Record full-year earnings -- 2015 adjusted diluted EPS rose
18% to C$4.44 (1)
MONTREAL, Jan. 26, 2016 /PRNewswire/ - CN (TSX: CNR) (NYSE:
CNI) today reported its financial and operating results for the
fourth quarter and year ended Dec. 31,
2015.
Fourth-quarter 2015 financial highlights
- Net income increased 11 per cent to C$941 million, while diluted EPS increased 15 per
cent to C$1.18.
- Operating income increased seven per cent to C$1,354 million.
- Revenues decreased by one per cent to C$3,166 million. Carloadings declined eight per
cent, and revenue ton-miles declined five per cent.
- The operating ratio improved by 3.5 points to 57.2 per
cent.
Full-year 2015 financial highlights
- Net income increased 12 per cent to C$3,538 million, with diluted EPS rising 14 per
cent to C$4.39.
- Adjusted net income increased 16 per cent to C$3,580 million, while adjusted diluted EPS
increased 18 per cent to C$4.44.
(1)
- Operating income rose 14 per cent to C$5,266 million.
- Revenues increased four per cent to C$12,611 million. Carloadings declined two per
cent, and revenue ton-miles decreased three per cent.
- The operating ratio for 2015 improved by 3.7 points to 58.2 per
cent.
- Free cash flow was a record C$2,373
million, compared with C$2,220
million for 2014. (1)
Claude Mongeau,
president and chief executive officer, said: "CN generated strong
fourth-quarter and full-year 2015 results despite the weak volume
environment. Our solid performance is testament to the strength of
CN's franchise and diversified portfolio of businesses. I am
particularly proud that CN's team of railroaders quickly
recalibrated resources to respond to weaker volumes, while
protecting customer service."
2016 outlook, increased dividend
(2)
Mongeau said: "Although the economic
environment remains challenging, CN will continue to leverage its
franchise strength and industry-leading efficiency. For 2016, the
Company expects to deliver mid-single digit EPS growth over
adjusted diluted 2015 EPS of C$4.44.
(1) CN will continue to invest in the safety and
efficiency of its network, with a 2016 capital investment program
of approximately C$2.9 billion,
including the negative impact of foreign exchange and increased
spending for Positive Train Control technology.
"Given CN's strong balance sheet and solid
financial prospects, I am pleased to announce that the Company's
Board of Directors today approved a 20 per cent increase in CN's
2016 quarterly common-share dividend. CN has increased its dividend
per share by 17 per cent per year on average since its
privatization in 1995 and continues to move towards a target payout
ratio of 35 per cent."
Fourth-quarter 2015 revenues, traffic volumes
and expenses
Revenues for the quarter decreased by one per
cent to C$3,166 million. Revenues
increased for automotive (13 per cent), forest products (12 per
cent), intermodal (five per cent), and grain and fertilizers (one
per cent). Revenues declined for metals and minerals (21 per cent),
coal (16 per cent), and petroleum and chemicals (four per
cent).
The decrease in total revenues was mainly
attributable to reduced shipments of energy-related commodities due
to a reduction in oil and gas activities, lower volumes of
semi-finished steel products and short-haul iron ore, decreased
shipments of coal due to weaker North American and global demand,
and lower U.S. grain exports via the Gulf
of Mexico; as well as a lower applicable fuel surcharge
rate. These factors were partly offset by the positive translation
impact of the weaker Canadian dollar on U.S.-dollar-denominated
revenues, freight rate increases, and solid overseas intermodal
demand.
Carloadings for the quarter declined eight per cent to 1,325
thousand.
Revenue ton-miles (RTMs), measuring the relative
weight and distance of rail freight transported by CN, declined by
five per cent, while rail freight revenue per RTM, a measurement of
yield defined as revenue earned on the movement of a ton of freight
over one mile, increased by five per cent.
Operating expenses for the quarter decreased by
seven per cent to C$1,812 million.
The decrease was primarily due to lower fuel expense, lower
accident-related costs and cost-management efforts, partly offset
by the negative translation impact of the weaker Canadian dollar on
U.S.-dollar-denominated expenses.
Full-year 2015 revenues, traffic volumes and
expenses
Revenues for 2015 increased four per cent to C$12,611 million. Revenues increased for
automotive (16 per cent), forest products (13 per cent), intermodal
(five per cent), grain and fertilizers (four per cent), and
petroleum and chemicals (four per cent). Revenues declined for coal
(17 per cent) and metals and minerals (three per cent).
The rise in total revenues was mainly
attributable to the positive translation impact of the weaker
Canadian dollar on U.S.-dollar-denominated revenues; freight rate
increases; and solid overseas intermodal demand, higher volumes of
finished vehicle traffic, and increased shipments of lumber and
panels to U.S. markets. These factors were partly offset by a lower
applicable fuel surcharge rate; and decreased shipments of
energy-related commodities including crude oil, frac sand and
drilling pipe, lower volumes of semi-finished steel products and
short-haul iron ore, reduced shipments of coal due to weaker North
American and global demand, as well as lower U.S. grain exports via
the Gulf of Mexico.
Carloadings declined two per cent to 5,485 thousand.
RTMs decreased by three per cent. Rail freight
revenue per RTM increased eight per cent over 2014, driven by the
positive translation impact of the weaker Canadian dollar and
freight rate increases, partly offset by a significant increase in
the average length of haul, particularly in the second half of the
year, and a lower applicable fuel surcharge rate.
Operating expenses for 2015 decreased by two per
cent to C$7,345 million. The decrease
was mainly due to lower fuel expense and cost-management efforts,
partly offset by the negative translation impact of a weaker
Canadian dollar on U.S.-dollar-denominated expenses.
The operating ratio was 58.2 per cent in 2015, an
improvement of 3.7 points over the 2014 operating ratio of 61.9 per
cent.
