未经审计的暂行合并财务报表
中国 | 2024年第三季度季度审查 9
损益表综合 – 未经审计
| 截至三个月结束时 9月30日 | 截至九月底的九个月的营业租赁成本 9月30日 | |||||||||||||
| 单位：百万美元，除每股数据外 | 2024 | 2023 | 2024 | 2023 | ||||||||||
收入（注3）
| $ | 4,110 | $ | 3,987 | $ | 12,688 | $ | 12,357 | ||||||
| 营业费用 | ||||||||||||||
| 劳动力和津贴福利 | 795 | 773 | 2,539 | 2,332 | ||||||||||
| 购买的服务和材料 | 566 | 534 | 1,715 | 1,698 | ||||||||||
| 燃料币。 | 519 | 486 | 1,579 | 1,528 | ||||||||||
| 折旧和摊销 | 475 | 457 | 1,403 | 1,354 | ||||||||||
| 设备租赁 | 93 | 89 | 294 | 262 | ||||||||||
| 其他 | 147 | 131 | 461 | 404 | ||||||||||
待售资产损失 （注4） | — | — | 78 | — | ||||||||||
| 营业费用总计 | 2,595 | 2,470 | 8,069 | 7,578 | ||||||||||
| 营业利润 | 1,515 | 1,517 | 4,619 | 4,779 | ||||||||||
| 利息支出 | (230) | (185) | (660) | (523) | ||||||||||
净利润的其他元件（注5） | 114 | 121 | 341 | 360 | ||||||||||
| 其他收入（损失） | 10 | (2) | 44 | — | ||||||||||
| 税前收入 | 1,409 | 1,451 | 4,344 | 4,616 | ||||||||||
所得税费用 | (324) | (343) | (1,042) | (1,121) | ||||||||||
| 净利润 | $ | 1,085 | $ | 1,108 | $ | 3,302 | $ | 3,495 | ||||||
每股收益(注意6) | ||||||||||||||
| 基本 | $ | 1.72 | $ | 1.69 | $ | 5.20 | $ | 5.28 | ||||||
| 摊薄 | $ | 1.72 | $ | 1.69 | $ | 5.19 | $ | 5.27 | ||||||
加权平均股份数量 (注意6) | ||||||||||||||
| 基本 | 629.6 | 654.3 | 635.1 | 661.4 | ||||||||||
| 稀释的 | 630.5 | 655.6 | 636.2 | 662.9 | ||||||||||
| 每股分红派息 | $ | 0.8450 | $ | 0.7900 | $ | 2.5350 | $ | 2.3700 | ||||||
请查阅附注中期合并基本报表。
综合收益表 - 未经审计
| 截至三个月结束时 9月30日 | 截至九月底的九个月的营业租赁成本 9月30日 | |||||||||||||
| 单位为百万 | 2024 | 2023 | 2024 | 2023 | ||||||||||
| 净利润 | $ | 1,085 | $ | 1,108 | $ | 3,302 | $ | 3,495 | ||||||
其他综合损益 （注9） | ||||||||||||||
| 外币翻译净收益（损失） | (53) | 89 | 95 | 2 | ||||||||||
养老金和其他离退休福利计划的净变动 （附注5） | 12 | — | 39 | (2) | ||||||||||
衍生工具 （注11） | (16) | 59 | (19) | 77 | ||||||||||
| 税前其他全面收益（损失） | (57) | 148 | 115 | 77 | ||||||||||
| 所得税收回(支出) | (17) | 21 | 26 | (18) | ||||||||||
| 其他综合收益（损失） | (74) | 169 | 141 | 59 | ||||||||||
综合收益 | $ | 1,011 | $ | 1,277 | $ | 3,443 | $ | 3,554 | ||||||
请参阅附注的中期合并基本报表。
10 中国 | 2024年第三季度季度审查
合并资产负债表 - 未经审计
| 9月30日 | 十二月三十一日 | ||||||||||
| 单位为百万 | 下面包括了开多期债务和总债务的对比: | 2024 | 2023 | ||||||||
| 资产 | |||||||||||
| 流动资产 | |||||||||||
| 现金及现金等价物 | $ | 273 | $ | 475 | |||||||
受限现金及现金等价物 （注7） | 425 | 449 | |||||||||
| 应收账款 | 1,243 | 1,300 | |||||||||
| 物料和用品 | 725 | 699 | |||||||||
| 其他资产 | 377 | 166 | |||||||||
| 总流动资产 | 3,043 | 3,089 | |||||||||
| 财产 | 46,194 | 44,617 | |||||||||
| 经营租赁权使用资产 | 372 | 424 | |||||||||
| 养老金资产 | 3,467 | 3,140 | |||||||||
| 递延所得税资产 | 659 | 682 | |||||||||
| 无形资产、商誉及其他资产 | 746 | 714 | |||||||||
| 总资产 | $ | 54,481 | $ | 52,666 | |||||||
| 负债和股东权益 | |||||||||||
| 流动负债 | |||||||||||
| 应付账款和其他 | $ | 2,640 | $ | 2,695 | |||||||
| 开多次数 | 2,079 | 2,340 | |||||||||
| 流动负债合计 | 4,719 | 5,035 | |||||||||
| 递延所得税负债 | 10,398 | 10,066 | |||||||||
| 其他负债和递延贷款 | 563 | 522 | |||||||||
| 养老金及其他退休福利 | 487 | 495 | |||||||||
| 长期债务 | 18,619 | 16,133 | |||||||||
| 经营租赁负债 | 237 | 298 | |||||||||
| 负债合计 | 35,023 | 32,549 | |||||||||
| 股东权益 | |||||||||||
| 普通股 | 3,477 | 3,512 | |||||||||
| 股份信托中的普通股 | (128) | (144) | |||||||||
| 额外实收资本 | 360 | 373 | |||||||||
其他综合损失累计额 (第9条) | (2,138) | (2,279) | |||||||||
| 未分配利润 | 17,887 | 18,655 | |||||||||
| 股东权益合计 | 19,458 | 20,117 | |||||||||
| 负债和股东权益合计 | $ | 54,481 | $ | 52,666 | |||||||
请查阅附注中期合并基本报表。
中国 | 2024年第三季度季度审查 11
股东权益变动表 - 未经审计
| 的数量 普通股 | 常见 股份 | 常见 股份 在分享中 信托 | 额外 付费 首都 | 累积 其他 综合的 损失 | 已保留 收入 | 总计 股东 公正 | |||||||||||||||||||||||
| 以百万计 | 杰出 | 分享 信托 | |||||||||||||||||||||||||||
| 截至 2024 年 6 月 30 日的余额 | 631.3 | 0.9 | $ | 3,484 | $ | (129) | $ | 364 | $ | (2,064) | $ | 17,749 | $ | 19,404 | |||||||||||||||
