CANADIAN PACIFIC KANSAS CITY LTD/CN, 10-K filed on 2/27/2024
Annual Report
v3.24.0.1
Cover - CAD ($)
 12 Months Ended
Dec. 31, 2023
Feb. 26, 2024
Jun. 30, 2023
Entity Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2023    
Current Fiscal Year End Date --12-31    
Document Transition Report false    
Entity File Number 001-01342    
Entity Registrant Name CANADIAN PACIFIC KANSAS CITY LTD/CN    
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, State or Province AB    
Entity Address, Postal Zip Code T2C 4X9    
City Area Code (403)    
Local Phone Number 319-7000    
Entity Address, City or Town Calgary    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
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    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Entity Public Float     $ 75,204,483,138
Entity Common Stock, Shares Outstanding   932,428,454  
Documents Incorporated by Reference
Not applicable.
    
Amendment Flag false    
Document Fiscal Year Focus 2023    
Document Fiscal Period Focus FY    
Entity Central Index Key 0000016875    
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 Kansas City Limited    
Trading Symbol CP    
Common Shares, without par value, of Canadian Pacific Railway Limited | NEW YORK STOCK EXCHANGE      
Entity Information [Line Items]      
Title of 12(b) Security Common Shares, without par value, of Canadian Pacific Kansas City Limited    
Trading Symbol CP    
Security Exchange Name NYSE    
Perpetual 4% Consolidated Debenture Stock of Canadian Pacific Railway Company | NEW YORK STOCK EXCHANGE      
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    
Perpetual 4% Consolidated Debenture Stock of Canadian Pacific Railway Company | LONDON STOCK EXCHANGE      
Entity Information [Line Items]      
Title of 12(b) Security Perpetual 4% Consolidated Debenture Stock of Canadian Pacific Railway Company    
Trading Symbol BC87    
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Audit Information
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Audit Information [Abstract]      
Auditor Name Ernst & Young LLP Ernst & Young LLP Deloitte LLP
Auditor Location Calgary, Canada Calgary, Canada Calgary, Canada
Auditor Firm ID 1263 1263 1208
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CONSOLIDATED STATEMENTS OF INCOME - CAD ($)
shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Revenues (Note 4)      
Total revenues $ 12,555 $ 8,814 $ 7,995
Operating expenses      
Compensation and benefits (Note 11, 23, 24) 2,332 1,570 1,570
Fuel 1,681 1,400 854
Materials (Note 11) 346 260 215
Equipment rents 277 140 121
Depreciation and amortization (Note 11, 13, 15) 1,543 853 811
Purchased services and other (Note 10, 11, 26) 1,988 1,262 1,218
Total operating expenses 8,167 5,485 4,789
Operating income 4,388 3,329 3,206
Less:      
Equity (earnings) loss of Kansas City Southern (Note 11, 12) (230) (1,074) 141
Other expense (Note 5, 11) 52 17 237
Merger termination fee (Note 11) 0 0 (845)
Other components of net periodic benefit recovery (Note 23) (327) (411) (387)
Net interest expense (Note 11) 771 652 440
Remeasurement loss of Kansas City Southern (Note 11) 7,175 0 0
(Loss) income before income tax (recovery) expense (3,053) 4,145 3,620
Current income tax expense (Note 6) 909 492 526
Deferred income tax (recovery) expense (Note 6) (7,885) 136 242
Total income tax (recovery) expense (6,976) 628 768
Net income 3,923 3,517 2,852
Less: Net loss attributable to non-controlling interest (Note 11) (4) 0 0
Net income attributable to controlling shareholders $ 3,927 $ 3,517 $ 2,852
Earnings per share (Note 7)      
Basic earnings per share (cad per share) $ 4.22 $ 3.78 $ 4.20
Diluted earnings per share (cad per share) $ 4.21 $ 3.77 $ 4.18
Weighted-average number of shares (millions) (Note 7)      
Basic (in shares) 931.3 930.0 679.7
Diluted (in shares) 933.7 932.9 682.8
Freight      
Revenues (Note 4)      
Total revenues $ 12,281 $ 8,627 $ 7,816
Non-freight      
Revenues (Note 4)      
Total revenues $ 274 $ 187 $ 179
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - CAD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Statement of Comprehensive Income [Abstract]      
Net income (loss) $ 3,923 $ 3,517 $ 2,852
Net (loss) gain in foreign currency translation adjustments, net of hedging activities (655) 1,628 (291)
Change in derivatives designated as cash flow hedges 7 6 48
Change in pension and post-retirement defined benefit plans (73) 680 1,286
Other comprehensive income (loss) from equity investees 7 (5) 9
Other comprehensive (loss) income before income taxes (714) 2,309 1,052
Income tax expense on above items (4) (115) (341)
Net other comprehensive income (loss) (718) 2,194 711
Comprehensive income 3,205 5,711 3,563
Comprehensive loss attributable to the non-controlling interest (13) 0 0
Comprehensive income attributable to controlling shareholders $ 3,218 $ 5,711 $ 3,563
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CONSOLIDATED BALANCE SHEETS - CAD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Current assets    
Cash and cash equivalents $ 464 $ 451
Accounts receivable, net (Note 9) 1,887 1,016
Materials and supplies 400 284
Other current assets 251 138
Total current assets 3,002 1,889
Investment in Kansas City Southern (Note 12) 0 45,091
Investments 533 223
Properties 51,744 22,385
Goodwill (Note 11, 14) 17,729 344
Intangible assets (Note 11, 15) 2,974 42
Pension asset (Note 23) 3,338 3,101
Other assets (Note 20) 582 420
Total assets 79,902 73,495
Current liabilities    
Accounts payable and accrued liabilities (Note 16, 20) 2,567 1,703
Long-term debt maturing within one year (Note 17, 18, 20) 3,143 1,510
Total current liabilities 5,710 3,213
Pension and other benefit liabilities (Note 23) 581 538
Other long-term liabilities (Note 19, 20) 797 520
Long-term debt (Note 17, 18, 20) 19,351 18,141
Deferred income taxes (Note 6) 11,052 12,197
Total liabilities 37,491 34,609
Shareholders’ equity    
Share capital (Note 21) Authorized unlimited Common Shares without par value. Issued and outstanding are 932.1 million and 930.5 million as at December 31, 2023 and 2022, respectively. 25,602 25,516
Additional paid-in capital 88 78
Accumulated other comprehensive (loss) income (Note 8) (618) 91
Retained earnings 16,420 13,201
Total shareholders' equity 41,492 38,886
Non-controlling interest (Note 11) 919 0
Total equity 42,411 38,886
Total liabilities and equity $ 79,902 $ 73,495
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CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares
Dec. 31, 2023
Dec. 31, 2022
Statement of Financial Position [Abstract]    
Common stock, issued (in shares) 932,100,000 930,500,000
Common stock, outstanding (in shares) 932,100,000 930,500,000
First preferred stock, shares outstanding (in shares) 0 0
Second preferred stock, shares outstanding (in shares) 0 0
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CONSOLIDATED STATEMENTS OF CASH FLOWS
$ in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2023
CAD ($)
Dec. 31, 2022
CAD ($)
Dec. 31, 2021
CAD ($)
Operating activities      
Net income (loss) $ 3,923 $ 3,517 $ 2,852
Reconciliation of net income to cash provided by operating activities:      
Depreciation and amortization (Note 11, 13, 15) 1,543 853 811
Deferred income tax (recovery) expense (Note 6) (7,885) 136 242
Pension recovery and funding (Note 23) (306) (288) (249)
Equity (earnings) loss of Kansas City Southern (Note 11, 12) (230) (1,074) 141
Foreign exchange gain on debt and lease liabilities 0 0 (7)
Remeasurement loss of Kansas City Southern (Note 11) 7,175 0 0
Dividends from Kansas City Southern (Note 12) 300 1,157 0
Settlement of Mexican tax audits (Note 6) (135) 0 0
Other operating activities, net 60 (67) (36)
Change in non-cash working capital balances related to operations (Note 22) (308) (92) (66)
Cash provided by operating activities 4,137 4,142 3,688
Investing activities      
Additions to properties (2,468) (1,557) (1,532)
Additions to Meridian Speedway properties (31) 0 0
Investment in Kansas City Southern (Note 11) 0 0 (12,299)
Proceeds from sale of properties and other assets 57 58 96
Cash acquired on control of Kansas City Southern (Note 11) 298 0 0
Investment in government securities (Note 17) (267) 0 0
Proceeds from settlement of government securities (Note 17) 274 0 0
Other (25) 3 5
Cash used in investing activities (2,162) (1,496) (13,730)
Financing activities      
Dividends paid (707) (707) (507)
Issuance of Common Shares (Note 21) 69 32 25
Issuance of long-term debt, excluding commercial paper (Note 17) 0 0 10,673
Repayment of long-term debt, excluding commercial paper (Note 17) (2,395) (571) (359)
Proceeds from term loan (Note 17) 0 0 633
Repayment of term loan (Note 17) 0 (636) 0
Net issuance (repayment) of commercial paper (Note 17) 1,095 (415) (454)
Acquisition-related financing fees (Note 11) (17) 0 (51)
Other 0 0 (24)
Cash (used in) provided by financing activities (1,955) (2,297) 9,936
Effect of foreign currency fluctuations on foreign-denominated cash and cash equivalents (7) 20 41
Cash position      
Increase (decrease) in cash and cash equivalents 13 369 (65)
Cash and cash equivalents at beginning of period(1) [1] 451 82 147
Cash and cash equivalents at end of year 464 451 [1] 82 [1]
Supplemental disclosures of cash flow information:      
Income taxes paid 906 408 552
Interest paid $ 825 $ 641 $ 426
[1] As at January 1, 2022, cash and cash equivalents of $82 million includes $13 million of restricted cash.
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CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical)
$ in Millions
Dec. 31, 2021
CAD ($)
Statement of Cash Flows [Abstract]  
Cash and cash equivalents $ 82 [1]
Restricted cash $ 13
[1] As at January 1, 2022, cash and cash equivalents of $82 million includes $13 million of restricted cash.
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CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - CAD ($)
$ in Millions
Total
Total shareholders’ equity
Share capital
Additional paid-in capital
Accumulated other comprehensive (loss) income
Retained earnings
Non-controlling interest
Beginning balance at Dec. 31, 2020 $ 7,319 $ 7,319 $ 1,983 $ 55 $ (2,814) $ 8,095 $ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net income (loss) 2,852 2,852       2,852  
Other Comprehensive Income (Loss), Net of Tax 711 711     711    
Dividends declared ($0.76 per share) (556) (556)       (556)  
Effect of stock-based compensation expense 23 23   23      
Shares issued for Kansas City Southern acquisition (Note 21) 23,456 23,456 23,461 (5)      
Shares issued under stock option plan (Note 21) 24 24 31 (7)      
Ending balance at Dec. 31, 2021 $ 33,829 33,829 25,475 66 (2,103) 10,391 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Dividends declared (CAD per share) $ 0.76            
Net income (loss) $ 3,517 3,517       3,517  
Other Comprehensive Income (Loss), Net of Tax 2,194 2,194     2,194    
Dividends declared ($0.76 per share) (707) (707)       (707)  
Effect of stock-based compensation expense 23 23   23      
Shares issued for Kansas City Southern acquisition (Note 21) (2) (2)   (2)      
Shares issued under stock option plan (Note 21) 32 32 41 (9)      
Ending balance at Dec. 31, 2022 $ 38,886 38,886 25,516 78 91 13,201 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Dividends declared (CAD per share) $ 0.76            
Net income (loss) $ 3,923 3,927       3,927 (4)
Other Comprehensive Income (Loss), Net of Tax (718) (709)     (709)   (9)
Dividends declared ($0.76 per share) (708) (708)       (708)  
Effect of stock-based compensation expense 27 27   27      
Shares issued under stock option plan (Note 21) 69 69 86 (17)      
Non-controlling interest in connection with business acquisition (Note 11) 932           932
Ending balance at Dec. 31, 2023 $ 42,411 $ 41,492 $ 25,602 $ 88 $ (618) $ 16,420 $ 919
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Dividends declared (CAD per share) $ 0.76            
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CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Statement of Stockholders' Equity [Abstract]      
Dividends declared (CAD per share) $ 0.76 $ 0.76 $ 0.76
v3.24.0.1
Description of the business
 12 Months Ended
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Description of the business Description of the business
The terms "CPKC", “the Company”, “our”, or “us” in these Consolidated Financial Statements refer to Canadian Pacific Kansas City Limited and its subsidiaries unless the context suggests otherwise.

CPKC owns and operates a transcontinental freight railway spanning Canada, the United States ("U.S."), and Mexico. CPKC provides rail and intermodal transportation services over a network of approximately 20,000 miles, serving principal business centres across Canada, the U.S. and Mexico. The Company transports bulk commodities, merchandise and intermodal freight. CPKC's Common Shares trade on the Toronto Stock Exchange and New York Stock Exchange under the symbol “CP”.

Acquisition of Kansas City Southern
On April 14, 2023, Canadian Pacific Railway Limited (“CPRL") assumed control of Kansas City Southern ("KCS") through an indirect wholly-owned subsidiary, and filed articles of amendment to change CPRL's name to Canadian Pacific Kansas City Limited ("CPKC"). These Consolidated Financial Statements include KCS as a consolidated subsidiary from April 14, 2023. For the period beginning on December 14, 2021 and ending on April 13, 2023 the Company's 100% interest in KCS was accounted for and reported as an equity-method investment (see Notes 11 and 12).
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Summary of significant accounting policies
 12 Months Ended
Dec. 31, 2023
Accounting Policies [Abstract]  
Summary of significant accounting policies Summary of significant accounting policies
Basis of presentation
These Consolidated Financial Statements are prepared in accordance with accounting principles generally accepted in the U.S. ("GAAP"). Amounts are expressed in Canadian dollars, unless otherwise noted. Certain comparative figures in these Consolidated Financial Statements have been reclassified to conform to the current year's presentation.

Use of estimates and judgements
The preparation of financial statements in conformity with GAAP requires management to exercise its judgement in applying the Company's accounting policies. It also requires the use of accounting estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the Consolidated Financial Statements, disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements, and reported amounts of revenues and expenses during the reporting periods. Although these estimates are based on management's best knowledge of current events and actions, actual results may ultimately differ from those estimates.

Critical estimates and judgements made by management relate to:
•Deferred income taxes (Note 6);
•Business acquisitions (Note 11);
•Properties (Note 13);
•Goodwill (Note 14);
•Intangible assets (Note 15);
•Provision for environmental remediation (Note 19);
•Pension and other benefits (Note 23); and
•Legal claims (Note 26).

Principles of consolidation
The financial statements of subsidiaries are included in these Consolidated Financial Statements from the date control commences until the date control ceases. Intercompany accounts and transactions are eliminated. Third party ownership interests in the Company's subsidiaries are presented in the Consolidated Financial Statements as activities and amounts attributable to non-controlling interests.

Revenues
Revenue is recognized when promised services are delivered and obligations under the terms of a contract with a customer are satisfied. Revenue is measured as the amount of consideration the Company expects to receive in exchange for providing services. In the normal course of business, the
Company does not generate material revenues through acting as an agent for other entities. Revenues are presented net of taxes collected from customers and remitted to governmental authorities.

The Company invoices customers when a bill of lading or service request is processed. Payment for services are due when performance obligations are satisfied. Amounts outstanding at the end of each reporting period are generally collected in the following reporting period. Performance obligations not fully satisfied at the end of a reporting period are also expected to be satisfied in the following reporting period.

Freight revenues
The Company provides freight transportation services to a wide variety of customers, transporting bulk commodities, merchandise freight and intermodal traffic.

The Company enters into master service agreements with customers which establish pricing, terms and conditions for future freight services the Company will provide when service requests or bills of lading are received from those customers. Each bill of lading or service request is a distinct performance obligation that the Company must satisfy. The transaction price is generally a fixed fee determined when the bill of lading or service request is initiated. The transaction price is allocated to distinct performance obligations based on estimated standalone selling prices. Since every bill of lading or service request is a distinct performance obligation, estimated standalone selling prices are determined based on observable fair market values. The Company also provides services to customers at published rates established in public tariff agreements. In those arrangements a performance obligation is triggered when the customer orders a service that the Company must satisfy.

Railway freight revenue is recognized over time as transportation services are provided and obligations under the terms of a contract with the customer are satisfied. Inputs are used to measure percentage of completion towards satisfaction of performance obligations. Progress is measured based on elapsed freight transit time relative to the total expected freight transit time from origination to destination. The short duration of freight delivery performance obligations results in generally immaterial services in progress at any given period end.

Certain customer agreements include variable consideration in the form of rebates, discounts, or incentives. The expected value method is used to estimate the amount of variable consideration to allocate to performance obligations as they are satisfied. Volume rebates are accrued based on estimated volumes and contract terms, and recognized as a reduction of freight revenues as the related freight services are provided. Contracted customer incentives are amortized to income over the term of the related service contract.

Non-freight revenues
Non-freight revenues, including revenues from passenger service operators, switching fees, and logistics services, are recognized either at the point in time the services are provided or over time as the performance obligations are satisfied. Non-freight revenues also include revenues from leasing land and other property.

Income taxes
The Company follows the asset and liability method of accounting for income taxes. Under this method, a deferred income tax asset or liability is determined based on the difference between the financial reporting and tax basis of the asset or liability, using enacted tax rates and laws that will be in effect when the difference is expected to reverse. The change in the net deferred income tax asset or liability is included in the computation of "Net income" and "Other comprehensive (loss) income". The effect of a change in income tax rates on deferred income tax assets and liabilities is recognized in income in the period that the change occurs.

The Company records a valuation allowance to reduce deferred income tax assets if it is more likely than not, based on available evidence about future events, that some or all of the deferred income tax assets will not be realized.

The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by taxing authorities based on the technical merits of the position. The tax benefit recognized is measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. A liability for “unrecognized tax benefits” is recorded for any tax benefits claimed in the Company’s tax returns that do not have a greater than 50% likelihood of being realized upon ultimate settlement.

Investment and other similar tax credits are recorded as "Deferred income taxes" on the Company's Consolidated Balance Sheets and recognized as "Deferred income tax (recovery) expense" in the Consolidated Statements of Income as the related asset is recognized in income.

Earnings per share
Basic earnings per share is calculated using the weighted-average number of the Company's Common Shares outstanding during the year. Diluted earnings per share is calculated using the treasury stock method for determining the dilutive effect of Common Shares issuable upon exercise of outstanding stock options.
Equity method investments
The Company’s investments in entities over which it can exercise significant influence or has joint control are accounted for using the equity method. Equity-method investments are initially recognized at cost. Subsequently, and until the date significant control ceases, its carrying amount is presented in the Consolidated Balance Sheets, with adjustments to reflect:
•the Company's share of income or losses and comprehensive income or losses, based on the Company's share of common stock and in-substance common stock;
•depreciation, amortization or accretion related to any any basis differences that were identified as part of the initial accounting for the investment;
•dividends received;
•other-than-temporary impairments, if any; and
•the effects of any intra-entity profit and losses and capital transactions.

Distributions received from equity-method investments are classified in the Consolidated Statements of Cash Flows according to the nature of the activities generating distributions.

If the Company acquires control of a business that it was previously able to exercise significant influence over, it stops accounting for the investment using the equity method. The investment is remeasured to fair value as of the date control was obtained, with any gain or loss from the remeasurement recognized in the Company's Consolidated Statements of Income. Any amounts in "Accumulated other comprehensive (loss) income" ("AOCI") in the Consolidated Balance Sheets related to the investment are reclassified and included in the calculation of the gain or loss. Any pre-existing relationship between the Company and the investment is settled with a corresponding gain or loss recorded in the Company's Consolidated Statements of Income, separately from the business acquisition.

Business acquisitions
Management makes estimates and assumptions to determine the fair values of assets acquired and liabilities and non-controlling interest assumed in a business combination at the acquisition date. Such estimates and assumptions are inherently uncertain and subject to refinement. During the measurement period the Company may adjust any provisional amounts reported on the acquisition date if additional information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected their measurement on that date. Adjustments to provisional amounts are recognized with corresponding adjustments to goodwill.

If the acquisition-date fair value of an asset or liability arising from pre-acquisition contingencies cannot be determined as of the acquisition date or during the measurement period, the estimated amount of the asset or liability is recognized if it is probable that an asset existed or a liability had been incurred at the acquisition date based on information available prior to the end of the measurement period and the amount of the asset or liability can be reasonably estimated.

The measurement period ends as soon as all necessary information about the facts and circumstances that existed as of the acquisition date for provisional amounts has been obtained, not to exceed one year. Changes that do not qualify as measurement period adjustments or that occur after the measurement period are recognized in the Consolidated Statements of Income.

Foreign currency translation
Foreign currency transactions
Foreign currency transactions are denominated in currencies other than CPKC's functional currency, which is the Canadian dollar. Transactions denominated in foreign currencies are translated to the functional currency using the exchange rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are remeasured to the functional currency using the exchange rate in effect at the balance sheet date. Foreign exchange gains and losses resulting from the translation of monetary assets and liabilities are included in income in the period they arise.

Foreign operations
Foreign exchange gains and losses arising from the translation of the Company's foreign subsidiaries’ and equity-method investees' functional currencies to CPKC's Canadian dollar presentation are included in “Other comprehensive (loss) income” and recognized in income upon the sale of the foreign operation. Asset and liability accounts are translated at the exchange rates in effect as at the balance sheet date, and revenues and expenses are translated using monthly average exchange rates.

U.S. dollar-denominated debt, finance lease obligations and operating lease liabilities are designated as hedges of the Company's net investment in foreign subsidiaries and foreign equity-method investees. Accordingly, unrealized gains and losses arising from the translation of the designated U.S. dollar-denominated debt, finance lease obligations and operating lease liabilities are offset against gains and losses arising from the translation of the Company's foreign operations' accounts in “Other comprehensive (loss) income”.
Cash and cash equivalents
Cash and cash equivalents include highly liquid investments with original maturities of less than three months.

Accounts receivable, net
Accounts receivable are recorded at cost net of an allowance for expected credit losses. The allowance for expected credit losses is estimated based on relevant information about historical credit loss experience of receivables with similar risk characteristics, current conditions, and forecasts of future conditions expected to affect collectability.

Accounts receivable are written off against the allowance for credit losses when it is probable that the remaining contractual payments will not be collected. Subsequent recoveries of amounts previously written off are credited to income in the period recovered.

Materials and supplies
Materials and supplies, including fuel and parts used in the repair and maintenance of track structures, equipment, locomotives, and freight cars, are measured at the lower of average cost or net realizable value.

Properties
Properties are reported at historical cost, less accumulated depreciation or amortization and any impairment. The Company reviews properties for impairment when changes in circumstances indicate that its carrying amount may not be recoverable. If the estimated future undiscounted cash flows are less than the property's carrying amount, its carrying amount is reduced to the estimated fair value, measured using discounted cash flows, and a corresponding impairment loss is recognized in income.

Additions to properties
For property additions and betterments the Company capitalizes all costs necessary to make the assets ready for their intended use.

A large amount of the Company's capital expenditures are for self-constructed properties, both new and the replacement of existing properties. Self-constructed assets are initially recorded at cost, including direct costs, attributable indirect costs, overheads, and carrying costs.
•direct costs include labour, purchased services, materials and equipment, project supervision costs, and fringe benefits.
•attributable indirect costs and overheads include incremental long-term variable costs resulting from the execution of capital projects.
•indirect costs mainly include costs associated with work trains, material distribution, highway vehicles, and work equipment.
•overheads primarily relate to engineering department costs of planning, designing, and administering the capital projects, which are allocated to projects using a measure consistent with the nature of the cost, based on cost studies.

The Company capitalizes costs incurred for replacements or betterments that enhance the service potential or extend the useful life of the properties, when the expenditures exceed minimum physical and financial thresholds. Costs to repair or maintain the service potential of properties are expensed.
•the cost of ballast programs, including undercutting, shoulder ballasting, and renewal programs that form part of the annual track program are capitalized because the work and related added ballast material significantly improves drainage, which in turn extends the life of ties and other track materials. The cost of ballast programs are tracked separately from the underlying assets and depreciated over the estimated period to the next similar ballast program. Spot replacement of ballast is considered a repair, which is expensed as incurred.
•significant freight car refurbishments, locomotive overhauls and other capital improvements that enhance service potential or extend useful life are capitalized.
•replacement project costs are allocated to dismantling, which is expensed, and installation, which is capitalized, based on cost studies.

The Company also capitalizes development costs for major new computer systems.

Asset retirement obligations
When there is a reliably measurable legal obligation associated with the retirement of property, a liability is initially recognized at its fair value and a corresponding asset retirement cost is added to the carrying amount of property and depreciated over the estimated useful life of the property.

Group depreciation
The Company primarily uses the group method of depreciation, in which properties with similar characteristics, use and expected lives are allocated to asset groups:
•the asset groups are depreciated on a straight-line basis reflecting their expected economic lives, using composite depreciation rates. All track assets are depreciated using a straight-line method which recognizes the value of the asset consumed as a percentage of the whole life of the asset.
•composite depreciation rates are established through depreciation studies, which are regular, detailed reviews, performed by asset group, of service lives, salvage values, accumulated depreciation, and other related matters.
•the depreciation studies also estimate accumulated depreciation surpluses or deficiencies for each asset group, which are amortized over the remaining life of the respective asset group.
•when depreciable property is retired or otherwise disposed in the normal course of business, its life generally approximates its expected useful life as determined in the depreciation studies. For this reason, under group depreciation, a gain or loss on disposal is not recognized. Instead, the asset's net book value, less net salvage proceeds, is charged to accumulated depreciation.
•for certain asset groups, the historical cost of the asset is separately recorded in the Company's property records. This amount is retired from the property records upon retirement of the asset. For assets for which the historical cost cannot be separately identified, the asset's gross book value is estimated using an indexation methodology, whereby the retired property's current replacement cost is indexed to its estimated year of installation, or a first-in, first-out approach, or statistical analysis is used to determine its retired age. The Company uses indices that closely correlate to the principal costs of the assets.
•when removal costs exceed the property's salvage value and removal is not a legal obligation, the removal costs are charged to income when the property is removed.
•for disposals of larger groups of depreciable assets that were not factored into the Company’s depreciation studies, the Company records a gain or loss for the difference between the net proceeds and the net book value of the assets sold or retired. The accumulated depreciation that is derecognized includes asset-specific accumulated depreciation, when known, or an appropriate portion of the accumulated depreciation recorded for the relevant asset class as a whole, calculated using a cost-based allocation.

Concession assets
CPKC holds a concession from the Mexican government which authorizes the Company to provide freight transportation services over certain rail lines, including the use all related track and other assets necessary for the rail lines' operation (the "Concession"). The Concession term ends in June 2047, but is renewable under certain conditions, for additional periods, each up to 50 years.

The underlying tangible assets that the Concession provides the Company with the right to use are capitalized in "Properties", and amortized using the group method. Amortization is recognized over the lesser of the expected concession term, including one renewal period of 50 years, or the estimated useful life of the underlying asset groups. The intangible rights granted under the Concession are amortized over the expected term of the Concession.

Finance lease right-of-use ("ROU") assets
Finance lease ROU assets included in "Properties" are amortized to the earlier of the end of the useful life of the ROU asset or the end of the lease term.

Government assistance
The Company records government assistance from various levels of governments and government agencies when there is reasonable assurance that the assistance will be received.

Government assistance in connection with the acquisition or construction of properties sometimes includes conditions which, if not met within a certain period of time, may require repayment of some or all of the assistance received. It is the Company's intention to comply with all conditions imposed by the terms of government assistance accepted. Government assistance received or receivable related to property is recorded as a reduction of the cost of the property and amortized over the same period as the related assets.

Goodwill
Goodwill represents the excess of the purchase price over the fair value of identifiable net assets upon acquisition of a business. On the acquisition date goodwill is allocated to the reporting unit expected to benefit from the acquisition. The carrying value of goodwill, which is not amortized, is assessed for impairment annually, or more frequently if events or changes in circumstances arise that suggest goodwill may be impaired. The Company's annual review of goodwill is performed in the fourth quarter, on the October 1 balance.

The Company first assesses qualitative factors, including, but not limited to economic, market, and industry conditions, the reporting unit's overall financial performance and events such as notable changes in management or customers. If the qualitative assessment indicates that it is more likely than not that the fair value of the reporting unit is less than its carrying value, a quantitative assessment is undertaken. The quantitative assessment is a comparison of the reporting unit's carrying value and fair value. The reporting unit's fair value is defined as the price expected to be received if it was sold in an orderly transaction between market participants. It is determined based on pre-tax discounted cash flows that reflect management's best estimates of the time value of money and risks specific to the reporting unit and its assets. If the carrying value of the reporting unit, including goodwill, exceeds its fair value, an impairment is recognized, measured at the amount by which the reporting unit's carrying value exceeds its fair value.

Intangible assets
Intangible assets with finite lives, consisting primarily of customer contracts, customer relationships and favourable leases are amortized on a straight-line basis over their estimated useful lives of up to 22 years. When there is a change in the estimated useful life of an intangible asset with a finite life, amortization is adjusted prospectively. An intangible asset with a finite life is assessed for impairment whenever events or circumstances indicate that its carrying amount may not be recoverable.
Intangible assets with indefinite useful lives are primarily trackage rights that are expected to generate cash flows indefinitely. They are not amortized but are tested for impairment annually, or more frequently if events or changes in circumstances indicate they may be impaired.

When assessing an intangible asset for impairment, if the undiscounted cash flows indicate that its carrying amount may not be recoverable, an impairment loss will be recognized for the amount that its carrying amount exceeds its fair value, determined based on pre-tax discounted cash flows that reflect management's best estimates of the time value of money and risks specific to the asset.

Assets held for sale
Assets that meet the held-for-sale criteria are reported in "Other assets" at the lower of their carrying amount and fair value, less costs to sell, and are not depreciated.

Financial instruments
Financial instruments are contracts that give rise to a financial asset of one party and a financial liability or equity instrument of another party. Financial instruments are recognized initially at fair value, which is the amount of consideration that would be agreed upon in an arm’s-length transaction between willing parties.

Cash and cash equivalents are classified as amortized cost, which approximates fair value. Accounts receivable and investments consisting of loans and receivables are subsequently measured at amortized cost, using the effective interest method. Accounts payable and accrued liabilities, other long-term liabilities, and long-term debt are also subsequently measured at amortized cost.

Derivative financial instruments
Derivative financial instruments may are used from time to time to manage the Company's exposure to changes in foreign exchange rates, interest rates, fuel price and certain compensation tied to our common share price. When derivative instruments are used in hedging relationships, the Company identifies, designates, and documents those hedging transactions and regularly tests the transactions to demonstrate effectiveness in order to continue hedge accounting.

The Company's derivative instruments are classified as held-for-trading and recorded at fair value in the Consolidated Balance Sheets as current or non-current assets or liabilities depending on the timing of settlements and the resulting cash flows associated with the instrument. Any changes in the fair value of derivatives that are not designated as hedges are recognized in income in the period the change occurs.

For fair value hedges, changes in the fair value of the hedging instrument are recognized in income along with changes in the fair value of the hedged risk of the asset or liability that is designated as part of the hedging relationship.

For designated cash flow hedges, changes in the fair value of the hedging instrument are recorded in “Other comprehensive (loss) income” and reclassified to income when the hedged item impacts income. If a derivative instrument designated as a cash flow hedge ceases to be effective or is terminated, hedge accounting is discontinued and the gain or loss at that date is deferred in "Other comprehensive (loss) income" and recognized in income concurrently with the related transaction. If an anticipated hedged transaction is no longer probable, the gain or loss is recognized immediately in income. Subsequent gains and losses from derivative instruments for which hedge accounting has been discontinued are recognized in income in the period in which they occur.

Cash flows relating to derivative instruments designated as hedges are included in the same category as the related hedged items in the Consolidated Statements of Cash Flows.

Leases
The Company leases rolling stock, buildings, vehicles, railway equipment, roadway machines, and information systems hardware. Lease liabilities and ROU assets are recognized in the Consolidated Balance Sheets for finance leases and operating leases with fixed terms and in-substance fixed terms.
•ROU assets and lease liabilities are recognized on the lease commencement date at the present value of the future lease payments over the lease term. Lease payments include fixed and variable payments that are based on an index or a rate. If the rate implicit in the lease is not readily determinable, the Company uses internal incremental secured borrowing rates for a comparable tenor and in the same currency at the lease commencement date to determine the present value of lease payments.
•certain leases of rolling stock and roadway machines are fully variable or contain both fixed and variable components. Variable components are dependent on the hours and miles that the underlying equipment has been used. Fixed-term, short-term and variable operating lease costs are recorded in "Equipment rents" and "Purchased services and other" in the Company's Consolidated Statements of Income.
•components of finance lease costs are recorded in "Depreciation and amortization" and "Net interest expense" in the Company's Consolidated Statements of Income.
•ROU assets are adjusted for lease prepayments, initial direct costs and lease incentives.
•lease terms include periods associated with options to extend or exclude periods associated with termination options when the Company is reasonably certain of exercising such options.
•non-lease components are accounted for separately from lease components of roadway machine, information systems hardware, and fleet vehicle lease contracts. Otherwise, lease and non-lease components are combined and accounted as a single lease component.

Leases with terms of 12 months or less that do not contain an option to purchase the underlying asset at the end of the lease term that the Company intends to exercise are not recorded on the Consolidated Balance Sheets; lease payments are recognized as expenses in the Consolidated Statements of Income on a straight-line basis over the lease term.

Provision for environmental remediation
Environmental remediation accruals, covering site-specific remediation programs, are recorded on an undiscounted basis unless a reliably determinable estimate of the amount and timing of costs can be established. The accruals are recorded when the costs to remediate are probable and can be reasonably estimated. Certain future costs to monitor sites are discounted at an adjusted risk-free rate. 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”.

Pensions and other benefits
Obligations and net periodic benefit costs for the Company's defined benefit pension plans are actuarially determined using the projected benefit method, pro-rated over the credited service periods of employees. This method incorporates management’s best estimates of actuarial assumptions, such as discount rates, salary and other cost escalations, employees' retirement ages and mortality. The discount rates are based on blended market interest rates on high-quality debt instruments with matching cash flows.

Plan assets are measured at fair value. The expected return on plan assets is calculated using market-related asset values, developed from a five-year average of adjusted market values for the fund’s public equity securities and absolute return strategies, plus the market value of the fund’s other asset classes, subject to the market-related asset value not being greater than 120% nor less than 80% of the market value.

Actuarial gains and losses arise from the difference between the actual and expected return on plan assets, and changes in the measurement of the benefit obligation. Periodic net actuarial gains and losses and prior service costs are accumulated and presented as a component of AOCI in the Consolidated Balance Sheets.

Obligations and net periodic benefit costs for the Company's other post-retirement and post-employment benefits are actuarially determined on a similar basis.

The status of over and under funded defined benefit pension and benefit plans, measured as the difference between the fair value of a plan's assets and benefit obligation, are reported in the Company's Consolidated Balance Sheets.

Components of net periodic benefit cost included in Operating income in the Consolidated Statements of Income include:
•current service costs for defined benefit pension and post-retirement benefits, and the Company's contributions to defined contribution pension plans are recorded in"Compensation and benefits"; and
•current service costs for self-insured workers' compensation and long-term disability benefits, which are recorded in"Purchased services and other".

Other components of net periodic benefit cost or recovery, recognized outside of Operating income in the Consolidated Statements of Income are:
•interest cost on benefit obligation;
•expected return on plan assets;
•amortization of net actuarial gains and losses in excess of 10% of the greater of the projected benefit obligation and the market-related value of plan assets, over the expected average remaining service period of the plan's active employee group (approximately 13 years);
•amortization of prior service costs arising from collectively bargained amendments to pension plan benefit provisions (over the term of the applicable union agreement) and from all other sources (over the expected average remaining service period of active employees who are expected to receive benefits under the plan at the date of the amendment); and
•gains and losses on post-employment benefits that do not vest or accumulate, including some workers’ compensation and long-term disability benefits in Canada.

Stock-based compensation
Stock options
The cost of awards of equity-settled employee stock options is measured based on the options' fair value on their grant date. The cost is recognized as "Compensation and benefits expense", with a corresponding increase to "Additional paid-in capital" ("APIC") in "Shareholders' equity" over the shorter of (i) the vesting period; or (ii) the period from the grant date to the date the employee becomes eligible to retire. The grant date fair value is determined
using the Black-Scholes option-pricing model. Forfeitures are estimated at the grant date, and changes in the estimate of forfeitures in subsequent periods are recognized as adjustments to"Compensation and benefits expense" in the period that the change in estimate occurs. As stock options are exercised, the related amount accumulated in "APIC" is reclassified to "Share Capital" and the proceeds are recognized in "Share Capital".

Share units
The Company also issues cash-settled awards, including deferred share units ("DSUs"), performance share units (“PSUs”) and performance deferred share units ("PDSUs"), for which a liability is remeasured each financial reporting period until settlement.

"Compensation and benefits expense" is recognized, using the fair value method, over the shorter of the vesting term, or the period from the grant date to the date the employee is eligible to retire, based on the number of units outstanding and the closing price of CPKC's Common Shares on the measurement date. In the case of PSUs and PDSUs, the fair value of units that are probable of vesting, based on forecasted performance factors is recognized as "Compensation and benefits expense". Forfeitures of share units are estimated at the grant date, and changes in the estimate of forfeitures in subsequent periods are recognized as adjustments to "Compensation and benefits expense" in the period that the change in estimate occurs.

Share purchase plan
The employee share purchase plan gives rise to compensation expense that is recognized using the issue price by amortizing the cost over the vesting period.
v3.24.0.1
Accounting changes
 12 Months Ended
Dec. 31, 2023
Accounting Standards Update and Change in Accounting Principle [Abstract]  
Accounting changes Accounting changes
Adoption of new standards
Accounting for contract assets and contract liabilities from contracts with customers
Effective January 1, 2023, the Company adopted Accounting Standards Update (“ASU”) 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers on a prospective basis. Under this ASU contract assets and contract liabilities acquired in a business combination are measured in accordance with Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers instead of at fair value. The Company's application of this ASU for the measurement of contract assets and contract liabilities acquired in the KCS acquisition (Note 11) did not have a material impact on the Company's financial position and results of operations.

All other accounting pronouncements that became effective during the period covered by the Consolidated Financial Statements did not have a material impact on the Company's Consolidated Financial Statements and related disclosures.