Foreign currency impact on
results
Although CN reports its earnings in Canadian
dollars, a large portion of its revenues and expenses is
denominated in U.S. dollars. As such, the Company's results are
affected by exchange-rate fluctuations. On a constant currency
basis that excludes the impact of fluctuations in foreign currency
exchange rates, CN's net income for the three months and year ended
Dec. 31, 2015, would have been lower
by C$87 million (C$0.11 per diluted share) and C$314 million (C$0.39 per diluted share), respectively.
(1)
Forward-Looking Statements
Certain
information included in this news release constitutes
"forward-looking statements" within the meaning of the United
States Private Securities Litigation Reform Act of 1995 and under
Canadian securities laws. CN cautions that, by their nature, these
forward-looking statements involve risks, uncertainties and
assumptions. The Company cautions that its assumptions may not
materialize and that current economic conditions render such
assumptions, although reasonable at the time they were made,
subject to greater uncertainty. Such forward-looking statements are
not guarantees of future performance and involve known and unknown
risks, uncertainties and other factors which may cause the actual
results or performance of the Company or the rail industry to be
materially different from the outlook or any future results or
performance implied by such statements. To the extent that CN has
provided non-GAAP financial measures in its outlook, the Company
may not be able to provide a reconciliation to the GAAP measures,
due to unknown variables and uncertainty related to future results.
Key assumptions used in determining forward-looking information are
set forth below.
2016 key assumptions
CN has
made a number of economic and market assumptions in preparing its
2016 outlook. The Company is assuming that North American
industrial production for the year will increase by approximately
one per cent and assumes U.S. housing starts in the range of 1.2
million units and U.S. motor vehicle sales of approximately 17.5
million units. For the 2015/2016 crop year, the Canadian grain crop
was in line with the five-year average and the U.S. grain crop was
above the five-year average. The Company assumes that both Canadian
and U.S. 2016/2017 grain crops will be in line with their
respective five-year averages. With these assumptions, CN assumes
total carloads for all freight categories in 2016 will be slightly
negative versus 2015. CN expects continued pricing improvement
above inflation. CN assumes that in 2016 the value of the Canadian
dollar in U.S. currency will be in the range of $0.70 to $0.75, and that the average price of
crude oil (West Texas Intermediate) will be in the range of
US$30 to US$40 per barrel. In 2016,
CN plans to invest approximately C$2.9
billion in its capital program, of which C$1.5 billion is targeted toward track
infrastructure.
Important risk factors that could affect the
forward-looking statements include, but are not limited to, the
effects of general economic and business conditions, industry
competition, inflation, currency and interest rate fluctuations,
changes in fuel prices, legislative and/or regulatory developments,
compliance with environmental laws and regulations, actions by
regulators, various events which could disrupt operations,
including natural events such as severe weather, droughts, floods
and earthquakes, labor negotiations and disruptions, environmental
claims, uncertainties of investigations, proceedings or other types
of claims and litigation, risks and liabilities arising from
derailments, and other risks detailed from time to time in reports
filed by CN with securities regulators in Canada and the
United States. Reference should be made to "Management's
Discussion and Analysis" in CN's annual and interim reports, Annual
Information Form and Form 40-F filed with Canadian and U.S.
securities regulators, available on CN's website, for a summary of
major risk factors.
CN assumes no obligation to update or revise
forward-looking statements to reflect future events, changes in
circumstances, or changes in beliefs, unless required by applicable
Canadian securities laws. In the event CN does update any
forward-looking statement, no inference should be made that CN will
make additional updates with respect to that statement, related
matters, or any other forward-looking statement.
1) See discussion
and reconciliation of non-GAAP adjusted performance measures in the
attached supplementary schedule, Non-GAAP Measures.
2) See
Forward-Looking statements for a summary of the key assumptions and
risks regarding CN's 2016 outlook.
CN is a true backbone of the economy whose team
of approximately 25,000 railroaders transports more than
C$250 billion worth of goods annually
for a wide range of business sectors, ranging from resource
products to manufactured products to consumer goods, across a rail
network of approximately 20,000 route-miles spanning Canada and mid-America. CN – Canadian National
Railway Company, along with its operating railway subsidiaries –
serves the cities and ports of Vancouver, Prince
Rupert, B.C., Montreal,
Halifax, New Orleans, and Mobile, Ala., and the metropolitan areas of
Toronto, Edmonton, Winnipeg, Calgary, Chicago, Memphis, Detroit, Duluth,
Minn./Superior, Wis., and
Jackson, Miss., with connections
to all points in North America.
For more information about CN, visit the Company's website at
www.cn.ca.
Selected Railroad Statistics - unaudited
|
|
|
Three months ended
December 31
|
|
|
Year ended
December 31
|
|
|
|
2015
|
2014
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
Financial
measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key financial
performance indicators (1)
|
|
|
|
|
|
|
|
|
|
Total revenues ($
millions)
|
|
|
3,166
|
3,207
|
|
|
12,611
|
|
12,134
|
Rail freight revenues
($ millions)
|
|
|
2,987
|
3,015
|
|
|
11,905
|
|
11,455
|
Operating income
($ millions)
|
|
|
1,354
|
1,260
|
|
|
5,266
|
|
4,624
|
Net income ($
millions)
|
|
|
941
|
844
|
|
|
3,538
|
|
3,167
|
Diluted earnings per
share ($)
|
|
|
1.18
|
1.03
|
|
|
4.39
|
|
3.85
|
Adjusted diluted
earnings per share ($) (2)
|
|
|
1.18
|
1.03
|
|
|
4.44
|
|
3.76
|
Free cash flow ($
millions) (2)
|
|
|
632
|
175
|
|
|
2,373
|
|
2,220
|
Gross property
additions ($ millions)
|
|
|
642
|
947
|
|
|
2,706
|
|
2,297
|
Share repurchases
($ millions)
|
|
|
500
|
410
|
|
|
1,750
|
|
1,505
|
Dividends per share
($)
|
|
|
0.3125
|
0.2500
|
|
|
1.2500
|
|
1.0000
|
|
|
|
|
|
|
|
|
|
|
Financial
position (1)
|
|
|
|
|
|
|
|
|
|
Total assets ($
millions) (3)
|
|
|
36,402
|
31,687
|
|
|
36,402
|
|
31,687
|
Total liabilities
($ millions) (3)
|
|
|
21,452
|
18,217
|
|
|
21,452
|
|
18,217
|
Shareholders' equity
($ millions)
|
|
|
14,950
|
13,470
|
|
|
14,950
|
|
13,470
|
|
|
|
|
|
|
|
|
|
|
Financial
ratio
|
|
|
|
|
|
|
|
|
|
Operating ratio
(%)
|
|
|
57.2
|
60.7
|
|
|
58.2
|
|
61.9
|
|
|
|
|
|
|
|
|
|
|
Operational
measures (4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statistical
operating data
|
|
|
|
|
|
|
|
|
|
Gross ton miles
(GTMs) (millions)
|
|
|
110,245
|
115,698
|
|
|
442,084
|
|
448,765
|
Revenue ton
miles (RTMs) (millions)
|
|
|
56,534
|
59,777
|
|
|
224,710
|
|
232,138
|
Carloads
(thousands)
|
|
|
1,325
|
1,448
|
|
|
5,485
|
|
5,625
|
Route miles
(includes Canada and the U.S.)
