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Pensions and Other Postretirement Benefits (Tables)
 12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
Schedule of allocation of plan assets
Actual asset allocation

Actual plan asset allocation
Policy20242023
Cash and short-term investments2 %1 %2 %
Bonds and mortgages41 %47 %41 %
Emerging market debt2 %2 %2 %
Private debt3 %5 %6 %
Equities 27 %30 %25 %
Real estate4 %3 %3 %
Resource and royalties 5 %7 %7 %
Infrastructure4 %4 %4 %
Specialty portfolio2 %2 %2 %
Absolute return12 %15 %14 %
Investment-related liabilities(2 %)(16 %)(6 %)
Total100 %100 %100 %
Fair value of plan assets by class
Fair value of plan assets by asset class

Fair value measurements at December 31, 2024
In millionsTotalLevel 1Level 2Level 3NAV
Cash and short-term investments (1)
$186 $61 $125 $— $— 
Bonds (2)
Canada, U.S. and supranational78 — 78 — — 
Provinces of Canada and municipalities6,336 — 6,336 — — 
Corporate2,286 — 2,286 — — 
Emerging market debt (3)
380 — 380 — — 
Private debt (5)
951 — 1 — 950 
Public equities (6)
Canadian239 245 (6)— — 
U.S.2,472 2,581 (109)— — 
International2,334 2,334 — — — 
Private equities (7)
735 — (3)— 738 
Real estate (8)
519 — — 238 281 
Resource and royalties (9)
1,318 311 60 947 — 
Infrastructure (10)
655 — 2 — 653 
Absolute return funds (11)
Multi-strategy1,357 — 1 — 1,356 
Fixed income76 — 4 — 72 
Commodity(1)— (1)— — 
Equity511 — — — 511 
Global macro858 — — — 858 
Downside protection12 12 — — — 
Total investments (12)
$21,302 $5,544 $9,154 $1,185 $5,419 
Investment-related liabilities (13)
(2,960)
Other (14)
93 
Total plan assets$18,435 
Level 1: Fair value based on quoted prices in active markets for identical assets.
Level 2: Fair value based on other significant observable inputs.
Level 3: Fair value based on significant unobservable inputs.
NAV: Investments measured at net asset value as a practical expedient.                 
Footnotes to the tables follow on the following page.
Fair value measurements at December 31, 2023
In millionsTotalLevel 1Level 2Level 3NAV
Cash and short-term investments (1)
$367 $117 $250 $— $— 
Bonds (2)
Canada, U.S. and supranational38 — 38 — — 
Provinces of Canada and municipalities5,209 — 5,209 — — 
Corporate1,903 — 1,903 — — 
Emerging market debt (3)
352 — 352 — — 
Mortgages (4)
1 — 1 — — 
Private debt (5)
1,021 — 1 — 1,020 
Public equities (6)
Canadian181 180 1 — — 
U.S.1,828 1,736 92 — — 
International2,170 2,170 — — — 
Private equities (7)
616 — (3)— 619 
Real estate (8)
439 — — 252 187 
Resource and royalties (9)
1,272 312 45 915 — 
Infrastructure (10)
660 — 14 — 646 
Absolute return funds (11)
Multi-strategy1,192 — — — 1,192 
Fixed income6 — 4 — 2 
Equity385 — — — 385 
Global macro774 — — — 774 
Downside protection15 13 2 — — 
Total investments (12)
$18,429 $4,528 $7,909 $1,167 $4,825 
Investment-related liabilities (13)
(868)
Other (14)
(28)
Total plan assets$17,533 
Level 1: Fair value based on quoted prices in active markets for identical assets.
Level 2: Fair value based on other significant observable inputs.
Level 3: Fair value based on significant unobservable inputs.
NAV: Investments measured at net asset value as a practical expedient.                 
Footnotes to the tables follow on the following page.
