Delivers strongest financial results in company's
history
CALGARY, July 17, 2014 /PRNewswire/ - Canadian Pacific
Railway Limited (TSX: CP) (NYSE: CP) today announced record Q2 2014
financial results.
Reported net income in the second quarter was $371 million, or $2.11 per diluted share, versus $252 million, or $1.43 per share, in the second quarter of 2013.
This represents a 48 per cent year-over-year improvement in
earnings per share.
SECOND-QUARTER 2014 RESULTS COMPARED WITH SECOND-QUARTER
2013:
- Total revenues were $1,681
million, an increase of 12 per cent
- Operating expenses were $1,094
million, an increase of 2 per cent
- Operating income was $587
million, an increase of 40 per cent
- Operating ratio was 65.1 per cent, a 680 basis point
improvement
"CP delivered another record quarter," said E. Hunter Harrison, CP's Chief Executive
Officer. "The team has made great strides in my two years at CP and
they continue to demonstrate resiliency by delivering these results
despite continued operational challenges in the US Midwest after a
devastating winter. The future is very promising for the railroad
as we transition towards leveraging our lower cost structure and
improved service."
Note on forward-looking information
This news release contains certain forward-looking information
within the meaning of applicable securities laws relating, but not
limited, to our operations, priorities and plans, anticipated
financial performance, purchases of common shares for cancellation
under CP's share repurchase program, future sources of capital,
business prospects, planned capital expenditures, programs and
strategies. This forward-looking information also includes, but is
not limited to, statements concerning expectations, beliefs, plans,
goals, objectives, assumptions and statements about possible future
events, conditions, and results of operations or performance.
Forward-looking information may contain statements with words or
headings such as "financial expectations", "key assumptions",
"anticipate", "believe", "expect", "plan", "will", "outlook",
"should" or similar words suggesting future outcomes.
Undue reliance should not be placed on forward-looking
information as actual results may differ materially from the
forward-looking information. Forward-looking information is not a
guarantee of future performance. By its nature, CP's
forward-looking information involves numerous assumptions, inherent
risks and uncertainties that could cause actual results to differ
materially from the forward-looking information, including but not
limited to the following factors: changes in business strategies;
general North American and global economic, credit and business
conditions; risks in agricultural production such as weather
conditions and insect populations; the availability and price of
energy commodities; the effects of competition and pricing
pressures; industry capacity; shifts in market demand; changes in
commodity prices; uncertainty surrounding timing and volumes of
commodities being shipped via CP; inflation; changes in laws and
regulations, including regulation of rates; changes in taxes and
tax rates; potential increases in maintenance and operating costs;
uncertainties of investigations, proceedings or other types of
claims and litigation; labour disputes; risks and liabilities
arising from derailments; transportation of dangerous goods; timing
of completion of capital and maintenance projects; currency and
interest rate fluctuations; effects of changes in market conditions
and discount rates on the financial position of pension plans and
investments; and various events that could disrupt operations,
including severe weather, droughts, floods, avalanches and
earthquakes as well as security threats and governmental response
to them, and technological changes. The foregoing list of
factors is not exhaustive.
These and other factors are detailed from time to time in
reports filed by CP with securities regulators in Canada and the
United States. Reference should be made to
"Management's Discussion and Analysis" in CP's annual and interim
reports, Annual Information Form and Form 40-F. Readers are
cautioned not to place undue reliance on forward-looking
information. Forward-looking information is based on current
expectations, estimates and projections and it is possible that
predictions, forecasts, projections, and other forms of
forward-looking information will not be achieved by CP. Except as
required by law, CP undertakes no obligation to update publicly or
otherwise revise any forward-looking information, whether as a
result of new information, future events or otherwise.
About Canadian Pacific
Canadian Pacific (TSX:CP)(NYSE:CP) is a transcontinental railway in
Canada and the United States with direct links to eight
major ports, including Vancouver
and Montreal, providing North
American customers a competitive rail service with access to key
markets in every corner of the globe. CP is growing with its
customers, offering a suite of freight transportation services,
logistics solutions and supply chain expertise. Visit www.cpr.ca to
see the rail advantages of Canadian Pacific.
CANADIAN PACIFIC RAILWAY LIMITED
INTERIM CONSOLIDATED STATEMENTS OF
INCOME
(in millions of Canadian dollars, except per share data)
(unaudited)
|
|
|
For the three months |
|
|
For the six months |
|
|
|
ended June 30 |
|
|
ended June 30 |
|
|
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Freight |
$ |
1,642 |
|
$ |
1,458 |
|
$ |
3,116 |
|
$ |
2,917 |
|
Other |
|
39 |
|
|
39 |
|
|
74 |
|
|
75 |
Total revenues |
|
1,681 |
|
|
1,497 |
|
|
3,190 |
|
|
2,992 |
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
342 |
|
|
334 |
|
|
687 |
|
|
726 |
|
Fuel |
|
273 |
|
|
246 |
|
|
544 |
|
|
516 |
|
Materials |
|
47 |
|
|
35 |
|
|
99 |
|
|
79 |
|
Equipment rents |
|
40 |
|
|
44 |
|
|
81 |
|
|
90 |
|
Depreciation and amortization |
|
137 |
|
|
141 |
|
|
278 |
|
|
282 |
|
Purchased services and other |
|
255 |
|
|
277 |
|
|
491 |
|
|
517 |
Total operating expenses |
|
1,094 |
|
|
1,077 |
|
|
2,180 |
|
|
2,210 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
587 |
|
|
420 |
|
|
1,010 |
|
|
782 |
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
Other income and charges |
|
3 |
|
|
8 |
|
|
3 |
|
|
11 |
|
Net interest expense |
|
69 |
|
|
68 |
|
|
139 |
|
|
138 |
Income before income tax
expense |
|
515 |
|
|
344 |
|
|
868 |
|
|
633 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense (Note
4) |
|
144 |
|
|
92 |
|
|
243 |
|
|
164 |
Net income |
$ |
371 |
|
$ |
252 |
|
$ |
625 |
|
$ |
469 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share (Note
5) |
|
Basic earnings per share |
$ |
2.13 |
|
$ |
1.44 |
|
$ |
3.57 |
|
$ |
2.68 |
|
Diluted earnings per share |
$ |
2.11 |
|
$ |
1.43 |
|
$ |
3.54 |
|
$ |
2.66 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number of shares
(in millions) (Note 5) |
|
Basic |
|
174.4 |
|
|
174.9 |
|
|
174.9 |
|
|
174.6 |
|
Diluted |
|
175.9 |
|
|
176.3 |
|
|
176.5 |
|
|
176.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per
share |
$ |
0.3500 |
|
$ |
0.3500 |
|
$ |
0.7000 |
|
$ |
0.7000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Certain of the comparative figures
have been reclassified in order to be consistent with the 2014
presentation.