| 净收入 | 1,085 | 1,085 | |||||||||||||||||||||||||||
| 行使的股票期权 | 0.1 | 7 | (1) | 6 | |||||||||||||||||||||||||
| 股权结算奖励的结算 | — | — | 8 | (9) | (1) | (2) | |||||||||||||||||||||||
| 股票薪酬及其他 | 6 | (1) | 5 | ||||||||||||||||||||||||||
回购普通股 （注七） | (2.5) | (14) | (413) | (427) | |||||||||||||||||||||||||
| 通过股票信托购买股票 | (0.1) | 0.1 | (7) | (7) | |||||||||||||||||||||||||
其他综合损失 （注九） | (74) | (74) | |||||||||||||||||||||||||||
| 分红 | (532) | (532) | |||||||||||||||||||||||||||
| 截至 2024 年 9 月 30 日的余额 | 628.8 | 1.0 | $ | 3,477 | $ | (128) | $ | 360 | $ | (2,138) | $ | 17,887 | $ | 19,458 | |||||||||||||||
| 的数量 普通股 | 常见 股份 | 常见 股份 在分享中 信托 | 额外 付费 首都 | 累积 其他 综合的 损失 | 已保留 收入 | 总计 股东 公正 | |||||||||||||||||||||||
| 以百万计 | 杰出 | 分享 信托 | |||||||||||||||||||||||||||
2023 年 12 月 31 日的余额 | 642.7 | 1.1 | $ | 3,512 | $ | (144) | $ | 373 | $ | (2,279) | $ | 18,655 | $ | 20,117 | |||||||||||||||
| 净收入 | 3,302 | 3,302 | |||||||||||||||||||||||||||
| 行使的股票期权 | 0.4 | 44 | (6) | 38 | |||||||||||||||||||||||||
| 股权结算奖励的结算 | 0.4 | (0.4) | 58 | (73) | (42) | (57) | |||||||||||||||||||||||
| 股票薪酬及其他 | 66 | (2) | 64 | ||||||||||||||||||||||||||
回购普通股 （注释 7） | (14.4) | (79) | (2,419) | (2,498) | |||||||||||||||||||||||||
| 通过股票信托购买股票 | (0.3) | 0.3 | (42) | (42) | |||||||||||||||||||||||||
其他综合收入 （注九） | 141 | 141 | |||||||||||||||||||||||||||
| 分红 | (1,607) | (1,607) | |||||||||||||||||||||||||||
| 截至 2024 年 9 月 30 日的余额 | 628.8 | 1.0 | $ | 3,477 | $ | (128) | $ | 360 | $ | (2,138) | $ | 17,887 | $ | 19,458 | |||||||||||||||
请查阅附注中期合并基本报表。
12 中国 | 2024年第三季度季度审查
股东权益变动表 - 未经审计
| 数量 普通股 | 普通股 股份 | 普通股 股份 股份比例 信托 | 额外的 实收资本 资本 | 累积的 其他 综合损益 综合损失 | 留存收益 盈余公积 | 总费用 股东的 股东权益 | |||||||||||||||||||||||
| 单位为百万 | 未偿还金额 | 分享 信托 | |||||||||||||||||||||||||||
2023年6月30日的余额 | 657.5 | 1.1 | $ | 3,573 | $ | (142) | $ | 369 | $ | (2,079) | $ | 18,677 | $ | 20,398 | |||||||||||||||
| 净利润 | 1,108 | 1,108 | |||||||||||||||||||||||||||
| 期权行权 | — | 2 | — | 2 | |||||||||||||||||||||||||
| 权益结算奖励的结算 | 0.1 | (0.1) | 6 | (8) | — | (2) | |||||||||||||||||||||||
| 股票报酬和其他 | 14 | — | 14 | ||||||||||||||||||||||||||
回购普通股（附注7) | (7.7) | (42) | (1,154) | (1,196) | |||||||||||||||||||||||||
| 股份信托的股份购买 | (0.1) | 0.1 | (7) | (7) | |||||||||||||||||||||||||
其他综合收益(第9条) | 169 | 169 | |||||||||||||||||||||||||||
| 股息 | (515) | (515) | |||||||||||||||||||||||||||
2023年9月30日余额 | 649.8 | 1.1 | $ | 3,533 | $ | (143) | $ | 375 | $ | (1,910) | $ | 18,116 | $ | 19,971 | |||||||||||||||
| 数量 普通股 | 普通股 股份 | 普通股 股份 股份比例 信托 | 额外的 实收资本 资本 | 累积的 其他 综合损益 综合损失 | 留存收益 盈余公积 | 总费用 股东的 股东权益 | |||||||||||||||||||||||
| 单位为百万 | 未偿还金额 | 分享 信托 | |||||||||||||||||||||||||||
2022年12月31日的余额 | 671.0 | 1.4 | $ | 3,613 | $ | (170) | $ | 381 | $ | (1,969) | $ | 19,529 | $ | 21,384 | |||||||||||||||
| 净利润 | 3,495 | 3,495 | |||||||||||||||||||||||||||
| 期权行权 | 0.3 | 38 | (5) | 33 | |||||||||||||||||||||||||
| 权益结算奖励的结算 | 0.4 | (0.4) | 48 | (65) | (25) | (42) | |||||||||||||||||||||||
| 股票报酬和其他 | 64 | (1) | 63 | ||||||||||||||||||||||||||
回购普通股（注7） | (21.8) | (118) | (3,320) | (3,438) | |||||||||||||||||||||||||
| 股份信托的股份购买 | (0.1) | 0.1 | (21) | (21) | |||||||||||||||||||||||||
其他综合收益(第9条) | 59 | 59 | |||||||||||||||||||||||||||
| 股息 | (1,562) | (1,562) | |||||||||||||||||||||||||||
2023年9月30日的余额 | 649.8 | 1.1 | $ | 3,533 | $ | (143) | $ | 375 | $ | (1,910) | $ | 18,116 | $ | 19,971 | |||||||||||||||
请查阅附注中期合并基本报表。
中国 | 2024年第三季度季度审查 13
未经审计的现金流量表合并
| 截至三个月结束时 9月30日 | 截至九月底的九个月的营业租赁成本 9月30日 | |||||||||||||
| 单位为百万 | 2024 | 2023 | 2024 | 2023 | ||||||||||
