Condensed Consolidating Financial Information (Tables)

12 Months Ended

Dec. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidating Statements of Income

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

YEAR ENDED DECEMBER 31, 2015                    

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

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

YEAR ENDED DECEMBER 31, 2014                    

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

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

YEAR ENDED DECEMBER 31, 2013                    

(in millions of Canadian dollars)	CPRL (Parent Guarantor)			CPRC (Subsidiary Issuer)		Non-Guarantor Subsidiaries			Consolidating Adjustments and Eliminations			CPRL Consolidated
Revenues
Freight	$	—		$	4,201	$	1,781		$	—		$	5,982
Non-freight	—			128		364			(341		)	151
Total revenues	—			4,329		2,145			(341		)	6,133
Operating expenses
Compensation and benefits	—			1,021		357			—			1,378
Fuel	—			751		253			—			1,004
Materials	—			125		35			—			160
Equipment rents	—			150		23			—			173
Depreciation and amortization	—			416		149			—			565
Purchased services and other	—			690		649			(341		)	998
Asset impairment	—			—		435			—			435
Total operating expenses	—			3,153		1,901			(341		)	4,713
Operating income	—			1,176		244			—			1,420
Less:
Other income and charges	1			28		(12		)	—			17
Net interest (income) expense	(1		)	211		68			—			278
Income before income tax expense and equity in net earnings of subsidiaries	—			937		188			—			1,125
Less: Income tax expense	—			243		7			—			250
Add: Equity in net earnings of subsidiaries	875			181		—			(1,056		)	—
Net income	$	875		$	875	$	181		$	(1,056	)	$	875

Condensed Consolidating Statements of Comprehensive Income

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

YEAR ENDED DECEMBER 31, 2015                    

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

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

YEAR ENDED DECEMBER 31, 2014                    

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

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

YEAR ENDED DECEMBER 31, 2013                    

(in millions of Canadian dollars)	CPRL (Parent Guarantor)		CPRC (Subsidiary Issuer)			Non-Guarantor Subsidiaries			Consolidating Adjustments and Eliminations			CPRL Consolidated
Net income	$	875	$	875		$	181		$	(1,056	)	$	875
Net (loss) gain in foreign currency translation adjustments, net of hedging activities	—		(219		)	222			—			3
Change in derivatives designated as cash flow hedges	—		(1		)	—			—			(1		)
Change in pension and post-retirement defined benefit plans	—		1,631			50			—			1,681
Other comprehensive income before    income taxes	—		1,411			272			—			1,683
Income tax recovery on above items	—		(400		)	(18		)	—			(418		)
Equity accounted investments	1,265		254			—			(1,519		)	—
Other comprehensive income	1,265		1,265			254			(1,519		)	1,265
Comprehensive income	$	2,140	$	2,140		$	435		$	(2,575	)	$	2,140

