Cover
Cover | 12 Months Ended |
Dec. 31, 2021shares | |
Entity Information [Line Items] | |
Document Type | 20-F |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2021 |
Current Fiscal Year End Date | --12-31 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-33632 |
Entity Registrant Name | BROOKFIELD INFRASTRUCTURE CORPORATION |
Entity Incorporation, State or Country Code | Z4 |
Entity Address, Address Line One | 250 Vesey Street |
Entity Address, Address Line Two | 15th Floor |
Entity Address, City or Town | New York |
Entity Address, State or Province | NY |
Entity Address, Postal Zip Code | 10281 |
Entity Address, Country | US |
Title of 12(b) Security | Class A Exchangeable Subordinate Voting Shares |
Trading Symbol | BIPC |
Security Exchange Name | NYSE |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Interactive Data Current | Yes |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Document Accounting Standard | International Financial Reporting Standards |
Entity Shell Company | false |
Entity Central Index Key | 0001788348 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Document Registration Statement | false |
Class A Exchangeable Subordinate Voting Shares | |
Entity Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 73,437,513 |
Class B shares outstanding (Shares) | |
Entity Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 1 |
Class C Shares | |
Entity Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 1,402,451 |
Business Contact | |
Entity Information [Line Items] | |
Entity Address, Address Line One | 250 Vesey Street |
Entity Address, Address Line Two | 15th Floor |
Entity Address, City or Town | New York |
Entity Address, State or Province | NY |
Entity Address, Postal Zip Code | 10281 |
Entity Address, Country | US |
Contact Personnel Name | Michael Ryan |
City Area Code | 212 |
Local Phone Number | 417-7000 |
Contact Personnel Email Address | bip.enquiries@brookfield.com |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | Deloitte LLP |
Auditor Location | Toronto, Canada |
Auditor Firm ID | 1208 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | |
Assets | |||
Cash and cash equivalents | $ 469 | $ 192 | |
Accounts receivable and other | 448 | 394 | |
Due from Brookfield Infrastructure | 1,093 | 0 | |
Current assets | 2,010 | 586 | |
Property, plant and equipment | 4,803 | 5,111 | |
Intangible assets | 2,687 | 2,948 | |
Goodwill | 489 | 528 | |
Financial assets | 30 | 27 | |
Other assets | 15 | 101 | |
Deferred income tax asset | 52 | 43 | |
Total assets | 10,086 | 9,344 | |
Liabilities | |||
Accounts payable and other | 605 | 505 | |
Non-recourse borrowings | 0 | 11 | |
Financial liabilities | 995 | 23 | |
Loans payable to Brookfield Infrastructure | 131 | 0 | |
Exchangeable and class B shares | 4,466 | 2,221 | |
Current liabilities | 6,197 | 2,760 | |
Non-recourse borrowings | 3,556 | 3,466 | |
Loans payable to Brookfield Infrastructure | 0 | 1,143 | |
Financial liabilities | 0 | 1,008 | |
Other liabilities | 119 | 96 | |
Deferred income tax liability | 1,638 | 1,443 | |
Total liabilities | 11,510 | 9,916 | |
Equity | |||
Brookfield Infrastructure Partners L.P | [1] | (2,127) | (1,722) |
Non-controlling interests | 703 | 1,150 | |
Total equity | (1,424) | (572) | |
Total liabilities and equity | $ 10,086 | $ 9,344 | |
[1] | Common equity is attributable to the partnership prior to the special distribution and subsequently as a result of the partnership holding all of the class C shares issued by our company. Please refer to Note 3(b), Basis of Presentation and Significant Accounting Policies, for further details. |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATING RESULTS - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Profit or loss [abstract] | ||||
Revenues | $ 1,643 | $ 1,430 | $ 1,619 | |
Direct operating costs | [1] | (526) | (527) | (552) |
General and administrative expenses | (49) | (33) | (30) | |
Profit (loss) from operating activities | 1,068 | 870 | 1,037 | |
Interest expense | (294) | (214) | (156) | |
Remeasurement of exchangeable and class B shares | (447) | (511) | 0 | |
Mark-to-market on hedging items and foreign currency revaluation | (11) | (61) | 5 | |
Other income (expense) | 116 | (47) | (44) | |
Income before income tax | 432 | 37 | 842 | |
Income tax expense | ||||
Current | (234) | (167) | (175) | |
Deferred | (171) | (102) | (97) | |
Net income (loss) | 27 | (232) | 570 | |
Attributable to: | ||||
Brookfield Infrastructure Partners L.P. | [2],[3] | (368) | (552) | 197 |
Non-controlling interests | $ 395 | $ 320 | $ 373 | |
[1] | During the fourth quarter of 2021, our company reclassified depreciation and amortization expense, which was previously presented as a separate line item, to direct operating costs. Prior period amounts were also adjusted to reflect this change, which resulted in an increase in direct operating costs by $283 million and $308 million for years ended December 31, 2020 and 2019, respectively, with equal and offsetting decreases to depreciation and amortization expense. This reclassification had no impact on revenues or net income (loss). | |||
[2] | Earnings per share have not been presented in the financial statements, as the underlying shares do not constitute “ordinary shares” under IAS 33, Earnings per share. See Note 3(b), Basis of Presentation and Significant Accounting Policies, for further details. | |||
[3] | Net income is attributable to the partnership prior to the special distribution as well as subsequently as a result of the partnership holding all of the class C shares issued by our company. Please refer to Note 3(b), Basis of Presentation and Significant Accounting Policies, for further details. |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATING RESULTS (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Profit or loss [abstract] | |||
Depreciation and amortization | $ 236 | $ 283 | $ 308 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Statement of comprehensive income [abstract] | ||||
Net income (loss) | $ 27 | $ (232) | $ 570 | |
Items that will not be reclassified subsequently to profit or loss: | ||||
Revaluation of property, plant and equipment | 134 | 215 | 347 | |
Taxes on the above | (121) | (67) | (59) | |
Other comprehensive income that will not be reclassified to profit or loss, net of tax | 13 | 148 | 288 | |
Items that may be reclassified subsequently to profit or loss: | ||||
Foreign currency translation | (99) | (493) | (59) | |
Cash flow hedge | 0 | 5 | 5 | |
Taxes on the above items | 0 | (1) | (1) | |
Other comprehensive income that will be reclassified to profit or loss, net of tax | (99) | (489) | (55) | |
Total other comprehensive (loss) income | (86) | (341) | 233 | |
Comprehensive (loss) income | (59) | (573) | 803 | |
Attributable to: | ||||
Brookfield infrastructure partners L.P. | [1] | (373) | (536) | 442 |
Non-controlling interests | $ 314 | $ (37) | $ 361 | |
[1] | Comprehensive income is attributable to the partnership prior to the special distribution as well as subsequently as a result of the partnership holding all of the class C shares issued by our company. Please refer to Note 3(b), Basis of Presentation and Significant Accounting Policies, for further details. |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Combined share capital | Share capital | Retained earnings | Ownership changes | Accumulated other comprehensive income | Non-controlling interests | Brookfield Infrastructure Partners L.P | ||
Beginning balance at Dec. 31, 2018 | $ 3,249 | $ 681 | $ 388 | $ 115 | $ 278 | [1] | $ 1,787 | $ 1,462 | ||
Net income (loss) | 570 | 197 | 373 | 197 | ||||||
Other comprehensive loss | 233 | 245 | [1] | (12) | 245 | |||||
Comprehensive (loss) income | 803 | 197 | 245 | [1] | 361 | 442 | ||||
Distributions to, net of contributions from, Brookfield Infrastructure Partners L.P. | (250) | (250) | (250) | |||||||
Distributions to non-controlling interests | (525) | (525) | ||||||||
Ending balance at Dec. 31, 2019 | 3,277 | 431 | 585 | 115 | 523 | [2] | 1,623 | 1,654 | ||
Net income (loss) | (232) | (552) | 320 | (552) | ||||||
Other comprehensive loss | (341) | 16 | [2] | (357) | 16 | |||||
Comprehensive (loss) income | (573) | (552) | 16 | [2] | (37) | (536) | ||||
Distributions to, net of contributions from, Brookfield Infrastructure Partners L.P. | (33) | (33) | (33) | |||||||
Distributions to non-controlling interests | (436) | (436) | ||||||||
Reorganization | [3] | (2,860) | (398) | (2,462) | ||||||
Share issuance | 53 | 53 | ||||||||
Ending balance at Dec. 31, 2020 | (572) | $ 0 | $ 53 | 33 | (2,347) | 539 | [2],[4] | 1,150 | (1,722) | |
Net income (loss) | 27 | (368) | 395 | (368) | ||||||
Other comprehensive loss | (86) | (5) | [4] | (81) | (5) | |||||
Comprehensive (loss) income | (59) | (368) | (5) | [4] | 314 | (373) | ||||
Distributions to non-controlling interests | (425) | (425) | ||||||||
Acquisition of non controlling interests | [5] | (281) | (281) | |||||||
Other items | [5],[6] | (87) | 142 | (32) | (142) | [4] | (55) | (32) | ||
Ending balance at Dec. 31, 2021 | $ (1,424) | $ 53 | $ (193) | $ (2,379) | $ 392 | [4] | $ 703 | $ (2,127) | ||
[1] | Refer to Note 20 Accumulated Other Comprehensive Income (Loss) for an analysis of accumulated other comprehensive income (loss) by item. | |||||||||
[2] | Refer to Note 20 Accumulated Other Comprehensive Income (Loss) for an analysis of accumulated other comprehensive income (loss) by item. | |||||||||
[3] | Refer to Note 3(b), Basis of Presentation and Significant Accounting Policies for further details. | |||||||||
[4] | Refer to Note 20, Accumulated Other Comprehensive Income (Loss) for an analysis of accumulated other comprehensive income (loss) by item. | |||||||||
[5] | Refer to Note 5, Acquisition of Businesses for further details. | |||||||||
[6] | Refer to Note 4, Disposition of Businesses for further details. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Operating Activities | ||||
Net income (loss) | $ 27 | $ (232) | $ 570 | |
Adjusted for the following items: | ||||
Depreciation and amortization expense | 236 | 283 | 308 | |
Mark-to-market on hedging items and other | (77) | 110 | 35 | |
Remeasurement of exchangeable and class B shares | 447 | 511 | 0 | |
Deferred income tax expense | 171 | 102 | 97 | |
Changes in non-cash working capital, net | 35 | (44) | 73 | |
Cash from operating activities | 839 | 730 | 1,083 | |
Investing Activities | ||||
Disposal of subsidiaries, net of cash disposed | 817 | 0 | 0 | |
Purchase of long-lived assets | (417) | (416) | (455) | |
Disposal of long-lived assets | 2 | 17 | 14 | |
Settlement of foreign exchange and other hedging items | (76) | 0 | 0 | |
Cash from (used by) investing activities | 326 | (399) | (441) | |
Financing Activities | ||||
Exchangeable shares issued, net of costs | 128 | 0 | 0 | |
Distributions to Brookfield Infrastructure Partners L.P. | [1] | 0 | (33) | (250) |
Distributions to non-controlling interests | (425) | (436) | (525) | |
Acquisition of partial interest from non-controlling interest | (283) | 0 | 0 | |
Proceeds from non-recourse borrowings | 377 | 551 | 316 | |
Repayment of non-recourse borrowings | (211) | (380) | (55) | |
Repayment from Brookfield Infrastructure | 15 | 0 | 0 | |
Repayment to Brookfield Infrastructure | (469) | (19) | 0 | |
Cash used by financing activities | (868) | (317) | (514) | |
Cash and cash equivalents | ||||
Change during the year | 297 | 14 | 128 | |
Impact of foreign exchange on cash | (20) | (26) | (23) | |
Balance, beginning of year | 192 | 204 | 99 | |
Balance, end of year | $ 469 | $ 192 | $ 204 | |
[1] | Represents distributions paid to the partnership prior to March 30, 2020. Please refer to Note 3(b), Basis of Presentation and Significant Accounting Policies, for further details. Subsequent to March 30, 2020, dividends paid on our exchangeable shares are presented as interest expense on the Consolidated Statements of Operating Results. |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF OUR COMPANY | 12 Months Ended |
Dec. 31, 2021 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
ORGANIZATION AND DESCRIPTION OF OUR COMPANY | ORGANIZATION AND DESCRIPTION OF OUR COMPANY a) Brookfield Infrastructure Corporation Brookfield Infrastructure Corporation (our “company”) and its subsidiaries, own and operate regulated utilities investments in Brazil and the United Kingdom (the “businesses”). Our company was formed as a corporation established under the Business Corporation Act (British Columbia) on August 30, 2019 and is a subsidiary of Brookfield Infrastructure Partners L.P. (the “partnership”), which we also refer to as the parent company and Brookfield Infrastructure. The partnership, our company and our respective subsidiaries, are referred to collectively as our group. Brookfield Asset Management Inc. (“Brookfield”) is our company’s ultimate parent. The class A exchangeable subordinate voting shares (“exchangeable shares”) of our company are listed on the New York Stock Exchange and the Toronto Stock Exchange under the symbol “BIPC”. The registered head office of our company is 250 Vesey Street, New York, NY, United States. The exchangeable shares of our company are structured with the intention of being economically equivalent to the units of the partnership. Given the economic equivalence, we expect that the market price of the exchangeable shares will be significantly impacted by the market price of the partnership’s units and the combined business performance of our company and Brookfield Infrastructure as a whole. b) Special Distribution of our Company On March 31, 2020, the partnership completed a special distribution (the “special distribution”) whereby limited partnership unitholders of the partnership as of March 20, 2020 (the “Record Date”) received one exchangeable share for every nine limited partnership units (“units”) held. Immediately prior to the special distribution, a subsidiary of the partnership, Brookfield Infrastructure L.P. (“Holding LP”), completed a distribution of the exchangeable shares to all the holders of its equity units (the “Holding LP Distribution”). As a result of the Holding LP Distribution, (i) Brookfield and its subsidiaries (other than entities within our group) received approximately 13.7 million exchangeable shares, and (ii) the partnership received approximately 32.6 million exchangeable shares, which it subsequently distributed to unitholders pursuant to the special distribution. Immediately following the special distribution, (i) holders of units held approximately 70.4% of the issued and outstanding exchangeable shares of our company, (ii) Brookfield and its affiliates held approximately 29.6% of the issued and outstanding exchangeable shares, and (iii) a subsidiary of the partnership owned all of the issued and outstanding class B multiple voting shares, or class B shares, which represent a 75.0% voting interest in our company, and all of the issued and outstanding class C non-voting shares, or class C shares, of our company. The class C shares entitle the partnership to all of the residual value in our company after payment in full of the amount due to holders of exchangeable shares and class B shares. Holders of exchangeable shares hold an aggregate 25.0% voting interest in our company. Immediately after the special distribution, Brookfield, through its ownership of exchangeable shares, held an approximate 7.4% voting interest in our company. Holders of exchangeable shares, excluding Brookfield, held an approximate 17.6% aggregate voting interest in our company. Together, Brookfield and Brookfield Infrastructure held an approximate 82.4% voting interest in our company. The following describes the agreements resulting from the special distribution: i) Exchangeable shares At any time, holders of exchangeable shares have the right to exchange all or a portion of their exchangeable shares for one unit of the partnership per exchangeable share held or its cash equivalent based on the NYSE closing price of one unit on the date that the request for exchange is received. Due to their exchangeable features, the exchangeable shares are classified as liabilities. Our board has the right upon sixty (60) days’ prior written notice to holders of exchangeable shares to redeem all of the then outstanding exchangeable shares at any time and for any reason, in its sole discretion and subject to applicable law, including without limitation following the occurrence of certain redemption events. ii) Class B shares and class C shares At any time, holders of class B shares and class C shares will have the right to redeem for cash in an amount equal to the market price of a unit. Due to this cash redemption feature, both class B shares and class C shares are classified as financial liabilities. However, class C shares, the most subordinated class of all common shares, meet certain qualifying criteria and are presented as equity instruments given the narrow scope presentation exceptions existing in International Accounting Standard 32, Financial Instruments: Presentation (“IAS 32”). iii) Credit facilities Prior to the special distribution, our company entered into two credit agreements with Brookfield Infrastructure, one as borrower and one as lender, each providing for a ten-year revolving $1 billion credit facility to facilitate the movement of cash within our group. Our credit facility will permit our company to borrow up to $1 billion from Brookfield Infrastructure and the other will constitute an operating credit facility that will permit Brookfield Infrastructure to borrow up to $1 billion from our company. Each credit facility will contemplate potential deposit arrangements pursuant to which the lender thereunder would, with the consent of the borrower, deposit funds on a demand basis to such borrower’s account at a reduced rate of interest. Further details of the credit agreements with Brookfield Infrastructure are described in Note 22, Related Party Transactions . iv) Equity Commitment Prior to the completion of the special distribution, Brookfield Infrastructure provided our company an equity commitment in the amount of $1 billion. The equity commitment may be called by our company in exchange for the issuance of a number of class C shares or preferred shares, as the case may be, to Brookfield Infrastructure, corresponding to the amount of the equity commitment called divided (i) in the case of a subscription for class C shares, by the volume-weighted average of the trading price for one exchangeable share on the principal stock exchange on which our exchangeable shares are listed for the five The rationale for the equity commitment is to provide our company with access to equity capital on an as-needed basis and to maximize our operating and financing flexibility. v) Other arrangements with Brookfield Wholly-owned subsidiaries of Brookfield will provide management services to our company pursuant to the partnership’s existing master services agreement. Please refer to Note 3(b), Basis of Presentation and Significant Accounting Policies , for further details. There will be no change in how the base management fee and incentive distribution fees are calculated, though our company is responsible for reimbursing the partnership for our proportionate share of the total base management fee. Further details of the Master Services Agreements are described in Note 22, Related Party Transactions . |
SUBSIDIARIES
SUBSIDIARIES | 12 Months Ended |
Dec. 31, 2021 | |
Interests In Other Entities [Abstract] | |
SUBSIDIARIES | SUBSIDIARIES The following table presents details of non-wholly owned subsidiaries of our company as of December 31 for the years indicated: Country of Effective Ownership Interest (%) Voting Interest (%) Defined Name Name of entity 2021 2020 2019 2021 2020 2019 U.K. regulated distribution operation BUUK Infrastructure No 1 Limited U.K. 80 80 80 80 80 80 Brazilian regulated gas transmission operation (1) Nova Transportadora do Sudeste S.A. (1) Brazil 31 28 28 92 90 90 |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (a) Statement of Compliance These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”). These consolidated financial statements were authorized for issuance by the Board of Directors of our company on March 9, 2022. (b) Basis of Presentation The consolidated financial statements are prepared on a going concern basis. For the periods prior to March 30, 2020, the financial statements represent a combined carve-out of the assets, liabilities, revenues, expenses, and cash flows of the businesses that were contributed to our company effective March 30, 2020. During this period, all of the assets and liabilities presented were controlled by the partnership. Effective March 30, 2020, the assets and liabilities were transferred to our company at their carrying values. All intercompany balances, transactions, revenues and expenses within our company have been eliminated. Additionally, certain corporate costs have been allocated on the basis of direct usage where identifiable, with the remainder allocated based on management’s best estimate of costs attributable to our company. Management believes the assumptions underlying the historical financial information, including the assumptions regarding allocated expenses, reasonably reflect the utilization of services provided to or the benefit received by our company during the periods presented. However, due to the inherent limitations of carving out the assets, liabilities, operations and cash flows from larger entities, the historical financial information may not necessarily reflect our company’s financial position, operations and cash flow for future periods, nor do they reflect the financial position, results of operations and cash flow that would have been realized had our company been a stand-alone entity during the periods presented. Subsequent to March 30, 2020, our company is no longer allocated general corporate expenses of the parent company as the functions which they related are now provided through the amended and restated master services agreement dated as of March 13, 2015, among the Service Recipients (as defined therein), Brookfield, the Service Providers (as defined therein) and others, as amended (the “Master Services Agreement”). The base management fee related to the services received under the Master Services Agreement has been recorded as part of general and administrative expenses in the consolidated financial statements. c) Continuity of Interests As described above, our company was established on August 30, 2019 by the partnership. On March 30, 2020, the partnership contributed the businesses to our company in exchange for loans receivable, exchangeable shares, class B shares and class C shares. On March 31, 2020, the partnership completed the special distribution of the exchangeable shares to holders of units and continues to hold all of the class B and class C shares of our company. The partnership directly and indirectly controlled our company prior to the special distribution and continues to control our company subsequent to the special distribution through its interests in our company. As a result of this continuing common control, there is insufficient substance to justify a change in the measurement of our company. In accordance with our company’s and the partnership’s accounting policy, our company has reflected the businesses in its financial position and financial performance using the partnership’s carrying values prior to the contribution of the businesses to our company. To reflect this continuity of interests, these consolidated financial statements provide comparative information of our company for the periods prior to March 30, 2020, as previously reported by the partnership. The economic and accounting impact of contractual relationships created or modified in conjunction with the contribution of the businesses to our company have been reflected prospectively from the date of the contribution and have not been reflected in the results of operations or financial position of our company prior to March 30, 2020, as such items were in fact not created or modified prior thereto. Accordingly, the financial information for the periods prior to March 30, 2020 is presented based on the historical financial information for our company as previously reported by the partnership. For the period after March 30, 2020, the results are based on the actual results of our company, including the impact of contractual relationships created or modified in association with the contribution of the businesses to our company. As the partnership holds all of the class C shares of our company, which is the only class of shares presented as equity, net income and equity attributable to common equity have been allocated to the partnership prior to and after March 30, 2020. Prior to March 30, 2020, intercompany transactions between the partnership and our company have been included in these financial statements and are considered to be forgiven at the time the transaction is recorded and reflected as “Distributions to, net of contributions from, Brookfield Infrastructure Partners L.P.”. “Distributions to, net of contributions from, Brookfield Infrastructure Partners L.P.” as shown in the consolidated statements of changes in equity represents the partnership’s historical investment in our company, accumulated net income and the net effect of the transactions and allocations from the parent company. The total net effect of transactions with the parent company is reflected in the consolidated statements of cash flows as a financing activity and in the consolidated statements of financial position as equity attributable to Brookfield Infrastructure Partners L.P. d) Foreign Currency Translation The U.S. dollar is the functional and presentation currency of our company. Each of our company’s affiliates determines its own functional currency and items included in the financial statements of each affiliate are measured using that functional currency. Assets and liabilities of foreign operations having a functional currency other than the U.S. dollar are translated at the rate of exchange prevailing at the reporting date and revenues and expenses at average rates during the period. Gains or losses on translation are included as a component of other comprehensive income. On disposal of a foreign operation resulting in the loss of control, the component of other comprehensive income due to accumulated foreign currency translation relating to that foreign operation is reclassified to net income. On partial disposal of a foreign operation in which control is retained, the proportionate share of the component of other comprehensive income or loss relating to that foreign operation is reclassified to non-controlling interests in that foreign operation. Foreign currency denominated monetary assets and liabilities are translated using the rate of exchange prevailing at the reporting date and non-monetary assets and liabilities measured at fair value are translated at the rate of exchange prevailing at the date when the fair value was determined. Revenues and expenses are measured at average rates during the period. Gains or losses on translation of these items are included in net income. Gains and losses on transactions which hedge these items are also included in net income or loss. Foreign currency denominated non-monetary assets and liabilities, measured at historic cost, are translated at the rate of exchange at the transaction date. e) Business Combinations Business acquisitions in which control is acquired are accounted for using the acquisition method, other than those between and among entities under common control. The consideration of each acquisition is measured at the aggregate of the fair values at the acquisition date of assets transferred by the acquirer, liabilities incurred or assumed, and equity instruments issued by our company in exchange for control of the acquiree. Acquisition related costs are recognized in the Statements of Operating Results as incurred and included in other expenses. Where applicable, the consideration for the acquisition includes any asset or liability resulting from a contingent consideration arrangement, measured at its acquisition-date fair value. Subsequent changes in fair values are adjusted against the cost of the acquisition where they qualify as measurement period adjustments. All other subsequent changes in the fair value of contingent consideration classified as liabilities will be recognized in the Statements of Operating Results, whereas changes in the fair values of contingent consideration classified within share capital are not subsequently re-measured. Where a business combination is achieved in stages, our company’s previously held interests in the acquired entity are remeasured to fair value at the acquisition date, that is, the date our company attains control and the resulting gain or loss, if any, is recognized in the Statements of Operating Results. Amounts arising from interests in the acquiree prior to the acquisition date that have previously been recognized in other comprehensive income are reclassified to the Statements of Operating Results, where such treatment would be appropriate if that interest were disposed of. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, our company reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period, or additional assets or liabilities are recognized, to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the amounts recognized as of that date. The measurement period is the period from the date of acquisition to the date our company obtains complete information about facts and circumstances that existed as of the acquisition date. The measurement period is subject to a maximum of one year subsequent to the acquisition date. If, after reassessment, our company’s interest in the fair value of the acquiree’s identifiable net assets exceeds the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree and the fair value of the acquirer’s previously held equity interest in the acquiree if any, the excess is recognized immediately in profit or loss as a bargain purchase gain. Contingent liabilities acquired in a business combination are initially measured at fair value at the date of acquisition. At the end of subsequent reporting periods, such contingent liabilities are measured at the higher of the amount that would be recognized in accordance with IAS 37, Provisions, Contingent Liabilities and Contingent Assets and the amount initially recognized less the cumulative amount of income recognized in accordance with IFRS 15, Revenue from Contracts with Customers . f) Cash and Cash Equivalents Cash and cash equivalents include short-term highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. g) Accounts Receivable Trade receivables are recognized initially at their transaction price and subsequently measured at amortized cost using the effective interest method, less any loss allowance for expected credit losses. h) Property, Plant and Equipment Our company uses the revaluation method of accounting for all classes of property, plant and equipment. Property, plant and equipment is initially measured at cost and subsequently carried at its revalued amount, being the fair value at the date of the revaluation less any subsequent accumulated depreciation and any accumulated impairment losses. Revaluations are made on at least an annual basis, and on a sufficient basis to ensure that the carrying amount does not differ significantly from fair value. Where the carrying amount of an asset is increased as a result of a revaluation, the increase is recognized in other comprehensive income or loss and accumulated in equity within the revaluation surplus reserve, unless the increase reverses a previously recognized impairment recorded through net income, in which case that portion of the increase is recognized in net income. Where the carrying amount of an asset is decreased, the decrease is recognized in other comprehensive income to the extent of any balance existing in revaluation surplus in respect of the asset, with the remainder of the decrease recognized in net income. Revaluation gains are included in other comprehensive income but are not subsequently recycled into profit or loss. An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. The gain or loss arising on disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in the Statements of Operating Results. However, any balance accumulated in revaluation surplus is subsequently recorded in retained earnings when an asset is derecognized and not transferred to profit or loss. Depreciation of an asset commences when it is available for use. Property, plant and equipment are depreciated on a straight line or declining-balance basis over the estimated useful lives of each component of the assets as follows: Buildings Up to 50 years Machinery and equipment Up to 5 years Network systems Up to 60 years Depreciation on property, plant and equipment is calculated on a straight-line or declining-balance basis so as to depreciate the net cost of each asset over its expected useful life to its estimated residual value. The estimated useful lives, residual values and depreciation methods are reviewed at the end of each annual reporting period, with the effect of any changes recognized on a prospective basis. i) Asset Impairment At each reporting date, our company assesses whether for assets, other than those measured at fair value with changes in values recorded in profit or loss, there is any indication that such assets are impaired. This assessment includes a review of internal and external factors which includes, but is not limited to, changes in the technological, political, economic or legal environment in which the entity operates in, structural changes in the industry, changes in the level of demand, physical damage and obsolescence due to technological changes. An impairment is recognized if the recoverable amount, determined as the higher of the estimated fair value less costs of disposal or the discounted future cash flows generated from use and eventual disposal from an asset or cash generating unit is less than its carrying value. The projections of future cash flows take into account the relevant operating plans and management’s best estimate of the most probable set of conditions anticipated to prevail. Where an impairment loss subsequently reverses, the carrying amount of the asset or cash generating unit is increased to the lesser of the revised estimate of recoverable amount and the carrying amount that would have been recorded had no impairment loss been recognized previously. j) Intangible Assets Intangible assets acquired in a business combination and recognized separately from goodwill are initially recognized at their fair value at the acquisition date. Our company’s intangible assets are comprised primarily of service concession arrangements and customer order backlogs. Subsequent to initial recognition, intangible assets acquired in a business combination are reported at cost less accumulated amortization unless indefinite-lived and accumulated impairment losses, on the same basis as intangible assets acquired separately. Public service concessions that provide our company the right to charge users for a service in which the service and fee is regulated by the grantor are accounted for as an intangible asset under IFRIC 12, Service Concession Arrangements . Concession arrangements were acquired as part of the acquisition of the Brazilian regulated gas transmission operation and were initially recognized at their fair values. The intangible assets at the Brazilian regulated gas transmission operation relate to pipeline concession contracts, amortized on a straight-line basis over the estimated useful life of the underlying infrastructure with approximately 31 years remaining, on average. The customer order backlog was acquired as part of the acquisition of the U.K. regulated distribution operation and was initially recorded at its fair value. The customer order backlog represents the present value of future earnings derived from the build out of contracted connections at the acquisition date of the U.K. regulated distribution operation. The customer order backlog is amortized over its estimated useful life of 15 years. Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in profit or loss when the asset is derecognized. k) Goodwill Goodwill represents the excess of the price paid for the acquisition of an entity over the fair value of the net tangible and intangible assets and liabilities acquired. Goodwill is allocated to the cash generating unit or units to which it relates. Our company identifies cash generating units as identifiable groups of assets that are largely independent of the cash inflows from other assets or groups of assets. Goodwill is evaluated for impairment annually or more often if events or circumstances indicate there may be impairment. Impairment is determined for goodwill by assessing if the carrying value of a cash generating unit or group of cash generating units, including the allocated goodwill, exceeds its recoverable amount determined as the greater of the estimated fair value less costs of disposal or the value in use. Impairment losses recognized in respect of a cash generating unit are first allocated to the carrying value of goodwill and any excess is allocated to the carrying amount of assets in the cash generating unit. Any goodwill impairment is recognized in period in which the impairment is identified. Impairment losses on goodwill are not subsequently reversed. On disposal of an affiliate, the attributable amount of goodwill is included in the determination of the gain or loss on disposal of the operation. l) Revenue Recognition Our company recognizes revenue when it transfers control of a product or service to a customer. Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. Our company recognizes revenue when the specific criteria set out below have been met. Cash received by our company from customers is recorded as deferred revenue until the revenue recognition criteria set out below are met. Revenue from utilities infrastructure is derived from the transmission of natural gas and the distribution of energy. Distribution and transmission revenue each contain a single performance obligation that is recognized over time. The connection revenue relating to our company’s regulated distribution operation contains a distinct performance obligation that is recognized over the period that the connection is constructed, based on an input method of progress recognition on the basis that this methodology is most reflective of the underlying transfer of control. The payment terms for all of our revenue streams require payment upon completion, except for connections income whereby payment is typically collected up-front prior to the completion of any services. m) Financial Instruments and Hedge Accounting a) Financial Instrument Classification Our company classifies cash and cash equivalents and accounts receivable and other as amortized cost. Derivative assets are classified as fair value through profit or loss (“FVTPL”), except for derivatives in certain hedging relationships. Other financial assets are classified as either amortized cost or fair value through other comprehensive income (“FVTOCI”). Financial assets classified as FVTPL or FVTOCI are subsequently measured at fair value at each reporting date. For financial assets classified as FVTPL, the change in fair value is recorded through profit or loss. For financial assets classified as FVTOCI, the change in fair value is recorded in other comprehensive income. The cumulative gains or losses related to FVTOCI equity instruments are not reclassified to profit or loss on disposal, whereas the cumulative gains or losses on all other FVTOCI assets are reclassified to profit or loss on disposal. For financial instruments at amortized cost or debt instruments at FVTOCI, our company assesses if there have been significant increases in credit risk since initial recognition to determine whether lifetime or 12-month expected credit losses should be recognized. Any related loss allowances are recorded through profit or loss. Non-recourse borrowings and accounts payable and other, are classified as amortized cost, except for derivatives embedded in related financial instruments. Embedded derivatives and any other derivative liabilities are classified as FVTPL and are subsequently measured at fair value, except for derivatives in certain hedging relationships. Other financial liabilities are classified as either FVTPL or amortized cost. b) Hedge Accounting Our company selectively utilizes derivative financial instruments primarily to manage financial risks, including interest rate and foreign exchange risks. Derivative financial instruments are recorded at fair value. Hedge accounting is applied when the derivative is designated as a hedge of a specific exposure and that the hedging relationship meets all of the hedge effectiveness requirements. Hedge accounting is discontinued prospectively when the derivative no longer qualifies as a hedge or the hedging relationship is terminated. Once discontinued, the cumulative change in fair value of a derivative that was previously recorded in other comprehensive income by the application of hedge accounting is recognized in profit or loss over the remaining term of the original hedging relationship as amounts related to the hedged item are recognized in profit or loss. The assets or liabilities relating to unrealized mark-to-market gains and losses on derivative financial instruments are recorded in financial assets and financial liabilities, respectively. Unrealized gains and losses on interest rate contracts designated as hedges of future variable interest payments are included in equity as a cash flow hedge when the interest rate risk relates to an anticipated variable interest payment. The periodic exchanges of payments on interest rate swap contracts designated as hedges of debt are recorded on an accrual basis as an adjustment to interest expense. n) Income Taxes Income tax expense represents the sum of the tax accrued in the period and deferred income tax. a) Current income tax Current income tax assets and liabilities are measured at the amount expected to be paid to tax authorities, net of recoveries based on the tax rates and laws enacted or substantively enacted at the reporting date. Current income tax relating to items recognized directly in share capital are also recognized directly in share capital and other comprehensive income. b) Deferred income tax Deferred income tax liabilities are provided for using the liability method on temporary differences between the tax bases used in the computation of taxable income and carrying amounts of assets and liabilities in the consolidated financial statements. Deferred income tax assets are recognized for all deductible temporary differences, carry forward of unused tax credits and unused tax losses, to the extent that it is probable that deductions, tax credits and tax losses can be utilized. Such deferred income tax assets and liabilities are not recognized if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the taxable income nor the accounting income, other than in a business combination. The carrying amount of deferred income tax assets are reviewed at each reporting date and reduced to the extent it is no longer probable that the income tax asset will be recovered. Deferred income tax liabilities are recognized for taxable temporary differences associated with investments in affiliates, except where our company is able to control the reversal of the temporary difference and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred income tax assets arising from deductible temporary differences associated with such investments and interests are only recognized to the extent that it is probable that there will be sufficient taxable income against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred income tax liabilities and assets reflect the tax consequences that would follow from the manner in which our company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Deferred income tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority within a single taxable entity or our company intends to settle its current tax assets and liabilities on a net basis in the case where there exist different taxable entities in the same taxation authority and when there is a legally enforceable right to set off current tax assets against current tax liabilities. o) Assets Held for Sale Non-current assets and disposal groups are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the non-current asset or disposal group is available for immediate sale in its present condition. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification subject to limited exceptions. When our company is committed to a sale plan involving loss of control of a subsidiary, all of the assets and liabilities of that subsidiary are classified as held for sale when the criteria described above are met, regardless of whether our company will retain a non-controlling interest in its former subsidiary after the sale. Non-current assets and disposal groups classified as held for sale are measured at the lower of their previous carrying amount and fair value less costs to sell. Non-current assets classified as held for sale and the assets of a disposal group are presented separately from other assets in the Statements of Financial Position and are classified as current. The liabilities of a disposal group classified as held for sale are presented separately from other liabilities in the Statements of Financial Position. Once classified as held for sale, property, plant and equipment and intangible assets are not depreciated or amortized, respectively. p) Provisions Provisions are recognized when our company has a present obligation, either legal or constructive, as a result of a past event, it is probable that our company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the obligation, its carrying amount is the present value of those cash flows. When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognized as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably. q) Earnings per Share Our company‘s basic and diluted earnings per share have not been presented in the consolidated financial statements. As outlined in Note 13, Financial Liabilities , and Note 18, Equity , exchangeable and class B shares are classified as financial liabilities, while class C shares are classified as financial liabilities, but presented as equity instruments given the narrow scope presentation exceptions existing in IAS 32. As each share classification represents a financial liability, they do not constitute ordinary shares. Refer to the aforementioned notes for further details. r) Operating Segments IFRS 8, Operating Segments , requires operating segments to be determined based on information that is regularly reviewed by the Executive Management and the Board of Directors for the purpose of allocating resources to the segment and to assess its performance. Our company has one operating segment, utilities, comprised of our U.K. regulated distribution operation and our Brazilian regulated gas transmission operation. s) Significant Accounting Judgments and Key Sources of Estimation Uncertainty The preparation of financial statements requires management to make significant judgments, estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses that are not readily apparent from other sources, during the reporting period. These estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. Significant judgments and estimates made by management and utilized in the normal course of preparing our company’s consolidated financial statements are outlined below. a) Common control transactions IFRS 3 (2008), Business Combinations does not include specific measurement guidance for transfers of businesses or subsidiaries between entities under common control. Accordingly, our company has developed a policy to account for such transactions taking into consideration other guidance in the IFRS framework and pronouncements of other standard-setting bodies. Our company’s policy is to record assets and liabilities recognized as a result of transactions between entities under common control at the carrying value on the transferor’s financial statements, and to have the consolidated statements of financial position, operating results, changes in equity and cash flows reflect the results of combining entities for all periods presented for which the entities were under the transferor’s common control, irrespective of when the combination takes place. b) Financial instruments Our company’s accounting policies relating to derivative financial instruments are described in Note 3(m), Financial Instruments and Hedge Accounting . The significant judgments inherent in these policies relate to applying the criteria to the assessment of the effectiveness of hedging relationships. Estimates and assumptions used in determining the fair value of financial instruments are equity and commodity prices; future interest rates; the credit worthiness of our company relative to its counterparties; the credit risk of |
DISPOSITION OF BUSINESSES
DISPOSITION OF BUSINESSES | 12 Months Ended |
Dec. 31, 2021 | |
DISPOSITION OF BUSINESS [Abstract] | |
DISPOSITION OF BUSINESSES | DISPOSITION OF BUSINESSES a) Disposition of our U.K. regulated distribution business’s portfolio of smart meters On May 12, 2021, our U.K. regulated distribution business sold its smart meters business for gross consideration of approximately $820 million. After the repayment of debt and working capital requirements at the business, our company received net proceeds of approximately $340 million. The business recognized a gain of approximately $195 million in Other income (expense) on the Consolidated Statements of Operating Results, of which approximately $155 million is attributable to our company. Our company’s share of accumulated revaluation surplus of $142 million was reclassified from accumulated other comprehensive income directly to retained earnings and recorded within Other items on the Consolidated Statements of Equity. Our company’s share of net losses relating to previous foreign exchange movements of $17 million was reclassified from accumulated other comprehensive income to Other income (expense) on the Consolidated Statements of Operating Results |
ACQUISITION OF BUSINESSES
ACQUISITION OF BUSINESSES | 12 Months Ended |
Dec. 31, 2021 | |
ACQUISITION OF BUSINESS [Abstract] | |
ACQUISITION OF BUSINESSES | ACQUISITION OF BUSINESSES a) Acquisition of additional interest in our Brazilian regulated gas transmission operation On April 30, 2021, Brookfield Infrastructure, alongside institutional partners (the “NTS consortium”), acquired an additional 3% interest (NTS consortium total of 10%) in our Brazilian regulated gas transmission operation, increasing our company’s ownership of the business to approximately 31%. Total consideration paid was $87 million (NTS consortium total of $283 million), all of which was funded using asset level debt raised on closing. As a result of the purchase price exceeding the previous carrying value of non-controlling interests, a loss of $32 million was recognized directly in ownership changes and recorded within Other items on the Consolidated Statements of Equity. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Measurement [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair values are determined by reference to quoted bid or ask prices, as appropriate. Where bid and ask prices are unavailable, the closing price of the most recent transaction of that instrument is used. In the absence of an active market, fair values are determined based on prevailing market rates such as bid and ask prices, as appropriate for instruments with similar characteristics and risk profiles or internal or external valuation models, such as option pricing models and discounted cash flow analyses, using observable market inputs. Fair values determined using valuation models require the use of assumptions concerning the amount and timing of estimated future cash flows and discount rates. In determining those assumptions, our company looks primarily to external readily observable market inputs such as interest rate yield curves, currency rates, and price and rate volatilities as applicable. The fair value of interest rate swap contracts which form part of financing arrangements is calculated by way of discounted cash flows using market interest rates and applicable credit spreads. Classification of Financial Instruments Financial instruments classified as fair value through profit or loss are carried at fair value on the Statements of Financial Position. Changes in the fair values of financial instruments classified as fair value through profit or loss are recognized in profit or loss. Mark-to-market adjustments on hedging items for those in an effective hedging relationship and changes in the fair value of securities designated as fair value through other comprehensive income are recognized in other comprehensive income. Carrying Value and Fair Value of Financial Instruments The following table provides the allocation of financial instruments and their associated financial instrument classifications as at December 31, 2021: US$ MILLIONS Financial Instrument Classification MEASUREMENT BASIS Fair value through profit or loss Amortized Cost Total Financial assets Cash and cash equivalents $ — $ 469 $ 469 Accounts receivable and other (current and non-current) — 402 402 Financial assets (1) 30 — 30 Due from Brookfield Infrastructure — 1,093 1,093 Total $ 30 $ 1,964 $ 1,994 Financial liabilities Accounts payable and other (current and non-current) $ — $ 416 $ 416 Non-recourse borrowings — 3,556 3,556 Exchangeable and class B shares (2) — 4,466 4,466 Financial liabilities (1) — 995 995 Loans payable to Brookfield Infrastructure — 131 131 Total $ — $ 9,564 $ 9,564 (1) Derivative instruments which are elected for hedge accounting totaling $30 million are included in financial assets and $nil are included in financial liabilities. (2) Class C shares are also classified as financial liabilities due to their cash redemption feature. As discussed in Note 1(b)(ii), Organization and Description of our Company, the class C shares meet certain qualifying criteria and are presented as equity. See Note 18, Equity. The following table provides the allocation of financial instruments and their associated financial instrument classifications as at December 31, 2020: US$ MILLIONS Financial Instrument Classification MEASUREMENT BASIS Fair value through profit or loss Amortized Cost Total Financial assets Cash and cash equivalents $ — $ 192 $ 192 Accounts receivable and other (current and non-current) — 427 427 Financial assets (1) 27 — 27 Total $ 27 $ 619 $ 646 Financial liabilities Accounts payable and other (current and non-current) $ — $ 334 $ 334 Non-recourse borrowings (current and non-current) — 3,477 3,477 Exchangeable and class B shares (2) — 2,221 2,221 Financial liabilities (current and non-current) (1) 69 962 1,031 Loans payable to Brookfield Infrastructure — 1,143 1,143 Total $ 69 $ 8,137 $ 8,206 (1) Derivative instruments which are elected for hedge accounting totaling $27 million are included in financial assets and $nil are included in financial liabilities. (2) Class C shares are also classified as financial liabilities due to their cash redemption feature. As discussed in Note 1(b)(ii), Organization and Description of our Company, the class C shares meet certain qualifying criteria and are presented as equity. See Note 18, Equity. The following table provides the carrying values and fair values of financial instruments as at December 31, 2021 and December 31, 2020: Dec. 31, 2021 Dec. 31, 2020 US$ MILLIONS Carrying Value Fair Value Carrying Value Fair Value Financial assets Cash and cash equivalents $ 469 $ 469 $ 192 $ 192 Accounts receivable and other 402 402 427 427 Financial assets (current and non-current) 30 30 27 27 Due from Brookfield Infrastructure 1,093 1,093 — — Total $ 1,994 $ 1,994 $ 646 $ 646 Dec. 31, 2021 Dec. 31, 2020 US$ MILLIONS Carrying Value Fair Value Carrying Value Fair Value Financial liabilities Accounts payable and other (current and non-current) $ 416 $ 416 $ 334 $ 334 Non-recourse borrowings (current and non-current) (1) 3,556 3,627 3,477 3,723 Exchangeable and class B shares (2) 4,466 4,466 2,221 2,221 Financial liabilities (current and non-current) 995 995 1,031 1,031 Loans payable to Brookfield Infrastructure 131 131 1,143 1,143 Total $ 9,564 $ 9,635 $ 8,206 $ 8,452 (1) Non-recourse borrowings are classified under level 2 of the fair value hierarchy. For level 2 fair values, future cash flows are estimated based on observable forward interest rates at the end of the reporting period. (2) Class C shares are also classified as financial liabilities due to their cash redemption feature. As discussed in Note 1(b)(ii), Organization and Description of our Company, the class C shares meet certain qualifying criteria and are presented as equity. For the purpose of the disclosure above, the class C shares have a fair value of $85 million as at December 31, 2021. Hedging Activities Our company uses derivatives and non-derivative financial instruments to manage or maintain exposures to interest and currency risks. For certain derivatives which are used to manage exposures, our company determines whether hedge accounting can be applied. When hedge accounting can be applied, a hedge relationship can be designated as a fair value hedge, cash flow hedge or a hedge of foreign currency exposure of a net investment in a foreign operation with a functional currency other than the U.S. dollar. To qualify for hedge accounting, the derivative must be designated as a hedge of a specific exposure and the hedging relationship must meet all of the hedge effectiveness requirements in accomplishing the objective of offsetting changes in the fair value or cash flows attributable to the hedged risk both at inception and over the life of the hedge. If it is determined that the hedging relationship does not meet all of the hedge effectiveness requirements, hedge accounting is discontinued prospectively. Cash Flow Hedges Our company uses interest rate swaps to hedge the variability in cash flows related to a variable rate asset or liability and highly probable forecasted issuances of debt. The settlement dates coincide with the dates on which the interest is payable on the underlying debt, and the amount accumulated in equity is reclassified to profit or loss over the period that the floating rate interest payments on debt affect profit or loss. For the year ended December 31, 2021, pre-tax net unrealized gains of $nil (2020: $5 million, 2019: $5 million) were recorded in other comprehensive income for the effective portion of the cash flow hedges. As at December 31, 2021, there was a net derivative asset balance of $30 million relating to derivative contracts designated as cash flow hedges (2020: $27 million). Fair Value Hierarchical Levels—Financial Instruments Fair value hierarchical levels are directly determined by the amount of subjectivity associated with the valuation inputs of these assets and liabilities, and are as follows: Level 1 — Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 — Inputs other than quoted prices included in Level 1 are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. Fair valued assets and liabilities that are included in this category are primarily certain derivative contracts and other financial assets carried at fair value in an inactive market. Level 3 — Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to determining the estimate. Fair valued assets and liabilities that are included in this category are interest rate swap contracts, derivative contracts, certain equity securities carried at fair value which are not traded in an active market and the non-controlling interest’s share of net assets of limited life funds. The fair value of our company’s financial assets and financial liabilities are measured at fair value on a recurring basis. The following table summarizes the valuation techniques and significant inputs for our company’s financial assets and financial liabilities: US$ MILLIONS Fair value hierarchy Dec. 31, 2021 Dec. 31, 2020 Interest rate swaps & other Level 2 (1) Financial assets $ 30 $ 27 Financial liabilities — 69 (1) Valuation technique: Discounted cash flow. Future cash flows are estimated based on forward exchange rates (from observable forward exchange rates at the end of the reporting period) and contract forward rates, discounted at a rate that reflects our credit risk and the credit risk of various counterparties. Assets and liabilities measured at fair value on a recurring basis include $30 million (2020: $27 million) of financial assets and $nil (2020: $69 million) of financial liabilities which are measured at fair value using valuation inputs based on management’s best estimates. During the year, no transfers were made between level 1 and 2 or level 2 and 3. |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 12 Months Ended |