| 经营活动 | ||||||||||||||
| 净利润 | $ | 1,085 | $ | 1,108 | $ | 3,302 | $ | 3,495 | ||||||
| 调整净利润以计入经营活动现金流量: | ||||||||||||||
| 折旧和摊销 | 475 | 457 | 1,403 | 1,354 | ||||||||||
| 养老金收入和资金筹集 | (95) | (104) | (288) | (314) | ||||||||||
| 递延所得税 | 152 | 124 | 307 | 303 | ||||||||||
资产减值损失 （注4） | — | — | 78 | — | ||||||||||
| 经营性资产和负债变动: | ||||||||||||||
| 应收账款 | (5) | (55) | 73 | 89 | ||||||||||
| 物料和用品 | 59 | 8 | (23) | (62) | ||||||||||
| 应付账款和其他 | 1 | (81) | (288) | (533) | ||||||||||
| 其他资产 | 70 | (6) | (23) | 15 | ||||||||||
| 其他经营活动，净额 | 32 | 61 | 163 | 205 | ||||||||||
| 经营活动产生的现金流量净额 | 1,774 | 1,512 | 4,704 | 4,552 | ||||||||||
| 投资活动 | ||||||||||||||
| 固定资产投资 | (1,176) | (917) | (2,605) | (2,253) | ||||||||||
| 其他投资活动，净额 | (14) | (14) | (39) | (25) | ||||||||||
| 投资活动产生的净现金流出 | (1,190) | (931) | (2,644) | (2,278) | ||||||||||
| 筹资活动 | ||||||||||||||
债务发行 （注7） | 1,011 | — | 3,117 | 1,730 | ||||||||||
| 偿还债务 | (17) | (11) | (528) | (238) | ||||||||||
商业票据净变动 （Note 7） | (675) | 1,073 | (756) | 1,312 | ||||||||||
外汇期货结算合同（Note 7） （附注11） | (15) | 23 | (2) | 21 | ||||||||||
| 行使期权发行普通股 | 6 | 2 | 38 | 33 | ||||||||||
股本奖励的净结算代扣税款已汇缴 （附注8） | (1) | (1) | (52) | (38) | ||||||||||
3 | (438) | (1,194) | (2,450) | (3,399) | ||||||||||
| 购买用于解决股权奖励的普通股 | (1) | (1) | (5) | (4) | ||||||||||
| 股份信托购买普通股 | (7) | (7) | (42) | (21) | ||||||||||
| 分红派息 | (532) | (515) | (1,607) | (1,562) | ||||||||||
| 筹集资金净额 | (669) | (631) | (2,287) | (2,166) | ||||||||||
| 外汇波动对现金、现金等价物、受限现金及受限现金等价物的影响 | (1) | 2 | 1 | — | ||||||||||
| 现金、现金等价物、受限现金及受限现金等价物的净增加（减少） | (86) | (48) | (226) | 108 | ||||||||||
| 期初现金、现金等价物、受限制的现金和受限制的现金等价物 | 784 | 990 | 924 | 834 | ||||||||||
| 期末现金、现金等价物、受限制的现金和受限制的现金等价物 | $ | 698 | $ | 942 | $ | 698 | $ | 942 | ||||||
| 现金及现金等价物期末余额 | $ | 273 | $ | 491 | $ | 273 | $ | 491 | ||||||
| 期末限制性现金及现金等价物 | 425 | 451 | 425 | 451 | ||||||||||
期末现金、现金等价物、受限制的现金和受限制的现金等价物 | $ | 698 | $ | 942 | $ | 698 | $ | 942 | ||||||
| 补充现金流量信息 | ||||||||||||||
| 支付的利息 | $ | (265) | $ | (256) | $ | (716) | $ | (622) | ||||||
| 所得税已付款项 | $ | (262) | $ | (279) | $ | (933) | $ | (987) | ||||||
请查阅附注中期合并基本报表。
14 中国 | 2024年第三季度季度审查
未审计的中期合并财务报表附注
1 – 报告基础
在这些附注中，“公司”或“CN”指的是加拿大国家铁路公司及其全资子公司。随附的未经审计的中期合并基本报表（“中期合并基本报表”），以加元计，已按照美国公认会计原则（GAAP）为中期基本报表的规定编制。因此，它们并未包括GAAP对完整基本报表要求的所有披露。在管理层看来，所有被认为对公允呈现必要的调整（由正常的经常性权责发生制组成）均已包含在内。中期经营结果不一定代表全年可能预期的结果。
这些临时合并基本报表是根据与CN 2023年年度合并基本报表一致的会计政策编制的，应与该报表及其附注一并阅读。
2 – 最近的会计公告
以下最近由财务会计准则委员会（FASB）发布的会计准则更新（ASU）在2023年12月31日之后生效，并且尚未被公司采用：
ASU 2023-07 细分报告（主题280）：对可报告细分披露的改进
ASU将改善关于公共实体可报告部门的财务披露，并回应投资者对可报告部门费用的更多详细信息的请求。ASU中的主要修订要求公共实体，包括拥有单一可报告部门的实体，按年度和中期披露提供给首席运营决策者(CODM)的重大部门费用，披露CODM的职称/职位以及这些部门费用信息在决策过程中的使用情况。公司将其运营管理为一个业务部门，在加拿大和美国的单一网络中进行运营，并将首席执行官识别为其CODM。公司已将合并净利润和每股收益确定为CODM审查的利润指标。ASU要求单一可报告部门实体应适用主题280和ASU中的所有披露要求。
该ASU适用于2023年12月15日之后开始的年度期间。允许提前采用。
ASU的采用将对公司的合并基本报表披露产生影响。公司尚未提前采用ASU，并将在2024年年度合并基本报表和2025年中期基本报表中包含相关披露。
ASU 2023-09 所得税（主题740）：改善所得税披露
ASU修改了关于所得税披露的规则，修改或取消了某些现有的所得税披露要求，并建立了新的要求。这些修正案回应了投资者对所得税更高透明度的要求，包括管辖信息，通过要求一致的分类和更多的信息分解。ASU的两个主要修正案与税率调节和所得税年度披露相关。
在费率对账中呈现的对账项目将以美元金额和百分比形式展示，并将被细分为指定类别，某些对账项目将根据性质和/或管辖区进一步细分，使用国内联邦税收的5%阈值。已支付的所得税将根据已收到的退款在联邦、省/区域和外国税收管辖区之间进行细分，使用已支付所得税总额净额的5%阈值。
该ASU适用于在2024年12月15日之后开始的年度期间。允许对尚未发布或可供发布的年度基本报表提前采用。应自未来施行该ASU。允许追溯适用。
ASU的采用将对公司的合并基本报表披露产生影响。在公司采用ASU时，所需的披露更改将反映在公司的合并基本报表中。由于公司不会提前采用ASU，因此所需的披露更改将在公司的2025年度合并基本报表中反映。公司目前正在评估是采用前瞻性还是追溯性地应用这些修订。
中国 | 2024年第三季度季度审查 15
未审计的中期合并财务报表附注
公司评估了最近发布的其他ASUs，这些ASUs将于2024年9月30日或之后生效，预计不会对公司的合并基本报表产生重大影响。
3 – 收入
| 截至9月30日的三个月 | 截至9月30日的九个月 | |||||||||||||