(Note 12) |
See Notes to Interim Consolidated
Financial Statements. |
INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
(in millions of Canadian dollars)
(unaudited)
|
|
|
|
For the three months |
|
|
For the six months |
|
|
|
ended June 30 |
|
ended June 30 |
|
|
|
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
371 |
|
$ |
252 |
|
$ |
625 |
|
$ |
469 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gain (loss) in foreign currency
translation |
|
|
|
|
|
|
|
|
|
|
|
|
|
adjustments, net of hedging activities |
|
7 |
|
|
(1) |
|
|
7 |
|
|
(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in derivatives designated as
cash flow hedges |
|
(1) |
|
|
(1) |
|
|
(2) |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in defined benefit pension and
post-retirement |
|
|
|
|
|
|
|
|
|
|
|
|
|
plans |
|
31 |
|
|
61 |
|
|
62 |
|
|
249 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income before
income taxes |
|
37 |
|
59 |
|
|
67 |
|
246 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
(24) |
|
(1) |
|
|
(16) |
|
(41) |
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (Note
3) |
|
13 |
|
58 |
|
|
51 |
|
205 |
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income |
$ |
384 |
|
$ |
310 |
|
$ |
676 |
|
$ |
674 |
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to Interim Consolidated
Financial Statements. |
|
|
|
|
|
|
|
|
|
|
|
INTERIM CONSOLIDATED BALANCE SHEETS AS AT,
(in millions of Canadian dollars)
(unaudited)
|
|
June 30 |
|
December 31 |
|
|
2014 |
|
2013 |
Assets |
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash and cash equivalents |
$ |
369 |
|
$ |
476 |
|
Restricted cash and cash
equivalents |
|
402 |
|
|
411 |
|
Accounts receivable, net |
|
687 |
|
|
580 |
|
Materials and supplies |
|
174 |
|
|
165 |
|
Deferred income taxes |
|
220 |
|
|
344 |
|
Other current assets |
|
61 |
|
|
53 |
|
|
|
1,913 |
|
|
2,029 |
|
|
|
|
|
|
|
Investments |
|
98 |
|
|
92 |
Properties |
|
13,538 |
|
|
13,327 |
Assets held for sale (Note
6) |
|
- |
|
|
222 |
Goodwill and intangible
assets |
|
162 |
|
|
162 |
Pension asset |
|
1,151 |
|
|
1,028 |
Other assets |
|
150 |
|
|
200 |
Total assets |
$ |
17,012 |
|
$ |
17,060 |
|
|
|
|
|
|
|
Liabilities and shareholders'
equity |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Accounts payable and accrued
liabilities |
$ |
1,257 |
|
$ |
1,189 |
|
Long-term debt maturing within one
year (Note 8) |
|
92 |
|
|
189 |
|
|
|
1,349 |
|
|
1,378 |
|
|
|
|
|
|
|
Pension and other benefit
liabilities |
|
660 |
|
|
657 |
Other long-term liabilities |
|
364 |
|
|
338 |
Long-term debt (Note 8) |
|
4,633 |
|
|
4,687 |
Deferred income taxes |
|
2,870 |
|
|
2,903 |
Total liabilities |
|
9,876 |
|
|
9,963 |
|
|
|
|
|
|
|
Shareholders' equity (Note
7) |
|
|
|
|
|
|
Share capital |
|
2,248 |
|
|
2,240 |
|
Additional paid-in capital |
|
34 |
|
|
34 |
|
Accumulated other comprehensive loss
(Note 3) |
|
(1,452) |
|
|
(1,503) |
|
Retained earnings |
|
6,306 |
|
|
6,326 |
|
|
|
7,136 |
|
|
7,097 |
Total liabilities and
shareholders' equity |
$ |
17,012 |
|
$ |
17,060 |
|
|
|
|
|
|
|
Contingencies (Note 11) |
|
|
|
|
|
See Notes to Interim Consolidated
Financial Statements. |
|
|
|
|
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions of Canadian dollars)
(unaudited)
|
|
|
|
For the three months |
|
For the six months |
|
|
|
|
ended June 30 |
|
ended June 30 |
|
|
|
|
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
Operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
371 |
|
$ |
252 |
|
$ |
625 |
|
$ |
469 |
|
Reconciliation of net income to cash
provided by |
|
|
|
|
|
|
|
|
|
|
|
|
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
137 |
|
|
141 |
|
|
278 |
|
|
282 |
|
|
|
Deferred income taxes (Note 4) |
|
(15) |
|
|
87 |
|
|
74 |
|
|
150 |
|
|
|
Pension funding in excess of expense (Note
10) |
|
(33) |
|
|
(14) |
|
|
(65) |
|
|
(23) |
|
Other operating activities,
net |
|
23 |
|
|
(21) |
|
|
40 |
|
|
(19) |
|
Change in non-cash working capital
balances related to |
|
|
|
|
|
|
|
|
|
|
|
|
operations |
|
162 |
|
|
75 |
|
|
(20) |
|
|
(72) |
Cash provided by operating
activities |
|
645 |
|
|
520 |
|
|
932 |
|
|
787 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
|
|
|
|
|
|
|
Additions to properties |
|
(298) |
|
|
(301) |
|
|
(522) |
|
|
(504) |
|
Proceeds from the sale of west end of
Dakota, Minnesota |
|
|
|
|
|
|
|
|
|
|
|
|
and Eastern Railroad (Note
6) |
|
236 |
|
|
- |
|
|
236 |
|
|
- |
|
Proceeds from the sale of properties
and other assets |
|
11 |
|
|
11 |
|
|
16 |
|
|
27 |
|
Change in restricted cash and cash
equivalents used to |
|
|
|
|
|
|
|
|
|
|
|
|
collateralize letters of credit |
|
7 |
|
|
(99) |
|
|
9 |
|
|
(99) |
|
Other |
|
(1) |
|
|
(1) |
|
|
(1) |
|
|
(26) |
Cash used in investing
activities |
|
(45) |
|
|
(390) |
|
|
(262) |
|
|
(602) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid |
|
(62) |
|
|
(60) |
|
|
(123) |
|
|
(121) |
|
Issuance of CP common shares |
|
22 |
|
|
23 |
|
|
36 |
|
|
63 |
|
Purchase of CP common shares (Note
7) |
|
(447) |
|
|
- |
|
|
(532) |
|
|
- |
|
Repayment of long-term debt |
|
(11) |
|
|
(7) |
|
|
(154) |
|
|
(26) |
Cash used in financing
activities |
|
(498) |
|
|
(44) |
|
|
(773) |
|
|
(84) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of foreign currency
fluctuations on U.S. dollar- |
|
|
|
|
|
|
|
|
|
|
|
denominated cash and cash
equivalents |
|
(12) |
|
|
9 |
|
|
(4) |
|
|
8 |
Cash position |
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash and cash
equivalents |
|
90 |
|
|
95 |
|
|
(107) |
|
|
109 |
|
Cash and cash equivalents at beginning
of period |
|
279 |
|
|
347 |
|
|
476 |
|
|
333 |
Cash and cash equivalents at end of
period |
$ |
369 |
|
$ |
442 |
|
$ |
369 |
|
$ |
442 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental disclosures of cash
flow information: |
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes paid |
$ |
30 |
|
$ |
5 |
|
$ |
39 |
|
$ |
11 |
|
Interest paid |
$ |
88 |
|
$ |
85 |
|
$ |
160 |
|
$ |
151 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to Interim Consolidated
Financial Statements. |
|
|
|
|
|
|
|
|
|
|
|
INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN
SHAREHOLDERS' EQUITY
(in millions of Canadian dollars, except common share
amounts)
(unaudited)
|
Common |
|
|
|
|
|
Accumulated |
|
|
|
|
|
shares |
|
|
|
Additional |
other |
|
|
Total |
|
(in |
|
Share |
paid-in |
comprehensive |
Retained |
shareholders' |
|
millions) |
|
capital |
capital |
loss |
earnings |
equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1, 2014 |
175.4 |
|
$ |
2,240 |
$ |
34 |
$ |
(1,503) |
$ |
6,326 |
$ |
7,097 |
Net income |
- |
|
|
- |
|
- |
|
- |
|
625 |
|
625 |
Other comprehensive income (Note 3) |
- |
|
|
- |
|
- |
|
51 |
|
- |
|
51 |
Dividends declared |
- |
|
|
- |
|
- |
|
- |
|
(122) |
|
(122) |
Effect of stock-based compensation expense |
- |
|
|
- |
|
11 |
|
- |
|
- |
|
11 |
CP common shares repurchased (Note 7) |
(3.2) |
|
|
(42) |
|
- |
|
- |
|
(523) |
|
(565) |
Shares issued under stock option plans (Note
9) |
0.6 |
|
|
50 |
|
(11) |
|
- |
|
- |
|
39 |
Balance at June 30, 2014 |
172.8 |
|
$ |
2,248 |
$ |
34 |
$ |
(1,452) |
$ |
6,306 |
$ |
7,136 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common |
|
|
|
|
|
Accumulated |
|
|
|
|
|
shares |
|
|
|
Additional |
other |
|
|
Total |
|
(in |
|
Share |
paid-in |
comprehensive |
Retained |
shareholders' |
|
millions) |
|
capital |
capital |
loss |
earnings |
equity |
Balance at January 1, 2013 |
173.9 |
|
$ |
2,127 |
$ |
41 |
$ |
(2,768) |
$ |
5,697 |
$ |
5,097 |
Net income |
- |
|
|
- |
|
- |
|
- |
|
469 |
|
469 |
Other comprehensive income (Note 3) |
- |
|
|
- |
|
- |
|
205 |
|
- |
|
205 |
Dividends declared |
- |
|
|
- |
|
- |
|
- |
|
(124) |
|
(124) |
Effect of stock-based compensation expense |
- |
|
|
- |
|
10 |
|
- |
|
- |
|
10 |
Shares issued under stock option plans (Note
9) |
1.1 |
|
|
86 |
|
(18) |
|
- |
|
- |
|
68 |
Balance at June 30, 2013 |
175.0 |
|
$ |
2,213 |
$ |
33 |
$ |
(2,563) |
$ |
6,042 |
$ |
5,725 |
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to Interim Consolidated
Financial Statements. |
|
|
|
|
|
CANADIAN PACIFIC RAILWAY LIMITED
NOTES TO INTERIM CONSOLIDATED FINANCIAL
STATEMENTS
June 30,
2014
(unaudited)
1 Basis of presentation
These unaudited interim consolidated financial statements of
Canadian Pacific Railway Limited ("CP", or "the Company"),
expressed in Canadian dollars, reflect management's estimates and
assumptions that are necessary for their fair presentation in
conformity with accounting principles generally accepted in
the United States of America
("GAAP"). They do not include all disclosures required under GAAP
for annual financial statements and should be read in conjunction
with the 2013 annual consolidated financial statements. The
accounting policies used are consistent with the accounting
policies used in preparing the 2013 annual consolidated financial
statements.