New pronouncements
Recently issued accounting pronouncements are not expected to have a material impact on the Company's financial position or results of operations.
v3.24.0.1
Revenues
 12 Months Ended
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]  
Revenues Revenues
The following table presents disaggregated information about the Company’s revenues from contracts with customers by major source:
For the year ended December 31 (in millions of Canadian dollars)2023 20222021 
Grain$2,496 $1,776 $1,684 
Coal859 577 625 
Potash566 581 463 
Fertilizers and sulphur385 332 305 
Forest products696 403 348 
Energy, chemicals and plastics2,301 1,394 1,563 
Metals, minerals and consumer products1,579 884 728 
Automotive934 438 376 
Intermodal2,465 2,242 1,724 
Total freight revenues12,281 8,627 7,816 
Non-freight excluding leasing revenues161 103 100 
Revenues from contracts with customers12,442 8,730 7,916 
Leasing revenues113 84 79 
Total revenues$12,555 $8,814 $7,995 

Contract liabilities       
Contract liabilities represent payments received for performance obligations not yet satisfied. They are presented within "Accounts payable and accrued liabilities" and "Other long-term liabilities" on the Company's Consolidated Balance Sheets.

The following table summarizes the changes in contract liabilities for the years ended December 31, 2023 and 2022:

(in millions of Canadian dollars)20232022
Opening balance, January 1$64 $67 
Contract liabilities assumed upon the acquisition of KCS (Note 11)7 — 
Revenue recognized in the period that was included in the opening balance or liabilities assumed(36)(21)
Increase due to consideration received, net of revenue recognized in the period17 18 
Closing balance, December 31$52 $64 
v3.24.0.1
Other expense
 12 Months Ended
Dec. 31, 2023
Other Income and Expenses [Abstract]  
Other expense Other expense
For the year ended December 31 (in millions of Canadian dollars)202320222021
Foreign exchange gain on debt and lease liabilities$— $— $(7)
Foreign exchange loss on FX forward contracts (Note 18)
39 — — 
Other foreign exchange gains(12)— (4)
Acquisition-related costs (Note 11)
6 — 247 
Other19 17 1 
Other expense$52 $17 $237 
v3.24.0.1
Income taxes
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Income taxes Income taxes
The following is a summary of the major components of the Company’s income tax (recovery) expense:

For the year ended December 31 (in millions of Canadian dollars)202320222021
Current income tax expense$909 $492 $526 
Deferred income tax (recovery) expense
Reversal of outside basis deferred tax (Note 11)(7,832)— — 
Origination and reversal of temporary differences53 101 259 
Effect of tax rate decrease(72)(25)(11)
   Effect of hedge of net investment in foreign subsidiaries and equity-method investees (Note 8)
(22)59 (3)
Other(12)1 (3)
Total deferred income tax (recovery) expense (7,885)136 242 
Total income tax (recovery) expense$(6,976)$628 $768 
(Loss) income before income tax (recovery) expense
Canada2,359 2,236 2,899 
Foreign(5,412)1,909 721 
Total (loss) income before income tax (recovery) expense (3,053)4,145 3,620 
Income tax (recovery) expense
Current
Canada377 333 404 
Foreign532 159 122 
Total current income tax expense909 492 526 
Deferred
Canada238 177 (179)
Foreign(8,123)(41)421 
Total deferred income tax (recovery) expense (7,885)136 242 
Total income tax (recovery) expense$(6,976)$628 $768 
 
The provision for deferred income taxes arises from temporary differences in the carrying values of assets and liabilities for financial statement and income tax purposes and the effect of loss carryforwards. The items comprising the deferred income tax assets and liabilities are as follows:

As at December 31 (in millions of Canadian dollars)20232022
Deferred income tax assets
Tax losses and other attributes carried forward$173 $70 
Liabilities carrying value in excess of tax basis276 108 
Unrealized foreign exchange losses18 50 
Environmental remediation costs50 22 
Other7 5 
Total deferred income tax assets524 255 
Valuation allowance(36)(4)
Total net deferred income tax assets$488 $251 
Deferred income tax liabilities
   Investment in Kansas City Southern (Note 12)
— 7,526 
Properties carrying value in excess of tax basis9,481 4,149 
Pensions carrying value in excess of tax basis751 691 
Intangibles carrying value in excess of tax basis789 — 
Investments carrying value in excess of tax basis(1)
473 38 
Other(1)
46 44 
Total deferred income tax liabilities11,540 12,448 
Total net deferred income tax liabilities$11,052 $12,197 
(1) 2022 comparative figures have been reclassified to conform to the current year's presentation.

The Company’s consolidated effective income tax rate differs from the expected Canadian statutory tax rates. Expected income tax (recovery) expense at statutory rates is reconciled to income tax (recovery) expense as follows:

For the year ended December 31 (in millions of Canadian dollars, except percentage)202320222021
Statutory federal and provincial income tax rate (Canada)26.11 %26.12 %26.12 %
Expected income tax (recovery) expense at Canadian enacted statutory tax rates$(797)$1,083 $946 
(Decrease) increase in taxes resulting from:
Reversal of outside basis deferred tax (Note 11)(7,832)— — 
   Remeasurement loss of Kansas City Southern
1,873 — — 
Losses (gains) not subject to tax10 (9)(116)
Canadian tax rate differentials(14)(12)(22)
Foreign tax rate differentials(62)(94)(37)
Effect of tax rate decrease(72)(25)(11)
Deduction for dividends taxed on outside basis(68)(270)— 
Unrecognized tax benefits(10)(24)(2)
Inflation in Mexico(31)— — 
Valuation allowance1 — — 
Other26 (21)10 
Income tax (recovery) expense $(6,976)$628 $768 
In 2023, the Company recorded a deferred tax recovery of $23 million (U.S. $17 million) on the outside basis difference of the change in the equity investment in KCS for the period January 1, 2023 to April 13, 2023, prior to acquiring control of KCS. In 2022 and 2021, deferred tax recoveries of $19 million (U.S. $15 million) and $33 million (U.S. $26 million), respectively, were recorded on the outside basis difference of the change in the equity investment in KCS. The outside basis difference is the excess of the carrying amount of the Company’s investment in KCS for financial reporting over the tax basis of this investment.

In 2023, the Company recorded a deferred tax recovery of $7,832 million on the derecognition of the deferred tax liability on the outside basis difference of the investment in KCS upon acquiring control.

In 2023, the Company revalued its deferred income tax balances as a result of decreases in the corporate income tax rates in the states of Iowa and Arkansas, resulting in a net recovery of $13 million. In 2022, the Company revalued its deferred income tax balances as a result of a corporate income tax rate decrease in the state of Iowa, resulting in a net recovery of $12 million.

In 2021, the Company recorded a deferred tax liability of $7,178 million (U.S. $5,607 million) on the outside basis difference of its investment in KCS. This balance was held in a U.S. functional currency entity and subsequently revalued to $7,526 million at December 31, 2022 ($7,079 million at December 31, 2021) due to changes in FX. In 2023, upon acquisition of control in KCS, the entire outside basis deferred tax liability was reversed through "income tax (recovery) expense" as mentioned above.

The Company has not provided a deferred liability for the income taxes which might become payable on any temporary difference associated with its foreign investments because the Company intends to indefinitely reinvest in its foreign investments and has no intention to realize this difference by a sale of its interest in foreign investments. It is not practical to calculate the amount of the deferred tax liability.

It is more likely than not that the Company will realize the majority of its deferred income tax assets from the generation of future taxable income, as the payments for provisions, reserves, and accruals are made and losses and tax credits carried forward are utilized.

As at December 31, 2023, the Company had tax effected operating losses carried forward of $52 million (2022 – $22 million), which have been recognized as a deferred tax asset. The losses carried forward will begin to expire in 2026. The Company expects to fully utilize these tax effected operating losses before their expiry.

As at December 31, 2023, the Company had $2 million (2022 – $2 million) in tax effected capital losses carried forward recognized as a deferred tax asset. The Company has no unrecognized tax benefits from capital losses as at December 31, 2023 and 2022.

As at December 31, 2023, the Company had $4 million in tax effected track maintenance credits carried forward recognized as a deferred tax asset, which will begin to expire in 2028. The Company did not have any minimum tax credits or investment tax credits carried forward.

The following table provides a reconciliation of uncertain tax positions in relation to unrecognized tax benefits for Canada, the U.S., and Mexico for the years ended December 31:

(in millions of Canadian dollars)202320222021
Unrecognized tax benefits at January 1$20 $49 $55 
Increase in unrecognized:
Tax benefits related to the current year2 1 — 
Tax benefits related to prior years10 — — 
Tax benefits acquired with KCS2 — — 
Dispositions:
Gross uncertain tax benefits related to prior years(6)(30)(6)
Settlements with taxing authorities(6)— — 
Unrecognized tax benefits at December 31$22 $20 $49 

If these unrecognized tax benefits were recognized, $17 million of unrecognized tax benefits as at December 31, 2023 would impact the Company’s effective tax rate.

During the fourth quarter of 2019, a tax authority proposed an adjustment for a prior tax year without assessing taxes. Although the Company had commenced action to have the proposal removed, an increase in uncertain tax position was recorded to deferred income tax liability and expense in the amount of $24 million. While the proposed adjustment was withdrawn during 2020, the ultimate resolution of this matter was not determinable until
2022. During the fourth quarter of 2022, the Company recorded a deferred tax recovery of $24 million to reverse this uncertain tax position as the amount was no longer expected to be realized.

The Company recognizes accrued interest, inflation and penalties related to unrecognized tax benefits as a component of "Income tax (recovery) expense" in the Company’s Consolidated Statements of Income. The net amount of accrued interest, inflation and penalties in 2023 was a $3 million recovery (2022 – $5 million expense; 2021 – $4 million expense). The total amount of accrued interest, inflation and penalties associated with unrecognized tax benefits as at December 31, 2023 was $15 million (2022 – $18 million; 2021 – $13 million).

The Company and its subsidiaries are subject to either Canadian federal and provincial income tax, U.S. federal, state and local income tax, Mexican income tax or the relevant income tax in other international jurisdictions. The Company has substantially concluded all Canadian federal and provincial income tax matters for the years through 2018. The federal and provincial income tax returns filed for 2019 and subsequent years remain subject to examination by the Canadian taxation authorities. The Canadian international audit for 2017 and subsequent years is ongoing. The income tax returns for 2020 and subsequent years continue to remain subject to examination by the IRS and U.S. state tax jurisdictions. Kansas City Southern de México, S.A. de C.V. (also known as Canadian Pacific Kansas City Mexico) ("CPKCM") has closed audit examinations for Mexican income tax returns for the years through 2020, except for the 2014 year which is currently in litigation (see Note 26). The CPKCM Mexican income tax returns filed for 2021 and subsequent years remain subject to examination by the Servicio de Administración Tributaria ("SAT”) (Mexican tax authority). There are certain Mexican subsidiaries with ongoing audits for the years 2016-2018 and 2021. As at December 31, 2023, the Company believes that it has recorded sufficient income tax reserves with respect to these income tax examinations and open tax years.

In December 2021, the Organization for Economic Co-operation and Development ("OECD") published model rules for a new global minimum tax framework ("Pillar Two"), and various governments around the world have issued, or are in the process of issuing, legislation regarding Pillar Two. The Company is in the process of assessing the full impact of this but does not expect it to have a material impact on the Company's future financial results.

Mexican tax audits
CPKCM closed audit examinations with the SAT for the tax years 2016-2020 in September 2023 and the tax years 2009-2010, 2013 and 2015 in November 2023. The audit examinations were for corporate income tax and value added tax (“VAT”). The settlement of these audits resulted in payments of $135 million and a $16 million reduction to the April 14, 2023 refundable VAT balance, which was classified within "Accounts receivable, net". The settlements primarily resulted in an increase of $90 million to "Goodwill" (see Note 11) and a current income tax expense to "Income tax (recovery) expense" of $13 million. In addition, a current income tax expense of $3 million for the year ended December 31, 2023 was recognized to reserve for potential future audit settlements. As a result, as at December 31, 2023, the estimated impact of potential future audit settlements for tax years after 2020 that were substantially reserved included a reduction to the April 14, 2023 refundable VAT balance of $9 million and an income tax reserve of $3 million, which was classified within "Accounts payable and accrued liabilities".

Mexican value added tax
As discussed above in Mexican tax audits, CPKCM closed audit examinations for Mexican VAT returns for the years through 2020, except for the 2014 year which is currently in litigation (see Note 26). The settlement and the estimated impact of potential future audit settlements resulted in an increase of $96 million to "Goodwill" (see Note 11) and a $25 million reduction to the April 14, 2023 refundable VAT balance. As of December 31, 2023 and April 14, 2023, the CPKCM refundable VAT balance was $nil and $55 million, respectively. Except for the 2014 year in litigation, there are no VAT disputes with the SAT as of December 31, 2023.
v3.24.0.1
Earnings per share
 12 Months Ended
Dec. 31, 2023
Earnings Per Share [Abstract]  
Earnings per share Earnings per share
For the year ended December 31 (in millions of Canadian dollars, except per share data)202320222021
Net income attributable to controlling shareholders$3,927 $3,517 $2,852 
Weighted-average basic shares outstanding (millions)931.3 930.0 679.7 
Dilutive effect of stock options (millions)2.4 2.9 3.1 
Weighted-average diluted shares outstanding (millions)933.7 932.9 682.8 
Earnings per share – basic$4.22 $3.78 $4.20 
Earnings per share – diluted$4.21 $3.77 $4.18 

In 2023, there were 0.6 million options excluded from the computation of diluted earnings per share because their effects were not dilutive (2022 – 0.3 million; 2021 – 0.1 million).
v3.24.0.1
Other comprehensive (loss) income and accumulated other comprehensive (loss) income
 12 Months Ended
Dec. 31, 2023
Equity [Abstract]  
Other comprehensive (loss) income and accumulated other comprehensive (loss) income Other comprehensive (loss) income and accumulated other comprehensive (loss) income
The components of Other comprehensive (loss) income and the related tax effects attributable to controlling shareholders are as follows:

(in millions of Canadian dollars)Before
tax amount 		Income tax (expense) recovery Net of tax
amount
For the year ended December 31, 2023
Unrealized foreign exchange (loss) gain on:
Translation of the net investment in U.S. subsidiaries and equity method investees$(840)$— $(840)
Translation of the U.S. dollar-denominated long-term debt designated as a hedge of the net investment in U.S. subsidiaries and equity method investees (Note 18)
194 (22)172 
Realized loss on derivatives designated as cash flow hedges recognized in income7 (2)5 
Change in pension and other benefits actuarial gains and losses(57)16 (41)
Change in prior service pension and other benefit costs(16)4 (12)
Equity accounted investments7 — 7 
Other comprehensive loss$(705)$(4)$(709)
For the year ended December 31, 2022
Unrealized foreign exchange gain (loss) on:
Translation of the net investment in U.S. subsidiaries and equity method investees$2,099 $— $2,099 
Translation of the U.S. dollar-denominated long-term debt designated as a hedge of the net investment in U.S. subsidiaries and equity method investees (Note 18)
(471)59 (412)
Realized loss on derivatives designated as cash flow hedges recognized in income6 (2)4 
Change in pension and other benefits actuarial gains and losses706 (182)524 
Change in prior service pension and other benefit costs(26)7 (19)
Equity accounted investments(5)3 (2)
Other comprehensive income$2,309 $(115)$2,194 
For the year ended December 31, 2021
Unrealized foreign exchange (loss) gain on:
Translation of the net investment in U.S. subsidiaries and equity method investees$(316)$— $(316)
Translation of the U.S. dollar-denominated long-term debt designated as a hedge of the net investment in U.S. subsidiaries and equity method investees (Note 18)
25 (3)22 
Change in derivatives designated as cash flow hedges:
Realized loss on derivatives designated as cash flow hedges recognized in income10 (3)7 
Unrealized gain on cash flow hedges38 (9)29 
Change in pension and other benefits actuarial gains and losses1,286 (323)963 
Equity accounted investments9 (3)6 
Other comprehensive income$1,052 $(341)$711 
Changes in AOCI attributable to controlling shareholders, net of tax, by component are as follows:

(in millions of Canadian dollars)
Foreign currency
net of hedging
activities
Derivatives
Pension and post-
retirement defined
benefit plans
Equity accounted investmentsTotal
Opening balance, January 1, 2023$1,505 $— $(1,410)$(4)$91 
Other comprehensive (loss) income before reclassifications(668)— (79)6 (741)
Amounts reclassified from AOCI— 5 26 1 32 
Net other comprehensive (loss) income(668)5 (53)7 (709)
Closing balance, December 31, 2023$837 $5 $(1,463)$3 $(618)
Opening balance, January 1, 2022$(182)$(4)$(1,915)$(2)$(2,103)
Other comprehensive income before reclassifications1,687 — 387 164 2,238 
Amounts reclassified from AOCI— 4 118 (166)(44)
Net other comprehensive income (loss)1,687 4 505 (2)2,194 
Closing balance, December 31, 2022$1,505 $— $(1,410)$(4)$91 
v3.24.0.1
Accounts receivable, net
 12 Months Ended
Dec. 31, 2023
Receivables [Abstract]  
Accounts receivable, net Accounts receivable, net
As at December 31, 2023As at December 31, 2022
(in millions of Canadian dollars)FreightNon-freightTotalFreightNon-freightTotal
Total accounts receivable$1,559 $417 $1,976 $785 $272 $1,057 
Allowance for credit losses(63)(26)(89)(27)(14)(41)
Total accounts receivable, net$1,496 $391 $1,887 $758 $258 $1,016 
v3.24.0.1
Property sale
 12 Months Ended
Dec. 31, 2023
Discontinued Operations and Disposal Groups [Abstract]  
Property sale Property sale
During 2021, the Company provided property to a government agency in exchange for property and property easements with fair values of $33 million and $9 million, respectively, and cash of $61 million. Fair values were determined based on comparable market transactions. The Company recorded a gain in "Purchased services and other" of $50 million from the transaction, and a deferred gain of $53 million, which is being recognized in income over the period of use of certain easements. The Company recognized $14 million of the deferred gain into income in 2023 (2022 - $14 million; 2021 - $13 million)).
There were no significant property sales transacted in 2023 or 2022.
v3.24.0.1
Business acquisition
 12 Months Ended
Dec. 31, 2023
Business Combination and Asset Acquisition [Abstract]  
Business acquisition Business acquisition
KCS
On September 15, 2021, the Company entered into an Agreement and Plan of Merger (the "Merger Agreement") with KCS, a U.S. Class I railway, with the objective of creating the only single railroad link the U.S., Mexico and Canada.

Previously, on March 21, 2021, the Company had entered a merger agreement (the “Original Merger Agreement”) with KCS. However, on May 21, 2021, KCS terminated the Original Merger Agreement with the Company in order to enter into a merger agreement with Canadian National Railway Company ("CN") (the "CN Merger Agreement"). Under the terms of the Original Merger Agreement, KCS concurrently paid a merger termination fee of $845 million (U.S. $700 million) to the Company, recorded as "Merger termination fee" in the Company's 2021 Consolidated Statements of Income.

On September 15, 2021, KCS terminated the CN Merger Agreement, paid U.S. $1,400 million in merger termination fees, and entered the Merger Agreement with the Company. In connection with the Merger Agreement the Company remitted $1,773 million (U.S. $1,400 million) to KCS to compensate KCS for payments it was required to make to CN. This payment to KCS was included as part of the cost of the acquisition of KCS within "Investment in Kansas City Southern" in the Company's Consolidated Balance Sheets and was included in "Investment in Kansas City Southern" in the Company's Consolidated Statements of Cash Flows.
On December 14, 2021, the Company purchased 100% of the issued and outstanding stock of KCS which was deposited into a voting trust while the U.S. Surface Transportation Board (the "STB") reviewed the Company's proposed control of KCS. In exchange, the Company issued 262.6 million Common Shares to existing KCS common stockholders at the exchange ratio of 2.884 Common Shares per share of KCS common stock or $23,461 million (U.S. $18,282 million) and paid cash consideration of (i) U.S. $90 per share of KCS common stock and (ii) U.S. $37.50 per share of KCS preferred stock, totalling $10,526 million (U.S. $8,203 million). The total consideration paid to acquire KCS, including the payment made in connection with the CN merger termination described above was $35,760 million (U.S. $27,885 million). Cash consideration paid in connection with the acquisition was financed by issuances of long-term debt (see Note 17).

On March 15, 2023, the STB approved the Company and KCS’s joint merger application, and the Company assumed control of KCS on April 14, 2023 (the "Control Date"). From December 14, 2021 to April 13, 2023 the Company recorded its investment in KCS using the equity method of accounting (Note 12).

Accordingly, the Company commenced consolidation of KCS on the Control Date, accounting for the acquisition as a business combination achieved in stages. The results from operations and cash flows have been consolidated prospectively from the Control Date. The Company derecognized its previously held equity method investment in KCS of $44,402 million as of April 13, 2023 and remeasured the investment at its Control Date fair value of $37,227 million, which formed part of the purchase consideration, resulting in a net remeasurement loss of $7,175 million. In addition, a deferred income tax recovery of $7,832 million was recognized upon the derecognition of the deferred tax liability computed on the outside basis that the Company had recognized in relation to its investment in KCS while accounted for using the equity method. The fair value of the previously held equity interest in KCS was determined by a discounted cash flow approach, which incorporated the Company’s best estimates of long-term growth rates, tax rates, discount rates, and terminal multiples.

The identifiable assets acquired, and liabilities and non-controlling interest assumed were measured at their provisional fair values at the Control Date, with certain exceptions, including income taxes, certain contingent liabilities and contract liabilities. The provisional fair values of the tangible assets were determined using valuation techniques including, but not limited to, the market approach and the cost approach. The significant assumptions used to determine the provisional fair value of the tangible assets included, but were not limited to, a selection of comparable assets and an appropriate inflation rate. Presented with the acquired Properties are concession and related assets held under the terms of a concession from the Mexican government. The Concession expires in June 2047 and is renewable under certain conditions for additional periods, each of up to 50 years.

The provisional fair values of the intangible assets were determined using valuation techniques including, but not limited to, the multi-period excess earnings method, the replacement cost method, the relief from royalty method and the income approach. The significant assumptions used to determine the provisional fair values of the intangible assets included, but were not limited to, the renewal probability and term of the Mexican concession extension, discount rates, earnings before interest, tax, depreciation, and amortization ("EBITDA") margins and terminal growth rates.

The fair value of the non-controlling interest was determined using a combination of the income and market approaches to determine the fair value of Meridian Speedway LLC in which Norfolk Southern Corporation ("NSC") owns a non-controlling interest, and this fair value was allocated proportionately between KCS and NSC.

At December 31, 2023, the accounting for the acquisition of KCS remains incomplete as the Company continues to validate the provisional fair values assigned to acquired assets and assumed liabilities. This validation will be completed during the measurement period as additional information is obtained about facts and circumstances as of the Control Date that will assist in the determination of the fair values of these assets and liabilities. Measurement uncertainty exists at December 31, 2023 with respect to, but not limited to, working capital balances, “Investments”, “Properties”, “Intangible assets”, “Other assets”, “Pensions and other benefit liabilities”, “Other long-term liabilities”, and “Deferred income taxes”.
The following table summarizes the preliminary purchase price allocation with the amounts recognized in respect of the identifiable assets acquired and liabilities and non-controlling interest assumed on the Control Date, as well as the fair value of the previously held equity interest in KCS and the measurement period adjustments recorded during the year:

(in millions of Canadian dollars)Reported at
April 14, 2023		Measurement period adjustmentsReported at December 31, 2023
Net assets acquired:
Cash and cash equivalents$298 $— $298 
Net working capital51 (110)(59)
Properties28,748 1 28,749 
Intangible assets3,022 — 3,022 
Other long-term assets496 (5)491 
Debt including debt maturing within one year(4,545)— (4,545)
Deferred income taxes(6,984)42 (6,942)
Other long-term liabilities(406)(2)(408)
Total identifiable net assets$20,680 $(74)$20,606 
Goodwill17,491 74 17,565 
$38,171 $— $38,171 
Consideration:
Fair value of previously held equity method investment$37,227 $— $37,227 
Intercompany payable balance, net acquired12 — 12 
Fair value of non-controlling interest932 — 932 
Total$38,171 $— $38,171 

During the year ended December 31, 2023, measurement period adjustments were recorded as a result of new information that was obtained about facts and circumstances of certain KCS assets and liabilities at the Control Date. The new information was primarily in relation to CPKCM’s VAT assets and liabilities, as well as income and other tax positions, discussed further in Note 6. Other adjustments recorded in relation to assets and liabilities were not significant in value. These adjustments to the Company's Consolidated Balance Sheet had a negligible impact to the Company's net income in 2023.

Acquired cash and cash equivalents of $298 million are presented as an investing activity on the Company's Consolidated Statements of Cash Flows for the year ended December 31, 2023.

The net working capital acquired included trade receivables of $704 million and accounts payable and accrued liabilities of $970 million.

Intangible assets of $3,022 million consist of contracts and customer relationships with amortization periods of nine to 22 years as well as U.S. trackage rights and the KCS brand with indefinite estimated useful lives. Included in the acquired Properties are concession rights and related assets held under the terms of a concession from the Mexican government, which have provisional fair values totalling $9,176 million. The Concession rights and related assets are amortized over the shorter of the underlying asset lives and the estimated concession term, including one renewal period, of 74 years.

Net working capital and Other long-term liabilities included environmental liabilities of $15 million and $132 million, respectively, and legal and personal injury claims of $28 million and $40 million, respectively, which are contingent on the outcome of uncertain future events. The values are measured at estimated cost and evaluated for changes in facts at the end of the reporting period.

The excess of the total consideration, over the amounts allocated to acquired assets and assumed liabilities and the non-controlling interest recognized, has been recognized as goodwill of $17,565 million. Goodwill represents future synergies and an acquired assembled workforce. All of the goodwill has been assigned to the rail transportation operating segment. None of the goodwill is expected to be deductible for income tax purposes.

The Consolidated Statement of Income for the year ended December 31, 2023 included revenue of $3,467 million and net income attributable to controlling shareholders of $682 million from KCS, from the period of April 14, 2023 to December 31, 2023. On a pro forma basis, if the Company had consolidated KCS starting January 1, 2022, the revenue and net income attributable to controlling shareholders of the combined entity would be as follows for the years ended December 31, 2023 and December 31, 2022:
For the year ended December 31, 2023For the year ended December 31, 2022
(in millions of Canadian dollars)
KCS Historical(1)
Pro Forma CPKC
KCS Historical(1)
Pro Forma CPKC
Revenue$1,351 $13,909 $4,390 $13,217 
Net income attributable to controlling shareholders280 3,174 1,287 4,153 
(1) KCS's results were translated into Canadian dollars at the Bank of Canada daily exchange rate for the period from January 1 to April 13, 2023 and year ended December 31, 2022 with effective exchange rates of $1.35 and $1.30, respectively.

For the years ended December 31, 2023 and December 31, 2022, the supplemental pro forma Net income attributable to controlling shareholders for the combined entity were adjusted for:
•the removal of the remeasurement loss of $7,175 million upon the derecognition of CPRL's previously held equity method investment in KCS from the year ended December 31, 2023, which included the reclassification of associated AOCI to retained earnings; and recognition of this remeasurement loss in the year ended December 31, 2022;
•depreciation and amortization of differences between the historic carrying value and the preliminary fair value of tangible and intangible assets and investments prior to the Control Date;
•amortization of differences between the carrying amount and the fair value of debt through net interest expense prior to the Control Date;
•the elimination of intercompany transactions prior to the Control Date between the Company and KCS;
•miscellaneous amounts have been reclassified across revenue, operating expenses, and non-operating income or expense, consistent with CPKC's financial statement captions;
•the removal of equity earnings from KCS, previously held as an equity method investment prior to the Control Date, of $230 million and $1,074 million for the years ended December 31, 2023 and December 31, 2022, respectively;
•transaction costs incurred by the Company; and
•income tax adjustments including:
◦the derecognition of a deferred tax recovery of $7,832 million for the year ended December 31, 2023 related to the elimination of the deferred income tax liability on the outside basis difference of the investment in KCS; and recognition of this deferred income tax recovery in the year ended December 31, 2022;
◦the derecognition of a deferred tax recovery for the year ended December 31, 2023 on CPKC unitary state apportionment changes; and recognition of these CPKC unitary state apportionment changes in the year ended December 31, 2022;
◦a deferred tax recovery prior to the Control Date on amortization of fair value adjustments to investments, properties, intangible assets and debt; and
◦a current tax recovery on transaction costs expected to be incurred by CPKC.

During the year ended December 31, 2023, the Company incurred $190 million in acquisition-related costs, of which:
•$71 million were recognized in "Compensation and benefits" primarily related to restructuring costs, retention and synergy related incentive compensation costs;
•$2 million were recognized in "Materials";
•$111 million were recognized in "Purchased services and other" including third party purchased services, and payments made to certain communities across the combined network to address the environmental and social impacts of increased traffic as required by voluntary agreements with communities and conditions imposed by the STB pursuant to the STB's final decision approving the Company and KCS's joint merger application, including, but not limited to, payments related to new crossings, closure of existing crossings and other infrastructure projects; and
•$6 million were recognized in "Other expense".

KCS incurred acquisition-related costs of $11 million between January 1, 2023 and April 13, 2023, which were included within "Equity (earnings) loss of Kansas City Southern".

During the year ended December 31, 2022, the Company incurred $74 million in acquisition-related costs recognized within "Purchased services and other". Acquisition-related costs of $49 million incurred by KCS during the year ended December 31, 2022, were included in "Equity (earnings) loss of Kansas City Southern".

During the year ended December 31, 2021, the Company incurred $599 million in acquisition-related costs associated with the KCS acquisition, of which $183 million were recognized in "Purchased services and other"and $247 million were recognized in "Other expense". Acquisition-related costs of $169 million, incurred by KCS during the 18 days from the date the acquisition closed into the voting trust, were included in "Equity (earnings) loss of Kansas City Southern". The acquisition-related costs recognized in "Other expense" included the changes in fair value and realized gain from settlement of the FX forward contracts, changes in fair value and realized loss of the bond locks and forward starting floating-to-fixed interest rate swaps associated with debt issuances (see Note 18), amortization of financing fees associated with credit facilities, and FX gains on U.S. dollar-denominated cash on hand from the issuances of long-term debt to fund the KCS acquisition. Total financing fees paid for a bridge facility associated with the KCS acquisition for the year ended December 31, 2021 were $51 million, presented under "Cash used in financing activities" in the Company's Consolidated Statements of Cash Flows.
During the year ended December 31, 2023, the Company recognized $297 million ($228 million after deferred income tax recovery of $69 million) of KCS purchase accounting representing incremental depreciation and amortization in relation to fair value adjustments to depreciable property, plant and equipment, intangible assets with definite lives, and long-term debt, and amortized over the related assets' remaining useful lives, and the remaining terms to maturity of the debt instruments in "Net income attributable to controlling shareholders", including costs of:
•$234 million recognized in "Depreciation and amortization";
•$1 million recognized in "Purchased services and others";
•$17 million recognized in "Net interest expense";
•$2 million recognized in "Other expense";
•$48 million recognized in "Equity (earnings) loss of Kansas City Southern"; and
•a recovery of $5 million recognized in "Net loss attributable to non-controlling interest".
During the year ended December 31, 2022, the Company recognized $163 million KCS purchase accounting in "Equity (earnings) loss of Kansas City Southern".
v3.24.0.1
Investment in Kansas City Southern
 12 Months Ended
Dec. 31, 2023
Equity Method Investments and Joint Ventures [Abstract]  
Investment in Kansas City Southern Investment in Kansas City Southern
On April 14, 2023, the Company assumed control of KCS and subsequently derecognized its previously held equity method investment in KCS. The carrying amount of the Company's equity investment in KCS reported in the Consolidated Balance Sheets prior to derecognition reflected the total of the consideration paid to acquire KCS (see Note 11), the offsetting asset recorded on recognition of a deferred tax liability computed on an outside basis (see Note 6), the subsequent recognition of equity income recorded in "Equity (earnings) loss of Kansas City Southern" and "Other comprehensive Income (loss) from equity investees", the receipt of dividends from KCS, and foreign currency translation based on the period-end exchange rate.

The Company estimated approximately $30.0 billion of basis differences between the consideration paid to acquire KCS and the underlying carrying value of the net assets of KCS as at December 14, 2021. While the Company accounted for its investment in KCS using the equity method of accounting from December 14, 2021 until April 13, 2023, the basis difference was amortized and recorded as a reduction of the Company's equity earnings of KCS. The basis differences that related to depreciable property, plant and equipment, intangible assets with definite lives, and long-term debt were amortized over the related assets' remaining useful lives, and the remaining terms to maturity of the debt instruments. The remainder of the basis differences, relating to non-depreciable property, plant and equipment, intangible assets with indefinite lives, and equity method goodwill, were not amortized and carried at cost subject to an assessment for impairment.

For the period from January 1 to April 13, 2023, the Company recognized $230 million of equity earnings of KCS (year ended December 31, 2022 - $1,074 million), and received dividends from KCS of $300 million (year ended December 31, 2022 - $1,157 million). The foreign currency translation of the investment in KCS totalled a FX loss of $578 million (year ended December 31, 2022 - an FX gain of $2,891 million). Included within the equity earnings of KCS recognized for the period from January 1 to April 13, 2023 was amortization (net of tax) of basis differences of $48 million (year ended December 31, 2022 - $163 million). Equity earnings of KCS recognized for the year ended December 31, 2022 also included KCS's gain on unwinding of interest rate hedges of $212 million, which is net of the Company's associated purchase accounting basis differences and tax.

The following tables present summarized financial information for KCS, on its historical cost basis:

Consolidated Statements of Income

(in millions of Canadian dollars)(1)
For the period January 1 to April 13, 2023
For the year ended December 31, 2022(3)
For the period December 14 to December 31, 2021
Total revenues$1,351 $4,390 $178 
Total operating expenses888 2,794 287 
Operating income (loss)463 1,596 (109)
Less: Other(2)
83 (119)12 
Income (loss) before income taxes380 1,715 (121)
Net income (loss)$280 $1,287 $(106)
(1) Amounts translated at the average FX rate for the period from January 1 to April 13, 2023 of $1.00 USD = $1.35 CAD, for the year ended December 31, 2022 of $1.00 USD = $1.30 CAD, and for the period from December 14 to 31, 2021 of $1.00 USD = $1.28 CAD.
(2) Includes Equity in net earnings of KCS's affiliates, Interest expense, FX loss, Gain on settlement of treasury lock agreements, and Other income, net.
(3) Certain 2022 comparative figures have been revised to conform with current year's presentation regarding translation of KCS's historical results from U.S. dollars to Canadian dollars.
Consolidated Balance Sheet

(in millions of Canadian dollars)(1)
As at December 31, 2022
Assets
Current assets$1,441 
Properties12,680 
Other non-current assets340 
Liabilities
Current liabilities$1,748 
Long-term debt4,232 
Other non-current liabilities1,987 
Non-controlling interest448 
(1) Amounts translated at the December 31, 2022 year-end at FX rate of $1.00 USD = $1.35 CAD.
v3.24.0.1
Properties
 12 Months Ended
Dec. 31, 2023
Property, Plant and Equipment [Abstract]  
Properties Properties
202320232022
As at December 31
(in millions of Canadian dollars except percentages)		Weighted-average annual depreciation rateCostAccumulated
depreciation		Net book
value		CostAccumulated
depreciation		Net book
value
Track and roadway(1)
2.8 %$42,597 $6,811 $35,786 $21,524 $6,308 $15,216 
Rolling stock3.6 %8,125 1,629 6,496 5,085 1,523 3,562 
Land(1)
N/A3,487 — 3,487 964 — 964 
Concession land rights1.4 %1,779 17 1,762 — — — 
Buildings3.0 %1,732 281 1,451 1,069 254 815 
Other6.7 %4,065 1,303 2,762 3,038 1,210 1,828 
Total$61,785 $10,041 $51,744 $31,680 $9,295 $22,385 
(1) 2022 comparative figures have been reclassified to confirm with current year's presentation.

The breakdown of Concession assets included within each asset group of Properties shown above is as follows:

As at December 31, 2023 (in millions of Canadian dollars)CostAccumulated
depreciation		Net book
value
Track and roadway$7,056 $99 $6,957 
Concession land rights1,779 17 1,762 
Buildings230 7 223 
Other141 4 137 
Total$9,206 $127 $9,079 

Finance lease ROU assets

20232022
As at December 31 (in millions of Canadian dollars)CostAccumulated
depreciation		Net book
value		CostAccumulated
depreciation		Net book
value
Rolling stock$182 $79 $103 $170 $75 $95 
Other14 6 8 10 3 7 
Total ROU assets held under finance lease$196 $85 $111 $180 $78 $102 
Government assistance
During the year ended December 31, 2023, the Company received $25 million (2022 - $32 million) of government assistance towards the purchase and construction of properties.

As of December 31, 2023, the total Properties balance of $51,744 million includes $272 million (2022 - $285 million) of unamortized government assistance, primarily related to the enhancement of the Company's track and roadway infrastructure. Amortization expense related to government assistance for the year ended December 31, 2023, was $11 million (2022 - $11 million).
v3.24.0.1
Goodwill
 12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill Goodwill
(in millions of Canadian dollars)
Balance as at December 31, 2021$328 
Foreign exchange impact16 
Balance as at December 31, 2022344 
Addition (Note 11)
17,565 
Foreign exchange impact(180)
Balance as at December 31, 2023$17,729 

Addition to goodwill in 2023 represents the excess of the purchase price over the estimated fair value of the net assets acquired in the business acquisition of KCS. The goodwill represents synergies and an acquired assembled workforce.
v3.24.0.1
Intangible assets
 12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible assets Intangible assets
(in millions of Canadian dollars)
Cost(1)
Accumulated
amortization		Net carrying amount
Balance as at December 31, 2021$64 $(21)$43 
Amortization— (3)(3)
Foreign exchange impact2 — 2 
Balance as at December 31, 202266 (24)42 
Additions (Note 11)
3,022 — 3,022 
Amortization— (61)(61)
Foreign exchange impact(27)(2)(29)
Balance as at December 31, 2023$3,061 $(87)$2,974 
(1) As at December 31, 2023, the Company held $1,798 million (2022 - $9 million) of Intangible assets not subject to amortization.