| 单位为百万 | 2024 | 2023 | 2024 | 2023 | ||||||||||
| 货运收入 | ||||||||||||||
| 石油和化学品 | $ | 839 | $ | 758 | $ | 2,546 | $ | 2,334 | ||||||
| 金属和矿物 | 502 | 515 | 1,560 | 1,541 | ||||||||||
| 林产品 | 467 | 466 | 1,462 | 1,457 | ||||||||||
| 煤,煤 | 229 | 242 | 691 | 768 | ||||||||||
| 谷物和肥料 | 786 | 722 | 2,384 | 2,271 | ||||||||||
| 多式联运 | 882 | 880 | 2,881 | 2,875 | ||||||||||
| 汽车 | 217 | 237 | 688 | 687 | ||||||||||
| 货运总收入 | 3,922 | 3,820 | 12,212 | 11,933 | ||||||||||
| 其他营业收入 | 188 | 167 | 476 | 424 | ||||||||||
总营业收入 (1) | $ | 4,110 | $ | 3,987 | $ | 12,688 | $ | 12,357 | ||||||
| 按地区划分的营收 | ||||||||||||||
| 加拿大 | $ | 2,825 | $ | 2,728 | $ | 8,832 | $ | 8,450 | ||||||
| 伤亡及其他费用在第三季度增加了3600万美元，或36％，而在2022年前九个月增加了5900万美元，或15％，与2021年同期相比，主要原因是运营税的提高和加拿大元贬值的负面汇兑影响。此外，前九个月的增长也是由于与股东事务有关的咨询费用达到2200万美元。 | 1,285 | 1,259 | 3,856 | 3,907 | ||||||||||
总营业收入 (1) | $ | 4,110 | $ | 3,987 | $ | 12,688 | $ | 12,357 | ||||||
(1)截至2024年9月30日，公司与在途货物相关的剩余履约义务为8000万美元（$89 （截至2023年9月30日）预计将在下一期间确认收入。
合同责任
| 截至9月30日的三个月 | 截至9月30日的九个月 | |||||||||||||
| 单位为百万 | 2024 | 2023 | 2024 | 2023 | ||||||||||
| 开始余额 | $ | 104 | $ | 41 | $ | 95 | $ | 28 | ||||||
| 确认的营业收入包含在期初余额中 | (7) | (11) | (14) | (12) | ||||||||||
| 因收到的对价增加，扣除已确认的营业收入 | 56 | 18 | 72 | 32 | ||||||||||
| 结束余额 | $ | 153 | $ | 48 | $ | 153 | $ | 48 | ||||||
| 当前部分 - 期末余额 | $ | 6 | $ | 10 | $ | 6 | $ | 10 | ||||||
4 – 待售资产
2024年5月8日，加拿大国家铁路公司（CN）与加拿大政府签署了一项协议，将位于加拿大魁北克的魁北克桥的所有权以及相关的风险和义务以名义金额转让给加拿大政府。CN将保留占用和运营桥梁上铁路基础设施部分的必要权利，并将在包括不可取消期限的期间内支付年度占用费。CN已满足将相关轨道和道路资产分类为待售资产的标准，因此已记录7800万美元（税后5800万美元）的损失，以将账面价值调整至名义售价。交易将在满足完成的剩余前提条件时完成，届时预计CN将确认一项运营租赁使用权资产和一项与保留权利相关的负债。截至2024年9月30日，继续满足待售资产分类的标准，且待售资产的账面金额没有变化。
16 中国 | 2024年第三季度季度审查
未审计的中期合并财务报表附注
5 – 养老金和其他退休后福利
公司拥有多种养老福利计划，基本上所有员工在退休年龄都有权享受福利，这通常基于薪酬和服务年限和/或缴款。与养老福利计划相关的更多信息详见 附注18 - 养老金和其他退休后的福利 公司的2023年年度综合基本报表。
| 截至9月30日的三个月 | 截至9月30日的九个月 | |||||||||||||||||||||||||
| 养老金 | 其他离退休福利 | 养老金 | 其他离退休福利 | |||||||||||||||||||||||
| 单位为百万 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||
| 当前服务成本 | $ | 23 | $ | 21 | $ | 1 | $ | 1 | $ | 69 | $ | 62 | $ | 1 | $ | 1 | ||||||||||
| 其他净周期收益收入的元件： | ||||||||||||||||||||||||||
| 利息成本 | 168 | 175 | 2 | 1 | 502 | 527 | 5 | 5 | ||||||||||||||||||
| 计划资产预期回报 | (296) | (297) | — | — | (887) | (890) | — | — | ||||||||||||||||||
| 先前服务信用摊销 | — | — | (2) | (1) | — | — | (3) | (3) | ||||||||||||||||||
| 净法定亏损（盈利）摊销 | 16 | 2 | (2) | (1) | 47 | 5 | (5) | (4) | ||||||||||||||||||
| 总其他净周期收益收入元件 | (112) | (120) | (2) | (1) | (338) | (358) | (3) | (2) | ||||||||||||||||||
净周期收益收入 (1) | $ | (89) | $ | (99) | $ | (1) | $ | — | $ | (269) | $ | (296) | $ | (2) | $ | (1) | ||||||||||
(1)在2024年和2023年的第二季度，公司修订了对养老金全年净定期收益的估算，以反映更新的计划人口统计信息，结果影响不大。
养老金缴纳
截至2024年9月30日的九个月内，所有计划的养老金缴款分别为5100万和3800万。根据截至2023年12月31日公司为资金目的进行的精算评估结果，CN养老金计划仍然实现了完全融资，并维持在一个水平上，使得公司继续被禁止进行缴款。对于2024年全年，公司预计将为其他所有养老金计划支付约7000万的总缴款，并包括自2024年4月1日起受影响的非工会成员从公司的固定福利养老金计划转移至固定缴款养老金计划的影响。
6 – 每股收益
| 截至9月30日的三个月 | 截至9月30日的九个月 | |||||||||||||
| 单位：百万美元，除每股数据外 | 2024 | 2023 | 2024 | 2023 | ||||||||||
| 净收入 | $ | 1,085 | $ | 1,108 | $ | 3,302 | $ | 3,495 | ||||||
| 加权平均基本股本数 | 629.6 | 654.3 | 635.1 | 661.4 | ||||||||||
| 基于股票的补偿的稀释效应 | 0.9 | 1.3 | 1.1 | 1.5 | ||||||||||
| 每股加权平均摊薄股数 | 630.5 | 655.6 | 636.2 | 662.9 | ||||||||||
| 基本每股收益 | $ | 1.72 | $ | 1.69 | $ | 5.20 | $ | 5.28 | ||||||
| 摊薄每股收益 | $ | 1.72 | $ | 1.69 | $ | 5.19 | $ | 5.27 | ||||||
| 因其包含不会产生稀释效果，所以从计算中排除的单位 | ||||||||||||||
| 股票期权 | 1.4 | 1.0 | 1.2 | 1.0 | ||||||||||
| 业绩股份单位 | 0.6 | 0.6 | 0.3 | 0.5 | ||||||||||
中国 | 2024年第三季度季度审查 17
未审计的中期合并财务报表附注