|
|
|
19,600
|
19,600
|
|
|
19,600
|
|
19,600
|
Employees (end of
period)
|
|
|
23,172
|
25,530
|
|
|
23,172
|
|
25,530
|
Employees (average
for the period)
|
|
|
23,583
|
25,304
|
|
|
24,575
|
|
24,635
|
|
|
|
|
|
|
|
|
|
|
Key operating
measures
|
|
|
|
|
|
|
|
|
|
Rail freight revenue
per RTM (cents)
|
|
|
5.28
|
5.04
|
|
|
5.30
|
|
4.93
|
Rail freight revenue
per carload ($)
|
|
|
2,254
|
2,082
|
|
|
2,170
|
|
2,036
|
GTMs per average
number of employees (thousands)
|
|
|
4,675
|
4,572
|
|
|
17,989
|
|
18,217
|
Operating expenses
per GTM (cents)
|
|
|
1.64
|
1.68
|
|
|
1.66
|
|
1.67
|
Labor and fringe
benefits expense per GTM (cents)
|
|
|
0.55
|
0.51
|
|
|
0.54
|
|
0.52
|
Diesel fuel consumed
(US gallons in millions)
|
|
|
105.9
|
113.2
|
|
|
425.0
|
|
440.5
|
Average fuel price
($ per US gallon)
|
|
|
2.54
|
3.48
|
|
|
2.68
|
|
3.72
|
GTMs per US gallon of
fuel consumed
|
|
|
1,041
|
1,022
|
|
|
1,040
|
|
1,019
|
Terminal dwell
(hours)
|
|
|
14.3
|
16.9
|
|
|
15.0
|
|
16.9
|
Train velocity
(miles per hour)
|
|
|
27.4
|
26.1
|
|
|
26.3
|
|
25.7
|
|
|
|
|
|
|
|
|
|
|
Safety
indicators (5)
|
|
|
|
|
|
|
|
|
|
Injury frequency rate
(per 200,000 person hours)
|
|
|
1.55
|
1.55
|
|
|
1.63
|
|
1.81
|
Accident rate (per
million train miles)
|
|
|
1.48
|
2.83
|
|
|
2.06
|
|
2.73
|
(1)
|
Amounts expressed
in Canadian dollars and prepared in accordance with United States
generally accepted accounting principles, unless otherwise
noted.
|
(2)
|
See supplementary
schedule entitled Non-GAAP Measures for an explanation of this
non-GAAP measure.
|
(3)
|
As a result of the
retrospective adoption of new accounting standards in the fourth
quarter of 2015, certain 2014 balances have been restated.
See Note 2 – Accounting changes to CN's 2015
unaudited Interim Consolidated Financial Statements
for additional information.
|
(4)
|
Statistical
operating data, key operating measures and safety indicators are
based on estimated data available at such time and are subject to
change as more complete information becomes available, as such,
certain of the comparative data have been restated. Definitions of
these indicators are provided on our website, www.cn.ca/glossary.
|
(5)
|
Based on Federal
Railroad Administration (FRA) reporting criteria.
