COVER PAGE
COVER PAGE | 6 Months Ended |
Jun. 30, 2023 | |
Cover [Abstract] | |
Document Type | 6-K |
Entity Registrant Name | BROOKFIELD INFRASTRUCTURE CORPORATION |
Entity Central Index Key | 0001788348 |
Current Fiscal Year End Date | --12-31 |
Document Period End Date | Jun. 30, 2023 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
UNAUDITED INTERIM CONDENSED AND
UNAUDITED INTERIM CONDENSED AND CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and cash equivalents | $ 356 | $ 445 |
Financial assets | 0 | 57 |
Accounts receivable and other | 554 | 499 |
Due from Brookfield Infrastructure | 820 | 566 |
Current assets | 1,730 | 1,567 |
Property, plant and equipment | 5,149 | 4,718 |
Intangible assets | 3,043 | 2,847 |
Investments in associates | 417 | 428 |
Goodwill | 566 | 518 |
Financial assets | 0 | 40 |
Other assets | 26 | 17 |
Deferred income tax asset | 42 | 43 |
Total assets | 10,973 | 10,178 |
Liabilities | ||
Accounts payable and other | 756 | 781 |
Non-recourse borrowings | 247 | 328 |
Financial liabilities | 71 | 72 |
Loans payable to Brookfield Infrastructure | 26 | 26 |
Exchangeable and class B shares | 4,040 | 3,426 |
Current liabilities | 5,140 | 4,633 |
Non-recourse borrowings | 4,810 | 4,249 |
Financial liabilities | 36 | 0 |
Other liabilities | 114 | 119 |
Deferred income tax liability | 1,637 | 1,538 |
Total liabilities | 11,737 | 10,539 |
Equity | ||
Brookfield Infrastructure Partners L.P. | (1,630) | (1,119) |
Non-controlling interest | 866 | 758 |
Total equity | (764) | (361) |
Total liabilities and equity | $ 10,973 | $ 10,178 |
UNAUDITED INTERIM CONDENSED A_2
UNAUDITED INTERIM CONDENSED AND CONSOLIDATED STATEMENTS OF OPERATING RESULTS - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Profit or loss [abstract] | ||||
Revenues | $ 538 | $ 479 | $ 1,035 | $ 940 |
Direct operating costs | (149) | (131) | (296) | (265) |
General and administrative expenses | (17) | (17) | (33) | (37) |
Profit (loss) from operating activities | 372 | 331 | 706 | 638 |
Interest expense | (161) | (143) | (314) | (245) |
Share of earnings (losses) from investments in associates | 3 | 2 | 4 | (4) |
Remeasurement of liability | (301) | 656 | (608) | 259 |
Mark-to-market and foreign currency revaluation | 12 | (19) | 12 | 82 |
Other income | 16 | 14 | 26 | 14 |
(Loss) income before income tax | (59) | 841 | (174) | 744 |
Income tax (expense) recovery | ||||
Current | (89) | (110) | (169) | (200) |
Deferred | (6) | 111 | (6) | 82 |
Net (loss) income | (154) | 842 | (349) | 626 |
Attributable to: | ||||
Brookfield Infrastructure Partners L.P. | (274) | 673 | (575) | 300 |
Non-controlling interest | $ 120 | $ 169 | $ 226 | $ 326 |
UNAUDITED INTERIM CONDENSED A_3
UNAUDITED INTERIM CONDENSED AND CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of comprehensive income [abstract] | ||||
Net (loss) income | $ (154) | $ 842 | $ (349) | $ 626 |
Items that may be reclassified subsequently to profit or loss: | ||||
Foreign currency translation | 81 | (231) | 119 | (146) |
Cash flow hedges | (7) | (1) | (12) | (3) |
Taxes on the above items | (1) | 0 | 5 | 1 |
Share of income (losses) from investments in associates | 13 | (8) | (3) | 4 |
Total other comprehensive income (loss) | 86 | (240) | 109 | (144) |
Comprehensive income (loss) | (68) | 602 | (240) | 482 |
Attributable to: | ||||
Brookfield Infrastructure Partners L.P. | (219) | 507 | (511) | 164 |
Non-controlling interests | $ 151 | $ 95 | $ 271 | $ 318 |
UNAUDITED INTERIM CONDENSED A_4
UNAUDITED INTERIM CONDENSED AND CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Share capital | Share capital Parent | Retained earnings | Ownership changes | Accumulated other comprehensive income | Brookfield Infrastructure Partners L.P. | Non-controlling interest |
Balance as at Dec. 31, 2021 | $ (1,424) | $ 53 | $ (193) | $ (2,379) | $ 392 | $ (2,127) | $ 703 | |
Net (loss) income | 626 | 300 | 300 | 326 | ||||
Other comprehensive loss | (144) | (136) | (136) | (8) | ||||
Comprehensive income (loss) | 482 | 300 | (136) | 164 | 318 | |||
Acquisition of non-controlling interest | (136) | (136) | ||||||
Balance as at Jun. 30, 2022 | (1,078) | $ 53 | 53 | 107 | (2,379) | 256 | (1,963) | 885 |
Balance as at Mar. 31, 2022 | (1,563) | 53 | (566) | (2,379) | 422 | (2,470) | 907 | |
Net (loss) income | 842 | 673 | 673 | 169 | ||||
Other comprehensive loss | (240) | (166) | (166) | (74) | ||||
