693 Accounts payable, intercompany 6 402 318 (726 ) — Short-term advances from affiliates 4,583 490 14 (5,087 ) — Long-term debt maturing within one year — 548 51 — 599 4,735 2,629 741 (5,813 ) 2,292 Pension and other benefit liabilities — 698 87 — 785 Long-term advances from affiliates — 1,174 7 (1,181 ) — Other long-term liabilities — 206 356 — 562 Long-term debt — 8,145 13 — 8,158 Deferred income taxes — 1,812 1,693 (4 ) 3,501 Total liabilities 4,735 14,664 2,897 (6,998 ) 15,298 Shareholders’ equity Share capital 1,993 538 4,610 (5,148 ) 1,993 Additional paid-in capital 48 406 265 (671 ) 48 Accumulated other comprehensive (loss) income (2,522 ) (2,522 ) 581 1,941 (2,522 ) Retained earnings 7,550 12,100 5,709 (17,809 ) 7,550 7,069 10,522 11,165 (21,687 ) 7,069 Total liabilities and shareholders’ equity $ 11,804 $ 25,186 $ 14,062 $ (28,685 ) $ 22,367 |
Interim Condensed Consolidating Statements of Cash Flows | Interim Condensed Consolidating Statements of Cash Flows For the three months ended March 31, 2020 (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 $ 94 $ 240 $ 269 $ (114 ) $ 489 Investing activities Additions to properties — (271 ) (84 ) — (355 ) Proceeds from sale of properties and other assets — 1 1 — 2 Advances to affiliates — (496 ) (175 ) 671 — Other — (8 ) (1 ) — (9 ) Cash used in investing activities — (774 ) (259 ) 671 (362 ) Financing activities Dividends paid (114 ) (114 ) — 114 (114 ) Issuance of CP Common Shares 24 — — — 24 Purchase of CP Common Shares (501 ) — — — (501 ) Issuance of long-term debt, excluding commercial paper — 959 — — 959 Repayment of long-term debt, excluding commercial paper — (6 ) (9 ) — (15 ) Net repayment of commercial paper — (553 ) — — (553 ) Increase in short-term borrowings — 145 — — 145 Advances from affiliates 486 175 10 (671 ) — Other 11 — — — 11 Cash (used in) provided by financing activities (94 ) 606 1 (557 ) (44 ) Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents — 10 21 — 31 Cash position Increase in cash and cash equivalents — 82 32 — 114 Cash and cash equivalents at beginning of period — 37 96 — 133 Cash and cash equivalents at end of period $ — $ 119 $ 128 $ — $ 247 Interim Condensed Consolidating Statements of Cash Flows For the three months ended March 31, 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 $ 687 $ 198 $ 219 $ (691 ) $ 413 Investing activities Additions to properties — (141 ) (83 ) — (224 ) Proceeds from sale of properties and other assets — 4 2 — 6 Advances to affiliates — (250 ) (30 ) 280 — Repayment of advances to affiliates — 643 — (643 ) — Other — — (1 ) — (1 ) Cash provided by (used in) investing activities — 256 (112 ) (363 ) (219 ) Financing activities Dividends paid (91 ) (691 ) — 691 (91 ) Issuance of CP Common Shares 4 — — — 4 Purchase of CP Common Shares (207 ) — — — (207 ) Issuance of long-term debt, excluding commercial paper — 397 — — 397 Repayment of long-term debt, excluding commercial paper — (5 ) — — (5 ) Advances from affiliates 250 30 — (280 ) — Repayment of advances from affiliates (643 ) — — 643 — Cash (used in) provided by financing activities (687 ) (269 ) — 1,054 98 Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents — (1 ) — — (1 ) Cash position Increase in cash and cash equivalents — 184 107 — 291 Cash and cash equivalents at beginning of period — 42 19 — 61 Cash and cash equivalents at end of period $ — $ 226 $ 126 $ — $ 352 |
Accounting Changes - Impact of
Accounting Changes - Impact of ASC 326 Adoption (Details) $ in Millions | Jan. 01, 2020CAD ($) |
Accounting Standards Update 2016-13 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Impact from adoption of ASC 326 | $ 1 |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenue (Details) - CAD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | $ 2,029 | $ 1,752 |
Leasing revenues | 14 | 15 |
Total revenues | 2,043 | 1,767 |
Freight | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 2,000 | 1,726 |
Total revenues | 2,000 | 1,726 |
Grain | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 418 | 380 |
Coal | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 150 | 158 |
Potash | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 112 | 114 |
Fertilizers and sulphur | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 70 | 57 |
Forest products | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 78 | 73 |
Energy, chemicals and plastics | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 491 | 315 |
Metals, minerals and consumer products | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 189 | 173 |
Automotive | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 87 | 76 |
Intermodal | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 405 | 380 |
Non-freight excluding leasing revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | $ 29 | $ 26 |
Revenues - Contract Liabilities
Revenues - Contract Liabilities (Details) - CAD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Contract with Customer, Liability [Abstract] | ||
Opening balance | $ 146 | $ 2 |
Revenue recognized that was included in the contract liability balance at the beginning of the period | (37) | (2) |
Increase due to consideration received, net of revenue recognized during the period | 3 | 73 |
Closing balance | $ 112 | $ 73 |
Other (Income) Expense - Other