CP's operations can be affected by seasonal fluctuations such as
changes in customer demand and weather-related issues. This
seasonality could impact quarter-over-quarter comparisons.
In management's opinion, the unaudited interim consolidated
financial statements include all adjustments (consisting of normal
and recurring adjustments) necessary to present fairly such
information. Interim results are not necessarily indicative of the
results expected for the fiscal year.
2 Future accounting changes
Reporting discontinued operations and disclosures of
disposals of components
In April 2014, the Financial
Accounting Standards Board ("FASB") issued Accounting Standards
Update ("ASU") No. 2014-08, Reporting Discontinued Operations and
Disclosures of Disposals of Components of an Entity, an amendment
to FASB Accounting Standards Codification ("ASC") Topic 205 and
Topic 360. The update amends the definition of a discontinued
operation in Topic 205, expands disclosure requirements for
transactions that meet the definition of a discontinued operation
and requires entities to disclose information about individually
significant components that are disposed of or held for sale and do
not qualify as discontinued operations. In addition, an entity is
required to separately present assets and liabilities of a
discontinued operation for all comparative periods and separately
present assets and liabilities of assets held for sale in the
initial period in which the disposal group is classified as held
for sale on the face of the consolidated balance sheets. For each
period in which assets and liabilities are separately presented on
the consolidated balance sheets, those amounts should not be offset
and presented as a single amount. This ASU will be effective for
public entities for fiscal years, and interim periods within those
years, beginning after December 15,
2014, and will be applied prospectively. The adoption of
this ASU is not expected to have a material impact to the Company's
financial statements.
Revenue from contracts with customers
In May 2014, FASB issued ASU No.
2014-09, Revenue from Contracts with Customers, a new FASB ASC,
Topic 606, which supersedes the revenue recognition requirements in
Topic 605 and most industry-specific guidance throughout the
Industry Topics of the Codification. This new standard requires an
entity to recognize revenue to depict the transfer of promised
goods or services to customers in an amount that reflects the
consideration to which the entity expects to be entitled in
exchange for those goods or services. In addition, the new standard
requires enhanced disclosures about revenue to help users of
financial statements to understand the nature, amount, timing and
uncertainty of revenue and cash flows arising from contracts with
customers. This ASU will be effective for public entities for
fiscal years, and interim periods within those years, beginning
after December 15, 2016. Entities
have the option of using either a full retrospective or a modified
retrospective approach to adopt the ASU. The Company has not, at
this time, ascertained the full impact on the consolidated
financial statements from the adoption of this new standard but
does not expect the impact to be material.
3 Changes in accumulated other
comprehensive loss ("AOCL") by component
|
For the three
months ended June 30 |
For the six
months ended June 30 |
(in millions of
Canadian dollars) |
Foreign
currency
net of
hedging
activities(1) |
Derivatives
and other(1) |
Pension
and
post-
retirement
defined
benefit
plans(1)(2) |
Total(1) |
Foreign
currency
net of
hedging
activities(1) |
Derivatives
and other(1) |
Pension
and post-
retirement
defined
benefit
plans(1)(2) |
Total(1) |
|
|
|
|
|
|
|
|
|
Opening balance, 2014 |
$
122 |
$
(16) |
$
(1,571) |
$
(1,465) |
$
105 |
$
(15) |
$
(1,593) |
$
(1,503) |
|
|
|
|
|
|
|
|
|
Other comprehensive income |
|
|
|
|
|
|
|
|
(loss) before reclassifications |
(8) |
(10) |
- |
(18) |
9 |
- |
- |
9 |
|
|
|
|
|
|
|
|
|
Amounts reclassified from |
|
|
|
|
|
|
|
|
accumulated other |
|
|
|
|
|
|
|
|
comprehensive loss (income) |
- |
8 |
23 |
31 |
- |
(3) |
45 |
42 |
|
|
|
|
|
|
|
|
|
Net current-period other |
|
|
|
|
|
|
|
|
comprehensive (loss) income |
(8) |
(2) |
23 |
13 |
9 |
(3) |
45 |
51 |
|
|
|
|
|
|
|
|
|
Closing balance, 2014 |
$
114 |
$
(18) |
$
(1,548) |
$
(1,452) |
$
114 |
$
(18) |
$
(1,548) |
$
(1,452) |
|
|
|
|
|
|
|
|
|
Opening balance, 2013 |
$
82 |
$
(15) |
$
(2,688) |
$
(2,621) |
$
74 |
$
(14) |
$
(2,828) |
$
(2,768) |
|
|
|
|
|
|
|
|
|
Other comprehensive income |
|
|
|
|
|
|
|
|
before reclassifications |
12 |
10 |
8 |
30 |
20 |
15 |
102 |
137 |
|
|
|
|
|
|
|
|
|
Amounts reclassified from |
|
|
|
|
|
|
|
|
accumulated other |
|
|
|
|
|
|
|
|
comprehensive (income) loss |
- |
(9) |
37 |
28 |
- |
(15) |
83 |
68 |
|
|
|
|
|
|
|
|
|
Net current-period other |
|
|
|
|
|
|
|
|
comprehensive income |
12 |
1 |
45 |
58 |
20 |
- |
185 |
205 |
|
|
|
|
|
|
|
|
|
Closing balance, 2013 |
$
94 |
$
(14) |
$
(2,643) |
$
(2,563) |
$
94 |
$
(14) |
$
(2,643) |
$
(2,563) |
|
|
|
(1) Amounts are presented net of tax.
(2) Reclassified from Accumulated other comprehensive
loss. |
Amounts in Pension
and post-retirement defined benefit plans reclassified from
Accumulated |
other
comprehensive loss |
|
For the three months |
|
For the six months |
|
ended June 30 |
|
ended June 30 |
(in millions of Canadian
dollars) |
2014 |
|
2013 |
|
2014 |
|
2013 |
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of prior service
costs(1) |
$ |
(17) |
|
$ |
(17) |
|
$ |
(34) |
|
$ |
(23) |
Recognition of net actuarial
loss(1) |
|
48 |
|
|
70 |
|
|
96 |
|
|
137 |
|
|
|
|
|
|
|
|
|
|
|
|
Total before income tax |
|
31 |
|
|
53 |
|
|
62 |
|
|
114 |
Income tax recovery |
|
(8) |
|
|
(16) |
|
|
(17) |
|
|
(31) |
Net of income tax |
$ |
23 |
|
$ |
37 |
|
$ |
45 |
|
$ |
83 |
(1) Impacts Compensation and benefits
on the Consolidated Statements of Income. |
4 Income taxes
|
For the three months |
|
For the six months |
|
ended June 30 |
|
ended June 30 |
(in millions of Canadian
dollars) |
2014 |
|
2013 |
|
2014 |
|
2013 |
Current income tax expense |
$ |
159 |
|
$ |
5 |
|
$ |
169 |
|
$ |
14 |
Deferred income tax expense
(recovery) |
|
(15) |
|
|
87 |
|
|
74 |
|
|
150 |
Income tax expense |
$ |
144 |
|
$ |
92 |
|
$ |
243 |
|
$ |
164 |
The effective income tax rate for the three and six months ended
June 30, 2014 was 28% (three and six
months ended June 30, 2013 - 27% and
26%, respectively). The lower rate in 2013 was primarily the result
of a benefit recognized for a U.S. federal track maintenance credit
of $6 million for 2012 enacted in the
first quarter of 2013.