Dec. 31, 2021 | |
Cash and cash equivalents [abstract] | |
CASH AND CASH EQUIVALENTS | CASH AND CASH EQUIVALENTS As of December 31, US$ MILLIONS 2021 2020 Cash $ 43 $ 8 Cash equivalents (1) 426 184 Total cash and cash equivalents $ 469 $ 192 (1) Short-term, highly liquid investments with maturities of less than 90 days at acquisition that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. |
ACCOUNTS RECEIVABLE AND OTHER
ACCOUNTS RECEIVABLE AND OTHER | 12 Months Ended |
Dec. 31, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | |
ACCOUNTS RECEIVABLE AND OTHER | ACCOUNTS RECEIVABLE AND OTHER As of December 31, US$ MILLIONS 2021 2020 Current: Accounts receivable (1) $ 402 $ 345 Prepayments & other assets 46 49 Total current $ 448 $ 394 Non-current: Other assets $ 15 $ 101 Total non-current $ 15 $ 101 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2021 | |
Property, plant and equipment [abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT US$ MILLIONS Gross carrying amount Accumulated depreciation Accumulated fair value adjustments Total Balance at January 1, 2020 $ 3,696 $ (567) $ 1,368 $ 4,497 Additions, net of disposals 358 6 — 364 Non-cash additions 6 (3) — 3 Depreciation expense — (131) — (131) Fair value adjustments — — 215 215 Net foreign currency exchange differences 137 (24) 50 163 Balance at December 31, 2020 $ 4,197 $ (719) $ 1,633 $ 5,111 Additions, net of disposals 367 10 — 377 Assets held by subsidiaries disposed during the period (1) (599) 163 (217) (653) Non-cash disposals (1) (3) — (4) Depreciation expense — (128) — (128) Fair value adjustments — — 134 134 Net foreign currency exchange differences (29) 4 (9) (34) Balance at December 31, 2021 $ 3,935 $ (673) $ 1,541 $ 4,803 (1) See Note 4, Disposition of Businesses, for additional information. Property, plant and equipment of our company is predominantly comprised of last mile utility connections at our U.K. regulated distribution operation which provides essential services and generate regulated cash flows. Tariffs are set on the basis of a regulated asset base, provides inflation protection, and are typically adjusted annually. Our U.K. operation has a diverse customer base throughout England, Scotland, and Wales, which underpins its cash flows. Our company’s property, plant, and equipment is measured at fair value on a recurring basis with an effective date of revaluation for all asset classes of December 31, 2021 and 2020. Our company determined fair value under the income method. Assets under development were revalued where fair value could be reliably measured. The following table summarizes the valuation techniques and significant inputs for our company’s property, plant and equipment assets. Dec. 31, 2021 Dec. 31, 2020 Valuation Discount Terminal Investment Valuation Discount Terminal Investment Discounted cash flow model 7% 20x 10 yrs Discounted cash flow model 7% 23x 10 yrs An increase in the discount rate would lead to a decrease in the fair value of property, plant and equipment. Conversely, an increase to the terminal value multiple would increase the fair value of property, plant and equipment. Our company has classified all property, plant and equipment under level 3 of the fair value hierarchy. At December 31, 2021, our company carried out an assessment of the fair value of its property, plant and equipment, resulting in a gain from revaluation of $134 million (2020: $215 million) which was recognized in revaluation surplus in the Consolidated Statements of Comprehensive Income. Our valuation of property, plant and equipment is underpinned by regulated cash flow. Our local revenues have been predominantly unimpacted to date by the recent changes in the macroeconomic environment as we earn a regulated return on an asset base for making the infrastructure available to users with minimal volume and price risk. Key drivers behind the revaluation gain recorded include growth in underlying cash flows at our U.K. regulated distribution business associated with new connections added during the year. Had the assets been carried under the cost model, the carrying amount of property, plant and equipment would have been $3,464 million as at December 31, 2021 (2020: $3,688 million). |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
Intangible Assets [Abstract] | |
INTANGIBLE ASSETS | INTANGIBLE ASSETS As of US$ MILLIONS Dec. 31, 2021 Dec. 31, 2020 Cost $ 3,332 $ 3,527 Accumulated amortization (645) (579) Total $ 2,687 $ 2,948 Intangible assets are allocated to the following cash generating units: As of US$ MILLIONS Dec. 31, 2021 Dec. 31, 2020 Brazilian regulated gas transmission operation $ 2,645 $ 2,903 U.K. regulated distribution operation 42 45 Total $ 2,687 $ 2,948 Our company’s intangible assets are primarily related to concession arrangements with the local energy regulator, Agência Nacional do Petróleo, Gás Natural e Biocombustíveis (“ANP”), at our Brazilian regulated gas transmission operation. Total capacity is fully contracted under long-term “ship-or-pay” gas transportation agreements (“GTA”) and therefore the business is exposed to no volume or price risk. Each GTA takes into account a return on regulatory asset base (“RAB”), and the tariffs are calculated on an inflation adjusted regulatory weighted average cost of capital (“WACC”) fixed for the life of GTAs. On April 8, 2021, new legislation was passed in Brazil which provides our Brazilian regulated gas transmission operation the right to operate the gas pipelines perpetually. Prior to the change in legislation, these intangible assets were amortized over the life of the concession. As a result of the new legislation and the right to operate the pipelines perpetually, the intangible assets are now amortized over the estimated useful life of the underlying infrastructure. This change extended the estimated useful life of these intangible assets by approximately 11 years and reduced amortization expense in the current year by $37 million. The intangible assets at our U.K. regulated distribution operation relate to customer order backlogs, which represents the present value of future earnings derived from the build out of contracted connections at the acquisition date of the U.K. regulated distribution operation. Our intangible assets are evaluated for impairment annually or more often if events or circumstances indicate there may be impairment. Despite recent volatility observed in commodity and foreign exchange markets and the interruption to global supply chains as a result of the global pandemic, our intangible assets remain largely unaffected, with no impairment required during the year ended December 31, 2021. Our intangible assets represent long-term critical infrastructure supported by regulated or highly contracted revenues which help protect value over the long term. The following table presents the change in the cost balance of intangible assets: For the year ended US$ MILLIONS Dec. 31, 2021 Dec. 31, 2020 Cost at beginning of the year $ 3,527 $ 4,479 Additions, net of disposals 38 35 Non cash additions 5 — Foreign currency translation (238) (987) Cost at end of year $ 3,332 $ 3,527 The following table presents the accumulated amortization for our company’s intangible assets: For the year ended US$ MILLIONS Dec. 31, 2021 Dec. 31, 2020 Accumulated amortization at beginning of year $ (579) $ (543) Amortization (108) (152) Foreign currency translation 42 116 Accumulated amortization at end of year $ (645) $ (579) |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2021 | |
Intangible Assets [Abstract] | |
GOODWILL | GOODWILL The following table presents the carrying amount for our company’s goodwill: As of US$ MILLIONS Dec. 31, 2021 Dec. 31, 2020 Balance at beginning of the year $ 528 $ 667 Foreign currency translation and other (39) (139) Balance at end of the year $ 489 $ 528 Goodwill is evaluated for impairment annually or more often if events or circumstances indicate there may be impairment. Impairment is determined by assessing if the carrying value of cash generating units or a group of cash generating units, including the allocated goodwill, exceeds its recoverable amount determined as the greater of the estimated fair value less costs of disposal or the value in use. During 2021, the carrying amount of each cash generating unit was determined to not exceed its recoverable amount. Goodwill is allocated to the following cash generating units or group of cash generating units: As of US$ MILLIONS Dec. 31, 2021 Dec. 31, 2020 U.K. regulated distribution operation $ 33 $ 38 Brazilian regulated gas transmission operation 456 490 Total $ 489 $ 528 The recoverable amount of the goodwill has been determined using a discounted cash flow model whereby the fair value measurement is classified under level 3 on the fair value hierarchy. The key inputs in determining the fair value of each cash generating unit under the discounted cash flow model are the utilization of discount rates ranging from 7% to 14%, terminal value multiples of 6x to 20x and discrete cash flow periods from 10 to 20 years. |
ACCOUNTS PAYABLE AND OTHER
ACCOUNTS PAYABLE AND OTHER | 12 Months Ended |
Dec. 31, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | |
ACCOUNTS PAYABLE AND OTHER | ACCOUNTS PAYABLE AND OTHER As of US$ MILLIONS Dec. 31, 2021 Dec. 31, 2020 Current: Accounts payable $ 39 $ 84 Accrued & other liabilities 413 265 Deferred revenue (1) 153 156 Total current $ 605 $ 505 Non-current: Deferred revenue (1) $ 89 $ 76 Provisions & other liabilities 30 20 Total non-current $ 119 $ 96 (1) Deferred revenue relates primarily to cash contributions from third parties to build future natural gas and electricity connections at our company’s U.K. regulated distribution operation. The deferred revenue is recorded on receipt of cash payments and recognized as revenue as services are rendered over the life of the connections arrangement. Of the deferred revenue outstanding at December 31, 2021, 63% is estimated to be realized during 2022 and 37% during 2023. Our company’s exposure to currency and liquidity risk related to trade and other payables is disclosed in Note 24, Financial Risk Management. |
FINANCIAL LIABILITIES
FINANCIAL LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
Financial Instruments [Abstract] | |
FINANCIAL LIABILITIES | FINANCIAL LIABILITIES As of US$ MILLIONS Dec. 31, 2021 Dec. 31, 2020 Current: Inflation swaps $ — $ 23 Deferred consideration (a) 995 — Total current financial liabilities $ 995 $ 23 Non-current: Inflation swaps $ — $ 46 Deferred consideration (a) — 962 Total non-current financial liabilities $ — $ 1,008 a) Deferred consideration Deferred consideration is related to the April 4, 2017 acquisition of Nova Transportadora do Sudeste S.A. (“NTS”), our Brazilian regulated gas transmission business. The deferred consideration is denominated in U.S. dollars and accrues interest at 3.35% compounded annually. The financial liability is measured at amortized cost and is payable on the fifth anniversary of the date of acquisition. Exchangeable shares, class B shares and class C shares The exchangeable and class B shares are classified as liabilities due to their exchangeable and cash redemption features. Upon issuance, exchangeable and class B shares are recognized at their fair value. Subsequent to initial recognition, the exchangeable and class B shares are recognized at amortized cost and remeasured to reflect changes in the contractual cash flows associated with the shares. These contractual cash flows are based on the price of one unit. In August 2021, the partnership acquired a controlling interest in Inter Pipeline Ltd. (“IPL”) for consideration comprised of cash, exchangeable shares and class B exchangeable limited partnership units (“BIPC Exchangeable LP Units”) of Brookfield Infrastructure Corporation Exchange Limited Partnership (“BIPC Exchange LP”). BIPC Exchange LP is a subsidiary of the partnership and holders of BIPC Exchangeable LP Units have the right to require the partnership to purchase BIPC Exchangeable LP Units and deliver one exchangeable share for each BIPC Exchangeable LP Unit purchased. During the year ended December 31, 2021, our company issued 26.0 million exchangeable shares in connection with the partnership’s acquisition of IPL and 0.4 million exchangeable shares in connection with exchange requests from BIPC Exchange LP unit holders. Upon issuance, the exchangeable shares were recognized at their fair value. In November 2021, our company issued 2.1 million exchangeable shares at $62.70 per share in public offerings in the U.S. and Canada. In total, $134 million of gross proceeds were raised through the issuance and $6 million in equity issuance costs were incurred. During the year ended December 31, 2021, our shareholders exchanged approximately 24,366 exchangeable shares for an equal number of units. As at December 31, 2021, the exchangeable and class B shares were remeasured to reflect the NYSE closing price of one unit, $60.81 per share. Remeasurement gains or losses associated with these shares are recorded in the Consolidated Statements of Operating Results. Our company declared and paid dividends of $115 million on its exchangeable shares outstanding during the year ended December 31, 2021 (2020: $66 million, 2019: $nil). Dividends paid on exchangeable shares are presented as interest expense in the Consolidated Statements of Operating Results. The following table provides a continuity schedule of outstanding exchangeable shares and class B shares along with our corresponding liability and remeasurement gains and losses. Exchangeable shares outstanding Class B shares outstanding Exchangeable and class B shares Balance at January 1, 2020 — — $ — Share issuance (1) 46,349,323 1 1,765 Shares exchanged to units (1,388,874) — (55) Remeasurement of liability — — 511 Balance at December 31, 2020 44,960,449 1 $ 2,221 Share issuance (1) 28,130,103 — 1,776 Share issuance - BIPC Exchangeable LP Unit exchanges 371,327 — 23 Shares exchanged to units (24,366) — (1) Remeasurement of liability — — 447 Balance at December 31, 2021 73,437,513 1 $ 4,466 (1) During the year ended December 31, 2021, our company issued 2.1 million shares in exchange for net cash consideration of $128 million. The remaining shares were issued to subsidiaries of the partnership in exchange for non-cash consideration including loans receivable and settlements of loan payable. Similar to class B shares, class C shares are classified as liabilities due to their cash redemption feature. However, class C shares, the most subordinated class of all common shares, meet certain qualifying criteria and are presented as equity instruments given the narrow scope presentation exceptions existing in IAS 32. Refer to Note 18, Equity, for further details related to class C shares. |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2021 | |
Financial Instruments [Abstract] | |
BORROWINGS | BORROWINGS (a) Non-Recourse Borrowings The current and non-current balances of non-recourse borrowings are as follows: As of US$ MILLIONS Dec. 31, 2021 Dec. 31, 2020 Current $ — $ 11 Non-current 3,556 3,466 Total $ 3,556 $ 3,477 Non-recourse borrowings increased by $79 million since December 31, 2020. The increase is attributable to additional net borrowings of $166 million associated with growth initiatives, partially offset by a decrease in foreign denominated debt as the Brazilian real and British pound depreciated relative to the U.S. dollar during the year ended December 31, 2021. Principal repayments on non-recourse borrowings due over the next five years and thereafter are as follows: US$ MILLIONS Total 2022 $ — 2023 1,276 2024 — 2025 156 2026 115 Thereafter 2,016 Total principal repayments 3,563 Deferred financing costs and other (7) Total - Dec. 31, 2021 $ 3,556 Total - Dec. 31, 2020 $ 3,477 The weighted average interest rates of non-recourse borrowings are as follows: As of December 31, 2021 2020 Weighted average interest rates 4 % 3 % Principal repayments on non-recourse borrowings in their local currency are as follows: US$ MILLIONS, except as noted Dec. 31, 2021 Local Currency Dec. 31, 2020 Local Currency U.S. dollars $ 300 USD 300 $ 300 USD $ 300 British pounds 2,043 GBP 1,510 2,174 GBP 1,590 Brazilian real 1,220 BRL 6,807 1,012 BRL 5,260 (b) Supplemental Information Details of the “Changes in liabilities from financing activities”, including both changes arising from cash flows and non-cash changes are as follows: US$ MILLIONS Dec. 31, 2021 Cash Flows Foreign Exchange Movement Dec. 31, 2020 Non-recourse borrowings 3,556 166 (87) 3,477 US$ MILLIONS Dec. 31, 2020 Cash Flows Foreign Exchange Movement Dec. 31, 2019 Non-recourse borrowings 3,477 171 (220) 3,526 |
NON-WHOLLY OWNED SUBSIDIARIES
NON-WHOLLY OWNED SUBSIDIARIES | 12 Months Ended |
Dec. 31, 2021 | |
Interests In Other Entities [Abstract] | |
NON-WHOLLY OWNED SUBSIDIARIES | NON-WHOLLY OWNED SUBSIDIARIES The following tables present summarized accounts for non-wholly owned subsidiaries on the Consolidated Statements of Financial Position: As of December 31, 2021 US$ MILLIONS Current Non-Current Current Non-Current Non-Controlling Equity in Net Assets Attributable to the partnership U.K. regulated distribution operation $ 249 $ 4,961 $ 316 $ 3,285 $ 314 $ 1,295 Brazilian regulated gas transmission operation 668 3,115 1,278 2,028 389 88 Total $ 917 $ 8,076 $ 1,594 $ 5,313 $ 703 $ 1,383 As of December 31, 2020 US$ MILLIONS Current Non-Current Current Non-Current Non-Controlling Equity in Net Assets Attributable to the partnership U.K. regulated distribution operation $ 181 $ 5,264 $ 333 $ 3,241 $ 367 $ 1,504 Brazilian regulated gas transmission operation 405 3,494 203 2,772 783 141 Total $ 586 $ 8,758 $ 536 $ 6,013 $ 1,150 $ 1,645 The following tables present summarized accounts for non-wholly owned subsidiaries on the Consolidated Statements of Operating Results: Year ended December 31, 2021 Attributable to non-controlling interest Attributable to US$ MILLIONS Revenue Net Other Net Other U.K. regulated distribution operation $ 569 $ 34 $ 6 $ 138 $ 26 Brazilian regulated gas transmission operation 1,074 361 (87) 150 (31) Total $ 1,643 $ 395 $ (81) $ 288 $ (5) Year ended December 31, 2020 Attributable to non-controlling interest Attributable to US$ MILLIONS Revenue Net Other Net Other U.K. regulated distribution operation $ 488 $ 11 $ 42 $ 46 $ 167 Brazilian regulated gas transmission operation 942 309 (399) 116 (152) Total $ 1,430 $ 320 $ (357) $ 162 $ 15 Year ended December 31, 2019 Attributable to non-controlling interest Attributable to US$ MILLIONS Revenue Net Other Net Other U.K. regulated distribution operation $ 478 $ 24 $ 71 $ 103 $ 278 Brazilian regulated gas transmission operation 1,141 349 (83) 132 (33) Total $ 1,619 $ 373 $ (12) $ 235 $ 245 The following tables present summarized accounts for non-wholly owned subsidiaries on the Consolidated Statements of Cash Flows: Cash Flow Activities Year ended December 31, 2021 Year ended December 31, 2020 US$ MILLIONS Operating Investing Financing Operating Investing Financing U.K. regulated distribution operation $ 273 $ 344 $ (582) $ 241 $ (372) $ 133 Brazilian regulated gas transmission operation 768 (32) (473) 634 (34) (588) Total $ 1,041 $ 312 $ (1,055) $ 875 $ (406) $ (455) Cash Flow Activities Year ended December 31, 2019 US$ MILLIONS Operating Investing Financing U.K. regulated distribution operation $ 271 $ (416) $ 147 Brazilian regulated gas transmission operation 839 (21) (702) Total $ 1,110 $ (437) $ (555) |
REVENUES
REVENUES | 12 Months Ended |
Dec. 31, 2021 | |
Revenue [abstract] | |
REVENUES | REVENUES a) Revenues by service line Substantially all of these revenues are recognized over time as services are rendered. The following table disaggregates revenues by service line: For the year ended December 31, US$ MILLIONS 2021 2020 2019 Gas Transmission $ 1,074 $ 942 $ 1,141 Distribution 374 346 307 Connections 167 118 152 Other 28 24 19 Total $ 1,643 $ 1,430 $ 1,619 During the year ended December 31, 2021, revenues benefited from inflationary tariff increases and capital commissioned into rate base. These benefits were partially offset by the depreciation of the Brazilian real. b) Revenues from external customers The following table disaggregates revenues by geographical region. For the year ended December 31, US$ MILLIONS 2021 2020 2019 Brazil $ 1,074 $ 942 $ 1,141 United Kingdom 569 488 478 $ 1,643 $ 1,430 $ 1,619 Our company’s customer base is comprised predominantly of investment grade companies, with only one customer that makes up greater than 10% of our company’s consolidated revenues. For the year ended December 31, 2021, revenue generated from this customer was $1,074 million (2020: $942 million, 2019: $1,141 million). Our company has completed a review of the credit risk of key counterparties. Based on their liquidity position, business performance, and aging of our accounts receivable, we do not have any significant changes in expected credit losses at this time. Our company continues to monitor the credit risk of our counterparties in light of the economic impact of COVID-19 but has experienced no issues to date. c) Non-Current Assets As of US$ MILLIONS Dec. 31, 2021 Dec. 31, 2020 Brazil $ 3,115 $ 3,494 United Kingdom 4,961 5,264 $ 8,076 $ 8,758 |
DIRECT OPERATING COSTS
DIRECT OPERATING COSTS | 12 Months Ended |
Dec. 31, 2021 | |
Direct Operating Costs [Abstract] | |
DIRECT OPERATING COSTS | DIRECT OPERATING COSTS Direct operating costs are costs incurred to earn revenue and include all attributable expenses. The following table lists direct operating costs for the years ended December 31, 2021, 2020 and 2019. Comparative figures have been reclassified to conform to the current period’s presentation: US$ MILLIONS 2021 2020 2019 Depreciation and amortization $ 236 $ 283 $ 308 Transportation and distribution 162 145 153 Operations and maintenance 49 39 38 Compensation 44 34 40 Cost of inventory 8 4 — Other 27 22 13 Total $ 526 $ 527 $ 552 |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2021 | |
Equity [abstract] | |
EQUITY | EQUITY Our company’s equity is comprised of the following shares: Class C Shares Shares outstanding (Shares) Share capital Balance at January 1, 2020 — $ — Share issuance 1,402,451 53 Balance at December 31, 2020 1,402,451 $ 53 Share issuance — — Balance at December 31, 2021 1,402,451 $ 53 In conjunction with the special distribution, our company issued approximately 46.3 million exchangeable shares, 1 class B share and 1.4 million class C shares. Due to the exchange feature of the exchangeable shares and the cash redemption feature of the class B and class C shares, the exchangeable shares, the class B shares, and the class C shares are classified as financial liabilities. However, class C shares, the most subordinated of all common shares, meet certain qualifying criteria and are presented as equity instruments given the narrow scope presentation exceptions existing in IAS 32. Refer to Note 13 , Financial Liabilities , for further details related to exchangeable and class B shares. The value of share capital, which relates to the class C shares, is determined based on the opening price of a unit on March 31, 2020, the date of the special distribution. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes [Abstract] | |
INCOME TAXES | INCOME TAXES Income taxes are recognized for the amount of taxes payable by our company and its corporate subsidiaries, and for the impact of deferred tax assets and liabilities related to such subsidiaries. (a) Deferred Income Tax Balances The sources of deferred income tax balances are as follows: As of December 31, US$ MILLIONS 2021 2020 Deferred income tax assets Financial instruments and other $ 17 $ 18 Tax losses carried forward 43 34 $ 60 $ 52 Deferred income tax liabilities Property, plant and equipment $ (1,635) $ (643) Intangible assets (11) (809) $ (1,646) $ (1,452) Net deferred income tax liabilities $ (1,586) $ (1,400) Reflected in the statement of financial position as follows: Deferred tax assets $ 52 $ 43 Deferred tax liabilities (1,638) (1,443) Net deferred tax liabilities $ (1,586) $ (1,400) The deferred tax asset related to losses available for carry forward includes $43 million of tax benefits that have been recognized based on projections of future taxable profits. The sources of deferred income tax balances and movements are as follows: Recognized in US$ MILLIONS Jan. 1, 2021 Net Other Other (1) Acquisitions/Dispositions Dec. 31, 2021 Deferred tax assets related to non-capital losses and capital losses $ 34 $ 9 $ — $ — $ — $ 43 Deferred tax liabilities related to differences in tax and book basis, net (1,434) (180) (121) 66 40 (1,629) Net deferred tax liabilities $ (1,400) $ (171) $ (121) $ 66 $ 40 $ (1,586) Recognized in US$ MILLIONS Jan. 1, 2020 Net Other Other (1) Acquisitions/Dispositions Dec. 31, 2020 Deferred tax assets related to non-capital losses and capital losses $ 31 $ 2 $ — $ 1 $ — $ 34 Deferred tax liabilities related to differences in tax and book basis, net (1,455) (104) (68) 193 — (1,434) Net deferred tax liabilities $ (1,424) $ (102) $ (68) $ 194 $ — $ (1,400) (1) Other items relate to foreign exchange as deferred income taxes are calculated based on the functional currency of each operating entity. (b) Income Tax Recognized in Income or Loss The major components of income tax expense include the following: For the year ended December 31, US$ MILLIONS 2021 2020 2019 Tax expense comprises: Current income tax expense $ 234 $ 167 $ 175 Deferred income tax expense Origination and reversal of temporary differences 59 67 89 Change in tax rates or the imposition of new taxes 96 27 — Deferred tax assets not recognized 16 8 8 Total income tax expense $ 405 $ 269 $ 272 Income tax on income before tax and non-controlling interests reconciles to tax expense as follows: Net income before income tax and non-controlling interests $ 432 $ 37 $ 842 Income tax expense calculated at the domestic rates applicable to profits in the country concerned 179 70 267 Change in tax rates and new legislation 96 27 — International operations subject to different tax rates (2) (3) (3) Taxable income attributable to non-controlling interests (4) (5) (6) Portion of gains subject to different tax rates (37) — 8 Deferred tax assets not recognized 16 8 8 Foreign exchange 2 17 — Non-deductible dividends on exchangeable shares 30 18 — Non-deductible remeasurement adjustments on exchangeable and class B shares 119 136 — Permanent differences and other 6 1 (2) Income tax expense recognized in profit or loss $ 405 $ 269 $ 272 Our company has no temporary differences associated with investments in subsidiaries for which no deferred income taxes have been provided. (c) Income Tax Recognized Directly in Other Comprehensive Income For the year ended December 31, US$ MILLIONS 2021 2020 2019 Deferred tax arising on income and expenses recognized in other comprehensive income Revaluation of property, plant and equipment $ 121 $ 67 $ 59 Cash flow hedges — 1 1 Total income tax recognized directly in other comprehensive income $ 121 $ 68 $ 60 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of analysis of other comprehensive income by item [abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Attributable to Brookfield Infrastructure Partners L.P. US$ MILLIONS Revaluation Foreign Cash Flow Accumulated Balance at December 31, 2019 $ 959 $ (437) $ 1 $ 523 Other comprehensive income 118 (105) 3 16 Balance at December 31, 2020 $ 1,077 $ (542) $ 4 $ 539 Other comprehensive income 10 (15) — (5) Other items (1) (142) — — (142) Balance at December 31, 2021 $ 945 $ (557) $ 4 $ 392 (1) In relation to the disposition of our smart meters business in the U.K., $142 million of accumulated revaluation surplus (net of tax) was reclassified from accumulated other comprehensive income directly to retained earnings and recorded within Other items on the Consolidated Statements of Equity. Refer to Note 4, Disposition of Businesses, for further details. |
