

(in millions of Canadian dollars)	CPRL (Parent Guarantor)			CPRC (Subsidiary Issuer)			Non-Guarantor Subsidiaries			Consolidating Adjustments and Eliminations			CPRL Consolidated
Revenues
Freight	$	—		$	1,316		$	538		$	—		$	1,854
Non-freight	—			31			92			(79		)	44
Total revenues	—			1,347			630			(79		)	1,898
Operating expenses
Compensation and benefits	—			246			117			2			365
Fuel	—			177			49			—			226
Materials	—			33			11			3			47
Equipment rents	—			27			6			—			33
Depreciation and amortization	—			105			69			—			174
Purchased services and other	—			224			123			(84		)	263
Total operating expenses	—			812			375			(79		)	1,108
Operating income	—			535			255			—			790
Less:
Other (income) expense	(4		)	(46		)	3			—			(47		)
Other components of net periodic benefit (recovery) expense	—			(97		)	1			—			(96		)
Net interest (income) expense	(2		)	121			(7		)	—			112
Income before income tax expense and equity in net earnings of subsidiaries	6			557			258			—			821
Less: Income tax (recovery) expense	(1		)	142			58			—			199
Add: Equity in net earnings of subsidiaries	615			200			—			(815		)	—
Net income	$	622		$	615		$	200		$	(815	)	$	622



(in millions of Canadian dollars)	CPRL (Parent Guarantor)			CPRC (Subsidiary Issuer)			Non-Guarantor Subsidiaries			Consolidating Adjustments and Eliminations			CPRL Consolidated
Revenues
Freight	$	—		$	1,092		$	455		$	—		$	1,547
Non-freight	—			38			90			(80		)	48
Total revenues	—			1,130			545			(80		)	1,595
Operating expenses
Compensation and benefits	—			218			103			3			324
Fuel	—			116			34			—			150
Materials	—			33			11			1			45
Equipment rents	—			35			—			—			35
Depreciation and amortization	—			108			54			—			162
Purchased services and other	—			195			146			(84		)	257
Total operating expenses	—			705			348			(80		)	973
Operating income	—			425			197			—			622
Less:
Other (income) expense	(10		)	(100		)	5			—			(105		)
Other components of net periodic benefit (recovery) expense	—			(69		)	1			—			(68		)
Net interest (income) expense	(2		)	126			(9		)	—			115
Income before income tax expense and equity in net earnings of subsidiaries	12			468			200			—			680
Less: Income tax expense	7			99			64			—			170
Add: Equity in net earnings of subsidiaries	505			136			—			(641		)	—
Net income	$	510		$	505		$	136		$	(641	)	$	510



(in millions of Canadian dollars)	CPRL (Parent Guarantor)			CPRC (Subsidiary Issuer)			Non-Guarantor Subsidiaries			Consolidating Adjustments and Eliminations			CPRL Consolidated
Revenues
Freight	$	—		$	3,667		$	1,521		$	—		$	5,188
Non-freight	—			89			271			(238		)	122
Total revenues	—			3,756			1,792			(238		)	5,310
Operating expenses
Compensation and benefits	—			740			346			4			1,090
Fuel	—			523			148			—			671
Materials	—			106			38			11			155
Equipment rents	—			88			11			—			99
Depreciation and amortization	—			314			202			—			516
Purchased services and other	—			647			428			(253		)	822
Total operating expenses	—			2,418			1,173			(238		)	3,353
Operating income	—			1,338			619			—			1,957
Less:
Other expense (income)	7			81			(32		)	—			56
Other components of net periodic benefit (recovery) expense	—			(289		)	2			—			(287		)
Net interest expense (income)	4			356			(21		)	—			339
(Loss) income before income tax expense and equity in net earnings of subsidiaries	(11		)	1,190			670			—			1,849
Less: Income tax (recovery) expense	(2		)	327			118			—			443
Add: Equity in net earnings of subsidiaries	1,415			552			—			(1,967		)	—
Net income	$	1,406		$	1,415		$	552		$	(1,967	)	$	1,406