5 Earnings per share
At June 30, 2014, the number of
shares outstanding was 172.8 million (June
30, 2013 - 175.0 million).
Basic earnings per share have been calculated using net income
for the period divided by the weighted-average number of shares
outstanding during the period.
The number of shares used in earnings per share calculations is
reconciled as follows:
|
|
|
For the three months |
|
|
For the six months |
|
|
|
ended June 30 |
|
|
ended June 30 |
|
(in millions) |
|
2014 |
|
2013 |
|
|
2014 |
|
2013 |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average basic shares outstanding |
|
174.4 |
|
174.9 |
|
|
174.9 |
|
174.6 |
|
Dilutive effect of stock options |
|
1.5 |
|
1.4 |
|
|
1.6 |
|
1.5 |
|
Weighted-average diluted shares
outstanding |
|
175.9 |
|
176.3 |
|
|
176.5 |
|
176.1 |
For the three and six months ended June
30, 2014, there were 124,093 options and 120,930 options,
respectively, excluded from the computation of diluted earnings per
share because their effects were not dilutive (three and six months
ended June 30, 2013 - 5,867 and
55,375, respectively).
6 Assets held for sale
On May 30, 2014, the Company
completed the sale of the west end of Dakota, Minnesota and Eastern Railroad
("DM&E West") to Genesee & Wyoming Inc. ("G&W") for net
proceeds of U.S. $218 million (CDN
$236 million), subject to closing
adjustments to be finalized between the Company and G&W in the
third quarter of 2014.
7 Shareholders' Equity
On February 20, 2014, the Board of
Directors of the Company approved a share repurchase program, and
in March 2014, the Company filed a
new normal course issuer bid to purchase, for cancellation, up to
5.3 million of its outstanding Common Shares. Under the filing,
share purchases may be made during the 12-month period that began
March 17, 2014, and ends March 16, 2015. The purchases are made at the
market price on the day of purchase, with consideration allocated
to share capital up to the average carrying amount of the shares,
and any excess allocated to retained earnings.
The following table provides the activities under the share
repurchase program:
|
For the three months |
|
For the six months |
|
ended June 30 |
|
ended June 30 |
|
2014 |
|
2014 |
|
|
|
|
|
|
Number of common shares repurchased |
|
2,702,232 |
|
|
3,269,982 |
Weighted-average price per
share(1) |
$ |
176.86 |
|
$ |
172.90 |
Amount of repurchase (in
millions)(1) |
$ |
478 |
|
$ |
565 |
(1) Includes brokerage fees. |
8 Financial instruments
A. Fair values of
financial instruments
The Company categorizes its financial assets and liabilities
measured at fair value in line with the fair value hierarchy
established by GAAP that prioritizes, with respect to reliability,
the inputs to valuation techniques used to measure fair value. This
hierarchy consists of three broad levels. Level 1 inputs consist of
quoted prices (unadjusted) in active markets for identical assets
and liabilities and give the highest priority to these inputs.
Level 2 and 3 inputs are based on significant other observable
inputs and significant unobservable inputs, respectively, and give
lower priority to these inputs.
When possible, the estimated fair value is based on quoted
market prices and, if not available, estimates from third party
brokers. For non-exchange traded derivatives classified in Level 2,
the Company uses standard valuation techniques to calculate fair
value. Primary inputs to these techniques include observable market
prices (interest, foreign exchange and commodity) and volatility,
depending on the type of derivative and nature of the underlying
risk. The Company uses inputs and data used by willing market
participants when valuing derivatives and considers its own credit
default swap spread as well as those of its counterparties in its
determination of fair value.
The carrying values of financial instruments equal or
approximate their fair values with the exception of long-term debt
which has a fair value of approximately $5,715 million at June 30,
2014 (December 31, 2013 -
$5,572 million) and a carrying value
of $4,725 million at June 30, 2014 (December
31, 2013 - $4,876 million).
The estimated fair value of current and long-term borrowings has
been determined based on market information where available, or by
discounting future payments of interest and principal at estimated
interest rates expected to be available to the Company at period
end. All derivatives and long-term debt are classified as Level
2.
B. Financial risk management
Derivative financial instruments
Derivative financial instruments may be used to selectively reduce
volatility associated with fluctuations in interest rates, foreign
exchange ("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 Consolidated Balance Sheet,
commitments or forecasted transactions. At the time a derivative
contract is entered into and at least quarterly thereafter, an
assessment is made 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.
Foreign exchange management
The Company conducts business transactions and owns assets in both
Canada and the United States. As a result, the Company is
exposed to fluctuations in value of financial commitments, assets,
liabilities, income or cash flows due to changes in FX rates. The
Company may enter into foreign exchange risk management
transactions primarily to manage fluctuations in the exchange rate
between Canadian and U.S. currencies. 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.
Occasionally the Company may enter into short-term FX forward
contracts as part of its cash management strategy.
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 U.S. affiliates. The majority of the Company's
U.S. dollar denominated long-term debt has been designated as a
hedge of the net investment in 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 effective portion recognized in "Other
comprehensive income" for the three and six months ended
June 30, 2014 was an unrealized
foreign exchange gain of $119 million
and a loss of $12 million,
respectively (three and six months ended June 30, 2013 - unrealized foreign
exchange loss of $110 million and
$177 million, respectively). There
was no ineffectiveness during the three and six months ended
June 30, 2014 and comparative
periods.
Foreign exchange forward contracts
The Company may enter into FX forward contracts to lock in the
amount of Canadian dollars it has to pay on its U.S. denominated
debt maturities.
At June 30, 2014, the Company had
no remaining FX forward contracts to fix the exchange rate on U.S.
denominated debt maturities. At December 31,
2013, the Company had FX forward contracts to fix the
exchange rate on US$100 million of
principal outstanding on a capital lease due in January 2014, US$175
million of its 6.50% Notes due in May
2018, and US$100 million of
its 7.25% Notes due in May 2019.
These derivatives, which were accounted for as cash flow hedges,
guaranteed the amount of Canadian dollars that the Company would
repay when these obligations mature.
During the three months ended March 31,
2014, the Company settled the FX forward contract related to
the repayment of a capital lease due in January 2014 for proceeds of $8 million.
During the three months ended June 30,
2014, the Company de-designated and settled prior to
maturity the FX forward contracts related to the repayment of its
6.50% Notes due in May 2018 and its
7.25% Notes due in May 2019 for
proceeds of $17 million to be settled
in the third quarter of 2014.
During the three and six months ended June 30, 2014, the combined realized and
unrealized foreign exchange loss was $8
million and the combined realized and unrealized foreign
exchange gain was $3 million,
respectively (three and six months ended June 30, 2013 - unrealized gains of $10 million and $15
million, respectively), were recorded in "Other income and
charges" in relation to these derivatives. Gains recorded in "Other
income and charges" were largely offset by losses on the underlying
debt which the derivatives were designated to hedge. Similarly,
losses were largely offset by gains on the underlying debt.
At June 30, 2014, the realized
gain derived from these FX forwards was $17
million which was recorded in "Accounts receivables" with
the offset reflected as realized gains of $3
million in "Accumulated other comprehensive loss" and
$14 million in "Retained earnings".
At December 31, 2013, the unrealized
gains derived from these FX forwards was $25
million of which $6 million
was included in "Other current assets" and $19 million in "Other assets" with the offsets
reflected as unrealized gains of $5
million in "Accumulated other comprehensive loss" and
$20 million in "Retained
earnings".
Amounts remaining in "Accumulated other comprehensive loss" at
June 30, 2014 will be amortized to
"Other income and charges" until the underlying debts which were
hedged are repaid.