CONTRACTUAL COMMITMENTS
CONTRACTUAL COMMITMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Contractual Commitments [Abstract] | |
CONTRACTUAL COMMITMENTS | CONTRACTUAL COMMITMENTSIn the normal course of business, our company will enter into contractual obligations which include commitments relating primarily to contracted project costs for various growth initiatives such as committed expenditures associated with gas and electricity sales contracts at our U.K. regulated distribution operation. As at December 31, 2021, our company had $726 million (2020: $820 million) of commitments outstanding, of which 21% mature in less than one year, 48% between two and five years, and 31% after five years.In addition, pursuant to the Master Service Agreement, on a quarterly basis, the partnership pays a base management fee to certain service providers (the “Service Providers”), which are wholly-owned subsidiaries of Brookfield, equal to 0.3125% per quarter (1.25% annually) of the combined market value of the partnership and our company. Our company reimburses the partnership for our proportionate share of the management fee. The fee attributable to our company is recorded on the Consolidated Statements of Operating Results in general and administrative expenses. The amount attributable to our company is based on weighted average units and shares outstanding after retroactively adjusting for the special distribution. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2021 | |
Related Party [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS In the normal course of operations, our company entered into the transactions below with related parties. The ultimate parent of our company is Brookfield. Other related parties of our company represent Brookfield’s subsidiary and operating entities. Since inception, the partnership has had a management agreement, the Master Services Agreement, with the Service Providers which are wholly-owned subsidiaries of Brookfield. For the periods prior to March 30, 2020, our company’s financial statements include general corporate expenses of the parent company which were not historically allocated to our company’s operations. These expenses relate to management fees payable to Brookfield. These allocated expenses have been included as appropriate in our company’s Consolidated Statements of Operating Results. Key decision makers of our company are employees of Brookfield. However, the financial statements may not include all of the expenses that would have been incurred and may not reflect our company’s combined results of operations, financial position and cash flows had it been a standalone company during the periods presented. It is not practicable to estimate the actual costs that would have been incurred had our company been a standalone company during the periods presented as this would depend on multiple factors, including organizational structure and infrastructure. Subsequent to the special distribution on March 31, 2020, our company is no longer allocated general corporate expenses of the parent company as the functions which they relate to are now provided through the Master Services Agreement. The base management fee related to the services received under the Master Services Agreement has been recorded as part of general and administrative expenses in the consolidated financial statements. Pursuant to the Master Services Agreement, on a quarterly basis, our group pays a base management fee, to the Service Providers equal to 0.3125% per quarter (1.25% annually) of the combined market value of the partnership and our company. Our company reimburses the partnership for our proportionate share of the management fee. For purposes of calculating the base management fee, the market value of the partnership is equal to the aggregate value of all the outstanding units (assuming full conversion of Brookfield’s Redeemable Partnership Units in Holdings LP into units), preferred units and securities of the other Service Recipients (including the exchangeable shares and the exchangeable units of Brookfield Infrastructure Partners Exchange LP and Brookfield Infrastructure Corporation Exchange LP) that are not held by Brookfield Infrastructure, plus all outstanding third-party debt with recourse to a Service Recipient, less all cash held by such entities. The amount attributable to our company is based on weighted average units and shares outstanding after retroactively adjusting for the special distribution. The base management fee attributable to our company was $45 million for the year ended December 31, 2021 (2020: $30 million, 2019: $30 million). Our company’s affiliates provide connection services in the normal course of operations on market terms to affiliates and associates of Brookfield Property Partners L.P. For the year ended December 31, 2021, revenues of less than $1 million were generated (2020: less than $1 million, 2019: $2 million) and $nil expenses were incurred (2020: $nil, 2019: $nil). As discussed in Note 1(b)(iii), Organization and Description of our Company in our consolidated financial statements, our company entered into two credit agreements with Brookfield Infrastructure, one as borrower and one as lender, each providing for a ten-year revolving $1 billion credit facility for purposes of providing our company and Brookfield Infrastructure with access to debt financing on an as-needed basis and to maximize our flexibility and facilitate the movement of cash within our group. We intend to use the liquidity provided by the credit facilities for working capital purposes and to fund growth capital investments and acquisitions. The determination of which of these sources of funding our company will access in any particular situation will be a matter of optimizing needs and opportunities at that time. The credit facilities are available in U.S. or Canadian dollars, and advances will be made by way of LIBOR, base rate, CDOR, or prime rate loans. Both operating facilities bear interest at the benchmark rate plus an applicable spread, in each case subject to adjustment from time to time as the parties may agree. In addition, each credit facility contemplates potential deposit arrangements pursuant to which the lender thereunder would, with the consent of a borrower, deposit funds on a demand basis to such borrower’s account at market interest rate. As at December 31, 2021, $nil (December 31, 2020: $nil) was drawn on the credit facilities under the credit agreements with Brookfield Infrastructure. Prior to the completion of the special distribution, BIPC Holdings Inc., a wholly owned subsidiary of our company, fully and unconditionally guaranteed (i) any unsecured debt securities issued by Brookfield Infrastructure Finance ULC, Brookfield Infrastructure Finance LLC, Brookfield Infrastructure Finance Limited and Brookfield Infrastructure Finance Pty Ltd., which we refer to collectively as the “Co-Issuers”, in each case as to payment of principal, premium (if any) and interest when and as the same will become due and payable under or in respect of the trust indenture dated October 10, 2012 among the Co-Issuers and Computershare Trust Company of Canada under which such securities are issued, (ii) the senior preferred shares of BIP Investment Corporation (“BIPIC”), as to the payment of dividends when due, the payment of amounts due on redemption and the payment of amounts due on the liquidation, dissolution or winding up of BIPIC, (iii) certain of the partnership’s preferred units, as to payment of distributions when due, the payment of amounts due on redemption and the payment of amounts due on the liquidation, dissolution or winding up of the partnership, and (iv) the obligations of Brookfield Infrastructure under its bilateral credit facilities. These arrangements do not have or are not reasonably likely to have a material current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors. Subsequent to the special distribution, BIPC Holdings Inc. guaranteed (i) subordinated debt securities issued by Brookfield Infrastructure Finance ULC or BIP Bermuda Holdings I Limited on a subordinated basis, as to payment of principal, premium (if any) and interest when and as the same will become due and payable under or in respect of the trust indenture under which such securities are issued, and (ii) the obligations of Brookfield Infrastructure Holdings (Canada) Inc. under its commercial paper program. During the year ended December 31, 2021, our company established a demand deposit receivable of $1,114 million from Brookfield Infrastructure as consideration for exchangeable shares issued during the year. As at December 31, 2021, the balance outstanding was $1,093 million following repayments from Brookfield Infrastructure of $15 million in cash and $1 million in the form of units associated with exchange requests from holders of exchangeable shares and the impact of foreign exchange. The deposit accrues interest at 0.2% per annum. During the year ended December 31, 2021, our company settled $887 million of loans payable to subsidiaries of Brookfield Infrastructure, of which $547 million was settled in exchange for the issuance of additional exchangeable shares. Our company and Brookfield Infrastructure agreed to settle the residual loans payable balance of $260 million in exchange for an equivalent demand loan payable to Brookfield Infrastructure, bearing interest at a rate of 0.2% per annum. Our company subsequently repaid $129 million of the amount outstanding. Interest incurred on loans payable to Brookfield Infrastructure during the year ended December 31, 2021 was $32 million (2020: $39 million). As at December 31, 2021, our company had accounts payable of $5 million (2020: $2 million) to subsidiaries of Brookfield Infrastructure and accounts receivable of $20 million (2020: $7 million) from subsidiaries of Brookfield Infrastructure. On July 29, 2020, Brookfield completed a secondary offering of approximately 5 million exchangeable shares, inclusive of the over-allotment option, for net proceeds of approximately C$305 million. From time to time, Brookfield and its related entities may purchase securities offered by our group. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Financial Instruments [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS Our company’s activities expose it to a variety of financial risks, including market risk (i.e. currency risk, interest rate risk, commodity risk and other price risk), credit risk and liquidity risk. Our company selectively uses derivative financial instruments principally to manage these risks. The aggregate notional amount of our company’s derivative positions at December 31, 2021 and 2020 were as follows: As of December 31, US$ MILLIONS Note 2021 2020 Interest rate swaps and other (a) $ 272 $ 447 $ 272 $ 447 The following table presents the change in fair values of our company’s derivative positions during the years ended December 31, 2021 and 2020: US$ MILLIONS Unrealized Gains Unrealized Losses Net Change During 2021 Net Change During 2020 Interest rate swaps and other $ — $ — $ — $ 9 $ — $ — $ — $ 9 (a) Interest Rates At December 31, 2021, our company held interest rate and cross currency interest rate swap contracts having an aggregate notional amount of $272 million (2020: $275 million) and inflation linked swaps having an aggregate notional amount of $nil (2020: $172 million). Other Information Regarding Derivative Financial Instruments The following table presents the notional amounts underlying our company’s derivative instruments by term to maturity as at December 31, 2021 and the comparative notional amounts at December 31, 2020, for both derivatives that are classified as fair value through profit or loss and derivatives that qualify for hedge accounting: 2021 2020 US$ MILLIONS < 1 year 1 to 5 years > 5 years Total Notional Total Notional Fair value through profit or loss Inflation rate swaps and other $ — $ — $ — $ — $ 172 $ — $ — $ — $ — $ 172 Elected for hedge accounting Interest rate swaps and other $ — $ 272 $ — $ 272 $ 275 $ — $ 272 $ — $ 272 $ 275 The following table classifies derivatives elected for hedge accounting during the years ended December 31, 2021 and 2020 as either cash flow hedges or net investment hedges. Changes in the fair value of the effective portion of the hedges are recorded in either other comprehensive income or net income, depending on the hedge classification, whereas changes in the fair value of the ineffective portion of the hedge are recorded in net income: 2021 2020 AS AT AND FOR THE YEARS ENDED (US$ MILLIONS) Notional Effective Ineffective Notional Effective Ineffective Cash flow hedges $ 272 $ — $ — $ 275 $ 5 $ — Our company settles the difference between the contracted fixed and floating rates of its interest rate swaps on a net basis. All interest rate swap contracts exchanging floating rate interest amounts for fixed rate interest amounts are designated as cash flow hedges in order to reduce our company’s cash flow exposure resulting from variable interest rates on borrowings. The interest rate swaps and the interest payments on the borrowings occur simultaneously and the amount accumulated in equity is reclassified to profit or loss over the period that the floating rate interest payments on borrowings affect profit or loss. |
FINANCIAL RISK MANAGEMENT
FINANCIAL RISK MANAGEMENT | 12 Months Ended |
Dec. 31, 2021 | |
Financial Instruments [Abstract] | |
FINANCIAL RISK MANAGEMENT | FINANCIAL RISK MANAGEMENT Our company is exposed to the following risks as a result of holding financial instruments: capital risk; liquidity risk; market risk (i.e. interest rate risk and foreign currency risk); and credit risk. The following is a description of these risks and how they are managed: (a) Liquidity Risk Management Our company manages its capital structure to be able to continue as a going concern while maximizing the return to stakeholders. Our company’s overall capital strategy is consistent with that of the partnership which remains unchanged from 2020. The capital structure of our company consists of debt, offset by cash and cash equivalents, exchangeable and class B shares, loans payable to Brookfield Infrastructure and share capital comprised of issued capital and accumulated gains. US$ MILLIONS 2021 2020 Non-recourse borrowings $ 3,556 $ 3,477 Cash and cash equivalents (469) (192) Net debt 3,087 3,285 Exchangeable and class B shares 4,466 2,221 Loans payable to Brookfield Infrastructure 131 1,143 Total equity (1,424) (572) Total capital and net debt $ 6,260 $ 6,077 Net debt to capitalization ratio 49 % 54 % The Board of Directors, along with senior management of the Service Providers, reviews our company’s capital structure and as part of this review, considers the cost of capital and the risk associated with each class of capital. Our company manages its debt exposure by financing its operations on a non-recourse basis with prudent levels of debt, ensuring a diversity of funding sources as well as laddering its maturity profile to minimize refinance risk. Our company also borrows in the currency where the asset operates, where possible, in order to hedge its currency risk. Our company’s financing plan is to fund its recurring growth capital expenditures with cash flow generated by its operations after maintenance capital expenditure, as well as debt financing that is sized to maintain its credit profile. To fund large scale development projects and acquisitions, our company will evaluate a variety of capital sources including funding from the partnership, proceeds from selling non-core assets, equity and debt financing. Our company will seek to raise additional equity if the company believes it can earn returns on these investments in excess of the cost of the incremental capital. The following tables detail the contractual maturities for our company’s financial liabilities. The tables reflect the undiscounted cash flows of financial liabilities based on the earliest date on which our company can be required to pay. The tables include both interest and principal cash flows: Less than 1-2 years 2-5 years 5+ years Total December 31, 2021 US$ MILLIONS Accounts payable and other liabilities $ 414 $ 2 $ — $ — $ 416 Non-recourse borrowings — 1,276 271 2,016 3,563 Financial liabilities 995 — — — 995 Exchangeable and class B shares 4,466 — — — 4,466 Loans payable to Brookfield Infrastructure 131 — — — 131 Interest Expense: Non-recourse borrowings 98 73 195 395 761 Less than 1-2 years 2-5 years 5+ years Total December 31, 2020 US$ MILLIONS Accounts payable and other liabilities $ 240 $ 1 $ — $ — $ 241 Non-recourse borrowings 12 — 1,601 1,873 3,486 Financial liabilities 23 969 39 — 1,031 Exchangeable and class B shares 2,221 — — — 2,221 Loans payable to Brookfield Infrastructure — — 61 1,082 1,143 Interest Expense: Non-recourse borrowings 84 77 191 424 776 Loans payable to Brookfield Infrastructure 52 52 155 217 476 (b) Market Risk Market risk is defined for these purposes as the risk that the fair value or future cash flows of a financial instrument held by our company will fluctuate because of the change in market prices. Market risk includes the risk of changes in interest rates, foreign currency exchange rates and equity prices. Our company seeks to minimize the risks associated with foreign currency exchange rates and interest rates primarily through the use of derivative financial instruments to hedge these risk exposures. The use of financial derivatives is governed by the group’s Treasury Policy. Our company does not enter into, or trade financial instruments, including derivative financial instruments, for speculative purposes. The Treasury Policy provides written principles on the use of financial derivatives. With respect to its treasury policy, the Service Providers performs the monitoring, review and approval role and report to our board on a regular basis. Financial instruments held by our company that are subject to market risk include other financial assets, borrowings, derivative instruments, such as interest rate and foreign currency contracts. Interest Rate Risk Management Our company’s primary objectives with respect to interest rate risk management are to ensure that: • Our company is not exposed to interest rate movements that could adversely impact its ability to meet financial obligations; • Earnings and distributions are not adversely affected; • Volatility of debt servicing costs is managed within acceptable parameters; and • All borrowing covenants under various borrowing facilities, including interest coverage ratios, are complied with. To achieve these objectives, in general terms, our company’s funding mix comprises both fixed and floating rate debt. Fixed rate debt is achieved either through fixed rate debt funding or through the use of financial derivative instruments. In addition, where possible, interest rate risk is minimized by matching the terms of interest rate swap contracts in regulated businesses to the term of the rate period, thus providing natural hedges. The sensitivity analyses below reflect our company’s exposure to interest rates for both derivative and non-derivative instruments at the reporting date, assuming that a 10 basis point increase or decrease in rates takes place at the beginning of the financial year and is held constant throughout the reporting period. The sensitivity analyses assume a 10 basis point change to reflect the current methodology employed by our company in assessing interest rate risk. Such parallel shift in the yield curve by 10 basis points would have had the following impact, assuming all other variables were held constant: December 31, 2021 2020 2019 US$ MILLIONS 10 bp 10 bp 10 bp 10 bp 10 bp 10 bp Net income (loss) $ 1 $ (1) $ 1 $ (1) $ 1 $ (1) Other comprehensive income — — — — — — Foreign Currency Risk Management Our company has exposure to foreign currency risk in respect of currency transactions, the value of our company’s net investment, cash flows and capital expenditures that are denominated outside of the U.S. Our company’s approach to foreign currency risk management is: • Our company leverages any natural hedges that may exist within its operations; • Our company utilizes local currency debt financing to the extent possible; and • Our company may utilize derivative contracts to the extent that natural hedges are insufficient. The tables below set out our company’s currency exposure at December 31, 2021, 2020 and 2019: 2021 US$ MILLIONS GBP BRL Total Assets: Current assets $ 249 $ 668 $ 917 Non-current assets 4,961 3,115 8,076 $ 5,210 $ 3,783 $ 8,993 Liabilities: Current liabilities $ 316 $ 1,278 $ 1,594 Non-current liabilities 3,285 2,028 5,313 $ 3,601 $ 3,306 $ 6,907 Non-controlling interest 314 389 703 Net investment attributable to Brookfield Infrastructure $ 1,295 $ 88 $ 1,383 2020 US$ MILLIONS GBP BRL Total Assets: Current assets $ 181 $ 405 $ 586 Non-current assets 5,264 3,494 8,758 $ 5,445 $ 3,899 $ 9,344 Liabilities: Current liabilities $ 333 $ 203 $ 536 Non-current liabilities 3,241 2,772 6,013 $ 3,574 $ 2,975 $ 6,549 Non-controlling interest 367 783 1,150 Net investment attributable to Brookfield Infrastructure $ 1,504 $ 141 $ 1,645 2019 US$ MILLIONS GBP BRL Total Assets: Current assets $ 159 $ 435 $ 594 Non-current assets 4,653 4,606 9,259 $ 4,812 $ 5,041 $ 9,853 Liabilities: Current liabilities $ 294 $ 199 $ 493 Non-current liabilities 2,888 3,195 6,083 $ 3,182 $ 3,394 $ 6,576 Non-controlling interest 318 1,305 1,623 Net investment attributable to Brookfield Infrastructure $ 1,312 $ 342 $ 1,654 The following tables detail our company’s sensitivity to a 10% increase and decrease in the U.S. dollar against the relevant foreign currencies, with all other variables held constant as at reporting date. 10% is the sensitivity rate used when reporting foreign currency risk internally. The sensitivity analysis is performed as follows: • Outstanding foreign currency denominated monetary items (excluding foreign exchange derivative contracts) are adjusted at period end for a 10% change in foreign currency rates from the rate at which they are translated; • Foreign currency derivative contracts are measured as the change in fair value of the derivative as a result of a 10% change in the spot currency rate; and • The impact on net income results from performing a sensitivity of a 10% change in foreign exchange rates applied to the profit or loss contribution from foreign operations (after considering the impact of foreign exchange derivative contracts). Impact on Net Income 2021 2020 2019 US$ MILLIONS -10% 10% -10% 10% -10% 10% USD/GBP (6) 6 (5) 5 10 (10) USD/BRL (15) 15 (12) 12 13 (13) Impact on Parent Equity 2021 2020 2019 US$ MILLIONS -10% 10% -10% 10% -10% 10% USD/GBP (130) 130 (150) 150 131 (131) USD/BRL (9) 9 (14) 14 34 (34) (c) Credit Risk Management Credit risk is the risk of loss due to the failure of a borrower or counterparty to fulfill its contractual obligations. From a treasury perspective, counterparty credit risk is managed through the establishment of authorized counterparty credit limits which are designed to ensure that our company only deals with credit worthy counterparties and that counterparty concentration is addressed and the risk of loss is mitigated. Credit limits are sufficiently low to restrict our company from having credit exposures concentrated with a single counterparty but rather encourages spreading such risks among several parties. The limits are set at levels that reflect our company’s scale of activity and allow it to manage its treasury business competitively. Our company does not have any significant credit risk exposure to any single counterparty or any group of counterparties having similar characteristics other than those described in Note 16, Revenues . Based on our review of key counterparties, we do not have any significant changes in credit losses at this time. The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit ratings assigned by international credit rating agencies. Exposure to credit risk is limited to the carrying amount of the assets on the Consolidated Statements of Financial Position. |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended |
Dec. 31, 2021 | |
Cash Flow Statement [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION For the year ended December 31, US$ MILLIONS 2021 2020 2019 Interest paid $ 261 $ 222 $ 161 Income taxes paid $ 165 $ 135 $ 96 Amounts paid and received for interest were reflected as operating cash flows in the Consolidated Statements of Cash Flows. Interest paid is net of debt related hedges. Amounts paid for income taxes were reflected as either operating cash flows or investing cash flows in the Consolidated Statements of Cash Flows depending upon the nature of the underlying transaction. Details of “Changes in non-cash working capital, net” on the Consolidated Statements of Cash Flows are as follows: For the year ended December 31, US$ MILLIONS 2021 2020 2019 Accounts receivable $ (91) $ (71) $ (58) Accounts payable and other 126 27 131 Changes in non-cash working capital, net $ 35 $ (44) $ 73 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS (a) Acquisition of an Australian regulated utility On February 16, 2022, our company acquired an approximate 10% non-controlling interest in AusNet Services Ltd., an Australian regulated utility, for approximately $0.5 billion. |
BASIS OF PRESENTATION AND SIG_2
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Statement of Compliance | Statement of Compliance These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”). These consolidated financial statements were authorized for issuance by the Board of Directors of our company on March 9, 2022. |
Basis of Presentation | Basis of Presentation The consolidated financial statements are prepared on a going concern basis. For the periods prior to March 30, 2020, the financial statements represent a combined carve-out of the assets, liabilities, revenues, expenses, and cash flows of the businesses that were contributed to our company effective March 30, 2020. During this period, all of the assets and liabilities presented were controlled by the partnership. Effective March 30, 2020, the assets and liabilities were transferred to our company at their carrying values. All intercompany balances, transactions, revenues and expenses within our company have been eliminated. Additionally, certain corporate costs have been allocated on the basis of direct usage where identifiable, with the remainder allocated based on management’s best estimate of costs attributable to our company. Management believes the assumptions underlying the historical financial information, including the assumptions regarding allocated expenses, reasonably reflect the utilization of services provided to or the benefit received by our company during the periods presented. However, due to the inherent limitations of carving out the assets, liabilities, operations and cash flows from larger entities, the historical financial information may not necessarily reflect our company’s financial position, operations and cash flow for future periods, nor do they reflect the financial position, results of operations and cash flow that would have been realized had our company been a stand-alone entity during the periods presented. Subsequent to March 30, 2020, our company is no longer allocated general corporate expenses of the parent company as the functions which they related are now provided through the amended and restated master services agreement dated as of March 13, 2015, among the Service Recipients (as defined therein), Brookfield, the Service Providers (as defined therein) and others, as amended (the “Master Services Agreement”). The base management fee related to the services received under the Master Services Agreement has been recorded as part of general and administrative expenses in the consolidated financial statements. |