Other (Income) Expense - Other Income and Expense (Details) - CAD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Other Income and Expenses [Abstract] | ||
Foreign exchange loss (gain) on debt and lease liabilities | $ 215 | $ (45) |
Other foreign exchange gains | (5) | (3) |
Other | 1 | 1 |
Other expense (income) | $ 211 | $ (47) |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Expense (Details) - CAD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Current income tax expense | $ 146 | $ 101 |
Deferred income tax expense | 39 | 38 |
Income tax expense | $ 185 | $ 139 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - CAD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 31.10% | 24.24% |
Foreign exchange loss (gain) on debt and lease liabilities | $ 215 | $ (45) |
Effective tax rate, excluding discrete items | 25.00% | 25.75% |
Earnings Per Share - Number of
Earnings Per Share - Number of Shares Used in the Earnings Per Share Calculations (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Weighted-average basic shares outstanding | 136.7 | 140.1 |
Dilutive effect of stock options | 0.5 | 0.4 |
Weighted-average diluted shares outstanding | 137.2 | 140.5 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Stock Options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Number of options excluded from the computation of diluted earnings per share | 0.1 | 0.2 |
Changes in Accumulated Other _3
Changes in Accumulated Other Comprehensive Loss ("AOCL") by Component - Changes in Accumulated Other Comprehensive Loss (AOCL) by Component (Details) - CAD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
AOC Income (Loss), Opening balance | $ (2,522) | $ (2,043) |
Other comprehensive income (loss) before reclassifications | 7 | (2) |
Amounts reclassified from accumulated other comprehensive loss | 35 | 18 |
Net other comprehensive income | 42 | 16 |
AOC Income (Loss), Closing balance | (2,480) | (2,027) |
Foreign currency net of hedging activities | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
AOC Income (Loss), Opening balance | 112 | 113 |
Other comprehensive income (loss) before reclassifications | 7 | 0 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Net other comprehensive income | 7 | 0 |
AOC Income (Loss), Closing balance | 119 | 113 |
Derivatives and other | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
AOC Income (Loss), Opening balance | (54) | (62) |
Other comprehensive income (loss) before reclassifications | 0 | (1) |
Amounts reclassified from accumulated other comprehensive loss | 2 | 2 |
Net other comprehensive income | 2 | 1 |
AOC Income (Loss), Closing balance | (52) | (61) |
Pension and post-retirement defined benefit plans | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
AOC Income (Loss), Opening balance | (2,580) | (2,094) |
Other comprehensive income (loss) before reclassifications | 0 | (1) |
Amounts reclassified from accumulated other comprehensive loss | 33 | 16 |
Net other comprehensive income | 33 | 15 |
AOC Income (Loss), Closing balance | $ (2,547) | $ (2,079) |
Changes in Accumulated Other _4
Changes in Accumulated Other Comprehensive Loss ("AOCL") by Component - Amounts in Pension and Post-retirement Defined Benefit Plans Reclassified from AOCL (Details) - CAD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Income tax expense (recovery) | $ 185 | $ 139 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Recognition of net actuarial loss | 45 | 21 |
Income tax expense (recovery) | (12) | (5) |
Total net of income tax | $ 33 | $ 16 |
Accounts Receivable, Net - Allo
Accounts Receivable, Net - Allowance for Credit Loss (Details) - CAD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Jan. 01, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $ 926 | |
Allowance for Credit Loss [Roll Forward] | ||
Current period credit loss provision, net | 2 | |
Allowance for credit losses, Closing | (41) | |
Accounts receivable, net | 885 | $ 804 |
Freight | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 724 | |
Allowance for Credit Loss [Roll Forward] | ||
Current period credit loss provision, net | 0 | |
Allowance for credit losses, Closing | (27) | |
Accounts receivable, net | 697 | 610 |
Non-freight | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 202 | |
Allowance for Credit Loss [Roll Forward] | ||
Current period credit loss provision, net | 2 | |
Allowance for credit losses, Closing | (14) | |
Accounts receivable, net | $ 188 | $ 194 |
Debt - Narrative (Details)
Debt - Narrative (Details) | 3 Months Ended | |||
Mar. 31, 2020CAD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Debt Instrument [Line Items] | ||||
Commercial paper borrowings | $ 28,000,000 | $ 20,000,000 | $ 397,000,000 | |
Commercial Paper | ||||
Debt Instrument [Line Items] | ||||
Current borrowing capacity | $ 1,000,000,000 | |||
Commercial paper, Weighted-average interest rate | 2.55% | 2.55% | 2.03% | |
U.S $1.0 Billion Tranche | ||||
Debt Instrument [Line Items] | ||||
Current borrowing capacity | $ 1,000,000,000 | |||
U.S. $300 Million Tranche | ||||
Debt Instrument [Line Items] | ||||
Current borrowing capacity | 300,000,000 | |||
Revolving credit facility, Drawn | $ 142,000,000 | $ 100,000,000 | ||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, Interest rate | 1.875% | 1.875% | ||