At June 30, 2014, the Company
expected that, during the next twelve months, a pre-tax gain of
$1 million would be reclassified to
"Other income and charges".
9 Stock-based compensation
At June 30, 2014, the Company had
several stock-based compensation plans, including stock option
plans, various cash settled liability plans and an employee stock
savings plan. These plans resulted in an expense of $39 million for the three months ended
June 30, 2014 and an expense of
$61 million for the six months ended
June 30, 2014 (three and six months
ended June 30, 2013, an expense of
$10 million and $43 million, respectively).
Regular options
In the six months ended June 30,
2014, under CP's stock option plans, the Company issued
375,430 regular options at the weighted-average price of
$169.00 per share, based on the
closing price on the grant date.
Pursuant to the employee plans, these regular options may be
exercised upon vesting, which is between 12 and 48 months after the
grant date, and will expire after 10 years.
Under the fair value method, the fair value of the regular
options at the grant date was $17
million. The weighted-average fair value assumptions were
approximately:
|
For the six months |
|
ended June 30, 2014 |
|
|
|
|
Grant price |
$ |
169.00 |
Expected option life
(years)(1) |
|
5.83 |
Risk-free interest
rate(2) |
|
1.65% |
Expected stock price
volatility(3) |
|
28.63% |
Expected annual dividends per
share(4) |
$ |
1.40 |
Expected forfeiture
rate(5) |
|
1.40% |
Weighted-average grant date fair
value per regular options |
|
|
granted during the period |
|
$46.46 |
|
|
|
(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 remaining term at the time of
the grant.
(3) Based on the historical stock price volatility of
the Company's stock 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 estimated forfeitures based on past
experience. This rate is monitored on a periodic basis. |
Performance share unit ("PSU") plan
In the six months ended June 30,
2014, the Company issued 165,390 PSUs with a grant date fair
value of approximately $25 million.
These units attract dividend equivalents in the form of additional
units based on the dividends paid on the Company's Common Shares.
PSUs vest and are settled in cash, or in CP common shares
approximately three years after the grant date, contingent upon
CP's performance ("performance factor"). The fair value of PSUs is
measured, both on the grant date and each subsequent quarter until
settlement, using a Monte Carlo simulation model. The model
utilizes multiple input variables that determine the probability of
satisfying the performance factor and market conditions stipulated
in the grant.
Deferred share unit ("DSU") plan
In the six months ended June 30,
2014, the Company granted 49,846 DSUs with a grant date fair
value of approximately $8 million.
DSUs vest over various periods of up to 48 months and are only
redeemable for a specified period after employment is terminated.
An expense for DSUs is recognized over the vesting period for both
the initial subscription price and the change in value between
reporting periods.
Restricted share unit ("RSU") plan
In the six months ended June 30,
2014, the Company granted 15,641 RSUs with a grant date fair
value of approximately $3 million.
RSUs are subject to time vesting over 36 months. An expense for
RSUs is recognized over the vesting period for both the initial
subscription price and the change in value between reporting
periods.
10 Pensions and other benefits
In the three and six months ended June
30, 2014, the Company made contributions of $20 million and $39
million, respectively (three and six months ended 2013 -
$22 million and $52 million, respectively) to its defined benefit
pension plans. The net periodic benefit cost for defined benefit
pension plans and other benefits recognized in the three and six
months ended June 30, 2014 included
the following components:
|
|
For the three months |
|
|
ended June 30 |
|
|
Pensions |
|
|
Other benefits |
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Canadian
dollars) |
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
|
|
|
|
|
|
|
|
|
|
|
Current service cost (benefits |
|
|
|
|
|
|
|
|
|
|
|
earned by employees in
the |
|
|
|
|
|
|
|
|
|
|
|
period) |
$ |
26 |
|
$ |
33 |
|
$ |
4 |
|
$ |
4 |
Interest cost on benefit
obligation |
|
119 |
|
|
111 |
|
|
6 |
|
|
6 |
Expected return on fund assets |
|
(189) |
|
|
(187) |
|
|
- |
|
|
- |
Recognized net actuarial loss |
|
48 |
|
|
68 |
|
|
- |
|
|
2 |
Amortization of prior service
costs |
|
(17) |
|
|
(17) |
|
|
- |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
Net periodic benefit (recovery)
cost |
$ |
(13) |
|
$ |
8 |
|
$ |
10 |
|
$ |
12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six months |
|
|
ended June 30 |
|
|
Pensions |
|
|
Other benefits |
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Canadian
dollars) |
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
|
|
|
|
|
|
|
|
|
|
|
Current service cost (benefits |
|
|
|
|
|
|
|
|
|
|
|
earned by employees in
the |
|
|
|
|
|
|
|
|
|
|
|
period) |
$ |
53 |
|
$ |
68 |
|
$ |
7 |
|
$ |
8 |
Interest cost on benefit
obligation |
|
238 |
|
|
223 |
|
|
12 |
|
|
11 |
Expected return on fund assets |
|
(378) |
|
|
(373) |
|
|
- |
|
|
- |
Recognized net actuarial loss |
|
95 |
|
|
134 |
|
|
1 |
|
|
3 |
Amortization of prior service
costs |
|
(34) |
|
|
(23) |
|
|
- |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
Net periodic benefit (recovery)
cost |
$ |
(26) |
|
$ |
29 |
|
$ |
20 |
|
$ |
22 |
11 Contingencies
In the normal course of its operations, the Company becomes
involved in various legal actions, including claims relating to
injuries and damages 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
June 30, 2014 cannot be predicted
with certainty, it is the opinion of management that their
resolution will not have a material effect on the Company's
financial position or results of operations individually and in
aggregate.
Legal proceedings related to Lac-Megantic rail accident
On July 6, 2013, a train carrying
crude oil operated by Montreal,
Maine and Atlantic Railway
("MM&A") derailed and exploded in Lac-Megantic, Quebec on a section of a railway
line owned by MM&A. The day before CP had interchanged the
train to MM&A, but after the interchange MM&A exercised
exclusive control over the train.
Following this incident, the Minster of Sustainable Development,
Environment, Wildlife and Parks of Quebec issued an order directing named parties
to recover the contaminants and to clean up and decontaminate the
derailment. CP was later added as a named party in the
administrative action on August 14,
2013.
A class action has also been filed in the Superior Court of
Quebec on behalf of a class of
persons and entities residing in, owning or leasing property in,
operating a business in or physically present in Lac-Megantic. The law-suit seeks damage caused
by the derailment including for wrongful deaths, personal injuries,
and property damages. CP was added as a defendant on August 16, 2013. In the wake of the derailment
and ensuing litigation, MM&A filed for bankruptcy in
Canada and the United States.
At this early stage in the legal proceedings, any potential
liability and the quantum of potential loss cannot be determined.
Nevertheless, CP denies liability for MM&A's derailment and
will vigorously defend itself in both proceedings or any proceeding
that may be commenced in the future.
Environmental liabilities
Environmental remediation accruals cover site-specific remediation
programs. The accruals for environmental remediation represent CP's
best estimate of its probable future obligation and include both
asserted and unasserted claims, without reduction for anticipated
recoveries from third parties. Environmental remediation accruals
are measured on an undiscounted basis unless a reliably
determinable estimate as to amount and timing of costs can be
established. The accruals are recorded when the costs to remediate
are probable and reasonably estimable. Certain future costs to
monitor sites are discounted at a risk free rate. Although the
recorded accruals include CP's best estimate of all probable costs,
CP'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, are not
expected to be material to CP's financial position, but 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.
The expense included in "Purchased services and other" for the
three and six months ended June 30,
2014 was $nil and $1 million,
respectively (three and six months ended June 30, 2013 -$nil and expense of $1 million, respectively). 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". The total amount
provided at June 30, 2014 was
$89 million (December 31, 2013 - $90
million). Payments are expected to be made over 10 years to
2024.