Continuity of Interests | Continuity of Interests As described above, our company was established on August 30, 2019 by the partnership. On March 30, 2020, the partnership contributed the businesses to our company in exchange for loans receivable, exchangeable shares, class B shares and class C shares. On March 31, 2020, the partnership completed the special distribution of the exchangeable shares to holders of units and continues to hold all of the class B and class C shares of our company. The partnership directly and indirectly controlled our company prior to the special distribution and continues to control our company subsequent to the special distribution through its interests in our company. As a result of this continuing common control, there is insufficient substance to justify a change in the measurement of our company. In accordance with our company’s and the partnership’s accounting policy, our company has reflected the businesses in its financial position and financial performance using the partnership’s carrying values prior to the contribution of the businesses to our company. To reflect this continuity of interests, these consolidated financial statements provide comparative information of our company for the periods prior to March 30, 2020, as previously reported by the partnership. The economic and accounting impact of contractual relationships created or modified in conjunction with the contribution of the businesses to our company have been reflected prospectively from the date of the contribution and have not been reflected in the results of operations or financial position of our company prior to March 30, 2020, as such items were in fact not created or modified prior thereto. Accordingly, the financial information for the periods prior to March 30, 2020 is presented based on the historical financial information for our company as previously reported by the partnership. For the period after March 30, 2020, the results are based on the actual results of our company, including the impact of contractual relationships created or modified in association with the contribution of the businesses to our company. As the partnership holds all of the class C shares of our company, which is the only class of shares presented as equity, net income and equity attributable to common equity have been allocated to the partnership prior to and after March 30, 2020. Prior to March 30, 2020, intercompany transactions between the partnership and our company have been included in these financial statements and are considered to be forgiven at the time the transaction is recorded and reflected as “Distributions to, net of contributions from, Brookfield Infrastructure Partners L.P.”. “Distributions to, net of contributions from, Brookfield Infrastructure Partners L.P.” as shown in the consolidated statements of changes in equity represents the partnership’s historical investment in our company, accumulated net income and the net effect of the transactions and allocations from the parent company. The total net effect of transactions with the parent company is reflected in the consolidated statements of cash flows as a financing activity and in the consolidated statements of financial position as equity attributable to Brookfield Infrastructure Partners L.P. |
Foreign Currency Translation | Foreign Currency Translation The U.S. dollar is the functional and presentation currency of our company. Each of our company’s affiliates determines its own functional currency and items included in the financial statements of each affiliate are measured using that functional currency. Assets and liabilities of foreign operations having a functional currency other than the U.S. dollar are translated at the rate of exchange prevailing at the reporting date and revenues and expenses at average rates during the period. Gains or losses on translation are included as a component of other comprehensive income. On disposal of a foreign operation resulting in the loss of control, the component of other comprehensive income due to accumulated foreign currency translation relating to that foreign operation is reclassified to net income. On partial disposal of a foreign operation in which control is retained, the proportionate share of the component of other comprehensive income or loss relating to that foreign operation is reclassified to non-controlling interests in that foreign operation. Foreign currency denominated monetary assets and liabilities are translated using the rate of exchange prevailing at the reporting date and non-monetary assets and liabilities measured at fair value are translated at the rate of exchange prevailing at the date when the fair value was determined. Revenues and expenses are measured at average rates during the period. Gains or losses on translation of these items are included in net income. Gains and losses on transactions which hedge these items are also included in net income or loss. Foreign currency denominated non-monetary assets and liabilities, measured at historic cost, are translated at the rate of exchange at the transaction date. |
Business Combinations | Business Combinations Business acquisitions in which control is acquired are accounted for using the acquisition method, other than those between and among entities under common control. The consideration of each acquisition is measured at the aggregate of the fair values at the acquisition date of assets transferred by the acquirer, liabilities incurred or assumed, and equity instruments issued by our company in exchange for control of the acquiree. Acquisition related costs are recognized in the Statements of Operating Results as incurred and included in other expenses. Where applicable, the consideration for the acquisition includes any asset or liability resulting from a contingent consideration arrangement, measured at its acquisition-date fair value. Subsequent changes in fair values are adjusted against the cost of the acquisition where they qualify as measurement period adjustments. All other subsequent changes in the fair value of contingent consideration classified as liabilities will be recognized in the Statements of Operating Results, whereas changes in the fair values of contingent consideration classified within share capital are not subsequently re-measured. Where a business combination is achieved in stages, our company’s previously held interests in the acquired entity are remeasured to fair value at the acquisition date, that is, the date our company attains control and the resulting gain or loss, if any, is recognized in the Statements of Operating Results. Amounts arising from interests in the acquiree prior to the acquisition date that have previously been recognized in other comprehensive income are reclassified to the Statements of Operating Results, where such treatment would be appropriate if that interest were disposed of. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, our company reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period, or additional assets or liabilities are recognized, to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the amounts recognized as of that date. The measurement period is the period from the date of acquisition to the date our company obtains complete information about facts and circumstances that existed as of the acquisition date. The measurement period is subject to a maximum of one year subsequent to the acquisition date. If, after reassessment, our company’s interest in the fair value of the acquiree’s identifiable net assets exceeds the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree and the fair value of the acquirer’s previously held equity interest in the acquiree if any, the excess is recognized immediately in profit or loss as a bargain purchase gain. Contingent liabilities acquired in a business combination are initially measured at fair value at the date of acquisition. At the end of subsequent reporting periods, such contingent liabilities are measured at the higher of the amount that would be recognized in accordance with IAS 37, Provisions, Contingent Liabilities and Contingent Assets and the amount initially recognized less the cumulative amount of income recognized in accordance with IFRS 15, Revenue from Contracts with Customers |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include short-term highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. |
Accounts Receivable | Accounts Receivable Trade receivables are recognized initially at their transaction price and subsequently measured at amortized cost using the effective interest method, less any loss allowance for expected credit losses. |
Property, Plant and Equipment | Property, Plant and Equipment Our company uses the revaluation method of accounting for all classes of property, plant and equipment. Property, plant and equipment is initially measured at cost and subsequently carried at its revalued amount, being the fair value at the date of the revaluation less any subsequent accumulated depreciation and any accumulated impairment losses. Revaluations are made on at least an annual basis, and on a sufficient basis to ensure that the carrying amount does not differ significantly from fair value. Where the carrying amount of an asset is increased as a result of a revaluation, the increase is recognized in other comprehensive income or loss and accumulated in equity within the revaluation surplus reserve, unless the increase reverses a previously recognized impairment recorded through net income, in which case that portion of the increase is recognized in net income. Where the carrying amount of an asset is decreased, the decrease is recognized in other comprehensive income to the extent of any balance existing in revaluation surplus in respect of the asset, with the remainder of the decrease recognized in net income. Revaluation gains are included in other comprehensive income but are not subsequently recycled into profit or loss. An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. The gain or loss arising on disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in the Statements of Operating Results. However, any balance accumulated in revaluation surplus is subsequently recorded in retained earnings when an asset is derecognized and not transferred to profit or loss. Depreciation of an asset commences when it is available for use. Property, plant and equipment are depreciated on a straight line or declining-balance basis over the estimated useful lives of each component of the assets as follows: Buildings Up to 50 years Machinery and equipment Up to 5 years Network systems Up to 60 years |
Asset Impairment | Asset Impairment At each reporting date, our company assesses whether for assets, other than those measured at fair value with changes in values recorded in profit or loss, there is any indication that such assets are impaired. This assessment includes a review of internal and external factors which includes, but is not limited to, changes in the technological, political, economic or legal environment in which the entity operates in, structural changes in the industry, changes in the level of demand, physical damage and obsolescence due to technological changes. An impairment is recognized if the recoverable amount, determined as the higher of the estimated fair value less costs of disposal or the discounted future cash flows generated from use and eventual disposal from an asset or cash generating unit is less than its carrying value. The projections of future cash flows take into account the relevant operating plans and management’s best estimate of the most probable set of conditions anticipated to prevail. Where an impairment loss subsequently reverses, the carrying amount of the asset or cash generating unit is increased to the lesser of the revised estimate of recoverable amount and the carrying amount that would have been recorded had no impairment loss been recognized previously. |
Intangible Assets | Intangible Assets Intangible assets acquired in a business combination and recognized separately from goodwill are initially recognized at their fair value at the acquisition date. Our company’s intangible assets are comprised primarily of service concession arrangements and customer order backlogs. Subsequent to initial recognition, intangible assets acquired in a business combination are reported at cost less accumulated amortization unless indefinite-lived and accumulated impairment losses, on the same basis as intangible assets acquired separately. Public service concessions that provide our company the right to charge users for a service in which the service and fee is regulated by the grantor are accounted for as an intangible asset under IFRIC 12, Service Concession Arrangements . Concession arrangements were acquired as part of the acquisition of the Brazilian regulated gas transmission operation and were initially recognized at their fair values. The intangible assets at the Brazilian regulated gas transmission operation relate to pipeline concession contracts, amortized on a straight-line basis over the estimated useful life of the underlying infrastructure with approximately 31 years remaining, on average. |
Goodwill | Goodwill Goodwill represents the excess of the price paid for the acquisition of an entity over the fair value of the net tangible and intangible assets and liabilities acquired. Goodwill is allocated to the cash generating unit or units to which it relates. Our company identifies cash generating units as identifiable groups of assets that are largely independent of the cash inflows from other assets or groups of assets. Goodwill is evaluated for impairment annually or more often if events or circumstances indicate there may be impairment. Impairment is determined for goodwill by assessing if the carrying value of a cash generating unit or group of cash generating units, including the allocated goodwill, exceeds its recoverable amount determined as the greater of the estimated fair value less costs of disposal or the value in use. Impairment losses recognized in respect of a cash generating unit are first allocated to the carrying value of goodwill and any excess is allocated to the carrying amount of assets in the cash generating unit. Any goodwill impairment is recognized in period in which the impairment is identified. Impairment losses on goodwill are not subsequently reversed. |
Revenue Recognition | Revenue Recognition Our company recognizes revenue when it transfers control of a product or service to a customer. Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. Our company recognizes revenue when the specific criteria set out below have been met. Cash received by our company from customers is recorded as deferred revenue until the revenue recognition criteria set out below are met. Revenue from utilities infrastructure is derived from the transmission of natural gas and the distribution of energy. Distribution and transmission revenue each contain a single performance obligation that is recognized over time. The connection revenue relating to our company’s regulated distribution operation contains a distinct performance obligation that is recognized over the period that the connection is constructed, based on an input method of progress recognition on the basis that this methodology is most reflective of the underlying transfer of control. The payment terms for all of our revenue streams require payment upon completion, except for connections income whereby payment is typically collected up-front prior to the completion of any services. |
Financial Instruments and Hedge Accounting | Financial Instruments and Hedge Accounting a) Financial Instrument Classification Our company classifies cash and cash equivalents and accounts receivable and other as amortized cost. Derivative assets are classified as fair value through profit or loss (“FVTPL”), except for derivatives in certain hedging relationships. Other financial assets are classified as either amortized cost or fair value through other comprehensive income (“FVTOCI”). Financial assets classified as FVTPL or FVTOCI are subsequently measured at fair value at each reporting date. For financial assets classified as FVTPL, the change in fair value is recorded through profit or loss. For financial assets classified as FVTOCI, the change in fair value is recorded in other comprehensive income. The cumulative gains or losses related to FVTOCI equity instruments are not reclassified to profit or loss on disposal, whereas the cumulative gains or losses on all other FVTOCI assets are reclassified to profit or loss on disposal. For financial instruments at amortized cost or debt instruments at FVTOCI, our company assesses if there have been significant increases in credit risk since initial recognition to determine whether lifetime or 12-month expected credit losses should be recognized. Any related loss allowances are recorded through profit or loss. Non-recourse borrowings and accounts payable and other, are classified as amortized cost, except for derivatives embedded in related financial instruments. Embedded derivatives and any other derivative liabilities are classified as FVTPL and are subsequently measured at fair value, except for derivatives in certain hedging relationships. Other financial liabilities are classified as either FVTPL or amortized cost. b) Hedge Accounting Our company selectively utilizes derivative financial instruments primarily to manage financial risks, including interest rate and foreign exchange risks. Derivative financial instruments are recorded at fair value. Hedge accounting is applied when the derivative is designated as a hedge of a specific exposure and that the hedging relationship meets all of the hedge effectiveness requirements. Hedge accounting is discontinued prospectively when the derivative no longer qualifies as a hedge or the hedging relationship is terminated. Once discontinued, the cumulative change in fair value of a derivative that was previously recorded in other comprehensive income by the application of hedge accounting is recognized in profit or loss over the remaining term of the original hedging relationship as amounts related to the hedged item are recognized in profit or loss. The assets or liabilities relating to unrealized mark-to-market gains and losses on derivative financial instruments are recorded in financial assets and financial liabilities, respectively. |
Income Taxes | Income Taxes Income tax expense represents the sum of the tax accrued in the period and deferred income tax. a) Current income tax Current income tax assets and liabilities are measured at the amount expected to be paid to tax authorities, net of recoveries based on the tax rates and laws enacted or substantively enacted at the reporting date. Current income tax relating to items recognized directly in share capital are also recognized directly in share capital and other comprehensive income. b) Deferred income tax Deferred income tax liabilities are provided for using the liability method on temporary differences between the tax bases used in the computation of taxable income and carrying amounts of assets and liabilities in the consolidated financial statements. Deferred income tax assets are recognized for all deductible temporary differences, carry forward of unused tax credits and unused tax losses, to the extent that it is probable that deductions, tax credits and tax losses can be utilized. Such deferred income tax assets and liabilities are not recognized if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the taxable income nor the accounting income, other than in a business combination. The carrying amount of deferred income tax assets are reviewed at each reporting date and reduced to the extent it is no longer probable that the income tax asset will be recovered. Deferred income tax liabilities are recognized for taxable temporary differences associated with investments in affiliates, except where our company is able to control the reversal of the temporary difference and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred income tax assets arising from deductible temporary differences associated with such investments and interests are only recognized to the extent that it is probable that there will be sufficient taxable income against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred income tax liabilities and assets reflect the tax consequences that would follow from the manner in which our company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. |
Assets Held for Sale | Assets Held for Sale Non-current assets and disposal groups are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the non-current asset or disposal group is available for immediate sale in its present condition. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification subject to limited exceptions. When our company is committed to a sale plan involving loss of control of a subsidiary, all of the assets and liabilities of that subsidiary are classified as held for sale when the criteria described above are met, regardless of whether our company will retain a non-controlling interest in its former subsidiary after the sale. Non-current assets and disposal groups classified as held for sale are measured at the lower of their previous carrying amount and fair value less costs to sell. Non-current assets classified as held for sale and the assets of a disposal group are presented separately from other assets in the Statements of Financial Position and are classified as current. The liabilities of a disposal group classified as held for sale are presented separately from other liabilities in the Statements of Financial Position. |
Provisions | Provisions Provisions are recognized when our company has a present obligation, either legal or constructive, as a result of a past event, it is probable that our company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the obligation, its carrying amount is the present value of those cash flows. |
Earnings per Share | Earnings per Share Our company‘s basic and diluted earnings per share have not been presented in the consolidated financial statements. As outlined in Note 13, Financial Liabilities , and Note 18, Equity , exchangeable and class B shares are classified as financial liabilities, while class C shares are classified as financial liabilities, but presented as equity instruments given the narrow scope presentation exceptions existing in IAS 32. As each share classification represents a financial liability, they do not constitute ordinary shares. Refer to the aforementioned notes for further details. |
Operating Segments | Operating Segments IFRS 8, Operating Segments |
Significant Accounting Judgments and Key Sources of Estimation Uncertainty | Significant Accounting Judgments and Key Sources of Estimation Uncertainty The preparation of financial statements requires management to make significant judgments, estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses that are not readily apparent from other sources, during the reporting period. These estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. Significant judgments and estimates made by management and utilized in the normal course of preparing our company’s consolidated financial statements are outlined below. a) Common control transactions IFRS 3 (2008), Business Combinations does not include specific measurement guidance for transfers of businesses or subsidiaries between entities under common control. Accordingly, our company has developed a policy to account for such transactions taking into consideration other guidance in the IFRS framework and pronouncements of other standard-setting bodies. Our company’s policy is to record assets and liabilities recognized as a result of transactions between entities under common control at the carrying value on the transferor’s financial statements, and to have the consolidated statements of financial position, operating results, changes in equity and cash flows reflect the results of combining entities for all periods presented for which the entities were under the transferor’s common control, irrespective of when the combination takes place. b) Financial instruments Our company’s accounting policies relating to derivative financial instruments are described in Note 3(m), Financial Instruments and Hedge Accounting . The significant judgments inherent in these policies relate to applying the criteria to the assessment of the effectiveness of hedging relationships. Estimates and assumptions used in determining the fair value of financial instruments are equity and commodity prices; future interest rates; the credit worthiness of our company relative to its counterparties; the credit risk of our company and counterparty; estimated future cash flows; and discount rates. c) Revaluation of property, plant and equipment Property, plant and equipment is revalued on a regular basis. The significant estimates and assumptions underlying the valuation of property, plant and equipment are set out in Note 9, Property Plant and Equipment. d) Fair values in business combinations Our company accounts for business combinations using the acquisition method of accounting. This method requires the application of fair values for both the consideration given and the assets and liabilities acquired. The calculation of fair values is often predicated on estimates and judgments including future cash flows discounted at an appropriate rate to reflect the risk inherent in the acquired assets and liabilities. The determination of the fair values may remain provisional for up to 12 months from the date of acquisition due to the time required to obtain independent valuations of individual assets and to complete assessments of provisions. When the accounting for a business combination has not been completed as at the reporting date, this is disclosed in the financial statements, including observations on the estimates and judgments made as of the reporting date. e) Impairment of goodwill, intangibles with indefinite lives The impairment assessment of goodwill and intangible assets with indefinite lives requires estimation of the value-in-use or fair value less costs of disposal of the cash-generating units or groups of cash generating units to which goodwill or the intangible asset has been allocated. Our company uses the following significant assumptions and estimates: the circumstances that gave rise to the goodwill, timing and amount of future cash flows expected from the cash-generating units; discount rates; terminal capitalization rates; terminal valuation dates and useful lives. Other estimates utilized in the preparation of our company’s financial statements are: depreciation and amortization rates and useful lives; recoverable amount of goodwill and intangible assets; ability to utilize tax losses and other tax measurements. Other judgments utilized in the preparation of our company’s financial statements include the methodologies for calculating amortization, determination of our operating segment and determination of control. |
SUBSIDIARIES (Tables)
SUBSIDIARIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Interests In Other Entities [Abstract] | |
Disclosure of interests in subsidiaries | The following table presents details of non-wholly owned subsidiaries of our company as of December 31 for the years indicated: Country of Effective Ownership Interest (%) Voting Interest (%) Defined Name Name of entity 2021 2020 2019 2021 2020 2019 U.K. regulated distribution operation BUUK Infrastructure No 1 Limited U.K. 80 80 80 80 80 80 Brazilian regulated gas transmission operation (1) Nova Transportadora do Sudeste S.A. (1) Brazil 31 28 28 92 90 90 |
BASIS OF PRESENTATION AND SIG_3
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Disclosure of estimated useful lives of property, plant and equipment | Property, plant and equipment are depreciated on a straight line or declining-balance basis over the estimated useful lives of each component of the assets as follows: Buildings Up to 50 years Machinery and equipment Up to 5 years Network systems Up to 60 years |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Measurement [Abstract] | |