Reconciliation of the fair value of investments categorized as Level 3
Fair value of investments classified as Level 3

Fair value measurements based on significant unobservable inputs (Level 3)
In millions
Real estate (8)
Resource and royalties (9)
Total
Balance at December 31, 2022$249 $841 $1,090 
Actual return relating to assets still held at the reporting date10 81 91 
Purchases2 2 4 
Disbursements(9)(9)(18)
Balance at December 31, 2023252 915 1,167 
Actual return relating to assets still held at the reporting date7 53 60 
Purchases1 69 70 
Sales(6)— (6)
Disbursements(16)(90)(106)
Balance at December 31, 2024$238 $947 $1,185 
(1)Cash and short-term investments with related accrued interest are valued at cost, which approximates fair value, and are categorized as Level 1 and Level 2 respectively.
(2)Bonds are valued using mid-market prices obtained from independent pricing data suppliers. When prices are not available from independent sources, the fair value is based on the present value of future net cash flows using current market yields for comparable instruments.
(3)Emerging market debt funds are valued based on the net asset value which is readily available and published by each fund's independent administrator.
(4)Mortgages are valued using mid-market prices obtained from independent pricing data suppliers. When prices are not available from independent sources, the fair value is based on the present value of future net cash flows using current market yields for comparable instruments.
(5)Private debt investments are valued based on the net asset value as reported by each fund's manager, generally based on the present value of future net cash flows using current market yields for comparable instruments. In 2024, $45 million (2023 - $47 million) of private debt investments are included as part of the specialty portfolio strategy.
(6)The fair value of public equity investments is based on quoted prices in active markets.
(7)Private equity investments are valued based on the net asset value as reported by each fund's manager, generally using discounted cash flow analysis or earnings multiples. In 2024, $338 million (2023 - $273 million) of private equity investments are included as part of the specialty portfolio strategy.
(8)The fair value of real estate investments categorized as Level 3 includes immovable properties. Land is valued based on the fair value of comparable assets, and income producing properties are valued based on the present value of estimated future net cash flows or the fair value of comparable assets. Independent valuations of all immovable properties are performed triennially on a rotational basis. The fair value of real estate investments categorized as NAV consists mainly of investments in real estate private equity funds and is based on the net asset value as reported by each fund's manager, generally using a discounted cash flow analysis or earnings multiples.
(9)Resource and royalties investments categorized as Level 1 are valued based on quoted prices in active markets. Resource and royalties participations traded on a secondary market are valued based on the most recent transaction price and are categorized as Level 2, of which $10 million in 2024 (2023 - $10 million) are included as part of the specialty portfolio strategy. Investments in resource and royalties categorized as Level 3 consist of operating resource and royalties properties and the fair value is based on estimated future net cash flows that are discounted using prevailing market rates for transactions in similar assets. Estimated future net cash flows are based on forecasted oil, gas or other commodity prices and future projected annual production and costs.
(10)The fair value of infrastructure investments categorized as Level 2 is based on the present value of future net cash flows using current market yields for comparable instruments. The fair value of infrastructure funds categorized as NAV is based on the net asset value as reported by each fund's manager, generally using a discounted cash flow analysis or earnings multiples.
(11)Absolute return investments are valued using the net asset value as reported by each fund's independent administrator. All absolute return investments have contractual redemption frequencies, ranging from monthly to annually, and redemption notice periods varying from 5 to 90 days. In 2024, $nil (2023 - $1 million) of absolute return investments are included as part of the specialty portfolio strategy.

Footnotes to the table continue on the following page.