Provided below is the estimated aggregate amortization expense for each of the five succeeding fiscal years, and thereafter:

(in millions of Canadian dollars)
2024$85 
202585
202685
202785
202885
2029 and thereafter751 
Total $1,176 
v3.24.0.1
Accounts payable and accrued liabilities
 12 Months Ended
Dec. 31, 2023
Payables and Accruals [Abstract]  
Accounts payable and accrued liabilities Accounts payable and accrued liabilities
As at December 31 (in millions of Canadian dollars)20232022
Trade payables$680 $503 
Accrued charges667 284 
Income and other taxes payable255 177 
Dividends payable177 177 
Accrued interest162 143 
Payroll-related accruals115 79 
Operating lease liabilities (Note 20)
102 68 
Accrued vacation99 62 
Personal injury and other claims provision81 53 
Financial derivative liability (Note 18)
60 — 
Stock-based compensation liabilities50 84 
Other119 73 
Total accounts payable and accrued liabilities$2,567 $1,703 
v3.24.0.1
Debt
 12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Debt Debt
The following table outlines the Company's outstanding long-term debt as at December 31, 2023:

(in millions of Canadian dollars except percentages)MaturityCurrency
in which
payable		20232022
4.45%
12.5-year Notes
(A)Mar 2023U.S.$$— $474 
1.589%
2-year Notes (1)
(A)Nov 2023CDN$— 1,000 
1.35%
3-year Notes (1)
(A)Dec 2024U.S.$1,983 2,030 
2.90%
10-year Notes
(A)Feb 2025U.S.$926 948 
3.70%
10.5-year Notes
(A)Feb 2026U.S.$330 338 
1.75%
5-year Notes (1)
(A)Dec 2026U.S.$1,321 1,353 
2.54%
6.3-year Notes (1)
(A)Feb 2028CDN$1,200 1,200 
4.00%
10-year Notes
(A)Jun 2028U.S.$661 677 
3.15%
10-year Notes
(A)Mar 2029CDN$400 399 
2.05%
10-year Notes
(A)Mar 2030U.S.$660 676 
7.125%
30-year Debentures
(A)Oct 2031U.S.$463 474 
2.45%
10-year Notes (1)
(A)Dec 2031U.S.$1,851 1,896 
5.75%
30-year Debentures
(A)Mar 2033U.S.$326 333 
4.80%
20-year Notes
(A)Sep 2035U.S.$396 405 
5.95%
30-year Notes
(A)May 2037U.S.$590 603 
6.45%
30-year Notes
(A)Nov 2039CDN$400 400 
3.00%
20-year Notes (1)
(A)Dec 2041U.S.$1,317 1,348 
5.75%
30-year Notes
(A)Jan 2042U.S.$326 334 
4.80%
30-year Notes
(A)Aug 2045U.S.$725 743 
3.05%
30-year Notes
(A)Mar 2050CDN$298 298 
3.10%
30-year Notes (1)
(A)Dec 2051U.S.$2,365 2,422 
6.125%
100-year Notes
(A)Sep 2115U.S.$1,190 1,219 
CPRC Notes issued under Debt Exchange
3.125%
10-year Notes
(B)Jun 2026U.S.$291 — 
2.875%
10-year Notes
(B)Nov 2029U.S.$499 — 
4.30%
30-year Notes
(B)May 2043U.S.$515 — 
4.95%
30-year Notes
(B)Aug 2045U.S.$574 — 
4.70%
30-year Notes
(B)May 2048U.S.$599 — 
3.50%
30-year Notes
(B)May 2050U.S.$540 — 
4.20%
50-year Notes
(B)Nov 2069U.S.$444 — 
2.875% - 7.00%
Other Senior Notes(B)up to Nov 2069U.S.$104 — 
5.41%Senior Secured Notes (C)Mar 2024U.S.$64 76 
6.91%Secured Equipment Notes (D)Oct 2024CDN$21 40 
2.96% - 4.29%
RRIF Loans(E)up to Feb 2037U.S.$70 — 
Obligations under finance leases
Various(F)VariousCDN$/U.S.$8 2 
2.32%(F)Sep 2026U.S.$8 — 
6.57%(F)Dec 2026U.S.$22 29 
12.77%(F)Jan 2031CDN$3 3 
1.93%(F)Feb 2041U.S.$4 4 
Commercial Paperup to Jan 2024U.S.$1,058 — 
22,552 19,724 
Perpetual 4% Consolidated Debenture Stock
(G)U.S.$40 41 
Perpetual 4% Consolidated Debenture Stock
(G)G.B.£6 6 
22,598 19,771 
Unamortized fees on long-term debt(104)(120)
22,494 19,651 
Less: Long-term debt maturing within one year3,143 1,510 
Total long-term debt$19,351 $18,141 
(1) Notes issued to fund the cash consideration component of the KCS acquisition (Note 11).

As at December 31, 2023, the gross amount of long-term debt denominated in U.S. dollars was U.S. $15,764 million (December 31, 2022 – U.S. $12,161 million).

Annual maturities and principal repayment requirements, excluding those pertaining to finance leases, for each of the five years following 2023 are (in millions): 2024 – $3,133; 2025 – $933; 2026 – $1,990; 2027 – $7; 2028 – $1,868; thereafter – $15,202.

Fees on long-term debt are amortized to income over the term of the related debt.

A.  These debentures and notes are presented net of unamortized discounts, require interest payments semi-annually, and are unsecured but carry a negative pledge.

In 2023, the Company repaid $1,000 million 1.589% 2-year Notes, and U.S. $350 million ($479 million) 4.45% 12.5-year Notes. In addition, the Company repaid U.S. $199 million ($272 million) of 3.85% 10-year Senior Notes, and U.S. $439 million ($592 million) of 3.00% 10-year Senior Notes by release of funds from the trustee as discussed below in “Satisfaction and discharge of KCS 2023 Notes”.

In 2022, the Company repaid $125 million 5.10% 10-year Medium Term Notes, and U.S. $250 million ($313 million) 4.50% 10-year Notes.

B. On March 20, 2023, the Company announced the commencement of offers to exchange any and all validly tendered (and not validly withdrawn notes) and accepted notes of seven series, each previously issued by KCS (the "Old Notes") for notes issued by Canadian Pacific Railway Company ("CPRC") (the "CPRC Notes"), a wholly-owned subsidiary of CPKC, and unconditionally guaranteed on an unsecured basis by CPKC. Each series of CPRC Notes has
the same interest rates, interest payment dates, maturity dates, and substantively the same optional redemption provisions as the corresponding series of Old Notes.

In exchange for each U.S. $1,000 principal amount of Old Notes that was validly tendered prior to March 31, 2023 (the "Early Participation Date") and not validly withdrawn, holders of Old Notes received consideration consisting of U.S. $1,000 principal amount of CPRC Notes and a cash amount of U.S. $1.00. This total consideration included an early participation premium, consisting of U.S. $30 principal amount of CPRC Notes per U.S. $1,000 principal amount of Old Notes. In exchange for each U.S. $1,000 principal amount of Old Notes that was validly tendered after the Early Participation Date but prior to the expiration of the exchange offers on April 17, 2023 (the "Expiration Date") and not validly withdrawn, holders of Old Notes received consideration consisting of U.S. $970 principal amount of CPRC Notes and a cash amount of U.S. $1.00. On April 19, 2023, the exchange offerings were settled with the issuance of $3,014 million of CPRC Notes. The notes which were not exchanged had a carrying value of $104 million at December 31, 2023.

The Debt Exchange was accounted for as a modification of debt. During the year ended December 31, 2023, the Company incurred $12 million of costs associated with the Debt Exchange, recorded in "Other expense"(see Note 5). These charges, and amounts paid to noteholders upon execution of the Debt Exchange, of $17 million, have been classified as "Acquisition-related financing fees" in the Company's Consolidated Statements of Cash Flows for the year ended December 31, 2023.

C.  The 5.41% Senior Secured Notes are collateralized by specific locomotives with a carrying value of $76 million as at December 31, 2023. The Company pays equal blended semi-annual payments of principal and interest.

D.  The 6.91% Secured Equipment Notes are full recourse obligations of the Company collateralized by a first charge on specific locomotive units with a carrying value of $27 million as at December 31, 2023. The Company pays equal blended semi-annual payments of principal and interest.

E. The following loans were made under the Railroad Rehabilitation and Improvement Financing (“RRIF”) Program administered by the Federal Railroad Administration:

The Kansas City Southern Railway Company ("KCSR") RRIF Loan Agreement was entered in February 21, 2012 to borrow U.S. $55 million to be used to reimburse KCSR for a portion of the purchase price of thirty new locomotives (the “Locomotives”) in the fourth quarter of 2011. The loan bears interest at 2.96% annually and the principal balance amortizes quarterly with a final maturity of February 24, 2037. This loan is secured by a first priority security interest in the Locomotives with a carrying value of $14 million as at December 31, 2023.

The Texas Mexican Railway Company RRIF Loan Agreement was entered in June 28, 2005 to borrow U.S. $50 million to be used for infrastructure improvements in order to accommodate growing freight rail traffic. The loan bears interest at 4.29% annually and the principal balance amortizes quarterly with a final maturity of July 13, 2030. The loan is guaranteed by Mexrail, which has issued a pledge agreement in favour of the lender equal to the gross revenues earned by Mexrail on per-car fees on traffic crossing the International Rail Bridge in Laredo, Texas. The Company wholly owns Mexrail which, in turn, wholly owns The Texas Mexican Railway Company.

F. In 2022 the Company repaid a U.S. $76 million ($97 million) 6.99% finance lease. The carrying value of the assets collateralizing the Company's finance lease obligations was $111 million at December 31, 2023.

G.  The Consolidated Debenture Stock, authorized by an Act of Parliament of 1889, constitutes a first charge upon and over the whole of the undertaking, railways, works, rolling stock, plant, property and effects of the Company, with certain exceptions.

Credit facilities
The Company has a revolving credit facility (the “facility”) agreement with 16 highly rated financial institutions for a commitment amount of U.S. $2.2 billion. The facility can accommodate draws of cash and/or letters of credit at market competitive pricing. Effective May 11, 2023, the Company entered into a second amended and restated credit agreement to extend the maturity dates and increase the total amount available under the facility. The amendment increased the amount available of the five-year tranche from U.S. $1.0 billion to U.S. $1.1 billion and extended the maturity date from September 27, 2026 to May 11, 2028. The amendment also increased the amount available of the two-year tranche from U.S. $300 million to U.S. $1.1 billion and extended the maturity date from September 27, 2023 to May 11, 2025. As at December 31, 2023 and 2022, the Company was in compliance with all terms and conditions of the credit facility arrangements and satisfied the financial covenant. As at December 31, 2023 and 2022, the facility was undrawn.

During the year ended December 31, 2022, the Company repaid in full the outstanding borrowings of U.S. $500 million ($636 million) on the term facility. The term facility was automatically terminated on September 15, 2022 following the final principal repayment.
The Company also has a commercial paper program, which enables it to issue commercial paper up to a maximum aggregate principal amount of U.S. $1.5 billion in the form of unsecured promissory notes. On July 12, 2023, the Company increased the maximum aggregate principal amount of commercial paper available to be issued from U.S. $1.0 billion to U.S. $1.5 billion. This commercial paper program is backed by the U.S. $2.2 billion revolving credit facility. As at December 31, 2023, the Company had total commercial paper borrowings outstanding of U.S. $800 million ($1,058 million), included in "Long-term debt maturing within one year" in the Company's Consolidated Balance Sheets (December 31, 2022 – $nil). The weighted-average interest rate on these borrowings as at December 31, 2023 was 5.59%. The Company presents issuances and repayments of commercial paper, all of which have a maturity of less than 90 days, in the Company's Consolidated Statements of Cash Flows on a net basis.

The Company has bilateral letter of credit facilities with six highly rated financial institutions to support its requirement to post letters of credit in the ordinary course of business. Under these agreements, the Company has the option to post collateral in the form of cash or cash equivalents, equal at least to the face value of the letter of credit issued. These agreements permit the Company to withdraw amounts posted as collateral at any time; therefore, the amounts posted as collateral are presented as “Cash and cash equivalents” on the Company’s Consolidated Balance Sheets. As at December 31, 2023 and 2022, the Company did not have any collateral posted on its bilateral letter of credit facilities but had letters of credit drawn of $93 million (December 31, 2022 – $75 million) from a total available amount of $300 million.

In May 2023 the Company terminated KCS's credit facility and commercial paper program.

Satisfaction and discharge of KCS 2023 Notes
On April 24, 2023, the Company irrevocably deposited U.S. $647 million of non-callable government securities with the trustee of two series of notes that matured in 2023 and were not included in the Debt Exchange (the "KCS 2023 Notes"), to satisfy and discharge KCS's obligations under the KCS 2023 Notes. As a result of the satisfaction and discharge, the obligations of the Company under the indenture with respect to the KCS 2023 Notes were terminated, except those provisions of the indenture that, by their terms, survive the satisfaction and discharge. The Company utilized existing cash resources and issuances of commercial paper to fund the satisfaction and discharge. On May 15, 2023 and November 15, 2023, the U.S. $439 million 3.00% senior notes and U.S. $199 million 3.85% senior notes, respectively, that comprise the KCS 2023 Notes were repaid by release of funds from the trustee. In the Company's Consolidated Statements of Cash Flows, the government securities purchased towards settlement of the May maturity were treated as a cash equivalent. The purchase of government securities of U.S. $198 million ($267 million) associated with the November maturity, along with the settlement of these government securities for U.S. $200 million ($274 million) were presented within investing activities. This transaction, along with the Debt Exchange mentioned above, relieved KCS from continuous disclosure obligations.
v3.24.0.1
Financial instruments
 12 Months Ended
Dec. 31, 2023
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 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 Company’s short-term financial instruments include cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, and short-term borrowings including commercial paper and term loans. The carrying value of short-term financial instruments approximate their fair values.

The carrying value of the Company’s long-term debt does not approximate its fair value. The estimated fair value 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. All measurements are classified as Level 2. The Company’s long-term debt, including current maturities, with a carrying value of $21,437 million as at December 31, 2023 (December 31, 2022 - $19,651 million), had a fair value of $20,550 million (December 31, 2022 - $17,720 million).

B.  Financial risk management
Derivative financial instruments
Derivative financial instruments may be used to selectively reduce volatility associated with fluctuations in interest rates, FX rates, the price of fuel, and stock-based compensation expense. Where derivatives are designated as hedging instruments, the relationship between the hedging instruments and their associated hedged items is documented, as well as the risk management objective and strategy for the use of the hedging instruments. This documentation includes linking the derivatives that are designated as fair value or cash flow hedges to specific assets or liabilities on the Company's Consolidated Balance Sheets, commitments, or forecasted transactions. At the time a derivative contract is entered into and at least quarterly thereafter, an assessment is made as to whether the derivative item is effective in offsetting the changes in fair value or cash flows of the hedged items. The derivative qualifies for hedge accounting treatment if it is effective in substantially mitigating the risk it was designed to address.

It is not the Company’s intent to use financial derivatives or commodity instruments for trading or speculative purposes.
Credit risk management
Credit risk refers to the possibility that a customer or counterparty will fail to fulfil its obligations under a contract and as a result create a financial loss for the Company.

The railway industry predominantly serves financially established customers, and the Company has experienced limited financial losses with respect to credit risk. The credit worthiness of customers is assessed using credit scores supplied by a third party and through direct monitoring of their financial well-being on a continual basis. The Company establishes guidelines for customer credit limits and should thresholds in these areas be reached, appropriate precautions are taken to improve collectability.

Counterparties to financial instruments expose the Company to credit losses in the event of non-performance. Counterparties for derivative and cash transactions are limited to high credit quality financial institutions, which are monitored on an ongoing basis. Counterparty credit assessments are based on the financial health of the institutions and their credit ratings from external agencies. The Company does not anticipate non-performance that would materially impact the Company’s Consolidated financial statements. In addition, the Company believes there are no significant concentrations of credit risk.

FX management
The Company conducts business transactions and owns assets in Canada, the U.S., and Mexico. As a result, the Company is exposed to fluctuations in the value of financial commitments, assets, liabilities, income, or cash flows due to changes in FX rates. The Company may enter into FX risk management transactions primarily to manage fluctuations in the exchange rate between Canadian and U.S. currencies, along with fluctuations in the Mexican peso and U.S dollar as discussed below in "Foreign currency derivative instruments". FX exposure is primarily mitigated through natural offsets created by revenues, expenditures, and balance sheet positions incurred in the same currency. Where appropriate, the Company may negotiate with customers and suppliers to reduce the net exposure.

Net investment hedge
The FX gains and losses on long-term debt are mainly unrealized and can only be realized when U.S. dollar-denominated long-term debt matures or is settled. The Company also has long-term FX exposure on its investment in foreign subsidiaries with a U.S. dollar functional currency. The majority of the Company’s U.S. dollar-denominated long-term debt, finance lease obligations, and operating lease liabilities have been designated as a hedge of the net investment in these foreign subsidiaries. This designation has the effect of mitigating volatility on Net income by offsetting long-term FX gains and losses on U.S. dollar-denominated long-term debt and gains and losses on its net investment. The effect of the net investment hedge recognized in “Other comprehensive (loss) income” in 2023 was an FX gain of $194 million, the majority of which was unrealized (2022 – unrealized loss of $471 million; 2021 – unrealized gain of $25 million) (see Note 8).

U.S.dollar- Canadian dollar FX forward contracts
During 2021, the Company entered into various FX forward contracts totalling a notional U.S. $1.0 billion to fix the FX rate and lock-in a portion of the amount of Canadian dollars it could have borrowed to finance the U.S. dollar-denominated cash portion of the total consideration payable pursuant to the Original Merger Agreement with KCS. During the third quarter of 2021, the Company settled the FX forward contracts and did not have any such contracts remaining as at December 31, 2021. The realized gain from settlement of the FX forward contracts was $13 million and was recorded in "Other expense" on the Company's Consolidated Statements of Income for the year ended December 31, 2021 (2023 - $nil; 2022 - $nil).

Mexican Peso- U.S dollar FX Forward contracts
The Company’s Mexican subsidiaries have net U.S. dollar-denominated monetary assets which, for Mexican income tax purposes, are subject to periodic revaluation based on changes in the value of the Mexican peso ("Ps.") against the U.S. dollar. This revaluation creates fluctuations in the Company’s Mexican income tax expense and the amount of income taxes paid in Mexican pesos. The Company also has net monetary assets denominated in Mexican pesos that are subject to periodic re-measurement and settlement that create fluctuations within "Other expense". The Company has hedged its net exposure to Mexican peso/U.S. dollar fluctuations in earnings with foreign currency forward contracts. The foreign currency forward contracts involve the Company’s agreement to buy or sell pesos at an agreed-upon exchange rate on a future date.

As at December 31, 2023, the Company had outstanding foreign currency forward contracts to purchase a notional value of U.S. $215 million. These outstanding contracts are at a weighted-average exchange rate of Ps.20.61 per U.S. $1.00, and have a maturity date of January 12, 2024. The Company has not designated any of the foreign currency derivative contracts as hedging instruments for accounting purposes. The Company measures the foreign currency derivative contracts at fair value each period and recognizes any change in "Other expense". The cash flows associated with these instruments are classified as "Operating activities" within the Consolidated Statements of Cash Flows.

Following the acquisition of control of KCS on April 14, 2023 and through the period ended December 31, 2023, the Company recorded a loss of $39 million related to foreign exchange currency forwards. As at December 31, 2023, the fair value of outstanding foreign exchange contracts included in "Accounts payable and accrued liabilities" was $60 million. On maturity, the Company settled all outstanding foreign currency forward contracts, resulting in a cash payment of $65 million.
Offsetting
The Company’s foreign currency forward contracts are executed with counterparties in the U.S. and are governed by International Swaps and Derivatives Association agreements that include standard netting arrangements. Asset and liability positions from contracts with the same counterparty are net settled upon maturity/expiration and presented on a net basis in the Company's Consolidated Balance Sheets prior to settlement.

Interest rate management
The Company is exposed to interest rate risk, which is the risk that the fair value or future cash flows of a financial instrument will vary as a result of changes in market interest rates. In order to manage funding needs or capital structure goals, the Company enters into debt or finance lease agreements that are subject to either fixed market interest rates set at the time of issue or floating rates determined by ongoing market conditions. Debt subject to variable interest rates exposes the Company to variability in interest expense, while debt subject to fixed interest rates exposes the Company to variability in the fair value of debt.

To manage interest rate exposure, the Company accesses diverse sources of financing and manages borrowings in line with a targeted range of capital structure, debt ratings, liquidity needs, maturity schedule, and currency and interest rate profiles. In anticipation of future debt issuances, the Company may enter into forward rate agreements that are designated as cash flow hedges, to substantially lock in all or a portion of the effective future interest expense. The Company may also enter into swap and lock agreements, designated as fair value hedges, to manage the mix of fixed and floating rate debt.

Forward starting swaps
In the first half of 2021, the Company entered into forward starting swaps with terms of up to 30 years, totalling a notional U.S. $2.4 billion to fix the benchmark rate on cash flows associated with highly probable forecasted issuances of long-term notes.

On May 21, 2021, the Original Merger Agreement with KCS was terminated which resulted in the Company ceasing hedge accounting for the U.S. $2.4 billion of forward starting swaps. However, as the note issuances were still reasonably possible to occur, fair value losses of $73 million prior to this determination remained in AOCI, net of tax. Fair value losses of $251 million during the period from May 21, 2021 through to the roll and re-designation described below were recorded within “Other Expense" on the Company’s Consolidated Statements of Income for the year ended December 31, 2021.

Following CP entering into the Merger Agreement with KCS, the Company rolled the notional U.S. $2.4 billion of forward starting swaps but did not effect a cash settlement. Concurrently, the Company re-designated the forward starting swaps totalling U.S. $2.4 billion to fix the benchmark rate on cash flows associated with highly probable forecasted issuances of long-term notes. The changes in fair value on the forward starting swaps were recorded in “Accumulated other comprehensive loss”, net of tax, as cash flow hedges until the notes were issued. Fair value gains subsequent to re-designation of $94 million were recorded within “Other comprehensive income” on the Company’s Consolidated Statements of Comprehensive Income for the year ended December 31, 2021.

During the fourth quarter of 2021, the Company cash settled all outstanding forward starting swaps related to debt issuances that occurred in the same period. The fair value of these derivative instruments at the time of settlement was a loss of $230 million. The related $21 million gain within "Accumulated other comprehensive loss" will be reclassified to "Net interest expense" ratably over the duration of the notes' hedged interest payments.

Bond locks
In the first quarter of 2021, the Company entered into seven-year interest rate bond locks totalling a notional $600 million to fix the benchmark rate on cash flows associated with a highly probable forecasted issuance of long-term notes.

On May 21, 2021, the Original Merger Agreement with KCS was terminated which resulted in the Company ceasing hedge accounting for the $600 million of bond locks. However, as the note issuances were still reasonably possible to occur, fair value losses of $2 million prior to this determination remained in “Accumulated other comprehensive loss”, net of tax. Fair value losses of $10 million during the period from May 21, 2021 through to the roll and re-designation described below were recorded within “Other expense" on the Company’s Consolidated Statements of Income for the year ended December 31, 2021.

Following CP entering into the Merger Agreement with KCS, the Company rolled the notional $600 million of bond locks but did not effect a cash settlement. Concurrently, the Company re-designated the bond locks totalling $600 million to fix the benchmark rate on cash flows associated with highly probable forecasted issuances of long-term notes. The changes in fair value on the bond locks are recorded in “Accumulated other comprehensive loss”, net of tax, as cash flow hedges until the notes were issued. Fair value gains subsequent to re-designation of $19 million were recorded within “Other comprehensive income” on the Company’s Consolidated Statements of Comprehensive Income for the year ended December 31, 2021.

During the fourth quarter of 2021, the Company cash settled all outstanding bond locks related to debt issuances that occurred in the same period. The fair value of these derivative instruments at the time of settlement was a gain of $7 million. The related $17 million gain within "Accumulated other comprehensive loss" will be reclassified to "Net interest expense" ratably over the duration of the notes' hedged interest payments.
Designated hedges that were previously settled were amortized from AOCI to "Net interest expense" for a total of $7 million in the year ended December 31, 2023 (2022 - $6 million; 2021 - $10 million).
v3.24.0.1
Other long-term liabilities
 12 Months Ended
Dec. 31, 2023
Other Liabilities Disclosure [Abstract]  
Other long-term liabilities Other long-term liabilities
As at December 31 (in millions of Canadian dollars)20232022
Operating lease liabilities, net of current portion (Note 20)
$242 $202 
Provision for environmental remediation, net of current portion(1)
200 71 
Stock-based compensation liabilities, net of current portion161 125 
Deferred lease and license revenue, net of current portion(2)
68 15 
Deferred revenue, net of current portion (Note 4)
16 39 
Other, net of current portion110 68 
Total other long-term liabilities$797 $520 
(1) As at December 31, 2023, the aggregate provision for environmental remediation, including the current portion was $220 million (2022 – $83 million).
(2) The deferred lease and license revenue is being amortized to income on a straight-line basis over the related lease terms.

Provision for environmental remediation
Environmental remediation accruals cover site-specific remediation programs. The estimate of the probable costs to be incurred in the remediation of properties contaminated by past activities reflects the nature of contamination at individual sites according to typical activities and scale of operations conducted. The Company has developed remediation strategies for each property based on the nature and extent of the contamination, as well as the location of the property and surrounding areas that may be adversely affected by the presence of contaminants, considering available technologies, treatment and disposal facilities and the acceptability of site-specific plans based on the local regulatory environment. Site-specific plans range from containment and risk management of the contaminants through to the removal and treatment of the contaminants and affected soils and groundwater. The details of the estimates reflect the environmental liability at each property. 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”. Payments are expected to be made over 10 years to 2033.
The accruals for environmental remediation represent the Company’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 the Company’s best estimate of all probable costs, the Company’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, 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. Changes to costs are reflected as changes to “Other long-term liabilities” or “Accounts payable and accrued liabilities” on the Company's Consolidated Balance Sheets and to “Purchased services and other” within operating expenses on the Company's Consolidated Statements of Income. The amount charged to income in 2023 was $8 million (2022 – $8 million; 2021 – $10 million)
v3.24.0.1
Leases
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Leases Leases
The Company’s leases have remaining terms of less than one year to 17 years. Residual value guarantees are also provided on certain vehicle operating leases. Cumulatively, these guarantees are limited to $1 million and are not included in lease liabilities as it is not currently probable that any amounts will be owed.
Components of lease expense included in the Consolidated Statements of Income for the years ended December 31 are as follows:

(in millions of Canadian dollars)202320222021
Operating lease cost$94 $77 $74 
Short-term lease cost29 17 16 
Variable lease cost10 9 5 
Sublease income(1)(2)(3)
Finance lease cost
Amortization of ROU assets10 6 10 
Interest on lease liabilities2 4 10 
Total lease costs$144 $111 $112 

ROU Assets and Lease Liabilities included in the Consolidated Balance Sheet are as follows:

As at December 31 (in millions of Canadian dollars)Classification20232022
 ROU Assets
Operating leasesOther assets (long-term)$347 $267 
Finance leasesProperties111 102 
Lease Liabilities
Current liabilities
Operating leasesAccounts payable and accrued liabilities102 68 
Finance leasesLong-term debt maturing within one year14 8 
Long-term liabilities
Operating leasesOther long-term liabilities242 202 
Finance leasesLong-term debt 31 30 

The following table provides the Company's weighted-average remaining lease terms and discount rates:

20232022
Weighted-Average Remaining Lease Term
Operating leases5 years5 years
Finance leases4 years6 years
Weighted-Average Discount Rate
Operating leases3.93 %3.20 %
Finance leases6.18 %6.89 %
Cash Flow information related to leases is as follows:

As at December 31 (in millions of Canadian dollars)202320222021
Cash paid for amounts included in measurement of lease liabilities
Operating cash outflows from operating leases$96 $64 $64 
Operating cash outflows from finance leases2 6 10 
Financing cash outflows from finance leases13 104 8 
ROU assets obtained in exchange for lease liabilities
Operating leases62 34 36 
Finance leases— — 5 

The following table provides the maturities of lease liabilities for the next five years and thereafter as at December 31, 2023:

(in millions of Canadian dollars)Finance leasesOperating leases
2024$15 $110 
202514 86 
202614 77 
20271 50 
2028— 30 
Thereafter7 29 
Total lease future payments51 382 
Imputed interest(6)(37)
Present value of future lease payments$45 $345 
Leases Leases
The Company’s leases have remaining terms of less than one year to 17 years. Residual value guarantees are also provided on certain vehicle operating leases. Cumulatively, these guarantees are limited to $1 million and are not included in lease liabilities as it is not currently probable that any amounts will be owed.
Components of lease expense included in the Consolidated Statements of Income for the years ended December 31 are as follows:

(in millions of Canadian dollars)202320222021
Operating lease cost$94 $77 $74 
Short-term lease cost29 17 16 
Variable lease cost10 9 5 
Sublease income(1)(2)(3)
Finance lease cost
Amortization of ROU assets10 6 10 
Interest on lease liabilities2 4 10 
Total lease costs$144 $111 $112 

ROU Assets and Lease Liabilities included in the Consolidated Balance Sheet are as follows:

As at December 31 (in millions of Canadian dollars)Classification20232022
 ROU Assets
Operating leasesOther assets (long-term)$347 $267 
Finance leasesProperties111 102 
Lease Liabilities
Current liabilities
Operating leasesAccounts payable and accrued liabilities102 68 
Finance leasesLong-term debt maturing within one year14 8 
Long-term liabilities
Operating leasesOther long-term liabilities242 202 
Finance leasesLong-term debt 31 30 

The following table provides the Company's weighted-average remaining lease terms and discount rates:

20232022
Weighted-Average Remaining Lease Term
Operating leases5 years5 years
Finance leases4 years6 years
Weighted-Average Discount Rate
Operating leases3.93 %3.20 %
Finance leases6.18 %6.89 %
Cash Flow information related to leases is as follows:

As at December 31 (in millions of Canadian dollars)202320222021
Cash paid for amounts included in measurement of lease liabilities
Operating cash outflows from operating leases$96 $64 $64 
Operating cash outflows from finance leases2 6 10 
Financing cash outflows from finance leases13 104 8 
ROU assets obtained in exchange for lease liabilities
Operating leases62 34 36 
Finance leases— — 5 

The following table provides the maturities of lease liabilities for the next five years and thereafter as at December 31, 2023:

(in millions of Canadian dollars)Finance leasesOperating leases
2024$15 $110 
202514 86 
202614 77 
20271 50 
2028— 30 
Thereafter7 29 
Total lease future payments51 382 
Imputed interest(6)(37)
Present value of future lease payments$45 $345 
v3.24.0.1
Shareholders' equity
 12 Months Ended
Dec. 31, 2023
Equity [Abstract]  
Shareholders' equity Shareholders’ equity
Authorized and issued share capital
The Company is authorized to issue an unlimited number of Common Shares, an unlimited number of First Preferred Shares, and an unlimited number of Second Preferred Shares. As at December 31, 2023, no First or Second Preferred Shares had been issued.

The following table summarizes information related to Common Share balances as at December 31:

(number of shares in millions)202320222021
Share capital, January 1930.5 929.7 666.3 
Shares issued under stock option plan1.6 0.8 0.8 
   Shares issued for KCS acquisition (Note 11)
— — 262.6 
Share capital, December 31932.1 930.5 929.7 

The change in the “Share capital” balance includes $17 million of stock-based compensation transferred from “Additional paid-in capital” (2022 – $9 million; 2021 – $7 million).

Share repurchases
In connection with the KCS transaction, the Company suspended share repurchases and did not have an active program as at December 31, 2023 and December 31, 2022.
On January 27, 2021, the Company announced a NCIB, commencing January 29, 2021, to purchase up to 16.7 million Common Shares in the open market for cancellation on or before January 28, 2022. The Company did not purchase any Common Shares under this NCIB.

Share split
On April 21, 2021, the Company's shareholders approved a five-for-one share split to common shareholders of record as of May 5, 2021. Proportional adjustments were made to all outstanding awards under the Company's stock-based compensation plans in order to reflect the share split. All common share and per common share amounts have been retroactively adjusted to reflect the impact of the share split.
v3.24.0.1
Change in non-cash working capital balances related to operations
 12 Months Ended
Dec. 31, 2023
Supplemental Cash Flow Elements [Abstract]  
Change in non-cash working capital balances related to operations Change in non-cash working capital balances related to operations
For the year ended December 31 (in millions of Canadian dollars)202320222021
(Use) source of cash:
Accounts receivable, net$(317)$(147)$32 
Materials and supplies1 (27)(14)
Other current assets(49)(13)24 
Accounts payable and accrued liabilities57 95 (108)
Change in non-cash working capital balances related to operations$(308)$(92)$(66)
v3.24.0.1
Pensions and other benefits
 12 Months Ended
Dec. 31, 2023
Retirement Benefits [Abstract]  
Pensions and other benefits Pensions and other benefits
The Company has both defined benefit (“DB”) and defined contribution (“DC”) pension plans. At December 31, 2023, the Canadian pension plans represent nearly all of total combined pension plan assets and nearly all of total combined pension plan obligations.

The DB plans provide for pensions based principally on years of service and compensation rates near retirement. Pensions for Canadian pensioners are partially indexed to inflation. Annual employer contributions to the DB plans, which are actuarially determined, are made on the basis of being not less than the minimum amounts required by federal pension supervisory authorities.

The Company has other benefit plans including post-retirement health benefits and life insurance, post-employment long-term disability and workers’ compensation benefits based on Company-specific claims, and certain other non-pension post-employment benefits. At December 31, 2023, the Canadian other benefits plans represent nearly all of total combined other plan obligations.

The Audit and Finance Committee of the Board of Directors has approved an investment policy that establishes long-term asset mix targets, which take into account the Company’s expected risk tolerances. Pension plan assets are managed by a suite of independent investment managers, with the allocation by manager reflecting these asset mix targets. Most of the assets are actively managed with the objective of outperforming applicable benchmarks. In accordance with the investment policy, derivative instruments may be used by investment managers to hedge or adjust existing or anticipated exposures.

To develop the expected long-term rate of return assumption used in the calculation of net periodic benefit cost applicable to the market-related value of plan assets, the Company considers the expected composition of the plans’ assets, past experience, and future estimates of long-term investment returns. Future estimates of investment returns reflect the long-term return expectation for fixed income, public equity, real estate, infrastructure, private debt, and absolute return investments, and the expected added value (relative to applicable benchmark indices) from active management of pension plan assets.

The Company has elected to use a market-related value of assets for the purpose of calculating net periodic benefit cost, developed from a five-year average of market values for the plans’ public equity and absolute return investments (with each prior year’s market value adjusted to the current date for assumed investment income during the intervening period) plus the market value of the plans’ fixed income, real estate, infrastructure, and private debt securities.

The benefit obligation is discounted using a discount rate that is a blended yield to maturity for a hypothetical portfolio of high-quality debt instruments with cash flows matching projected benefit payments. The discount rate is determined by management.
Net periodic benefit (recovery) cost
The elements of net periodic benefit (recovery) cost for DB pension plans and other benefits recognized in the year include the following components:

 PensionsOther benefitsTotal
For the year ended December 31 (in millions of Canadian dollars)202320222021202320222021202320222021
Current service cost$71 $148 $171 $10 $11 $13 $81 $159 $184 
Other components of net periodic benefit (recovery) cost:
Interest cost on benefit obligation486 383 351 22 16 16 508 399 367 
Expected return on plan assets(882)(959)(959)— — — (882)(959)(959)
Recognized net actuarial loss (gain)32 153 206 13 (5)(1)45 148 205 
Amortization of prior service costs2 1 — — — — 2 1 — 
Total other components of net periodic benefit (recovery) cost(362)(422)(402)35 11 15 (327)(411)(387)
Net periodic benefit (recovery) cost$(291)$(274)$(231)$45 $22 $28 $(246)$(252)$(203)

Projected benefit obligation, plan assets, and funded status
Information about the Company’s DB pension plans and other benefits, in aggregate, is as follows:

 PensionsOther benefitsTotal
(in millions of Canadian dollars)202320222023202220232022
Change in projected benefit obligation:
Projected benefit obligation at January 1$9,936 $12,884 $411 $503 $10,347 $13,387 
Current service cost71 148 10 11 81 159 
Interest cost486 383 22 16 508 399 
Employee contributions48 42 — — 48 42 
Benefits paid(656)(680)(37)(22)(693)(702)
Foreign currency changes(4)16 6 — 2 16 
Addition of KCS plans— — 31 — 31 — 
Plan amendments and other18 27 (1)— 17 27 
Net actuarial loss (gain)407 (2,884)21 (97)428 (2,981)
Projected benefit obligation at December 31$10,306 $9,936 $463 $411 $10,769 $10,347 

The net actuarial losses for Pensions and Other benefits in 2023 were primarily due to the decrease in discount rate from 5.01% to 4.64%. The net actuarial gains for Pensions and Other benefits in 2022 were primarily due to the increase in discount rate from 3.01% to 5.01%.
 PensionsOther benefitsTotal
(in millions of Canadian dollars)202320222023202220232022
Change in plan assets:
Fair value of plan assets at January 1$12,862 $14,938 $5 $5 $12,867 $14,943 
Actual return on plan assets1,207 (1,464)1 — 1,208 (1,464)
Employer contributions15 14 37 22 52 36 
Employee contributions48 42 — — 48 42 
Benefits paid(656)(680)(37)(22)(693)(702)
Foreign currency changes(4)12 — — (4)12 
Fair value of plan assets at December 31$13,472 $12,862 $6 $5 $13,478 $12,867 
Funded status – plan surplus (deficit)$3,166 $2,926 $(457)$(406)$2,709 $2,520 

The table below shows the aggregate pension projected benefit obligation and aggregate fair value of plan assets for pension plans with fair value of plan assets in excess of projected benefit obligations (i.e. surplus), and for pension plans with projected benefit obligations in excess of fair value of plan assets (i.e. deficit):

 20232022
(in millions of Canadian dollars)Pension
plans in
surplus		Pension
plans in
deficit		Pension
plans in
surplus		Pension
plans in
deficit
Projected benefit obligation at December 31$(9,872)$(434)$(9,512)$(424)
Fair value of plan assets at December 3113,210 262 12,613 249 
Funded status$3,338 $(172)$3,101 $(175)

The DB pension plans’ accumulated benefit obligation as at December 31, 2023 was $10,155 million (2022 – $9,747 million). The accumulated benefit obligation is calculated on a basis similar to the projected benefit obligation, except no future salary increases are assumed in the projection of future benefits. For pension plans with accumulated benefit obligations in excess of fair value of plan assets (i.e. deficit), the aggregate pension accumulated benefit obligation as at December 31, 2023 was $327 million (2022 – $332 million) and the aggregate fair value of plan assets as at December 31, 2023 was $189 million (2022 – $186 million).

All Other benefits plans were in a deficit position as at December 31, 2023 and 2022.