Comprehensive income (loss) | 602 | 673 | (166) | 507 | 95 | |||
Distributions to non-controlling interest | (117) | (117) | ||||||
Balance as at Jun. 30, 2022 | (1,078) | 53 | $ 53 | 107 | (2,379) | 256 | (1,963) | 885 |
Balance as at Dec. 31, 2022 | (361) | 53 | 901 | (2,379) | 306 | (1,119) | 758 | |
Net (loss) income | (349) | (575) | (575) | 226 | ||||
Other comprehensive loss | 109 | 64 | 64 | 45 | ||||
Comprehensive income (loss) | (240) | (575) | 64 | (511) | 271 | |||
Distributions to non-controlling interest | (163) | (163) | ||||||
Balance as at Jun. 30, 2023 | (764) | 53 | 326 | (2,379) | 370 | (1,630) | 866 | |
Balance as at Mar. 31, 2023 | (648) | 53 | 600 | (2,379) | 315 | (1,411) | 763 | |
Net (loss) income | (154) | (274) | (274) | 120 | ||||
Other comprehensive loss | 86 | 55 | 55 | 31 | ||||
Comprehensive income (loss) | (68) | (274) | 55 | (219) | 151 | |||
Distributions to non-controlling interest | (48) | (48) | ||||||
Balance as at Jun. 30, 2023 | $ (764) | $ 53 | $ 326 | $ (2,379) | $ 370 | $ (1,630) | $ 866 |
UNAUDITED INTERIM CONDENSED A_5
UNAUDITED INTERIM CONDENSED AND CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Operating Activities | ||||
Net (loss) income | $ (154) | $ 842 | $ (349) | $ 626 |
Adjusted for the following items: | ||||
Earnings from investments in associates, net of distributions received | 0 | 15 | (1) | 21 |
Depreciation and amortization expense | 57 | 54 | 112 | 108 |
Mark-to-market and other | (10) | 28 | (5) | (54) |
Remeasurement of exchangeable and class B shares | 301 | (656) | 608 | (259) |
Deferred income tax expense (recovery) | 6 | (111) | 6 | (82) |
Changes in non-cash working capital, net | 65 | 60 | (116) | (5) |
Cash from operating activities | 265 | 232 | 255 | 355 |
Investing Activities | ||||
Investments in associates | 0 | 0 | 0 | (455) |
Purchase of long-lived assets, net of disposals | (134) | (140) | (259) | (253) |
Purchase of financial assets and other | 0 | 0 | (4) | (71) |
Cash used by investing activities | (134) | (140) | (263) | (779) |
Financing Activities | ||||
Distributions to non-controlling interest | (48) | (117) | (163) | (136) |
Proceeds from non-recourse borrowings | 467 | 472 | 770 | 1,046 |
Repayment of non-recourse borrowings | (476) | 0 | (476) | (11) |
Repayment from Brookfield Infrastructure | 44 | 0 | 101 | 595 |
Loans and repayments to Brookfield Infrastructure | (88) | (46) | (337) | (60) |
Settlement of deferred consideration | 0 | (1,037) | 0 | (1,037) |
Cash (used by) from financing activities | (101) | (728) | (105) | 397 |
Cash and cash equivalents | ||||
Change during the period | 30 | (636) | (113) | (27) |
Impact of foreign exchange on cash | 17 | (71) | 24 | 70 |
Balance, beginning of period | 309 | 1,219 | 445 | 469 |
Balance, end of period | $ 356 | $ 512 | $ 356 | $ 512 |
UNAUDITED INTERIM CONDENSED A_6
UNAUDITED INTERIM CONDENSED AND CONSOLIDATED STATEMENTS OF OPERATING RESULTS (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Profit or loss [abstract] | ||||
Depreciation and amortisation expense | $ (57) | $ (54) | $ (112) | $ (108) |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF OUR COMPANY | 6 Months Ended |
Jun. 30, 2023 | |
Corporate information and statement of IFRS compliance [abstract] | |
ORGANIZATION AND DESCRIPTION OF OUR COMPANY | ORGANIZATION AND DESCRIPTION OF OUR COMPANY Brookfield Infrastructure Corporation Brookfield Infrastructure Corporation (our “company”) and its subsidiaries, own regulated utility investments in Brazil, Australia 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 Corporation, formerly Brookfield Asset Management Inc., is our company’s ultimate parent. Brookfield Corporation and any affiliate of Brookfield Corporation, other than our group, are referred to collectively as “Brookfield” and, unless the context otherwise requires, includes Brookfield Asset Management Ltd. 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. |
MATERIAL ACCOUNTING POLICY INFO
MATERIAL ACCOUNTING POLICY INFORMATION | 6 Months Ended |
Jun. 30, 2023 | |
Corporate information and statement of IFRS compliance [abstract] | |