Current borrowing capacity | $ 1,300,000,000 | |||
2.050% 10-year Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, Face amount | $ 500,000,000 | |||
Debt instrument, Interest rate | 2.05% | 2.05% | ||
Debt instrument, Term | 10 years | 10 years | ||
Debt instrument, Maturity date | Mar. 5, 2030 | Mar. 5, 2030 | ||
Net proceeds from issuance of debt | $ 662,000,000 | $ 495,000,000 | ||
3.050% 30-year Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, Face amount | $ 300,000,000 | |||
Debt instrument, Interest rate | 3.05% | 3.05% | ||
Debt instrument, Term | 30 years | 30 years | ||
Debt instrument, Maturity date | Mar. 9, 2050 | Mar. 9, 2050 | ||
Net proceeds from issuance of debt | $ 296,000,000 |
Financial Instruments - Fair Va
Financial Instruments - Fair Value and Carrying Value of Long-term Debt (Details) - CAD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Schedule of Investments [Line Items] | ||
Long-term Debt, Fair value | $ 11,607 | $ 10,149 |
Carrying Value Measurement | ||
Schedule of Investments [Line Items] | ||
Long-term Debt, Carrying value | $ 10,070 | $ 8,757 |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) - CAD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net Investment Hedge | ||
Schedule of Investments [Line Items] | ||
Gain (loss) on net investment hedge | $ (555) | $ 120 |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - CAD ($) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 17, 2019 | Oct. 19, 2018 | |
Common Shares repurchased | 1,600,000 | 700,000 | |||
Common Shares repurchased (value) | $ 468 | $ 185 | |||
Current Normal Course Issuer Bid (NCIB) | |||||
Common Shares authorized to be repurchased | 4,800,000 | ||||
Common Shares repurchased | 1,750,000 | 1,455,854 | |||
Common Shares repurchased (value) | $ 568 | $ 468 | |||
2018 Normal Course Issuer Bid (NCIB) | |||||
Common Shares authorized to be repurchased | 5,680,000 | ||||
Common Shares repurchased | 707,678 | ||||
Common Shares repurchased (value) | $ 185 |
Shareholders' Equity - Activiti
Shareholders' Equity - Activities Under Share Repurchase Program (Detail) - CAD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | |
Common Shares repurchased | 1,600,000 | 700,000 | |
Common Shares repurchased (value) | $ 468 | $ 185 | |
Current Normal Course Issuer Bid (NCIB) | |||
Common Shares repurchased | 1,750,000 | 1,455,854 | |
Weighted-average price per share | $ 321.71 | ||
Common Shares repurchased (value) | $ 568 | $ 468 | |
2018 Normal Course Issuer Bid (NCIB) | |||
Common Shares repurchased | 707,678 | ||
Weighted-average price per share | $ 261.73 | ||
Common Shares repurchased (value) | $ 185 |
Pension and Other Benefits - Na
Pension and Other Benefits - Narrative (Details) - CAD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Defined Benefit Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Contributions made by the Company | $ 9 | $ 11 |
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Defined Benefit Plan and Other Postretirement Benefit Plans | ||
Total other components of net periodic benefit (recovery) cost | $ (85) | $ (97) |
Defined Benefit Pension Plan | ||
Defined Benefit Plan and Other Postretirement Benefit Plans | ||
Current service cost (benefits earned by employees) | 35 | 27 |
Interest cost on benefit obligation | 102 | 112 |
Expected return on fund assets | (237) | (237) |
Recognized net actuarial loss | 44 | 21 |
Total other components of net periodic benefit (recovery) cost | (91) | (104) |
Net periodic benefit (recovery) cost | (56) | (77) |
Other Post-retirement Benefit Plans | ||
Defined Benefit Plan and Other Postretirement Benefit Plans | ||
Current service cost (benefits earned by employees) | 3 | 3 |
Interest cost on benefit obligation | 5 | 5 |
Expected return on fund assets | 0 | 0 |
Recognized net actuarial loss | 1 | 2 |
Total other components of net periodic benefit (recovery) cost | 6 | 7 |
Net periodic benefit (recovery) cost | $ 9 | $ 10 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - CAD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 11 | $ 34 | |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of options issued | 212,020 | ||
Weighted-average grant price | $ 351.37 | ||
Expiration period | 7 years | ||
Grant date fair value | $ 15 | ||
Stock Options | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 12 months | ||
Stock Options | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 48 months | ||
Performance Share Units (PSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Units issued | 97,205 | ||
Grant date fair value | $ 34 | ||
PSU payout percentage | 193.00% | ||
Number of trading days | 30 days | ||
PSU cash payout | $ 76 | ||
Units paid in period | 121,225 | ||
Performance Deferred Share Units (PDSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Units issued | 10,029 | ||
Grant date fair value | $ 4 | ||
Number of additional PDSUs that can be granted as a percentage of original units granted | 25.00% | ||
PSUs and PDSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Deferred Share Units (DSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 48 months | ||
Units issued | 13,134 | ||
Grant date fair value | $ 4 |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted-Average Fair Value Assumptions (Details) - Stock Options | 3 Months Ended |