|
Supplementary Information - unaudited
|
|
Three months ended
December 31
|
|
Year ended
December 31
|
|
|
2015
|
2014
|
% Change
Fav (Unfav)
|
% Change
at constant
currency Fav (Unfav)
(2)
|
|
2015
|
2014
|
% Change
Fav (Unfav)
|
% Change at
constant
currency Fav (Unfav)
(2)
|
Revenues ($
millions) (1)
|
|
|
|
|
|
|
|
|
|
|
Petroleum and
chemicals
|
|
604
|
628
|
(4%)
|
(13%)
|
|
2,442
|
2,354
|
4%
|
(6%)
|
Metals and
minerals
|
|
332
|
418
|
(21%)
|
(29%)
|
|
1,437
|
1,484
|
(3%)
|
(13%)
|
Forest
products
|
|
445
|
398
|
12%
|
(1%)
|
|
1,728
|
1,523
|
13%
|
2%
|
Coal
|
|
144
|
172
|
(16%)
|
(24%)
|
|
612
|
740
|
(17%)
|
(25%)
|
Grain and
fertilizers
|
|
568
|
560
|
1%
|
(6%)
|
|
2,071
|
1,986
|
4%
|
(3%)
|
Intermodal
|
|
715
|
680
|
5%
|
(1%)
|
|
2,896
|
2,748
|
5%
|
-
|
Automotive
|
|
179
|
159
|
13%
|
(1%)
|
|
719
|
620
|
16%
|
4%
|
Total rail freight
revenues
|
|
2,987
|
3,015
|
(1%)
|
(10%)
|
|
11,905
|
11,455
|
4%
|
(4%)
|
Other
revenues
|
|
179
|
192
|
(7%)
|
(17%)
|
|
706
|
679
|
4%
|
(6%)
|
Total
revenues
|
|
3,166
|
3,207
|
(1%)
|
(10%)
|
|
12,611
|
12,134
|
4%
|
(5%)
|
Revenue ton miles
(RTMs) (millions)
|
|
|
|
|
|
|
|
|
|
|
Petroleum and
chemicals
|
|
12,616
|
13,935
|
(9%)
|
(9%)
|
|
51,103
|
53,169
|
(4%)
|
(4%)
|
Metals and
minerals
|
|
5,061
|
6,995
|
(28%)
|
(28%)
|
|
21,828
|
24,686
|
(12%)
|
(12%)
|
Forest
products
|
|
7,603
|
7,352
|
3%
|
3%
|
|
30,097
|
29,070
|
4%
|
4%
|
Coal
|
|
3,708
|
4,831
|
(23%)
|
(23%)
|
|
15,956
|
21,147
|
(25%)
|
(25%)
|
Grain and
fertilizers
|
|
13,875
|
13,824
|
-
|
-
|
|
50,001
|
51,326
|
(3%)
|
(3%)
|
Intermodal
|
|
12,837
|
12,004
|
7%
|
7%
|
|
52,144
|
49,581
|
5%
|
5%
|
Automotive
|
|
834
|
836
|
-
|
-
|
|
3,581
|
3,159
|
13%
|
13%
|
Total revenue ton
miles
|
|
56,534
|
59,777
|
(5%)
|
(5%)
|
|
224,710
|
232,138
|
(3%)
|
(3%)
|
Rail freight
revenue / RTM (cents)
|
|
|
|
|
|
|
|
|
|
|
Petroleum and
chemicals
|
|
4.79
|
4.51
|
6%
|
(4%)
|
|
4.78
|
4.43
|
8%
|
(2%)
|
Metals and
minerals
|
|
6.56
|
5.98
|
10%
|
(3%)
|
|
6.58
|
6.01
|
9%
|
(2%)
|
Forest
products
|
|
5.85
|
5.41
|
8%
|
(4%)
|
|
5.74
|
5.24
|
10%
|
(2%)
|
Coal
|
|
3.88
|
3.56
|
9%
|
(1%)
|
|
3.84
|
3.50
|
10%
|
(1%)
|
Grain and
fertilizers
|
|
4.09
|
4.05
|
1%
|
(6%)
|
|
4.14
|
3.87
|
7%
|
-
|
Intermodal
|
|
5.57
|
5.66
|
(2%)
|
(7%)
|
|
5.55
|
5.54
|
-
|
(5%)
|
Automotive
|
|
21.46
|
19.02
|
13%
|
(1%)
|
|
20.08
|
19.63
|
2%
|
(9%)
|
Total rail freight
revenue per RTM
|
|
5.28
|
5.04
|
5%
|
(5%)
|
|
5.30
|
4.93
|
8%
|
(1%)
|
Carloads
(thousands)
|
|
|
|
|
|
|
|
|
|
|
Petroleum and
chemicals
|
|
157
|
166
|
(5%)
|
(5%)
|
|
640
|
655
|
(2%)
|
(2%)
|
Metals and
minerals
|
|
185
|
294
|
(37%)
|
(37%)
|
|
886
|
1,063
|
(17%)
|
(17%)
|
Forest
products
|
|
109
|
109
|
-
|
-
|
|
441
|
433
|
2%
|
2%
|
Coal
|
|
105
|
127
|
(17%)
|
(17%)
|
|
438
|
519
|
(16%)
|
(16%)
|
Grain and
fertilizers
|
|
163
|
175
|
(7%)
|
(7%)
|
|
607
|
640
|
(5%)
|
(5%)
|
Intermodal
|
|
545
|
519
|
5%
|
5%
|
|
2,232
|
2,086
|
7%
|
7%
|
Automotive
|
|
61
|
58
|
5%
|
5%
|
|
241
|
229
|
5%
|
5%
|
Total
carloads
|
|
1,325
|
1,448
|
(8%)
|
(8%)
|
|
5,485
|
5,625
|
(2%)
|
(2%)
|
Rail freight
revenue / carload ($)
|
|
|
|
|
|
|
|
|
|
|
Petroleum and
chemicals
|
|
3,847
|
3,783
|
2%
|
(8%)
|
|
3,816
|
3,594
|
6%
|
(3%)
|
Metals and
minerals
|
|
1,795
|
1,422
|
26%
|
12%
|
|
1,622
|
1,396
|
16%
|
4%
|
Forest
products
|
|
4,083
|
3,651
|
12%
|
(1%)
|
|
3,918
|
3,517
|
11%
|
-
|
Coal
|
|
1,371
|
1,354
|
1%
|
(9%)
|
|
1,397
|
1,426
|
(2%)
|
(11%)
|
Grain and
fertilizers
|
|
3,485
|
3,200
|
9%
|
1%
|
|
3,412
|
3,103
|
10%
|
3%
|
Intermodal
|
|
1,312
|
1,310
|
-
|
(6%)
|
|
1,297
|
1,317
|
(2%)
|
(7%)
|
Automotive
|
|
2,934
|
2,741
|
7%
|
(6%)
|
|
2,983
|
2,707
|
10%
|
(1%)
|
Total rail freight
revenue per carload
|
|
2,254
|
2,082
|
8%
|
(1%)
|
|
2,170
|
2,036
|
7%
|
(2%)
|
Statistical
operating data and related key operating measures are based on
estimated data available at such time and are subject to change as
more complete information becomes available.
|
(1)
|
Amounts expressed
in Canadian dollars.
|
(2)
|
See supplementary
schedule entitled Non-GAAP Measures for an explanation of this
non-GAAP measure.
|
Non-GAAP Measures - unaudited
All financial information included in this
supplementary schedule is expressed in Canadian dollars, unless
otherwise noted.