Pension asset and liabilities in the Company’s Consolidated Balance Sheets
Amounts recognized in the Company’s Consolidated Balance Sheets are as follows:

 PensionsOther benefitsTotal
As at December 31 (in millions of Canadian dollars)202320222023202220232022
Pension asset$3,338 $3,101 $— $— $3,338 $3,101 
Accounts payable and accrued liabilities(11)(10)(37)(33)(48)(43)
Pension and other benefit liabilities(161)(165)(420)(373)(581)(538)
Total amount recognized$3,166 $2,926 $(457)$(406)$2,709 $2,520 

The measurement date used to determine the plan assets and the benefit obligation is December 31. The most recent actuarial valuation for pension funding purposes for the Company’s main Canadian pension plan was performed as at January 1, 2023. During 2024, the Company expects to file with the pension regulator a new valuation performed as at January 1, 2024.
Accumulated other comprehensive (loss) income
Amounts recognized in AOCI are as follows:

 PensionsOther benefitsTotal
As at December 31 (in millions of Canadian dollars)202320222023202220232022
Net actuarial (loss) gain:
Other than deferred investment (losses) gains$(1,871)$(1,711)$28 $35 $(1,843)$(1,676)
Deferred investment (losses) gains(191)(301)— — (191)(301)
Prior service cost(47)(31)(1)(1)(48)(32)
Deferred income tax626 608 (7)(9)619 599 
Total (Note 8)
$(1,483)$(1,435)$20 $25 $(1,463)$(1,410)

Actuarial assumptions
Weighted-average actuarial assumptions used were approximately:

(percentages)202320222021
Benefit obligation at December 31:
Discount rate4.64 5.01 3.01 
Projected future salary increases2.75 2.75 2.75 
Health care cost trend rate5.00 5.00 5.00 
Benefit cost for year ended December 31:
Discount rate5.01 3.01 2.58 
Expected rate of return on plan assets (1)
6.90 6.90 6.90 
Projected future salary increases2.75 2.75 2.75 
Health care cost trend rate5.00 5.00 5.00 
(1) The expected rate of return on plan assets that will be used to compute the 2024 net periodic benefit recovery is 6.70%.

Plan assets
Plan assets are recorded at fair value. The major asset categories are public equity securities, fixed income securities, real estate, infrastructure, absolute return investments, and private debt. The fair values of the public equity and fixed income securities are primarily based on quoted market prices. Real estate and infrastructure values are based on the value of each fund’s assets as calculated by the fund manager, generally using third party appraisals or discounted cash flow analysis and taking into account current market conditions and recent sales transactions where practical and appropriate. Private debt values are based on the value of each fund’s assets as calculated by the fund manager taking into account current market conditions and reviewed annually by external parties. Absolute return investments are a portfolio of units of externally managed hedge funds and are valued by the fund administrators.
The Company’s pension plan asset allocation, the weighted-average asset allocation targets, and the weighted-average policy range for each major asset class at year-end were as follows:

 Percentage of plan assets
 at December 31
Asset allocation (percentage)Asset allocation targetPolicy range20232022
Cash and cash equivalents2.7 
0 – 10
2.2 1.1 
Fixed income38.1 
20 – 43
31.2 20.5 
Public equity29.7 
24 – 55
35.8 46.4 
Real estate and infrastructure14.7 
6 – 20
11.3 11.4 
Private debt7.4 
3 – 13
8.4 7.7 
Absolute return7.4 
3 – 13
11.1 12.9 
Total100.0 100.0 100.0 

In April 2023, the Audit and Finance Committee approved changes to the asset allocation for the Company's main Canadian DB pension plan. The changes began in 2023 and will continue to be implemented on a measured basis in 2024. All asset allocations are within their policy ranges at December 31, 2023.
Summary of the assets of the Company’s DB pension plans
The following is a summary of the assets of the Company’s DB pension plans at December 31, 2023 and 2022. As at December 31, 2023 and 2022, there were no plan assets classified as Level 3 valued investments.

Assets Measured at Fair Value
Investments
measured at NAV(1)
Total Plan
Assets
(in millions of Canadian dollars)Quoted prices in
active markets
for identical assets (Level 1)		Significant other observable inputs (Level 2)
December 31, 2023
Cash and cash equivalents$297 $— $— $297 
Fixed income
Government bonds(2)
211 1,900 — 2,111 
Corporate bonds(2)
644 998 — 1,642 
Mortgages(3)
206 — — 206 
Mortgage-backed and asset-backed securities(4)
— 123 — 123 
Public equities
Canada534 — — 534 
U.S. and international4,293 — — 4,293 
Real estate(5)
— — 563 563 
Infrastructure(6)
— — 961 961 
Private debt(7)
— — 1,128 1,128 
Derivative instruments(8)
— 116 — 116 
Absolute return(9)
Funds of hedge funds— — 1,498 1,498 
$6,185 $3,137 $4,150 $13,472 
December 31, 2022
Cash and cash equivalents$218 $— $— $218 
Fixed income
Government bonds(2)
180 1,125 — 1,305 
Corporate bonds(2)
432 724 — 1,156 
Mortgages(3)
182 2 — 184 
Public equities
Canada769 — — 769 
U.S. and international5,195 — — 5,195 
Real estate(5)
— — 722 722 
Infrastructure(6)
— — 744 744 
Private debt(7)
— — 992 992 
Derivative instruments(8)
— (81)— (81)
Absolute return(9)
Funds of hedge funds— — 1,658 1,658 
$6,976 $1,770 $4,116 $12,862 
(1) Investments measured at net asset value ("NAV"):
Amounts are comprised of certain investments measured using NAV (or its equivalent) as a practical expedient. These investments have not been classified in the fair value hierarchy.
(2) Government & Corporate Bonds:
Fair values for bonds are based on market prices supplied by independent sources as of the last trading day.
(3) Mortgages:
The fair values of mortgages are based on current market yields of financial instruments of similar maturity, coupon and risk factors.
(4) Mortgage-backed and asset-backed securities:
The fair values of mortgage-backed and asset-backed securities are determined based on valuations from pricing sources that incorporate broker-dealer quotations, reported trades or valuation estimates from their internal pricing models which consider tranche-level attributes, current market data, estimated cash flows and market-based yield spreads and incorporate deal collateral performance, as available.
(5) Real estate:
Real estate fund values are based on the NAV of the funds that invest directly in real estate investments. The values of the investments have been estimated using the capital accounts representing the plans' ownership interest in the funds. Of the total, $480 million is subject to redemption frequencies ranging from monthly to annually and a redemption notice period of 90 days (2022 – $595 million). The remaining $83 million is not subject to redemption and is normally returned through distributions as a result of the liquidation of the underlying real estate investments (2022 – $127 million). As at December 31, 2023, there are $166 million of unfunded commitments for real estate investments (December 31, 2022 – $40 million).
(6) Infrastructure:
Infrastructure fund values are based on the NAV of the funds that invest directly in infrastructure investments. The values of the investments have been estimated using the capital accounts representing the plans' ownership interest in the funds. Of the total, $493 million is subject to redemption frequencies ranging from monthly to annually and a redemption notice period of 90 days (2022 – $356 million). The remaining $468 million is not subject to redemption and is normally returned through distributions as a result of the liquidation of the underlying infrastructure investments (2022 – $388 million). As at December 31, 2023, there are $220 million of unfunded commitments for infrastructure investments (December 31, 2022 – $356 million).
(7) Private debt:
Private debt fund values are based on the NAV of the funds that invest directly in private debt investments. The values of the investments have been estimated using the capital accounts representing the plans' ownership interest in the funds. Of the total, $124 million is subject to redemption frequencies ranging from monthly to annually and a redemption notice period of 90 days (2022 – $160 million). The remaining $1,004 million is not subject to redemption and is normally returned through distributions as a result of the repayment of the underlying loans (2022 - $832 million). As at December 31, 2023, there are $540 million of unfunded commitments for private debt investments (December 31, 2022 – $747 million).
(8) Derivatives:
The investment managers may utilize the following derivative instruments: equity futures to replicate equity index returns (Level 2); currency forwards to partially hedge foreign currency exposures (Level 2); bond futures and forwards to manage duration and interest rate risk (Level 2); interest rate swaps to manage duration and interest rate risk (Level 2); credit default swaps to manage credit risk (Level 2); and options to manage interest rate risk and volatility (Level 2). The Company may utilize derivatives directly, but only for the purpose of hedging foreign currency exposures. One of the fixed income investment managers utilizes a portfolio of bond forwards for the purpose of reducing asset/liability interest rate exposure. As at December 31, 2023, there are bond forwards with a notional value of $1,396 million (December 31, 2022 – $1,745 million) and a fair value of $116 million (December 31, 2022 – $(81) million).
(9) Absolute return:
The value of absolute return fund investments is based on the NAV reported by the fund administrators. The funds have different redemption policies with redemption notice periods varying from 30 to 120 days and frequencies ranging from monthly to triennially.

Additional plan assets information
The Company's primary investment objective for pension plan assets is to achieve a long-term return, net of all fees and expenses, that is sufficient for the plan's assets to satisfy the current and future obligations to plan beneficiaries, while minimizing the financial impact on the Company. In identifying the asset allocation ranges, consideration was given to the long-term nature of the underlying plan liabilities, the solvency and going-concern financial position of the plan, long-term return expectations, and the risks associated with key asset classes as well as the relationships of returns on key asset classes with each other, inflation, and interest rates. When advantageous and with due consideration, derivative instruments may be utilized by investment managers, provided the total value of the underlying assets represented by financial derivatives (excluding currency forwards, liability hedging derivatives in fixed income portfolios, and derivatives held by absolute return funds) is limited to 30% of the market value of the fund.

The funded status of the plans is exposed to fluctuations in interest rates, which affects the relative values of the plans' liabilities and assets. In order to mitigate interest rate risk, the Company's main Canadian DB pension plan utilizes a liability driven investment strategy in its fixed income portfolio, which uses a combination of long duration bonds and derivatives to hedge interest rate risk, managed by the investment manager. As at December 31, 2023, the plan's solvency funded position was 50% hedged against interest rate risk (2022 – 45%).

When investing in foreign securities, the plans are exposed to foreign currency risk; the effect of which is included in the valuation of the foreign securities. At December 31, 2023, the plans were 41% exposed to the U.S. dollar, 7% exposed to the Euro, and 9% exposed to various other currencies. At December 31, 2022, the plans were 50% exposed to the U.S. dollar, 6% exposed to the Euro, and 10% exposed to various other currencies.

At December 31, 2023, plan assets included 354,530 of the Common Shares of the Company (2022 – 570,074) at a market value of $37 million (2022 – $58 million) and Fixed Income securities of the Company at a market value of $2 million (2022 – $5 million).
Estimated future benefit payments
The estimated future DB pension and other benefit payments to be paid by the plans for each of the next five years and the subsequent five-year period are as follows:

(in millions of Canadian dollars)PensionsOther benefits
2024$668 $37 
2025663 35 
2026662 34 
2027661 33 
2028663 38 
2029-20333,265 159 

The benefit payments from the Canadian registered and U.S. qualified DB pension plans are payable from their respective pension funds. Benefit payments from the supplemental pension plans and from the other benefits plans are payable directly by the Company.

Defined contribution plan
Canadian non-unionized employees hired prior to July 1, 2010 had the option to participate in the Canadian DC plan. All Canadian non-unionized employees hired after such date must participate in this plan. Employee contributions are based on a percentage of salary. The Company matches employee contributions to a maximum percentage each year.

Effective July 1, 2010, a new U.S. DC plan was established. Non-unionized employees of Soo Line Railroad Company; Dakota, Minnesota & Eastern Railroad; and Delaware & Hudson Railway Company, Inc. hired after such date must participate in this plan. Employees do not contribute to the plan. The Company annually contributes a percentage of salary.

The DC plans provide a pension based on total employee and employer contributions plus investment income earned on those contributions.

In 2023, the net cost of the DC plans, which generally equals the employer’s required contribution, was $14 million (2022 – $12 million; 2021 – $13 million).

Contributions to multi-employer plans
Some of the Company’s unionized employees in the U.S. are members of a U.S. national multi-employer benefit plan. Contributions made by the Company to this plan in 2023 in respect of post-retirement medical benefits were $4 million (2022 – $2 million; 2021 – $3 million).
v3.24.0.1
Stock-based compensation
 12 Months Ended
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]  
Stock-based compensation Stock-based compensation
At December 31, 2023, the Company had several stock-based compensation plans including a stock options plan, various cash-settled liability plans, and an employee share purchase plan. These plans resulted in an expense of $122 million in 2023 (2022 – $113 million; 2021 – $131 million) and the total tax benefit related to these plans was $27 million in 2023 (2022 – $26 million; 2021 – $29 million).
A. Stock options plan
The following table summarizes the activity related to the stock options during 2023:

Options outstandingNon-vested options
Number of
stock options		Weighted-average
exercise price		Number of
stock options		Weighted-average
grant date
fair value
Outstanding, January 1, 20237,353,133 $61.69 2,597,008 $18.09 
Granted856,332 $105.13 856,332 $29.79 
Exercised(1,634,730)$42.13 N/AN/A
VestedN/AN/A(1,047,434)$16.66 
Forfeited(102,803)$92.84 (102,803)$23.08 
Outstanding, December 31, 20236,471,932 $71.03 2,303,103 $22.87 
Vested or expected to vest at December 31, 2023(1)
6,428,547 $70.83 N/AN/A
Exercisable, December 31, 20234,168,829 $58.20 N/AN/A
(1) As at December 31, 2023, the weighted-average remaining term of vested or expected to vest options was 3.3 years with an aggregate intrinsic value of $219 million.

The following table provides the number of stock options outstanding and exercisable as at December 31, 2023 by range of exercise price and their related intrinsic aggregate value, and for stock options outstanding, the weighted-average years to expiration. The table also provides the aggregate intrinsic value for in-the-money stock options, which represents the amount that would have been received by option holders had they exercised their options on December 31, 2023 at the Company’s closing stock price of $104.84.

Options outstandingOptions exercisable
Range of exercise pricesNumber of
stock options		Weighted-average
years to
expiration		Weighted-average
exercise
price		Aggregate
intrinsic
value
(millions)		Number of
stock options		Weighted-average
exercise
price		Aggregate
intrinsic
value
(millions)
$30.94 - $50.19
1,693,436 1.2$40.04 $110 1,693,436 $40.04 $110 
$50.20 - $70.36
1,395,999 2.3$58.53 $65 1,284,814 $57.53 $61 
$70.37 - $94.27
1,610,826 4.0$82.99 $35 822,618 $80.20 $20 
$94.28 - $109.01
1,771,671 5.3$99.62 $9 367,961 $94.94 $4 
Total(1)
6,471,932 3.3$71.03 $219 4,168,829 $58.20 $195 
(1) As at December 31, 2023, the total number of in-the-money stock options outstanding was 5,787,281 with a weighted-average exercise price of $66.96. The weighted-average years to expiration of exercisable stock options is 2.3 years.

Pursuant to the plan, stock options may be exercised upon vesting, which is between 12 and 48 months after the grant date, and expire seven years from the grant date. The grant date fair value of the stock options granted in 2023 was $26 million (2022 – $16 million; 2021 – $26 million). The following table provides assumptions used to determine the fair values of stock option awards, and the weighted-average grant date fair values for units granted in 2023, 2022 and 2021:

202320222021
Expected option life (years)(1)
4.754.754.75
Risk-free interest rate(2)
3.35 %1.62 %0.53 %
Expected stock price volatility(3)
28.44 %26.85 %27.14 %
Expected annual dividends per share(4)
$0.76 $0.76 $0.76 
Expected forfeiture rate(5)
3.18 %3.01 %2.62 %
Weighted-average grant date fair value of options granted during the year$29.79 $21.33 $19.06 
(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. The rate is monitored on a periodic basis.

In 2023, the expense for stock options was $25 million (2022 – $23 million; 2021 – $23 million). At December 31, 2023, there was $9 million of total unrecognized compensation related to stock options, which is expected to be recognized over a weighted-average period of approximately 1.1 years.

The total fair value of shares vested for the stock option plan during 2023 was $18 million (2022 – $24 million; 2021 – $18 million).

The following table provides information related to all stock options exercised in the plan during the years ended December 31:

(in millions of Canadian dollars)202320222021
Total intrinsic value$101 $53 $43 
Cash received by the Company upon exercise of options69 32 25 

B. Share unit plans
Performance share unit plan
During 2023, the Company issued 891,411 PSUs with a grant date fair value of $96 million and 26,333 PDSUs with a grant date fair value, including the fair value of expected future matching units, of $3 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 three to four years after the grant date, contingent on the Company’s performance ("performance factor"). Vested PSUs are settled in cash. Vested PDSUs are converted into DSUs pursuant to the DSU plan, are eligible for a 25% company match if the employee has not exceeded their share ownership requirements, and are settled in cash only when the holder ceases their employment with the Company.

The performance period for 544,175 PSUs and all PDSUs granted in 2023 is January 1, 2023 to December 31, 2025, and the performance factors are Free Cash Flow ("FCF"), Total Shareholder Return ("TSR") compared to the S&P/TSX 60 Index, and TSR compared to the S&P 500 Industrials Index. The performance period for the other 347,236 PSUs granted in 2023 is April 28, 2023 to December 1, 2026 and the performance factors are annualized earnings before interest, tax, depreciation, and amortization ("EBITDA"), and TSR compared to Class I railways.

The performance period for all of the 415,660 PSUs and 13,506 PDSUs granted in 2022 is January 1, 2022 to December 31, 2024, and the performance factors are FCF, Adjusted net debt to Adjusted EBITDA Modifier, TSR compared to the S&P/TSX 60 Index, and TSR compared to the S&P 500 Industrials Index.

The performance period for all of the 431,430 PSUs and 12,694 PDSUs granted in 2021 was January 1, 2021 to December 31, 2023, and the performance factors were Return on Invested Capital ("ROIC"), TSR compared to the S&P/TSX 60 Index, and TSR compared to Class I railways. The estimated payout on these awards is 135% on 399,372 PSUs (including expected dividends reinvested) and 11,372 PDSUs (including expected dividends reinvested and matching units) outstanding, representing fair values of $54 million and $2 million, respectively, as at December 31, 2023, calculated based on the Company's average common share price of the last 30 trading days preceding December 31, 2023.

The performance period for all of the 489,990 PSUs and 50,145 PDSUs granted in 2020 was January 1, 2020 to December 31, 2022, and the performance factors were ROIC, TSR compared to the S&P/TSX 60 Index, and TSR compared to Class I railways. The resulting payout was 180% of the outstanding units multiplied by the Company's average common share price calculated based on the last 30 trading days preceding December 31, 2022. In the first quarter of 2023, payouts were $87 million on 459,358 PSUs, including dividends reinvested. The 45,058 PDSUs that vested on December 31, 2022, with a fair value of $11 million, including dividends reinvested and matching units, will be paid out in future reporting periods pursuant to the DSU plan (as described above).
The following table summarizes the activity related to PSUs and PDSUs during for each of the years ended December 31:

20232022
Outstanding, January 11,336,358 1,577,781 
Granted917,744 429,166 
Issued in lieu of dividends10,845 11,207 
Settled(460,667)(637,073)
PDSUs converted into DSUs(45,058)— 
Forfeited(80,669)(44,723)
Outstanding, December 311,678,553 1,336,358 

In 2023, the expense for PSUs and PDSUs was $78 million (2022 – $69 million; 2021 – $91 million). At December 31, 2023, there was $67 million of total unrecognized compensation related to these awards, which is expected to be recognized over a weighted-average period of approximately 1.9 years.

Deferred share unit plan
The Company established the DSU plan as a means to compensate and assist in attaining share ownership targets set for certain key employees and Directors. A DSU entitles the holder to receive, upon redemption, a cash payment equivalent to the Company's average common share price using the 10 trading days prior to redemption. DSUs vest over various periods of up to 36 months and are only redeemable for a specified period after employment is terminated.

Senior managers may elect to receive DSUs in lieu of annual bonus cash payments in the bonus deferral program. In addition, senior managers will be granted a 25% company match of DSUs when deferring cash to DSUs to meet ownership targets. The election to receive eligible payments in DSUs is no longer available to a participant when the value of the participant’s DSUs is sufficient to meet the Company’s stock ownership guidelines. Senior managers have five years to meet their ownership targets.

The expense for DSUs is recognized over the vesting period for both the initial subscription price and the change in value between reporting periods.

The following table summarizes the activity related to DSUs for each of the years ended December 31:

20232022
Outstanding, January 1744,530 841,333 
Granted85,750 60,262 
PDSUs converted into DSUs81,533 — 
Issued in lieu of dividends5,685 6,510 
Settled(15,935)(162,319)
Forfeited(1,745)(1,256)
Outstanding, December 31899,818 744,530 

During 2023, the Company granted 81,533 DSUs with a grant date fair value of approximately $9 million. In 2023, the expense for DSUs was $10 million (2022 – $10 million; 2021 – $6 million). At December 31, 2023, there was $1 million of total unrecognized compensation related to DSUs, which is expected to be recognized over a weighted-average period of approximately 1.9 years.
Summary of share unit liabilities paid
The following table summarizes the total share unit liabilities paid for each of the years ended December 31:

(in millions of Canadian dollars)202320222021
Plan
PSUs$86 $116 $119 
DSUs2 16 1 
Other1 5 6 
Total$89 $137 $126 

C. Employee share purchase plan
The Company has an employee share purchase plan whereby both employee and the Company contributions are used to purchase shares on the open market for employees. The Company’s contributions are expensed over the one year vesting period. Under the plan, the Company matches $1 for every $3 contributed by employees up to a maximum employee contribution of 6% of annual salary.
The total number of shares purchased in 2023 on behalf of participants, including the Company's contributions, was 600,730 (2022 – 566,902; 2021 – 538,022). In 2023, the Company’s contributions totalled $15 million (2022 – $11 million; 2021 – $11 million) and the related expense was $11 million (2022 – $9 million; 2021 – $8 million)
v3.24.0.1
Variable interest entities
 12 Months Ended
Dec. 31, 2023
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract]  
Variable interest entities Variable interest entities
The Company leases equipment from certain trusts, which are financed by a combination of debt and equity and are unrelated third parties. The lease agreements, which are classified as operating leases, have fixed price purchase options that create the Company’s variable interests and result in the trusts being considered variable interest entities ("VIE").

Maintaining and operating the leased assets according to specific contractual obligations outlined in the terms of the lease agreements and industry standards is the Company’s responsibility. The rigour of the contractual terms of the lease agreements and industry standards are such that the Company has limited discretion over the maintenance activities associated with these assets. Accordingly, the Company does not have the power to direct the activities that most significantly impact these entities economic performance.

The Company's financial exposure resulting from its involvement with these entities, is limited to its fixed lease payments. In 2023, lease payments related to the VIE were $8 million. Total future minimum lease payments to the end of the lease term in 2030 are $84 million. The fixed price purchase options for all leased assets expire in 2026. Although the leased assets must be returned in good operating condition, subject to normal wear and tear, the Company does not guarantee the residual value of the assets at the end of the lease.
Since the Company has neither the power to direct the activities of the VIE, or the obligation to absorb expected losses or residual returns, it does not consolidate the
v3.24.0.1
Commitments and contingencies
 12 Months Ended
Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]  
Commitments and contingencies Commitments and 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 December 31, 2023, 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, results of operations, or liquidity. However, an unexpected adverse resolution of one or more of these legal actions could have a material adverse effect on the Company's business, financial position, results of operations, or liquidity in a particular quarter or fiscal year.

Commitments
At December 31, 2023, the Company had committed to total future capital expenditures amounting to $2.3 billion, which includes investments in the Celaya-NBA Line Railway Bypass and other concession capital expenditures. Future operating expenditures relating to supplier purchase obligations, such as bulk fuel purchase agreements, locomotive maintenance and overhaul agreements, as well as agreements to purchase other goods and services amounting to approximately $544 million for the years 2024–2035.

Annual maturities and principal repayments of debt for the next five years and thereafter are provided in Note 17. Commitments related to leases, including minimum annual payments for the next five years and thereafter, are included in Note 20.
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 the Company and others:

(1)Québec's Minister of Sustainable Development, Environment, Wildlife and Parks ordered various parties, including the Company, to remediate the derailment site (the "Cleanup Order") and served the Company with a Notice of Claim for $95 million for those costs. The Company 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 the Company 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) the Company was responsible for the petroleum crude oil from its point of origin until its delivery to Irving Oil Ltd.; and (ii) the Company 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 the Company 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. On November 28, 2019, the plaintiffs' motion to discontinue their action against Harding was granted. The Class Action seeks unquantified damages, including for wrongful death, personal injury, property damage, and economic loss.

(4)Eight subrogated insurers sued the Company 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 the Company 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. The joint liability trial of these consolidated claims commenced on September 21, 2021, with oral arguments ending on June 15, 2022. The Québec Superior Court issued a decision on December 14, 2022 dismissing all claims as against the Company, finding that the Company’s actions were not the direct and immediate cause of the accident and the damages suffered by the plaintiffs. All three plaintiffs filed a declaration of appeal on January 13, 2023. A damages trial will follow after the disposition of all appeals, if necessary.

(5)Forty-eight plaintiffs (all individual claims joined in one action) sued the Company, 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 the Company, 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 the Company in November 2014 in the Maine Bankruptcy Court claiming that the Company failed to abide by certain regulations and seeking approximately U.S. $30 million in damages for MMAR’s loss in business value according to an expert report filed by the bankruptcy estate. This action asserts that the Company knew or ought to have known that the shipper misclassified the petroleum crude oil and therefore should have refused to transport it. Summary judgment motion was argued and taken under advisement on June 9, 2022, and decision is pending. On May 23, 2023, the case management judge stayed the proceedings pending the outcome of the appeal in the Canadian consolidated claims.

(7)The class and mass tort action commenced against the Company 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 the Company 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 the Company negligently misclassified and improperly packaged the petroleum crude oil. On the Company’s motion, the Maine Actions were dismissed. The plaintiffs appealed the dismissal decision to the U.S. First Circuit Court of Appeals, which dismissed the plaintiffs' appeal on June 2, 2021. The plaintiffs further petitioned the U.S. First Circuit Court of Appeals for a rehearing, which was denied on September 8, 2021. On January 24, 2022, the
plaintiffs further appealed to the U.S. Supreme Court on two bankruptcy procedural grounds. On May 31, 2022, the U.S. Supreme Court denied the petition, thereby rejecting the plaintiffs' appeal.

(8)The trustee for the wrongful death trust commenced Carmack Amendment claims against the Company in North Dakota Federal Court, seeking to recover approximately U.S. $6 million for damaged rail cars and lost crude oil 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). The Court issued an Order on August 6, 2020 granting and denying in parts the parties' summary judgment motions which has been reviewed and confirmed following motions by the parties for clarification and reconsideration. Final briefs of dispositive motions for summary judgment and for reconsideration on tariff applicability were submitted on September 30, 2022. On January 20, 2023, the Court granted in part the Company's summary judgment motion by dismissing all claims for recovery of settlement payments but leaving for trial the determination of the value of the lost crude oil. It also dismissed the Company's motion for reconsideration on tariff applicability. The remaining issues of the value of the lost crude oil and applicability of judgment reduction provisions do not require trial, and were fully briefed in 2024. On January 5, 2024, the Court issued its decision finding that the Company is liable for approximately U.S. $3.9 million plus pre-judgment interest, but declined to determine whether judgment reduction provisions were applicable, referring the parties to a court in Maine on that issue. On January 18, 2024, the Company filed a motion for reconsideration for the Court to apply the judgment reduction provisions. On January 19, 2024, the trustee for the wrongful death trust filed a Notice of Appeal for the January 5, 2024 decision, as well as prior decisions.

At this stage of the proceedings, any potential responsibility and the quantum of potential losses cannot be determined. Nevertheless, the Company denies liability and is vigorously defending these proceedings.

Court decision related to Remington Development Corporation legal claim
On October 20, 2022, the Court of King’s Bench of Alberta issued a decision in a claim brought by Remington Development Corporation (“Remington”) against the Company and the Province of Alberta (“Alberta”) with respect to an alleged breach of contract by the Company in relation to the sale of certain properties in Calgary. In its decision, the Court found the Company had breached its contract with Remington and Alberta had induced the contract breach. The Court found the Company and Alberta liable for damages of approximately $164 million plus interest and costs, and subject to an adjustment to the acquisition value of the property. In a further decision on August 30, 2023, the Court determined that adjustment and set the total damages at $165 million plus interest and costs. On October 20, 2023, the Court determined the costs payable to Remington, however, the Court has not provided any indication of how the damages, which are currently estimated to total approximately $217 million, should be apportioned between the Company and Alberta. As a result, at this time, the Company cannot reasonably estimate the amount of damages for which it is liable under the ruling of the Court. The Company has filed an appeal of the Court’s decision.

2014 tax assessment
In April 2022, the SAT delivered an audit assessment on CPKCM’s 2014 tax returns (the “2014 Assessment’). As of December 31, 2023, the assessment was Ps.6,068 million ($475 million), which included inflation, interest, and penalties. In July 2022, CPKCM filed an administrative appeal with the SAT to revoke the 2014 Assessment and challenge that the SAT’s delivery of the assessment by electronic tax mailbox was in violation of an enforceable court injunction previously granted to CPKCM. In September 2022, the SAT dismissed CPKC’s administrative appeal on grounds that it was not submitted timely. In November 2022, CPKCM filed a lawsuit in Administrative Court challenging the legality of the SAT's delivery of the assessment by electronic mailbox and also the SAT’s dismissal of CPKCM’s administrative appeal. The Administrative Court is expected to render a decision on the legality of the 2014 Assessment in 2024. CPKCM expects to prevail based on the technical merits of its case.

2023 business interruption insurance settlement
During the third quarter of 2023, the Company realized gain contingencies of $51 million recognized to "Purchased services and other", as a result of settlements reached with insurers for business interruption losses incurred by the Company related to a wildfire and flooding in B.C. in 2021.
v3.24.0.1
Guarantees
 12 Months Ended
Dec. 31, 2023
Guarantees [Abstract]  
Guarantees Guarantees
In the normal course of operating the railway, the Company enters into contractual arrangements that involve providing certain guarantees, which extend over the term of the contracts. These guarantees include, but are not limited to:
•guarantees to pay other parties in the event of the occurrence of specified events, including damage to equipment, in relation to assets used in the operation of the railway through operating leases, rental agreements, easements, trackage, and interline agreements;
•guarantees to pay other parties in the event of a specified change in control of the Company or particular subsidiaries of the Company;
•guarantees to repay amounts outstanding for certain debt obligations;
•a guarantee to repay a portion of amounts outstanding for certain debt obligations held by an equity investee; and
•indemnifications of certain tax-related payments incurred by lessors and lenders.

The maximum amount that could be payable under these guarantees, excluding residual value guarantees, cannot be reasonably estimated due to the nature of certain guarantees. All or a portion of amounts paid under guarantees to other parties in the event of the occurrence of specified events could
be recoverable from other parties or through insurance. The Company has accrued for all guarantees that it expects to pay. As at December 31, 2023, accruals of $8 million (2022 – $5 million), were recorded in “Accounts payable and accrued liabilities".

Indemnification
Pursuant to a trust and custodial services agreement with the trustee of the Canadian Pacific Railway Company Pension Plan, the Company has undertaken to indemnify and save harmless the trustee, to the extent not paid by the fund, from any and all taxes, claims, liabilities, damages, costs, and expenses arising out of the performance of the trustee’s obligations under the agreement, except as a result of misconduct by the trustee. The indemnity includes liabilities, costs, or expenses relating to any legal reporting or notification obligations of the trustee with respect to the defined benefit and defined contribution options of the pension plans, or otherwise with respect to the assets of the pension plans that are not part of the fund. The indemnity survives the termination or expiry of the agreement with respect to claims and liabilities arising prior to the termination or expiry. As at December 31, 2023, the Company had not recorded a liability associated with this indemnification as it does not expect to make any payments pertaining to it.
v3.24.0.1
Segmented and geographic information
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Segmented and geographic information Segmented and geographic information
Operating segment
The Company only has one operating segment: rail transportation. Operating results by geographic areas, railway corridors, or other lower-level components or units of operation are not reviewed by the Company’s chief operating decision-maker to make decisions about the allocation of resources to, or the assessment of performance of, such geographic areas, corridors, components, or units of operation.

In the years ended December 31, 2023, 2022, and 2021, no one customer comprised more than 10% of total revenues.

Geographic information
All of the Company's revenues and long-lived assets disclosed in the table below are held within Canada, the U.S., and Mexico.

For the years ended and as at December 31 (in millions of Canadian dollars)CanadaU.S.Mexico Total
2023
Revenues$6,651 $4,257 $1,647 $12,555 
Long-lived assets: Properties and right of use assets15,933 25,141 11,017 52,091 
2022
Revenues6,423 2,391 — 8,814 
Long-lived assets: Properties and right of use assets(1)
15,208 7,444 — 22,652 
2021
Revenues5,992 2,003 — 7,995 
(1) 2022 comparative figure has been revised to conform with current year's presentation.
v3.24.0.1
Subsequent events
 12 Months Ended
Dec. 31, 2023
Subsequent Events [Abstract]  
Subsequent events Subsequent events
KCS
[If STB approval is received before 10-K filing: On [approval date], the STB approved CP’s control application for KCS, with an effective date of [effective date], [subject to certain conditions]. On or after the effective date and the Company’s determination that none of the conditions imposed by the STB would cause the Company to decline to exercise control, the voting trust will be terminated and CP (through an indirect wholly owned subsidiary) will acquire control of the shares and take control of KCS (the date on which such control occurs, the "Control Date"), subject to conditions imposed in the STB’s approval decision. [The Company may also (or alternatively) determine to seek review of the conditions imposed by the STB (e.g., via a petition for reconsideration to the STB or petition for review filed with a U.S. Court of Appeals).] Until the Control Date, the Company continues to record its investment in KCS using the equity method of accounting (see Note 10 and Note 11).

Upon acquiring control of KCS, the voting Trust will cease. This change in control will be accounted for as a business combination achieved in stages, using the acquisition method of accounting, with the date of control reflecting the business combination acquisition date. Accordingly, the identifiable assets acquired and the liabilities assumed will be measured and recorded as of this acquisition date.

The fair values of the previously held equity interest in KCS, and the identifiable assets acquired and the liabilities and non-controlling interest assumed will be determined using valuation techniques, including but not limited to, market approach, cost approach, multi-period excess earnings method, replacement cost method, and net asset value approach.]
v3.24.0.1
Schedule II – Valuation and Qualifying Accounts
 12 Months Ended
Dec. 31, 2023
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]  
Schedule II – Valuation and Qualifying Accounts
Schedule II – Valuation and Qualifying Accounts

(in millions of Canadian dollars)Beginning balance at January 1Impact of KCS AcquisitionAdditions charged to expensesPayments and other reductionsImpact of FXEnding
balance at December 31
Accruals for personal injury and other claims provision(1)
2021$126 $— $114 $(117)$— $123 
2022$123 $— $101 $(94)$2 $132 
2023$132 $68 $190 $(202)$(1)$187 
Provision for environmental remediation
2021$80 $— $10 $(10)$(1)$79 
2022$79 $— $8 $(8)$4 $83 
2023$83 $147 $8 $(15)$(3)$220 
(1) Includes WCB, FELA, occupational, damage, and other.
v3.24.0.1
Summary of significant accounting policies (Policies)
 12 Months Ended
Dec. 31, 2023
Accounting Policies [Abstract]  
Basis of presentation
Basis of presentation
These Consolidated Financial Statements are prepared in accordance with accounting principles generally accepted in the U.S. ("GAAP"). Amounts are expressed in Canadian dollars, unless otherwise noted. Certain comparative figures in these Consolidated Financial Statements have been reclassified to conform to the current year's presentation.
Use of estimates and judgements
Use of estimates and judgements
The preparation of financial statements in conformity with GAAP requires management to exercise its judgement in applying the Company's accounting policies. It also requires the use of accounting estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the Consolidated Financial Statements, disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements, and reported amounts of revenues and expenses during the reporting periods. Although these estimates are based on management's best knowledge of current events and actions, actual results may ultimately differ from those estimates.

Critical estimates and judgements made by management relate to:
•Deferred income taxes (Note 6);
•Business acquisitions (Note 11);
•Properties (Note 13);
•Goodwill (Note 14);
•Intangible assets (Note 15);
•Provision for environmental remediation (Note 19);
•Pension and other benefits (Note 23); and
•Legal claims (Note 26).
Principles of consolidation
Principles of consolidation
The financial statements of subsidiaries are included in these Consolidated Financial Statements from the date control commences until the date control ceases. Intercompany accounts and transactions are eliminated. Third party ownership interests in the Company's subsidiaries are presented in the Consolidated Financial Statements as activities and amounts attributable to non-controlling interests.
Revenues
Revenues
Revenue is recognized when promised services are delivered and obligations under the terms of a contract with a customer are satisfied. Revenue is measured as the amount of consideration the Company expects to receive in exchange for providing services. In the normal course of business, the
Company does not generate material revenues through acting as an agent for other entities. Revenues are presented net of taxes collected from customers and remitted to governmental authorities.

The Company invoices customers when a bill of lading or service request is processed. Payment for services are due when performance obligations are satisfied. Amounts outstanding at the end of each reporting period are generally collected in the following reporting period. Performance obligations not fully satisfied at the end of a reporting period are also expected to be satisfied in the following reporting period.

Freight revenues
The Company provides freight transportation services to a wide variety of customers, transporting bulk commodities, merchandise freight and intermodal traffic.

The Company enters into master service agreements with customers which establish pricing, terms and conditions for future freight services the Company will provide when service requests or bills of lading are received from those customers. Each bill of lading or service request is a distinct performance obligation that the Company must satisfy. The transaction price is generally a fixed fee determined when the bill of lading or service request is initiated. The transaction price is allocated to distinct performance obligations based on estimated standalone selling prices. Since every bill of lading or service request is a distinct performance obligation, estimated standalone selling prices are determined based on observable fair market values. The Company also provides services to customers at published rates established in public tariff agreements. In those arrangements a performance obligation is triggered when the customer orders a service that the Company must satisfy.

Railway freight revenue is recognized over time as transportation services are provided and obligations under the terms of a contract with the customer are satisfied. Inputs are used to measure percentage of completion towards satisfaction of performance obligations. Progress is measured based on elapsed freight transit time relative to the total expected freight transit time from origination to destination. The short duration of freight delivery performance obligations results in generally immaterial services in progress at any given period end.

Certain customer agreements include variable consideration in the form of rebates, discounts, or incentives. The expected value method is used to estimate the amount of variable consideration to allocate to performance obligations as they are satisfied. Volume rebates are accrued based on estimated volumes and contract terms, and recognized as a reduction of freight revenues as the related freight services are provided. Contracted customer incentives are amortized to income over the term of the related service contract.

Non-freight revenues
Non-freight revenues, including revenues from passenger service operators, switching fees, and logistics services, are recognized either at the point in time the services are provided or over time as the performance obligations are satisfied. Non-freight revenues also include revenues from leasing land and other property.
Income taxes
Income taxes
The Company follows the asset and liability method of accounting for income taxes. Under this method, a deferred income tax asset or liability is determined based on the difference between the financial reporting and tax basis of the asset or liability, using enacted tax rates and laws that will be in effect when the difference is expected to reverse. The change in the net deferred income tax asset or liability is included in the computation of "Net income" and "Other comprehensive (loss) income". The effect of a change in income tax rates on deferred income tax assets and liabilities is recognized in income in the period that the change occurs.

The Company records a valuation allowance to reduce deferred income tax assets if it is more likely than not, based on available evidence about future events, that some or all of the deferred income tax assets will not be realized.