12 Reclassification of comparative
figures
Billings to third parties for the recovery of costs incurred for
freight car repairs and servicing have been reclassified from
"Purchased services and other" to "Compensation and benefits" and
"Materials" within "Operating expenses", in order to match the
billings with the costs incurred on behalf of third parties. As a
result, the changes to these components of "Operating expenses" for
the three and six months ended June 30,
2013 are noted below. "Operating expenses" in total were
unchanged as a result of this reclassification.
|
|
|
|
|
|
|
|
Purchased |
|
|
Compensation |
|
|
|
|
|
services and |
(in millions of Canadian
dollars) |
|
and
benefits |
|
|
Material |
|
|
other |
|
|
|
|
|
|
|
|
|
For the three months ended June 30,
2013 |
|
|
|
|
|
|
|
|
As previously reported |
$ |
342 |
|
$ |
58 |
|
$ |
246 |
(Decrease) increase |
|
(8) |
|
|
(23) |
|
|
31 |
As reclassified |
$ |
334 |
|
$ |
35 |
|
$ |
277 |
|
|
|
|
|
|
|
|
|
For the six months ended June 30,
2013 |
|
|
|
|
|
|
|
|
As previously reported |
$ |
744 |
|
$ |
130 |
|
$ |
448 |
(Decrease) increase |
|
(18) |
|
|
(51) |
|
|
69 |
As reclassified |
$ |
726 |
|
$ |
79 |
|
$ |
517 |
|
|
|
|
|
|
|
|
|
|
|
Summary of
Rail Data |
|
|
|
|
|
|
|
|
|
|
|
Second Quarter
|
|
Year-to-date
|
|
2014 |
|
|
2013 |
|
|
Fav/(Unfav) |
|
% |
|
Financial
(millions, except per share data) |
|
|
2014 |
|
|
2013 |
|
|
Fav/(Unfav) |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
$ |
1,642 |
|
$ |
1,458 |
|
$ |
184 |
|
13 |
|
Freight revenue |
|
$ |
3,116 |
|
$ |
2,917 |
|
$ |
199 |
|
7 |
|
39 |
|
|
39 |
|
|
- |
|
- |
|
Other revenue |
|
|
74 |
|
|
75 |
|
|
(1) |
|
(1) |
|
1,681 |
|
|
1,497 |
|
|
184 |
|
12 |
|
Total revenues |
|
|
3,190 |
|
|
2,992 |
|
|
198 |
|
7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
342 |
|
|
334 |
|
|
(8) |
|
(2) |
|
Compensation and
benefits(1) |
|
|
687 |
|
|
726 |
|
|
39 |
|
5 |
|
273 |
|
|
246 |
|
|
(27) |
|
(11) |
|
Fuel |
|
|
544 |
|
|
516 |
|
|
(28) |
|
(5) |
|
47 |
|
|
35 |
|
|
(12) |
|
(34) |
|
Materials(1) |
|
|
99 |
|
|
79 |
|
|
(20) |
|
(25) |
|
40 |
|
|
44 |
|
|
4 |
|
9 |
|
Equipment rents |
|
|
81 |
|
|
90 |
|
|
9 |
|
10 |
|
137 |
|
|
141 |
|
|
4 |
|
3 |
|
Depreciation and
amortization |
|
|
278 |
|
|
282 |
|
|
4 |
|
1 |
|
255 |
|
|
277 |
|
|
22 |
|
8 |
|
Purchased services and other
(1) |
|
|
491 |
|
|
517 |
|
|
26 |
|
5 |
|
1,094 |
|
|
1,077 |
|
|
(17) |
|
(2) |
|
Total operating expenses |
|
|
2,180 |
|
|
2,210 |
|
|
30 |
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
587 |
|
|
420 |
|
|
167 |
|
40 |
|
Operating income |
|
|
1,010 |
|
|
782 |
|
|
228 |
|
29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 |
|
|
8 |
|
|
5 |
|
63 |
|
Other income and
charges |
|
|
3 |
|
|
11 |
|
|
8 |
|
73 |
|
69 |
|
|
68 |
|
|
(1) |
|
(1) |
|
Net interest expense |
|
|
139 |
|
|
138 |
|
|
(1) |
|
(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
515 |
|
|
344 |
|
|
171 |
|
50 |
|
Income before income tax
expense |
|
|
868 |
|
|
633 |
|
|
235 |
|
37 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
144 |
|
|
92 |
|
|
(52) |
|
(57) |
|
Income tax expense |
|
|
243 |
|
|
164 |
|
|
(79) |
|
(48) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
371 |
|
$ |
252 |
|
$ |
119 |
|
47 |
|
Net income |
|
$ |
625 |
|
$ |
469 |
|
$ |
156 |
|
33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
65.1 |
|
|
71.9 |
|
|
6.8 |
680 |
bps |
|
Operating ratio (%) |
|
|
68.3 |
|
|
73.9 |
|
|
5.6 |
560 |
bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
2.13 |
|
$ |
1.44 |
|
$ |
0.69 |
|
48 |
|
Basic earnings per
share |
|
$ |
3.57 |
|
$ |
2.68 |
|
$ |
0.89 |
|
33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
2.11 |
|
$ |
1.43 |
|
$ |
0.68 |
|
48 |
|
Diluted earnings per
share |
|
$ |
3.54 |
|
$ |
2.66 |
|
$ |
0.88 |
|
33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of
shares |
|
|
|
|
|
|
|
|
|
|
|
|
174.4 |
|
|
174.9 |
|
|
(0.5) |
|
- |
|
outstanding (millions) |
|
|
174.9 |
|
|
174.6 |
|
|
0.3 |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of diluted shares |
|
|
|
|
|
|
|
|
|
|
|
|
175.9 |
|
|
176.3 |
|
|
(0.4) |
|
- |
|
outstanding (millions) |
|
|
176.5 |
|
|
176.1 |
|
|
0.4 |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign Exchange |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average foreign
exchange rate |
|
|
|
|
|
|
|
|
|
|
|
|
0.91 |
|
|
0.98 |
|
|
0.07 |
|
7 |
|
(US$/Canadian$) |
|
|
0.91 |
|
|
0.99 |
|
|
0.08 |
|
8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average foreign
exchange rate |
|
|
|
|
|
|
|
|
|
|
|
|
1.10 |
|
|
1.02 |
|
|
0.08 |
|
8 |
|
(Canadian$/US$) |
|
|
1.10 |
|
|
1.01 |
|
|
0.09 |
|
9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Billings to third
parties for the recovery of costs incurred for freight car repairs
and servicing have been reclassified from Purchased services
and other to Compensation and benefits and Materials within
Operating expenses. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of Rail Data |
|
|
|
|
|
|
|
|
|
|
|
Second Quarter |
|
|
|
Year-to-date
|
|
2014 |
|
|
2013 |
|
|
Fav/(Unfav) |
|
% |
|
|
|
|
2014 |
|
|
2013 |
|
|
Fav/(Unfav) |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commodity Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Freight Revenues
(millions) |
|
|
|
|
|
|
|
|
|
|
|
$ |
252 |
|
$ |
191 |
|
$ |
61 |
|
32 |
|
- Canadian
Grain |
|
$ |
473 |
|
$ |
394 |
|
$ |
79 |
|
20 |
|
115 |
|
|
91 |
|
|
24 |
|
26 |
|
- U.S. Grain |
|
|
221 |
|
|
202 |
|
|
19 |
|
9 |
|
165 |
|
|
144 |
|
|
21 |
|
15 |
|
- Coal |
|
|
313 |
|
|
293 |
|
|
20 |
|
7 |
|
101 |
|
|
95 |
|
|
6 |
|
6 |
|
- Potash |
|
|
181 |
|
|
177 |
|
|
4 |
|
2 |
|
64 |
|
|
68 |
|
|
(4) |
|
(6) |
|
- Fertilizers and
sulphur |
|
|
118 |
|
|
138 |
|
|
(20) |
|
(14) |
|
52 |
|
|
53 |
|
|
(1) |
|
(2) |
|
- Forest
products |
|
|
100 |
|
|
106 |
|
|
(6) |
|
(6) |
|
155 |
|
|
138 |
|
|
17 |
|
12 |
|
- Chemicals and
plastics |
|
|
302 |
|
|
277 |
|
|
25 |
|
9 |
|
114 |
|
|
97 |
|
|
17 |
|
18 |
|
- Crude |
|
|
218 |
|
|
189 |
|
|
29 |
|
15 |
|
170 |
|
|
144 |
|
|
26 |
|
18 |
|
- Metals, minerals,
and consumer products |
|
|
331 |
|
|
285 |
|
|
46 |
|
16 |
|
104 |
|
|
106 |
|
|
(2) |
|
(2) |
|
- Automotive |
|
|
192 |
|
|
203 |
|
|
(11) |
|
(5) |
|
200 |
|
|
171 |
|
|
29 |
|
17 |
|
- Domestic
intermodal |
|
|
377 |
|
|
341 |
|
|
36 |
|
11 |
|
150 |
|
|
160 |
|
|
(10) |
|
(6) |
|
- International
intermodal |
|
|
290 |
|
|
312 |
|
|
(22) |
|
(7) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,642 |
|
$ |
1,458 |
|
$ |
184 |
|
13 |
|
Total Freight Revenues |
|
$ |
3,116 |
|
$ |
2,917 |
|
$ |
199 |
|
7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Millions of Revenue Ton-Miles
(RTM) |
|
|
|
|
|
|
|
|
|
|
|
|
7,074 |
|
|
5,272 |
|
|
1,802 |
|
34 |
|
- Canadian
Grain |
|
|
12,920 |
|
|
10,647 |
|
|
2,273 |
|
21 |
|
2,679 |
|
|
2,411 |
|
|
268 |
|
11 |
|
- U.S.