Adjusted performance measures
Management believes that adjusted net income and
adjusted earnings per share are useful measures of performance that
can facilitate period-to-period comparisons, as they exclude items
that do not necessarily arise as part of the normal day-to-day
operations of Canadian National Railway Company, together with its
wholly-owned subsidiaries, collectively the "Company", and could
distort the analysis of trends in business performance. The
exclusion of such items in adjusted net income and adjusted
earnings per share does not, however, imply that such items are
necessarily non-recurring. These adjusted measures do not have any
standardized meaning prescribed by GAAP and therefore, may not be
comparable to similar measures presented by other companies.
For the three months and year ended December 31, 2015, the Company reported adjusted
net income of $941 million, or
$1.18 per diluted share and
$3,580 million, or $4.44 per diluted share, respectively. The
adjusted figures for the year ended December
31, 2015 exclude a deferred income tax expense of
$42 million ($0.05 per diluted share) resulting from the
enactment of a higher provincial corporate income tax rate.
For the three months and year ended December 31, 2014, the Company reported adjusted
net income of $844 million, or
$1.03 per diluted share and
$3,095 million, or $3.76 per diluted share, respectively. The
adjusted figures for the year ended December
31, 2014 exclude a gain on disposal of the Deux-Montagnes subdivision, including the
Mont-Royal tunnel, together with
the rail fixtures, of $80 million, or
$72 million after-tax ($0.09 per diluted share).
The following table provides a reconciliation of
net income and earnings per share, as reported for the three months
and years ended December 31, 2015 and
2014, to the adjusted performance measures presented herein.
|
|
|
Three months ended
December 31
|
|
Year ended
December 31
|
In millions,
except per share data
|
|
|
|
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
Net income as
reported
|
|
|
|
|
$
|
941
|
$
|
844
|
|
$
|
3,538
|
$
|
3,167
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
income
|
|
|
|
|
|
-
|
|
-
|
|
|
-
|
|
(80)
|
|
Income tax
expense
|
|
|
|
|
|
-
|
|
-
|
|
|
42
|
|
8
|
Adjusted net
income
|
|
|
|
|
$
|
941
|
$
|
844
|
|
$
|
3,580
|
$
|
3,095
|
Basic earnings per
share as reported
|
|
|
|
|
$
|
1.19
|
$
|
1.04
|
|
$
|
4.42
|
$
|
3.86
|
Impact of
adjustments, per share
|
|
|
|
|
|
-
|
|
-
|
|
|
0.05
|
|
(0.09)
|
Adjusted basic
earnings per share
|
|
|
|
|
$
|
1.19
|
$
|
1.04
|
|
$
|
4.47
|
$
|
3.77
|
Diluted earnings per
share as reported
|
|
|
|
|
$
|
1.18
|
$
|
1.03
|
|
$
|
4.39
|
$
|
3.85
|
Impact of
adjustments, per share
|
|
|
|
|
|
-
|
|
-
|
|
|
0.05
|
|
(0.09)
|
Adjusted diluted
earnings per share
|
|
|
|
|
$
|
1.18
|
$
|
1.03
|
|
$
|
4.44
|
$
|
3.76
|
Constant currency
Financial results at constant currency allow
results to be viewed without the impact of fluctuations in foreign
currency exchange rates, thereby facilitating period-to-period
comparisons in the analysis of trends in business performance.
Measures at constant currency are considered non-GAAP measures and
do not have any standardized meaning prescribed by GAAP and
therefore, may not be comparable to similar measures presented by
other companies. Financial results at constant currency are
obtained by translating the current period results denominated in
US dollars at the foreign exchange rates of the comparable period
of the prior year. The average foreign exchange rates were
$1.33 and $1.28 per US$1.00,
respectively, for the three months and year ended December 31, 2015, and $1.14 and $1.10 per
US$1.00, respectively, for the three
months and year ended December 31,
2014.
On a constant currency basis, the Company's net
income for the three months and year ended December 31, 2015 would have been lower by
$87 million ($0.11 per diluted share) and $314 million ($0.39
per diluted share), respectively.
Free cash flow
Free cash flow is a non-GAAP measure that is
reported as a supplementary indicator of the Company's performance.
Management believes that free cash flow is a useful measure of
performance as it demonstrates the Company's ability to generate
cash for debt obligations and for discretionary uses such as
payment of dividends and strategic opportunities. The Company
defines its free cash flow measure as the difference between net
cash provided by operating activities and net cash used in
investing activities; adjusted for changes in restricted cash and
cash equivalents and the impact of major acquisitions, if any. Free
cash flow does not have any standardized meaning prescribed by GAAP
and therefore, may not be comparable to similar measures presented
by other companies.
|
|
Three months ended
December 31
|
|
Year ended
December 31
|
In
millions
|
|
|
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
Net cash provided by
operating activities
|
|
|
|
$
|
1,293
|
$
|
1,135
|
|
$
|
5,140
|
$
|
4,381
|
Net cash used in
investing activities
|
|
|
|
|
(661)
|
|
(956)
|
|
|
(2,827)
|
|
(2,176)
|
Net cash provided
before financing activities
|
|
|
|
|
632
|
|
179
|
|
|
2,313
|
|
2,205
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustment:
Change in restricted cash and cash equivalents
|
|
|
|
|
-
|
|
(4)
|
|
|
60
|
|
15
|
Free cash
flow
|
|
|
|
$
|
632
|
$
|
175
|
|
$
|
2,373
|
$
|
2,220
|
Credit measures
Management believes that the adjusted
debt-to-total capitalization ratio is a useful credit measure that
aims to show the true leverage of the Company. Similarly, the
adjusted debt-to-adjusted earnings before interest, income taxes,
depreciation and amortization (EBITDA) multiple is another useful
credit measure because it reflects the Company's ability to service
its debt. The Company excludes Other income in the calculation of
EBITDA. These measures do not have any standardized meaning
prescribed by GAAP and therefore, may not be comparable to similar
measures presented by other companies.