The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by taxing authorities based on the technical merits of the position. The tax benefit recognized is measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. A liability for “unrecognized tax benefits” is recorded for any tax benefits claimed in the Company’s tax returns that do not have a greater than 50% likelihood of being realized upon ultimate settlement.
Investment and other similar tax credits are recorded as "Deferred income taxes" on the Company's Consolidated Balance Sheets and recognized as "Deferred income tax (recovery) expense" in the Consolidated Statements of Income as the related asset is recognized in income.
Earnings per share
Earnings per share
Basic earnings per share is calculated using the weighted-average number of the Company's Common Shares outstanding during the year. Diluted earnings per share is calculated using the treasury stock method for determining the dilutive effect of Common Shares issuable upon exercise of outstanding stock options.
Equity method investments
Equity method investments
The Company’s investments in entities over which it can exercise significant influence or has joint control are accounted for using the equity method. Equity-method investments are initially recognized at cost. Subsequently, and until the date significant control ceases, its carrying amount is presented in the Consolidated Balance Sheets, with adjustments to reflect:
•the Company's share of income or losses and comprehensive income or losses, based on the Company's share of common stock and in-substance common stock;
•depreciation, amortization or accretion related to any any basis differences that were identified as part of the initial accounting for the investment;
•dividends received;
•other-than-temporary impairments, if any; and
•the effects of any intra-entity profit and losses and capital transactions.

Distributions received from equity-method investments are classified in the Consolidated Statements of Cash Flows according to the nature of the activities generating distributions.

If the Company acquires control of a business that it was previously able to exercise significant influence over, it stops accounting for the investment using the equity method. The investment is remeasured to fair value as of the date control was obtained, with any gain or loss from the remeasurement recognized in the Company's Consolidated Statements of Income. Any amounts in "Accumulated other comprehensive (loss) income" ("AOCI") in the Consolidated Balance Sheets related to the investment are reclassified and included in the calculation of the gain or loss. Any pre-existing relationship between the Company and the investment is settled with a corresponding gain or loss recorded in the Company's Consolidated Statements of Income, separately from the business acquisition.
Business acquisitions
Business acquisitions
Management makes estimates and assumptions to determine the fair values of assets acquired and liabilities and non-controlling interest assumed in a business combination at the acquisition date. Such estimates and assumptions are inherently uncertain and subject to refinement. During the measurement period the Company may adjust any provisional amounts reported on the acquisition date if additional information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected their measurement on that date. Adjustments to provisional amounts are recognized with corresponding adjustments to goodwill.

If the acquisition-date fair value of an asset or liability arising from pre-acquisition contingencies cannot be determined as of the acquisition date or during the measurement period, the estimated amount of the asset or liability is recognized if it is probable that an asset existed or a liability had been incurred at the acquisition date based on information available prior to the end of the measurement period and the amount of the asset or liability can be reasonably estimated.

The measurement period ends as soon as all necessary information about the facts and circumstances that existed as of the acquisition date for provisional amounts has been obtained, not to exceed one year. Changes that do not qualify as measurement period adjustments or that occur after the measurement period are recognized in the Consolidated Statements of Income.
Foreign currency translation
Foreign currency translation
Foreign currency transactions
Foreign currency transactions are denominated in currencies other than CPKC's functional currency, which is the Canadian dollar. Transactions denominated in foreign currencies are translated to the functional currency using the exchange rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are remeasured to the functional currency using the exchange rate in effect at the balance sheet date. Foreign exchange gains and losses resulting from the translation of monetary assets and liabilities are included in income in the period they arise.

Foreign operations
Foreign exchange gains and losses arising from the translation of the Company's foreign subsidiaries’ and equity-method investees' functional currencies to CPKC's Canadian dollar presentation are included in “Other comprehensive (loss) income” and recognized in income upon the sale of the foreign operation. Asset and liability accounts are translated at the exchange rates in effect as at the balance sheet date, and revenues and expenses are translated using monthly average exchange rates.

U.S. dollar-denominated debt, finance lease obligations and operating lease liabilities are designated as hedges of the Company's net investment in foreign subsidiaries and foreign equity-method investees. Accordingly, unrealized gains and losses arising from the translation of the designated U.S. dollar-denominated debt, finance lease obligations and operating lease liabilities are offset against gains and losses arising from the translation of the Company's foreign operations' accounts in “Other comprehensive (loss) income”.
Cash and cash equivalents
Cash and cash equivalents
Cash and cash equivalents include highly liquid investments with original maturities of less than three months.
Accounts receivable, net
Accounts receivable, net
Accounts receivable are recorded at cost net of an allowance for expected credit losses. The allowance for expected credit losses is estimated based on relevant information about historical credit loss experience of receivables with similar risk characteristics, current conditions, and forecasts of future conditions expected to affect collectability.
Accounts receivable are written off against the allowance for credit losses when it is probable that the remaining contractual payments will not be collected. Subsequent recoveries of amounts previously written off are credited to income in the period recovered
Materials and supplies
Materials and supplies
Materials and supplies, including fuel and parts used in the repair and maintenance of track structures, equipment, locomotives, and freight cars, are measured at the lower of average cost or net realizable value.
Properties
Properties
Properties are reported at historical cost, less accumulated depreciation or amortization and any impairment. The Company reviews properties for impairment when changes in circumstances indicate that its carrying amount may not be recoverable. If the estimated future undiscounted cash flows are less than the property's carrying amount, its carrying amount is reduced to the estimated fair value, measured using discounted cash flows, and a corresponding impairment loss is recognized in income.

Additions to properties
For property additions and betterments the Company capitalizes all costs necessary to make the assets ready for their intended use.

A large amount of the Company's capital expenditures are for self-constructed properties, both new and the replacement of existing properties. Self-constructed assets are initially recorded at cost, including direct costs, attributable indirect costs, overheads, and carrying costs.
•direct costs include labour, purchased services, materials and equipment, project supervision costs, and fringe benefits.
•attributable indirect costs and overheads include incremental long-term variable costs resulting from the execution of capital projects.
•indirect costs mainly include costs associated with work trains, material distribution, highway vehicles, and work equipment.
•overheads primarily relate to engineering department costs of planning, designing, and administering the capital projects, which are allocated to projects using a measure consistent with the nature of the cost, based on cost studies.

The Company capitalizes costs incurred for replacements or betterments that enhance the service potential or extend the useful life of the properties, when the expenditures exceed minimum physical and financial thresholds. Costs to repair or maintain the service potential of properties are expensed.
•the cost of ballast programs, including undercutting, shoulder ballasting, and renewal programs that form part of the annual track program are capitalized because the work and related added ballast material significantly improves drainage, which in turn extends the life of ties and other track materials. The cost of ballast programs are tracked separately from the underlying assets and depreciated over the estimated period to the next similar ballast program. Spot replacement of ballast is considered a repair, which is expensed as incurred.
•significant freight car refurbishments, locomotive overhauls and other capital improvements that enhance service potential or extend useful life are capitalized.
•replacement project costs are allocated to dismantling, which is expensed, and installation, which is capitalized, based on cost studies.

The Company also capitalizes development costs for major new computer systems.

Asset retirement obligations
When there is a reliably measurable legal obligation associated with the retirement of property, a liability is initially recognized at its fair value and a corresponding asset retirement cost is added to the carrying amount of property and depreciated over the estimated useful life of the property.

Group depreciation
The Company primarily uses the group method of depreciation, in which properties with similar characteristics, use and expected lives are allocated to asset groups:
•the asset groups are depreciated on a straight-line basis reflecting their expected economic lives, using composite depreciation rates. All track assets are depreciated using a straight-line method which recognizes the value of the asset consumed as a percentage of the whole life of the asset.
•composite depreciation rates are established through depreciation studies, which are regular, detailed reviews, performed by asset group, of service lives, salvage values, accumulated depreciation, and other related matters.
•the depreciation studies also estimate accumulated depreciation surpluses or deficiencies for each asset group, which are amortized over the remaining life of the respective asset group.
•when depreciable property is retired or otherwise disposed in the normal course of business, its life generally approximates its expected useful life as determined in the depreciation studies. For this reason, under group depreciation, a gain or loss on disposal is not recognized. Instead, the asset's net book value, less net salvage proceeds, is charged to accumulated depreciation.
•for certain asset groups, the historical cost of the asset is separately recorded in the Company's property records. This amount is retired from the property records upon retirement of the asset. For assets for which the historical cost cannot be separately identified, the asset's gross book value is estimated using an indexation methodology, whereby the retired property's current replacement cost is indexed to its estimated year of installation, or a first-in, first-out approach, or statistical analysis is used to determine its retired age. The Company uses indices that closely correlate to the principal costs of the assets.
•when removal costs exceed the property's salvage value and removal is not a legal obligation, the removal costs are charged to income when the property is removed.
•for disposals of larger groups of depreciable assets that were not factored into the Company’s depreciation studies, the Company records a gain or loss for the difference between the net proceeds and the net book value of the assets sold or retired. The accumulated depreciation that is derecognized includes asset-specific accumulated depreciation, when known, or an appropriate portion of the accumulated depreciation recorded for the relevant asset class as a whole, calculated using a cost-based allocation.

Concession assets
CPKC holds a concession from the Mexican government which authorizes the Company to provide freight transportation services over certain rail lines, including the use all related track and other assets necessary for the rail lines' operation (the "Concession"). The Concession term ends in June 2047, but is renewable under certain conditions, for additional periods, each up to 50 years.

The underlying tangible assets that the Concession provides the Company with the right to use are capitalized in "Properties", and amortized using the group method. Amortization is recognized over the lesser of the expected concession term, including one renewal period of 50 years, or the estimated useful life of the underlying asset groups. The intangible rights granted under the Concession are amortized over the expected term of the Concession.

Finance lease right-of-use ("ROU") assets
Finance lease ROU assets included in "Properties" are amortized to the earlier of the end of the useful life of the ROU asset or the end of the lease term.

Government assistance
The Company records government assistance from various levels of governments and government agencies when there is reasonable assurance that the assistance will be received.

Government assistance in connection with the acquisition or construction of properties sometimes includes conditions which, if not met within a certain period of time, may require repayment of some or all of the assistance received. It is the Company's intention to comply with all conditions imposed by the terms of government assistance accepted. Government assistance received or receivable related to property is recorded as a reduction of the cost of the property and amortized over the same period as the related assets.
Goodwill & Intangible assets
Goodwill
Goodwill represents the excess of the purchase price over the fair value of identifiable net assets upon acquisition of a business. On the acquisition date goodwill is allocated to the reporting unit expected to benefit from the acquisition. The carrying value of goodwill, which is not amortized, is assessed for impairment annually, or more frequently if events or changes in circumstances arise that suggest goodwill may be impaired. The Company's annual review of goodwill is performed in the fourth quarter, on the October 1 balance.

The Company first assesses qualitative factors, including, but not limited to economic, market, and industry conditions, the reporting unit's overall financial performance and events such as notable changes in management or customers. If the qualitative assessment indicates that it is more likely than not that the fair value of the reporting unit is less than its carrying value, a quantitative assessment is undertaken. The quantitative assessment is a comparison of the reporting unit's carrying value and fair value. The reporting unit's fair value is defined as the price expected to be received if it was sold in an orderly transaction between market participants. It is determined based on pre-tax discounted cash flows that reflect management's best estimates of the time value of money and risks specific to the reporting unit and its assets. If the carrying value of the reporting unit, including goodwill, exceeds its fair value, an impairment is recognized, measured at the amount by which the reporting unit's carrying value exceeds its fair value.

Intangible assets
Intangible assets with finite lives, consisting primarily of customer contracts, customer relationships and favourable leases are amortized on a straight-line basis over their estimated useful lives of up to 22 years. When there is a change in the estimated useful life of an intangible asset with a finite life, amortization is adjusted prospectively. An intangible asset with a finite life is assessed for impairment whenever events or circumstances indicate that its carrying amount may not be recoverable.
Intangible assets with indefinite useful lives are primarily trackage rights that are expected to generate cash flows indefinitely. They are not amortized but are tested for impairment annually, or more frequently if events or changes in circumstances indicate they may be impaired.

When assessing an intangible asset for impairment, if the undiscounted cash flows indicate that its carrying amount may not be recoverable, an impairment loss will be recognized for the amount that its carrying amount exceeds its fair value, determined based on pre-tax discounted cash flows that reflect management's best estimates of the time value of money and risks specific to the asset.
Assets held for sale
Assets held for sale
Assets that meet the held-for-sale criteria are reported in "Other assets" at the lower of their carrying amount and fair value, less costs to sell, and are not depreciated.
Financial instruments
Financial instruments
Financial instruments are contracts that give rise to a financial asset of one party and a financial liability or equity instrument of another party. Financial instruments are recognized initially at fair value, which is the amount of consideration that would be agreed upon in an arm’s-length transaction between willing parties.

Cash and cash equivalents are classified as amortized cost, which approximates fair value. Accounts receivable and investments consisting of loans and receivables are subsequently measured at amortized cost, using the effective interest method. Accounts payable and accrued liabilities, other long-term liabilities, and long-term debt are also subsequently measured at amortized cost.
Derivative financial instruments
Derivative financial instruments
Derivative financial instruments may are used from time to time to manage the Company's exposure to changes in foreign exchange rates, interest rates, fuel price and certain compensation tied to our common share price. When derivative instruments are used in hedging relationships, the Company identifies, designates, and documents those hedging transactions and regularly tests the transactions to demonstrate effectiveness in order to continue hedge accounting.

The Company's derivative instruments are classified as held-for-trading and recorded at fair value in the Consolidated Balance Sheets as current or non-current assets or liabilities depending on the timing of settlements and the resulting cash flows associated with the instrument. Any changes in the fair value of derivatives that are not designated as hedges are recognized in income in the period the change occurs.

For fair value hedges, changes in the fair value of the hedging instrument are recognized in income along with changes in the fair value of the hedged risk of the asset or liability that is designated as part of the hedging relationship.

For designated cash flow hedges, changes in the fair value of the hedging instrument are recorded in “Other comprehensive (loss) income” and reclassified to income when the hedged item impacts income. If a derivative instrument designated as a cash flow hedge ceases to be effective or is terminated, hedge accounting is discontinued and the gain or loss at that date is deferred in "Other comprehensive (loss) income" and recognized in income concurrently with the related transaction. If an anticipated hedged transaction is no longer probable, the gain or loss is recognized immediately in income. Subsequent gains and losses from derivative instruments for which hedge accounting has been discontinued are recognized in income in the period in which they occur.

Cash flows relating to derivative instruments designated as hedges are included in the same category as the related hedged items in the Consolidated Statements of Cash Flows.
Leases
Leases
The Company leases rolling stock, buildings, vehicles, railway equipment, roadway machines, and information systems hardware. Lease liabilities and ROU assets are recognized in the Consolidated Balance Sheets for finance leases and operating leases with fixed terms and in-substance fixed terms.
•ROU assets and lease liabilities are recognized on the lease commencement date at the present value of the future lease payments over the lease term. Lease payments include fixed and variable payments that are based on an index or a rate. If the rate implicit in the lease is not readily determinable, the Company uses internal incremental secured borrowing rates for a comparable tenor and in the same currency at the lease commencement date to determine the present value of lease payments.
•certain leases of rolling stock and roadway machines are fully variable or contain both fixed and variable components. Variable components are dependent on the hours and miles that the underlying equipment has been used. Fixed-term, short-term and variable operating lease costs are recorded in "Equipment rents" and "Purchased services and other" in the Company's Consolidated Statements of Income.
•components of finance lease costs are recorded in "Depreciation and amortization" and "Net interest expense" in the Company's Consolidated Statements of Income.
•ROU assets are adjusted for lease prepayments, initial direct costs and lease incentives.
•lease terms include periods associated with options to extend or exclude periods associated with termination options when the Company is reasonably certain of exercising such options.
•non-lease components are accounted for separately from lease components of roadway machine, information systems hardware, and fleet vehicle lease contracts. Otherwise, lease and non-lease components are combined and accounted as a single lease component.

Leases with terms of 12 months or less that do not contain an option to purchase the underlying asset at the end of the lease term that the Company intends to exercise are not recorded on the Consolidated Balance Sheets; lease payments are recognized as expenses in the Consolidated Statements of Income on a straight-line basis over the lease term.
Leases
Leases
The Company leases rolling stock, buildings, vehicles, railway equipment, roadway machines, and information systems hardware. Lease liabilities and ROU assets are recognized in the Consolidated Balance Sheets for finance leases and operating leases with fixed terms and in-substance fixed terms.
•ROU assets and lease liabilities are recognized on the lease commencement date at the present value of the future lease payments over the lease term. Lease payments include fixed and variable payments that are based on an index or a rate. If the rate implicit in the lease is not readily determinable, the Company uses internal incremental secured borrowing rates for a comparable tenor and in the same currency at the lease commencement date to determine the present value of lease payments.
•certain leases of rolling stock and roadway machines are fully variable or contain both fixed and variable components. Variable components are dependent on the hours and miles that the underlying equipment has been used. Fixed-term, short-term and variable operating lease costs are recorded in "Equipment rents" and "Purchased services and other" in the Company's Consolidated Statements of Income.
•components of finance lease costs are recorded in "Depreciation and amortization" and "Net interest expense" in the Company's Consolidated Statements of Income.
•ROU assets are adjusted for lease prepayments, initial direct costs and lease incentives.
•lease terms include periods associated with options to extend or exclude periods associated with termination options when the Company is reasonably certain of exercising such options.
•non-lease components are accounted for separately from lease components of roadway machine, information systems hardware, and fleet vehicle lease contracts. Otherwise, lease and non-lease components are combined and accounted as a single lease component.

Leases with terms of 12 months or less that do not contain an option to purchase the underlying asset at the end of the lease term that the Company intends to exercise are not recorded on the Consolidated Balance Sheets; lease payments are recognized as expenses in the Consolidated Statements of Income on a straight-line basis over the lease term.
Provision for environmental remediation
Provision for environmental remediation
Environmental remediation accruals, covering site-specific remediation programs, are recorded on an undiscounted basis unless a reliably determinable estimate of the amount and timing of costs can be established. The accruals are recorded when the costs to remediate are probable and can be reasonably estimated. Certain future costs to monitor sites are discounted at an adjusted risk-free rate. 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”.
Pensions and other benefits
Pensions and other benefits
Obligations and net periodic benefit costs for the Company's defined benefit pension plans are actuarially determined using the projected benefit method, pro-rated over the credited service periods of employees. This method incorporates management’s best estimates of actuarial assumptions, such as discount rates, salary and other cost escalations, employees' retirement ages and mortality. The discount rates are based on blended market interest rates on high-quality debt instruments with matching cash flows.

Plan assets are measured at fair value. The expected return on plan assets is calculated using market-related asset values, developed from a five-year average of adjusted market values for the fund’s public equity securities and absolute return strategies, plus the market value of the fund’s other asset classes, subject to the market-related asset value not being greater than 120% nor less than 80% of the market value.

Actuarial gains and losses arise from the difference between the actual and expected return on plan assets, and changes in the measurement of the benefit obligation. Periodic net actuarial gains and losses and prior service costs are accumulated and presented as a component of AOCI in the Consolidated Balance Sheets.

Obligations and net periodic benefit costs for the Company's other post-retirement and post-employment benefits are actuarially determined on a similar basis.

The status of over and under funded defined benefit pension and benefit plans, measured as the difference between the fair value of a plan's assets and benefit obligation, are reported in the Company's Consolidated Balance Sheets.

Components of net periodic benefit cost included in Operating income in the Consolidated Statements of Income include:
•current service costs for defined benefit pension and post-retirement benefits, and the Company's contributions to defined contribution pension plans are recorded in"Compensation and benefits"; and
•current service costs for self-insured workers' compensation and long-term disability benefits, which are recorded in"Purchased services and other".

Other components of net periodic benefit cost or recovery, recognized outside of Operating income in the Consolidated Statements of Income are:
•interest cost on benefit obligation;
•expected return on plan assets;
•amortization of net actuarial gains and losses in excess of 10% of the greater of the projected benefit obligation and the market-related value of plan assets, over the expected average remaining service period of the plan's active employee group (approximately 13 years);
•amortization of prior service costs arising from collectively bargained amendments to pension plan benefit provisions (over the term of the applicable union agreement) and from all other sources (over the expected average remaining service period of active employees who are expected to receive benefits under the plan at the date of the amendment); and
•gains and losses on post-employment benefits that do not vest or accumulate, including some workers’ compensation and long-term disability benefits in Canada.
Stock-based compensation
Stock-based compensation
Stock options
The cost of awards of equity-settled employee stock options is measured based on the options' fair value on their grant date. The cost is recognized as "Compensation and benefits expense", with a corresponding increase to "Additional paid-in capital" ("APIC") in "Shareholders' equity" over the shorter of (i) the vesting period; or (ii) the period from the grant date to the date the employee becomes eligible to retire. The grant date fair value is determined
using the Black-Scholes option-pricing model. Forfeitures are estimated at the grant date, and changes in the estimate of forfeitures in subsequent periods are recognized as adjustments to"Compensation and benefits expense" in the period that the change in estimate occurs. As stock options are exercised, the related amount accumulated in "APIC" is reclassified to "Share Capital" and the proceeds are recognized in "Share Capital".

Share units
The Company also issues cash-settled awards, including deferred share units ("DSUs"), performance share units (“PSUs”) and performance deferred share units ("PDSUs"), for which a liability is remeasured each financial reporting period until settlement.

"Compensation and benefits expense" is recognized, using the fair value method, over the shorter of the vesting term, or the period from the grant date to the date the employee is eligible to retire, based on the number of units outstanding and the closing price of CPKC's Common Shares on the measurement date. In the case of PSUs and PDSUs, the fair value of units that are probable of vesting, based on forecasted performance factors is recognized as "Compensation and benefits expense". Forfeitures of share units are estimated at the grant date, and changes in the estimate of forfeitures in subsequent periods are recognized as adjustments to "Compensation and benefits expense" in the period that the change in estimate occurs.

Share purchase plan
The employee share purchase plan gives rise to compensation expense that is recognized using the issue price by amortizing the cost over the vesting period.
Adoption of new standards & New pronouncements
Adoption of new standards
Accounting for contract assets and contract liabilities from contracts with customers
Effective January 1, 2023, the Company adopted Accounting Standards Update (“ASU”) 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers on a prospective basis. Under this ASU contract assets and contract liabilities acquired in a business combination are measured in accordance with Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers instead of at fair value. The Company's application of this ASU for the measurement of contract assets and contract liabilities acquired in the KCS acquisition (Note 11) did not have a material impact on the Company's financial position and results of operations.

All other accounting pronouncements that became effective during the period covered by the Consolidated Financial Statements did not have a material impact on the Company's Consolidated Financial Statements and related disclosures.

New pronouncements
Recently issued accounting pronouncements are not expected to have a material impact on the Company's financial position or results of operations.
v3.24.0.1
Revenues (Tables)
 12 Months Ended
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
The following table presents disaggregated information about the Company’s revenues from contracts with customers by major source:
For the year ended December 31 (in millions of Canadian dollars)2023 20222021 
Grain$2,496 $1,776 $1,684 
Coal859 577 625 
Potash566 581 463 
Fertilizers and sulphur385 332 305 
Forest products696 403 348 
Energy, chemicals and plastics2,301 1,394 1,563 
Metals, minerals and consumer products1,579 884 728 
Automotive934 438 376 
Intermodal2,465 2,242 1,724 
Total freight revenues12,281 8,627 7,816 
Non-freight excluding leasing revenues161 103 100 
Revenues from contracts with customers12,442 8,730 7,916 
Leasing revenues113 84 79 
Total revenues$12,555 $8,814 $7,995 
Changes in Contract Liabilities
The following table summarizes the changes in contract liabilities for the years ended December 31, 2023 and 2022:

(in millions of Canadian dollars)20232022
Opening balance, January 1$64 $67 
Contract liabilities assumed upon the acquisition of KCS (Note 11)7 — 
Revenue recognized in the period that was included in the opening balance or liabilities assumed(36)(21)
Increase due to consideration received, net of revenue recognized in the period17 18 
Closing balance, December 31$52 $64 
v3.24.0.1
Other expense (Tables)
 12 Months Ended
Dec. 31, 2023
Other Income and Expenses [Abstract]  
Other expense
For the year ended December 31 (in millions of Canadian dollars)202320222021
Foreign exchange gain on debt and lease liabilities$— $— $(7)
Foreign exchange loss on FX forward contracts (Note 18)
39 — — 
Other foreign exchange gains(12)— (4)
Acquisition-related costs (Note 11)
6 — 247 
Other19 17 1 
Other expense$52 $17 $237 
v3.24.0.1
Income taxes (Tables)
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Summary of the Major Components of the Company's Income Tax Expense
The following is a summary of the major components of the Company’s income tax (recovery) expense:
For the year ended December 31 (in millions of Canadian dollars)202320222021
Current income tax expense$909 $492 $526 
Deferred income tax (recovery) expense
Reversal of outside basis deferred tax (Note 11)(7,832)— — 
Origination and reversal of temporary differences53 101 259 
Effect of tax rate decrease(72)(25)(11)
   Effect of hedge of net investment in foreign subsidiaries and equity-method investees (Note 8)
(22)59 (3)
Other(12)1 (3)
Total deferred income tax (recovery) expense (7,885)136 242 
Total income tax (recovery) expense$(6,976)$628 $768 
(Loss) income before income tax (recovery) expense
Canada2,359 2,236 2,899 
Foreign(5,412)1,909 721 
Total (loss) income before income tax (recovery) expense (3,053)4,145 3,620 
Income tax (recovery) expense
Current
Canada377 333 404 
Foreign532 159 122 
Total current income tax expense909 492 526 
Deferred
Canada238 177 (179)
Foreign(8,123)(41)421 
Total deferred income tax (recovery) expense (7,885)136 242 
Total income tax (recovery) expense$(6,976)$628 $768 
Deferred Income Tax Assets and Liabilities The items comprising the deferred income tax assets and liabilities are as follows:
As at December 31 (in millions of Canadian dollars)20232022
Deferred income tax assets
Tax losses and other attributes carried forward$173 $70 
Liabilities carrying value in excess of tax basis276 108 
Unrealized foreign exchange losses18 50 
Environmental remediation costs50 22 
Other7 5 
Total deferred income tax assets524 255 
Valuation allowance(36)(4)
Total net deferred income tax assets$488 $251 
Deferred income tax liabilities
   Investment in Kansas City Southern (Note 12)
— 7,526 
Properties carrying value in excess of tax basis9,481 4,149 
Pensions carrying value in excess of tax basis751 691 
Intangibles carrying value in excess of tax basis789 — 
Investments carrying value in excess of tax basis(1)
473 38 
Other(1)
46 44 
Total deferred income tax liabilities11,540 12,448 
Total net deferred income tax liabilities$11,052 $12,197 
(1) 2022 comparative figures have been reclassified to conform to the current year's presentation.
Expected Income Tax Expense Reconciled to Income Tax Expense Expected income tax (recovery) expense at statutory rates is reconciled to income tax (recovery) expense as follows:
For the year ended December 31 (in millions of Canadian dollars, except percentage)202320222021
Statutory federal and provincial income tax rate (Canada)26.11 %26.12 %26.12 %
Expected income tax (recovery) expense at Canadian enacted statutory tax rates$(797)$1,083 $946 
(Decrease) increase in taxes resulting from:
Reversal of outside basis deferred tax (Note 11)(7,832)— — 
   Remeasurement loss of Kansas City Southern
1,873 — — 
Losses (gains) not subject to tax10 (9)(116)
Canadian tax rate differentials(14)(12)(22)
Foreign tax rate differentials(62)(94)(37)
Effect of tax rate decrease(72)(25)(11)
Deduction for dividends taxed on outside basis(68)(270)— 
Unrecognized tax benefits(10)(24)(2)
Inflation in Mexico(31)— — 
Valuation allowance1 — — 
Other26 (21)10 
Income tax (recovery) expense $(6,976)$628 $768 
Reconciliation of Uncertain Tax Positions in Relation to Unrecognized Tax Benefits
The following table provides a reconciliation of uncertain tax positions in relation to unrecognized tax benefits for Canada, the U.S., and Mexico for the years ended December 31:

(in millions of Canadian dollars)202320222021
Unrecognized tax benefits at January 1$20 $49 $55 
Increase in unrecognized:
Tax benefits related to the current year2 1 — 
Tax benefits related to prior years10 — — 
Tax benefits acquired with KCS2 — — 
Dispositions:
Gross uncertain tax benefits related to prior years(6)(30)(6)
Settlements with taxing authorities(6)— — 
Unrecognized tax benefits at December 31$22 $20 $49 
v3.24.0.1
Earnings per share (Tables)
 12 Months Ended
Dec. 31, 2023
Earnings Per Share [Abstract]  
Number of Shares Used in the Earnings Per Share Calculations
For the year ended December 31 (in millions of Canadian dollars, except per share data)202320222021
Net income attributable to controlling shareholders$3,927 $3,517 $2,852 
Weighted-average basic shares outstanding (millions)931.3 930.0 679.7 
Dilutive effect of stock options (millions)2.4 2.9 3.1 
Weighted-average diluted shares outstanding (millions)933.7 932.9 682.8 
Earnings per share – basic$4.22 $3.78 $4.20 
Earnings per share – diluted$4.21 $3.77 $4.18 
v3.24.0.1
Other comprehensive (loss) income and accumulated other comprehensive (loss) income (Tables)
 12 Months Ended
Dec. 31, 2023
Equity [Abstract]  
Comprehensive Income (Loss)
The components of Other comprehensive (loss) income and the related tax effects attributable to controlling shareholders are as follows:

(in millions of Canadian dollars)Before
tax amount 		Income tax (expense) recovery Net of tax
amount
For the year ended December 31, 2023
Unrealized foreign exchange (loss) gain on:
Translation of the net investment in U.S. subsidiaries and equity method investees$(840)$— $(840)
Translation of the U.S. dollar-denominated long-term debt designated as a hedge of the net investment in U.S. subsidiaries and equity method investees (Note 18)
194 (22)172 
Realized loss on derivatives designated as cash flow hedges recognized in income7 (2)5 
Change in pension and other benefits actuarial gains and losses(57)16 (41)
Change in prior service pension and other benefit costs(16)4 (12)
Equity accounted investments7 — 7 
Other comprehensive loss$(705)$(4)$(709)
For the year ended December 31, 2022
Unrealized foreign exchange gain (loss) on:
Translation of the net investment in U.S. subsidiaries and equity method investees$2,099 $— $2,099 
Translation of the U.S. dollar-denominated long-term debt designated as a hedge of the net investment in U.S. subsidiaries and equity method investees (Note 18)
(471)59 (412)
Realized loss on derivatives designated as cash flow hedges recognized in income6 (2)4 
Change in pension and other benefits actuarial gains and losses706 (182)524 
Change in prior service pension and other benefit costs(26)7 (19)
Equity accounted investments(5)3 (2)
Other comprehensive income$2,309 $(115)$2,194 
For the year ended December 31, 2021
Unrealized foreign exchange (loss) gain on:
Translation of the net investment in U.S. subsidiaries and equity method investees$(316)$— $(316)
Translation of the U.S. dollar-denominated long-term debt designated as a hedge of the net investment in U.S. subsidiaries and equity method investees (Note 18)
25 (3)22 
Change in derivatives designated as cash flow hedges:
Realized loss on derivatives designated as cash flow hedges recognized in income10 (3)7 
Unrealized gain on cash flow hedges38 (9)29 
Change in pension and other benefits actuarial gains and losses1,286 (323)963 
Equity accounted investments9 (3)6 
Other comprehensive income$1,052 $(341)$711 
Schedule of Changes in Accumulated Other Comprehensive Income Loss by Component, Net of Tax
Changes in AOCI attributable to controlling shareholders, net of tax, by component are as follows:

(in millions of Canadian dollars)
Foreign currency
net of hedging
activities
Derivatives
Pension and post-
retirement defined
benefit plans
Equity accounted investmentsTotal
Opening balance, January 1, 2023$1,505 $— $(1,410)$(4)$91 
Other comprehensive (loss) income before reclassifications(668)— (79)6 (741)
Amounts reclassified from AOCI— 5 26 1 32 
Net other comprehensive (loss) income(668)5 (53)7 (709)
Closing balance, December 31, 2023$837 $5 $(1,463)$3 $(618)
Opening balance, January 1, 2022$(182)$(4)$(1,915)$(2)$(2,103)
Other comprehensive income before reclassifications1,687 — 387 164 2,238 
Amounts reclassified from AOCI— 4 118 (166)(44)
Net other comprehensive income (loss)1,687 4 505 (2)2,194 
Closing balance, December 31, 2022$1,505 $— $(1,410)$(4)$91 
v3.24.0.1
Accounts receivable, net (Tables)
 12 Months Ended
Dec. 31, 2023
Receivables [Abstract]  
Schedule of Accounts Receivable, Net
As at December 31, 2023As at December 31, 2022
(in millions of Canadian dollars)FreightNon-freightTotalFreightNon-freightTotal
Total accounts receivable$1,559 $417 $1,976 $785 $272 $1,057 
Allowance for credit losses(63)(26)(89)(27)(14)(41)
Total accounts receivable, net$1,496 $391 $1,887 $758 $258 $1,016 
v3.24.0.1
Business acquisition (Tables)
 12 Months Ended
Dec. 31, 2023
Business Combination and Asset Acquisition [Abstract]  
Business Combination, Separately Recognized Transactions
The following table summarizes the preliminary purchase price allocation with the amounts recognized in respect of the identifiable assets acquired and liabilities and non-controlling interest assumed on the Control Date, as well as the fair value of the previously held equity interest in KCS and the measurement period adjustments recorded during the year:

(in millions of Canadian dollars)Reported at
April 14, 2023		Measurement period adjustmentsReported at December 31, 2023
Net assets acquired:
Cash and cash equivalents$298 $— $298 
Net working capital51 (110)(59)
Properties28,748 1 28,749 
Intangible assets3,022 — 3,022 
Other long-term assets496 (5)491 
Debt including debt maturing within one year(4,545)— (4,545)
Deferred income taxes(6,984)42 (6,942)
Other long-term liabilities(406)(2)(408)
Total identifiable net assets$20,680 $(74)$20,606 
Goodwill17,491 74 17,565 
$38,171 $— $38,171 
Consideration:
Fair value of previously held equity method investment$37,227 $— $37,227 
Intercompany payable balance, net acquired12 — 12 
Fair value of non-controlling interest932 — 932 
Total$38,171 $— $38,171 
Business Acquisition, Pro Forma Information On a pro forma basis, if the Company had consolidated KCS starting January 1, 2022, the revenue and net income attributable to controlling shareholders of the combined entity would be as follows for the years ended December 31, 2023 and December 31, 2022:
For the year ended December 31, 2023For the year ended December 31, 2022
(in millions of Canadian dollars)
KCS Historical(1)
Pro Forma CPKC
KCS Historical(1)
Pro Forma CPKC
Revenue$1,351 $13,909 $4,390 $13,217 
Net income attributable to controlling shareholders280 3,174 1,287 4,153 
(1) KCS's results were translated into Canadian dollars at the Bank of Canada daily exchange rate for the period from January 1 to April 13, 2023 and year ended December 31, 2022 with effective exchange rates of $1.35 and $1.30, respectively.
v3.24.0.1
Investment in Kansas City Southern (Tables)
 12 Months Ended
Dec. 31, 2023
Equity Method Investments and Joint Ventures [Abstract]  
Summarized Financial Information
The following tables present summarized financial information for KCS, on its historical cost basis:

Consolidated Statements of Income

(in millions of Canadian dollars)(1)
For the period January 1 to April 13, 2023
For the year ended December 31, 2022(3)
For the period December 14 to December 31, 2021
Total revenues$1,351 $4,390 $178 
Total operating expenses888 2,794 287 
Operating income (loss)463 1,596 (109)
Less: Other(2)
83 (119)12 
Income (loss) before income taxes380 1,715 (121)
Net income (loss)$280 $1,287 $(106)
(1) Amounts translated at the average FX rate for the period from January 1 to April 13, 2023 of $1.00 USD = $1.35 CAD, for the year ended December 31, 2022 of $1.00 USD = $1.30 CAD, and for the period from December 14 to 31, 2021 of $1.00 USD = $1.28 CAD.
(2) Includes Equity in net earnings of KCS's affiliates, Interest expense, FX loss, Gain on settlement of treasury lock agreements, and Other income, net.
(3) Certain 2022 comparative figures have been revised to conform with current year's presentation regarding translation of KCS's historical results from U.S. dollars to Canadian dollars.
Consolidated Balance Sheet

(in millions of Canadian dollars)(1)
As at December 31, 2022
Assets
Current assets$1,441 
Properties12,680 
Other non-current assets340 
Liabilities
Current liabilities$1,748 
Long-term debt4,232 
Other non-current liabilities1,987 
Non-controlling interest448 
(1) Amounts translated at the December 31, 2022 year-end at FX rate of $1.00 USD = $1.35 CAD.
v3.24.0.1
Properties (Tables)
 12 Months Ended
Dec. 31, 2023
Property, Plant and Equipment [Abstract]  
Properties
202320232022
As at December 31
(in millions of Canadian dollars except percentages)		Weighted-average annual depreciation rateCostAccumulated
depreciation		Net book
value		CostAccumulated
depreciation		Net book
value
Track and roadway(1)
2.8 %$42,597 $6,811 $35,786 $21,524 $6,308 $15,216 
Rolling stock3.6 %8,125 1,629 6,496 5,085 1,523 3,562 
Land(1)
N/A3,487 — 3,487 964 — 964 
Concession land rights1.4 %1,779 17 1,762 — — — 
Buildings3.0 %1,732 281 1,451 1,069 254 815 
Other6.7 %4,065 1,303 2,762 3,038 1,210 1,828 
Total$61,785 $10,041 $51,744 $31,680 $9,295 $22,385 
(1) 2022 comparative figures have been reclassified to confirm with current year's presentation.

