Chapter 3
Long-Term Assets
142
Canadian Pacific Railway
The long-term asset portion of Canadian Pacific Railway’s Balance Sheet is presented
underneath the current asset portion, as shown below.
CONSOLIDATED BALANCE SHEETS
As at December 31 (in millions of Canadian dollars except common shares)
2014
2013
Assets
Current assets
Cash and cash equivalents (Note 11)
$ 226
$ 476
Restricted cash and cash equivalents (Note 19)
–
411
Accounts receivable, net (Note 12)
702
580
Materials and supplies
177
165
Deferred income taxes (Note 7)
56
344
Other current assets
116
53
1,277
2,029
Investments (Note 14)
112
92
Properties (Note 15)
14,438
13,327
Assets held for sale (Notes 3 and 13)
182
222
Goodwill and intangible assets (Note 16)
176
162
Pension asset (Note 24)
304
1,028
Other assets (Notes 17 and 32)
151
200
Total assets
$ 16,640
$ 17,060
Liabilities and shareholders’ equity
Current liabilities
Accounts payable and accrued liabilities (Note 18)
$ 1,277
$ 1,189
Long-term debt maturing within one year (Note 19)
134
189
1,411
1,378
Pension and other benefit liabilities (Note 24)
755
657
Other long-term liabilities (Note 21)
432
338
Long-term debt (Note 19)
5,659
4,687
Deferred income taxes (Note 7)
2,773
2,903
Total liabilities
11,030
9,963
Shareholders’ equity
Share capital (Note 23)
2,185
2,240
Authorized unlimited common shares without par value. Issued and outstanding are 166.1 million and 175.4 million
at December 31, 2014 and 2013, respectively.
Authorized unlimited number of first and second preferred shares; none outstanding.
Additional paid-in capital
36
34
Accumulated other comprehensive loss (Note 9)
(2,219)
(1,503)
Retained earnings
5,608
6,326
5,610
7,097
Total liabilities and shareholders’ equity
$ 16,640
$ 17,060
Commitments and contingencies (Note 27)
See Notes to Consolidated Financial Statements.
Approved on behalf of the Board:
/s/ Gary F. Colter
/s/ Isabelle Courville
Gary F. Colter, Director,
Isabelle Courville, Director,
Chair of the Board
Chair of the Audit Committee
CP ANNUAL REPORT | 2014
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Below is Canadian Pacific Railway’s Note 15.
(in millions of Canadian dollars)
2014
2013
Cash
$ 226
$ 109
Short-term investments:
Deposits with financial institutions
–
367
Total cash and cash equivalents
$ 226
$ 476
12 Accounts receivable, net
(in millions of Canadian dollars)
2014
2013
Freight
$ 535
$ 408
Non-freight
189
192
724
600
Allowance for doubtful accounts
(22)
(20)
Total accounts receivable, net
$ 702
$ 580
The Company maintains an allowance for doubtful accounts based on expected collectability of accounts receivable. Credit losses are based on
specific identification of u collectible accounts, the application of historical percentages by aging category and an assessment of the current
economic environment. At December 31, 2014, allowances of $22 million (2013 – $20 million) were recorded in “Accounts receivable, net”. During
2014, provisions of $2 million of accounts receivable (2013 – $3 million; 2012 – $3 million) were recorded within “Purchased services and other”.
13 Assets held for sale
On Novemb r 17, 2014, the Company announced a proposed agreement with Norfolk Southern Corporation (“NS”) for the sale of approximately
283 miles of the Delaware and Hudson Railway Company, Inc.’s line between Sunbury, Pennsylvania, and Schenectady, New York. The assets
expected to be sold to NS upon completion of this transaction have been classified as “Assets held for sale” on the Company’s Consolidated
Balance Sheets. The assets continue to be reported at their carrying value as this is lower than their expected fair value. The sale to NS, when
agreed, will be subject to regulatory approval by the STB and is expected to close in 2015.
14 Investments
(in millions of Canadian dollars)
2014
2013
Rail inve tments accounted for on an equity basis
$ 82
$ 7
Other investments
30
25
Total inve tments
$ 112
$ 92
15 Properties
2014
2014
2013
(in millions of Canadian dollars)
Average
annual depreciation
rate
Cost
Accumulated
depreciation
Net book
value
Cost
Accumulated
depreciation
Net book
value
Track and roadway
2.5%
$ 14,515
$ 4,126 $ 10,389
$ 13,459 $ 3,877 $ 9,582
Buildings
3.1%
571
150
421
535
138
397
Rolling stock
2.3%
3,737
1,414
2,323
3,466
1,338
2,128
Information systems
(1)
12.4%
631
297
334
679
338
341
Other
4.5%
1,489
518
971
1,372
493
879
Total
$ 20,943
$ 6,505 $ 14,438
$ 19,511 $ 6,184 $ 13,327
(1)
D ring 2014, CP capitalized costs attribut ble to the esign and development of internal-use software in the amount of $69 million (2013 – $85 million;
2012 – $105 million). Current year depreciation expense related to internal use software was $70 million (2013 – $84 million; 2012 – $78 million).
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