Mar. 31, 2020CAD ($)$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected option life (years) | 4 years 9 months |
Risk-free interest rate | 1.31% |
Expected stock price volatility | 23.05% |
Expected annual dividends per share | $ | $ 3.3200 |
Estimated forfeiture rate | 4.37% |
Weighted-average grant date fair value per option granted during the period | $ / shares | $ 68.95 |
Contingencies - Legal Proceedin
Contingencies - Legal Proceedings (Details) - 3 months ended Mar. 31, 2020 - Lac-Megantic Rail Accident $ in Millions, $ in Millions | CAD ($)claim | USD ($)claim |
Claimed derailment damages | ||
Other Commitments [Line Items] | ||
Amount of fund distributed | $ 440 | |
Quebec Minister of Sustainable Development, Environment, Wildlife and Parks | ||
Other Commitments [Line Items] | ||
Value of damages sought | 95 | |
Attorney General of Quebec | ||
Other Commitments [Line Items] | ||
Value of damages sought | 315 | |
Initial value of damages sought | 409 | |
Initial Subrogated Insurers | Subrogated insurance claim | ||
Other Commitments [Line Items] | ||
Value of damages sought | 15 | |
Initial value of damages sought | $ 16 | |
Number of subrogated insurer claims | claim | 8 | 8 |
Additional Subrogated Insurers | Subrogated insurance claim | ||
Other Commitments [Line Items] | ||
Value of damages sought | $ 3 | |
Number of subrogated insurer claims | claim | 2 | 2 |
Class Action Plaintiffs | ||
Other Commitments [Line Items] | ||
Value of damages sought | $ 5 | |
Number of plaintiffs | claim | 48 | 48 |
WD Trustee | Damaged rail cars and lost crude recovery | ||
Other Commitments [Line Items] | ||
Value of damages sought | $ 6 | |
WD Trustee | Reimbursement for settlement paid by consignor | ||
Other Commitments [Line Items] | ||
Value of damages sought | 110 | |
WD Trustee | Reimbursement for settlement paid by consignee | ||
Other Commitments [Line Items] | ||
Value of damages sought | $ 60 |
Contingencies - Environmental L
Contingencies - Environmental Liabilities (Details) - CAD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Site Contingency [Line Items] | |||
Total amount provided for provisions for environmental remediation costs | $ 83 | $ 77 | |
Term for expected payments to be made | 10 years | ||
Purchased services and other | |||
Site Contingency [Line Items] | |||
Environmental remediation expense | $ 1 | $ 1 |
Condensed Consolidating Finan_3
Condensed Consolidating Financial Information - Interim Condensed Consolidating Statements of Income (Details) - CAD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues | ||
Total revenues | $ 2,043 | $ 1,767 |
Operating expenses | ||
Compensation and benefits | 398 | 406 |
Fuel | 212 | 209 |
Materials | 59 | 57 |
Equipment rents | 36 | 35 |
Depreciation and amortization | 192 | 160 |
Purchased services and other | 312 | 357 |
Total operating expenses | 1,209 | 1,224 |
Operating income | 834 | 543 |
Less: | ||
Other expense (income) | 211 | (47) |
Other components of net periodic benefit recovery cost | (85) | (97) |
Net interest (income) expense | 114 | 114 |
(Loss) income before income tax expense and equity in net earnings of subsidiaries | 594 | 573 |
Income tax expense (recovery) | 185 | 139 |
Add: Equity in net earnings of subsidiaries | 0 | 0 |
Net income | 409 | 434 |
Freight | ||
Revenues | ||
Total revenues | 2,000 | 1,726 |
Non-freight | ||
Revenues | ||
Total revenues | 43 | 41 |
Consolidating Adjustments and Eliminations [Member] | ||
Revenues | ||
Total revenues | (83) | (102) |
Operating expenses | ||
Compensation and benefits | 3 | 2 |
Fuel | 0 | 0 |
Materials | 2 | 4 |
Equipment rents | (3) | 0 |
Depreciation and amortization | 0 | 0 |
Purchased services and other | (85) | (108) |
Total operating expenses | (83) | (102) |
Operating income | 0 | 0 |
Less: | ||
Other expense (income) | 0 | 0 |
Other components of net periodic benefit recovery cost | 0 | 0 |
Net interest (income) expense | 0 | 0 |
(Loss) income before income tax expense and equity in net earnings of subsidiaries | 0 | 0 |
Income tax expense (recovery) | 0 | 0 |
Add: Equity in net earnings of subsidiaries | (632) | (552) |
Net income | (632) | (552) |
Consolidating Adjustments and Eliminations [Member] | Freight | ||
Revenues | ||
Total revenues | 0 | 0 |
Consolidating Adjustments and Eliminations [Member] | Non-freight | ||
Revenues | ||
Total revenues | (83) | (102) |
CPRL (Parent Guarantor) [Member] | Reportable Legal Entities [Member] | ||
Revenues | ||
Total revenues | 0 | 0 |
Operating expenses | ||
Compensation and benefits | 0 | 0 |
Fuel | 0 | 0 |
Materials | 0 | 0 |
Equipment rents | 0 | 0 |
Depreciation and amortization | 0 | 0 |
Purchased services and other | 0 | 0 |
Total operating expenses | 0 | 0 |
Operating income | 0 | 0 |
Less: | ||
Other expense (income) | 21 | (5) |
Other components of net periodic benefit recovery cost | 0 | 0 |
Net interest (income) expense | 0 | (1) |
(Loss) income before income tax expense and equity in net earnings of subsidiaries | (21) | 6 |
Income tax expense (recovery) | 0 | 0 |
Add: Equity in net earnings of subsidiaries | 430 | 428 |
Net income | 409 | 434 |
CPRL (Parent Guarantor) [Member] | Reportable Legal Entities [Member] | Freight | ||