Condensed Consolidating Balance Sheets

CONDENSED CONSOLIDATING BALANCE SHEETS

AS AT DECEMBER 31, 2015                    

(in millions of Canadian dollars)	CPRL (Parent Guarantor)			CPRC (Subsidiary Issuer)			Non-Guarantor Subsidiaries		Consolidating Adjustments and Eliminations			CPRL Consolidated
Assets
Current assets
Cash and cash equivalents	$	—		$	502		$	148	$	—		$	650
Accounts receivable, net	—			452			193		—			645
Accounts receivable, inter-company	59			105			265		(429		)	—
Short-term advances to affiliates	—			75			3,483		(3,558		)	—
Materials and supplies	—			154			34		—			188
Other current assets	—			37			17		—			54
	59			1,325			4,140		(3,987		)	1,537
Long-term advances to affiliates	501			207			376		(1,084		)	—
Investments	—			22			130		—			152
Investments in subsidiaries	7,518			9,832			—		(17,350		)	—
Properties	—			8,481			7,792		—			16,273
Goodwill and intangible assets	—			3			208		—			211
Pension asset	—			1,401			—		—			1,401
Other assets	—			55			8		—			63
Deferred income taxes	25			—			—		(25		)	—
Total assets	$	8,103		$	21,326		$	12,654	$	(22,446	)	$	19,637
Liabilities and shareholders’ equity
Current liabilities
Accounts payable and accrued liabilities	$	54		$	1,122		$	241	$	—		$	1,417
Accounts payable, inter-company	—			325			104		(429		)	—
Short-term advances from affiliates	3,253			230			75		(3,558		)	—
Long-term debt maturing within one year	—			24			6		—			30
	3,307			1,701			426		(3,987		)	1,447
Pension and other benefit liabilities	—			676			82		—			758
Long-term advances from affiliates	—			877			207		(1,084		)	—
Other long-term liabilities	—			186			132		—			318
Long-term debt	—			8,863			64		—			8,927
Deferred income taxes	—			1,505			1,911		(25		)	3,391
Total liabilities	3,307			13,808			2,822		(5,096		)	14,841
Shareholders’ equity
Share capital	2,058			1,037			5,465		(6,502		)	2,058
Additional paid-in capital	43			1,568			613		(2,181		)	43
Accumulated other comprehensive (loss) income	(1,477		)	(1,477		)	840		637			(1,477		)
Retained earnings	4,172			6,390			2,914		(9,304		)	4,172
	4,796			7,518			9,832		(17,350		)	4,796
Total liabilities and shareholders’ equity	$	8,103		$	21,326		$	12,654	$	(22,446	)	$	19,637

CONDENSED CONSOLIDATING BALANCE SHEETS

AS AT DECEMBER 31, 2014                    

(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	$	—		$	152		$	74	$	—		$	226
Accounts receivable, net	—			490			212		—			702
Accounts receivable, inter-company	58			147			230		(435		)	—
Short-term advances to affiliates	—			170			1,974		(2,144		)	—
Materials and supplies	—			137			40		—			177
Other current assets	—			27			89		—			116
	58			1,123			2,619		(2,579		)	1,221
Long-term advances to affiliates	1			207			1,316		(1,524		)	—
Investments	—			15			97		—			112
Investments in subsidiaries	7,618			8,231			—		(15,849		)	—
Properties	—			7,976			6,462		—			14,438
Assets held for sale	—			8			174		—			182
Goodwill and intangible assets	—			—			176		—			176
Pension asset	—			304			—		—			304
Other assets	—			94			23		—			117
Deferred income taxes	4			15			37		(56		)	—
Total assets	$	7,681		$	17,973		$	10,904	$	(20,008	)	$	16,550
Liabilities and shareholders’ equity
Current liabilities
Accounts payable and accrued liabilities	$	97		$	896		$	284	$	—		$	1,277
Accounts payable, inter-company	—			288			147		(435		)	—
Short-term advances from affiliates	1,974			—			170		(2,144		)	—
Long-term debt maturing within one year	—			91			43		—			134
	2,071			1,275			644		(2,579		)	1,411
Pension and other benefit liabilities	—			692			63		—			755
Long-term advances from affiliates	—			1,316			208		(1,524		)	—
Other long-term liabilities	—			286			146		—			432
Long-term debt	—			5,570			55		—			5,625
Deferred income taxes	—			1,216			1,557		(56		)	2,717
Total liabilities	2,071			10,355			2,673		(4,159		)	10,940
Shareholders’ equity
Share capital	2,185			1,037			5,122		(6,159		)	2,185
Additional paid-in capital	36			1,547			569		(2,116		)	36
Accumulated other comprehensive loss	(2,219		)	(2,219		)	170		2,049			(2,219		)
Retained earnings	5,608			7,253			2,370		(9,623		)	5,608
	5,610			7,618			8,231		(15,849		)	5,610
Total liabilities and shareholders’ equity	$	7,681		$	17,973		$	10,904	$	(20,008	)	$	16,550