Adjusted
debt-to-total capitalization ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
2015
|
|
2014
|
Debt-to-total
capitalization ratio (1) (2)
|
|
|
41.1%
|
|
38.3%
|
Add: Impact of
present value of operating lease commitments
(3)
|
|
|
1.4%
|
|
1.7%
|
Adjusted
debt-to-total capitalization ratio
|
|
|
42.5%
|
|
40.0%
|
|
|
|
|
|
|
Adjusted
debt-to-adjusted EBITDA multiple
|
|
|
|
|
|
|
|
|
|
|
|
In millions,
unless otherwise indicated
|
Twelve months
ended December 31,
|
|
2015
|
|
2014
|
Debt
(2)
|
|
$
|
10,427
|
$
|
8,372
|
Add: Present
value of operating lease commitments (3)
|
|
|
607
|
|
607
|
Adjusted
debt
|
|
$
|
11,034
|
$
|
8,979
|
|
|
|
|
|
|
Operating
income
|
|
$
|
5,266
|
$
|
4,624
|
Add:
Depreciation and amortization
|
|
|
1,158
|
|
1,050
|
EBITDA (excluding
Other income)
|
|
|
6,424
|
|
5,674
|
Add: Deemed
interest on operating leases
|
|
|
29
|
|
28
|
Adjusted
EBITDA
|
|
$
|
6,453
|
$
|
5,702
|
Adjusted
debt-to-adjusted EBITDA multiple (times)
|
|
|
1.71
|
|
1.57
|
(1)
|
Debt-to-total
capitalization is calculated as total Long-term debt plus Current
portion of long-term debt, divided by the sum of total
debt plus Total shareholders' equity.
|
(2)
|
As a result of the
retrospective adoption of a new accounting standard in the fourth
quarter of 2015, the 2014 debt balance has been
adjusted and the related financial ratios have been restated. See
Note 2 – Accounting changes to the Company's
2015 unaudited Interim Consolidated Financial
Statements for additional information.
|
(3)
|
The operating
lease commitments have been discounted using the Company's implicit
interest rate for each of the periods presented.
|
The increase in the Company's adjusted
debt-to-total capitalization ratio at December 31, 2015, as compared to 2014, was
mainly due to an increased debt level, reflecting a weaker
Canadian-to-US dollar foreign exchange rate in effect at the
balance sheet date and the net issuance of commercial paper. The
Company's adjusted debt-to-adjusted EBITDA multiple also increased,
which was driven by the increased debt level as at December 31, 2015, partly offset by a higher
operating income earned during 2015, as compared to 2014.
Consolidated Statements of Income - unaudited
|
Three months
ended
|
|
Year
ended
|
|
December
31
|
|
December
31
|
In millions,
except per share data
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
Revenues
|
$
|
3,166
|
|
$
|
3,207
|
|
$
|
12,611
|
|
$
|
12,134
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
Labor and fringe
benefits
|
|
608
|
|
|
592
|
|
|
2,406
|
|
|
2,319
|
Purchased services
and material
|
|
437
|
|
|
442
|
|
|
1,729
|
|
|
1,598
|
Fuel
|
|
304
|
|
|
448
|
|
|
1,285
|
|
|
1,846
|
Depreciation and
amortization
|
|
290
|
|
|
279
|
|
|
1,158
|
|
|
1,050
|
Equipment
rents
|
|
103
|
|
|
85
|
|
|
373
|
|
|
329
|
Casualty and
other
|
|
70
|
|
|
101
|
|
|
394
|
|
|
368
|
Total operating
expenses
|
|
1,812
|
|
|
1,947
|
|
|
7,345
|
|
|
7,510
|
Operating
income
|
|
1,354
|
|
|
1,260
|
|
|
5,266
|
|
|
4,624
|
Interest
expense
|
|
(119)
|
|
|
(94)
|
|
|
(439)
|
|
|
(371)
|
Other
income
|
|
16
|
|
|
13
|
|
|
47
|
|
|
107
|
Income before
income taxes
|
|
1,251
|
|
|
1,179
|
|
|
4,874
|
|
|
4,360
|
Income tax
expense
|
|
(310)
|
|
|
(335)
|
|
|
(1,336)
|
|
|
(1,193)
|
Net
income
|
$
|
941
|
|
$
|
844
|
|
$
|
3,538
|
|
$
|
3,167
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
1.19
|
|
$
|
1.04
|
|
$
|
4.42
|
|
$
|
3.86
|
Diluted
|
$
|
1.18
|
|
$
|
1.03
|
|
$
|
4.39
|
|
$
|
3.85
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
792.4
|
|
|
813.0
|
|
|
800.7
|
|
|
819.9
|
Diluted
|
|
796.3
|
|
|
816.9
|
|
|
805.1
|
|
|
823.5
|
See accompanying
notes to unaudited consolidated financial
statements.
|
Consolidated Statements of Comprehensive Income -
unaudited
|
|
|
|
|
Three months
ended
|
|
|
Year
ended
|
|
|
|
|
|
December
31
|
|
|
December
31
|
In
millions
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
Net income
|
$
|
941
|
|
$
|
844
|
|
$
|
3,538
|
|
$
|
3,167
|
Other
comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
Net gain on foreign
currency translation
|
|
73
|
|
|
36
|
|
|
249
|
|
|
75
|
Net change in pension
and other postretirement benefit plans
|
|
134
|
|
|
(1,090)
|
|
|
306
|
|
|
(995)
|
Amortization of gain
on treasury lock
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(1)
|
Other
comprehensive income (loss) before income taxes
|
|
207
|
|
|
(1,054)
|
|
|
555
|
|
|
(921)
|
Income tax
recovery
|
|
9
|
|
|
326
|
|
|
105
|
|
|
344
|
Other
comprehensive income (loss)
|
|
216
|
|
|
(728)
|
|
|
660
|
|
|
(577)
|
Comprehensive
income
|
$
|
1,157
|
|
$
|
116
|
|
$
|
4,198
|
|
$
|
2,590
|
See accompanying
notes to unaudited consolidated financial
statements.