Revenues | ||
Total revenues | 0 | 0 |
CPRL (Parent Guarantor) [Member] | Reportable Legal Entities [Member] | Non-freight | ||
Revenues | ||
Total revenues | 0 | 0 |
CPRC (Subsidiary Issuer) [Member] | Reportable Legal Entities [Member] | ||
Revenues | ||
Total revenues | 1,490 | 1,273 |
Operating expenses | ||
Compensation and benefits | 275 | 274 |
Fuel | 167 | 165 |
Materials | 41 | 38 |
Equipment rents | 44 | 33 |
Depreciation and amortization | 115 | 96 |
Purchased services and other | 243 | 278 |
Total operating expenses | 885 | 884 |
Operating income | 605 | 389 |
Less: | ||
Other expense (income) | 208 | (43) |
Other components of net periodic benefit recovery cost | (87) | (98) |
Net interest (income) expense | 122 | 122 |
(Loss) income before income tax expense and equity in net earnings of subsidiaries | 362 | 408 |
Income tax expense (recovery) | 134 | 104 |
Add: Equity in net earnings of subsidiaries | 202 | 124 |
Net income | 430 | 428 |
CPRC (Subsidiary Issuer) [Member] | Reportable Legal Entities [Member] | Freight | ||
Revenues | ||
Total revenues | 1,457 | 1,244 |
CPRC (Subsidiary Issuer) [Member] | Reportable Legal Entities [Member] | Non-freight | ||
Revenues | ||
Total revenues | 33 | 29 |
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||
Revenues | ||
Total revenues | 636 | 596 |
Operating expenses | ||
Compensation and benefits | 120 | 130 |
Fuel | 45 | 44 |
Materials | 16 | 15 |
Equipment rents | (5) | 2 |
Depreciation and amortization | 77 | 64 |
Purchased services and other | 154 | 187 |
Total operating expenses | 407 | 442 |
Operating income | 229 | 154 |
Less: | ||
Other expense (income) | (18) | 1 |
Other components of net periodic benefit recovery cost | 2 | 1 |
Net interest (income) expense | (8) | (7) |
(Loss) income before income tax expense and equity in net earnings of subsidiaries | 253 | 159 |
Income tax expense (recovery) | 51 | 35 |
Add: Equity in net earnings of subsidiaries | 0 | 0 |
Net income | 202 | 124 |
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | Freight | ||
Revenues | ||
Total revenues | 543 | 482 |
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | Non-freight | ||
Revenues | ||
Total revenues | $ 93 | $ 114 |
Condensed Consolidating Finan_4
Condensed Consolidating Financial Information - Interim Condensed Consolidating Statements of Comprehensive Income (Details) - CAD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Condensed Financial Statements, Captions [Line Items] | ||
Net income | $ 409 | $ 434 |
Net (loss) gain in foreign currency translation adjustments, net of hedging activities | (65) | 16 |
Change in derivatives designated as cash flow hedges | 2 | 2 |
Change in pension and post-retirement defined benefit plans | 45 | 20 |
Other comprehensive (loss) income before income taxes | (18) | 38 |
Income tax recovery (expense) on above items | 60 | (22) |
Equity accounted investments | 0 | 0 |
Other comprehensive income (loss) | 42 | 16 |
Comprehensive income | 451 | 450 |
Consolidating Adjustments and Eliminations [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net income | (632) | (552) |
Net (loss) gain in foreign currency translation adjustments, net of hedging activities | 0 | 0 |
Change in derivatives designated as cash flow hedges | 0 | 0 |
Change in pension and post-retirement defined benefit plans | 0 | 0 |
Other comprehensive (loss) income before income taxes | 0 | 0 |
Income tax recovery (expense) on above items | 0 | 0 |
Equity accounted investments | (533) | 87 |
Other comprehensive income (loss) | (533) | 87 |
Comprehensive income | (1,165) | (465) |
CPRL (Parent Guarantor) [Member] | Reportable Legal Entities [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net income | 409 | 434 |
Net (loss) gain in foreign currency translation adjustments, net of hedging activities | 0 | 0 |
Change in derivatives designated as cash flow hedges | 0 | 0 |
Change in pension and post-retirement defined benefit plans | 0 | 0 |
Other comprehensive (loss) income before income taxes | 0 | 0 |
Income tax recovery (expense) on above items | 0 | 0 |
Equity accounted investments | 42 | 16 |
Other comprehensive income (loss) | 42 | 16 |
Comprehensive income | 451 | 450 |
CPRC (Subsidiary Issuer) [Member] | Reportable Legal Entities [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net income | 430 | 428 |
Net (loss) gain in foreign currency translation adjustments, net of hedging activities | (555) | 120 |
Change in derivatives designated as cash flow hedges | 2 | 2 |
Change in pension and post-retirement defined benefit plans | 44 | 19 |
Other comprehensive (loss) income before income taxes | (509) | 141 |
Income tax recovery (expense) on above items | 60 | (22) |
Equity accounted investments | 491 | (103) |
Other comprehensive income (loss) | 42 | 16 |
Comprehensive income | 472 | 444 |
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net income | 202 | 124 |
Net (loss) gain in foreign currency translation adjustments, net of hedging activities | 490 | (104) |
Change in derivatives designated as cash flow hedges | 0 | 0 |
Change in pension and post-retirement defined benefit plans | 1 | 1 |
Other comprehensive (loss) income before income taxes | 491 | (103) |
Income tax recovery (expense) on above items | 0 | 0 |
Equity accounted investments | 0 | 0 |