The breakdown of Concession assets included within each asset group of Properties shown above is as follows:

As at December 31, 2023 (in millions of Canadian dollars)CostAccumulated
depreciation		Net book
value
Track and roadway$7,056 $99 $6,957 
Concession land rights1,779 17 1,762 
Buildings230 7 223 
Other141 4 137 
Total$9,206 $127 $9,079 

Finance lease ROU assets

20232022
As at December 31 (in millions of Canadian dollars)CostAccumulated
depreciation		Net book
value		CostAccumulated
depreciation		Net book
value
Rolling stock$182 $79 $103 $170 $75 $95 
Other14 6 8 10 3 7 
Total ROU assets held under finance lease$196 $85 $111 $180 $78 $102 
v3.24.0.1
Goodwill (Tables)
 12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill
(in millions of Canadian dollars)
Balance as at December 31, 2021$328 
Foreign exchange impact16 
Balance as at December 31, 2022344 
Addition (Note 11)
17,565 
Foreign exchange impact(180)
Balance as at December 31, 2023$17,729 
v3.24.0.1
Intangible assets (Tables)
 12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Finite-Lived Intangible Assets
(in millions of Canadian dollars)
Cost(1)
Accumulated
amortization		Net carrying amount
Balance as at December 31, 2021$64 $(21)$43 
Amortization— (3)(3)
Foreign exchange impact2 — 2 
Balance as at December 31, 202266 (24)42 
Additions (Note 11)
3,022 — 3,022 
Amortization— (61)(61)
Foreign exchange impact(27)(2)(29)
Balance as at December 31, 2023$3,061 $(87)$2,974 
(1) As at December 31, 2023, the Company held $1,798 million (2022 - $9 million) of Intangible assets not subject to amortization.
Schedule of Indefinite-Lived Intangible Assets
(in millions of Canadian dollars)
Cost(1)
Accumulated
amortization		Net carrying amount
Balance as at December 31, 2021$64 $(21)$43 
Amortization— (3)(3)
Foreign exchange impact2 — 2 
Balance as at December 31, 202266 (24)42 
Additions (Note 11)
3,022 — 3,022 
Amortization— (61)(61)
Foreign exchange impact(27)(2)(29)
Balance as at December 31, 2023$3,061 $(87)$2,974 
(1) As at December 31, 2023, the Company held $1,798 million (2022 - $9 million) of Intangible assets not subject to amortization.
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense
(in millions of Canadian dollars)
2024$85 
202585
202685
202785
202885
2029 and thereafter751 
Total $1,176 
v3.24.0.1
Accounts payable and accrued liabilities (Tables)
 12 Months Ended
Dec. 31, 2023
Payables and Accruals [Abstract]  
Accounts Payable and Accrued Liabilities
As at December 31 (in millions of Canadian dollars)20232022
Trade payables$680 $503 
Accrued charges667 284 
Income and other taxes payable255 177 
Dividends payable177 177 
Accrued interest162 143 
Payroll-related accruals115 79 
Operating lease liabilities (Note 20)
102 68 
Accrued vacation99 62 
Personal injury and other claims provision81 53 
Financial derivative liability (Note 18)
60 — 
Stock-based compensation liabilities50 84 
Other119 73 
Total accounts payable and accrued liabilities$2,567 $1,703 
v3.24.0.1
Debt (Tables)
 12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Long-term Debt
The following table outlines the Company's outstanding long-term debt as at December 31, 2023:

(in millions of Canadian dollars except percentages)MaturityCurrency
in which
payable		20232022
4.45%
12.5-year Notes
(A)Mar 2023U.S.$$— $474 
1.589%
2-year Notes (1)
(A)Nov 2023CDN$— 1,000 
1.35%
3-year Notes (1)
(A)Dec 2024U.S.$1,983 2,030 
2.90%
10-year Notes
(A)Feb 2025U.S.$926 948 
3.70%
10.5-year Notes
(A)Feb 2026U.S.$330 338 
1.75%
5-year Notes (1)
(A)Dec 2026U.S.$1,321 1,353 
2.54%
6.3-year Notes (1)
(A)Feb 2028CDN$1,200 1,200 
4.00%
10-year Notes
(A)Jun 2028U.S.$661 677 
3.15%
10-year Notes
(A)Mar 2029CDN$400 399 
2.05%
10-year Notes
(A)Mar 2030U.S.$660 676 
7.125%
30-year Debentures
(A)Oct 2031U.S.$463 474 
2.45%
10-year Notes (1)
(A)Dec 2031U.S.$1,851 1,896 
5.75%
30-year Debentures
(A)Mar 2033U.S.$326 333 
4.80%
20-year Notes
(A)Sep 2035U.S.$396 405 
5.95%
30-year Notes
(A)May 2037U.S.$590 603 
6.45%
30-year Notes
(A)Nov 2039CDN$400 400 
3.00%
20-year Notes (1)
(A)Dec 2041U.S.$1,317 1,348 
5.75%
30-year Notes
(A)Jan 2042U.S.$326 334 
4.80%
30-year Notes
(A)Aug 2045U.S.$725 743 
3.05%
30-year Notes
(A)Mar 2050CDN$298 298 
3.10%
30-year Notes (1)
(A)Dec 2051U.S.$2,365 2,422 
6.125%
100-year Notes
(A)Sep 2115U.S.$1,190 1,219 
CPRC Notes issued under Debt Exchange
3.125%
10-year Notes
(B)Jun 2026U.S.$291 — 
2.875%
10-year Notes
(B)Nov 2029U.S.$499 — 
4.30%
30-year Notes
(B)May 2043U.S.$515 — 
4.95%
30-year Notes
(B)Aug 2045U.S.$574 — 
4.70%
30-year Notes
(B)May 2048U.S.$599 — 
3.50%
30-year Notes
(B)May 2050U.S.$540 — 
4.20%
50-year Notes
(B)Nov 2069U.S.$444 — 
2.875% - 7.00%
Other Senior Notes(B)up to Nov 2069U.S.$104 — 
5.41%Senior Secured Notes (C)Mar 2024U.S.$64 76 
6.91%Secured Equipment Notes (D)Oct 2024CDN$21 40 
2.96% - 4.29%
RRIF Loans(E)up to Feb 2037U.S.$70 — 
Obligations under finance leases
Various(F)VariousCDN$/U.S.$8 2 
2.32%(F)Sep 2026U.S.$8 — 
6.57%(F)Dec 2026U.S.$22 29 
12.77%(F)Jan 2031CDN$3 3 
1.93%(F)Feb 2041U.S.$4 4 
Commercial Paperup to Jan 2024U.S.$1,058 — 
22,552 19,724 
Perpetual 4% Consolidated Debenture Stock
(G)U.S.$40 41 
Perpetual 4% Consolidated Debenture Stock
(G)G.B.£6 6 
22,598 19,771 
Unamortized fees on long-term debt(104)(120)
22,494 19,651 
Less: Long-term debt maturing within one year3,143 1,510 
Total long-term debt$19,351 $18,141 
(1) Notes issued to fund the cash consideration component of the KCS acquisition (Note 11).
v3.24.0.1
Other long-term liabilities (Tables)
 12 Months Ended
Dec. 31, 2023
Other Liabilities Disclosure [Abstract]  
Other Long-Term Liabilities
As at December 31 (in millions of Canadian dollars)20232022
Operating lease liabilities, net of current portion (Note 20)
$242 $202 
Provision for environmental remediation, net of current portion(1)
200 71 
Stock-based compensation liabilities, net of current portion161 125 
Deferred lease and license revenue, net of current portion(2)
68 15 
Deferred revenue, net of current portion (Note 4)
16 39 
Other, net of current portion110 68 
Total other long-term liabilities$797 $520 
(1) As at December 31, 2023, the aggregate provision for environmental remediation, including the current portion was $220 million (2022 – $83 million).
(2) The deferred lease and license revenue is being amortized to income on a straight-line basis over the related lease terms.
v3.24.0.1
Leases (Tables)
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Components of Lease Expense
Components of lease expense included in the Consolidated Statements of Income for the years ended December 31 are as follows:

(in millions of Canadian dollars)202320222021
Operating lease cost$94 $77 $74 
Short-term lease cost29 17 16 
Variable lease cost10 9 5 
Sublease income(1)(2)(3)
Finance lease cost
Amortization of ROU assets10 6 10 
Interest on lease liabilities2 4 10 
Total lease costs$144 $111 $112 
Supplemental Balance Sheet Information Consolidated Balance Sheet are as follows:
As at December 31 (in millions of Canadian dollars)Classification20232022
 ROU Assets
Operating leasesOther assets (long-term)$347 $267 
Finance leasesProperties111 102 
Lease Liabilities
Current liabilities
Operating leasesAccounts payable and accrued liabilities102 68 
Finance leasesLong-term debt maturing within one year14 8 
Long-term liabilities
Operating leasesOther long-term liabilities242 202 
Finance leasesLong-term debt 31 30 
Weighted Average Remaining Lease Terms and Discount Rates
The following table provides the Company's weighted-average remaining lease terms and discount rates:

20232022
Weighted-Average Remaining Lease Term
Operating leases5 years5 years
Finance leases4 years6 years
Weighted-Average Discount Rate
Operating leases3.93 %3.20 %
Finance leases6.18 %6.89 %
Supplemental Information Related to Leases
Cash Flow information related to leases is as follows:

As at December 31 (in millions of Canadian dollars)202320222021
Cash paid for amounts included in measurement of lease liabilities
Operating cash outflows from operating leases$96 $64 $64 
Operating cash outflows from finance leases2 6 10 
Financing cash outflows from finance leases13 104 8 
ROU assets obtained in exchange for lease liabilities
Operating leases62 34 36 
Finance leases— — 5 
Maturities of Lease Liabilities
The following table provides the maturities of lease liabilities for the next five years and thereafter as at December 31, 2023:

(in millions of Canadian dollars)Finance leasesOperating leases
2024$15 $110 
202514 86 
202614 77 
20271 50 
2028— 30 
Thereafter7 29 
Total lease future payments51 382 
Imputed interest(6)(37)
Present value of future lease payments$45 $345 
v3.24.0.1
Shareholders' equity (Tables)
 12 Months Ended
Dec. 31, 2023
Equity [Abstract]  
Summary of Information Related to Common Share Balances
The following table summarizes information related to Common Share balances as at December 31:

(number of shares in millions)202320222021
Share capital, January 1930.5 929.7 666.3 
Shares issued under stock option plan1.6 0.8 0.8 
   Shares issued for KCS acquisition (Note 11)
— — 262.6 
Share capital, December 31932.1 930.5 929.7 
v3.24.0.1
Change in non-cash working capital balances related to operations (Tables)
 12 Months Ended
Dec. 31, 2023
Supplemental Cash Flow Elements [Abstract]  
Changes In Non-cash Working Capital Balances Related To Operations
For the year ended December 31 (in millions of Canadian dollars)202320222021
(Use) source of cash:
Accounts receivable, net$(317)$(147)$32 
Materials and supplies1 (27)(14)
Other current assets(49)(13)24 
Accounts payable and accrued liabilities57 95 (108)
Change in non-cash working capital balances related to operations$(308)$(92)$(66)
v3.24.0.1
Pensions and other benefits (Tables)
 12 Months Ended
Dec. 31, 2023
Retirement Benefits [Abstract]  
Net Periodic Benefit Cost
The elements of net periodic benefit (recovery) cost for DB pension plans and other benefits recognized in the year include the following components:

 PensionsOther benefitsTotal
For the year ended December 31 (in millions of Canadian dollars)202320222021202320222021202320222021
Current service cost$71 $148 $171 $10 $11 $13 $81 $159 $184 
Other components of net periodic benefit (recovery) cost:
Interest cost on benefit obligation486 383 351 22 16 16 508 399 367 
Expected return on plan assets(882)(959)(959)— — — (882)(959)(959)
Recognized net actuarial loss (gain)32 153 206 13 (5)(1)45 148 205 
Amortization of prior service costs2 1 — — — — 2 1 — 
Total other components of net periodic benefit (recovery) cost(362)(422)(402)35 11 15 (327)(411)(387)
Net periodic benefit (recovery) cost$(291)$(274)$(231)$45 $22 $28 $(246)$(252)$(203)
Schedule of Changes in Projected Benefit Obligation
Information about the Company’s DB pension plans and other benefits, in aggregate, is as follows:

 PensionsOther benefitsTotal
(in millions of Canadian dollars)202320222023202220232022
Change in projected benefit obligation:
Projected benefit obligation at January 1$9,936 $12,884 $411 $503 $10,347 $13,387 
Current service cost71 148 10 11 81 159 
Interest cost486 383 22 16 508 399 
Employee contributions48 42 — — 48 42 
Benefits paid(656)(680)(37)(22)(693)(702)
Foreign currency changes(4)16 6 — 2 16 
Addition of KCS plans— — 31 — 31 — 
Plan amendments and other18 27 (1)— 17 27 
Net actuarial loss (gain)407 (2,884)21 (97)428 (2,981)
Projected benefit obligation at December 31$10,306 $9,936 $463 $411 $10,769 $10,347 
Schedule of Changes in Fund Assets
 PensionsOther benefitsTotal
(in millions of Canadian dollars)202320222023202220232022
Change in plan assets:
Fair value of plan assets at January 1$12,862 $14,938 $5 $5 $12,867 $14,943 
Actual return on plan assets1,207 (1,464)1 — 1,208 (1,464)
Employer contributions15 14 37 22 52 36 
Employee contributions48 42 — — 48 42 
Benefits paid(656)(680)(37)(22)(693)(702)
Foreign currency changes(4)12 — — (4)12 
Fair value of plan assets at December 31$13,472 $12,862 $6 $5 $13,478 $12,867 
Funded status – plan surplus (deficit)$3,166 $2,926 $(457)$(406)$2,709 $2,520 
Funded Status of Pension Plans
The table below shows the aggregate pension projected benefit obligation and aggregate fair value of plan assets for pension plans with fair value of plan assets in excess of projected benefit obligations (i.e. surplus), and for pension plans with projected benefit obligations in excess of fair value of plan assets (i.e. deficit):

 20232022
(in millions of Canadian dollars)Pension
plans in
surplus		Pension
plans in
deficit		Pension
plans in
surplus		Pension
plans in
deficit
Projected benefit obligation at December 31$(9,872)$(434)$(9,512)$(424)
Fair value of plan assets at December 3113,210 262 12,613 249 
Funded status$3,338 $(172)$3,101 $(175)
Pension Asset and Liabilities in the Company's Consolidated Balance Sheets
Amounts recognized in the Company’s Consolidated Balance Sheets are as follows:

 PensionsOther benefitsTotal
As at December 31 (in millions of Canadian dollars)202320222023202220232022
Pension asset$3,338 $3,101 $— $— $3,338 $3,101 
Accounts payable and accrued liabilities(11)(10)(37)(33)(48)(43)
Pension and other benefit liabilities(161)(165)(420)(373)(581)(538)
Total amount recognized$3,166 $2,926 $(457)$(406)$2,709 $2,520 
Accumulated Other Comprehensive Loss
Amounts recognized in AOCI are as follows:

 PensionsOther benefitsTotal
As at December 31 (in millions of Canadian dollars)202320222023202220232022
Net actuarial (loss) gain:
Other than deferred investment (losses) gains$(1,871)$(1,711)$28 $35 $(1,843)$(1,676)
Deferred investment (losses) gains(191)(301)— — (191)(301)
Prior service cost(47)(31)(1)(1)(48)(32)
Deferred income tax626 608 (7)(9)619 599 
Total (Note 8)
$(1,483)$(1,435)$20 $25 $(1,463)$(1,410)
Actuarial Assumptions
Weighted-average actuarial assumptions used were approximately:

(percentages)202320222021
Benefit obligation at December 31:
Discount rate4.64 5.01 3.01 
Projected future salary increases2.75 2.75 2.75 
Health care cost trend rate5.00 5.00 5.00 
Benefit cost for year ended December 31:
Discount rate5.01 3.01 2.58 
Expected rate of return on plan assets (1)
6.90 6.90 6.90 
Projected future salary increases2.75 2.75 2.75 
Health care cost trend rate5.00 5.00 5.00 
(1) The expected rate of return on plan assets that will be used to compute the 2024 net periodic benefit recovery is 6.70%.
Pension Plan Asset Allocation and Weighted-average Policy Ranges
The Company’s pension plan asset allocation, the weighted-average asset allocation targets, and the weighted-average policy range for each major asset class at year-end were as follows:

 Percentage of plan assets
 at December 31
Asset allocation (percentage)Asset allocation targetPolicy range20232022
Cash and cash equivalents2.7 
0 – 10
2.2 1.1 
Fixed income38.1 
20 – 43
31.2 20.5 
Public equity29.7 
24 – 55
35.8 46.4 
Real estate and infrastructure14.7 
6 – 20
11.3 11.4 
Private debt7.4 
3 – 13
8.4 7.7 
Absolute return7.4 
3 – 13
11.1 12.9 
Total100.0 100.0 100.0 
Summary of the Assets of the Company's DB Pension Plans
The following is a summary of the assets of the Company’s DB pension plans at December 31, 2023 and 2022. As at December 31, 2023 and 2022, there were no plan assets classified as Level 3 valued investments.

Assets Measured at Fair Value
Investments
measured at NAV(1)
Total Plan
Assets
(in millions of Canadian dollars)Quoted prices in
active markets
for identical assets (Level 1)		Significant other observable inputs (Level 2)
December 31, 2023
Cash and cash equivalents$297 $— $— $297 
Fixed income
Government bonds(2)
211 1,900 — 2,111 
Corporate bonds(2)
644 998 — 1,642 
Mortgages(3)
206 — — 206 
Mortgage-backed and asset-backed securities(4)
— 123 — 123 
Public equities
Canada534 — — 534 
U.S. and international4,293 — — 4,293 
Real estate(5)
— — 563 563 
Infrastructure(6)
— — 961 961 
Private debt(7)
— — 1,128 1,128 
Derivative instruments(8)
— 116 — 116 
Absolute return(9)
Funds of hedge funds— — 1,498 1,498 
$6,185 $3,137 $4,150 $13,472 
December 31, 2022
Cash and cash equivalents$218 $— $— $218 
Fixed income
Government bonds(2)
180 1,125 — 1,305 
Corporate bonds(2)
432 724 — 1,156 
Mortgages(3)
182 2 — 184 
Public equities
Canada769 — — 769 
U.S. and international5,195 — — 5,195 
Real estate(5)
— — 722 722 
Infrastructure(6)
— — 744 744 
Private debt(7)
— — 992 992 
Derivative instruments(8)
— (81)— (81)
Absolute return(9)
Funds of hedge funds— — 1,658 1,658 
$6,976 $1,770 $4,116 $12,862 
(1) Investments measured at net asset value ("NAV"):
Amounts are comprised of certain investments measured using NAV (or its equivalent) as a practical expedient. These investments have not been classified in the fair value hierarchy.
(2) Government & Corporate Bonds:
Fair values for bonds are based on market prices supplied by independent sources as of the last trading day.
(3) Mortgages:
The fair values of mortgages are based on current market yields of financial instruments of similar maturity, coupon and risk factors.
(4) Mortgage-backed and asset-backed securities:
The fair values of mortgage-backed and asset-backed securities are determined based on valuations from pricing sources that incorporate broker-dealer quotations, reported trades or valuation estimates from their internal pricing models which consider tranche-level attributes, current market data, estimated cash flows and market-based yield spreads and incorporate deal collateral performance, as available.
(5) Real estate:
Real estate fund values are based on the NAV of the funds that invest directly in real estate investments. The values of the investments have been estimated using the capital accounts representing the plans' ownership interest in the funds. Of the total, $480 million is subject to redemption frequencies ranging from monthly to annually and a redemption notice period of 90 days (2022 – $595 million). The remaining $83 million is not subject to redemption and is normally returned through distributions as a result of the liquidation of the underlying real estate investments (2022 – $127 million). As at December 31, 2023, there are $166 million of unfunded commitments for real estate investments (December 31, 2022 – $40 million).
(6) Infrastructure:
Infrastructure fund values are based on the NAV of the funds that invest directly in infrastructure investments. The values of the investments have been estimated using the capital accounts representing the plans' ownership interest in the funds. Of the total, $493 million is subject to redemption frequencies ranging from monthly to annually and a redemption notice period of 90 days (2022 – $356 million). The remaining $468 million is not subject to redemption and is normally returned through distributions as a result of the liquidation of the underlying infrastructure investments (2022 – $388 million). As at December 31, 2023, there are $220 million of unfunded commitments for infrastructure investments (December 31, 2022 – $356 million).
(7) Private debt:
Private debt fund values are based on the NAV of the funds that invest directly in private debt investments. The values of the investments have been estimated using the capital accounts representing the plans' ownership interest in the funds. Of the total, $124 million is subject to redemption frequencies ranging from monthly to annually and a redemption notice period of 90 days (2022 – $160 million). The remaining $1,004 million is not subject to redemption and is normally returned through distributions as a result of the repayment of the underlying loans (2022 - $832 million). As at December 31, 2023, there are $540 million of unfunded commitments for private debt investments (December 31, 2022 – $747 million).
(8) Derivatives:
The investment managers may utilize the following derivative instruments: equity futures to replicate equity index returns (Level 2); currency forwards to partially hedge foreign currency exposures (Level 2); bond futures and forwards to manage duration and interest rate risk (Level 2); interest rate swaps to manage duration and interest rate risk (Level 2); credit default swaps to manage credit risk (Level 2); and options to manage interest rate risk and volatility (Level 2). The Company may utilize derivatives directly, but only for the purpose of hedging foreign currency exposures. One of the fixed income investment managers utilizes a portfolio of bond forwards for the purpose of reducing asset/liability interest rate exposure. As at December 31, 2023, there are bond forwards with a notional value of $1,396 million (December 31, 2022 – $1,745 million) and a fair value of $116 million (December 31, 2022 – $(81) million).
(9) Absolute return:
The value of absolute return fund investments is based on the NAV reported by the fund administrators. The funds have different redemption policies with redemption notice periods varying from 30 to 120 days and frequencies ranging from monthly to triennially.
Estimated Future Benefit Payments
The estimated future DB pension and other benefit payments to be paid by the plans for each of the next five years and the subsequent five-year period are as follows:

(in millions of Canadian dollars)PensionsOther benefits
2024$668 $37 
2025663 35 
2026662 34 
2027661 33 
2028663 38 
2029-20333,265 159 
v3.24.0.1
Stock-based compensation (Tables)
 12 Months Ended
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]  
Summary of Stock Option Plan
The following table summarizes the activity related to the stock options during 2023:

Options outstandingNon-vested options
Number of
stock options		Weighted-average
exercise price		Number of
stock options		Weighted-average
grant date
fair value
Outstanding, January 1, 20237,353,133 $61.69 2,597,008 $18.09 
Granted856,332 $105.13 856,332 $29.79 
Exercised(1,634,730)$42.13 N/AN/A
VestedN/AN/A(1,047,434)$16.66 
Forfeited(102,803)$92.84 (102,803)$23.08 
Outstanding, December 31, 20236,471,932 $71.03 2,303,103 $22.87 
Vested or expected to vest at December 31, 2023(1)
6,428,547 $70.83 N/AN/A
Exercisable, December 31, 20234,168,829 $58.20 N/AN/A
(1) As at December 31, 2023, the weighted-average remaining term of vested or expected to vest options was 3.3 years with an aggregate intrinsic value of $219 million.
Stock Options Outstanding and Exercisable
The following table provides the number of stock options outstanding and exercisable as at December 31, 2023 by range of exercise price and their related intrinsic aggregate value, and for stock options outstanding, the weighted-average years to expiration. The table also provides the aggregate intrinsic value for in-the-money stock options, which represents the amount that would have been received by option holders had they exercised their options on December 31, 2023 at the Company’s closing stock price of $104.84.

Options outstandingOptions exercisable
Range of exercise pricesNumber of
stock options		Weighted-average
years to
expiration		Weighted-average
exercise
price		Aggregate
intrinsic
value
(millions)		Number of
stock options		Weighted-average
exercise
price		Aggregate
intrinsic
value
(millions)
$30.94 - $50.19
1,693,436 1.2$40.04 $110 1,693,436 $40.04 $110 
$50.20 - $70.36
1,395,999 2.3$58.53 $65 1,284,814 $57.53 $61 
$70.37 - $94.27
1,610,826 4.0$82.99 $35 822,618 $80.20 $20 
$94.28 - $109.01
1,771,671 5.3$99.62 $9 367,961 $94.94 $4 
Total(1)
6,471,932 3.3$71.03 $219 4,168,829 $58.20 $195 
(1) As at December 31, 2023, the total number of in-the-money stock options outstanding was 5,787,281 with a weighted-average exercise price of $66.96. The weighted-average years to expiration of exercisable stock options is 2.3 years.
Weighted-Average Fair Value Assumptions The following table provides assumptions used to determine the fair values of stock option awards, and the weighted-average grant date fair values for units granted in 2023, 2022 and 2021:
202320222021
Expected option life (years)(1)
4.754.754.75
Risk-free interest rate(2)
3.35 %1.62 %0.53 %
Expected stock price volatility(3)
28.44 %26.85 %27.14 %
Expected annual dividends per share(4)
$0.76 $0.76 $0.76 
Expected forfeiture rate(5)
3.18 %3.01 %2.62 %
Weighted-average grant date fair value of options granted during the year$29.79 $21.33 $19.06 
(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. The rate is monitored on a periodic basis.
Schedule of Options Exercised
The following table provides information related to all stock options exercised in the plan during the years ended December 31:

(in millions of Canadian dollars)202320222021
Total intrinsic value$101 $53 $43 
Cash received by the Company upon exercise of options69 32 25 
Summary of Performance Share Unit Plan
The following table summarizes the activity related to PSUs and PDSUs during for each of the years ended December 31:

20232022
Outstanding, January 11,336,358 1,577,781 
Granted917,744 429,166 
Issued in lieu of dividends10,845 11,207 
Settled(460,667)(637,073)
PDSUs converted into DSUs(45,058)— 
Forfeited(80,669)(44,723)
Outstanding, December 311,678,553 1,336,358 
Summary of Deferred Share Unit Plan
The following table summarizes the activity related to DSUs for each of the years ended December 31:

20232022
Outstanding, January 1744,530 841,333 
Granted85,750 60,262 
PDSUs converted into DSUs81,533 — 
Issued in lieu of dividends5,685 6,510 
Settled(15,935)(162,319)
Forfeited(1,745)(1,256)
Outstanding, December 31899,818 744,530 
Summary of Share-Based Liabilities Paid
The following table summarizes the total share unit liabilities paid for each of the years ended December 31:

(in millions of Canadian dollars)202320222021
Plan
PSUs$86 $116 $119 
DSUs2 16 1 
Other1 5 6 
Total$89 $137 $126 
v3.24.0.1
Segmented and geographic information (Tables)
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Geographic Information
Geographic information
All of the Company's revenues and long-lived assets disclosed in the table below are held within Canada, the U.S., and Mexico.