MATERIAL ACCOUNTING POLICY INFORMATION | MATERIAL ACCOUNTING POLICY INFORMATION a) Statement of Compliance These unaudited interim condensed and consolidated financial statements (“interim financial statements”) of our company and its subsidiaries have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting (“IAS 34”) as issued by the International Accounting Standards Board (“IASB”) and using the accounting policies our company applied in its consolidated financial statements as of and for the year-ended December 31, 2022 (“consolidated financial statements”). The accounting policies that our company applied in its consolidated financial statements are disclosed in Note 3 of such financial statements, of which reference should be made in reading these interim financial statements. These interim financial statements were authorized for issuance by the Board of Directors of our company on August 11, 2023. b) Significant Accounting Judgments and Key Sources of Estimation Uncertainty In preparing our interim financial statements, we make judgments in applying our accounting policies. The areas of judgment are consistent with those reported in our consolidated financial statements. As disclosed in our consolidated financial statements, our company uses significant assumptions and estimates to determine the fair value of our property, plant and equipment and 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 an intangible asset has been allocated. In addition, the impairment assessment of investments in associates requires estimation of the recoverable amount of the investment. c) Recently adopted accounting standards Our company applied, for the first time, certain new applicable standards that became effective January 1, 2023. The impact of these amendments on our company’s accounting policies are as follows: Amendments to IAS 1 – Making Materiality Judgements - Disclosure of Accounting Policies Our company adopted Amendments to IAS 1 - Making Materiality Judgements - Disclosure of Accounting Policies , effective January 1, 2023. The amendments change the requirements in IAS 1 with regard to disclosure of accounting policies. The amendments replace all instances of the term ‘significant accounting policies’ with ‘material accounting policy information’. Accounting policy information is material if, when considered together with other information included in an entity’s financial statements, it can reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements. The supporting paragraphs in IAS 1 are also amended to clarify that accounting policy information that relates to immaterial transactions, other events or conditions is immaterial and need not be disclosed. Accounting policy information may be material because of the nature of the related transactions, other events or conditions, even if the amounts are immaterial. However, not all accounting policy information relating to material transactions, other events or conditions is itself material. The adoption did not have a significant impact on our company’s financial reporting. International Tax Reform - Pillar Two Model Rules (Amendments to IAS 12) In May 2023, the IASB issued amendments to IAS 12 “Income Taxes” to give entities temporary mandatory relief from accounting for deferred taxes arising from Organization for Economic Co-operation and Development’s (“OECD”) international tax reform. The amendments are effective immediately upon their issue and retrospectively in accordance with IAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors” except for some targeted disclosure requirements which become effective for annual reporting periods beginning on or after January 1, 2023. Our company has applied the temporary exception to recognizing and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2023 | |
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 unaudited interim condensed and consolidated 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 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 June 30, 2023: US$ MILLIONS Financial Instrument Classification MEASUREMENT BASIS Fair value through profit or loss Amortized cost Total Financial assets Cash and cash equivalents $ — $ 356 $ 356 Accounts receivable and other (current and non-current) — 479 479 Due from Brookfield Infrastructure — 820 820 Total $ — $ 1,655 $ 1,655 Financial liabilities Accounts payable and other (current and non-current) $ — $ 542 $ 542 Non-recourse borrowings (current and non-current) — 5,057 5,057 Exchangeable and class B shares (1) — 4,040 4,040 Financial liabilities (current and non-current) (2) 107 — 107 Loans payable to Brookfield Infrastructure — 26 26 Total $ 107 $ 9,665 $ 9,772 1. Class C shares are also classified as financial liabilities due to their cash redemption feature. However, the class C shares meet certain qualifying criteria and are presented as equity. See Note 12, Equity. 