Other comprehensive income (loss) | 491 | (103) |
Comprehensive income | $ 693 | $ 21 |
Condensed Consolidating Finan_5
Condensed Consolidating Financial Information - Interim Condensed Consolidating Balance Sheets (Details) - CAD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets | ||||
Cash and cash equivalents | $ 247 | $ 133 | ||
Accounts receivable, net | 885 | 805 | ||
Accounts receivable, intercompany | 0 | 0 | ||
Short-term advances to affiliates | 0 | 0 | ||
Materials and supplies | 177 | 182 | ||
Other current assets | 98 | 90 | ||
Total current assets | 1,407 | 1,210 | ||
Long-term advances to affiliates | 0 | 0 | ||
Investments | 369 | 341 | ||
Investments in subsidiaries | 0 | 0 | ||
Properties | 19,900 | 19,156 | ||
Goodwill and intangible assets | 223 | 206 | ||
Pension asset | 1,111 | 1,003 | ||
Other assets | 478 | 451 | ||
Deferred income taxes | 0 | 0 | ||
Total assets | 23,488 | 22,367 | ||
Current liabilities | ||||
Accounts payable and accrued liabilities | 1,528 | 1,693 | ||
Accounts payable, intercompany | 0 | 0 | ||
Short-term advances from affiliates | 0 | 0 | ||
Long-term debt maturing within one year | 266 | 599 | ||
Total current liabilities | 1,794 | 2,292 | ||
Pension and other benefit liabilities | 790 | 785 | ||
Long-term advances from affiliates | 0 | 0 | ||
Other long-term liabilities | 541 | 562 | ||
Long-term debt | 9,804 | 8,158 | ||
Deferred income taxes | 3,604 | 3,501 | ||
Total liabilities | 16,533 | 15,298 | ||
Shareholders’ equity | ||||
Share capital | 1,985 | 1,993 | ||
Additional paid-in capital | 51 | 48 | ||
Accumulated other comprehensive (loss) income | (2,480) | (2,522) | $ (2,027) | $ (2,043) |
Retained earnings | 7,399 | 7,550 | ||
Total shareholders' equity | 6,955 | 7,069 | $ 6,814 | |
Total liabilities and shareholders’ equity | 23,488 | 22,367 | ||
Consolidating Adjustments and Eliminations [Member] | ||||
Current assets | ||||
Cash and cash equivalents | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Accounts receivable, intercompany | (589) | (726) | ||
Short-term advances to affiliates | (5,765) | (5,087) | ||
Materials and supplies | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Total current assets | (6,354) | (5,813) | ||
Long-term advances to affiliates | (1,190) | (1,181) | ||
Investments | 0 | 0 | ||
Investments in subsidiaries | (22,747) | (21,687) | ||
Properties | 0 | 0 | ||
Goodwill and intangible assets | 0 | 0 | ||
Pension asset | 0 | 0 | ||
Other assets | 0 | 0 | ||
Deferred income taxes | (5) | (4) | ||
Total assets | (30,296) | (28,685) | ||
Current liabilities | ||||
Accounts payable and accrued liabilities | 0 | 0 | ||
Accounts payable, intercompany | (589) | (726) | ||
Short-term advances from affiliates | (5,765) | (5,087) | ||
Long-term debt maturing within one year | 0 | 0 | ||
Total current liabilities | (6,354) | (5,813) | ||
Pension and other benefit liabilities | 0 | 0 | ||
Long-term advances from affiliates | (1,190) | (1,181) | ||
Other long-term liabilities | 0 | 0 | ||
Long-term debt | 0 | 0 | ||
Deferred income taxes | (5) | (4) | ||
Total liabilities | (7,549) | (6,998) | ||
Shareholders’ equity | ||||
Share capital | (5,148) | (5,148) | ||
Additional paid-in capital | (678) | (671) | ||
Accumulated other comprehensive (loss) income | 1,408 | 1,941 | ||
Retained earnings | (18,329) | (17,809) | ||
Total shareholders' equity | (22,747) | (21,687) | ||
Total liabilities and shareholders’ equity | (30,296) | (28,685) | ||
CPRL (Parent Guarantor) [Member] | Reportable Legal Entities [Member] | ||||
Current assets | ||||
Cash and cash equivalents | 0 | 0 | ||
Accounts receivable, net | 0 | 24 | ||
Accounts receivable, intercompany | 172 | 164 | ||
Short-term advances to affiliates | 0 | 0 | ||
Materials and supplies | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Total current assets | 172 | 188 | ||
Long-term advances to affiliates | 1,090 | 1,090 | ||
Investments | 0 | 0 | ||
Investments in subsidiaries | 10,886 | 10,522 | ||
Properties | 0 | 0 | ||
Goodwill and intangible assets | 0 | 0 | ||
Pension asset | 0 | 0 | ||
Other assets | 0 | 0 | ||
Deferred income taxes | 5 | 4 | ||
Total assets | 12,153 | 11,804 | ||
Current liabilities | ||||
Accounts payable and accrued liabilities | 113 | 146 | ||
Accounts payable, intercompany | 7 | 6 | ||
Short-term advances from affiliates | 5,078 | 4,583 | ||
Long-term debt maturing within one year | 0 | 0 | ||
Total current liabilities | 5,198 | 4,735 | ||
Pension and other benefit liabilities | 0 | 0 | ||
Long-term advances from affiliates | 0 | 0 | ||
Other long-term liabilities | 0 | 0 | ||
Long-term debt | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Total liabilities | 5,198 | 4,735 | ||
Shareholders’ equity | ||||
Share capital | 1,985 | 1,993 | ||
Additional paid-in capital | 51 | 48 | ||
Accumulated other comprehensive (loss) income | (2,480) | (2,522) | ||
Retained earnings | 7,399 | 7,550 | ||
Total shareholders' equity | 6,955 | 7,069 | ||
Total liabilities and shareholders’ equity | 12,153 | 11,804 | ||
CPRC (Subsidiary Issuer) [Member] | Reportable Legal Entities [Member] | ||||
Current assets | ||||
Cash and cash equivalents | 119 | 37 | ||
Accounts receivable, net | 670 | 597 | ||
Accounts receivable, intercompany | 249 | 313 | ||