(in millions of Canadian dollars)	CPRL (Parent Guarantor)			CPRC (Subsidiary Issuer)			Non-Guarantor Subsidiaries			Consolidating Adjustments and Eliminations			CPRL Consolidated
Revenues
Freight	$	—		$	3,310		$	1,398		$	—		$	4,708
Non-freight	—			104			278			(249		)	133
Total revenues	—			3,414			1,676			(249		)	4,841
Operating expenses
Compensation and benefits	—			644			320			5			969
Fuel	—			370			110			—			480
Materials	—			101			28			13			142
Equipment rents	—			110			(2		)	—			108
Depreciation and amortization	—			325			168			—			493
Purchased services and other	—			613			466			(267		)	812
Total operating expenses	—			2,163			1,090			(249		)	3,004
Operating income	—			1,251			586			—			1,837
Less:
Other (income) expense	(35		)	(166		)	7			—			(194		)
Other components of net periodic benefit (recovery) expense	—			(206		)	3			—			(203		)
Net interest (income) expense	(9		)	390			(24		)	—			357
Income before income tax expense and equity in net earnings of subsidiaries	44			1,233			600			—			1,877
Less: Income tax expense	9			259			188			—			456
Add: Equity in net earnings of subsidiaries	1,386			412			—			(1,798		)	—
Net income	$	1,421		$	1,386		$	412		$	(1,798	)	$	1,421



(in millions of Canadian dollars)	CPRL (Parent Guarantor)		CPRC (Subsidiary Issuer)			Non-Guarantor Subsidiaries			Consolidating Adjustments and Eliminations			CPRL Consolidated
Net income	$	622	$	615		$	200		$	(815	)	$	622
Net gain (loss) in foreign currency translation adjustments, net of hedging activities	—		96			(84		)	—			12
Change in derivatives designated as cash flow hedges	—		1			—			—			1
Change in pension and post-retirement defined benefit plans	—		27			1			—			28
Other comprehensive income (loss) before income taxes	—		124			(83		)	—			41
Income tax expense on above items	—		(22		)	—			—			(22		)
Equity accounted investments	19		(83		)	—			64			—
Other comprehensive income (loss)	19		19			(83		)	64			19
Comprehensive income	$	641	$	634		$	117		$	(751	)	$	641



(in millions of Canadian dollars)	CPRL (Parent Guarantor)		CPRC (Subsidiary Issuer)			Non-Guarantor Subsidiaries			Consolidating Adjustments and Eliminations			CPRL Consolidated
Net income	$	510	$	505		$	136		$	(641	)	$	510
Net gain (loss) in foreign currency translation adjustments, net of hedging activities	—		180			(161		)	—			19
Change in derivatives designated as cash flow hedges	—		2			—			—			2
Change in pension and post-retirement defined benefit plans	—		36			2			—			38
Other comprehensive income (loss) before income taxes	—		218			(159		)	—			59
Income tax expense on above items	—		(34		)	—			—			(34		)
Equity accounted investments	25		(159		)	—			134			—
Other comprehensive income (loss)	25		25			(159		)	134			25
Comprehensive income (loss)	$	535	$	530		$	(23	)	$	(507	)	$	535



(in millions of Canadian dollars)	CPRL (Parent Guarantor)		CPRC (Subsidiary Issuer)			Non-Guarantor Subsidiaries			Consolidating Adjustments and Eliminations			CPRL Consolidated
Net income	$	1,406	$	1,415		$	552		$	(1,967	)	$	1,406
Net (loss) gain in foreign currency translation adjustments, net of hedging activities	—		(177		)	153			—			(24		)
Change in derivatives designated as cash flow hedges	—		36			—			—			36
Change in pension and post-retirement defined benefit plans	—		82			4			—			86
Other comprehensive (loss) income before income taxes	—		(59		)	157			—			98
Income tax expense on above items	—		(10		)	(1		)	—			(11		)
Equity accounted investments	87		156			—			(243		)	—
Other comprehensive income	87		87			156			(243		)	87
Comprehensive income	$	1,493	$	1,502		$	708		$	(2,210	)	$	1,493