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Balance Sheets - unaudited
|
December
31
|
|
December
31
|
In
millions
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
153
|
|
$
|
52
|
Restricted cash and
cash equivalents
|
|
523
|
|
|
463
|
Accounts
receivable
|
|
878
|
|
|
928
|
Material and
supplies
|
|
355
|
|
|
335
|
Other
|
|
244
|
|
|
215
|
Total current
assets
|
|
2,153
|
|
|
1,993
|
|
|
|
|
|
|
Properties
|
|
32,624
|
|
|
28,514
|
Pension
asset
|
|
1,305
|
|
|
882
|
Intangible and other
assets
|
|
320
|
|
|
298
|
Total
assets
|
$
|
36,402
|
|
$
|
31,687
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts payable and
other
|
$
|
1,556
|
|
$
|
1,657
|
Current portion of
long-term debt
|
|
1,442
|
|
|
544
|
Total current
liabilities
|
|
2,998
|
|
|
2,201
|
|
|
|
|
|
|
Deferred income
taxes
|
|
8,105
|
|
|
6,834
|
Other liabilities and
deferred credits
|
|
644
|
|
|
704
|
Pension and other
postretirement benefits
|
|
720
|
|
|
650
|
Long-term
debt
|
|
8,985
|
|
|
7,828
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
Common
shares
|
|
3,705
|
|
|
3,718
|
Common shares in
Share Trusts
|
|
(100)
|
|
|
-
|
Additional paid-in
capital
|
|
475
|
|
|
439
|
Accumulated other
comprehensive loss
|
|
(1,767)
|
|
|
(2,427)
|
Retained
earnings
|
|
12,637
|
|
|
11,740
|
Total
shareholders' equity
|
|
14,950
|
|
|
13,470
|
Total
liabilities and shareholders' equity
|
$
|
36,402
|
|
$
|
31,687
|
See accompanying
notes to unaudited financial statements.
|
|
|
|
|
|
Consolidated Statements of Changes in Shareholders' Equity -
unaudited
|
Number
of
|
|
|
|
|
|
Common
|
|
Accumulated
|
|
|
|
|
|
|
common
shares
|
|
|
|
shares
|
|
Additional
|
other
|
|
|
|
Total
|
In
millions
|
Outstanding
|
Share
Trusts
|
|
Common
shares
(1)
|
|
in
Share
Trusts
|
|
paid-in
capital
(1)
|
|
comprehensive
loss
|
|
Retained
earnings
|
|
shareholders'
equity
|
Balance at
December 31, 2013
|
830.6
|
-
|
|
$
|
3,795
|
|
$
|
-
|
|
$
|
220
|
|
$
|
(1,850)
|
|
$
|
10,788
|
|
$
|
12,953
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,167
|
|
|
3,167
|
Stock-based
compensation
|
1.2
|
|
|
|
31
|
|
|
|
|
|
10
|
|
|
|
|
|
|
|
|
41
|
Modification of
stock-based
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
compensation
awards
|
|
|
|
|
|
|
|
|
|
|
209
|
|
|
|
|
|
|
|
|
209
|
Share repurchase
programs
|
(22.4)
|
|
|
|
(108)
|
|
|
|
|
|
|
|
|
|
|
|
(1,397)
|
|
|
(1,505)
|
Other comprehensive
loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(577)
|
|
|
|
|
|
(577)
|
Dividends ($1.00 per
share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(818)
|
|
|
(818)
|
Balance at
December 31, 2014
|
809.4
|
-
|
|
|
3,718
|
|
|
-
|
|
|
439
|
|
|
(2,427)
|
|
|
11,740
|
|
|
13,470
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,538
|
|
|
3,538
|
Stock-based
compensation
|
2.5
|
|
|
|
95
|
|
|
|
|
|
36
|
|
|
|
|
|
(3)
|
|
|
128
|
Share repurchase
programs
|
(23.3)
|
|
|
|
(108)
|
|
|
|
|
|
|
|
|
|
|
|
(1,642)
|
|
|
(1,750)
|
Share purchases by
Share Trusts
|
(1.4)
|
1.4
|
|
|
|
|
|
(100)
|
|
|
|
|
|
|
|
|
|
|
|
(100)
|
Other comprehensive
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
660
|
|
|
|
|
|
660
|
Dividends ($1.25 per
share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(996)
|
|
|
(996)
|
Balance at
December 31, 2015
|
787.2
|
1.4
|
|
$
|
3,705
|
|
$
|
(100)
|
|
$
|
475
|
|
$
|
(1,767)
|
|
$
|
12,637
|
|
$
|
14,950
|
See accompanying
notes to unaudited consolidated financial
statements.
|
(1)
The Company reclassified certain 2013 and 2014 balances from Common
shares to Additional paid-in capital to conform with the 2015
presentation.