Short-term advances to affiliates | 1,891 | 1,387 | ||
Materials and supplies | 134 | 144 | ||
Other current assets | 54 | 41 | ||
Total current assets | 3,117 | 2,519 | ||
Long-term advances to affiliates | 8 | 7 | ||
Investments | 29 | 32 | ||
Investments in subsidiaries | 11,861 | 11,165 | ||
Properties | 10,446 | 10,287 | ||
Goodwill and intangible assets | 0 | 0 | ||
Pension asset | 1,111 | 1,003 | ||
Other assets | 179 | 173 | ||
Deferred income taxes | 0 | 0 | ||
Total assets | 26,751 | 25,186 | ||
Current liabilities | ||||
Accounts payable and accrued liabilities | 1,025 | 1,189 | ||
Accounts payable, intercompany | 333 | 402 | ||
Short-term advances from affiliates | 664 | 490 | ||
Long-term debt maturing within one year | 203 | 548 | ||
Total current liabilities | 2,225 | 2,629 | ||
Pension and other benefit liabilities | 695 | 698 | ||
Long-term advances from affiliates | 1,181 | 1,174 | ||
Other long-term liabilities | 180 | 206 | ||
Long-term debt | 9,804 | 8,145 | ||
Deferred income taxes | 1,780 | 1,812 | ||
Total liabilities | 15,865 | 14,664 | ||
Shareholders’ equity | ||||
Share capital | 538 | 538 | ||
Additional paid-in capital | 411 | 406 | ||
Accumulated other comprehensive (loss) income | (2,480) | (2,522) | ||
Retained earnings | 12,417 | 12,100 | ||
Total shareholders' equity | 10,886 | 10,522 | ||
Total liabilities and shareholders’ equity | 26,751 | 25,186 | ||
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||||
Current assets | ||||
Cash and cash equivalents | 128 | 96 | ||
Accounts receivable, net | 215 | 184 | ||
Accounts receivable, intercompany | 168 | 249 | ||
Short-term advances to affiliates | 3,874 | 3,700 | ||
Materials and supplies | 43 | 38 | ||
Other current assets | 44 | 49 | ||
Total current assets | 4,472 | 4,316 | ||
Long-term advances to affiliates | 92 | 84 | ||
Investments | 340 | 309 | ||
Investments in subsidiaries | 0 | 0 | ||
Properties | 9,454 | 8,869 | ||
Goodwill and intangible assets | 223 | 206 | ||
Pension asset | 0 | 0 | ||
Other assets | 299 | 278 | ||
Deferred income taxes | 0 | 0 | ||
Total assets | 14,880 | 14,062 | ||
Current liabilities | ||||
Accounts payable and accrued liabilities | 390 | 358 | ||
Accounts payable, intercompany | 249 | 318 | ||
Short-term advances from affiliates | 23 | 14 | ||
Long-term debt maturing within one year | 63 | 51 | ||
Total current liabilities | 725 | 741 | ||
Pension and other benefit liabilities | 95 | 87 | ||
Long-term advances from affiliates | 9 | 7 | ||
Other long-term liabilities | 361 | 356 | ||
Long-term debt | 0 | 13 | ||
Deferred income taxes | 1,829 | 1,693 | ||
Total liabilities | 3,019 | 2,897 | ||
Shareholders’ equity | ||||
Share capital | 4,610 | 4,610 | ||
Additional paid-in capital | 267 | 265 | ||
Accumulated other comprehensive (loss) income | 1,072 | 581 | ||
Retained earnings | 5,912 | 5,709 | ||
Total shareholders' equity | 11,861 | 11,165 | ||
Total liabilities and shareholders’ equity | $ 14,880 | $ 14,062 |
Condensed Consolidating Finan_6
Condensed Consolidating Financial Information - Interim Condensed Consolidating Statements of Cash Flows (Details) - CAD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Condensed Financial Statements, Captions [Line Items] | ||
Cash provided by operating activities | $ 489 | $ 413 |
Investing activities | ||
Additions to properties | (355) | (224) |
Proceeds from sale of properties and other assets | 2 | 6 |
Advances to affiliates | 0 | 0 |
Repayment of advances to affiliates | 0 | |
Other investing activities | (9) | (1) |
Cash used in investing activities | (362) | (219) |
Financing activities | ||
Dividends paid | (114) | (91) |
Issuance of CP Common Shares | 24 | 4 |
Purchase of CP Common Shares | (501) | (207) |
Issuance of long-term debt, excluding commercial paper | 959 | 397 |
Repayment of long-term debt, excluding commercial paper | (15) | (5) |
Net repayment of commercial paper | (553) | 0 |
Increase in short-term borrowings | 145 | 0 |
Advances from affiliates | 0 | 0 |
Repayment of advances from affiliates | 0 | |
Other financing activities | 11 | 0 |
Cash (used in) provided by financing activities | (44) | 98 |
Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents | 31 | (1) |
Cash position | ||
Increase (decrease) in cash and cash equivalents | 114 | 291 |
Cash and cash equivalents at beginning of period | 133 | 61 |
Cash and cash equivalents at end of period | 247 | 352 |
Consolidating Adjustments and Eliminations [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Cash provided by operating activities | (114) | (691) |
Investing activities | ||
Additions to properties | 0 | 0 |
Proceeds from sale of properties and other assets | 0 | 0 |
Advances to affiliates | 671 | 280 |
Repayment of advances to affiliates | (643) | |
Other investing activities | 0 | 0 |
Cash used in investing activities | 671 | (363) |
Financing activities | ||
Dividends paid | 114 | 691 |
Issuance of CP Common Shares | 0 | 0 |
Purchase of CP Common Shares | 0 | 0 |
Issuance of long-term debt, excluding commercial paper | 0 | 0 |
Repayment of long-term debt, excluding commercial paper | 0 | 0 |
Net repayment of commercial paper | 0 | |
Increase in short-term borrowings | 0 | |
Advances from affiliates | (671) | (280) |
Repayment of advances from affiliates | 643 | |