For the years ended and as at December 31 (in millions of Canadian dollars)CanadaU.S.Mexico Total
2023
Revenues$6,651 $4,257 $1,647 $12,555 
Long-lived assets: Properties and right of use assets15,933 25,141 11,017 52,091 
2022
Revenues6,423 2,391 — 8,814 
Long-lived assets: Properties and right of use assets(1)
15,208 7,444 — 22,652 
2021
Revenues5,992 2,003 — 7,995 
(1) 2022 comparative figure has been revised to conform with current year's presentation.
v3.24.0.1
Description of the business (Details) - mi
mi in Thousands
Apr. 14, 2023
Apr. 13, 2023
Description of Business [Line Items]    
Miles of transportation network 20  
Kansas City Southern    
Description of Business [Line Items]    
Ownership percentage   100.00%
v3.24.0.1
Summary of significant accounting policies (Details)
 12 Months Ended
Dec. 31, 2023
Apr. 13, 2023
Summary of Significant Accounting Policies [Line items]    
Probability threshold for recognizing income tax benefits to be realized upon settlement 50.00%  
Short-term investments maturity, maximum 3 months  
Market-related asset value, maximum percentage 120.00%  
Market-related asset value, minimum percentage 80.00%  
Unrecognized actuarial gains and losses, maximum percentage 10.00%  
Expected average remaining service period of active employees expected to receive benefits 13 years  
Kansas City Southern | Concession land rights    
Summary of Significant Accounting Policies [Line items]    
Property, plant and equipment, useful life   50 years
Maximum    
Summary of Significant Accounting Policies [Line items]    
Amortization period of intangible assets with finite lives (years) 22 years  
v3.24.0.1
Revenues - Disaggregation of Revenue (Details) - CAD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers $ 12,442 $ 8,730 $ 7,916
Revenues from contracts with customers 113 84 79
Total revenues 12,555 8,814 7,995
Freight      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 12,281 8,627 7,816
Total revenues 12,281 8,627 7,816
Grain      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 2,496 1,776 1,684
Coal      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 859 577 625
Potash      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 566 581 463
Fertilizers and sulphur      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 385 332 305
Forest products      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 696 403 348
Energy, chemicals and plastics      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 2,301 1,394 1,563
Metals, minerals and consumer products      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 1,579 884 728
Automotive      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 934 438 376
Intermodal      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers 2,465 2,242 1,724
Non-freight excluding leasing revenues      
Disaggregation of Revenue [Line Items]      
Revenues from contracts with customers $ 161 $ 103 $ 100
v3.24.0.1
Revenues - Contract Liabilities (Details) - CAD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Contract with Customer, Liability [Abstract]    
Opening balance, January 1 $ 64 $ 67
Contract liabilities assumed upon the acquisition of KCS (Note 11) 7 0
Revenue recognized in the period that was included in the opening balance or liabilities assumed 36 21
Increase due to consideration received, net of revenue recognized in the period 17 18
Closing balance, December 31 $ 52 $ 64
v3.24.0.1
Other expense (Details) - CAD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Other expense [Line Items]      
Foreign exchange gain on debt and lease liabilities $ 0 $ 0 $ (7)
Acquisition-related costs (Note 11) 190    
Other expense 52 17 237
Other Expense      
Other expense [Line Items]      
Foreign exchange gain on debt and lease liabilities 0 0 (7)
Other foreign exchange gains (12) 0 (4)
Acquisition-related costs (Note 11) 6 0 247
Other 19 17 1
Forward Contracts | Other Expense      
Other expense [Line Items]      
Other foreign exchange gains $ 39 $ 0 $ 0
v3.24.0.1
Income taxes - Summary of Major Components of Company's Income Tax Expense (Details) - CAD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Income Tax Disclosure [Abstract]      
Current income tax expense (Note 6) $ 909 $ 492 $ 526
Reversal of outside basis deferred tax (Note 11) (7,832) 0 0
Origination and reversal of temporary differences 53 101 259
Effect of tax rate decrease (72) (25) (11)
Effect of hedge of net investment in foreign subsidiaries and equity-method investees (Note 8) (22) 59 (3)
Other (12) 1 (3)
Total deferred income tax (recovery) expense (7,885) 136 242
Total income tax (recovery) expense (6,976) 628 768
(Loss) income before income tax (recovery) expense      
Canada 2,359 2,236 2,899
Foreign (5,412) 1,909 721
(Loss) income before income tax (recovery) expense (3,053) 4,145 3,620
Current      
Canada 377 333 404
Foreign 532 159 122
Total current income tax expense 909 492 526
Deferred      
Canada 238 177 (179)
Foreign (8,123) (41) 421
Total deferred income tax (recovery) expense (7,885) 136 242
Total income tax (recovery) expense $ (6,976) $ 628 $ 768
v3.24.0.1
Income taxes - Deferred Income Tax Assets and Liabilities (Details)
$ in Millions, $ in Millions
Dec. 31, 2023
CAD ($)
Dec. 31, 2022
CAD ($)
Dec. 31, 2021
CAD ($)
Dec. 14, 2021
CAD ($)
Dec. 14, 2021
USD ($)
Deferred income tax assets          
Tax losses and other attributes carried forward $ 173 $ 70      
Liabilities carrying value in excess of tax basis 276 108      
Unrealized foreign exchange losses 18 50      
Environmental remediation costs 50 22      
Other 7 5      
Total deferred income tax assets 524 255      
Valuation allowance (36) (4)      
Total net deferred income tax assets 488 251      
Deferred income tax liabilities          
Investment in Kansas City Southern (Note 12) 0 7,526 $ 7,079 $ 7,178 $ 5,607
Properties carrying value in excess of tax basis 9,481 4,149      
Pensions carrying value in excess of tax basis 751 691      
Intangibles carrying value in excess of tax basis 789 0      
Investments carrying value in excess of tax basis 473 38      
Other 46 44      
Total deferred income tax liabilities 11,540 12,448      
Total net deferred income tax liabilities $ 11,052 $ 12,197      
v3.24.0.1
Income taxes - Expected Income Tax Expense at Canadian Statutory Rates Reconciled to Income Tax Expense (Details) - CAD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Income Tax Disclosure [Abstract]      
Statutory federal and provincial income tax rate (Canada) 26.11% 26.12% 26.12%
Expected income tax (recovery) expense at Canadian enacted statutory tax rates $ (797) $ 1,083 $ 946
(Decrease) increase in taxes resulting from:      
Reversal of outside basis deferred tax (Note 11) (7,832) 0 0
Remeasurement loss of Kansas City Southern 1,873 0 0
Losses (gains) not subject to tax 10 (9) (116)
Canadian tax rate differentials (14) (12) (22)
Foreign tax rate differentials (62) (94) (37)
Effect of tax rate decrease (72) (25) (11)
Deduction for dividends taxed on outside basis (68) (270) 0
Unrecognized tax benefits (10) (24) (2)
Inflation in Mexico (31) 0 0
Valuation allowance 1 0 0
Other 26 (21) 10
Total income tax (recovery) expense $ (6,976) $ 628 $ 768
v3.24.0.1
Income taxes - Narrative (Details)
$ in Millions
 1 Months Ended 3 Months Ended 12 Months Ended
Dec. 31, 2023
CAD ($)
Sep. 30, 2023
CAD ($)
Sep. 30, 2023
CAD ($)
Apr. 13, 2023
CAD ($)
Apr. 13, 2023
USD ($)
Dec. 31, 2022
CAD ($)
Dec. 31, 2019
CAD ($)
Dec. 31, 2023
CAD ($)
Dec. 31, 2022
CAD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2021
CAD ($)
Dec. 31, 2021
USD ($)
Dec. 14, 2021
CAD ($)
Dec. 14, 2021
USD ($)
Income Tax Examination [Line Items]                            
Deferred tax recovery, Kansas City Southern outside basis difference       $ 23,000,000 $ 17       $ 19,000,000 $ 15 $ 33,000,000 $ 26    
Derecognition of deferred tax liability               $ 7,832,000,000            
Deferred revaluation recovery amount due to change in tax rate               13,000,000 12,000,000          
Deferred tax liability, outside basis difference $ 0         $ 7,526,000,000   0 7,526,000,000   7,079,000,000   $ 7,178,000,000 $ 5,607
Income tax operating losses carried forward 52,000,000         22,000,000   52,000,000 22,000,000          
Capital losses carried forward 2,000,000         2,000,000   2,000,000 2,000,000          
Unrecognized tax benefits from capital losses 4,000,000             4,000,000            
Unrecognized tax benefits that would impact effective tax rate 17,000,000             17,000,000            
Tax benefits related to prior years             $ 24,000,000 10,000,000 0   0      
Deferred tax expense (recovery), reversal of uncertain tax position           24,000,000                
Interest and penalties accrual (recovery)               (3,000,000) 5,000,000   4,000,000      
Accrued interest and penalties associated with unrecognized tax benefits 15,000,000         $ 18,000,000   15,000,000 18,000,000   13,000,000      
Settlement of Mexican tax audits (Note 6)               135,000,000 $ 0   $ 0      
Mexican Tax Authority                            
Income Tax Examination [Line Items]                            
Settlement of Mexican tax audits (Note 6)     $ 135,000,000                      
Increase (decrease) In value added tax receivable 9,000,000   16,000,000         25,000,000            
Income tax expense, reserve for future audit settlements               3,000,000            
Refundable value added tax 0     $ 55,000,000       0            
Mexican Tax Authority | Tax Years 2021 to 2022                            
Income Tax Examination [Line Items]                            
Tax adjustments, settlements, and unusual provisions $ 3,000,000                          
Mexican Tax Authority | Tax Years 2016 to 2020                            
Income Tax Examination [Line Items]                            
Tax adjustments, settlements, and unusual provisions     $ 13,000,000                      
Mexican Tax Authority | Tax Years Through 2020 Excluding 2014                            
Income Tax Examination [Line Items]                            
Goodwill, period increase (decrease)               $ 96,000,000            
Mexican Tax Authority | Tax Years 2009, 2010, 2013, 2015 to 2022 for Corporate Income Tax and VAT                            
Income Tax Examination [Line Items]                            
Goodwill, period increase (decrease)   $ 90,000,000                        
v3.24.0.1
Income taxes - Reconciliation of Uncertain Tax Positions Related to Unrecognized Tax Benefits (Details) - CAD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2019
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Reconciliation of Uncertain Tax Positions to Unrecognized Tax Benefits [Roll Forward]        
Unrecognized tax benefits at January 1   $ 20 $ 49 $ 55
Tax benefits related to the current year   2 1 0
Tax benefits related to prior years $ 24 10 0 0
Tax benefits acquired with KCS   2 0 0
Gross uncertain tax benefits related to prior years   (6) (30) (6)
Settlements with taxing authorities   (6) 0 0
Unrecognized tax benefits at December 31   $ 22 $ 20 $ 49
v3.24.0.1
Earnings per share - Number of Shares Used in the Earnings Per Share Calculations (Details) - CAD ($)
$ / shares in Units, shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Earnings Per Share [Abstract]      
Net income $ 3,927 $ 3,517 $ 2,852
Weighted-average basic shares outstanding (in shares) 931.3 930.0 679.7
Dilutive effect of stock options (in shares) 2.4 2.9 3.1
Weighted-average diluted shares outstanding (in shares) 933.7 932.9 682.8
Earnings per share – basic (cad per share) $ 4.22 $ 3.78 $ 4.20
Earnings per share – diluted (cad per share) $ 4.21 $ 3.77 $ 4.18
v3.24.0.1
Earnings per share - Narrative (Details) - shares
shares in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Stock Option Plan      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Number of options excluded from the computation of diluted earnings per share (in shares) 0.6 0.3 0.1
v3.24.0.1
Other comprehensive (loss) income and accumulated other comprehensive (loss) income - Components of Other Comprehensive Income (Loss) and Related Tax Effects (Details) - CAD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Before tax amount $ (705) $ 2,309 $ 1,052
Income tax (expense) recovery (4) (115) (341)
Net of tax amount (709) 2,194 711
Realized loss on derivatives designated as cash flow hedges recognized in income      
Net of tax amount (32) 44  
Unrealized Gain on Cash Flow Hedges [Abstract]      
Net of tax amount (741) 2,238  
Translation of the net investment in U.S. subsidiaries and equity method investees      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Before tax amount (840) 2,099 (316)
Income tax (expense) recovery 0 0 0
Net of tax amount (840) 2,099 (316)
Translation of the U.S. dollar-denominated long-term debt designated as a hedge of the net investment in U.S. subsidiaries and equity method investees (Note 18)      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Before tax amount 194 (471) 25
Income tax (expense) recovery (22) 59 (3)
Net of tax amount 172 (412) 22
Derivatives      
Realized loss on derivatives designated as cash flow hedges recognized in income      
Before tax amount 7 6 10
Income tax (expense) recovery (2) (2) (3)
Net of tax amount 5 4 7
Unrealized Gain on Cash Flow Hedges [Abstract]      
Before tax amount     38
Income tax (expense) recovery     (9)
Net of tax amount     29
Change in pension and other benefits actuarial gains and losses      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Before tax amount (57) 706 1,286
Income tax (expense) recovery 16 (182) (323)
Net of tax amount (41) 524 963
Change in prior service pension and other benefit costs      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Before tax amount (16) (26)  
Income tax (expense) recovery 4 7  
Net of tax amount (12) (19)  
Equity accounted investments      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Before tax amount 7 (5) 9
Income tax (expense) recovery 0 3 (3)
Net of tax amount $ 7 $ (2) $ 6
v3.24.0.1
Other comprehensive (loss) income and accumulated other comprehensive (loss) income - Changes in Accumulated Other Comprehensive Loss by Component (Details) - CAD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance $ 38,886    
Other comprehensive (loss) income before reclassifications (741) $ 2,238  
Amounts reclassified from AOCI 32 (44)  
Net other comprehensive (loss) income (709) 2,194 $ 711
Ending balance 41,492 38,886  
Accumulated other comprehensive (loss) income      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance 91 (2,103)  
Ending balance (618) 91 (2,103)
Foreign currency net of hedging activities      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance 1,505 (182)  
Other comprehensive (loss) income before reclassifications (668) 1,687  
Amounts reclassified from AOCI 0 0  
Net other comprehensive (loss) income (668) 1,687  
Ending balance 837 1,505 (182)
Derivatives      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance 0 (4)  
Other comprehensive (loss) income before reclassifications 0 0  
Amounts reclassified from AOCI 5 4  
Net other comprehensive (loss) income 5 4  
Ending balance 5 0 (4)
Pension and post- retirement defined benefit plans      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance (1,410) (1,915)  
Other comprehensive (loss) income before reclassifications (79) 387  
Amounts reclassified from AOCI 26 118  
Net other comprehensive (loss) income (53) 505  
Ending balance (1,463) (1,410) (1,915)
Equity accounted investments      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance (4) (2)  
Other comprehensive (loss) income before reclassifications 6 164  
Amounts reclassified from AOCI 1 (166)  
Net other comprehensive (loss) income 7 (2)  
Ending balance $ 3 $ (4) $ (2)
v3.24.0.1
Accounts receivable, net (Details) - CAD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total accounts receivable $ 1,976 $ 1,057
Allowance for credit losses (89) (41)
Total accounts receivable, net 1,887 1,016
Freight    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total accounts receivable 1,559 785
Allowance for credit losses (63) (27)
Total accounts receivable, net 1,496 758
Non-freight    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total accounts receivable 417 272
Allowance for credit losses (26) (14)
Total accounts receivable, net $ 391 $ 258
v3.24.0.1
Property sale (Details) - CAD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Mar. 31, 2021
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Discontinued Operations and Disposal Groups [Abstract]        
Consideration received, property $ 33      
Consideration received, permanent easement assets 9      
Cash proceeds from sale of assets       $ 61
Gain on sale of assets 50      
Deferred gain on sale of assets $ 53      
Recognition of deferred gain   $ 14 $ 14 $ 13
v3.24.0.1
Business acquisition - Narrative (Details)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended 9 Months Ended 12 Months Ended
Dec. 31, 2023
CAD ($)
Apr. 14, 2023
CAD ($)
Apr. 13, 2023
CAD ($)
Dec. 14, 2021
CAD ($)
shares
Dec. 14, 2021
USD ($)
$ / shares
shares
Sep. 15, 2021
CAD ($)
Sep. 15, 2021
USD ($)
May 21, 2021
CAD ($)
May 21, 2021
USD ($)
Apr. 13, 2023
CAD ($)
Dec. 31, 2023
CAD ($)
Dec. 31, 2023
CAD ($)
Dec. 31, 2022
CAD ($)
Dec. 31, 2021
CAD ($)
Aug. 10, 2021
Business Acquisition [Line Items]                              
Merger termination fee (Note 11)                       $ 0 $ 0 $ (845,000,000)  
Amount remitted                       0 0 12,299,000,000  
Shares issued for Kansas City Southern acquisition (Note 21)                         (2,000,000) 23,456,000,000  
Rail investments accounted for on an equity basis $ 0   $ 44,402,000,000             $ 44,402,000,000 $ 0 0 45,091,000,000    
Remeasurement loss of Kansas City Southern (Note 11)                       7,175,000,000 0 0  
Deferred income tax (recovery) expense (Note 6)                       7,885,000,000 (136,000,000) (242,000,000)  
Goodwill (Note 11, 14) 17,729,000,000                   17,729,000,000 17,729,000,000 344,000,000 328,000,000  
Goodwill, expected tax deductible amount 0                   0 0      
Revenue of acquiree since acquisition date, actual                       1,351,000,000 4,390,000,000    
KCS historical, net income attributable to controlling shareholders                       280,000,000 1,287,000,000    
Equity loss of Kansas City Southern                   230,000,000   230,000,000 1,074,000,000 (141,000,000)  
Acquisition-related costs (Note 11)                       190,000,000      
Acquisition-related financing fees (Note 11)                       17,000,000 0 51,000,000  
Equity loss of Kansas City Southern                              
Business Acquisition [Line Items]                              
Equity loss of Kansas City Southern                   230,000,000     1,074,000,000    
Share capital                              
Business Acquisition [Line Items]                              
Shares issued for Kansas City Southern acquisition (Note 21)                           23,461,000,000  
Other expense (income)                              
Business Acquisition [Line Items]                              
Acquisition-related costs (Note 11)                       6,000,000      
Kansas City Southern                              
Business Acquisition [Line Items]                              
Amount remitted           $ 1,773,000,000 $ 1,400                
Kansas City Southern                              
Business Acquisition [Line Items]                              
Merger termination fee (Note 11)               $ 845,000,000 $ (700)            
Percentage ownership acquired       100.00% 100.00%                    
Stock issued (in shares) | shares       262.6 262.6                    
Exchange ratio                             2.884
Shares issued for Kansas City Southern acquisition (Note 21)       $ 23,461,000,000 $ 18,282                    
Cash consideration       10,526,000,000 8,203                    
Total consideration       $ 35,760,000,000 $ 27,885                    
Fair value of previously held equity method investment 37,227,000,000 $ 37,227,000,000                          
Remeasurement loss of Kansas City Southern (Note 11)     7,175,000,000                        
Deferred income tax (recovery) expense (Note 6)     7,832,000,000                 69,000,000      
Cash and cash equivalents 298,000,000 298,000,000                 298,000,000 298,000,000      
Accounts receivable, net   704,000,000                          
Accounts payable acquired   970,000,000                          
Intangible assets 3,022,000,000 3,022,000,000                 3,022,000,000 3,022,000,000      
Goodwill (Note 11, 14) 17,565,000,000 17,491,000,000 $ 17,565,000,000             $ 17,565,000,000 17,565,000,000 17,565,000,000      
Revenue of acquiree since acquisition date, actual                     3,467,000,000        
KCS historical, net income attributable to controlling shareholders                     682,000,000 (297,000,000)      
Acquisition-related costs (Note 11)                           599,000,000  
Interest rate hedge, unwinding                         212,000,000    
Purchase accounting net income, after deferred tax recovery                       (228,000,000)      
Net working capital $ (59,000,000) 51,000,000                 $ (59,000,000) (59,000,000)      
Kansas City Southern | Concession land rights                              
Business Acquisition [Line Items]                              
Property, plant and equipment, useful life     50 years             50 years          
Kansas City Southern | Environmental Liabilities                              
Business Acquisition [Line Items]                              
Liabilities arising from contingencies   132,000,000                          
Net working capital   15,000,000                          
Kansas City Southern | Litigation and Personal Injury Claims                              
Business Acquisition [Line Items]                              
Liabilities arising from contingencies   40,000,000                          
Net working capital   28,000,000                          
Kansas City Southern | Concession Rights                              
Business Acquisition [Line Items]                              
Intangible assets   $ 9,176,000,000                          
Acquired finite-lived intangible assets, weighted average useful life   74 years                          
Kansas City Southern | Contracts and Customer Relationships                              
Business Acquisition [Line Items]                              
Intangible assets   $ 3,022,000,000                          
Kansas City Southern | Contracts and Customer Relationships | Minimum                              
Business Acquisition [Line Items]                              
Acquired finite-lived intangible assets, weighted average useful life   9 years                          
Kansas City Southern | Contracts and Customer Relationships | Maximum                              
Business Acquisition [Line Items]                              
Acquired finite-lived intangible assets, weighted average useful life   22 years                          
Kansas City Southern | Share capital                              
Business Acquisition [Line Items]                              
Consideration transferred, per share (in CAD or USD per share) | $ / shares         $ 90                    
Kansas City Southern | Preferred stock                              
Business Acquisition [Line Items]                              
Consideration transferred, per share (in CAD or USD per share) | $ / shares         $ 37.50                    
Kansas City Southern | Purchased services and other                              
Business Acquisition [Line Items]                              
Acquisition-related costs (Note 11)                         74,000,000 183,000,000  
Kansas City Southern | Other expense (income)                              
Business Acquisition [Line Items]                              
KCS historical, net income attributable to controlling shareholders                       (2,000,000)      
Acquisition-related costs (Note 11)                           247,000,000  
Kansas City Southern | Equity loss of Kansas City Southern                              
Business Acquisition [Line Items]                              
KCS historical, net income attributable to controlling shareholders                       (48,000,000) 163,000,000    
Acquisition-related costs (Note 11)                   $ 11,000,000     $ 49,000,000 $ 169,000,000  
Kansas City Southern | Compensation and benefits                              
Business Acquisition [Line Items]                              
Acquisition-related costs (Note 11)                       71,000,000      
Kansas City Southern | Purchased services and other                              
Business Acquisition [Line Items]                              
KCS historical, net income attributable to controlling shareholders                       (1,000,000)      
Acquisition-related costs (Note 11)                       111,000,000      
Kansas City Southern | Cost, direct material                              
Business Acquisition [Line Items]                              
Acquisition-related costs (Note 11)                       2,000,000      
Kansas City Southern | Depreciation, Depletion and Amortization                              
Business Acquisition [Line Items]                              
KCS historical, net income attributable to controlling shareholders                       (234,000,000)      
Kansas City Southern | Interest Revenue (Expense), Net                              
Business Acquisition [Line Items]                              
KCS historical, net income attributable to controlling shareholders                       (17,000,000)      
Kansas City Southern | Net Income (Loss) Attributable to Noncontrolling Interest                              
Business Acquisition [Line Items]                              
KCS historical, net income attributable to controlling shareholders                       $ 5,000,000      
v3.24.0.1
Business acquisition - Schedule of Allocation of Net Assets and Consideration Paid (Details) - CAD ($)
$ in Millions
 9 Months Ended
Dec. 31, 2023
Apr. 14, 2023
Dec. 31, 2023
Apr. 13, 2023
Dec. 31, 2022
Dec. 31, 2021
Business Acquisition [Line Items]            
Goodwill $ 17,729   $ 17,729   $ 344 $ 328
Kansas City Southern            
Business Acquisition [Line Items]            
Cash and cash equivalents 298 $ 298 298      
Net working capital (59) 51 (59)      
Properties 28,749 28,748 28,749      
Intangible assets 3,022 3,022 3,022      
Other long-term assets 491 496 491      
Debt including debt maturing within one year (4,545) (4,545) (4,545)      
Deferred income taxes (6,942) (6,984) (6,942)      
Other long-term liabilities (408) (406) (408)      
Total identifiable net assets 20,606 20,680 20,606      
Goodwill 17,565 17,491 17,565 $ 17,565    
Total identifiable net assets and goodwill 38,171 38,171 38,171      
Fair value of previously held equity method investment 37,227 37,227        
Intercompany payable balance, net acquired 12 12 12      
Fair value of non-controlling interest 932 932 932      
Total $ 38,171 $ 38,171        
Measurement period adjustments            
Cash and cash equivalents     0      
Net working capital     (110)      
Properties     1      
Intangible assets     0      
Other long-term assets     (5)      
Debt including debt maturing within one year     0      
Deferred income taxes     42      
Other long-term liabilities     (2)      
Total identifiable net assets     (74)      
Goodwill     74      
Total net identifiable net assets and goodwill     0      
Fair value of previously held equity method investment     0      
Intercompany payable balance, net acquired     0      
Fair value of non-controlling interest     0      
Total     $ 0      
v3.24.0.1
Business acquisition - Pro Forma Information (Details)
$ in Millions
 1 Months Ended 3 Months Ended 12 Months Ended
Dec. 31, 2021
Apr. 13, 2023
Dec. 31, 2023
CAD ($)
Dec. 31, 2022
CAD ($)
Business Acquisition [Line Items]        
KCS historical, revenue     $ 1,351 $ 4,390
Pro forma CPKC, revenue     13,909 13,217
KCS historical, net income attributable to controlling shareholders     280 1,287
Pro forma, net income attributable to controlling shareholders     $ 3,174 $ 4,153
Canada, Dollars        
Business Acquisition [Line Items]        
Daily exchange rate used, revenue 1.28 1.35   1.30
v3.24.0.1
Investment in Kansas City Southern - Narrative (Details) - CAD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Apr. 13, 2023
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 14, 2021
Schedule of Equity Method Investments [Line Items]          
Basis difference         $ 30,000
Equity (earnings) loss of Kansas City Southern (Note 11, 12) $ (230) $ (230) $ (1,074) $ 141  
Dividends from Kansas City Southern (Note 12) 300 $ 300 1,157 $ 0  
Kansas City Southern          
Schedule of Equity Method Investments [Line Items]          
Interest rate hedge, unwinding     212    
Kansas City Southern          
Schedule of Equity Method Investments [Line Items]          
Equity method investment, foreign currency translation gain (loss) 578   2,891    
Equity method investment, amortization of difference between carrying amount and underlying equity $ 48   $ 163    
v3.24.0.1
Investment in Kansas City Southern - Summarized Financial Information, Statement of Income (Details)
$ in Millions
 1 Months Ended 3 Months Ended 12 Months Ended
Dec. 31, 2021
CAD ($)
Apr. 13, 2023
CAD ($)
Dec. 31, 2023
CAD ($)
Dec. 31, 2022
CAD ($)
Dec. 31, 2021
CAD ($)
Schedule of Equity Method Investments [Line Items]          
Total revenues     $ 12,555 $ 8,814 $ 7,995
Total operating expenses     8,167 5,485 4,789
Operating income     4,388 3,329 3,206
Less: Other     52 17 237
(Loss) income before income tax (recovery) expense     (3,053) 4,145 3,620
Net income (loss)     $ 3,927 $ 3,517 $ 2,852
Canada, Dollars          
Schedule of Equity Method Investments [Line Items]          
Daily exchange rate used, revenue 1.28 1.35   1.30  
Kansas City Southern          
Schedule of Equity Method Investments [Line Items]          
Total revenues $ 178 $ 1,351   $ 4,390  
Total operating expenses 287 888   2,794  
Operating income (109) 463   1,596  
Less: Other 12 83   (119)  
(Loss) income before income tax (recovery) expense (121) 380   1,715  
Net income (loss) $ (106) $ 280   $ 1,287  
v3.24.0.1
Investment in Kansas City Southern - Summarized Financial Information, Balance Sheet (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2022
CAD ($)
Dec. 31, 2023
CAD ($)
Assets    
Current assets $ 1,889 $ 3,002
Properties 22,385 51,744
Other non-current assets 420 582
Liabilities    
Current liabilities 3,213 5,710
Other non-current liabilities 520 797
Non-controlling interest (Note 11) $ 0 $ 919
Canada, Dollars    
Liabilities    
Daily exchange rate used, assets/liabilities 1.35  
Kansas City Southern    
Assets    
Current assets $ 1,441  
Properties 12,680  
Other non-current assets 340  
Liabilities    
Current liabilities 1,748  
Long-term debt 4,232  
Other non-current liabilities 1,987  
Non-controlling interest (Note 11) $ 448  
v3.24.0.1
Properties - Net Properties (Details) - CAD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Property, Plant and Equipment [Line Items]    
Cost $ 61,785 $ 31,680
Accumulated depreciation 10,041 9,295
Net book value 51,744 22,385
Properties $ 51,744 22,385
Track and roadway    
Property, Plant and Equipment [Line Items]    
Weighted-average annual depreciation rate 2.80%  
Cost $ 42,597 21,524
Accumulated depreciation 6,811 6,308
Net book value $ 35,786 15,216
Rolling stock    
Property, Plant and Equipment [Line Items]    
Weighted-average annual depreciation rate 3.00%  
Cost $ 1,732 1,069
Accumulated depreciation 281 254
Net book value 1,451 815
Land    
Property, Plant and Equipment [Line Items]    
Cost 3,487 964
Accumulated depreciation 0 0
Net book value $ 3,487 964
Buildings    
Property, Plant and Equipment [Line Items]    
Weighted-average annual depreciation rate 3.60%  
Cost $ 8,125 5,085
Accumulated depreciation 1,629 1,523
Net book value $ 6,496 3,562
Concession land rights    
Property, Plant and Equipment [Line Items]    
Weighted-average annual depreciation rate 1.40%  
Cost $ 1,779 0
Accumulated depreciation 17 0
Net book value $ 1,762 0
Other    
Property, Plant and Equipment [Line Items]    
Weighted-average annual depreciation rate 6.70%  
Cost $ 4,065 3,038
Accumulated depreciation 1,303 1,210
Net book value 2,762 $ 1,828
Concessions    
Property, Plant and Equipment [Line Items]    
Cost 9,206  
Accumulated depreciation 127  
Net book value 9,079  
Track and roadway    
Property, Plant and Equipment [Line Items]    
Cost 7,056  
Accumulated depreciation 99  
Net book value 6,957  
Concession land rights    
Property, Plant and Equipment [Line Items]    
Cost 1,779  
Accumulated depreciation 17  
Net book value 1,762  
Buildings    
Property, Plant and Equipment [Line Items]    
Cost 230  
Accumulated depreciation 7  
Net book value 223  
Other    
Property, Plant and Equipment [Line Items]    
Cost 141  
Accumulated depreciation 4  
Net book value $ 137  
v3.24.0.1
Properties - Narrative (Details) - CAD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Property, Plant and Equipment [Abstract]    
Government assistance, amount $ 25 $ 32
Properties 51,744 22,385
Government assistance, unamortized amount 272 285
Amortization expense related to government assistance $ 11 $ 11
Government Assistance, Statement of Income or Comprehensive Income [Extensible Enumeration] Properties Properties
v3.24.0.1
Properties - Capital Leases Included in Properties (Details) - CAD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Finance Leased Assets [Line Items]    
Cost $ 196 $ 180
Accumulated depreciation 85 78
Net book value 111 102
Rolling stock    
Finance Leased Assets [Line Items]    
Cost 182 170
Accumulated depreciation 79 75
Net book value 103 95
Other    
Finance Leased Assets [Line Items]    
Cost 14 10
Accumulated depreciation 6 3
Net book value $ 8 $ 7
v3.24.0.1
Goodwill (Details) - CAD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Goodwill    
Opening balance $ 344 $ 328
Foreign exchange impact (180) 16
Addition (Note 11) 17,565  
Ending balance $ 17,729 $ 344
v3.24.0.1
Intangible assets - Schedule of Finite-Lived Intangible Assets (Details) - CAD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Cost    
Beginning balance $ 66 $ 64
Additions (Note 11) 3,022  
Foreign exchange impact (27) 2
Ending balance 3,061 66
Accumulated amortization    
Beginning balance (24) (21)
Amortization (61) (3)
Foreign exchange impact (2) 0
Ending balance (87) (24)
Net carrying amount    
Beginning balance 42 43
Additions (Note 11) 3,022  
Amortization (61) (3)
Foreign exchange impact (29) 2
Ending balance 2,974 42
Indefinite-lived intangible assets $ 1,798 $ 9
v3.24.0.1
Intangible assets - Future Amortization Expense (Details)
$ in Millions
Dec. 31, 2023
CAD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
2024 $ 85
2025 85
2026 85
2027 85
2028 85
2029 and thereafter 751
Total $ 1,176
v3.24.0.1
Accounts payable and accrued liabilities (Details) - CAD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Payables and Accruals [Abstract]    
Trade payables $ 680 $ 503
Accrued charges 667 284
Income and other taxes payable 255 177
Dividends payable 177 177
Accrued interest 162 143
Stock-based compensation liabilities 50 84
Payroll-related accruals 115 79
Operating lease liabilities (Note 20) 102 68
Accrued vacation 99 62
Personal injury and other claims provision 81 53
Financial derivative liability (Note 18) 60 0
Other 119 73
Total accounts payable and accrued liabilities $ 2,567 $ 1,703
v3.24.0.1
Debt - Components of Long-term Debt (Details) - CAD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Debt Instrument [Line Items]    
Long-term debt, including unamortized fees $ 22,598 $ 19,771
Long-term debt and finance lease obligation, excluding perpetual debt 22,552 19,724
Unamortized fees on long-term debt (104) (120)
Long-term debt, including current debt 22,494 19,651
Long-term debt maturing within one year (Note 17, 18, 20) 3,143 1,510
Long-term debt $ 19,351 18,141
4.450% 12.5-year Notes    
Debt Instrument [Line Items]    
Interest rate 4.45%  
Debt term 12 years 6 months  
Long-term debt, including unamortized fees $ 0 474
1.589% 2-year Notes    
Debt Instrument [Line Items]    
Interest rate 1.589%  
Debt term 2 years  
Long-term debt, including unamortized fees $ 0 1,000
1.350% 3-year Notes    
Debt Instrument [Line Items]    
Interest rate 1.35%  
Debt term 3 years  
Long-term debt, including unamortized fees $ 1,983 2,030
2.900% 10-year Notes    
Debt Instrument [Line Items]    
Interest rate 2.90%  
Debt term 10 years  
Long-term debt, including unamortized fees $ 926 948
3.700% 10.5-year Notes    
Debt Instrument [Line Items]    
Interest rate 3.70%  
Debt term 10 years 6 months  
Long-term debt, including unamortized fees $ 330 338
1.750% 5-year Notes    
Debt Instrument [Line Items]    
Interest rate 1.75%  
Debt term 5 years  
Long-term debt, including unamortized fees $ 1,321 1,353
2.540% 6.3-year Notes    
Debt Instrument [Line Items]    
Interest rate 2.54%  
Debt term 6 years 3 months 18 days  
Long-term debt, including unamortized fees $ 1,200 1,200
4.000% 10-year Notes    
Debt Instrument [Line Items]    
Interest rate 4.00%  
Debt term 10 years  
Long-term debt, including unamortized fees $ 661 677
3.150% 10-year Notes    
Debt Instrument [Line Items]    
Interest rate 3.15%  
Debt term 10 years  
Long-term debt, including unamortized fees $ 400 399
2.050% 10-year Notes    
Debt Instrument [Line Items]    
Interest rate 2.05%  
Debt term 10 years  
Long-term debt, including unamortized fees $ 660 676
7.125% 30-year Debentures    
Debt Instrument [Line Items]    
Interest rate 7.125%  
Debt term 30 years  
Long-term debt, including unamortized fees $ 463 474
2.450% 10-year Notes    
Debt Instrument [Line Items]    
Interest rate 2.45%  
Debt term 10 years  
Long-term debt, including unamortized fees $ 1,851 1,896
5.750% 30-year Debentures    
Debt Instrument [Line Items]    
Interest rate 5.75%  
Debt term 30 years  
Long-term debt, including unamortized fees $ 326 333
4.800% 20-year Notes    
Debt Instrument [Line Items]    
Interest rate 4.80%  
Debt term 20 years  
Long-term debt, including unamortized fees $ 396 405
5.950% 30-year Notes    
Debt Instrument [Line Items]    
Interest rate 5.95%  
Debt term 30 years  
Long-term debt, including unamortized fees $ 590 603
6.450% 30-year Notes    
Debt Instrument [Line Items]    
Interest rate 6.45%  
Debt term 30 years  
Long-term debt, including unamortized fees $ 400 400
3.000% 20-year Notes    
Debt Instrument [Line Items]    
Interest rate 3.00%  
Debt term 20 years  
Long-term debt, including unamortized fees $ 1,317 1,348
5.750% 30-year Notes    
Debt Instrument [Line Items]    
Interest rate 5.75%  
Debt term 30 years  
Long-term debt, including unamortized fees $ 326 334
4.800% 30-year Notes    
Debt Instrument [Line Items]    
Interest rate 4.80%  
Debt term 30 years  
Long-term debt, including unamortized fees $ 725 743
3.050% 30-year Notes    
Debt Instrument [Line Items]    
Interest rate 3.05%  
Debt term 30 years  
Long-term debt, including unamortized fees $ 298 298
3.100% 30-year Notes    
Debt Instrument [Line Items]    
Interest rate 3.10%  
Debt term 30 years  
Long-term debt, including unamortized fees $ 2,365 2,422
6.125% 100-year Notes    
Debt Instrument [Line Items]    
Interest rate 6.125%  
Debt term 100 years  
Long-term debt, including unamortized fees $ 1,190 1,219
3.125% 10.1-year Notes    
Debt Instrument [Line Items]    
Interest rate 3.125%  
Debt term 10 years  
Long-term debt, including unamortized fees $ 291 0
2.875% 10-year Notes    
Debt Instrument [Line Items]    
Interest rate 2.875%  
Debt term 10 years  
Long-term debt, including unamortized fees $ 499 0
4.300% 30.1-year Notes    
Debt Instrument [Line Items]    
Interest rate 4.30%  
Debt term 30 years  
Long-term debt, including unamortized fees $ 515 0
4.950% 30.1-year Notes    
Debt Instrument [Line Items]    
Interest rate 4.95%  
Debt term 30 years  
Long-term debt, including unamortized fees $ 574 0
4.700% 30-year Notes    
Debt Instrument [Line Items]    
Interest rate 4.70%  
Debt term 30 years  
Long-term debt, including unamortized fees $ 599 0
3.500% 30-year Notes    
Debt Instrument [Line Items]    
Interest rate 3.50%  
Debt term 30 years  
Long-term debt, including unamortized fees $ 540 0
4.200% 50-year Notes    
Debt Instrument [Line Items]    
Interest rate 4.20%  
Debt term 50 years  
Long-term debt, including unamortized fees $ 444 0
2.875% - 7.000% Other Senior Notes Due 2069    
Debt Instrument [Line Items]    
Long-term debt, including unamortized fees $ 104 0
2.875% - 7.000% Other Senior Notes Due 2069 | Minimum    
Debt Instrument [Line Items]    
Interest rate 2.875%  
2.875% - 7.000% Other Senior Notes Due 2069 | Maximum    
Debt Instrument [Line Items]    
Interest rate 7.00%  
5.41% Senior Secured Notes    
Debt Instrument [Line Items]    
Interest rate 5.41%  
Long-term debt, including unamortized fees $ 64 76
6.91% Secured Equipment Notes    
Debt Instrument [Line Items]    
Interest rate 6.91%  
Long-term debt, including unamortized fees $ 21 40
2.96% - 4.29% RRIF Loans    
Debt Instrument [Line Items]    
Long-term debt, including unamortized fees $ 70 0
2.96% - 4.29% RRIF Loans | Minimum    
Debt Instrument [Line Items]    
Interest rate 2.96%  
2.96% - 4.29% RRIF Loans | Maximum    
Debt Instrument [Line Items]    
Interest rate 4.29%  
1.99-4.13% Finance Leases    
Debt Instrument [Line Items]    
Long-term debt, including unamortized fees $ 8 2
2.32% Finance Lease    
Debt Instrument [Line Items]    
Interest rate 2.32%  
Long-term debt, including unamortized fees $ 8 0
6.57% Finance Lease    
Debt Instrument [Line Items]    
Interest rate 6.57%  
Long-term debt, including unamortized fees $ 22 29
12.77% Finance Lease    
Debt Instrument [Line Items]    
Interest rate 12.77%  
Long-term debt, including unamortized fees $ 3 3
1.93% Finance Lease    
Debt Instrument [Line Items]    
Interest rate 1.93%  
Long-term debt, including unamortized fees $ 4 4
Commercial Paper    
Debt Instrument [Line Items]    
Commercial Paper $ 1,058 0
Perpetual 4% Consolidated Debenture Stock (USD)    
Debt Instrument [Line Items]    
Interest rate 4.00%  
Long-term debt, including unamortized fees $ 40 41
Perpetual 4% Consolidated Debenture Stock (GBP)    
Debt Instrument [Line Items]    
Interest rate 4.00%  
Long-term debt, including unamortized fees $ 6 $ 6
v3.24.0.1
Debt - Narrative (Details)
 12 Months Ended
Nov. 15, 2023
USD ($)
May 15, 2023
USD ($)
Apr. 19, 2023
USD ($)
series
Dec. 31, 2023
USD ($)
Dec. 31, 2023
CAD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2022
CAD ($)
Dec. 31, 2021
CAD ($)
Dec. 31, 2023
CAD ($)
Jul. 12, 2023
USD ($)
Jul. 11, 2023
USD ($)
May 11, 2023
USD ($)
May 10, 2023
USD ($)
Apr. 24, 2023
USD ($)
series
Dec. 31, 2022
CAD ($)
Feb. 21, 2012
USD ($)
Dec. 31, 2011
locomotive
Jun. 28, 2005
USD ($)
Debt Instrument [Line Items]                                    
Long-term debt and finance lease obligation, Current and non-current                 $ 22,598,000,000           $ 19,771,000,000      
Annual maturities and principal repayments in 2024                 3,133,000,000                  
Annual maturities and principal repayments in 2025                 933,000,000                  
Annual maturities and principal repayments in 2026                 1,990,000,000                  
Annual maturities and principal repayments in 2027                 7,000,000                  
Annual maturities and principal repayments in 2028                 1,868,000,000                  
Annual maturities and principal repayments thereafter                 15,202,000,000                  
Number of series of notes | series     7                              
Acquisition-related costs (Note 11)         $ 190,000,000                          
Payments of merger related costs, financing activities         17,000,000                          
Net book value                 111,000,000           102,000,000      
Repayments of term loan         0   $ 636,000,000 $ 0                    
Number of series of notes maturing in 2023 | series                           2        
Investment in government securities (Note 17)       $ 198,000,000 267,000,000   0 0                    
Proceeds from settlement of government securities (Note 17)       200,000,000 274,000,000   0 0                    
Other Expense                                    
Debt Instrument [Line Items]                                    
Acquisition-related costs (Note 11)         6,000,000   0 $ 247,000,000                    
Payments of merger related costs, financing activities         $ 12,000,000                          
US Government Debt Securities                                    
Debt Instrument [Line Items]                                    
Debt securities                           $ 647,000,000        
Term Credit Facility                                    
Debt Instrument [Line Items]                                    
Repayments of term loan           $ 500,000,000 636,000,000                      
Letters of Credit                                    
Debt Instrument [Line Items]                                    
Maximum capacity under credit facility                 300,000,000                  
Letters of credit drawn                 93,000,000           75,000,000      
Commercial Paper | Commercial Paper Program                                    
Debt Instrument [Line Items]                                    
Credit facility, available amount                   $ 1,500,000,000 $ 1,000,000,000              
Line of credit, current       $ 800,000,000         $ 1,058,000,000           0      
Weighted-average interest rate       5.59%         5.59%                  
RRIF Loan                                    
Debt Instrument [Line Items]                                    
Interest rate                               2.96%    
Debt instrument, face amount                 $ 14,000,000                  
Number of locomotives purchased | locomotive                                 30  
RRIF Loan | Texas Mexican Railway                                    
Debt Instrument [Line Items]                                    
Interest rate                                   4.29%
Debt instrument, face amount                                   $ 50,000,000
RRIF Loan | Kansas City Southern                                    
Debt Instrument [Line Items]                                    
Debt instrument, face amount                               $ 55,000,000    
2.450% 10-year Notes                                    
Debt Instrument [Line Items]                                    
Long-term debt and finance lease obligation, Current and non-current                 $ 1,851,000,000           1,896,000,000      
Interest rate       2.45%         2.45%                  
Debt term       10 years 10 years                          
3.000% 20-year Notes                                    
Debt Instrument [Line Items]                                    
Long-term debt and finance lease obligation, Current and non-current                 $ 1,317,000,000           1,348,000,000      
Interest rate       3.00%         3.00%                  
Debt term       20 years 20 years                          
2.050% 10-year Notes                                    
Debt Instrument [Line Items]                                    
Long-term debt and finance lease obligation, Current and non-current                 $ 660,000,000           676,000,000      
Interest rate       2.05%         2.05%                  
Debt term       10 years 10 years                          
3.050% 30-year Notes                                    
Debt Instrument [Line Items]                                    
Long-term debt and finance lease obligation, Current and non-current                 $ 298,000,000           298,000,000      
Interest rate       3.05%         3.05%                  
Debt term       30 years 30 years                          
5.41% Senior Secured Notes                                    
Debt Instrument [Line Items]                                    
Long-term debt and finance lease obligation, Current and non-current                 $ 64,000,000           76,000,000      
Interest rate       5.41%         5.41%                  
Value of locomotive units used as collateral                 $ 76,000,000                  
6.91% Secured Equipment Notes                                    
Debt Instrument [Line Items]                                    
Long-term debt and finance lease obligation, Current and non-current                 $ 21,000,000           $ 40,000,000      
Interest rate       6.91%         6.91%                  
Value of locomotive units used as collateral                 $ 27,000,000                  
6.99 Finance Lease                                    
Debt Instrument [Line Items]                                    
Interest rate           6.99%                 6.99%      
Repayments of debt           $ 76,000,000 97,000,000                      
4.450% 12.5-year Notes                                    
Debt Instrument [Line Items]                                    
Long-term debt and finance lease obligation, Current and non-current                 $ 0           $ 474,000,000      
Interest rate       4.45%         4.45%                  
Debt term       12 years 6 months 12 years 6 months                          
4.450% 12.5-year Notes | Senior Notes                                    
Debt Instrument [Line Items]                                    
Extinguishment of debt, amount       $ 350,000,000 $ 479,000,000                          
Interest rate       4.45%         4.45%                  
Debt term       12 years 6 months 12 years 6 months                          
3.85% 10-year Senior Notes | Senior Notes                                    