Grain |
|
|
5,218 |
|
|
5,466 |
|
|
(248) |
|
(5) |
|
5,941 |
|
|
5,316 |
|
|
625 |
|
12 |
|
- Coal |
|
|
11,382 |
|
|
10,956 |
|
|
426 |
|
4 |
|
4,114 |
|
|
4,254 |
|
|
(140) |
|
(3) |
|
- Potash |
|
|
7,407 |
|
|
7,890 |
|
|
(483) |
|
(6) |
|
1,130 |
|
|
1,352 |
|
|
(222) |
|
(16) |
|
- Fertilizers and
sulphur |
|
|
2,204 |
|
|
2,668 |
|
|
(464) |
|
(17) |
|
1,003 |
|
|
1,267 |
|
|
(264) |
|
(21) |
|
- Forest
products |
|
|
1,923 |
|
|
2,490 |
|
|
(567) |
|
(23) |
|
3,326 |
|
|
3,435 |
|
|
(109) |
|
(3) |
|
- Chemicals and
plastics |
|
|
6,532 |
|
|
6,969 |
|
|
(437) |
|
(6) |
|
3,816 |
|
|
3,640 |
|
|
176 |
|
5 |
|
- Crude |
|
|
7,174 |
|
|
7,131 |
|
|
43 |
|
1 |
|
2,698 |
|
|
2,339 |
|
|
359 |
|
15 |
|
- Metals, minerals,
and consumer products |
|
|
5,411 |
|
|
4,850 |
|
|
561 |
|
12 |
|
597 |
|
|
629 |
|
|
(32) |
|
(5) |
|
- Automotive |
|
|
1,111 |
|
|
1,233 |
|
|
(122) |
|
(10) |
|
3,003 |
|
|
2,546 |
|
|
457 |
|
18 |
|
- Domestic
intermodal |
|
|
5,637 |
|
|
5,064 |
|
|
573 |
|
11 |
|
3,048 |
|
|
3,530 |
|
|
(482) |
|
(14) |
|
- International
intermodal |
|
|
5,885 |
|
|
6,790 |
|
|
(905) |
|
(13) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
38,429 |
|
|
35,991 |
|
|
2,438 |
|
7 |
|
Total RTMs |
|
|
72,804 |
|
|
72,154 |
|
|
650 |
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Freight Revenue per RTM (cents)
|
|
|
|
|
|
|
|
|
|
|
|
|
3.56 |
|
|
3.61 |
|
|
(0.05) |
|
(1) |
|
- Canadian
Grain |
|
|
3.66 |
|
|
3.69 |
|
|
(0.03) |
|
(1) |
|
4.31 |
|
|
3.77 |
|
|
0.54 |
|
14 |
|
- U.S. Grain |
|
|
4.24 |
|
|
3.70 |
|
|
0.54 |
|
15 |
|
2.79 |
|
|
2.70 |
|
|
0.09 |
|
3 |
|
- Coal |
|
|
2.75 |
|
|
2.67 |
|
|
0.08 |
|
3 |
|
2.46 |
|
|
2.24 |
|
|
0.22 |
|
10 |
|
- Potash |
|
|
2.44 |
|
|
2.24 |
|
|
0.20 |
|
9 |
|
5.61 |
|
|
5.01 |
|
|
0.60 |
|
12 |
|
- Fertilizers and
sulphur |
|
|
5.35 |
|
|
5.16 |
|
|
0.19 |
|
4 |
|
5.20 |
|
|
4.20 |
|
|
1.00 |
|
24 |
|
- Forest
products |
|
|
5.19 |
|
|
4.26 |
|
|
0.93 |
|
22 |
|
4.67 |
|
|
3.98 |
|
|
0.69 |
|
17 |
|
- Chemicals and
plastics |
|
|
4.63 |
|
|
3.94 |
|
|
0.69 |
|
18 |
|
2.99 |
|
|
2.67 |
|
|
0.32 |
|
12 |
|
- Crude |
|
|
3.04 |
|
|
2.65 |
|
|
0.39 |
|
15 |
|
6.27 |
|
|
6.22 |
|
|
0.05 |
|
1 |
|
- Metals, minerals,
and consumer products |
|
|
6.11 |
|
|
5.92 |
|
|
0.19 |
|
3 |
|
17.37 |
|
|
16.87 |
|
|
0.50 |
|
3 |
|
- Automotive |
|
|
17.31 |
|
|
16.49 |
|
|
0.82 |
|
5 |
|
6.66 |
|
|
6.72 |
|
|
(0.06) |
|
(1) |
|
- Domestic
intermodal |
|
|
6.69 |
|
|
6.73 |
|
|
(0.04) |
|
(1) |
|
4.94 |
|
|
4.52 |
|
|
0.42 |
|
9 |
|
- International
intermodal |
|
|
4.93 |
|
|
4.60 |
|
|
0.33 |
|
7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.27 |
|
|
4.05 |
|
|
0.22 |
|
5 |
|
Total Freight Revenue per RTM |
|
|
4.28 |
|
|
4.04 |
|
|
0.24 |
|
6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of Rail Data |
|
|
|
|
|
|
|
|
|
|
|
Second Quarter
|
|
|
Year-to-date
|
|
2014 |
|
|
2013 |
|
|
Fav/(Unfav) |
|
% |
|
|
|
|
2014 |
|
|
2013 |
|
|
Fav/(Unfav) |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carloads (thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
78 |
|
|
61 |
|
|
17 |
|
28 |
|
- Canadian
Grain |
|
|
140 |
|
|
120 |
|
|
20 |
|
17 |
|
44 |
|
|
42 |
|
|
2 |
|
5 |
|
- U.S.