7 – 融资活动
有关公司可用融资来源的详细信息，请见 附注16 - 债务 公司的2023年度合并基本报表。 截至2024年9月30日的九个月内，发生了以下变更：
票据和债券
截至2024年9月30日的九个月期间，公司发布了以下内容：
•在2024年9月18日，在美国资本市场发行75000万美元（102000万美元）4.38%的2034年到期票据，最终净收益为101100万美元；并且
•在2024年5月2日，加拿大资本市场发行了70000万的4.60%债券（2029年到期）和55000万的5.10%债券（2054年到期），共计净收益为124200万。
截至2023年9月30日的九个月内，公司发行并偿还了以下内容：
•在2023年5月10日，发行了55000万美元的4.15%债券（到期日为2030年）、40000万美元的4.40%债券（到期日为2033年）和80000万美元的4.70%债券（到期日为2053年），在加拿大资本市场，最终净收益为173000万美元；以及
•2023年5月15日，到期偿还15000万美元（20300万美元）7.63%票据。
循环信贷设施
2024年3月28日，公司修订了循环信贷协议，将各自的期限延长了一年。25亿的无担保信贷额度由两部分组成，各为12.5亿，现在到期日为2027年3月31日和2029年3月31日。10亿的无担保信贷额度现在到期日为2026年3月17日。2024年3月28日，公司修订了其循环信贷额度，将基准利率从加币报价利率（CDOR）转变为加币隔夜回购利率平均值（CORRA）。信贷额度提供基于不同基准利率的借款，例如有担保隔夜融资利率（SOFR）和CORRA，加上适用的利差，具体取决于CN的信用评级。两个循环信贷协议都有一个财务契约，限制债务占总资本化的百分比。根据2024年9月30日的数据，公司合规。
截至2024年9月30日和2023年12月31日，公司在这些循环信贷额度下没有未偿还的借款，并且在截至2024年9月30日的九个月内没有提款。
设备借款
在2024年3月21日，公司对某些非循环定期贷款设施进行了修订，转变为使用CORRA代替CDOR。非循环定期贷款设施下的借款利率为SOFR、CORRA或CDOR加上适用的利差。
在2024年前九个月，公司偿还了4500万美元的设备贷款，并于2024年3月22日根据这些贷款设施发行了41200万美元的设备贷款。截至2024年9月30日和2023年12月31日，公司未偿借款分别为105900万美元和67700万美元，加权平均利率分别为5.42%和6.09%，同时根据这些设施，分别可提取36600万美元和76900万美元。
商业本票
截至2024年9月30日和2023年12月31日，本公司总商业票据借款分别为87300万美元（1,182百万美元）和136000万美元（180100万美元），加权平均利率为和5.63%，分别列示在合并资产负债表的长期债务的流动部分。 5.30% a
18 中国 | 2024年第三季度季度审查
未审计的中期合并财务报表附注
| 截至9月30日的三个月 | 截至9月30日的九个月 | |||||||||||||
| 单位为百万 | 2024 | 2023 | 2024 | 2023 | ||||||||||
| 到期少于90天的商业票据 | ||||||||||||||
| 发行 | $ | 5,398 | $ | 4,077 | $ | 12,774 | $ | 10,123 | ||||||
| 还款 | (5,519) | (3,341) | (13,327) | (9,581) | ||||||||||
| 到期少于90天的商业票据变动，net | $ | (121) | $ | 736 | $ | (553) | $ | 542 | ||||||
| 到期90天或更长时间的商业票据 | ||||||||||||||
| 发行 | $ | — | $ | 762 | $ | 1,472 | $ | 1,768 | ||||||
| 还款 | (554) | (425) | (1,675) | (998) | ||||||||||
| 到期日为90天或更长的商业票据变动，净值 | $ | (554) | $ | 337 | $ | (203) | $ | 770 | ||||||
| 商业票据净变动 | $ | (675) | $ | 1,073 | $ | (756) | $ | 1,312 | ||||||
应收账款证券化计划
2024年3月20日，公司将其协议的期限延长一年至2026年2月2日。
在2024年头九个月，公司从应收账款证券化项目中获得了45000万元的收入，并偿还了45000万元。
截至2024年9月30日和2023年12月31日，公司在应收账款证券化计划下没有未偿还借款，并且该设施下可用45000万元。
双边信用证便利
在2024年3月28日，公司将其已承诺的双边信用证设施协议的到期日延长至2027年4月28日。
截至2024年9月30日，公司有未偿信用证32600万元（截至2023年12月31日为33700万元）在承诺融资下， 来自总可用金额 为361百万（截至2023年12月31日为36100万元）且 在非承诺融资下为14200万元（截至2023年12月31日为15200万元）。
截至2024年9月30日，在限制性现金及现金等价物中包括了32500万元（截至2023年12月31日为33900万元），作为已承诺的双边信用证工具的担保，9000万美元（截至2023年12月31日为10000万元）作为未承诺的双边信用证工具的担保，以及1000万元作为托管（截至2023年12月31日为1000万元）。
回购普通股
公司可能根据正常交易所买盘（NCIB）以当时的市场价格加上券商费用，或其他多伦多证券交易所允许的价格回购其普通股。在当前的NCIb框架下，公司可能在2024年2月1日到2025年1月31日之间回购最多3200万股普通股。截至2024年9月30日，公司根据当前的NCIb已回购1230万股普通股，总额为209200万元。
2024年6月20日，加拿大政府颁布立法，对2024年1月1日以后进行的净股票回购征收2%的税。因此，公司已为2024年前九个月进行的净股票回购计提了4800万美元的负债，该负债被作为普通股票回购的直接成本进行记录，并记入股东权益。税务义务需在次年的第一季度内支付。
The Company repurchased 28.7 million common shares under its previous NCIB effective between February 1, 2023 and January 31, 2024, which allowed for the repurchase of up to 32.0 million common shares.
CN | 2024 Quarterly Review – Third Quarter 19
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED
| Three months ended September 30 | Nine months ended September 30 | |||||||||||||
| In millions, except per share data | 2024 | 2023 | 2024 | 2023 | ||||||||||
| Number of common shares repurchased | 2.5 | 7.7 | 14.4 | 21.8 | ||||||||||
Weighted-average price per share (1) | $ | 165.40 | $ | 153.92 | $ | 172.96 | $ | 157.41 | ||||||
Amount of repurchase (1)(2) | $ | 427 | $ | 1,196 | $ | 2,498 | $ | 3,438 | ||||||
(1)Includes brokerage fees and tax on share repurchases.
(2)Includes settlements in subsequent periods.