Disclosure of financial assets | The following table provides the allocation of financial instruments and their associated financial instrument classifications as at December 31, 2021: US$ MILLIONS Financial Instrument Classification MEASUREMENT BASIS Fair value through profit or loss Amortized Cost Total Financial assets Cash and cash equivalents $ — $ 469 $ 469 Accounts receivable and other (current and non-current) — 402 402 Financial assets (1) 30 — 30 Due from Brookfield Infrastructure — 1,093 1,093 Total $ 30 $ 1,964 $ 1,994 Financial liabilities Accounts payable and other (current and non-current) $ — $ 416 $ 416 Non-recourse borrowings — 3,556 3,556 Exchangeable and class B shares (2) — 4,466 4,466 Financial liabilities (1) — 995 995 Loans payable to Brookfield Infrastructure — 131 131 Total $ — $ 9,564 $ 9,564 (1) Derivative instruments which are elected for hedge accounting totaling $30 million are included in financial assets and $nil are included in financial liabilities. (2) Class C shares are also classified as financial liabilities due to their cash redemption feature. As discussed in Note 1(b)(ii), Organization and Description of our Company, the class C shares meet certain qualifying criteria and are presented as equity. See Note 18, Equity. The following table provides the allocation of financial instruments and their associated financial instrument classifications as at December 31, 2020: US$ MILLIONS Financial Instrument Classification MEASUREMENT BASIS Fair value through profit or loss Amortized Cost Total Financial assets Cash and cash equivalents $ — $ 192 $ 192 Accounts receivable and other (current and non-current) — 427 427 Financial assets (1) 27 — 27 Total $ 27 $ 619 $ 646 Financial liabilities Accounts payable and other (current and non-current) $ — $ 334 $ 334 Non-recourse borrowings (current and non-current) — 3,477 3,477 Exchangeable and class B shares (2) — 2,221 2,221 Financial liabilities (current and non-current) (1) 69 962 1,031 Loans payable to Brookfield Infrastructure — 1,143 1,143 Total $ 69 $ 8,137 $ 8,206 (1) Derivative instruments which are elected for hedge accounting totaling $27 million are included in financial assets and $nil are included in financial liabilities. (2) Class C shares are also classified as financial liabilities due to their cash redemption feature. As discussed in Note 1(b)(ii), Organization and Description of our Company, the class C shares meet certain qualifying criteria and are presented as equity. See Note 18, Equity. |
Disclosure of financial liabilities | The following table provides the allocation of financial instruments and their associated financial instrument classifications as at December 31, 2021: US$ MILLIONS Financial Instrument Classification MEASUREMENT BASIS Fair value through profit or loss Amortized Cost Total Financial assets Cash and cash equivalents $ — $ 469 $ 469 Accounts receivable and other (current and non-current) — 402 402 Financial assets (1) 30 — 30 Due from Brookfield Infrastructure — 1,093 1,093 Total $ 30 $ 1,964 $ 1,994 Financial liabilities Accounts payable and other (current and non-current) $ — $ 416 $ 416 Non-recourse borrowings — 3,556 3,556 Exchangeable and class B shares (2) — 4,466 4,466 Financial liabilities (1) — 995 995 Loans payable to Brookfield Infrastructure — 131 131 Total $ — $ 9,564 $ 9,564 (1) Derivative instruments which are elected for hedge accounting totaling $30 million are included in financial assets and $nil are included in financial liabilities. (2) Class C shares are also classified as financial liabilities due to their cash redemption feature. As discussed in Note 1(b)(ii), Organization and Description of our Company, the class C shares meet certain qualifying criteria and are presented as equity. See Note 18, Equity. The following table provides the allocation of financial instruments and their associated financial instrument classifications as at December 31, 2020: US$ MILLIONS Financial Instrument Classification MEASUREMENT BASIS Fair value through profit or loss Amortized Cost Total Financial assets Cash and cash equivalents $ — $ 192 $ 192 Accounts receivable and other (current and non-current) — 427 427 Financial assets (1) 27 — 27 Total $ 27 $ 619 $ 646 Financial liabilities Accounts payable and other (current and non-current) $ — $ 334 $ 334 Non-recourse borrowings (current and non-current) — 3,477 3,477 Exchangeable and class B shares (2) — 2,221 2,221 Financial liabilities (current and non-current) (1) 69 962 1,031 Loans payable to Brookfield Infrastructure — 1,143 1,143 Total $ 69 $ 8,137 $ 8,206 (1) Derivative instruments which are elected for hedge accounting totaling $27 million are included in financial assets and $nil are included in financial liabilities. (2) Class C shares are also classified as financial liabilities due to their cash redemption feature. As discussed in Note 1(b)(ii), Organization and Description of our Company, the class C shares meet certain qualifying criteria and are presented as equity. See Note 18, Equity. |
Carrying and fair values of financial assets | The following table provides the carrying values and fair values of financial instruments as at December 31, 2021 and December 31, 2020: Dec. 31, 2021 Dec. 31, 2020 US$ MILLIONS Carrying Value Fair Value Carrying Value Fair Value Financial assets Cash and cash equivalents $ 469 $ 469 $ 192 $ 192 Accounts receivable and other 402 402 427 427 Financial assets (current and non-current) 30 30 27 27 Due from Brookfield Infrastructure 1,093 1,093 — — Total $ 1,994 $ 1,994 $ 646 $ 646 Dec. 31, 2021 Dec. 31, 2020 US$ MILLIONS Carrying Value Fair Value Carrying Value Fair Value Financial liabilities Accounts payable and other (current and non-current) $ 416 $ 416 $ 334 $ 334 Non-recourse borrowings (current and non-current) (1) 3,556 3,627 3,477 3,723 Exchangeable and class B shares (2) 4,466 4,466 2,221 2,221 Financial liabilities (current and non-current) 995 995 1,031 1,031 Loans payable to Brookfield Infrastructure 131 131 1,143 1,143 Total $ 9,564 $ 9,635 $ 8,206 $ 8,452 (1) Non-recourse borrowings are classified under level 2 of the fair value hierarchy. For level 2 fair values, future cash flows are estimated based on observable forward interest rates at the end of the reporting period. (2) Class C shares are also classified as financial liabilities due to their cash redemption feature. As discussed in Note 1(b)(ii), Organization and Description of our Company, the class C shares meet certain qualifying criteria and are presented as equity. For the purpose of the disclosure above, the class C shares have a fair value of $85 million as at December 31, 2021. US$ MILLIONS Fair value hierarchy Dec. 31, 2021 Dec. 31, 2020 Interest rate swaps & other Level 2 (1) Financial assets $ 30 $ 27 Financial liabilities — 69 (1) Valuation technique: Discounted cash flow. Future cash flows are estimated based on forward exchange rates (from observable forward exchange rates at the end of the reporting period) and contract forward rates, discounted at a rate that reflects our credit risk and the credit risk of various counterparties. |
Carrying and fair values of financial liabilities | The following table provides the carrying values and fair values of financial instruments as at December 31, 2021 and December 31, 2020: Dec. 31, 2021 Dec. 31, 2020 US$ MILLIONS Carrying Value Fair Value Carrying Value Fair Value Financial assets Cash and cash equivalents $ 469 $ 469 $ 192 $ 192 Accounts receivable and other 402 402 427 427 Financial assets (current and non-current) 30 30 27 27 Due from Brookfield Infrastructure 1,093 1,093 — — Total $ 1,994 $ 1,994 $ 646 $ 646 Dec. 31, 2021 Dec. 31, 2020 US$ MILLIONS Carrying Value Fair Value Carrying Value Fair Value Financial liabilities Accounts payable and other (current and non-current) $ 416 $ 416 $ 334 $ 334 Non-recourse borrowings (current and non-current) (1) 3,556 3,627 3,477 3,723 Exchangeable and class B shares (2) 4,466 4,466 2,221 2,221 Financial liabilities (current and non-current) 995 995 1,031 1,031 Loans payable to Brookfield Infrastructure 131 131 1,143 1,143 Total $ 9,564 $ 9,635 $ 8,206 $ 8,452 (1) Non-recourse borrowings are classified under level 2 of the fair value hierarchy. For level 2 fair values, future cash flows are estimated based on observable forward interest rates at the end of the reporting period. (2) Class C shares are also classified as financial liabilities due to their cash redemption feature. As discussed in Note 1(b)(ii), Organization and Description of our Company, the class C shares meet certain qualifying criteria and are presented as equity. For the purpose of the disclosure above, the class C shares have a fair value of $85 million as at December 31, 2021. US$ MILLIONS Fair value hierarchy Dec. 31, 2021 Dec. 31, 2020 Interest rate swaps & other Level 2 (1) Financial assets $ 30 $ 27 Financial liabilities — 69 (1) Valuation technique: Discounted cash flow. Future cash flows are estimated based on forward exchange rates (from observable forward exchange rates at the end of the reporting period) and contract forward rates, discounted at a rate that reflects our credit risk and the credit risk of various counterparties. |
CASH AND CASH EQUIVALENTS (Tabl
CASH AND CASH EQUIVALENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Cash and cash equivalents [abstract] | |
Disclosure of cash and cash equivalents | As of December 31, US$ MILLIONS 2021 2020 Cash $ 43 $ 8 Cash equivalents (1) 426 184 Total cash and cash equivalents $ 469 $ 192 (1) Short-term, highly liquid investments with maturities of less than 90 days at acquisition that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. |
ACCOUNTS RECEIVABLE AND OTHER (
ACCOUNTS RECEIVABLE AND OTHER (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Disclosure of accounts receivable and other | As of December 31, US$ MILLIONS 2021 2020 Current: Accounts receivable (1) $ 402 $ 345 Prepayments & other assets 46 49 Total current $ 448 $ 394 Non-current: Other assets $ 15 $ 101 Total non-current $ 15 $ 101 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, plant and equipment [abstract] | |
Disclosure of detailed information about property, plant and equipment | US$ MILLIONS Gross carrying amount Accumulated depreciation Accumulated fair value adjustments Total Balance at January 1, 2020 $ 3,696 $ (567) $ 1,368 $ 4,497 Additions, net of disposals 358 6 — 364 Non-cash additions 6 (3) — 3 Depreciation expense — (131) — (131) Fair value adjustments — — 215 215 Net foreign currency exchange differences 137 (24) 50 163 Balance at December 31, 2020 $ 4,197 $ (719) $ 1,633 $ 5,111 Additions, net of disposals 367 10 — 377 Assets held by subsidiaries disposed during the period (1) (599) 163 (217) (653) Non-cash disposals (1) (3) — (4) Depreciation expense — (128) — (128) Fair value adjustments — — 134 134 Net foreign currency exchange differences (29) 4 (9) (34) Balance at December 31, 2021 $ 3,935 $ (673) $ 1,541 $ 4,803 (1) See Note 4, Disposition of Businesses, for additional information. The following table summarizes the valuation techniques and significant inputs for our company’s property, plant and equipment assets. Dec. 31, 2021 Dec. 31, 2020 Valuation Discount Terminal Investment Valuation Discount Terminal Investment Discounted cash flow model 7% 20x 10 yrs Discounted cash flow model 7% 23x 10 yrs |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Intangible Assets [Abstract] | |
Disclosure of reconciliation of changes in intangible assets and goodwill | As of US$ MILLIONS Dec. 31, 2021 Dec. 31, 2020 Cost $ 3,332 $ 3,527 Accumulated amortization (645) (579) Total $ 2,687 $ 2,948 The following table presents the change in the cost balance of intangible assets: For the year ended US$ MILLIONS Dec. 31, 2021 Dec. 31, 2020 Cost at beginning of the year $ 3,527 $ 4,479 Additions, net of disposals 38 35 Non cash additions 5 — Foreign currency translation (238) (987) Cost at end of year $ 3,332 $ 3,527 The following table presents the accumulated amortization for our company’s intangible assets: For the year ended US$ MILLIONS Dec. 31, 2021 Dec. 31, 2020 Accumulated amortization at beginning of year $ (579) $ (543) Amortization (108) (152) Foreign currency translation 42 116 Accumulated amortization at end of year $ (645) $ (579) |
Disclosure of detailed information about intangible assets | Intangible assets are allocated to the following cash generating units: As of US$ MILLIONS Dec. 31, 2021 Dec. 31, 2020 Brazilian regulated gas transmission operation $ 2,645 $ 2,903 U.K. regulated distribution operation 42 45 Total $ 2,687 $ 2,948 Goodwill is allocated to the following cash generating units or group of cash generating units: As of US$ MILLIONS Dec. 31, 2021 Dec. 31, 2020 U.K. regulated distribution operation $ 33 $ 38 Brazilian regulated gas transmission operation 456 490 Total $ 489 $ 528 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Intangible Assets [Abstract] | |
Disclosure of reconciliation of changes in intangible assets and goodwill | The following table presents the carrying amount for our company’s goodwill: As of US$ MILLIONS Dec. 31, 2021 Dec. 31, 2020 Balance at beginning of the year $ 528 $ 667 Foreign currency translation and other (39) (139) Balance at end of the year $ 489 $ 528 |
Disclosure of detailed information about intangible assets | Intangible assets are allocated to the following cash generating units: As of US$ MILLIONS Dec. 31, 2021 Dec. 31, 2020 Brazilian regulated gas transmission operation $ 2,645 $ 2,903 U.K. regulated distribution operation 42 45 Total $ 2,687 $ 2,948 Goodwill is allocated to the following cash generating units or group of cash generating units: As of US$ MILLIONS Dec. 31, 2021 Dec. 31, 2020 U.K. regulated distribution operation $ 33 $ 38 Brazilian regulated gas transmission operation 456 490 Total $ 489 $ 528 |
ACCOUNTS PAYABLE AND OTHER (Tab
ACCOUNTS PAYABLE AND OTHER (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Disclosure of accounts payable and other | As of US$ MILLIONS Dec. 31, 2021 Dec. 31, 2020 Current: Accounts payable $ 39 $ 84 Accrued & other liabilities 413 265 Deferred revenue (1) 153 156 Total current $ 605 $ 505 Non-current: Deferred revenue (1) $ 89 $ 76 Provisions & other liabilities 30 20 Total non-current $ 119 $ 96 (1) Deferred revenue relates primarily to cash contributions from third parties to build future natural gas and electricity connections at our company’s U.K. regulated distribution operation. The deferred revenue is recorded on receipt of cash payments and recognized as revenue as services are rendered over the life of the connections arrangement. Of the deferred revenue outstanding at December 31, 2021, 63% is estimated to be realized during 2022 and 37% during 2023. |
FINANCIAL LIABILTIES (Tables)
FINANCIAL LIABILTIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Financial Instruments [Abstract] | |
Disclosure of financial liabilities | As of US$ MILLIONS Dec. 31, 2021 Dec. 31, 2020 Current: Inflation swaps $ — $ 23 Deferred consideration (a) 995 — Total current financial liabilities $ 995 $ 23 Non-current: Inflation swaps $ — $ 46 Deferred consideration (a) — 962 Total non-current financial liabilities $ — $ 1,008 Exchangeable shares outstanding Class B shares outstanding Exchangeable and class B shares Balance at January 1, 2020 — — $ — Share issuance (1) 46,349,323 1 1,765 Shares exchanged to units (1,388,874) — (55) Remeasurement of liability — — 511 Balance at December 31, 2020 44,960,449 1 $ 2,221 Share issuance (1) 28,130,103 — 1,776 Share issuance - BIPC Exchangeable LP Unit exchanges 371,327 — 23 Shares exchanged to units (24,366) — (1) Remeasurement of liability — — 447 Balance at December 31, 2021 73,437,513 1 $ 4,466 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Financial Instruments [Abstract] | |
Disclosure of detailed information about borrowings | The current and non-current balances of non-recourse borrowings are as follows: As of US$ MILLIONS Dec. 31, 2021 Dec. 31, 2020 Current $ — $ 11 Non-current 3,556 3,466 Total $ 3,556 $ 3,477 Principal repayments on non-recourse borrowings due over the next five years and thereafter are as follows: US$ MILLIONS Total 2022 $ — 2023 1,276 2024 — 2025 156 2026 115 Thereafter 2,016 Total principal repayments 3,563 Deferred financing costs and other (7) Total - Dec. 31, 2021 $ 3,556 Total - Dec. 31, 2020 $ 3,477 The weighted average interest rates of non-recourse borrowings are as follows: As of December 31, 2021 2020 Weighted average interest rates 4 % 3 % Principal repayments on non-recourse borrowings in their local currency are as follows: US$ MILLIONS, except as noted Dec. 31, 2021 Local Currency Dec. 31, 2020 Local Currency U.S. dollars $ 300 USD 300 $ 300 USD $ 300 British pounds 2,043 GBP 1,510 2,174 GBP 1,590 Brazilian real 1,220 BRL 6,807 1,012 BRL 5,260 |
Disclosure of reconciliation of liabilities arising from financing activities | Details of the “Changes in liabilities from financing activities”, including both changes arising from cash flows and non-cash changes are as follows: US$ MILLIONS Dec. 31, 2021 Cash Flows Foreign Exchange Movement Dec. 31, 2020 Non-recourse borrowings 3,556 166 (87) 3,477 US$ MILLIONS Dec. 31, 2020 Cash Flows Foreign Exchange Movement Dec. 31, 2019 Non-recourse borrowings 3,477 171 (220) 3,526 |
NON-WHOLLY OWNED SUBSIDIARIES (
NON-WHOLLY OWNED SUBSIDIARIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Interests In Other Entities [Abstract] | |
Summarized accounts for non-wholly owned subsidiaries | The following tables present summarized accounts for non-wholly owned subsidiaries on the Consolidated Statements of Financial Position: As of December 31, 2021 US$ MILLIONS Current Non-Current Current Non-Current Non-Controlling Equity in Net Assets Attributable to the partnership U.K. regulated distribution operation $ 249 $ 4,961 $ 316 $ 3,285 $ 314 $ 1,295 Brazilian regulated gas transmission operation 668 3,115 1,278 2,028 389 88 Total $ 917 $ 8,076 $ 1,594 $ 5,313 $ 703 $ 1,383 As of December 31, 2020 US$ MILLIONS Current Non-Current Current Non-Current Non-Controlling Equity in Net Assets Attributable to the partnership U.K. regulated distribution operation $ 181 $ 5,264 $ 333 $ 3,241 $ 367 $ 1,504 Brazilian regulated gas transmission operation 405 3,494 203 2,772 783 141 Total $ 586 $ 8,758 $ 536 $ 6,013 $ 1,150 $ 1,645 The following tables present summarized accounts for non-wholly owned subsidiaries on the Consolidated Statements of Operating Results: Year ended December 31, 2021 Attributable to non-controlling interest Attributable to US$ MILLIONS Revenue Net Other Net Other U.K. regulated distribution operation $ 569 $ 34 $ 6 $ 138 $ 26 Brazilian regulated gas transmission operation 1,074 361 (87) 150 (31) Total $ 1,643 $ 395 $ (81) $ 288 $ (5) Year ended December 31, 2020 Attributable to non-controlling interest Attributable to US$ MILLIONS Revenue Net Other Net Other U.K. regulated distribution operation $ 488 $ 11 $ 42 $ 46 $ 167 Brazilian regulated gas transmission operation 942 309 (399) 116 (152) Total $ 1,430 $ 320 $ (357) $ 162 $ 15 Year ended December 31, 2019 Attributable to non-controlling interest Attributable to US$ MILLIONS Revenue Net Other Net Other U.K. regulated distribution operation $ 478 $ 24 $ 71 $ 103 $ 278 Brazilian regulated gas transmission operation 1,141 349 (83) 132 (33) Total $ 1,619 $ 373 $ (12) $ 235 $ 245 The following tables present summarized accounts for non-wholly owned subsidiaries on the Consolidated Statements of Cash Flows: Cash Flow Activities Year ended December 31, 2021 Year ended December 31, 2020 US$ MILLIONS Operating Investing Financing Operating Investing Financing U.K. regulated distribution operation $ 273 $ 344 $ (582) $ 241 $ (372) $ 133 Brazilian regulated gas transmission operation 768 (32) (473) 634 (34) (588) Total $ 1,041 $ 312 $ (1,055) $ 875 $ (406) $ (455) Cash Flow Activities Year ended December 31, 2019 US$ MILLIONS Operating Investing Financing U.K. regulated distribution operation $ 271 $ (416) $ 147 Brazilian regulated gas transmission operation 839 (21) (702) Total $ 1,110 $ (437) $ (555) |
REVENUES (Tables)
REVENUES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue [abstract] | |
Disclosure of revenues | Substantially all of these revenues are recognized over time as services are rendered. The following table disaggregates revenues by service line: For the year ended December 31, US$ MILLIONS 2021 2020 2019 Gas Transmission $ 1,074 $ 942 $ 1,141 Distribution 374 346 307 Connections 167 118 152 Other 28 24 19 Total $ 1,643 $ 1,430 $ 1,619 The following table disaggregates revenues by geographical region. For the year ended December 31, US$ MILLIONS 2021 2020 2019 Brazil $ 1,074 $ 942 $ 1,141 United Kingdom 569 488 478 $ 1,643 $ 1,430 $ 1,619 As of US$ MILLIONS Dec. 31, 2021 Dec. 31, 2020 Brazil $ 3,115 $ 3,494 United Kingdom 4,961 5,264 $ 8,076 $ 8,758 |
Direct Operating Costs (Tables)
Direct Operating Costs (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Direct Operating Costs [Abstract] | |
Disclosure Of Detailed Information On Operating Costs | Comparative figures have been reclassified to conform to the current period’s presentation: US$ MILLIONS 2021 2020 2019 Depreciation and amortization $ 236 $ 283 $ 308 Transportation and distribution 162 145 153 Operations and maintenance 49 39 38 Compensation 44 34 40 Cost of inventory 8 4 — Other 27 22 13 Total $ 526 $ 527 $ 552 |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [abstract] | |
Disclosure of classes of share capital | Our company’s equity is comprised of the following shares: Class C Shares Shares outstanding (Shares) Share capital Balance at January 1, 2020 — $ — Share issuance 1,402,451 53 Balance at December 31, 2020 1,402,451 $ 53 Share issuance — — Balance at December 31, 2021 1,402,451 $ 53 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes [Abstract] | |
Deferred income tax balances | The sources of deferred income tax balances are as follows: As of December 31, US$ MILLIONS 2021 2020 Deferred income tax assets Financial instruments and other $ 17 $ 18 Tax losses carried forward 43 34 $ 60 $ 52 Deferred income tax liabilities Property, plant and equipment $ (1,635) $ (643) Intangible assets (11) (809) $ (1,646) $ (1,452) Net deferred income tax liabilities $ (1,586) $ (1,400) Reflected in the statement of financial position as follows: Deferred tax assets $ 52 $ 43 Deferred tax liabilities (1,638) (1,443) Net deferred tax liabilities $ (1,586) $ (1,400) The sources of deferred income tax balances and movements are as follows: Recognized in US$ MILLIONS Jan. 1, 2021 Net Other Other (1) Acquisitions/Dispositions Dec. 31, 2021 Deferred tax assets related to non-capital losses and capital losses $ 34 $ 9 $ — $ — $ — $ 43 Deferred tax liabilities related to differences in tax and book basis, net (1,434) (180) (121) 66 40 (1,629) Net deferred tax liabilities $ (1,400) $ (171) $ (121) $ 66 $ 40 $ (1,586) Recognized in US$ MILLIONS Jan. 1, 2020 Net Other Other (1) Acquisitions/Dispositions Dec. 31, 2020 Deferred tax assets related to non-capital losses and capital losses $ 31 $ 2 $ — $ 1 $ — $ 34 Deferred tax liabilities related to differences in tax and book basis, net (1,455) (104) (68) 193 — (1,434) Net deferred tax liabilities $ (1,424) $ (102) $ (68) $ 194 $ — $ (1,400) (1) Other items relate to foreign exchange as deferred income taxes are calculated based on the functional currency of each operating entity. For the year ended December 31, US$ MILLIONS 2021 2020 2019 Deferred tax arising on income and expenses recognized in other comprehensive income Revaluation of property, plant and equipment $ 121 $ 67 $ 59 Cash flow hedges — 1 1 Total income tax recognized directly in other comprehensive income $ 121 $ 68 $ 60 |
Components of income tax expense (recovery) | The major components of income tax expense include the following: For the year ended December 31, US$ MILLIONS 2021 2020 2019 Tax expense comprises: Current income tax expense $ 234 $ 167 $ 175 Deferred income tax expense Origination and reversal of temporary differences 59 67 89 Change in tax rates or the imposition of new taxes 96 27 — Deferred tax assets not recognized 16 8 8 Total income tax expense $ 405 $ 269 $ 272 Income tax on income before tax and non-controlling interests reconciles to tax expense as follows: Net income before income tax and non-controlling interests $ 432 $ 37 $ 842 Income tax expense calculated at the domestic rates applicable to profits in the country concerned 179 70 267 Change in tax rates and new legislation 96 27 — International operations subject to different tax rates (2) (3) (3) Taxable income attributable to non-controlling interests (4) (5) (6) Portion of gains subject to different tax rates (37) — 8 Deferred tax assets not recognized 16 8 8 Foreign exchange 2 17 — Non-deductible dividends on exchangeable shares 30 18 — Non-deductible remeasurement adjustments on exchangeable and class B shares 119 136 — Permanent differences and other 6 1 (2) Income tax expense recognized in profit or loss $ 405 $ 269 $ 272 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of analysis of other comprehensive income by item [abstract] | |
Schedule of accumulated other comprehensive income (loss) | US$ MILLIONS Revaluation Foreign Cash Flow Accumulated Balance at December 31, 2019 $ 959 $ (437) $ 1 $ 523 Other comprehensive income 118 (105) 3 16 Balance at December 31, 2020 $ 1,077 $ (542) $ 4 $ 539 Other comprehensive income 10 (15) — (5) Other items (1) (142) — — (142) Balance at December 31, 2021 $ 945 $ (557) $ 4 $ 392 (1) In relation to the disposition of our smart meters business in the U.K., $142 million of accumulated revaluation surplus (net of tax) was reclassified from accumulated other comprehensive income directly to retained earnings and recorded within Other items on the Consolidated Statements of Equity. Refer to Note 4, Disposition of Businesses, for further details. |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Financial Instruments [Abstract] | |
Notional amount of derivative positions | The aggregate notional amount of our company’s derivative positions at December 31, 2021 and 2020 were as follows: As of December 31, US$ MILLIONS Note 2021 2020 Interest rate swaps and other (a) $ 272 $ 447 $ 272 $ 447 |
Disclosure of change in fair values of derivative positions | The following table presents the change in fair values of our company’s derivative positions during the years ended December 31, 2021 and 2020: US$ MILLIONS Unrealized Gains Unrealized Losses Net Change During 2021 Net Change During 2020 Interest rate swaps and other $ — $ — $ — $ 9 $ — $ — $ — $ 9 |
Disclosure of information about terms and conditions of hedging instruments | The following table presents the notional amounts underlying our company’s derivative instruments by term to maturity as at December 31, 2021 and the comparative notional amounts at December 31, 2020, for both derivatives that are classified as fair value through profit or loss and derivatives that qualify for hedge accounting: 2021 2020 US$ MILLIONS < 1 year 1 to 5 years > 5 years Total Notional Total Notional Fair value through profit or loss Inflation rate swaps and other $ — $ — $ — $ — $ 172 $ — $ — $ — $ — $ 172 Elected for hedge accounting Interest rate swaps and other $ — $ 272 $ — $ 272 $ 275 $ — $ 272 $ — $ 272 $ 275 |
Disclosure of derivatives elected for hedge accounting | Changes in the fair value of the effective portion of the hedges are recorded in either other comprehensive income or net income, depending on the hedge classification, whereas changes in the fair value of the ineffective portion of the hedge are recorded in net income: 2021 2020 AS AT AND FOR THE YEARS ENDED (US$ MILLIONS) Notional Effective Ineffective Notional Effective Ineffective Cash flow hedges $ 272 $ — $ — $ 275 $ 5 $ — |
FINANCIAL RISK MANAGEMENT (Tabl
FINANCIAL RISK MANAGEMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Financial Instruments [Abstract] | |
Disclosure of capital structure | The capital structure of our company consists of debt, offset by cash and cash equivalents, exchangeable and class B shares, loans payable to Brookfield Infrastructure and share capital comprised of issued capital and accumulated gains. US$ MILLIONS 2021 2020 Non-recourse borrowings $ 3,556 $ 3,477 Cash and cash equivalents (469) (192) Net debt 3,087 3,285 Exchangeable and class B shares 4,466 2,221 Loans payable to Brookfield Infrastructure 131 1,143 Total equity (1,424) (572) Total capital and net debt $ 6,260 $ 6,077 Net debt to capitalization ratio 49 % 54 % |
Disclosure of maturity analysis for financial liabilities | The tables include both interest and principal cash flows: Less than 1-2 years 2-5 years 5+ years Total December 31, 2021 US$ MILLIONS Accounts payable and other liabilities $ 414 $ 2 $ — $ — $ 416 Non-recourse borrowings — 1,276 271 2,016 3,563 Financial liabilities 995 — — — 995 Exchangeable and class B shares 4,466 — — — 4,466 Loans payable to Brookfield Infrastructure 131 — — — 131 Interest Expense: Non-recourse borrowings 98 73 195 395 761 Less than 1-2 years 2-5 years 5+ years Total December 31, 2020 US$ MILLIONS Accounts payable and other liabilities $ 240 $ 1 $ — $ — $ 241 Non-recourse borrowings 12 — 1,601 1,873 3,486 Financial liabilities 23 969 39 — 1,031 Exchangeable and class B shares 2,221 — — — 2,221 Loans payable to Brookfield Infrastructure — — 61 1,082 1,143 Interest Expense: Non-recourse borrowings 84 77 191 424 776 Loans payable to Brookfield Infrastructure 52 52 155 217 476 |
