Condensed Consolidating Financial Information (Tables)

3 Months Ended

Mar. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Interim Condensed Consolidating Statements of Income

For the three months ended March 31, 2016



(in millions of Canadian dollars)	CPRL (Parent Guarantor)			CPRC (Subsidiary Issuer)			Non-Guarantor Subsidiaries			Consolidating Adjustments and Eliminations			CPRL Consolidated
Revenues
Freight	$	—		$	1,097		$	451		$	—		$	1,548
Non-freight	—			33			96			(86		)	43
Total revenues	—			1,130			547			(86		)	1,591
Operating expenses
Compensation and benefits	—			201			126			2			329
Fuel	—			103			22			—			125
Materials	—			38			10			8			56
Equipment rents	—			54			(9		)	—			45
Depreciation and amortization	—			107			55			—			162
Purchased services and other	—			136			181			(96		)	221
Total operating expenses	—			639			385			(86		)	938
Operating income	—			491			162			—			653
Less:
Other income and charges	(69		)	(138		)	26			—			(181		)
Net interest (income) expense	(1		)	131			(6		)	—			124
Income before income tax expense and equity in net earnings of subsidiaries	70			498			142			—			710
Less: Income tax expense	9			111			50			—			170
Add: Equity in net earnings of subsidiaries	479			92			—			(571		)	—
Net income	$	540		$	479		$	92		$	(571	)	$	540

Interim Condensed Consolidating Statements of Income

For the three months ended March 31, 2015



(in millions of Canadian dollars)	CPRL (Parent Guarantor)			CPRC (Subsidiary Issuer)		Non-Guarantor Subsidiaries			Consolidating Adjustments and Eliminations			CPRL Consolidated
Revenues
Freight	$	—		$	1,119	$	511		$	—		$	1,630
Non-freight	—			29		89			(83		)	35
Total revenues	—			1,148		600			(83		)	1,665
Operating expenses
Compensation and benefits	—			262		116			—			378
Fuel	—			161		34			—			195
Materials	—			43		9			—			52
Equipment rents	—			36		6			—			42
Depreciation and amortization	—			102		44			—			146
Purchased services and other	—			142		181			(83		)	240
Total operating expenses	—			746		390			(83		)	1,053
Operating income	—			402		210			—			612
Less:
Other income and charges	18			86		(31		)	—			73
Net interest expense (income)	—			96		(11		)	—			85
(Loss) income before income tax expense and equity in net earnings of subsidiaries	(18		)	220		252			—			454
Less: Income tax (recovery) expense	(4		)	67		71			—			134
Add: Equity in net earnings of subsidiaries	334			181		—			(515		)	—
Net income	$	320		$	334	$	181		$	(515	)	$	320

Interim Condensed Consolidating Statements of Comprehensive Income

For the three months ended March 31, 2016



(in millions of Canadian dollars)	CPRL (Parent Guarantor)			CPRC (Subsidiary Issuer)			Non-Guarantor Subsidiaries			Consolidating Adjustments and Eliminations			CPRL Consolidated
Net income	$	540		$	479		$	92		$	(571	)	$	540
Net gain (loss) in foreign currency translation adjustments, net of hedging activities	—			310			(273		)	—			37
Change in derivatives designated as cash flow hedges	—			(47		)	—			—			(47		)
Change in pension and post-retirement defined benefit plans	—			45			2			—			47
Other comprehensive income (loss) before income taxes	—			308			(271		)	—			37
Income tax expense on above items	—			(41		)	—			—			(41		)
Equity accounted investments	(4		)	(271		)	—			275			—
Other comprehensive loss	(4		)	(4		)	(271		)	275			(4		)
Comprehensive income (loss)	$	536		$	475		$	(179	)	$	(296	)	$	536

Interim Condensed Consolidating Statements of Comprehensive Income

For the three months ended March 31, 2015



(in millions of Canadian dollars)	CPRL (Parent Guarantor)		CPRC (Subsidiary Issuer)			Non-Guarantor Subsidiaries			Consolidating Adjustments and Eliminations			CPRL Consolidated
Net income	$	320	$	334		$	181		$	(515	)	$	320
Net (loss) gain in foreign currency translation adjustments, net of hedging activities	—		(357		)	320			—			(37		)
Change in derivatives designated as cash flow hedges	—		(69		)	—			—			(69		)
Change in pension and post-retirement defined benefit plans	—		70			2			—			72
Other comprehensive (loss) income before income taxes	—		(356		)	322			—			(34		)
Income tax recovery (expense) on above items	—		68			(22		)	—			46
Equity accounted investments	12		300			—			(312		)	—
Other comprehensive income	12		12			300			(312		)	12
Comprehensive income	$	332	$	346		$	481		$	(827	)	$	332