8 – Stock-based compensation
公司为符合条件的员工设立了多种基于股票的薪酬计划。除了以下指定的变更外，其他主要计划的描述详见于 第20条 基于股票的薪酬 公司的2023年年度综合基本报表。
| 截至9月30日的三个月 | 截至9月30日的九个月 | |||||||||||||
| 单位为百万 | 2024 | 2023 | 2024 | 2023 | ||||||||||
分享单位计划 (1) | $ | (6) | $ | 3 | $ | 26 | $ | 25 | ||||||
自愿激励延期计划 (VIDP) (2) | — | — | 1 | — | ||||||||||
| 股票期权奖励 | 3 | 3 | 9 | 9 | ||||||||||
| 员工分享投资计划 (ESIP) | 7 | 6 | 21 | 19 | ||||||||||
| 总股权补偿费用 | $ | 4 | $ | 12 | $ | 57 | $ | 53 | ||||||
| 基于股票的薪酬的所得税影响 | ||||||||||||||
| 在收益中确认的税收利益 | $ | 1 | $ | 3 | $ | 14 | $ | 13 | ||||||
| 在收益中确认的超额税收利益 | $ | — | $ | — | $ | 15 | $ | 10 | ||||||
(1)绩效股份单位（PSU）奖励和限制性股份单位（RSU）奖励根据股份单位计划授予。PSU-ROIC奖励和PSU-TSR奖励的结算取决于投资资本回报率（ROIC）绩效控件的目标达成程度，以及总股东回报率（TSR）市场控件的目标达成程度，具体以奖励协议中定义的为准，计划周期为三年。RSU奖励的结算取决于在整个计划期内持续就业，不受市场或绩效控件的限制。
(2)延期股票单位（DSU）奖励是根据自愿激励延期计划授予的。
分享单位计划
PSUs-投资回报率 (1) | PSUs-总股东回报 (2) | RSUs(以股为单位)(3) | ||||||||||||||||||
| Units | 加权平均授予日期公允价值 | Units | 加权平均授予日期公允价值 | Units | 加权平均授予日期公允价值 | |||||||||||||||
| 单位为百万 | 单位为百万 | 单位为百万 | ||||||||||||||||||
| 2023年12月31日未行使的股票期权 | 0.7 | $ | 78.29 | 0.4 | $ | 166.89 | 0.1 | $ | 137.31 | |||||||||||
授权 (4) | 0.2 | $ | 166.66 | 0.1 | $ | 217.75 | 0.1 | $ | 166.66 | |||||||||||
已解决 (5) | (0.2) | $ | 64.50 | (0.1) | $ | 148.02 | — | $ | — | |||||||||||
| 被取消 | (0.1) | $ | 87.89 | — | $ | 168.25 | — | $ | 165.39 | |||||||||||
| 截至2024年9月30日为止尚未行使 | 0.6 | $ | 109.18 | 0.4 | $ | 189.74 | 0.2 | $ | 155.93 | |||||||||||
(1)2024年授予的3200万美元的以股权结算的PSU-ROIC奖励的授予日公允价值是基于授予日公司股票的收盘价格进行评估的。公司每季度评估一次绩效归属标准的概率。截至2024年9月30日，所有未认定奖励的总薪酬成本为100万美元，预计将在加权平均期0.3年内确认。截止到2024年1月1日授予的PSU-ROIC奖励不依赖于达到最低股价市场条件来结算。
(2)2024年授予的以股权结算的PSU-TSR奖励的授予日期公允价值为2700万美元，使用蒙特卡洛模拟模型计算。截至2024年9月30日，所有未确认的补偿成本总计为2700万美元，预计将在加权平均期1.9年内确认。公司的TSR截至2024年1月1日，相对于标准普尔北美大型中型运输指数进行衡量。
(3)2024年授予的以股票结算的限制性股票单位(RSU)奖励的授予日期公允价值为1800万美元，基于授予日期公司股票的收盘价进行评估。截至2024年9月30日，所有未确认的补偿成本总计为1500万美元，预计将在加权平均2.2年的期间内确认。
(4)以分红派息方式授予的单位将包括在2024年1月1日授予的股份单位计划奖励中。由于它们涉及的单位数量很少，因此尚未量化。
(5)2021年授予的以股权结算的PSU-ROIC奖励满足最低股价控件以进行结算，并获得了190%的业绩归属系数。2021年授予的以股权结算的PSU-TSR奖励获得了119%的业绩归属系数。在2024年第一季度，这些奖励已结算，扣除参与者的4600万的预扣税义务，通过从30万普通股的分享信托中支付。
20 中国 | 2024年第三季度季度审查
未审计的中期合并财务报表附注
Voluntary Incentive Deferral Plan
DSUs (1) | ||||||||
| Units | Weighted-average grant date fair value | |||||||
| In millions | ||||||||
| Outstanding at December 31, 2023 | 0.3 | $ | 112.66 | |||||
| Granted | 0.1 | $ | 175.06 | |||||
Settled (2) | (0.1) | $ | 106.19 | |||||
Outstanding at September 30, 2024 (3) | 0.3 | $ | 120.40 | |||||
(1)The grant date fair value of equity settled DSU awards granted in 2024 of $4 million is calculated using the Company's stock price on the grant date. As at September 30, 2024, the aggregate intrinsic value of all equity settled DSU awards outstanding amounted to $51 million.
(2)For the nine months ended September 30, 2024, the Company purchased common shares for the settlement of equity settled DSUs, net of the remittance of the participants withholding tax obligation of $4 million.
(3)The total fair value of equity settled DSU awards vested, the number of units outstanding that were nonvested, unrecognized compensation cost and the remaining recognition period have not been quantified as they relate to a minimal number of units.
As at September 30, 2024 the liability for cash settled DSU awards was $5 million based on a closing stock price of $158.37 ($5 million based on a closing stock price of $166.55 as at December 31, 2023).
Stock option awards
| Options outstanding | ||||||||
Number of options | Weighted-average exercise price | |||||||
| In millions | ||||||||
Outstanding at December 31, 2023 (1) | 3.3 | $ | 127.64 | |||||
Granted (2) | 0.4 | $ | 166.65 | |||||
| Exercised | (0.4) | $ | 99.91 | |||||
| Forfeited | (0.1) | $ | 153.76 | |||||
Outstanding at September 30, 2024 (1)(2)(3) | 3.2 | $ | 136.91 | |||||
Exercisable at September 30, 2024 (1)(3) | 1.8 | $ | 122.49 | |||||
(1)Stock options with a US dollar exercise price have been translated into Canadian dollars using the foreign exchange rate in effect at the balance sheet date.
(2)The grant date fair value of options granted in 2024 of $14 million ($36.55 per option) is calculated using the Black-Scholes option-pricing model. The options granted in 2024 vest over a four-year period compared to a five-year period for options granted in the years 2020 to 2023. As at September 30, 2024, total unrecognized compensation cost related to all outstanding awards was $23 million and is expected to be recognized over a weighted-average period of 3.0 years.
(3)The weighted-average term to expiration of options outstanding was 6.2 years and the weighted-average term to expiration of exercisable stock options was 4.9 years. As at September 30, 2024, the aggregate intrinsic value of in-the-money stock options outstanding amounted to $75 million and the aggregate intrinsic value of stock options exercisable amounted to $66 million.
Employee Share Investment Plan
| ESIP | ||||||||
Number of shares | Weighted-average share price | |||||||
| In millions | ||||||||
Unvested contributions at December 31, 2023 | 0.2 | $ | 156.40 | |||||
| Company contributions | 0.2 | $ | 167.40 | |||||
| Forfeited | (0.1) | $ | 163.67 | |||||
Vested (1) | (0.1) | $ | 157.91 | |||||
Unvested contributions at September 30, 2024 (2) | 0.2 | $ | 163.84 | |||||
(1)As at September 30, 2024, total fair value of units purchased with Company contributions that vested in 2024 was $21 million.
(2)As at September 30, 2024, total unrecognized compensation cost related to all outstanding awards was $17 million and is expected to be recognized over the next twelve months.