(12)Derivative financial instruments, which are included in total investments, are valued using quoted market prices when available and are categorized as Level 1, or based on valuation techniques using market data when quoted market prices are not available and are categorized as Level 2. The remaining derivatives included within Other are valued at mark-to-market. Derivatives are included in the investment asset categories based on their underlying exposure. The following table presents the fair value asset/unrealized gain or liability/unrealized loss positions and notional values as at December 31, 2024 and 2023:
Year ended December 31, 2024Year ended December 31, 2023
Notional valueFair valueNotional valueFair value
In millionsAsset/unrealized gainLiability/unrealized lossAsset/unrealized gainLiability/unrealized loss
Cash and short-term investments
Foreign exchange forwards$— $— $— $20 $— $— 
Bonds
Bond forwards51 2 (2)1,101 162 (4)
Foreign exchange forwards456 9 (9)71 1 (1)
Options482 9 (5)118 2 (2)
Credit default swaps288 — (6)99 — (2)
Swaps353 11 (1)378 198 (205)
Emerging market debt
Swaps— — — 19 2 — 
Private debt
Foreign exchange forwards149 1 — 101 1 — 
Public equities
Foreign exchange forwards1,879 18 (124)1,434 75 (14)
Swaps2,062 14 (23)2,172 40 (9)
Private equities
Foreign exchange forwards893 2 (5)568 1 (4)
Real estate
Foreign exchange forwards7 — — 11 — — 
Resource and royalties
Commodity swaps37 — (6)99 1 (16)
Infrastructure
Foreign exchange forwards292 2 — 190 2 — 
Absolute return funds
Foreign exchange forwards1,218 5 (1)689 4 — 
Swaps144 1 (1)463 2 — 
Options48 12 — 36 13 — 
Total derivatives included in investments$8,359 $86 $(183)$7,569 $504 $(257)
Other (14)
Interest rate futures320 — — 381 — — 
Foreign currency futures30 — — — — — 
Equity futures166 1 — 348 1 — 
Total derivatives included in plan assets$8,875 $87 $(183)$8,298 $505 $(257)
(13)Investment-related liabilities include securities sold under repurchase agreements. The securities sold under repurchase agreements do not meet the conditions to be removed from the assets and are therefore maintained on the books with an offsetting liability recorded to represent the financing nature of this transaction. These agreements are recorded at cost which together with accrued interest approximates fair value due to their short-term nature.
(14)Other consists of operating assets of $164 million (2023 - $143 million) and liabilities of $71 million (2023 - $171 million) required to administer the Trusts' investment assets and the plans' benefits and funding activities. Such assets and liabilities are valued at cost, except for the interest rate, foreign currency and equity futures margins in Other which are valued at mark-to-market and have not been assigned to a fair value category.
Schedule of derivative instruments included in plan assets Derivative financial instruments, which are included in total investments, are valued using quoted market prices when available and are categorized as Level 1, or based on valuation techniques using market data when quoted market prices are not available and are categorized as Level 2. The remaining derivatives included within Other are valued at mark-to-market. Derivatives are included in the investment asset categories based on their underlying exposure. The following table presents the fair value asset/unrealized gain or liability/unrealized loss positions and notional values as at December 31, 2024 and 2023:
Year ended December 31, 2024Year ended December 31, 2023
Notional valueFair valueNotional valueFair value
In millionsAsset/unrealized gainLiability/unrealized lossAsset/unrealized gainLiability/unrealized loss
Cash and short-term investments
Foreign exchange forwards$— $— $— $20 $— $— 
Bonds
Bond forwards51 2 (2)1,101 162 (4)
Foreign exchange forwards456 9 (9)71 1 (1)
Options482 9 (5)118 2 (2)
Credit default swaps288 — (6)99 — (2)
Swaps353 11 (1)378 198 (205)
Emerging market debt
Swaps— — — 19 2 — 
