CP 2020 ANNUAL REPORT 84 CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (in millions of Canadian dollars, except per share data) Share capital Additional paid-in capital Accumulated other comprehensive loss Retained earnings Total shareholders’ equity Balance at December 31, 2017 $ 2,032  $ 43  $ (1,741) $ 6,103  $ 6,437  Net income —  —  —  1,951  1,951  Other comprehensive loss (Note 8) —  —  (302) —  (302) Dividends declared ($2.5125 per share) —  —  —  (358) (358) Effect of stock-based compensation expense —  11  —  —  11  CP Common Shares repurchased (Note 20) (66) —  —  (1,061) (1,127) Shares issued under stock option plan (Note 20) 36  (12) —  —  24  Balance at December 31, 2018 2,002  42  (2,043) 6,635  6,636  Impact of accounting change —  —  —  (5) (5) Balance at January 1, 2019, as restated 2,002  42  (2,043) 6,630  6,631  Net income —  —  —  2,440  2,440  Other comprehensive loss (Note 8) —  —  (479) —  (479) Dividends declared ($3.1400 per share) —  —  —  (434) (434) Effect of stock-based compensation expense —  15  —  —  15  CP Common Shares repurchased (Note 20) (54) —  —  (1,086) (1,140) Shares issued under stock option plan (Note 20) 45  (9) —  —  36  Balance at December 31, 2019 1,993  48  (2,522) 7,550  7,069  Impact of accounting change (Note 2) —  —  —  (1) (1) Balance at January 1, 2020, as restated 1,993  48  (2,522) 7,549  7,068  Net income —  —  —  2,444  2,444  Other comprehensive loss (Note 8) —  —  (292) —  (292) Dividends declared ($3.5600 per share) —  —  —  (479) (479) Effect of stock-based compensation expense —  17  —  —  17  CP Common Shares repurchased (Note 20) (58) —  —  (1,419) (1,477) Shares issued under stock option plan (Note 20) 48  (10) —  —  38  Balance at December 31, 2020 $ 1,983 $ 55 $ (2,814) $ 8,095 $ 7,319 See Notes to Consolidated Financial Statements.