CN | 2024 Quarterly Review – Third Quarter 21
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED
9 – Accumulated other comprehensive loss
The following tables present the changes in Accumulated other comprehensive loss by component for the three and nine months ended September 30, 2024 and 2023:
| In millions | Foreign currency translation | Pension and other postretirement benefit plans | Derivative instruments | Total before tax | Income tax recovery (expense) (1) | Total net of tax | ||||||||||||||
Balance at June 30, 2024 | $ | (23) | $ | (2,976) | $ | 96 | $ | (2,903) | $ | 839 | $ | (2,064) | ||||||||
| Other comprehensive income (loss) before reclassifications: | ||||||||||||||||||||
Translation of net investment (2) | (186) | (186) | — | (186) | ||||||||||||||||
Translation of US dollar debt (3) | 133 | 133 | (17) | 116 | ||||||||||||||||
Derivative instruments (4) | (15) | (15) | 4 | (11) | ||||||||||||||||
| Amounts reclassified from Accumulated other comprehensive loss: | ||||||||||||||||||||
Amortization of net actuarial loss (5) | 14 | 14 | (4) | 10 | ||||||||||||||||
| Amortization of prior service credit | (2) | (2) | — | (2) | ||||||||||||||||
| Amortization of gain on treasury locks | (1) | (1) | — | (1) | ||||||||||||||||
| Other comprehensive income (loss) | (53) | 12 | (16) | (57) | (17) | (74) | ||||||||||||||
| Balance at September 30, 2024 | $ | (76) | $ | (2,964) | $ | 80 | $ | (2,960) | $ | 822 | $ | (2,138) | ||||||||
| In millions | Foreign currency translation | Pension and other postretirement benefit plans | Derivative instruments | Total before tax | Income tax recovery (expense) (1) | Total net of tax | ||||||||||||||
| Balance at December 31, 2023 | $ | (171) | $ | (3,003) | $ | 99 | $ | (3,075) | $ | 796 | $ | (2,279) | ||||||||
| Other comprehensive income (loss) before reclassifications: | ||||||||||||||||||||
Translation of net investment (2) | 332 | 332 | — | 332 | ||||||||||||||||
Translation of US dollar debt (3) | (237) | (237) | 32 | (205) | ||||||||||||||||
Derivative instruments (4) | (15) | (15) | 4 | (11) | ||||||||||||||||
| Amounts reclassified from Accumulated other comprehensive loss: | ||||||||||||||||||||
Amortization of net actuarial loss (5) | 42 | 42 | (11) | 31 | ||||||||||||||||
| Amortization of prior service credit | (3) | (3) | — | (3) | ||||||||||||||||
| Amortization of gain on treasury locks | (4) | (4) | 1 | (3) | ||||||||||||||||
| Other comprehensive income (loss) | 95 | 39 | (19) | 115 | 26 | 141 | ||||||||||||||
| Balance at September 30, 2024 | $ | (76) | $ | (2,964) | $ | 80 | $ | (2,960) | $ | 822 | $ | (2,138) | ||||||||
Footnotes to the tables follow on the next page.
22 CN | 2024 Quarterly Review – Third Quarter
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED
| In millions | Foreign currency translation | Pension and other postretirement benefit plans | Derivative instruments | Total before tax | Income tax recovery (expense) (1) | Total net of tax | ||||||||||||||
| Balance at June 30, 2023 | $ | (157) | $ | (2,671) | $ | 21 | $ | (2,807) | $ | 728 | $ | (2,079) | ||||||||
| Other comprehensive income (loss) before reclassifications: | ||||||||||||||||||||
Translation of net investment (2) | 364 | 364 | — | 364 | ||||||||||||||||
Translation of US dollar debt (3) | (275) | (275) | 36 | (239) | ||||||||||||||||
Derivative instruments | 59 | 59 | (15) | 44 | ||||||||||||||||
| Amounts reclassified from Accumulated other comprehensive loss: | ||||||||||||||||||||
Amortization of net actuarial loss (5) | 1 | 1 | — | 1 | ||||||||||||||||
| Amortization of prior service credit | (1) | (1) | — | (1) | ||||||||||||||||
| Other comprehensive income | 89 | — | 59 | 148 | 21 | 169 | ||||||||||||||
| Balance at September 30, 2023 | $ | (68) | $ | (2,671) | $ | 80 | $ | (2,659) | $ | 749 | $ | (1,910) | ||||||||
| In millions | Foreign currency translation | Pension and other postretirement benefit plans | Derivative instruments | Total before tax | Income tax recovery (expense) (1) | Total net of tax | ||||||||||||||
| Balance at December 31, 2022 | $ | (70) | $ | (2,669) | $ | 3 | $ | (2,736) | $ | 767 | $ | (1,969) | ||||||||
| Other comprehensive income (loss) before reclassifications: | ||||||||||||||||||||
Translation of net investment (2) | 17 | 17 | — | 17 | ||||||||||||||||
Translation of US dollar debt (3) | (15) | (15) | 1 | (14) | ||||||||||||||||
Derivative instruments | 77 | 77 | (19) | 58 | ||||||||||||||||
| Amounts reclassified from Accumulated other comprehensive loss: | ||||||||||||||||||||
Amortization of net actuarial loss (5) | 1 | 1 | — | 1 | ||||||||||||||||
| Amortization of prior service credit | (3) | (3) | — | (3) | ||||||||||||||||
| Other comprehensive income (loss) | 2 | (2) | 77 | 77 | (18) | 59 | ||||||||||||||
| Balance at September 30, 2023 | $ | (68) | $ | (2,671) | $ | 80 | $ | (2,659) | $ | 749 | $ | (1,910) | ||||||||
(1)The Company releases stranded tax effects from Accumulated other comprehensive loss to Net income upon the liquidation or termination of the related item.
(2)Foreign exchange gains or losses on translation of net investment in foreign operations.
(3)Foreign exchange gains or losses on translation of US dollar-denominated debt designated as a hedge of the net investment in foreign operations. The Company designates US dollar-denominated debt of the parent company as a foreign currency hedge of its net investment in foreign operations. Accordingly, from the dates of designation, foreign exchange gains and losses on translation of the Company's US dollar-denominated debt are recorded in Accumulated other comprehensive loss, which minimizes the volatility of earnings resulting from the conversion of US dollar-denominated debt into Canadian dollars.
(4)Cumulative gains or losses of treasury locks are included in Derivative instruments. See Note 11 – Financial instruments for additional information.
(5)Total before tax reclassified to Other components of net periodic benefit income in the Consolidated Statements of Income and included in net periodic benefit income. See Note 5 – Pensions and other postretirement benefits for additional information.
CN | 2024 Quarterly Review – Third Quarter 23
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED
10 – Major commitments and contingencies
Purchase commitments
As at September 30, 2024, the Company had fixed and variable commitments to purchase engineering services, locomotives, rail, information technology services and licenses, railroad cars, wheels, rail ties as well as other equipment and services with a total estimated cost of $2,593 million. Costs of variable commitments were estimated using forecasted prices and volumes.
Contingencies
In the normal course of business, the Company becomes involved in various legal actions seeking compensatory and occasionally punitive damages, including actions brought on behalf of various purported classes of claimants and claims relating to employee and third-party personal injuries, occupational disease and property damage, arising out of harm to individuals or property allegedly caused by, but not limited to, derailments or other accidents.
As at September 30, 2024, the Company had aggregate reserves for personal injury and other claims of $285 million, of which $59 million was recorded as a current liability ($311 million as at December 31, 2023, of which $51 million was recorded as a current liability).
Although the Company considers such provisions to be adequate for all its outstanding and pending claims, the final outcome with respect to actions outstanding or pending as at September 30, 2024, or with respect to future claims, cannot be reasonably determined. When establishing provisions for contingent liabilities the Company considers, where a probable loss estimate cannot be made with reasonable certainty, a range of potential probable losses for each such matter, and records the amount it considers the most reasonable estimate within the range. However, when no amount within the range is a better estimate than any other amount, the minimum amount in the range is accrued. For matters where a loss is reasonably possible but not probable, a range of potential losses cannot be estimated due to various factors which may include the limited availability of facts, the lack of demand for specific damages and the fact that proceedings were at an early stage. Based on information currently available, the Company believes that the eventual outcome of the actions against the Company will not, individually or in the aggregate, have a material adverse effect on the Company's financial position. However, due to the inherent inability to predict with certainty unforeseeable future developments, there can be no assurance that the ultimate resolution of these actions will not have a material adverse effect on the Company's results of operations, financial position or liquidity.