Grain |
|
|
83 |
|
|
91 |
|
|
(8) |
|
(9) |
|
82 |
|
|
75 |
|
|
7 |
|
9 |
|
- Coal |
|
|
160 |
|
|
156 |
|
|
4 |
|
3 |
|
33 |
|
|
35 |
|
|
(2) |
|
(6) |
|
- Potash |
|
|
61 |
|
|
65 |
|
|
(4) |
|
(6) |
|
16 |
|
|
19 |
|
|
(3) |
|
(16) |
|
- Fertilizers
and sulphur |
|
|
31 |
|
|
38 |
|
|
(7) |
|
(18) |
|
15 |
|
|
18 |
|
|
(3) |
|
(17) |
|
- Forest
products |
|
|
29 |
|
|
36 |
|
|
(7) |
|
(19) |
|
49 |
|
|
48 |
|
|
1 |
|
2 |
|
- Chemicals and
plastics |
|
|
94 |
|
|
99 |
|
|
(5) |
|
(5) |
|
25 |
|
|
24 |
|
|
1 |
|
4 |
|
- Crude |
|
|
49 |
|
|
46 |
|
|
3 |
|
7 |
|
60 |
|
|
58 |
|
|
2 |
|
3 |
|
- Metals, minerals,
and consumer products |
|
|
116 |
|
|
112 |
|
|
4 |
|
4 |
|
37 |
|
|
38 |
|
|
(1) |
|
(3) |
|
- Automotive |
|
|
67 |
|
|
73 |
|
|
(6) |
|
(8) |
|
110 |
|
|
93 |
|
|
17 |
|
18 |
|
- Domestic
intermodal |
|
|
207 |
|
|
182 |
|
|
25 |
|
14 |
|
140 |
|
|
157 |
|
|
(17) |
|
(11) |
|
- International
intermodal |
|
|
270 |
|
|
309 |
|
|
(39) |
|
(13) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
689 |
|
|
668 |
|
|
21 |
|
3 |
|
Total Carloads |
|
|
1,307 |
|
|
1,327 |
|
|
(20) |
|
(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Freight Revenue per Carload
|
|
|
|
|
|
|
|
|
|
|
|
$ |
3,219 |
|
$ |
3,127 |
|
$ |
92 |
|
3 |
|
- Canadian
Grain |
|
$ |
3,374 |
|
$ |
3,271 |
|
$ |
103 |
|
3 |
|
2,645 |
|
|
2,159 |
|
|
486 |
|
23 |
|
- U.S. Grain |
|
|
2,675 |
|
|
2,225 |
|
|
450 |
|
20 |
|
2,027 |
|
|
1,921 |
|
|
106 |
|
6 |
|
- Coal |
|
|
1,963 |
|
|
1,878 |
|
|
85 |
|
5 |
|
3,046 |
|
|
2,706 |
|
|
340 |
|
13 |
|
- Potash |
|
|
2,983 |
|
|
2,719 |
|
|
264 |
|
10 |
|
3,925 |
|
|
3,609 |
|
|
316 |
|
9 |
|
- Fertilizers
and sulphur |
|
|
3,770 |
|
|
3,593 |
|
|
177 |
|
5 |
|
3,502 |
|
|
2,998 |
|
|
504 |
|
17 |
|
- Forest
products |
|
|
3,452 |
|
|
2,944 |
|
|
508 |
|
17 |
|
3,185 |
|
|
2,809 |
|
|
376 |
|
13 |
|
- Chemicals and
plastics |
|
|
3,213 |
|
|
2,759 |
|
|
454 |
|
16 |
|
4,524 |
|
|
4,095 |
|
|
429 |
|
10 |
|
- Crude |
|
|
4,452 |
|
|
4,122 |
|
|
330 |
|
8 |
|
2,810 |
|
|
2,537 |
|
|
273 |
|
11 |
|
- Metals, minerals,
and consumer products |
|
|
2,839 |
|
|
2,571 |
|
|
268 |
|
10 |
|
2,798 |
|
|
2,759 |
|
|
39 |
|
1 |
|
- Automotive |
|
|
2,850 |
|
|
2,751 |
|
|
99 |
|
4 |
|
1,822 |
|
|
1,839 |
|
|
(17) |
|
(1) |
|
- Domestic
intermodal |
|
|
1,825 |
|
|
1,877 |
|
|
(52) |
|
(3) |
|
1,074 |
|
|
1,017 |
|
|
57 |
|
6 |
|
- International
intermodal |
|
|
1,074 |
|
|
1,011 |
|
|
63 |
|
6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
2,383 |
|
$ |
2,183 |
|
$ |
200 |
|
9 |
|
Total Freight Revenue per
Carload |
|
$ |
2,384 |
|
$ |
2,198 |
|
$ |
186 |
|
8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of Rail
Data |
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter |
|
|
|
|
|
Year-to-date |
|
2014 |
|
|
2013(1) |
|
|
Fav/(Unfav) |
|
% |
|
|
|
|
2014 |
|
|
2013(1) |
|
|
Fav/(Unfav) |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations Performance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
71,333 |
|
|
67,232 |
|
|
4,101 |
|
6 |
|
Freight gross ton-miles
(millions) |
|
|
133,682 |
|
|
134,910 |
|
|
(1,228) |
|
(1) |
|
38,429 |
|
|
35,991 |
|
|
2,438 |
|
7 |
|
Revenue ton-miles (millions) |
|
|
72,804 |
|
|
72,154 |
|
|
650 |
|
1 |
|
9,335 |
|
|
9,645 |
|
|
310 |
|
3 |
|
Train miles (thousands) |
|
|
18,062 |
|
|
19,639 |
|
|
1,577 |
|
8 |
|
8,178 |
|
|
7,471 |
|
|
707 |
|
9 |
|
Average train
weight - excluding local traffic (tons) |
|
|
7,924 |
|
|
7,337 |
|
|
587 |
|
8 |
|
6,880 |
|
|
6,444 |
|
|
436 |
|
7 |
|
Average train length - excluding
local traffic (feet) |
|
|
6,634 |
|
|
6,369 |
|
|
265 |
|
4 |
|
8.6 |
|
|
6.8 |
|
|
(1.8) |
|
(26) |
|
Average terminal dwell -
(hours)(2) |
|
|
9.4 |
|
|
6.7 |
|
|
(2.7) |
|
(40) |
|
18.1 |
|
|
18.6 |
|
|
(0.5) |
|
(3) |
|
Average train speed -
(mph)(3) |
|
|
17.1 |
|
|
18.4 |
|
|
(1.3) |
|
(7) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
228.6 |
|
|
218.0 |
|
|
10.6 |
|
5 |
|
Locomotive
productivity (daily average GTMs/active HP) |
|
|
216.5 |
|
|
211.5 |
|
|
5.0 |
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.00 |
|
|
1.05 |
|
|
0.05 |
|
5 |
|
Fuel efficiency(4) |
|
|
1.05 |
|
|
1.09 |
|
|
0.04 |
|
4 |
|
70.3 |
|
|
69.8 |
|
|
(0.5) |
|
(1) |
|
U.S. gallons of locomotive fuel
consumed (millions)(5) |
|
|
138.7 |
|
|
145.6 |
|
|
6.9 |
|
5 |
|
3.53 |
|
|
3.45 |
|
|
(0.08) |
|
(2) |
|
Average fuel price (U.S. dollars
per U.S. gallon) |
|
|
3.58 |
|
|
3.50 |
|
|
(0.07) |
|
(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14,787 |
|
|
15,471 |
|
|
684 |
|
4 |
|
Total employees
(average)(6) |
|
|
14,516 |
|
|
15,196 |
|
|
680 |
|
4 |
|
14,736 |
|
|
15,355 |
|
|
619 |
|
4 |
|
Total employees (end of
period)(6) |
|
|
14,736 |
|
|
15,355 |
|
|
619 |
|
4 |
|
14,960 |
|
|
16,053 |
|
|
1,093 |
|
7 |
|
Workforce (end of
period)(7) |
|
|
14,960 |
|
|
16,053 |
|
|
1,093 |
|
7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Safety |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.84 |
|
|
1.51 |
|
|
(0.33) |
|
(22) |
|
FRA personal injuries per 200,000
employee-hours |
|
|
1.73 |
|
|
1.62 |
|
|
(0.11) |
|
(7) |
|
1.03 |
|
|
1.94 |
|
|
0.91 |
|
47 |
|
FRA train accidents per million
train-miles |
|
|
1.08 |
|
|
1.95 |
|
|
0.87 |
|
45 |
(1) |
Certain prior period figures have
been revised to conform with current presentation or have been
updated to reflect new information. |
(2) |
Incorporates a new reporting
definition where average terminal dwell measures the average time a
freight car resides within terminal boundaries. |
(3) |
Incorporates a new reporting
definition where average train speed measures the line-haul
movement from origin to destination including terminal dwell
hours. |
(4) |
Fuel efficiency is defined as U.S.
gallons of locomotive fuel consumed per 1,000 GTMs - freight and
yard. |
(5) |
Includes gallons of fuel consumed
from freight, yard and commuter service but excludes fuel used in
capital projects and other non-freight activities. |
(6) |
An employee is defined as an
individual, including trainees, who has worked more than 40 hours
in a standard biweekly pay period. This excludes part time
employees, contractors, and consultants. |
(7) |
Workforce is defined as total
employees plus part time employees, contractors, and
consultants. |
SOURCE Canadian Pacific