Debt Instrument [Line Items]                                    
Extinguishment of debt, amount $ 199,000,000     $ 199,000,000 $ 272,000,000                          
Interest rate 3.85%     3.85%         3.85%                  
Debt term       10 years 10 years                          
3.00% 10-year Senior Notes | Senior Notes                                    
Debt Instrument [Line Items]                                    
Extinguishment of debt, amount   $ 439,000,000   $ 439,000,000 $ 592,000,000                          
Interest rate   3.00%   3.00%         3.00%                  
Debt term       10 years 10 years                          
1.589% 2-year Notes                                    
Debt Instrument [Line Items]                                    
Long-term debt and finance lease obligation, Current and non-current                 $ 0           $ 1,000,000,000      
Interest rate       1.589%         1.589%                  
Debt term       2 years 2 years                          
1.589% 2-year Notes | Senior Notes                                    
Debt Instrument [Line Items]                                    
Extinguishment of debt, amount         $ 1,000,000,000                          
Interest rate       1.589%         1.589%                  
Debt term       2 years 2 years                          
5.100% 10-year Medium Term Notes                                    
Debt Instrument [Line Items]                                    
Extinguishment of debt, amount             $ 125,000,000                      
Interest rate           5.10%                 5.10%      
Debt term           10 years 10 years                      
4.500% 10-year Notes                                    
Debt Instrument [Line Items]                                    
Extinguishment of debt, amount           $ 250,000,000 $ 313,000,000                      
Interest rate           4.50%                 4.50%      
Debt term           10 years 10 years                      
Senior Notes                                    
Debt Instrument [Line Items]                                    
Debt instrument, face amount     $ 3,014,000,000 $ 104,000,000                            
Cash consideration paid for debt exchange     1.00                              
Unamortized premium     30                              
Senior Notes | Debt Instrument, Redemption, Period One                                    
Debt Instrument [Line Items]                                    
Principal amount exchanged     1,000                              
Senior Notes | Debt Instrument, Redemption, Period Two                                    
Debt Instrument [Line Items]                                    
Principal amount exchanged     $ 970                              
The Facility | Revolving Credit Facility                                    
Debt Instrument [Line Items]                                    
Credit facility, available amount       $ 2,200,000,000                            
5-year Credit Facility | Revolving Credit Facility                                    
Debt Instrument [Line Items]                                    
Credit facility, available amount                       $ 1,100,000,000 $ 1,000,000,000          
5-year Credit Facility | Line of Credit | Revolving Credit Facility                                    
Debt Instrument [Line Items]                                    
Debt term       5 years 5 years                          
2-year Credit Facility | Revolving Credit Facility                                    
Debt Instrument [Line Items]                                    
Credit facility, available amount                       $ 1,100,000,000 $ 300,000,000          
2-year Credit Facility | Line of Credit | Revolving Credit Facility                                    
Debt Instrument [Line Items]                                    
Debt term       2 years 2 years                          
U.S dollar-denominated                                    
Debt Instrument [Line Items]                                    
Long-term debt and finance lease obligation, Current and non-current       $ 15,764,000,000   $ 12,161,000,000                        
v3.24.0.1
Financial instruments (Details)
$ in Millions
 3 Months Ended 6 Months Ended 9 Months Ended 12 Months Ended
Jan. 12, 2024
CAD ($)
May 21, 2021
CAD ($)
Dec. 31, 2021
CAD ($)
Mar. 31, 2021
CAD ($)
Jun. 30, 2021
USD ($)
Dec. 31, 2023
CAD ($)
Dec. 31, 2023
CAD ($)
Dec. 31, 2022
CAD ($)
Dec. 31, 2021
CAD ($)
Dec. 31, 2023
USD ($)
May 21, 2021
USD ($)
Schedule of Investments [Line Items]                      
Long-term debt, excluding commercial paper           $ 21,437,000,000 $ 21,437,000,000 $ 19,651,000,000      
Long-term debt, fair value           $ 20,550,000,000 20,550,000,000 17,720,000,000      
FX Forward Contracts                      
Schedule of Investments [Line Items]                      
Gain (loss) on derivative             0 0 $ (13,000,000)    
Derivative notional amount     $ 1,000,000,000           1,000,000,000    
Treasury Rate Locks | Net Interest Expense                      
Schedule of Investments [Line Items]                      
Derivative losses amortized to net interest expense             $ 7,000,000 6,000,000 10,000,000    
Foreign Exchange Contract                      
Schedule of Investments [Line Items]                      
Derivative notional amount                   $ 215  
Derivative, average forward exchange rate           20.61 20.61     20.61  
Derivative, loss on derivative           $ 39,000,000          
Derivative fair value           60,000,000 $ 60,000,000        
Foreign Exchange Contract | 2021 NCIB Program Announcement                      
Schedule of Investments [Line Items]                      
Payments for settlement of derivative $ 65,000,000                    
Forward starting swaps                      
Schedule of Investments [Line Items]                      
Gain (loss) on derivative   $ 251,000,000             (94,000,000)    
Derivative notional amount         $ 2,400 1,396,000,000 1,396,000,000 1,745,000,000     $ 2,400
Derivative fair value           $ 116,000,000 116,000,000 (81,000,000)      
Derivative term         30 years            
AOCI, cash flow hedge, cumulative gain (loss), after tax   73,000,000 (21,000,000)           (21,000,000)    
Derivative, gain (loss), settlement     230,000,000                
Bond locks                      
Schedule of Investments [Line Items]                      
Gain (loss) on derivative                 10,000,000    
Derivative notional amount   600,000,000   $ 600,000,000              
Derivative term       7 years              
AOCI, cash flow hedge, cumulative gain (loss), after tax   $ 2,000,000 (17,000,000)           (17,000,000)    
Derivative, gain (loss), settlement     $ (7,000,000)                
Gain (loss) on derivative, net, subsequent to re-designation                 19,000,000    
Net Investment Hedge                      
Schedule of Investments [Line Items]                      
Gain (loss) on derivative             $ (194,000,000) $ 471,000,000 $ (25,000,000)    
v3.24.0.1
Other long-term liabilities - Schedule of Other Long-Term Liabilities (Details) - CAD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2023
Other Liabilities Disclosure [Abstract]    
Operating lease liabilities, net of current portion (Note 20) $ 202 $ 242
Provision for environmental remediation, net of current portion 71 200
Stock-based compensation liabilities, net of current portion 125 161
Deferred revenue, net of current portion (Note 4) 39 16
Deferred lease and license revenue, net of current portion 15 68
Other, net of current portion 68 110
Total other long-term liabilities 520 797
Aggregate provision for environmental remediation, including current portion $ 83 $ 220
Environmental Loss Contingency Statement Of Financial Position Extensible Enumeration Not Disclosed Flag environmental remediation  
v3.24.0.1
Other long-term liabilities - Narrative (Details) - CAD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Other Liabilities Disclosure [Abstract]      
Expected time period for payment of provision for environmental remediation 10 years    
Environmental remediation costs charged to income $ 8 $ 8 $ 10
v3.24.0.1
Leases - Narrative (Details)
$ in Millions
Dec. 31, 2023
CAD ($)
Lessee, Lease, Description [Line Items]  
Residual value guarantee $ 1
Minimum  
Lessee, Lease, Description [Line Items]  
Remaining lease terms 1 year
Maximum  
Lessee, Lease, Description [Line Items]  
Remaining lease terms 17 years
v3.24.0.1
Leases - Components of Lease Expense (Details) - CAD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Leases [Abstract]      
Operating lease cost $ 94 $ 77 $ 74
Short-term lease cost 29 17 16
Variable lease cost 10 9 5
Sublease income (1) (2) (3)
Finance lease cost      
Amortization of ROU assets 10 6 10
Interest on lease liabilities 2 4 10
Total lease costs $ 144 $ 111 $ 112
v3.24.0.1
Leases - Supplemental Balance Sheet Information (Details) - CAD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Leases [Abstract]    
Operating lease, ROU asset $ 347 $ 267
Operating lease, ROU asset, location Other assets (Note 20) Other assets (Note 20)
Finance lease, ROU asset $ 111 $ 102
Finance lease, ROU asset, location Properties Properties
Operating lease liabilities, current $ 102 $ 68
Operating lease liabilities, current, location Accounts payable and accrued liabilities (Note 16, 20) Accounts payable and accrued liabilities (Note 16, 20)
Finance lease liabilities, current $ 14 $ 8
Finance lease liabilities, current, location Long-term debt maturing within one year (Note 17, 18, 20) Long-term debt maturing within one year (Note 17, 18, 20)
Operating lease liabilities, long-term $ 242 $ 202
Operating lease liabilities, long-term, location Other long-term liabilities (Note 19, 20) Other long-term liabilities (Note 19, 20)
Finance lease liabilities, long-term $ 31 $ 30
Finance lease liabilities, long-term, location Long-term debt Long-term debt
v3.24.0.1
Leases - Weighted Average Remaining Lease Terms and Discount Rates (Details)
Dec. 31, 2023
Dec. 31, 2022
Weighted-Average Remaining Lease Term    
Operating leases 5 years 5 years
Finance leases 4 years 6 years
Weighted-Average Discount Rate    
Operating leases 3.93% 3.20%
Finance leases 6.18% 6.89%
v3.24.0.1
Leases - Supplemental Information Related to Leases (Details) - CAD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Leases [Abstract]      
Operating cash outflows from operating leases $ 96 $ 64 $ 64
Operating cash outflows from finance leases 2 6 10
Financing cash outflows from finance leases 13 104 8
ROU assets obtained in exchange for lease liabilities      
Operating leases 62 34 36
Finance leases $ 0 $ 0 $ 5
v3.24.0.1
Leases - Maturities of Lease Liabilities (Details)
$ in Millions
Dec. 31, 2023
CAD ($)
Finance leases  
2024 $ 15
2025 14
2026 14
2027 1
2028 0
Thereafter 7
Total lease future payments 51
Imputed interest (6)
Present value of future lease payments 45
Operating leases  
2024 110
2025 86
2026 77
2027 50
2028 30
Thereafter 29
Total lease future payments 382
Imputed interest (37)
Present value of future lease payments $ 345
v3.24.0.1
Shareholders' equity - Narrative (Details)
$ in Millions
 12 Months Ended
Apr. 21, 2021
Dec. 31, 2023
CAD ($)
shares
Dec. 31, 2022
CAD ($)
Dec. 31, 2021
CAD ($)
Jan. 27, 2021
shares
Preferred shares issued   0      
Common shares authorized to be repurchased (in shares)         16,700,000
Treasury stock, shares, acquired (in shares)   0      
Stock split ratio 5        
Share capital          
Stock-based compensation transferred from APIC | $   $ 17 $ 9 $ 7  
v3.24.0.1
Shareholders' equity - Summary of Information Related to Common Share Balances (Details) - shares
shares in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Increase (Decrease) in Stockholders' Equity [Roll Forward]      
Share capital, January 1 (in shares) 930.5 929.7 666.3
Shares issued under stock option plan (in shares) 1.6 0.8 0.8
Shares issued for KCS acquisition (in shares) 0.0 0.0 262.6
Share capital, December 31 (in shares) 932.1 930.5 929.7
v3.24.0.1
Change in non-cash working capital balances related to operations (Details) - CAD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Supplemental Cash Flow Elements [Abstract]      
Accounts receivable, net $ (317) $ (147) $ 32
Materials and supplies 1 (27) (14)
Other current assets (49) (13) 24
Accounts payable and accrued liabilities 57 95 (108)
Change in non-cash working capital balances related to operations $ (308) $ (92) $ (66)
v3.24.0.1
Pensions and other benefits - Narrative (Details) - CAD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Defined Benefit Plan Disclosure [Line Items]      
Period of average market values for calculating net periodic benefit cost 5 years    
Benefit obligation, discount rate 4.64% 5.01% 3.01%
Defined benefit plan with accumulated benefit obligation in excess of plan assets, accumulated benefit obligation $ 327 $ 332  
Defined benefit plan with accumulated benefit obligation in excess of plan assets, plan assets $ 189 $ 186  
Maximum value of underlying assets represented by financial derivatives, excluding currency forwards 30.00%    
Solvency funded position hedged against interest rate risk 50.00% 45.00%  
Company's common shares in fund assets (in shares) 354,530 570,074  
Net cost of defined contribution plan $ 14 $ 12 $ 13
Multi-employer benefit plan, Employer contributions $ 4 $ 2 $ 3
US Dollar      
Defined Benefit Plan Disclosure [Line Items]      
Plans exposure to foreign currency risk percentage 41.00% 50.00%  
Euro      
Defined Benefit Plan Disclosure [Line Items]      
Plans exposure to foreign currency risk percentage 7.00% 6.00%  
Other Currencies      
Defined Benefit Plan Disclosure [Line Items]      
Plans exposure to foreign currency risk percentage 9.00% 10.00%  
Public equity      
Defined Benefit Plan Disclosure [Line Items]      
Company's securities in fund assets $ 37 $ 58  
Fixed income securities      
Defined Benefit Plan Disclosure [Line Items]      
Company's securities in fund assets $ 2 $ 5  
Pensions      
Defined Benefit Plan Disclosure [Line Items]      
Benefit obligation, discount rate 4.64% 5.01% 3.01%
Defined benefit pension plans accumulated benefit obligation $ 10,155 $ 9,747  
v3.24.0.1
Pensions and other benefits - Net Periodic Benefit Cost (Details) - CAD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Defined Benefit Plan Disclosure [Line Items]      
Current service cost $ 81 $ 159 $ 184
Interest cost on benefit obligation 508 399 367
Expected return on plan assets (882) (959) (959)
Recognized net actuarial loss (gain) 45 148 205
Amortization of prior service costs 2 1 0
Total other components of net periodic benefit (recovery) cost (327) (411) (387)
Net periodic benefit (recovery) cost (246) (252) (203)
Pensions      
Defined Benefit Plan Disclosure [Line Items]      
Current service cost 71 148 171
Interest cost on benefit obligation 486 383 351
Expected return on plan assets (882) (959) (959)
Recognized net actuarial loss (gain) 32 153 206
Amortization of prior service costs 2 1 0
Total other components of net periodic benefit (recovery) cost (362) (422) (402)
Net periodic benefit (recovery) cost (291) (274) (231)
Other benefits      
Defined Benefit Plan Disclosure [Line Items]      
Current service cost 10 11 13
Interest cost on benefit obligation 22 16 16
Expected return on plan assets 0 0 0
Recognized net actuarial loss (gain) 13 (5) (1)
Amortization of prior service costs 0 0 0
Total other components of net periodic benefit (recovery) cost 35 11 15
Net periodic benefit (recovery) cost $ 45 $ 22 $ 28
v3.24.0.1
Pensions and other benefits - Changes in Projected Benefit Obligation (Details) - CAD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Change in projected benefit obligation:      
Projected benefit obligation at January 1 $ 10,347 $ 13,387  
Current service cost 81 159 $ 184
Interest cost 508 399 367
Employee contributions 48 42  
Benefits paid (693) (702)  
Foreign currency changes 2 16  
Addition of KCS plans 31 0  
Plan amendments and other 17 27  
Net actuarial loss (gain) 428 (2,981)  
Projected benefit obligation at December 31 10,769 10,347 13,387
Pensions      
Change in projected benefit obligation:      
Projected benefit obligation at January 1 9,936 12,884  
Current service cost 71 148 171
Interest cost 486 383 351
Employee contributions 48 42  
Benefits paid (656) (680)  
Foreign currency changes (4) 16  
Addition of KCS plans 0 0  
Plan amendments and other 18 27  
Net actuarial loss (gain) 407 (2,884)  
Projected benefit obligation at December 31 10,306 9,936 12,884
Other benefits      
Change in projected benefit obligation:      
Projected benefit obligation at January 1 411 503  
Current service cost 10 11 13
Interest cost 22 16 16
Employee contributions 0 0  
Benefits paid (37) (22)  
Foreign currency changes 6 0  
Addition of KCS plans 31 0  
Plan amendments and other (1) 0  
Net actuarial loss (gain) 21 (97)  
Projected benefit obligation at December 31 $ 463 $ 411 $ 503
v3.24.0.1
Pensions and other benefits - Changes in Fund Assets (Details) - CAD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Change in plan assets:    
Fair value of plan assets at January 1 $ 12,867 $ 14,943
Actual return on plan assets 1,208 (1,464)
Employer contributions 52 36
Employee contributions 48 42
Benefits paid (693) (702)
Foreign currency changes (4) 12
Fair value of plan assets at December 31 13,478 12,867
Funded status – plan surplus (deficit) 2,709 2,520
Pensions    
Change in plan assets:    
Fair value of plan assets at January 1 12,862 14,938
Actual return on plan assets 1,207 (1,464)
Employer contributions 15 14
Employee contributions 48 42
Benefits paid (656) (680)
Foreign currency changes (4) 12
Fair value of plan assets at December 31 13,472 12,862
Funded status – plan surplus (deficit) 3,166 2,926
Other benefits    
Change in plan assets:    
Fair value of plan assets at January 1 5 5
Actual return on plan assets 1 0
Employer contributions 37 22
Employee contributions 0 0
Benefits paid (37) (22)
Foreign currency changes 0 0
Fair value of plan assets at December 31 6 5
Funded status – plan surplus (deficit) $ (457) $ (406)
v3.24.0.1
Pensions and other benefits - Funded Status of Pension Plans (Details) - Pensions - CAD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Pension plans in surplus    
Defined Benefit Plan Disclosure [Line Items]    
Projected benefit obligation at December 31 $ (9,872) $ (9,512)
Fair value of fund assets at December 31 13,210 12,613
Funded Status 3,338 3,101
Pension plans in deficit    
Defined Benefit Plan Disclosure [Line Items]    
Projected benefit obligation at December 31 (434) (424)
Fair value of fund assets at December 31 262 249
Funded Status $ (172) $ (175)
v3.24.0.1
Pensions and other benefits - Amounts Recognized in Company's Consolidated Balance Sheets (Details) - CAD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Defined Benefit Plan Disclosure [Line Items]    
Pension asset $ 3,338 $ 3,101
Accounts payable and accrued liabilities (48) (43)
Pension and other benefit liabilities (581) (538)
Total amount recognized 2,709 2,520
Pensions    
Defined Benefit Plan Disclosure [Line Items]    
Pension asset 3,338 3,101
Accounts payable and accrued liabilities (11) (10)
Pension and other benefit liabilities (161) (165)
Total amount recognized 3,166 2,926
Other benefits    
Defined Benefit Plan Disclosure [Line Items]    
Pension asset 0 0
Accounts payable and accrued liabilities (37) (33)
Pension and other benefit liabilities (420) (373)
Total amount recognized $ (457) $ (406)
v3.24.0.1
Pensions and other benefits - Amounts Recognized in Accumulated Other Comprehensive Losses (Details) - CAD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Defined Benefit Plan Disclosure [Line Items]    
Other than deferred investment (losses) gains $ (1,843) $ (1,676)
Deferred investment (losses) gains (191) (301)
Prior service cost (48) (32)
Deferred income tax 619 599
Total (Note 8) (1,463) (1,410)
Pensions    
Defined Benefit Plan Disclosure [Line Items]    
Other than deferred investment (losses) gains (1,871) (1,711)
Deferred investment (losses) gains (191) (301)
Prior service cost (47) (31)
Deferred income tax 626 608
Total (Note 8) (1,483) (1,435)
Other benefits    
Defined Benefit Plan Disclosure [Line Items]    
Other than deferred investment (losses) gains 28 35
Deferred investment (losses) gains 0 0
Prior service cost (1) (1)
Deferred income tax (7) (9)
Total (Note 8) $ 20 $ 25
v3.24.0.1
Pensions and other benefits - Actuarial Assumptions (Details)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Benefit obligation at December 31:        
Discount rate   4.64% 5.01% 3.01%
Projected future salary increases   2.75% 2.75% 2.75%
Health care cost trend rate   5.00% 5.00% 5.00%
Benefit cost for year ended December 31:        
Discount rate   5.01% 3.01% 2.58%
Expected rate of return on fund assets   6.90% 6.90% 6.90%
Projected future salary increases   2.75% 2.75% 2.75%
Health care cost trend rate   5.00% 5.00% 5.00%
Forecast        
Benefit cost for year ended December 31:        
Expected rate of return on fund assets 6.70%      
v3.24.0.1
Pensions and other benefits - Pension Plan Asset Allocation and Weighted-Average Policy Range (Details) - Pensions
Dec. 31, 2023
Dec. 31, 2022
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]    
Asset allocation target 100.00%  
Percentage of plan assets at December 31 100.00% 100.00%
Cash and cash equivalents    
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]    
Asset allocation target 2.70%  
Percentage of plan assets at December 31 2.20% 1.10%
Fixed income    
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]    
Asset allocation target 38.10%  
Percentage of plan assets at December 31 31.20% 20.50%
Public equity    
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]    
Asset allocation target 29.70%  
Percentage of plan assets at December 31 35.80% 46.40%
Real estate and infrastructure    
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]    
Asset allocation target 14.70%  
Percentage of plan assets at December 31 11.30% 11.40%
Private debt    
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]    
Asset allocation target 7.40%  
Percentage of plan assets at December 31 8.40% 7.70%
Absolute return    
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]    
Asset allocation target 7.40%  
Percentage of plan assets at December 31 11.10% 12.90%
Minimum | Fixed income    
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]    
Policy range 20.00%  
Minimum | Public equity    
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]    
Policy range 24.00%  
Minimum | Real estate and infrastructure    
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]    
Policy range 6.00%  
Minimum | Private debt    
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]    
Policy range 3.00%  
Minimum | Absolute return    
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]    
Policy range 3.00%  
Maximum | Cash and cash equivalents    
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]    
Policy range 10.00%  
Maximum | Fixed income    
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]    
Policy range 43.00%  
Maximum | Public equity    
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]    
Policy range 55.00%  
Maximum | Real estate and infrastructure    
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]    
Policy range 20.00%  
Maximum | Private debt    
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]    
Policy range 13.00%  
Maximum | Absolute return    
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]    
Policy range 13.00%  
v3.24.0.1
Pensions and other benefits - Summary of DB Pension Plan Assets at Fair Value (Details)
$ in Millions, $ in Billions
 12 Months Ended
Dec. 31, 2023
CAD ($)
Dec. 31, 2022
CAD ($)
Dec. 31, 2021
CAD ($)
Jun. 30, 2021
USD ($)
May 21, 2021
USD ($)
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values $ 13,478 $ 12,867 $ 14,943    
Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values 13,472 12,862 $ 14,938    
Forward starting swaps          
Defined Benefit Plan Disclosure [Line Items]          
Derivative notional amount 1,396 1,745   $ 2.4 $ 2.4
Derivative fair value 116 (81)      
Cash and cash equivalents | Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values 297 218      
Government bonds | Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values 2,111 1,305      
Corporate bonds | Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values 1,642 1,156      
Mortgages | Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values 206 184      
Mortgage-backed and Asset-backed Securities | Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values 123        
Public equities, Canada | Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values 534 769      
Public equities, U.S and international | Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values 4,293 5,195      
Real estate          
Defined Benefit Plan Disclosure [Line Items]          
Fund value subject to redemption 480 595      
Fund value not subject to redemption 83 127      
Unfunded commitments $ 166 40      
Investment redemption, notice period 90 days        
Real estate | Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values $ 563 722      
Infrastructure          
Defined Benefit Plan Disclosure [Line Items]          
Fund value subject to redemption 493 356      
Fund value not subject to redemption 468 388      
Unfunded commitments $ 220 356      
Investment redemption, notice period 90 days        
Infrastructure | Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values $ 961 744      
Private debt          
Defined Benefit Plan Disclosure [Line Items]          
Fund value subject to redemption 124 160      
Fund value not subject to redemption 1,004 832      
Unfunded commitments $ 540 747      
Investment redemption, notice period 90 days        
Private debt | Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values $ 1,128 992      
Derivative instruments | Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values $ 116 (81)      
Absolute return | Minimum          
Defined Benefit Plan Disclosure [Line Items]          
Investment redemption, notice period 30 days        
Absolute return | Maximum          
Defined Benefit Plan Disclosure [Line Items]          
Investment redemption, notice period 120 days        
Absolute return, Funds of hedge funds | Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values $ 1,498 1,658      
Investments measured at NAV | Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values 4,150 4,116      
Investments measured at NAV | Cash and cash equivalents | Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values 0 0      
Investments measured at NAV | Government bonds | Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values 0 0      
Investments measured at NAV | Corporate bonds | Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values 0 0      
Investments measured at NAV | Mortgages | Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values 0 0      
Investments measured at NAV | Mortgage-backed and Asset-backed Securities | Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values 0        
Investments measured at NAV | Public equities, Canada | Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values 0 0      
Investments measured at NAV | Public equities, U.S and international | Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values 0 0      
Investments measured at NAV | Real estate | Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values 563 722      
Investments measured at NAV | Infrastructure | Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values 961 744      
Investments measured at NAV | Private debt | Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values 1,128 992      
Investments measured at NAV | Derivative instruments | Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values 0 0      
Investments measured at NAV | Absolute return, Funds of hedge funds | Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values 1,498 1,658      
Quoted prices in active markets for identical assets (Level 1) | Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values 6,185 6,976      
Quoted prices in active markets for identical assets (Level 1) | Cash and cash equivalents | Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values 297 218      
Quoted prices in active markets for identical assets (Level 1) | Government bonds | Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values 211 180      
Quoted prices in active markets for identical assets (Level 1) | Corporate bonds | Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values 644 432      
Quoted prices in active markets for identical assets (Level 1) | Mortgages | Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values 206 182      
Quoted prices in active markets for identical assets (Level 1) | Mortgage-backed and Asset-backed Securities | Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values 0        
Quoted prices in active markets for identical assets (Level 1) | Public equities, Canada | Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values 534 769      
Quoted prices in active markets for identical assets (Level 1) | Public equities, U.S and international | Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values 4,293 5,195      
Quoted prices in active markets for identical assets (Level 1) | Real estate | Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values 0 0      
Quoted prices in active markets for identical assets (Level 1) | Infrastructure | Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values 0 0      
Quoted prices in active markets for identical assets (Level 1) | Private debt | Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values 0 0      
Quoted prices in active markets for identical assets (Level 1) | Derivative instruments | Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values 0 0      
Quoted prices in active markets for identical assets (Level 1) | Absolute return, Funds of hedge funds | Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values 0 0      
Significant other observable inputs (Level 2) | Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values 3,137 1,770      
Significant other observable inputs (Level 2) | Cash and cash equivalents | Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values 0 0      
Significant other observable inputs (Level 2) | Government bonds | Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values 1,900 1,125      
Significant other observable inputs (Level 2) | Corporate bonds | Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values 998 724      
Significant other observable inputs (Level 2) | Mortgages | Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values 0 2      
Significant other observable inputs (Level 2) | Mortgage-backed and Asset-backed Securities | Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values 123        
Significant other observable inputs (Level 2) | Public equities, Canada | Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values 0 0      
Significant other observable inputs (Level 2) | Public equities, U.S and international | Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values 0 0      
Significant other observable inputs (Level 2) | Real estate | Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values 0 0      
Significant other observable inputs (Level 2) | Infrastructure | Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values 0 0      
Significant other observable inputs (Level 2) | Private debt | Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values 0 0      
Significant other observable inputs (Level 2) | Derivative instruments | Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values 116 (81)      
Significant other observable inputs (Level 2) | Absolute return, Funds of hedge funds | Pensions          
Defined Benefit Plan Disclosure [Line Items]          
DB pension plans at fair values $ 0 $ 0      
v3.24.0.1
Pensions and other benefits - Estimated Future Benefit Payments (Details)
$ in Millions
Dec. 31, 2023
CAD ($)
Pensions  
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]  
2024 $ 668
2025 663
2026 662
2027 661
2028 663
2029-2033 3,265
Other benefits  
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]  
2024 37
2025 35
2026 34
2027 33
2028 38
2029-2033 $ 159
v3.24.0.1
Stock-based compensation - Narrative (Details)
$ in Millions
 3 Months Ended 12 Months Ended
Mar. 31, 2023
CAD ($)
shares
Dec. 31, 2023
CAD ($)
shares
Dec. 31, 2022
CAD ($)
shares
Dec. 31, 2021
CAD ($)
shares
Dec. 31, 2020
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Stock-based compensation expense   $ 122.0 $ 113.0 $ 131.0  
Stock based compensation expense, tax benefit   27.0 26.0 29.0  
Share-based liabilities paid   89.0 137.0 126.0  
Regular and Performance Stock Options          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Stock-based compensation expense   $ 25.0 23.0 23.0  
Expiration period   7 years      
Fair value of options at grant date   $ 26.0 16.0 26.0  
Unrecognized compensation expense   $ 9.0      
Weighted-average period of recognition for unrecognized compensation   1 year 1 month 6 days      
Fair value of shares vested for stock option plan   $ 18.0 $ 24.0 $ 18.0  
Regular and Performance Stock Options | Minimum          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Vesting period   12 months      
Regular and Performance Stock Options | Maximum          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Vesting period   48 months      
PSUs          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Units issued (in shares) | shares   891,411 415,660 431,430  
Grant date fair value   $ 96.0      
Share-based liabilities paid   $ 86.0 $ 116.0 $ 119.0  
Performance Deferred Share Units          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Units issued (in shares) | shares   26,333 13,506 12,694  
Grant date fair value   $ 3.0      
Matching % of DSU's granted to senior managers   25.00%      
PSUs and PDSUs          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Stock-based compensation expense   $ 78.0 $ 69.0 $ 91.0  
Unrecognized compensation expense   $ 67.0      
Weighted-average period of recognition for unrecognized compensation   1 year 10 months 24 days      
Units issued (in shares) | shares   917,744 429,166    
PSUs and PDSUs | Minimum          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Vesting period   3 years      
PSUs and PDSUs | Maximum          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Vesting period   4 years      
DSUs          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Stock-based compensation expense   $ 10.0 $ 10.0 6.0  
Vesting period   36 months      
Unrecognized compensation expense   $ 1.0      
Weighted-average period of recognition for unrecognized compensation   1 year 10 months 24 days      
Units issued (in shares) | shares   85,750 60,262    
Grant date fair value   $ 9.0      
Matching % of DSU's granted to senior managers   25.00%      
Number of trading days   10 days      
Share-based liabilities paid   $ 2.0 $ 16.0 1.0  
Ownership target period   5 years      
Employee Share Purchase Plan          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Stock-based compensation expense   $ 11.0 $ 9.0 $ 8.0  
Vesting period   1 year      
Maximum percentage of annual salary that an employee can contribute   6.00%      
Number of shares purchased on behalf of participants | shares   600,730 566,902 538,022  
Employer contributions   $ 15.0 $ 11.0 $ 11.0  
Employer matching ratio per dollar contributed   0.3333      
Performance Shares, Initial Group          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Units issued (in shares) | shares   544,175      
Performance Shares, Remaining          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Units issued (in shares) | shares   347,236      
Share-based Payment Arrangement, Tranche One | PSUs          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Units issued (in shares) | shares 459,358       489,990
Payout percentage   135.00% 180.00%    
PSUs vested in period (in shares) | shares   399,372      
Fair value of PSUs vested in period   $ 54.0      
Number of trading days   30 days 30 days    
Share-based liabilities paid $ 87.0        
Share-based Payment Arrangement, Tranche One | Performance Deferred Share Units          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Units issued (in shares) | shares         50,145
PSUs vested in period (in shares) | shares   11,372 45,058    
Fair value of PSUs vested in period   $ 2.0 $ 11.0    
v3.24.0.1
Stock-based compensation - Stock Option Plan (Details) - Stock Option Plan - CAD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Number of options, Options outstanding (in shares)      
Outstanding, January 1 (in shares) 7,353,133    
Granted (in shares) 856,332    
Exercised (in shares) (1,634,730)    
Forfeited (in shares) (102,803)    
Outstanding, December 31 (in shares) 6,471,932 7,353,133  
Vested or expected to vest at December 31 (in shares) 6,428,547    
Exercisable, December 31 (in shares) 4,168,829    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]      
Outstanding, January 1 (cad per share) $ 61.69    
Granted (cad per share) 105.13    
Exercised (cad per share) 42.13    
Forfeited (cad per share) 92.84    
Outstanding at December 31 (cad per share) 71.03 $ 61.69  
Vested or expected to vest as at December 31 (cad per share) 70.83    
Exercisable at December 31 (cad per share) $ 58.20    
Number of options, Nonvested options (in shares)      
Non-vested, Outstanding January 1 (in shares) 2,597,008    
Granted (in shares) 856,332    
Vested (in shares) (1,047,434)    
Non-vested, Forfeited (in shares) (102,803)    
Non-vested, Outstanding December 31 (in shares) 2,303,103 2,597,008  
Weighted average grant date fair value, Nonvested options      
Non-vested, outstanding, January 1 (cad per share) $ 18.09    
Non-vested, granted (cad per share) 29.79 $ 21.33 $ 19.06
Vested (cad per share) 16.66    
Non-vested, forfeited (cad per share) 23.08    
Non-vested, outstanding, December 31 (cad per share) $ 22.87 $ 18.09  
Weighted average remaining term of vested or expected to vest options 3 years 3 months 18 days    
Aggregate intrinsic value of vested or expected to vest options $ 219    
v3.24.0.1
Stock-based compensation - Stock Options Outstanding and Exercisable (Details) - Stock Option Plan
$ / shares in Units, $ in Millions
 12 Months Ended
Dec. 31, 2023
CAD ($)
$ / shares
shares
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]  
Company's closing stock price (cad per share) $ 104.84
Options outstanding, number of options (in shares) | shares 6,471,932
Options outstanding, weighted-average years to expiration 3 years 3 months 18 days
Options outstanding, weighted-average exercise price (cad per share) $ 71.03
Options outstanding, aggregate intrinsic value | $ $ 219
Options exercisable, number of options (in shares) | shares 4,168,829
Options exercisable, weighted-average exercise price (cad per share) $ 58.20
Options exercisable, aggregate intrinsic value | $ $ 195
Number of stock options in-the-money (in shares) | shares 5,787,281
Weighted-average exercise price of stock options in-the-money (cad per share) $ 66.96
Weighted-average years to expiration 2 years 3 months 18 days
Price Range One  
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]  
Range of exercise prices, minimum (cad per share) $ 30,940,000
Range of exercise prices, maximum (cad per share) $ 50,190,000
Options outstanding, number of options (in shares) | shares 1,693,436
Options outstanding, weighted-average years to expiration 1 year 2 months 12 days
Options outstanding, weighted-average exercise price (cad per share) $ 40.04
Options outstanding, aggregate intrinsic value | $ $ 110
Options exercisable, number of options (in shares) | shares 1,693,436
Options exercisable, weighted-average exercise price (cad per share) $ 40.04
Options exercisable, aggregate intrinsic value | $ $ 110
Price Range Two  
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]  
Range of exercise prices, minimum (cad per share) $ 50,200,000
Range of exercise prices, maximum (cad per share) $ 70,360,000
Options outstanding, number of options (in shares) | shares 1,395,999
Options outstanding, weighted-average years to expiration 2 years 3 months 18 days
Options outstanding, weighted-average exercise price (cad per share) $ 58.53
Options outstanding, aggregate intrinsic value | $ $ 65
Options exercisable, number of options (in shares) | shares 1,284,814
Options exercisable, weighted-average exercise price (cad per share) $ 57.53
Options exercisable, aggregate intrinsic value | $ $ 61
Price Range Three  
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]  
Range of exercise prices, minimum (cad per share) $ 70,370,000
Range of exercise prices, maximum (cad per share) $ 94,270,000
Options outstanding, number of options (in shares) | shares 1,610,826
Options outstanding, weighted-average years to expiration 4 years
Options outstanding, weighted-average exercise price (cad per share) $ 82.99
Options outstanding, aggregate intrinsic value | $ $ 35
Options exercisable, number of options (in shares) | shares 822,618
Options exercisable, weighted-average exercise price (cad per share) $ 80.20
Options exercisable, aggregate intrinsic value | $ $ 20
Price Range Four  
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]  
Range of exercise prices, minimum (cad per share) $ 94,280,000
Range of exercise prices, maximum (cad per share) $ 109,010,000.00
Options outstanding, number of options (in shares) | shares 1,771,671
Options outstanding, weighted-average years to expiration 5 years 3 months 18 days
Options outstanding, weighted-average exercise price (cad per share) $ 99.62
Options outstanding, aggregate intrinsic value | $ $ 9
Options exercisable, number of options (in shares) | shares 367,961
Options exercisable, weighted-average exercise price (cad per share) $ 94.94
Options exercisable, aggregate intrinsic value | $ $ 4
v3.24.0.1
Stock-based compensation - Weighted-Average Fair Value Assumptions (Details) - Stock Option Plan - $ / shares
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected option life (years) 4 years 9 months 4 years 9 months 4 years 9 months
Risk-free interest rate 3.35% 1.62% 0.53%
Expected stock price volatility 28.44% 26.85% 27.14%
Expected annual dividends (cad per share) $ 0.76 $ 0.76 $ 0.76
Estimated forfeiture rate 3.18% 3.01% 2.62%
Weighted average grant date fair value of options granted during the year (cad per share) $ 29.79 $ 21.33 $ 19.06
v3.24.0.1
Stock-based compensation - Schedule of Options Exercised (Details) - Stock Option Plan - CAD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total intrinsic value $ 101 $ 53 $ 43
Cash received by the Company upon exercise of options $ 69 $ 32 $ 25
v3.24.0.1
Stock-based compensation - Summary of Performance Share Units Plan (Details) - PSUs and PDSUs - shares
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] (in shares)    
Outstanding, January 1 (in shares) 1,336,358 1,577,781
Granted (in shares) 917,744 429,166
Issued in lieu of dividends (in shares) 10,845 11,207
Settled (in shares) (460,667) (637,073)
PDSUs converted into DSUs (in shares) (45,058) 0
Forfeited (in shares) (80,669) (44,723)
Outstanding, December 31 (in shares) 1,678,553 1,336,358
v3.24.0.1
Stock-based compensation - Summary of Deferred Share Units Plan (Details) - DSUs - shares
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] (in shares)    
Outstanding, January 1 (in shares) 744,530 841,333
Granted (in shares) 85,750 60,262
PDSUs converted into DSUs (in shares) (81,533) 0
Issued in lieu of dividends (in shares) 5,685 6,510
Settled (in shares) (15,935) (162,319)
Forfeited (in shares) (1,745) (1,256)
Outstanding, December 31 (in shares) 899,818 744,530
v3.24.0.1
Stock-based compensation - Summary of Total Share Based Liabilities (Details) - CAD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based liabilities paid $ 89 $ 137 $ 126
PSUs      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based liabilities paid 86 116 119
DSUs      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based liabilities paid 2 16 1
Other      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based liabilities paid $ 1 $ 5 $ 6
v3.24.0.1
Variable interest entities (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2023
CAD ($)
Variable Interest Entity [Line Items]  
Future minimum lease payments before tax $ 382
Variable Interest Entity, Not Primary Beneficiary  
Variable Interest Entity [Line Items]  
Lease payments after tax 8
Future minimum lease payments before tax $ 84
v3.24.0.1
Commitments and contingencies (Details)
$ in Millions, $ in Millions, $ in Millions
 12 Months Ended
Jan. 05, 2024
USD ($)
Aug. 30, 2023
CAD ($)
Oct. 20, 2022
CAD ($)
Dec. 31, 2023
CAD ($)
claim
plaintiff
Dec. 31, 2023
USD ($)
claim
plaintiff
Dec. 31, 2023
MXN ($)
claim
plaintiff
Sep. 30, 2023
CAD ($)
Lytton B.C wildfire & B.C Fraser canyon flooding              
Commitments and Contingencies [Line Items]              
Former gain contingency, recognized in current period             $ 51
Foreign Tax Authority | Mexican Tax Authority | Tax Year 2014              
Commitments and Contingencies [Line Items]              
Income tax examination, estimate of possible loss       $ 475   $ 6,068  
WD Trustee | 2021 NCIB Program Announcement              
Commitments and Contingencies [Line Items]              
Damages awarded, value $ 3.9            
Lac-Megantic Rail Accident | Claimed damages as a result of derailment              
Commitments and Contingencies [Line Items]              
Amount to be distributed       440      
Lac-Megantic Rail Accident | Quebec Minister of Sustainable Development, Environment, Wildlife and Parks              
Commitments and Contingencies [Line Items]              
Value of damages sought       95      
Lac-Megantic Rail Accident | Attorney General of Quebec              
Commitments and Contingencies [Line Items]              
Value of damages sought       315      
Value of damages previously sought       409      
Lac-Megantic Rail Accident | Initial Subrogated Insurers | Subrogated insurance claim              
Commitments and Contingencies [Line Items]              
Value of damages sought       15      
Value of damages previously sought       $ 16      
Number of subrogated insurer claims | claim       8 8 8  
Lac-Megantic Rail Accident | Additional Subrogated Insurers | Subrogated insurance claim              
Commitments and Contingencies [Line Items]              
Value of damages sought       $ 3      
Number of subrogated insurer claims | claim       2 2 2  
Lac-Megantic Rail Accident | Class Action Plaintiffs              
Commitments and Contingencies [Line Items]              
Value of damages sought       $ 5      
Number of plaintiffs | plaintiff       48 48 48  
Lac-Megantic Rail Accident | MMAR Estate Representative | Damages for loss in business value              
Commitments and Contingencies [Line Items]              
Value of damages sought         $ 30.0    
Lac-Megantic Rail Accident | WD Trustee | Damaged railcars and lost crude recovery              
Commitments and Contingencies [Line Items]              
Value of damages sought         6.0    
Lac-Megantic Rail Accident | WD Trustee | Reimbursement for settlement paid by consignor              
Commitments and Contingencies [Line Items]              
Value of damages sought         110.0    
Lac-Megantic Rail Accident | WD Trustee | Reimbursement for settlement paid by consignee              
Commitments and Contingencies [Line Items]              
Value of damages sought         $ 60.0    
Remington Development Corporation legal claim | Remington Development Corporation | Breach of contract              
Commitments and Contingencies [Line Items]              
Damages awarded, value   $ 165 $ 164        
Total estimated damages, value     $ 217        
Capital Expenditures              
Commitments and Contingencies [Line Items]              
Future committed expenditures       $ 2,300      
Operating Expenditures              
Commitments and Contingencies [Line Items]              
Future committed expenditures       $ 544      
v3.24.0.1
Guarantees (Details) - CAD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Guarantees [Abstract]    
Accrued guarantees $ 8 $ 5
v3.24.0.1
Segmented and geographic information - Narrative (Details)
 12 Months Ended
Dec. 31, 2023
segment
Segment Reporting [Abstract]  
Number of operating segments 1
v3.24.0.1
Segmented and geographic information - Geographic Information (Details) - CAD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenues $ 12,555 $ 8,814 $ 7,995
Long-lived assets: Properties and right of use assets 52,091 22,652  
Canada      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenues 6,651 6,423 5,992
Long-lived assets: Properties and right of use assets 15,933 15,208  
U.S.      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenues 4,257 2,391 2,003
Long-lived assets: Properties and right of use assets 25,141 7,444  
Mexico      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenues 1,647 0 $ 0
Long-lived assets: Properties and right of use assets $ 11,017 $ 0  
v3.24.0.1
Schedule II – Valuation and Qualifying Accounts (Details) - CAD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Accruals for personal injury and other claims provision      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Beginning balance at January 1 $ 132 $ 123 $ 126
Impact of KCS Acquisition 68 0 0
Additions charged to expenses 190 101 114
Payments and other reductions (202) (94) (117)
Impact of FX (1) 2 0
Ending balance at December 31 187 132 123
Provision for environmental remediation      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Beginning balance at January 1 83 79 80
Impact of KCS Acquisition 147 0 0
Additions charged to expenses 8 8 10
Payments and other reductions (15) (8) (10)
Impact of FX (3) 4 (1)
Ending balance at December 31 $ 220 $ 83 $ 79