Environmental matters
The Company's provision for specific environmental sites is undiscounted and includes costs for remediation and restoration of sites, as well as monitoring costs. Costs related to any unknown existing or future contamination will be accrued in the period in which they become probable and reasonably estimable. Additional information relating to the Company's environmental matters is provided in Note 22 – Major commitments and contingencies to the Company's 2023 Annual Consolidated Financial Statements.
Under the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERCLA), the Company through one of its subsidiaries was notified by the U.S. Environmental Protection Agency (EPA) on February 28, 2024 that it is a potentially responsible party (PRP), along with at least five other previously notified parties, with respect to the Matthiessen & Hegeler Zinc Company Site (Site) in LaSalle, Illinois. EPA also requested that the Company respond to certain information requests, which the Company did on June 30, 2024. The Company’s designation as a PRP is based on claims that the Company, or its predecessors, had land holdings historically that were leased to others for commercial or industrial uses that may allegedly have resulted in the disposal of hazardous substances onto the Site. Based on remedial investigations and feasibility studies previously conducted, the EPA issued a Record of Decision outlining the clean-up plan for the Site and certain off-Site areas. The Company has not accrued for any obligation related to the remediation of the Site as it has not been able to confirm to what, if any, extent it contributed to the contamination, the extent and cost of remediation and the contribution of other potentially responsible parties and their ability to pay for their obligations.
As at September 30, 2024, the Company had aggregate accruals for environmental costs of $56 million, of which $38 million was recorded as a current liability ($58 million as at December 31, 2023, of which $39 million was recorded as a current liability). The Company anticipates that the liability at September 30, 2024 will be paid out over the next five years. Based on the information currently available, the Company considers its accruals to be adequate.
24 CN | 2024 Quarterly Review – Third Quarter
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED
Guarantees and indemnifications
A description of the Company's guarantees and indemnifications is provided in Note 22 – Major commitments and contingencies to the Company's 2023 Annual Consolidated Financial Statements.
As at September 30, 2024, the Company had outstanding letters of credit of $325 million ($337 million as at December 31, 2023) under the committed bilateral letter of credit facilities and $142 million ($152 million as at December 31, 2023) under the uncommitted bilateral letter of credit facilities, and surety and other bonds of $141 million ($157 million as at December 31, 2023), all issued by financial institutions with investment grade credit ratings to third parties to indemnify them in the event the Company does not perform its contractual obligations.
As at September 30, 2024, the maximum potential liability under these guarantee instruments was $608 million ($646 million as at December 31, 2023), of which $564 million ($603 million as at December 31, 2023) related to other employee benefit liabilities and workers' compensation and $44 million ($43 million as at December 31, 2023) related to other liabilities. The guarantee instruments expire at various dates between 2024 and 2025.
As at September 30, 2024, the Company had not recorded a liability with respect to guarantees and indemnifications as the Company did not expect to make any payments under its guarantees and indemnifications.
11 – Financial instruments
Derivative financial instruments
The Company uses derivative financial instruments from time to time in the management of its foreign currency and interest rate exposures. The Company has limited involvement with derivative financial instruments in the management of its risks and does not hold or issue them for trading or speculative purposes.
Foreign currency risk
As at September 30, 2024, the Company had outstanding foreign exchange forward contracts to purchase a notional value of US$1,490 million (US$1,496 million as at December 31, 2023). These outstanding contracts are at a weighted-average exchange rate of $1.35 per US$1.00 ($1.37 per US$1.00 as at December 31, 2023) with exchange rates ranging from $1.35 to $1.37 per US$1.00 ($1.34 to $1.39 per US$1.00 as at December 31, 2023). The weighted-average term of the contracts is 60 days (77 days as at December 31, 2023) with terms ranging from 14 days to 125 days (26 days to 178 days as at December 31, 2023). Changes in the fair value of foreign exchange forward contracts, resulting from changes in foreign exchange rates, are recognized in Other income (loss) in the Consolidated Statements of Income as they occur.
For the three and nine months ended September 30, 2024, the Company recorded a loss of $22 million and a gain of $53 million, respectively, related to foreign exchange forward contracts compared to gains of $50 million and $23 million, respectively, for the same periods in 2023. These gains were largely offset by the re-measurement of US dollar-denominated monetary assets and liabilities recorded in Other income (loss).
As at September 30, 2024, the fair value of outstanding foreign exchange forward contracts included in Other current assets and Accounts payable and other was $2 million and $6 million, respectively ($nil and $64 million, respectively, as at December 31, 2023).
Interest rate risk
During the third quarter of 2024, the Company entered into treasury lock agreements to hedge US Treasury benchmark rates related to expected debt issuances in 2024. The treasury locks were designated as cash flow hedging instruments with cumulative gains or losses recorded in Accumulated other comprehensive loss in derivative instruments. In conjunction with the September 18, 2024 debt issuance, the Company settled a notional US$500 million ($680 million) of treasury locks, resulting in a cumulative loss of $15 million. The cash outflows were included in operating activities in the Consolidated Statements of Cash Flows, and the loss was recorded in Accumulated other comprehensive loss and is being amortized over the term of the corresponding debt and recognized as an adjustment to interest expense on the Consolidated Statements of Income. As at September 30, 2024, there were no treasury locks outstanding ($nil as at December 31, 2023).
CN | 2024 Quarterly Review – Third Quarter 25
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED
Fair value of financial instruments
The financial instruments that the Company measures at fair value on a recurring basis in periods subsequent to initial recognition are categorized into the following levels of the fair value hierarchy based on the degree to which inputs are observable:
•Level 1: Inputs are quoted prices for identical instruments in active markets
•Level 2: Significant inputs (other than quoted prices included in Level 1) are observable
•Level 3: Significant inputs are unobservable
The carrying amounts of Cash and cash equivalents and Restricted cash and cash equivalents approximate fair value. These financial instruments include highly liquid investments purchased three months or less from maturity, for which the fair value is determined by reference to quoted prices in active markets.
The carrying amounts of Accounts receivable, Other current assets and Accounts payable and other approximate fair value due to their short maturity, unless otherwise specified. The fair value of derivative financial instruments, included in Other current assets and Accounts payable and other is classified as Level 2 and is used to manage the Company's exposure to foreign currency risk and interest rate risk. The fair value is measured by discounting future cash flows using a discount rate derived from market data for financial instruments subject to similar risks and maturities.
The carrying amount of the Company's debt does not approximate fair value. The fair value is estimated based on quoted market prices for the same or similar debt instruments, as well as discounted cash flows using current interest rates for debt with similar terms, company rating, and remaining maturity. The Company classifies debt as Level 2. As at September 30, 2024, the Company's debt, excluding finance leases, had a carrying amount of $20,691 million ($18,435 million as at December 31, 2023) and a fair value of $20,258 million ($17,844 million as at December 31, 2023). The carrying amount of debt excluding finance leases exceeded the fair value due to market rates being higher than the stated coupon rates.
26 CN | 2024 Quarterly Review – Third Quarter