Private debt
Foreign exchange forwards149 1 — 101 1 — 
Public equities
Foreign exchange forwards1,879 18 (124)1,434 75 (14)
Swaps2,062 14 (23)2,172 40 (9)
Private equities
Foreign exchange forwards893 2 (5)568 1 (4)
Real estate
Foreign exchange forwards7 — — 11 — — 
Resource and royalties
Commodity swaps37 — (6)99 1 (16)
Infrastructure
Foreign exchange forwards292 2 — 190 2 — 
Absolute return funds
Foreign exchange forwards1,218 5 (1)689 4 — 
Swaps144 1 (1)463 2 — 
Options48 12 — 36 13 — 
Total derivatives included in investments$8,359 $86 $(183)$7,569 $504 $(257)
Other (14)
Interest rate futures320 — — 381 — — 
Foreign currency futures30 — — — — — 
Equity futures166 1 — 348 1 — 
Total derivatives included in plan assets$8,875 $87 $(183)$8,298 $505 $(257)
Schedule of obligations and funded status
Obligations and funded status for defined benefit pension and other postretirement benefit plans
PensionsOther postretirement benefits
In millionsYear ended December 31,2024202320242023
Change in benefit obligation
Projected benefit obligation at beginning of year$14,755 $13,909 $145 $147 
Amendments— — — — 
Interest cost669 703 7 7 
Actuarial loss (gain) on projected benefit obligation (1)
(319)1,035 (2)2 
Current service cost91 83 1 1 
Plan participants' contributions63 64 — — 
Foreign currency changes20 (6)3 (1)
Benefit payments, settlements and transfers(1,035)(1,033)(11)(11)
Projected benefit obligation at the end of the year (2)
$14,244 $14,755 $143 $145 
Component representing future salary increases(71)(13)— — 
Accumulated benefit obligation at end of year$14,173 $14,742 $143 $145 
Change in plan assets
Fair value of plan assets at beginning of year$17,533 $16,589 $— $— 
Employer contributions25 25 — — 
Plan participants' contributions63 64 — — 
Foreign currency changes15 (4)— — 
Actual return on plan assets1,834 1,892 — — 
Benefit payments, settlements and transfers(1,035)(1,033)— — 
Fair value of plan assets at end of year (2)
$18,435 $17,533 $— $— 
Funded status - Excess (deficiency) of fair value of plan assets
over projected benefit obligation at end of year
$4,191 $2,778 $(143)$(145)
(1)The pensions' actuarial gain for the year ended December 31, 2024 is mostly due to changes in certain demographic-related assumptions including mortality following an experience study conducted during the year. Substantially all of the pensions’ actuarial loss for the year ended December 31, 2023 is the result of a 62 basis point decrease in the end of year discount rate.
(2)For the CN Pension Plan, as at December 31, 2024, the projected benefit obligation was $13,241 million (2023 - $13,711 million) and the fair value of plan assets was $17,642 million (2023 - $16,762 million). The measurement date of all plans is December 31.
Amounts recognized in the consolidated balance sheet
Amounts recognized in the Consolidated Balance Sheets
PensionsOther postretirement benefits
In millionsAs at December 31,2024202320242023
Noncurrent assets - Pension asset$4,541 $3,140 $— $— 
Current liabilities (Note 14)
— — (10)(12)
Noncurrent liabilities - Pension and other postretirement benefits(350)(362)(133)(133)
Total amount recognized$4,191 $2,778 $(143)$(145)
Amounts recognized in accumulated other comprehensive loss
Amounts recognized in Accumulated other comprehensive loss (Note 20)
PensionsOther postretirement benefits
In millionsAs at December 31,2024202320242023
Net actuarial gain (loss)$(2,019)$(3,052)$26 $30 
Prior service credit (cost)$— $— $15 $19 
Information for the pension plans with an accumulated benefit obligation in excess of plan assets
Information for defined benefit pension plans with an accumulated benefit obligation in excess of plan assets
Pensions
In millionsAs at December 31,20242023
Accumulated benefit obligation (1)
$456 $562 
Fair value of plan assets (1)
$106 $203 
(1)    All of the Company's other postretirement benefit pension plans have an accumulated benefit obligation in excess of plan assets.