Disclosure of sensitivity analysis for interest rate and foreign exchange risk | Such parallel shift in the yield curve by 10 basis points would have had the following impact, assuming all other variables were held constant: December 31, 2021 2020 2019 US$ MILLIONS 10 bp 10 bp 10 bp 10 bp 10 bp 10 bp Net income (loss) $ 1 $ (1) $ 1 $ (1) $ 1 $ (1) Other comprehensive income — — — — — — The following tables detail our company’s sensitivity to a 10% increase and decrease in the U.S. dollar against the relevant foreign currencies, with all other variables held constant as at reporting date. 10% is the sensitivity rate used when reporting foreign currency risk internally. The sensitivity analysis is performed as follows: • Outstanding foreign currency denominated monetary items (excluding foreign exchange derivative contracts) are adjusted at period end for a 10% change in foreign currency rates from the rate at which they are translated; • Foreign currency derivative contracts are measured as the change in fair value of the derivative as a result of a 10% change in the spot currency rate; and • The impact on net income results from performing a sensitivity of a 10% change in foreign exchange rates applied to the profit or loss contribution from foreign operations (after considering the impact of foreign exchange derivative contracts). Impact on Net Income 2021 2020 2019 US$ MILLIONS -10% 10% -10% 10% -10% 10% USD/GBP (6) 6 (5) 5 10 (10) USD/BRL (15) 15 (12) 12 13 (13) Impact on Parent Equity 2021 2020 2019 US$ MILLIONS -10% 10% -10% 10% -10% 10% USD/GBP (130) 130 (150) 150 131 (131) USD/BRL (9) 9 (14) 14 34 (34) |
Disclosure of foreign currency exposure | The tables below set out our company’s currency exposure at December 31, 2021, 2020 and 2019: 2021 US$ MILLIONS GBP BRL Total Assets: Current assets $ 249 $ 668 $ 917 Non-current assets 4,961 3,115 8,076 $ 5,210 $ 3,783 $ 8,993 Liabilities: Current liabilities $ 316 $ 1,278 $ 1,594 Non-current liabilities 3,285 2,028 5,313 $ 3,601 $ 3,306 $ 6,907 Non-controlling interest 314 389 703 Net investment attributable to Brookfield Infrastructure $ 1,295 $ 88 $ 1,383 2020 US$ MILLIONS GBP BRL Total Assets: Current assets $ 181 $ 405 $ 586 Non-current assets 5,264 3,494 8,758 $ 5,445 $ 3,899 $ 9,344 Liabilities: Current liabilities $ 333 $ 203 $ 536 Non-current liabilities 3,241 2,772 6,013 $ 3,574 $ 2,975 $ 6,549 Non-controlling interest 367 783 1,150 Net investment attributable to Brookfield Infrastructure $ 1,504 $ 141 $ 1,645 2019 US$ MILLIONS GBP BRL Total Assets: Current assets $ 159 $ 435 $ 594 Non-current assets 4,653 4,606 9,259 $ 4,812 $ 5,041 $ 9,853 Liabilities: Current liabilities $ 294 $ 199 $ 493 Non-current liabilities 2,888 3,195 6,083 $ 3,182 $ 3,394 $ 6,576 Non-controlling interest 318 1,305 1,623 Net investment attributable to Brookfield Infrastructure $ 1,312 $ 342 $ 1,654 |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Cash Flow Statement [Abstract] | |
Disclosure of interest and income taxes paid | For the year ended December 31, US$ MILLIONS 2021 2020 2019 Interest paid $ 261 $ 222 $ 161 Income taxes paid $ 165 $ 135 $ 96 |
Disclosure of changes in non-cash working capital | Details of “Changes in non-cash working capital, net” on the Consolidated Statements of Cash Flows are as follows: For the year ended December 31, US$ MILLIONS 2021 2020 2019 Accounts receivable $ (91) $ (71) $ (58) Accounts payable and other 126 27 131 Changes in non-cash working capital, net $ 35 $ (44) $ 73 |
ORGANIZATION AND DESCRIPTION _2
ORGANIZATION AND DESCRIPTION OF OUR BUSINESS - Narrative (Details) | Mar. 30, 2020USD ($)agreement$ / sharesshares | Dec. 31, 2021USD ($) |
Disclosure of corporate information [line items] | ||
Class A shares to limited partner units, conversion ratio | 0.11111 | |
Exchangeable shares issued as a result of the holding LP distribution, Brookfield (in shares) | shares | 13,700,000 | |
Exchangeable shares issued as a result of the holding LP distribution, Partnership (in shares) | shares | 32,600,000 | |
Percentage of issued and outstanding exchangeable shares held by holders of units | 70.40% | |
Percentage of issued and outstanding exchangeable shares held by Brookfield | 29.60% | |
Percentage of voting interest in company | 82.40% | |
Credit facility, maximum borrowing capacity | $ 1,000,000,000 | |
Equity commitment from parent | $ 1,000,000,000 | |
Class C exchangeable shares, conversion ratio (in shares) | shares | 1 | |
Exchangeable shares listing term | 5 years | |
Preferred shares (in dollars per share) | $ / shares | $ 25 | |
Subsidiaries | ||
Disclosure of corporate information [line items] | ||
Percentage of voting interest in company | 75.00% | |
Holders of exchangeable shares | ||
Disclosure of corporate information [line items] | ||
Percentage of voting interest in company | 25.00% | |
Brookfield Infrastructure Partners L.P | ||
Disclosure of corporate information [line items] | ||
Percentage of voting interest in company | 7.40% | |
Holders of exchangeable shares, excluding Parent | ||
Disclosure of corporate information [line items] | ||
Percentage of voting interest in company | 17.60% | |
Senior Unsecured Revolving Credit Facility | ||
Disclosure of corporate information [line items] | ||
Number of credit agreements | agreement | 2 | |
Borrowings maturity, term | 10 years | |
Credit facility, maximum borrowing capacity | $ 1,000,000,000 | |
Senior Unsecured Revolving Credit Facility | Subsidiaries | ||
Disclosure of corporate information [line items] | ||
Credit facility, maximum borrowing capacity | 1,000,000,000 | |
Senior Unsecured Revolving Credit Facility | Brookfield Infrastructure Partners L.P | ||
Disclosure of corporate information [line items] | ||
Credit facility, maximum borrowing capacity | $ 1,000,000,000 |
SUBSIDIARIES (Details)
SUBSIDIARIES (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
U.K. regulated distribution operation | |||
Disclosure of subsidiaries [line items] | |||
Effective Ownership Interest (%) | 80.00% | 80.00% | 80.00% |
Voting Interest (%) | 80.00% | 80.00% | 80.00% |
Brazil Regulated Gas Transmission Operation | |||
Disclosure of subsidiaries [line items] | |||
Effective Ownership Interest (%) | 31.00% | 28.00% | 28.00% |
Voting Interest (%) | 92.00% | 90.00% | 90.00% |
BASIS OF PRESENTATION AND SIG_4
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life of intangible asset | 15 years |
Brazilian regulated gas transmission operation | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life of intangible asset | 31 years |
Buildings | Top of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, property, plant and equipment | 50 years |
Machinery and equipment | Top of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, property, plant and equipment | 5 years |
Network systems | Top of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, property, plant and equipment | 60 years |
DISPOSITION OF BUSINESSES (Deta
DISPOSITION OF BUSINESSES (Details) - Disposal Group Disposed Of By Sale Not Discontinued Operations $ in Millions | May 12, 2021USD ($) |
Disclosure of interest in other entities [Line Items] | |
Gains (losses) on disposals of non-current assets | $ 155 |
U.K. regulated distribution operation | |
Disclosure of interest in other entities [Line Items] | |
Disposal group, including discontinued operation, consideration | 820 |
Cash flows from losing control of subsidiaries or other businesses | 340 |
Gains (losses) on disposals of non-current assets | 195 |
Increase (decrease) through transfer between revaluation surplus and retained earnings, equity | 142 |
Reclassification adjustments on exchange differences on translation, net of tax | $ 17 |
ACQUISITION OF BUSINESSES (Deta
ACQUISITION OF BUSINESSES (Details) - Brazilian regulated gas transmission operation $ in Millions | Apr. 30, 2021USD ($) |
Disclosure of detailed information about business combination [line items] | |
Proportion of ownership interest in subsidiary, additional | 3.00% |
Effective Ownership Interest (%) | 31.00% |
Consideration transferred, acquisition-date fair value | $ 87 |
Gain (loss) recognised as result of ownership changes | $ (32) |
Consortium | |
Disclosure of detailed information about business combination [line items] | |
Proportion of ownership interest in subsidiary, additional | 10.00% |
Consideration transferred, acquisition-date fair value | $ 283 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS - Allocation of Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of financial assets [line items] | ||
Financial assets | $ 1,994 | $ 646 |
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 9,564 | 8,206 |
Fair value through profit or loss | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 0 | 69 |
Amortized Cost | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 9,564 | 8,137 |
Fair value through profit or loss | ||
Disclosure of financial assets [line items] | ||
Financial assets | 30 | 27 |
Amortized Cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | 1,964 | 619 |
Accounts payable and other (current and non-current) | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 416 | 334 |
Accounts payable and other (current and non-current) | Fair value through profit or loss | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 0 | 0 |
Accounts payable and other (current and non-current) | Amortized Cost | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 416 | 334 |
Non-recourse borrowings | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 3,556 | 3,477 |
Non-recourse borrowings | Fair value through profit or loss | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 0 | 0 |
Non-recourse borrowings | Amortized Cost | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 3,556 | 3,477 |
Exchangeable and Class B Shares | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 4,466 | 2,221 |
Exchangeable and Class B Shares | Fair value through profit or loss | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 0 | 0 |
Exchangeable and Class B Shares | Amortized Cost | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 4,466 | 2,221 |
Financial Liabilities | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 995 | 1,031 |
Financial Liabilities | Fair value through profit or loss | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 0 | 69 |
Financial Liabilities | Amortized Cost | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 995 | 962 |
Loans payable to Brookfield Infrastructure | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 131 | 1,143 |
Loans payable to Brookfield Infrastructure | Fair value through profit or loss | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 0 | 0 |
Loans payable to Brookfield Infrastructure | Amortized Cost | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 131 | 1,143 |
Cash and cash equivalents | ||
Disclosure of financial assets [line items] | ||
Financial assets | 469 | 192 |
Cash and cash equivalents | Fair value through profit or loss | ||
Disclosure of financial assets [line items] | ||
Financial assets | 0 | 0 |
Cash and cash equivalents | Amortized Cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | 469 | 192 |
Accounts receivable and other (current and non-current) | ||
Disclosure of financial assets [line items] | ||
Financial assets | 402 | 427 |
Accounts receivable and other (current and non-current) | Fair value through profit or loss | ||
Disclosure of financial assets [line items] | ||
Financial assets | 0 | 0 |
Accounts receivable and other (current and non-current) | Amortized Cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | 402 | 427 |
Financial Assets | ||
Disclosure of financial assets [line items] | ||
Financial assets | 30 | 27 |
Financial Assets | Fair value through profit or loss | ||
Disclosure of financial assets [line items] | ||
Financial assets | 30 | 27 |
Financial Assets | Amortized Cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | 0 | 0 |
Due from Brookfield Infrastructure | ||
Disclosure of financial assets [line items] | ||
Financial assets | 1,093 | $ 0 |
Due from Brookfield Infrastructure | Fair value through profit or loss | ||
Disclosure of financial assets [line items] | ||
Financial assets | 0 | |
Due from Brookfield Infrastructure | Amortized Cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | $ 1,093 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS - Allocation of Financial Instruments - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Financial Assets | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial instruments designated as hedging instruments, at fair value | $ 30 | $ 27 |
Financial Liabilities | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial instruments designated as hedging instruments, at fair value | $ 0 | $ 0 |
FAIR VALUE OF FINANCIAL INSTR_5
FAIR VALUE OF FINANCIAL INSTRUMENTS - Carrying and Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of financial assets [line items] | ||
Carrying Value | $ 1,994 | $ 646 |
Fair Value | 1,994 | 646 |
Disclosure of financial liabilities [line items] | ||
Carrying Value | 9,564 | 8,206 |
Fair Value | 9,635 | 8,452 |
Accounts payable and other (current and non-current) | ||
Disclosure of financial liabilities [line items] | ||
Carrying Value | 416 | 334 |
Fair Value | 416 | 334 |
Non Recourse Borrowings | ||
Disclosure of financial liabilities [line items] | ||
Carrying Value | 3,556 | 3,477 |
Fair Value | 3,627 | 3,723 |
Exchangeable and Class B Shares | ||
Disclosure of financial liabilities [line items] | ||
Carrying Value | 4,466 | 2,221 |
Fair Value | 4,466 | 2,221 |
Financial Liabilities | ||
Disclosure of financial liabilities [line items] | ||
Carrying Value | 995 | 1,031 |
Fair Value | 995 | 1,031 |
Loans payable to Brookfield Infrastructure | ||
Disclosure of financial liabilities [line items] | ||
Carrying Value | 131 | 1,143 |
Fair Value | 131 | 1,143 |
Class C Shares | ||
Disclosure of financial liabilities [line items] | ||
Fair Value | 85 | |
Cash and cash equivalents | ||
Disclosure of financial assets [line items] | ||
Carrying Value | 469 | 192 |
Fair Value | 469 | 192 |
Accounts receivable and other (current and non-current) | ||
Disclosure of financial assets [line items] | ||
Carrying Value | 402 | 427 |
Fair Value | 402 | 427 |
Financial Assets | ||
Disclosure of financial assets [line items] | ||
Carrying Value | 30 | 27 |
Fair Value | 30 | 27 |
Due from Brookfield Infrastructure | ||
Disclosure of financial assets [line items] | ||
Carrying Value | 1,093 | 0 |
Fair Value | $ 1,093 | $ 0 |
FAIR VALUE OF FINANCIAL INSTR_6
FAIR VALUE OF FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | |||
Financial liabilities | $ 995 | $ 1,031 | |
Cash flow hedges | Financial assets at fair value through other comprehensive income, category | |||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | |||
Gains (losses) on hedging instrument, fair value hedges | 0 | 5 | $ 5 |
Derivative financial assets | $ 30 | $ 27 |
FAIR VALUE OF FINANCIAL INSTR_7
FAIR VALUE OF FINANCIAL INSTRUMENTS - Valuation Techniques and Significant Inputs (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial liabilities | $ 995 | $ 1,031 |
Recurring fair value measurement | Interest rate swaps & other | Level 2 | Discounted cash flow | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial liabilities | 0 | 69 |
Recurring fair value measurement | Interest rate swaps & other | Level 2 | Discounted cash flow | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | $ 30 | $ 27 |
CASH AND CASH EQUIVALENTS (Deta
CASH AND CASH EQUIVALENTS (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Cash and cash equivalents [abstract] | ||||
Cash | $ 43 | $ 8 | ||
Cash equivalents | 426 | 184 | ||
Total cash and cash equivalents | $ 469 | $ 192 | $ 204 | $ 99 |
ACCOUNTS RECEIVABLE AND OTHER_2
ACCOUNTS RECEIVABLE AND OTHER (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Current: | ||
Accounts receivables | $ 402 | $ 345 |
Prepayments & other assets | 46 | 49 |
Total current | 448 | 394 |
Non-current: | ||
Other assets | 15 | 101 |
Total non-current | 15 | 101 |
Brazil | ||
Current: | ||
Accounts receivables | $ 210 | $ 185 |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Net Book Value (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | $ 5,111 | $ 4,497 |
Additions, net of disposals | 377 | 364 |
Assets held by subsidiaries disposed during the period | (653) | |
Non-cash disposals | (4) | 3 |
Depreciation expense | (128) | (131) |
Fair value adjustments | 134 | 215 |
Net foreign currency exchange differences | (34) | 163 |
Ending balance | 4,803 | 5,111 |
Gross carrying amount | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 4,197 | 3,696 |
Additions, net of disposals | 367 | 358 |
Assets held by subsidiaries disposed during the period | (599) | |
Non-cash disposals | (1) | 6 |
Depreciation expense | 0 | 0 |
Fair value adjustments | 0 | 0 |
Net foreign currency exchange differences | (29) | 137 |
Ending balance | 3,935 | 4,197 |
Accumulated depreciation | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | (719) | (567) |
Additions, net of disposals | 10 | 6 |
Assets held by subsidiaries disposed during the period | 163 | |
Non-cash disposals | (3) | (3) |
Depreciation expense | (128) | (131) |
Fair value adjustments | 0 | 0 |
Net foreign currency exchange differences | 4 | (24) |
Ending balance | (673) | (719) |
Accumulated fair value adjustments | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 1,633 | 1,368 |
Additions, net of disposals | 0 | 0 |
Assets held by subsidiaries disposed during the period | (217) | |
Non-cash disposals | 0 | 0 |
Depreciation expense | 0 | 0 |
Fair value adjustments | 134 | 215 |
Net foreign currency exchange differences | (9) | 50 |
Ending balance | $ 1,541 | $ 1,633 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT - Valuation Technique (Details) - Property, plant and equipment - Recurring fair value measurement - Discounted cash flow model | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Terminal Value Multiple | 20 | 23 |
Investment Horizon | 10 years | 10 years |
Interest rate, measurement input | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Discount Rate | 0.07 | 0.07 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Gain from revaluation | $ 134 | $ 215 |
Property, plant and equipment, revalued assets, at cost | 3,464 | 3,688 |
Accumulated fair value adjustments | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Gain from revaluation | $ 134 | $ 215 |
INTANGIBLE ASSETS - Narrative (
INTANGIBLE ASSETS - Narrative (Details) - Change in Estimated Useful Life $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Disclosure of changes in accounting estimates [line items] | |
Increase in estimated useful life | 11 years |
Increase (decrease) in accounting estimate | $ (37) |
INTANGIBLE ASSETS - Net Amounts
INTANGIBLE ASSETS - Net Amounts (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about intangible assets [line items] | |||
Net intangible assets | $ 2,687 | $ 2,948 | |
Cost | |||
Disclosure of detailed information about intangible assets [line items] | |||
Net intangible assets | 3,332 | 3,527 | $ 4,479 |
Accumulated amortization | |||
Disclosure of detailed information about intangible assets [line items] | |||
Net intangible assets | $ (645) | $ (579) | $ (543) |
INTANGIBLE ASSETS - Cash Genera
INTANGIBLE ASSETS - Cash Generating Units (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of information for cash-generating units [line items] | ||
Intangible assets | $ 2,687 | $ 2,948 |
Brazilian regulated gas transmission operation | ||
Disclosure of information for cash-generating units [line items] | ||
Intangible assets | 2,645 | 2,903 |
U.K. regulated distribution operation | ||
Disclosure of information for cash-generating units [line items] | ||
Intangible assets | $ 42 | $ 45 |
INTANGIBLE ASSETS - Reconciliat
INTANGIBLE ASSETS - Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of changes in intangible assets other than goodwill | ||
Cost at beginning of the year | $ 2,948 | |
Non cash additions | 5 | $ 0 |
Cost at end of year | 2,687 | 2,948 |
Cost | ||
Reconciliation of changes in intangible assets other than goodwill | ||
Cost at beginning of the year | 3,527 | 4,479 |
Additions, net of disposals | 38 | 35 |
Foreign currency translation | (238) | (987) |
Cost at end of year | $ 3,332 | $ 3,527 |
INTANGIBLE ASSETS - Accumulated
INTANGIBLE ASSETS - Accumulated Amortization (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about intangible assets [line items] | ||
Cost at beginning of the year | $ 2,948 | |
Cost at end of year | 2,687 | $ 2,948 |
Accumulated amortization | ||
Disclosure of detailed information about intangible assets [line items] | ||
Cost at beginning of the year | (579) | (543) |
Amortization | (108) | (152) |
Foreign currency translation | 42 | 116 |
Cost at end of year | $ (645) | $ (579) |
GOODWILL (Details)
GOODWILL (Details) - Goodwill - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Balance at beginning of the year | $ 528 | $ 667 |
Foreign currency translation and other | (39) | (139) |
Balance at end of the year | $ 489 | $ 528 |
Bottom of range | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Discount rate applied to cash flow projections | 7.00% | |
Terminal rate applied to cash flow projections | 6 | |
Period over which management has projected cash flows | 10 years | |
Top of range | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Discount rate applied to cash flow projections | 14.00% | |
Terminal rate applied to cash flow projections | 20 | |
Period over which management has projected cash flows | 20 years |
GOODWILL - Cash Generating Unit
GOODWILL - Cash Generating Units Table (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets | $ 2,687 | $ 2,948 | |
Goodwill | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Goodwill | 489 | 528 | $ 667 |
U.K. regulated distribution operation | Goodwill | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Goodwill | 33 | 38 | |
Brazilian regulated gas transmission operation | Goodwill | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Goodwill | $ 456 | $ 490 |
ACCOUNTS PAYABLE AND OTHER (Det
ACCOUNTS PAYABLE AND OTHER (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Current: | ||
Accounts payable | $ 39 | $ 84 |
Accrued & other liabilities | 413 | 265 |
Deferred revenue | 153 | 156 |
Total current | 605 | 505 |
Non-current: | ||
Deferred revenue | 89 | 76 |
Provisions & other liabilities | 30 | 20 |
Total non-current | $ 119 | $ 96 |
2022 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Percentage of entity's deferred income recognized | 63.00% | |
2023 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Percentage of entity's deferred income recognized | 37.00% |
FINANCIAL LIABILITIES (Details)
FINANCIAL LIABILITIES (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Current: | ||
Inflation swaps | $ 0 | $ 23 |
Deferred consideration | 995 | 0 |
Total current financial liabilities | 995 | 23 |
Non-current: | ||
Inflation swaps | 0 | 46 |
Deferred consideration | 0 | 962 |
Total non-current financial liabilities | $ 0 | $ 1,008 |
FINANCIAL LIABILITIES - Narrati
FINANCIAL LIABILITIES - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||
Nov. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about financial instruments [line items] | |||||
Deferred consideration, annual interest accrual | 3.35% | ||||
Equity issued, exchangeable shares (in shares) | $ 2,100,000 | ||||
Number of share issued, opening (in dollar per share) | $ 60.81 | ||||
Exchangeable shares issued, gross | $ 134 | ||||
Share issue related cost | $ 6 | ||||
Dividends recognised as distributions to owners | $ 115 | $ 66 | $ 0 | ||
Exchangeable shares outstanding (Shares) | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Exchangeable share conversion (in shares) | 24,366 | 1,388,874 | |||
Inter Pipeline | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Equity issued, exchangeable shares (in shares) | $ 26,000,000 | ||||
Exchange LP unit conversion, shares (in shares) | $ 400,000 | ||||
Share capital | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Number of share issued, opening (in dollar per share) | $ 62.70 |
FINANCIAL LIABILITIES - Exchang
FINANCIAL LIABILITIES - Exchangeable and Class B Shares (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of financial liabilities [line items] | ||||
Ending balance, unit price (in dollars per share) | $ 60.81 | |||
Beginning balance, exchangeable and Class B shares | $ 2,221 | |||
Remeasurement of liability, value | (447) | $ (511) | $ 0 | |
Ending balance, exchangeable and Class B shares | 4,466 | 2,221 | ||
Equity issued, exchangeable shares (in shares) | $ 2,100,000 | |||
Exchangeable shares issued, net of costs | $ 128 | $ 0 | $ 0 | |
Exchangeable shares outstanding (Shares) | ||||
Disclosure of financial liabilities [line items] | ||||
Beginning balance (in shares) | 44,960,449 | 0 | ||
Share issuance (in shares) | 28,130,103 | 46,349,323 | ||
Issuance of exchangeable LP units (in shares) | 371,327 | |||
Share exchanges (in shares) | (24,366) | (1,388,874) | ||
Remeasurement of liability (in shares) | 0 | 0 | ||
Ending balance (in shares) | 73,437,513 | 44,960,449 | 0 | |
Class B shares outstanding (Shares) | ||||
Disclosure of financial liabilities [line items] | ||||
Beginning balance (in shares) | 1 | 0 | ||
Share issuance (in shares) | 0 | 1 | ||
Issuance of exchangeable LP units (in shares) | 0 | |||
Share exchanges (in shares) | 0 | 0 | ||
Remeasurement of liability (in shares) | 0 | 0 | ||
Ending balance (in shares) | 1 | 1 | 0 | |
Exchangeable and class B shares (US$ Millions) | ||||
Disclosure of financial liabilities [line items] | ||||
Beginning balance, exchangeable and Class B shares | $ 2,221 | $ 0 | ||
Share issuance, value | 1,776 | 1,765 | ||
Issuance of exchangeable LP units, value | 23 | |||
Exchangeable share conversion, value | (1) | (55) | ||
Remeasurement of liability, value | 447 | 511 | ||
Ending balance, exchangeable and Class B shares | $ 4,466 | $ 2,221 | $ 0 | |
Share capital | ||||
Disclosure of financial liabilities [line items] | ||||
Ending balance, unit price (in dollars per share) | $ 62.70 |
BORROWINGS - Non-Recourse Borro
BORROWINGS - Non-Recourse Borrowings (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of detailed information about borrowings [line items] | ||
Current | $ 0 | $ 11 |
Non-current | 3,556 | 3,466 |
Non-recourse borrowings | ||
Disclosure of detailed information about borrowings [line items] | ||
Total | $ 3,556 | $ 3,477 |
BORROWINGS - Narrative (Details
BORROWINGS - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Disclosure of detailed information about borrowings [line items] | |
Increase (decrease) through financing cash flows, liabilities arising from financing activities | $ 166 |
Non-recourse borrowings | |
Disclosure of detailed information about borrowings [line items] | |
Decrease in borrowings | $ 79 |
BORROWINGS - Repayments on Non-
BORROWINGS - Repayments on Non-Recourse Borrowings (Details) - Non-recourse borrowings - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of detailed information about borrowings [line items] | ||
Total principal repayments | $ 3,563 | |
Deferred financing costs and other | (7) | |
Total | 3,556 | $ 3,477 |
2022 | ||
Disclosure of detailed information about borrowings [line items] | ||
Total principal repayments | 0 | |
2023 | ||
Disclosure of detailed information about borrowings [line items] | ||
Total principal repayments | 1,276 | |
2024 | ||
Disclosure of detailed information about borrowings [line items] | ||
Total principal repayments | 0 | |
2025 | ||
Disclosure of detailed information about borrowings [line items] | ||
Total principal repayments | 156 | |
2026 | ||
Disclosure of detailed information about borrowings [line items] | ||
Total principal repayments | 115 | |
Thereafter | ||
Disclosure of detailed information about borrowings [line items] | ||
Total principal repayments | $ 2,016 |
BORROWINGS - Weighted Average I
BORROWINGS - Weighted Average Interest Rate (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
Interest on non-recourse borrowings | Weighted average | ||
Disclosure of detailed information about borrowings [line items] | ||
Weighted average interest rates | 4.00% | 3.00% |
BORROWINGS - Borrowings by Curr
BORROWINGS - Borrowings by Currency (Details) - Interest on non-recourse borrowings £ in Millions, R$ in Millions, $ in Millions | Dec. 31, 2021USD ($) | Dec. 31, 2021GBP (£) | Dec. 31, 2021BRL (R$) | Dec. 31, 2020USD ($) | Dec. 31, 2020GBP (£) | Dec. 31, 2020BRL (R$) |
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings | $ 3,556 | $ 3,477 | ||||
U.S. dollars | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings | 300 | 300 | ||||
Local Currency | 300 | 300 | ||||