|
Consolidated Statements of Cash Flows - unaudited
|
|
Three months
ended
|
|
Year
ended
|
|
|
December
31
|
|
December
31
|
In
millions
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
Operating
activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
941
|
|
$
|
844
|
|
$
|
3,538
|
|
$
|
3,167
|
Adjustments to
reconcile net income to net cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
290
|
|
|
279
|
|
|
1,158
|
|
|
1,050
|
|
|
Deferred income
taxes
|
|
|
237
|
|
|
201
|
|
|
600
|
|
|
416
|
|
|
Gain on disposal of
property
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(80)
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
93
|
|
|
14
|
|
|
188
|
|
|
(59)
|
|
|
Material and
supplies
|
|
|
77
|
|
|
41
|
|
|
4
|
|
|
(51)
|
|
|
Accounts payable and
other
|
|
|
(348)
|
|
|
(196)
|
|
|
(282)
|
|
|
-
|
|
|
Other current
assets
|
|
|
45
|
|
|
(19)
|
|
|
46
|
|
|
5
|
Pensions and other,
net
|
|
|
(42)
|
|
|
(29)
|
|
|
(112)
|
|
|
(67)
|
Net cash provided
by operating activities
|
|
|
1,293
|
|
|
1,135
|
|
|
5,140
|
|
|
4,381
|
Investing
activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Property
additions
|
|
|
(642)
|
|
|
(947)
|
|
|
(2,706)
|
|
|
(2,297)
|
Disposal of
property
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
173
|
Change in restricted
cash and cash equivalents
|
|
|
-
|
|
|
4
|
|
|
(60)
|
|
|
(15)
|
Other, net
|
|
|
(19)
|
|
|
(13)
|
|
|
(61)
|
|
|
(37)
|
Net cash used in
investing activities
|
|
|
(661)
|
|
|
(956)
|
|
|
(2,827)
|
|
|
(2,176)
|
Financing
activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of
debt
|
|
|
-
|
|
|
675
|
|
|
841
|
|
|
1,022
|
Repayment of
debt
|
|
|
(636)
|
|
|
(27)
|
|
|
(752)
|
|
|
(822)
|
Net issuance
(repayment) of commercial paper
|
|
|
306
|
|
|
(350)
|
|
|
451
|
|
|
(277)
|
Common shares issued
for stock options exercised,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
excess tax benefits,
and other
|
|
|
56
|
|
|
6
|
|
|
75
|
|
|
30
|
Repurchase of common
shares
|
|
|
(498)
|
|
|
(410)
|
|
|
(1,742)
|
|
|
(1,505)
|
Purchase of common
shares by Share Trusts
|
|
|
-
|
|
|
-
|
|
|
(100)
|
|
|
-
|
Dividends
paid
|
|
|
(246)
|
|
|
(202)
|
|
|
(996)
|
|
|
(818)
|
Net cash used in
financing activities
|
|
|
(1,018)
|
|
|
(308)
|
|
|
(2,223)
|
|
|
(2,370)
|
Effect of foreign
exchange fluctuations on US
|
|
|
|
|
|
|
|
|
|
|
|
|
|
dollar-denominated
cash and cash equivalents
|
|
|
2
|
|
|
5
|
|
|
11
|
|
|
3
|
Net increase
(decrease) in cash and cash equivalents
|
|
|
(384)
|
|
|
(124)
|
|
|
101
|
|
|
(162)
|
Cash and cash
equivalents, beginning of period
|
|
|
537
|
|
|
176
|
|
|
52
|
|
|
214
|
Cash and cash
equivalents, end of period
|
|
$
|
153
|
|
$
|
52
|
|
$
|
153
|
|
$
|
52
|
Supplemental cash
flow information
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash receipts
from customers and other
|
|
$
|
3,192
|
|
$
|
3,084
|
|
$
|
12,714
|
|
$
|
12,029
|
Net cash payments
for:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee services,
suppliers and other expenses
|
|
|
(1,582)
|
|
|
(1,576)
|
|
|
(6,232)
|
|
|
(6,333)
|
|
Interest
|
|
|
(133)
|
|
|
(112)
|
|
|
(432)
|
|
|
(409)
|
|
Personal injury and
other claims
|
|
|
(15)
|
|
|
(19)
|
|
|
(59)
|
|
|
(57)
|
|
Pensions
|
|
|
(25)
|
|
|
(21)
|
|
|
(126)
|
|
|
(127)
|
|
Income
taxes
|
|
|
(144)
|
|
|
(221)
|
|
|
(725)
|
|
|
(722)
|
Net cash provided
by operating activities
|
|
$
|
1,293
|
|
$
|
1,135
|
|
$
|
5,140
|
|
$
|
4,381
|
See accompanying
notes to unaudited consolidated financial
statements.
|
Notes to Unaudited Consolidated Financial Statements
1 - Basis of presentation
The accompanying unaudited Interim Consolidated
Financial Statements, expressed in Canadian dollars, have been
prepared in accordance with U.S. generally accepted accounting
principles (U.S. GAAP) for interim financial statements.
Accordingly, they do not include all of the disclosures required by
U.S. GAAP for complete financial statements. In management's
opinion, all adjustments (consisting of normal recurring accruals)
considered necessary for fair presentation have been
included.
These unaudited Interim Consolidated Financial
Statements have been prepared using accounting policies consistent
with those used in preparing Canadian National Railway Company's
(the "Company") 2014 Annual Consolidated Financial
Statements, except as disclosed in Note 2 - Accounting
changes, and should be read in conjunction with such statements
and Notes thereto.
2 - Accounting changes
The following recent Accounting Standards Updates
(ASUs) issued by the Financial Accounting Standards Board (FASB)
were adopted by the Company during the current period.
Standard
|
Description
|
Impact
|
ASU 2015-17 Income
Taxes, Balance Sheet Classification of Deferred
Taxes
|
Simplifies the
presentation of deferred income taxes by requiring that deferred
tax liabilities and assets be classified as noncurrent in a
statement of financial position, thus eliminating the requirement
to separate deferred income tax liabilities and assets into current
and noncurrent amounts.
|
The Company adopted
this standard during the fourth quarter of 2015 on a retrospective
basis. The current deferred income tax asset was reclassified as
noncurrent and netted against the related noncurrent deferred
income tax liability in the amount $58 million and $68 million as
at December 31, 2015 and 2014, respectively.
|
ASU 2015-03
Interest – Imputation of Interest
|
Simplifies the
presentation of debt issuance costs by requiring that such costs be
presented in the balance sheet as a deduction from the carrying
amount of debt.
|
The Company adopted
this standard during the fourth quarter of 2015 on a retrospective
basis. Debt issuance costs have been reclassified from assets to
Long-term debt in the amount of $42 million and $37 million as at
December 31, 2015 and 2014, respectively.
|
SOURCE CN