Other financing activities | 0 | |
Cash (used in) provided by financing activities | (557) | 1,054 |
Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents | 0 | 0 |
Cash position | ||
Increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 |
CPRL (Parent Guarantor) [Member] | Reportable Legal Entities [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Cash provided by operating activities | 94 | 687 |
Investing activities | ||
Additions to properties | 0 | 0 |
Proceeds from sale of properties and other assets | 0 | 0 |
Advances to affiliates | 0 | 0 |
Repayment of advances to affiliates | 0 | |
Other investing activities | 0 | 0 |
Cash used in investing activities | 0 | 0 |
Financing activities | ||
Dividends paid | (114) | (91) |
Issuance of CP Common Shares | 24 | 4 |
Purchase of CP Common Shares | (501) | (207) |
Issuance of long-term debt, excluding commercial paper | 0 | 0 |
Repayment of long-term debt, excluding commercial paper | 0 | 0 |
Net repayment of commercial paper | 0 | |
Increase in short-term borrowings | 0 | |
Advances from affiliates | 486 | 250 |
Repayment of advances from affiliates | (643) | |
Other financing activities | 11 | |
Cash (used in) provided by financing activities | (94) | (687) |
Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents | 0 | 0 |
Cash position | ||
Increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 |
CPRC (Subsidiary Issuer) [Member] | Reportable Legal Entities [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Cash provided by operating activities | 240 | 198 |
Investing activities | ||
Additions to properties | (271) | (141) |
Proceeds from sale of properties and other assets | 1 | 4 |
Advances to affiliates | (496) | (250) |
Repayment of advances to affiliates | 643 | |
Other investing activities | (8) | 0 |
Cash used in investing activities | (774) | 256 |
Financing activities | ||
Dividends paid | (114) | (691) |
Issuance of CP Common Shares | 0 | 0 |
Purchase of CP Common Shares | 0 | 0 |
Issuance of long-term debt, excluding commercial paper | 959 | 397 |
Repayment of long-term debt, excluding commercial paper | (6) | (5) |
Net repayment of commercial paper | (553) | |
Increase in short-term borrowings | 145 | |
Advances from affiliates | 175 | 30 |
Repayment of advances from affiliates | 0 | |
Other financing activities | 0 | |
Cash (used in) provided by financing activities | 606 | (269) |
Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents | 10 | (1) |
Cash position | ||
Increase (decrease) in cash and cash equivalents | 82 | 184 |
Cash and cash equivalents at beginning of period | 37 | 42 |
Cash and cash equivalents at end of period | 119 | 226 |
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Cash provided by operating activities | 269 | 219 |
Investing activities | ||
Additions to properties | (84) | (83) |
Proceeds from sale of properties and other assets | 1 | 2 |
Advances to affiliates | (175) | (30) |
Repayment of advances to affiliates | 0 | |
Other investing activities | (1) | (1) |
Cash used in investing activities | (259) | (112) |
Financing activities | ||
Dividends paid | 0 | 0 |
Issuance of CP Common Shares | 0 | 0 |
Purchase of CP Common Shares | 0 | 0 |
Issuance of long-term debt, excluding commercial paper | 0 | 0 |
Repayment of long-term debt, excluding commercial paper | (9) | 0 |
Net repayment of commercial paper | 0 | |
Increase in short-term borrowings | 0 | |
Advances from affiliates | 10 | 0 |
Repayment of advances from affiliates | 0 | |
Other financing activities | 0 | |
Cash (used in) provided by financing activities | 1 | 0 |
Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents | 21 | 0 |
Cash position | ||
Increase (decrease) in cash and cash equivalents | 32 | 107 |
Cash and cash equivalents at beginning of period | 96 | 19 |
Cash and cash equivalents at end of period | $ 128 | $ 126 |
Uncategorized Items - q12020qua
Label | Element | Value |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 7,068,000,000 |
Accounts Receivable, Allowance for Credit Loss | us-gaap_AllowanceForDoubtfulAccountsReceivable | $ 43,000,000 |
Common Stock, Shares, Outstanding | us-gaap_CommonStockSharesOutstanding | 137,000,000 |
Cargo and Freight [Member] | ||
Accounts Receivable, Allowance for Credit Loss | us-gaap_AllowanceForDoubtfulAccountsReceivable | $ 27,000,000 |
Non-Freight [Member] | ||
Accounts Receivable, Allowance for Credit Loss | us-gaap_AllowanceForDoubtfulAccountsReceivable | 16,000,000 |
AOCI Attributable to Parent [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | (2,522,000,000) |
Additional Paid-in Capital [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 48,000,000 |
Common Stock [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 1,993,000,000 |
Retained Earnings [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 7,549,000,000 |
Accounting Standards Update 2016-13 [Member] | AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Accounting Standards Update 2016-13 [Member] | Additional Paid-in Capital [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Accounting Standards Update 2016-13 [Member] | Common Stock [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Accounting Standards Update 2016-13 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (1,000,000) |