British pounds | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings | 2,043 | 2,174 | ||||
Local Currency | £ | £ 1,510 | £ 1,590 | ||||
Brazilian real | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings | $ 1,220 | $ 1,012 | ||||
Local Currency | R$ | R$ 6807 | R$ 5260 |
BORROWINGS - Supplemental Cash
BORROWINGS - Supplemental Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of reconciliation of liabilities arising from financing activities [abstract] | ||
Cash Flows | $ 166 | |
Non-recourse borrowings | ||
Disclosure of reconciliation of liabilities arising from financing activities [abstract] | ||
Beginning balance | 3,477 | $ 3,526 |
Cash Flows | 166 | 171 |
Foreign Exchange Movement | (87) | (220) |
Ending balance | $ 3,556 | $ 3,477 |
NON-WHOLLY OWNED SUBSIDIARIES -
NON-WHOLLY OWNED SUBSIDIARIES - Summarized Statement of Financial Position (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of subsidiaries [line items] | |||
Current Assets | $ 2,010 | $ 586 | |
Current Liabilities | 6,197 | 2,760 | |
Non-controlling interests | 703 | 1,150 | |
Equity in Net Assets Attributable to the partnership | [1] | (2,127) | (1,722) |
Non-Wholly Owned Subsidiaries | |||
Disclosure of subsidiaries [line items] | |||
Current Assets | 917 | 586 | |
Non-Current Assets | 8,076 | 8,758 | |
Current Liabilities | 1,594 | 536 | |
Non-Current Liabilities | 5,313 | 6,013 | |
Non-controlling interests | 703 | 1,150 | |
Equity in Net Assets Attributable to the partnership | 1,383 | 1,645 | |
U.K. regulated distribution operation | |||
Disclosure of subsidiaries [line items] | |||
Current Assets | 249 | 181 | |
Non-Current Assets | 4,961 | 5,264 | |
Current Liabilities | 316 | 333 | |
Non-Current Liabilities | 3,285 | 3,241 | |
Non-controlling interests | 314 | 367 | |
Equity in Net Assets Attributable to the partnership | 1,295 | 1,504 | |
Brazilian regulated gas transmission operation | |||
Disclosure of subsidiaries [line items] | |||
Current Assets | 668 | 405 | |
Non-Current Assets | 3,115 | 3,494 | |
Current Liabilities | 1,278 | 203 | |
Non-Current Liabilities | 2,028 | 2,772 | |
Non-controlling interests | 389 | 783 | |
Equity in Net Assets Attributable to the partnership | $ 88 | $ 141 | |
[1] | Common equity is attributable to the partnership prior to the special distribution and subsequently as a result of the partnership holding all of the class C shares issued by our company. Please refer to Note 3(b), Basis of Presentation and Significant Accounting Policies, for further details. |
NON-WHOLLY OWNED SUBSIDIARIES_2
NON-WHOLLY OWNED SUBSIDIARIES - Summarized Statement of Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of subsidiaries [line items] | |||
Revenues | $ 1,643 | $ 1,430 | $ 1,619 |
Non-controlling interests | 395 | 320 | 373 |
Non-Wholly Owned Subsidiaries | |||
Disclosure of subsidiaries [line items] | |||
Revenues | 1,643 | 1,430 | 1,619 |
Non-controlling interests | 395 | 320 | 373 |
Other Comprehensive Income (loss) | (81) | (357) | (12) |
Net Income | 288 | 162 | 235 |
Other Comprehensive Income (loss) | (5) | 15 | 245 |
U.K. regulated distribution operation | |||
Disclosure of subsidiaries [line items] | |||
Revenues | 569 | 488 | 478 |
Non-controlling interests | 34 | 11 | 24 |
Other Comprehensive Income (loss) | 6 | 42 | 71 |
Net Income | 138 | 46 | 103 |
Other Comprehensive Income (loss) | 26 | 167 | 278 |
Brazilian regulated gas transmission operation | |||
Disclosure of subsidiaries [line items] | |||
Revenues | 1,074 | 942 | 1,141 |
Non-controlling interests | 361 | 309 | 349 |
Other Comprehensive Income (loss) | (87) | (399) | (83) |
Net Income | 150 | 116 | 132 |
Other Comprehensive Income (loss) | $ (31) | $ (152) | $ (33) |
NON-WHOLLY OWNED SUBSIDIARIES_3
NON-WHOLLY OWNED SUBSIDIARIES - Summarized Cash Flow Activities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of subsidiaries [line items] | |||
Operating | $ 839 | $ 730 | $ 1,083 |
Investing | 326 | (399) | (441) |
Financing | (868) | (317) | (514) |
Non-Wholly Owned Subsidiaries | |||
Disclosure of subsidiaries [line items] | |||
Operating | 1,041 | 875 | 1,110 |
Investing | 312 | (406) | (437) |
Financing | (1,055) | (455) | (555) |
U.K. regulated distribution operation | |||
Disclosure of subsidiaries [line items] | |||
Operating | 273 | 241 | 271 |
Investing | 344 | (372) | (416) |
Financing | (582) | 133 | 147 |
Brazilian regulated gas transmission operation | |||
Disclosure of subsidiaries [line items] | |||
Operating | 768 | 634 | 839 |
Investing | (32) | (34) | (21) |
Financing | $ (473) | $ (588) | $ (702) |
REVENUES - Revenues by Service
REVENUES - Revenues by Service Line (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of operating segments [line items] | |||
Revenues | $ 1,643 | $ 1,430 | $ 1,619 |
Gas Transmission | |||
Disclosure of operating segments [line items] | |||
Revenues | 1,074 | 942 | 1,141 |
Distribution | |||
Disclosure of operating segments [line items] | |||
Revenues | 374 | 346 | 307 |
Connections | |||
Disclosure of operating segments [line items] | |||
Revenues | 167 | 118 | 152 |
Other | |||
Disclosure of operating segments [line items] | |||
Revenues | $ 28 | $ 24 | $ 19 |
REVENUES - Geographic Informati
REVENUES - Geographic Information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)customer | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Disclosure of geographical areas [line items] | |||
Revenues | $ 1,643 | $ 1,430 | $ 1,619 |
Brazil | |||
Disclosure of geographical areas [line items] | |||
Revenues | 1,074 | 942 | 1,141 |
United Kingdom | |||
Disclosure of geographical areas [line items] | |||
Revenues | $ 569 | $ 488 | $ 478 |
Customer Concentration Risk 1 | |||
Disclosure of geographical areas [line items] | |||
Concentration risk, number of customers | customer | 1 |
REVENUES - Non-Current Assets (
REVENUES - Non-Current Assets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of geographical areas [line items] | ||
Other assets | $ 8,076 | $ 8,758 |
Brazil | ||
Disclosure of geographical areas [line items] | ||
Other assets | 3,115 | 3,494 |
United Kingdom | ||
Disclosure of geographical areas [line items] | ||
Other assets | $ 4,961 | $ 5,264 |
Direct Operating Costs (Details
Direct Operating Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Direct Operating Costs [Abstract] | |||
Depreciation and amortization | $ 236 | $ 283 | $ 308 |
Transportation and distribution | 162 | 145 | 153 |
Operations and maintenance | 49 | 39 | 38 |
Compensation | 44 | 34 | 40 |
Cost of inventory | 8 | 4 | 0 |
Other | 27 | 22 | 13 |
Total | $ 526 | $ 527 | $ 552 |
EQUITY (Details)
EQUITY (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Partnership Units [Line Items] | ||
Beginning balance | $ (572) | $ 3,277 |
Ending balance | $ (1,424) | $ (572) |
Class C Shares | ||
Schedule of Partnership Units [Line Items] | ||
Beginning balance (in shares) | 1,402,451,000,000 | 0 |
Share issuance (in shares) | 0 | 1,402,451,000,000 |
Ending balance (in shares) | 1,402,451,000,000 | 1,402,451,000,000 |
Share capital | ||
Schedule of Partnership Units [Line Items] | ||
Beginning balance | $ 53 | |
Ending balance | 53 | $ 53 |
Share capital | Class C Shares | ||
Schedule of Partnership Units [Line Items] | ||
Beginning balance | 53 | 0 |
Share issuance | 0 | 53 |
Ending balance | $ 53 | $ 53 |
EQUITY - Narrative (Details)
EQUITY - Narrative (Details) - Share capital | Dec. 31, 2021shares |
Exchangeable shares outstanding (Shares) | |
Schedule of Partnership Units [Line Items] | |
Number of shares outstanding, special distribution (in shares) | 46,300,000 |
Class B shares outstanding (Shares) | |
Schedule of Partnership Units [Line Items] | |
Number of shares outstanding, special distribution (in shares) | 1 |
Class C Shares | |
Schedule of Partnership Units [Line Items] | |
Number of shares outstanding, special distribution (in shares) | 1,400,000 |
INCOME TAXES - Deferred Income
INCOME TAXES - Deferred Income Tax Balances (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax assets | $ 60 | $ 52 | |
Deferred income tax liabilities | (1,646) | (1,452) | |
Deferred tax assets | 52 | 43 | |
Deferred tax liabilities | (1,638) | (1,443) | |
Net deferred tax liabilities | (1,586) | (1,400) | $ (1,424) |
Financial instruments and other | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax assets | 17 | 18 | |
Tax losses carried forward | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax assets | 43 | 34 | |
Deferred tax assets | 43 | ||
Net deferred tax liabilities | 43 | 34 | $ 31 |
Property, plant and equipment | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax liabilities | (1,635) | (643) | |
Intangible assets | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax liabilities | (11) | $ (809) | |
Unused Tax Losses, Expiring in Five Years | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | $ 78 |
INCOME TAXES - Deferred Tax Bal
INCOME TAXES - Deferred Tax Balances and Movement (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||
Net deferred income tax liabilities, beginning balance | $ (1,400) | $ (1,424) | |
Net Income | (171) | (102) | |
Other Comprehensive Income | (121) | (68) | $ (60) |
Other | 66 | 194 | |
Acquisitions/Dispositions | 40 | 0 | |
Net deferred income tax liabilities, ending balance | (1,586) | (1,400) | (1,424) |
Deferred tax assets related to non-capital losses and capital losses | |||
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||
Net deferred income tax liabilities, beginning balance | 34 | 31 | |
Net Income | 9 | 2 | |
Other Comprehensive Income | 0 | 0 | |
Other | 0 | 1 | |
Acquisitions/Dispositions | 0 | 0 | |
Net deferred income tax liabilities, ending balance | 43 | 34 | 31 |
Deferred tax liabilities related to differences in tax and book basis, net | |||
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||
Net deferred income tax liabilities, beginning balance | (1,434) | (1,455) | |
Net Income | (180) | (104) | |
Other Comprehensive Income | (121) | (68) | |
Other | 66 | 193 | |
Acquisitions/Dispositions | 40 | 0 | |
Net deferred income tax liabilities, ending balance | $ (1,629) | $ (1,434) | $ (1,455) |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred income tax asset | $ 52 | $ 43 |
Deductible temporary differences for which no deferred tax asset is recognised | 81 | $ 11 |
Unused Tax Losses, Indefinitely Carried Forward | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred income tax asset | 3 | |
Unused Tax Losses, Expiring in Five Years | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred income tax asset | $ 78 |
INCOME TAXES - Income Tax Recog
INCOME TAXES - Income Tax Recognized in Profit or Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes [Abstract] | |||
Current income tax expense | $ 234 | $ 167 | $ 175 |
Origination and reversal of temporary differences | 59 | 67 | 89 |
Change in tax rates or the imposition of new taxes | 96 | 27 | 0 |
Deferred tax assets not recognized | 16 | 8 | 8 |
Total income tax expense | 405 | 269 | 272 |
Net income before income tax and non-controlling interests | 432 | 37 | 842 |
Income tax expense calculated at the domestic rates applicable to profits in the country concerned | 179 | 70 | 267 |
Change in tax rates and new legislation | 96 | 27 | 0 |
International operations subject to different tax rates | (2) | (3) | (3) |
Taxable income attributable to non-controlling interests | (4) | (5) | (6) |
Portion of gains subject to different tax rates | (37) | 0 | 8 |
Deferred tax assets not recognized | 16 | 8 | 8 |
Foreign exchange | 2 | 17 | 0 |
Non-deductible dividends on exchangeable shares | 30 | 18 | 0 |
Non-deductible remeasurement adjustments on exchangeable and class B shares | 119 | 136 | 0 |
Permanent differences and other | 6 | 1 | (2) |
Income tax expense recognized in profit or loss | $ 405 | $ 269 | $ 272 |
INCOME TAXES - Income Tax Rec_2
INCOME TAXES - Income Tax Recognized Directly in Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Total income tax expense recognized directly in other comprehensive income | $ 121 | $ 68 | $ 60 |
Revaluation of property, plant and equipment | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Total income tax expense recognized directly in other comprehensive income | 121 | 67 | 59 |
Cash flow hedges | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Total income tax expense recognized directly in other comprehensive income | $ 0 | $ 1 | $ 1 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||||
Disclosure of analysis of other comprehensive income by item [line items] | |||||||
Beginning balance | $ (572) | $ 3,277 | $ 3,249 | ||||
Other comprehensive income | (86) | (341) | 233 | ||||
Other items | [1],[2] | 87 | |||||
Ending balance | (1,424) | (572) | 3,277 | ||||
Accumulated other comprehensive income | |||||||
Disclosure of analysis of other comprehensive income by item [line items] | |||||||
Beginning balance | 539 | [3],[4] | 523 | [3] | 278 | [5] | |
Other comprehensive income | (5) | [4] | 16 | [3] | 245 | [5] | |
Other items | [1],[2],[4] | 142 | |||||
Ending balance | 392 | [4] | 539 | [3],[4] | 523 | [3] | |
Limited Partners | Accumulated other comprehensive income | |||||||
Disclosure of analysis of other comprehensive income by item [line items] | |||||||
Beginning balance | 539 | 523 | |||||
Other comprehensive income | (5) | 16 | |||||
Other items | 142 | ||||||
Ending balance | 392 | 539 | 523 | ||||
Limited Partners | Revaluation Surplus | |||||||
Disclosure of analysis of other comprehensive income by item [line items] | |||||||
Beginning balance | 1,077 | 959 | |||||
Other comprehensive income | 10 | 118 | |||||
Other items | 142 | ||||||
Ending balance | 945 | 1,077 | 959 | ||||
Limited Partners | Foreign Currency Translation | |||||||
Disclosure of analysis of other comprehensive income by item [line items] | |||||||
Beginning balance | (542) | (437) | |||||
Other comprehensive income | (15) | (105) | |||||
Other items | 0 | ||||||
Ending balance | (557) | (542) | (437) | ||||
Limited Partners | Cash Flow Hedges | |||||||
Disclosure of analysis of other comprehensive income by item [line items] | |||||||
Beginning balance | 4 | 1 | |||||
Other comprehensive income | 0 | 3 | |||||
Other items | 0 | ||||||
Ending balance | $ 4 | $ 4 | $ 1 | ||||
[1] | Refer to Note 4, Disposition of Businesses for further details. | ||||||
[2] | Refer to Note 5, Acquisition of Businesses for further details. | ||||||
[3] | Refer to Note 20 Accumulated Other Comprehensive Income (Loss) for an analysis of accumulated other comprehensive income (loss) by item. | ||||||
[4] | Refer to Note 20, Accumulated Other Comprehensive Income (Loss) for an analysis of accumulated other comprehensive income (loss) by item. | ||||||
[5] | Refer to Note 20 Accumulated Other Comprehensive Income (Loss) for an analysis of accumulated other comprehensive income (loss) by item. |
CONTRACTUAL COMMITMENTS (Detail
CONTRACTUAL COMMITMENTS (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of contingent liabilities [line items] | ||
Contractual commitments | $ 726 | $ 820 |
Asset management fee as percent per quarter | 0.3125% | |
Asset management fee, percent | 1.25% | |
Less than 1 year | ||
Disclosure of contingent liabilities [line items] | ||
Contractual capital commitments, maturity, percent | 21.00% | |
1 to 5 years | ||
Disclosure of contingent liabilities [line items] | ||
Contractual capital commitments, maturity, percent | 48.00% | |
Thereafter | ||
Disclosure of contingent liabilities [line items] | ||
Contractual capital commitments, maturity, percent | 31.00% |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) shares in Millions | Mar. 30, 2020USD ($)agreement | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jul. 29, 2020USD ($)shares |
Disclosure of transactions between related parties [line items] | |||||
Asset management fee as percent per quarter | 0.3125% | ||||
Asset management fee, percent | 1.25% | ||||
Credit facility, maximum borrowing capacity | $ 1,000,000,000 | ||||
Due from Brookfield Infrastructure | 1,093,000,000 | $ 0 | |||
Repayment from Brookfield Infrastructure | 15,000,000 | 0 | $ 0 | ||
Partnership units exchange requests | 1,000,000 | ||||
Repayment of borrowings | 887,000,000 | ||||
Exchangeable shares Issued, for settlement of payable | 547,000,000 | ||||
Equivalent demand loan payable, related party | 260,000,000 | ||||
Interest expense, related party transactions | 32,000,000 | 39,000,000 | |||
Amounts payable, related party transactions | 5,000,000 | 2,000,000 | |||
Amounts receivable, related party transactions | 20,000,000 | 7,000,000 | |||
Secondary offering, shares issued (in shares) | shares | 5 | ||||
Secondary offering, proceeds | $ 305,000,000 | ||||
Percentage of issued and outstanding exchangeable shares held by Brookfield | 29.60% | ||||
Senior Unsecured Revolving Credit Facility | |||||
Disclosure of transactions between related parties [line items] | |||||
Number of credit agreements | agreement | 2 | ||||
Borrowings maturity, term | 10 years | ||||
Credit facility, maximum borrowing capacity | $ 1,000,000,000 | ||||
Subsidiary and corporate borrowings | 0 | 0 | |||
Brookfield Infrastructure | |||||
Disclosure of transactions between related parties [line items] | |||||
Demand deposit receivable, related party | $ 1,114,000,000 | ||||
Amounts payable, related party transactions, interest rate | 0.20% | ||||
Repayment of borrowings | $ 129,000,000 | ||||
Service Provider | |||||
Disclosure of transactions between related parties [line items] | |||||
Asset management fee as percent per quarter | 0.3125% | ||||
Asset management fee, percent | 1.25% | ||||
Services received, related party transactions | $ 45,000,000 | 30,000,000 | 30,000,000 | ||
Subsidiary of Common Parent (Brookfield) | Brookfield Office Properties Inc. | |||||
Disclosure of transactions between related parties [line items] | |||||
Services received, related party transactions | 0 | 0 | 0 | ||
Revenue from rendering of services, related party transactions | $ 1,000,000 | $ 1,000,000 | $ 2,000,000 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - Notional Amount of Derivative Positions (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of detailed information about hedging instruments [line items] | ||
Notional amount | $ 272 | $ 447 |
Interest rate swaps and other | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional amount | $ 272 | $ 447 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - Change in Fair Values of Derivative Instruments (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about hedging instruments [line items] | ||
Unrealized Gains on Derivative Financial Assets | $ 0 | |
Unrealized Losses on Derivative Financial Liabilities | 0 | |
Net change | 0 | $ 9 |
Interest rate swaps and other | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Unrealized Gains on Derivative Financial Assets | 0 | |
Unrealized Losses on Derivative Financial Liabilities | 0 | |
Net change | $ 0 | $ 9 |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of detailed information about hedging instruments [line items] | ||
Notional amount | $ 272 | $ 447 |
Financial assets at fair value through profit or loss, category | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional amount | 0 | 172 |
Interest rate swaps, cross currency interest rate swaps and other | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional amount | 272 | 275 |
Inflation linked swap contract | Financial assets at fair value through profit or loss, category | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional amount | $ 0 | $ 172 |
DERIVATIVE FINANCIAL INSTRUME_6
DERIVATIVE FINANCIAL INSTRUMENTS - Notional Amount of Derivative Instruments Fair Value Through Profit or Loss (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of detailed information about hedging instruments [line items] | ||
Notional | $ 272 | $ 447 |
Fair value through profit or loss | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional | 0 | 172 |
Elected for hedge accounting | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional | 272 | 275 |
Less than 1 year | Fair value through profit or loss | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional | 0 | |
Less than 1 year | Elected for hedge accounting | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional | 0 | |
1 to 5 years | Fair value through profit or loss | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional | 0 | |
1 to 5 years | Elected for hedge accounting | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional | 272 | |
Thereafter | Fair value through profit or loss | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional | 0 | |
Thereafter | Elected for hedge accounting | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional | 0 | |
Inflation rate swaps and other | Fair value through profit or loss | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional | 0 | 172 |
Inflation rate swaps and other | Less than 1 year | Fair value through profit or loss | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional | 0 | |
Inflation rate swaps and other | 1 to 5 years | Fair value through profit or loss | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional | 0 | |
Inflation rate swaps and other | Thereafter | Fair value through profit or loss | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional | 0 | |
Interest rate swaps and other | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional | 272 | 447 |
Interest rate swaps and other | Elected for hedge accounting | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional | 272 | $ 275 |
Interest rate swaps and other | Less than 1 year | Elected for hedge accounting | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional | 0 | |
Interest rate swaps and other | 1 to 5 years | Elected for hedge accounting | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional | 272 | |
Interest rate swaps and other | Thereafter | Elected for hedge accounting | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional | $ 0 |
DERIVATIVE FINANCIAL INSTRUME_7
DERIVATIVE FINANCIAL INSTRUMENTS - Hedge Classification (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about hedging instruments [line items] | ||
Notional | $ 272 | $ 447 |
Cash flow hedges | Elected for hedge accounting | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional | 272 | 275 |
Effective Portion | 0 | 5 |
Ineffective Portion | $ 0 | $ 0 |
FINANCIAL RISK MANAGEMENT - Cap
FINANCIAL RISK MANAGEMENT - Capital Structure (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Financial Instruments [Abstract] | ||||
Non-recourse borrowings | $ 3,556 | $ 3,477 | ||
Cash and cash equivalents | (469) | (192) | ||
Net debt | 3,087 | 3,285 | ||
Exchangeable and class B shares | 4,466 | 2,221 | ||
Loans payable to Brookfield Infrastructure | 0 | 1,143 | ||
Loans payable to Brookfield Infrastructure | 131 | 0 | ||
Total equity | (1,424) | (572) | $ 3,277 | $ 3,249 |
Total capital and net debt | $ 6,260 | $ 6,077 | ||
Net debt to capitalization ratio | 49.00% | 54.00% |
FINANCIAL RISK MANAGEMENT - Mat
FINANCIAL RISK MANAGEMENT - Maturity Analysis of Financial Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Accounts payable and other liabilities | $ 416 | $ 241 |
Non-recourse borrowings | 3,563 | 3,486 |
Financial liabilities | 995 | 1,031 |
Exchangeable and class B shares | 4,466 | 2,221 |
Loans payable to Brookfield Infrastructure | 131 | 1,143 |
Interest Expense: | ||
Non-recourse borrowings | 761 | 776 |
Loans payable to Brookfield Infrastructure | 476 | |
Less than 1 year | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Accounts payable and other liabilities | 414 | 240 |
Non-recourse borrowings | 0 | 12 |
Financial liabilities | 995 | 23 |
Exchangeable and class B shares | 4,466 | 2,221 |
Loans payable to Brookfield Infrastructure | 131 | 0 |
Interest Expense: | ||
Non-recourse borrowings | 98 | 84 |
Loans payable to Brookfield Infrastructure | 52 | |
1-2 years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Accounts payable and other liabilities | 2 | 1 |
Non-recourse borrowings | 1,276 | 0 |
Financial liabilities | 0 | 969 |
Exchangeable and class B shares | 0 | 0 |
Loans payable to Brookfield Infrastructure | 0 | 0 |
Interest Expense: | ||
Non-recourse borrowings | 73 | 77 |
Loans payable to Brookfield Infrastructure | 52 | |
2-5 years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Accounts payable and other liabilities | 0 | 0 |
Non-recourse borrowings | 271 | 1,601 |
Financial liabilities | 0 | 39 |
Exchangeable and class B shares | 0 | 0 |
Loans payable to Brookfield Infrastructure | 0 | 61 |
Interest Expense: | ||
Non-recourse borrowings | 195 | 191 |
Loans payable to Brookfield Infrastructure | 155 | |
5+ years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Accounts payable and other liabilities | 0 | 0 |
Non-recourse borrowings | 2,016 | 1,873 |
Financial liabilities | 0 | 0 |
Exchangeable and class B shares | 0 | 0 |
Loans payable to Brookfield Infrastructure | 0 | 1,082 |
Interest Expense: | ||
Non-recourse borrowings | $ 395 | 424 |
Loans payable to Brookfield Infrastructure | $ 217 |
FINANCIAL RISK MANAGEMENT - Sen
FINANCIAL RISK MANAGEMENT - Sensitivity Analysis for Interest Rate Risk (Details) - Interest rate risk - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Impact of 10 bp decrease on net income (loss) | $ 1 | $ 1 | $ 1 |
Impact of 10 bp increase on net income (loss) | (1) | (1) | (1) |
Impact of 10 bp decrease on other comprehensive (loss) income | 0 | 0 | 0 |
Impact of 10 bp increase on other comprehensive (loss) income | $ 0 | $ 0 | $ 0 |
FINANCIAL RISK MANAGEMENT - Cur
FINANCIAL RISK MANAGEMENT - Currency Exposure (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Assets: | ||||
Current Assets | $ 2,010 | $ 586 | ||
Total assets | 10,086 | 9,344 | ||
Liabilities: | ||||
Current Liabilities | 6,197 | 2,760 | ||
Total liabilities | 11,510 | 9,916 | ||
Non-controlling interests | 703 | 1,150 | ||
Net investment attributable to Brookfield Infrastructure | [1] | (2,127) | (1,722) | |
Total | ||||
Assets: | ||||
Current Assets | 917 | 586 | $ 594 | |
Non-current assets | 8,076 | 8,758 | 9,259 | |
Total assets | 8,993 | 9,344 | 9,853 | |
Liabilities: | ||||
Current Liabilities | 1,594 | 536 | 493 | |
Non-current liabilities | 5,313 | 6,013 | 6,083 | |
Total liabilities | 6,907 | 6,549 | 6,576 | |
Non-controlling interests | 703 | 1,150 | 1,623 | |
Net investment attributable to Brookfield Infrastructure | 1,383 | 1,645 | 1,654 | |
GBP | ||||
Assets: | ||||
Current Assets | 249 | 181 | 159 | |
Non-current assets | 4,961 | 5,264 | 4,653 | |
Total assets | 5,210 | 5,445 | 4,812 | |
Liabilities: | ||||
Current Liabilities | 316 | 333 | 294 | |
Non-current liabilities | 3,285 | 3,241 | 2,888 | |
Total liabilities | 3,601 | 3,574 | 3,182 | |
Non-controlling interests | 314 | 367 | 318 | |
Net investment attributable to Brookfield Infrastructure | 1,295 | 1,504 | 1,312 | |
BRL | ||||
Assets: | ||||
Current Assets | 668 | 405 | 435 | |
Non-current assets | 3,115 | 3,494 | 4,606 | |
Total assets | 3,783 | 3,899 | 5,041 | |
Liabilities: | ||||
Current Liabilities | 1,278 | 203 | 199 | |
Non-current liabilities | 2,028 | 2,772 | 3,195 | |
Total liabilities | 3,306 | 2,975 | 3,394 | |
Non-controlling interests | 389 | 783 | 1,305 | |
Net investment attributable to Brookfield Infrastructure | $ 88 | $ 141 | $ 342 | |
[1] | Common equity is attributable to the partnership prior to the special distribution and subsequently as a result of the partnership holding all of the class C shares issued by our company. Please refer to Note 3(b), Basis of Presentation and Significant Accounting Policies, for further details. |
FINANCIAL RISK MANAGEMENT - S_2
FINANCIAL RISK MANAGEMENT - Sensitivity Analysis For Foreign Currency Risk (Details) - Foreign currency risk - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
GBP | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Impact of 10% decrease on net income (loss) | $ (6) | $ (5) | $ 10 |
Impact of 10% increase on net income (loss) | 6 | 5 | (10) |
Impact of 10% decrease on parent equity | (130) | (150) | 131 |
Impact of 10% increase on parent equity | 130 | 150 | (131) |
BRL | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Impact of 10% decrease on net income (loss) | (15) | (12) | 13 |
Impact of 10% increase on net income (loss) | 15 | 12 | (13) |
Impact of 10% decrease on parent equity | (9) | (14) | 34 |
Impact of 10% increase on parent equity | $ 9 | $ 14 | $ (34) |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash Flow Statement [Abstract] | |||
Interest paid | $ 261 | $ 222 | $ 161 |
Income taxes paid | 165 | 135 | 96 |
Changes In Non-cash Working Capital [Abstract] | |||
Accounts receivable | (91) | (71) | (58) |
Accounts payable and other | 126 | 27 | 131 |
Changes in non-cash working capital, net | $ 35 | $ (44) | $ 73 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - AusNet Services Ltd - Brookfield Infrastructure $ in Billions | Feb. 15, 2022USD ($) |
Disclosure of non-adjusting events after reporting period [line items] | |
Effective Ownership Interest (%) | 10.00% |
Consideration transferred, acquisition-date fair value | $ 0.5 |