Condensed Consolidating Statements of Cash Flows

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

YEAR ENDED DECEMBER 31, 2015                    

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

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

YEAR ENDED DECEMBER 31, 2014                    

(in millions of Canadian dollars)	CPRL (Parent Guarantor)			CPRC (Subsidiary Issuer)			Non-Guarantor Subsidiaries			Consolidating Adjustments and Eliminations			CPRL Consolidated
Cash provided by operating activities	$	183		$	1,684		$	604		$	(348	)	$	2,123
Investing activities
Additions to properties	—			(816		)	(702		)	69			(1,449		)
Proceeds from the sale of west end of Dakota, Minnesota and Eastern Railroad	—			—			236			—			236
Proceeds from sale of properties and other assets	—			116			5			(69		)	52
Advances to affiliates	—			(611		)	(2,636		)	3,247			—
Repayment of advances to affiliates	—			2,167			1,592			(3,759		)	—
Capital contributions to affiliates	—			(2,927		)	—			2,927			—
Change in restricted cash and cash equivalents used to collateralize letters of credit	—			411			—			—			411
Other	—			2			(2		)	—			—
Cash used in investing activities	—			(1,658		)	(1,507		)	2,415			(750		)
Financing activities
Dividends paid	(244		)	(182		)	(166		)	348			(244		)
Issuance of share capital	—			—			2,927			(2,927		)	—
Issuance of CP Common Shares	62			—			—			—			62
Purchase of CP Common Shares	(2,050		)	—			—			—			(2,050		)
Repayment of long-term debt, excluding commercial paper	—			(174		)	(9		)	—			(183		)
Net issuance of commercial paper	—			771			—			—			771
Settlement of foreign exchange forward on long-term debt	—			17			—			—			17
Advances from affiliates	2,049			1,198			—			(3,247		)	—
Repayment of advances from affiliates	—			(1,592		)	(2,167		)	3,759			—
Other	—			—			(3		)	—			(3		)
Cash (used in) provided by financing activities	(183		)	38			582			(2,067		)	(1,630		)
Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents	—			(3		)	10			—			7
Cash position
Increase (decrease) in cash and cash equivalents	—			61			(311		)	—			(250		)
Cash and cash equivalents at beginning of year	—			91			385			—			476
Cash and cash equivalents at end of year	$	—		$	152		$	74		$	—		$	226

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

YEAR ENDED DECEMBER 31, 2013                    

(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	$	123		$	1,327		$	707		$	(207	)	$	1,950
Investing activities
Additions to properties	—			(882		)	(470		)	116			(1,236		)
Proceeds from sale of properties and other assets	—			65			124			(116		)	73
Advances to affiliates	—			—			(137		)	137			—
Repayment of advances to affiliates	—			—			84			(84		)	—
Capital contributions to affiliates	—			(100		)	—			100			—
Change in restricted cash and cash equivalents used to collateralize letters of credit	—			(411		)	—			—			(411		)
Other	—			(21		)	(2		)	—			(23		)
Cash used in investing activities	—			(1,349		)	(401		)	153			(1,597		)
Financing activities
Dividends paid	(244		)	(123		)	(84		)	207			(244		)
Issuance of share capital	—			—			100			(100		)	—
Issuance of CP Common Shares	83			—			—			—			83
Issuance of long-term debt, excluding commercial paper	—			60			(60		)	—			—
Repayment of long-term debt, excluding commercial paper	—			(48		)	(8		)	—			(56		)
Advances from affiliates	38			99			—			(137		)	—
Repayment of advances from affiliates	—			(84		)	—			84			—
Other	—			(3		)	—			—			(3		)
Cash used in financing activities	(123		)	(99		)	(52		)	54			(220		)
Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents	—			1			9			—			10
Cash position
(Decrease) increase in cash and cash equivalents	—			(120		)	263			—			143
Cash and cash equivalents at beginning of year	—			211			122			—			333
Cash and cash equivalents at end of year	$	—		$	91		$	385		$	—		$	476