(in millions of Canadian dollars)	CPRL (Parent Guarantor)		CPRC (Subsidiary Issuer)			Non-Guarantor Subsidiaries			Consolidating Adjustments and Eliminations			CPRL Consolidated
Net income	$	1,421	$	1,386		$	412		$	(1,798	)	$	1,421
Net gain (loss) in foreign currency translation adjustments, net of hedging activities	—		342			(304		)	—			38
Change in derivatives designated as cash flow hedges	—		11			—			—			11
Change in pension and post-retirement defined benefit plans	—		108			5			—			113
Other comprehensive income (loss) before income taxes	—		461			(299		)	—			162
Income tax expense on above items	—		(77		)	(1		)	—			(78		)
Equity accounted investments	84		(300		)	—			216			—
Other comprehensive income (loss)	84		84			(300		)	216			84
Comprehensive income	$	1,505	$	1,470		$	112		$	(1,582	)	$	1,505



(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	$	—		$	103		$	47	$	—		$	150
Accounts receivable, net	—			592			167		—			759
Accounts receivable, intercompany	119			128			182		(429		)	—
Short-term advances to affiliates	—			1,049			4,676		(5,725		)	—
Materials and supplies	—			123			33		—			156
Other current assets	—			45			48		(28		)	65
	119			2,040			5,153		(6,182		)	1,130
Long-term advances to affiliates	1,090			5			88		(1,183		)	—
Investments	—			35			166		—			201
Investments in subsidiaries	11,366			11,728			—		(23,094		)	—
Properties	—			9,395			8,397		—			17,792
Goodwill and intangible assets	—			—			192		—			192
Pension asset	—			1,726			—		—			1,726
Other assets	—			57			11		—			68
Deferred income taxes	6			—			—		(6		)	—
Total assets	$	12,581		$	24,986		$	14,007	$	(30,465	)	$	21,109
Liabilities and shareholders’ equity
Current liabilities
Accounts payable and accrued liabilities	$	93		$	822		$	302	$	(28	)	$	1,189
Accounts payable, intercompany	4			297			128		(429		)	—
Short-term advances from affiliates	5,356			366			3		(5,725		)	—
Long-term debt maturing within one year	—			480			—		—			480
	5,453			1,965			433		(6,182		)	1,669
Pension and other benefit liabilities	—			668			78		—			746
Long-term advances from affiliates	—			1,178			5		(1,183		)	—
Other long-term liabilities	—			114			118		—			232
Long-term debt	—			7,754			52		—			7,806
Deferred income taxes	—			1,941			1,593		(6		)	3,528
Total liabilities	5,453			13,620			2,279		(7,371		)	13,981
Shareholders’ equity
Share capital	2,017			538			6,127		(6,665		)	2,017
Additional paid-in capital	47			1,653			92		(1,745		)	47
Accumulated other comprehensive (loss) income	(1,654		)	(1,654		)	571		1,083			(1,654		)
Retained earnings	6,718			10,829			4,938		(15,767		)	6,718
	7,128			11,366			11,728		(23,094		)	7,128
Total liabilities and shareholders’ equity	$	12,581		$	24,986		$	14,007	$	(30,465	)	$	21,109