Interim Condensed Consolidating Balance Sheets

As at March 31, 2016



(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	$	—		$	376		$	195	$	—		$	571
Accounts receivable, net	—			470			159		—			629
Accounts receivable, inter-company	61			101			179		(341		)	—
Short-term advances to affiliates	45			19			3,475		(3,539		)	—
Materials and supplies	—			150			31		—			181
Other current assets	—			50			19		—			69
	106			1,166			4,058		(3,880		)	1,450
Long-term advances to affiliates	501			208			352		(1,061		)	—
Investments	—			23			125		—			148
Investments in subsidiaries	7,948			9,657			—		(17,605		)	—
Properties	—			8,456			7,557		—			16,013
Goodwill and intangible assets	—			—			196		—			196
Pension asset	—			1,489			—		—			1,489
Other assets	—			46			7		—			53
Deferred income taxes	16			—			—		(16		)	—
Total assets	$	8,571		$	21,045		$	12,295	$	(22,562	)	$	19,349
Liabilities and shareholders’ equity
Current liabilities
Accounts payable and accrued liabilities	$	53		$	853		$	237	$	—		$	1,143
Accounts payable, inter-company	2			239			100		(341		)	—
Short-term advances from affiliates	3,226			294			19		(3,539		)	—
Long-term debt maturing within one year	—			23			—		—			23
	3,281			1,409			356		(3,880		)	1,166
Pension and other benefit liabilities	—			673			77		—			750
Long-term advances from affiliates	—			854			207		(1,061		)	—
Other long-term liabilities	—			165			126		—			291
Long-term debt	—			8,369			61		—			8,430
Deferred income taxes	—			1,627			1,811		(16		)	3,422
Total liabilities	3,281			13,097			2,638		(4,957		)	14,059
Shareholders’ equity
Share capital	2,065			1,037			5,459		(6,496		)	2,065
Additional paid-in capital	48			1,573			623		(2,196		)	48
Accumulated other comprehensive (loss) income	(1,481		)	(1,481		)	569		912			(1,481		)
Retained earnings	4,658			6,819			3,006		(9,825		)	4,658
	5,290			7,948			9,657		(17,605		)	5,290
Total liabilities and shareholders’ equity	$	8,571		$	21,045		$	12,295	$	(22,562	)	$	19,349

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

Interim Condensed Consolidating Statements of Cash Flows

For the three months ended March 31, 2016



(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	$	23		$	51		$	198		$	(54	)	$	218
Investing activities
Additions to properties	—			(132		)	(146		)	—			(278		)
Proceeds from sale of properties and other assets	—			57			3			—			60
Advances to affiliates	—			(35		)	—			35			—
Capital contributions to affiliates	—			(9		)	—			9			—
Repurchase of share capital from affiliates	—			6			—			(6		)	—
Cash used in investing activities	—			(113		)	(143		)	38			(218		)
Financing activities
Dividends paid	(54		)	(54		)	—			54			(54		)
Issuance of share capital	—			—			9			(9		)	—
Return of share capital to affiliates	—			—			(6		)	6			—
Issuance of CP Common Shares	5			—			—			—			5
Repayment of long-term debt, excluding commercial paper	—			(4		)	(7		)	—			(11		)
Advances from affiliates	26			—			9			(35		)	—
Other	—			(2		)	—			—			(2		)
Cash (used in) provided by financing activities	(23		)	(60		)	5			16			(62		)
Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents	—			(4		)	(13		)	—			(17		)
Cash position
(Decrease) increase in cash and cash equivalents	—			(126		)	47			—			(79		)
Cash and cash equivalents at beginning of period	—			502			148			—			650
Cash and cash equivalents at end of period	$	—		$	376		$	195		$	—		$	571

Interim Condensed Consolidating Statements of Cash Flows

For the three months ended March 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	$	56		$	299		$	273		$	(73	)	$	555
Investing activities
Additions to properties	—			(93		)	(170		)	—			(263		)
Proceeds from sale of properties and other assets	—			50			2			—			52
Advances to affiliates	—			(303		)	(229		)	532			—
Capital contributions to affiliates	—			(117		)	—			117			—
Other	—			20			—			—			20
Cash used in investing activities	—			(443		)	(397		)	649			(191		)
Financing activities
Dividends paid	(58		)	(58		)	(15		)	73			(58		)
Issuance of share capital	—			—			117			(117		)	—
Issuance of CP Common Shares	16			—			—			—			16
Purchase of CP Common Shares	(529		)	—			—			—			(529		)
Issuance of long-term debt, excluding commercial paper	—			810			—			—			810
Repayment of long-term debt, excluding commercial paper	—			(14		)	(44		)	—			(58		)
Net repayment of commercial paper	—			(593		)	—			—			(593		)
Advances from affiliates	515			—			17			(532		)	—
Cash (used in) provided by financing activities	(56		)	145			75			(576		)	(412		)
Effect of foreign currency fluctuations on U.S. dollar-denominated cash and cash equivalents	—			—			6			—			6
Cash position
Increase (decrease) in cash and cash equivalents	—			1			(43		)	—			(42		)
Cash and cash equivalents at beginning of period	—			152			74			—			226
Cash and cash equivalents at end of period	$	—		$	153		$	31		$	—		$	184