Information for the pension plans with a projected benefit obligation in excess of plan assets
Information for defined benefit pension plans with a projected benefit obligation in excess of plan assets
Pensions
In millionsAs at December 31,20242023
Projected benefit obligation$456 $565 
Fair value of plan assets$106 $203 
Components of net periodic benefit cost (income)
Components of net periodic benefit cost (income) for defined benefit pension and other postretirement benefit plans
PensionsOther postretirement benefits
In millionsYear ended December 31,202420232022202420232022
Current service cost$91 $83 $157 $1 $1 $2 
Other components of net periodic benefit cost (income)
Interest cost669 703 468 7 7 5 
Settlement loss— — 1 — — — 
Expected return on plan assets
(1,182)(1,186)(1,132)— — — 
Amortization of prior service cost (credit)— — — (4)(3)(2)
Amortization of net actuarial loss (gain)
62 7 166 (6)(7)(4)
Total Other components of net periodic benefit cost (income)
$(451)$(476)$(497)$(3)$(3)$(1)
Net periodic benefit cost (income)
$(360)$(393)$(340)$(2)$(2)$1 
Weighted-average assumptions used in accounting for pensions and other postretirement benefits
Weighted-average assumptions used in accounting for defined benefit pension and other postretirement benefit plans
PensionsOther postretirement benefits
As at December 31,202420232022202420232022
To determine projected benefit obligation
Discount rate (1)
4.65 %4.64 %5.26 %4.85 %4.71 %5.23 %
Rate of compensation increase (2)
2.75 %2.75 %2.75 %2.75 %2.75 %2.75 %
To determine net periodic benefit cost (income)
Rate to determine current service cost (3)
4.62 %5.25 %3.40 %4.73 %5.17 %3.43 %
Rate to determine interest cost (3)
4.61 %5.21 %2.67 %4.68 %5.23 %2.74 %
Rate of compensation increase (2)
2.75 %2.75 %2.75 %2.75 %2.75 %2.75 %
Expected return on plan assets (4)
7.30 %7.60 %7.00 %N/AN/AN/A
(1)    The Company's discount rate assumption, which is set annually at the end of each year, is determined by management with the aid of third-party actuaries. The discount rate is used to measure the single amount that, if invested at the measurement date in a portfolio of high-quality debt instruments with a rating of AA or better, would provide the necessary cash flows to pay for pension benefits as they become due. For the Canadian pension and other postretirement benefit plans, future expected benefit payments are discounted using spot rates based on a derived AA corporate bond yield curve for each maturity year.
(2)    The rate of compensation increase is determined by the Company based upon its long-term plans for such increases.
(3)    The Company uses the spot rate approach to measure current service cost and interest cost for all defined benefit pension and other postretirement benefit plans. Under the spot rate approach, individual spot discount rates along the same yield curve used in the determination of the projected benefit obligation are applied to the relevant projected cash flows at the relevant maturity.
(4)    The expected long-term rate of return is determined based on expected future performance for each asset class and is weighted based on the investment policy. For 2024, the Company used a long-term rate of return assumption of 7.30% on the market-related value of plan assets to compute net periodic benefit cost (income). The Company has elected to use a market-related value of assets whereby realized and unrealized gains/losses and appreciation/depreciation in the value of investments are recognized over a period of five years, while investment income is recognized immediately. The market-related value is also subject to a corridor approach to not exceed 110% or be less than 90% of the fair value and any amount causing the market-related value to be outside the 10% corridor is recognized immediately in the market-related value of assets. In 2025, the Company will decrease the expected long-term rate of return on plan assets by 20 basis points to 7.10% to reflect management's current view of long-term investment returns.
Estimated future benefit payments
Expected future benefit payments

In millionsPensionsOther postretirement
benefits
2025$1,044 $11 
2026$1,035 $11 
2027$1,024 $11 
2028$1,010 $10 
2029$997 $10 
Years 2030 to 2033
$4,768 $48