(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	$	—		$	241		$	97	$	—		$	338
Accounts receivable, net	—			508			179		—			687
Accounts receivable, intercompany	97			153			215		(465		)	—
Short-term advances to affiliates	500			1,004			4,996		(6,500		)	—
Materials and supplies	—			120			32		—			152
Other current assets	—			31			66		—			97
	597			2,057			5,585		(6,965		)	1,274
Long-term advances to affiliates	590			—			410		(1,000		)	—
Investments	—			27			155		—			182
Investments in subsidiaries	10,623			12,122			—		(22,745		)	—
Properties	—			8,982			8,034		—			17,016
Goodwill and intangible assets	—			—			187		—			187
Pension asset	—			1,407			—		—			1,407
Other assets	—			56			13		—			69
Deferred income taxes	3			—			—		(3		)	—
Total assets	$	11,813		$	24,651		$	14,384	$	(30,713	)	$	20,135
Liabilities and shareholders’ equity
Current liabilities
Accounts payable and accrued liabilities	$	82		$	844		$	312	$	—		$	1,238
Accounts payable, intercompany	3			309			153		(465		)	—
Short-term advances from affiliates	5,291			1,185			24		(6,500		)	—
Long-term debt maturing within one year	—			746			—		—			746
	5,376			3,084			489		(6,965		)	1,984
Pension and other benefit liabilities	—			672			77		—			749
Long-term advances from affiliates	—			1,000			—		(1,000		)	—
Other long-term liabilities	—			108			123		—			231
Long-term debt	—			7,362			51		—			7,413
Deferred income taxes	—			1,802			1,522		(3		)	3,321
Total liabilities	5,376			14,028			2,262		(7,968		)	13,698
Shareholders’ equity
Share capital	2,032			1,037			6,730		(7,767		)	2,032
Additional paid-in capital	43			1,643			259		(1,902		)	43
Accumulated other comprehensive (loss) income	(1,741		)	(1,742		)	417		1,325			(1,741		)
Retained earnings	6,103			9,685			4,716		(14,401		)	6,103
	6,437			10,623			12,122		(22,745		)	6,437
Total liabilities and shareholders’ equity	$	11,813		$	24,651		$	14,384	$	(30,713	)	$	20,135



(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	$	87		$	416		$	319		$	(149	)	$	673
Investing activities
Additions to properties	—			(303		)	(127		)	—			(430		)
Proceeds from sale of properties and other assets	—			4			3			—			7
Advances to affiliates	—			—			(209		)	209			—
Repayment of advances to affiliates	—			499			345			(844		)	—
Repurchase of share capital from affiliates	500			236			—			(736		)	—
Cash provided by (used in) investing activities	500			436			12			(1,371		)	(423		)
Financing activities
Dividends paid	(92		)	(92		)	(57		)	149			(92		)
Return of share capital to affiliates	—			(500		)	(236		)	736			—
Issuance of CP Common Shares	4			—			—			—			4
Repayment of long-term debt, excluding commercial paper	—			(5		)	—			—			(5		)
Net repayment of commercial paper	—			(53		)	—			—			(53		)
Advances from affiliates	209			—			—			(209		)	—
Repayment of advances from affiliates	(708		)	(136		)	—			844			—
Cash used in financing activities	(587		)	(786		)	(293		)	1,520			(146		)
Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents	—			17			(22		)	—			(5		)
Cash position
Increase in cash and cash equivalents	—			83			16			—			99
Cash and cash equivalents at beginning of period	—			20			31			—			51
Cash and cash equivalents at end of period	$	—		$	103		$	47		$	—		$	150



(in millions of Canadian dollars)	CPRL (Parent Guarantor)			CPRC (Subsidiary Issuer)			Non-Guarantor Subsidiaries			Consolidating Adjustments and Eliminations			CPRL Consolidated
Cash provided by operating activities	$	98		$	322		$	213		$	(106	)	$	527
Investing activities
Additions to properties	—			(193		)	(126		)	—			(319		)
Proceeds from sale of properties and other assets	—			11			2			—			13
Advances to affiliates	—			—			(50		)	50			—
Repayment of advances to affiliates	159			1			—			(160		)	—
Capital contributions to affiliates	—			(26		)	—			26			—
Repurchase of share capital from affiliates	—			32			—			(32		)	—
Cash provided by (used in) investing activities	159			(175		)	(174		)	(116		)	(306		)
Financing activities
Dividends paid	(83		)	(83		)	(23		)	106			(83		)
Issuance of share capital	—			—			26			(26		)	—
Return of share capital to affiliates	—			—			(32		)	32			—
Issuance of CP Common Shares	2			—			—			—			2
Purchase of CP Common Shares	(226		)	—			—			—			(226		)
Repayment of long-term debt, excluding commercial paper	—			(3		)	—			—			(3		)
Advances from affiliates	50			—			—			(50		)	—
Repayment of advances from affiliates	—			(159		)	(1		)	160			—
Cash used in financing activities	(257		)	(245		)	(30		)	222			(310		)
Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents	—			(2		)	(5		)	—			(7		)
Cash position
(Decrease) increase in cash and cash equivalents	—			(100		)	4			—			(96		)
Cash and cash equivalents at beginning of period	—			178			60			—			238
Cash and cash equivalents at end of period	$	—		$	78		$	64		$	—		$	142



(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	$	235		$	1,309		$	782		$	(545	)	$	1,781
Investing activities
Additions to properties	—			(701		)	(383		)	—			(1,084		)
Proceeds from sale of properties and other assets	—			10			6			—			16
Advances to affiliates	—			(63		)	(209		)	272			—
Repayment of advances to affiliates	—			—			840			(840		)	—
Repurchase of share capital from affiliates	500			783			—			(1,283		)	—
Other	—			—			(1		)	—			(1		)
Cash provided by (used in) investing activities	500			29			253			(1,851		)	(1,069		)
Financing activities
Dividends paid	(255		)	(255		)	(290		)	545			(255		)
Return of share capital to affiliates	—			(500		)	(783		)	1,283			—
Issuance of CP Common Shares	16			—			—			—			16
Purchase of CP Common Shares	(559		)	—			—			—			(559		)
Issuance of long-term debt, excluding commercial paper	—			638			—			—			638
Repayment of long-term debt, excluding commercial paper	—			(744		)	—			—			(744		)
Advances from affiliates	272			—			—			(272		)	—
Repayment of advances from affiliates	(209		)	(631		)	—			840			—
Cash used in financing activities	(735		)	(1,492		)	(1,073		)	2,396			(904		)
Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents	—			16			(12		)	—			4
Cash position
Decrease in cash and cash equivalents	—			(138		)	(50		)	—			(188		)
Cash and cash equivalents at beginning of year	—			241			97			—			338
Cash and cash equivalents at end of year	$	—		$	103		$	47		$	—		$	150



(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	$	256		$	875		$	716		$	(398	)	$	1,449
Investing activities
Additions to properties	—			(494		)	(401		)	—			(895		)
Proceeds from sale of properties and other assets	—			17			12			—			29
Advances to affiliates	(1,079		)	(550		)	(1,157		)	2,786			—
Capital contributions to affiliates	—			(1,039		)	—			1,039			—
Repurchase of share capital from affiliates	—			32			—			(32		)	—
Other	—			6			(1		)	—			5
Cash used in investing activities	(1,079		)	(2,028		)	(1,547		)	3,793			(861		)
Financing activities
Dividends paid	(229		)	(229		)	(169		)	398			(229		)
Issuance of share capital	—			—			1,039			(1,039		)	—
Return of share capital to affiliates	—			—			(32		)	32			—
Issuance of CP Common Shares	39			—			—			—			39
Purchase of CP Common Shares	(368		)	—			—			—			(368		)
Repayment of long-term debt, excluding commercial paper	—			(17		)	—			—			(17		)
Advances from affiliates	1,381			1,405			—			(2,786		)	—
Settlement of forward starting swaps on de-designation	—			(22		)	—			—			(22		)
Cash provided by (used in) financing activities	823			1,137			838			(3,395		)	(597		)
Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents	—			(6		)	(7		)	—			(13		)
Cash position
Decrease in cash and cash equivalents	—			(22		)	—			—			(22		)
Cash and cash equivalents at beginning of year	—			100			64			—			164
Cash and cash equivalents at end of year	$	—		$	78		$	64		$	—		$	142