2. Derivative instruments which are elected for hedge accounting totaling $nil are included in financial assets and $107 million are included in financial liabilities. The following table provides the allocation of financial instruments and their associated financial instrument classifications as at December 31, 2022: US$ MILLIONS Financial Instrument Classification MEASUREMENT BASIS Fair value through profit or loss Amortized cost Total Financial assets Cash and cash equivalents $ — $ 445 $ 445 Accounts receivable and other (current and non-current) — 441 441 Financial assets (current and non-current) (1) 97 — 97 Due from Brookfield Infrastructure — 566 566 Total $ 97 $ 1,452 $ 1,549 Financial liabilities Accounts payable and other (current and non-current) $ — $ 589 $ 589 Non-recourse borrowings (current and non-current) — 4,577 4,577 Exchangeable and class B shares (2) — 3,426 3,426 Financial liabilities (1) 72 — 72 Loans payable to Brookfield Infrastructure — 26 26 Total $ 72 $ 8,618 $ 8,690 1. Derivative instruments which are elected for hedge accounting totaling $97 million are included in financial assets and $72 million are included in financial liabilities. 2. Class C shares are also classified as financial liabilities due to their cash redemption feature. However, the class C shares meet certain qualifying criteria and are presented as equity. See Note 12, Equity. The following table provides the carrying values and fair values of financial instruments as at June 30, 2023 and December 31, 2022: June 30, 2023 December 31, 2022 US$ MILLIONS Carrying Value Fair Value Carrying Value Fair Value Financial assets Cash and cash equivalents $ 356 $ 356 $ 445 $ 445 Accounts receivable and other 479 479 441 441 Financial assets (current and non-current) — — 97 97 Due from Brookfield Infrastructure 820 820 566 566 Total $ 1,655 $ 1,655 $ 1,549 $ 1,549 Financial liabilities Accounts payable and other (current and non-current) $ 542 $ 542 $ 589 $ 589 Non-recourse borrowings (current and non-current) (1) 5,057 4,570 4,577 4,303 Exchangeable and class B shares (2) 4,040 4,040 3,426 3,426 Financial liabilities (current and non-current) 107 107 72 72 Loans payable to Brookfield Infrastructure 26 26 26 26 Total $ 9,772 $ 9,285 $ 8,690 $ 8,416 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. However, the class C shares meet certain qualifying criteria and are presented as equity. 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 three and six-month period ended June 30, 2023, pre-tax net unrealized losses of $7 million and $12 million (2022: losses of $1 million and $3 million, respectively), were recorded in other comprehensive income for the effective portion of the cash flow hedges. As of June 30, 2023, there was a net derivative liability balance of $107 million relating to derivative contracts designated as cash flow hedges (December 31, 2022: asset balance of $25 million). Fair Value Hierarchical Levels—Financial Instruments Fair value hierarchical levels are directly determined by the amount of subjectivity associated with the valuation inputs of these assets and liabilities, and are as follows: Level 1 — Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 — Inputs other than quoted prices included in Level 1 are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. Fair valued assets and liabilities that are included in this category are primarily certain derivative contracts and other financial assets carried at fair value in an inactive market. Level 3 — Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to determining the estimate. Fair valued assets and liabilities that are included in this category are interest rate swap contracts, derivative contracts, certain equity securities carried at fair value which are not traded in an active market and the non-controlling interest’s share of net assets of limited life funds. The fair value of our company’s financial assets and financial liabilities are measured at fair value on a recurring basis. The following table summarizes the valuation techniques and significant inputs for our company’ financial assets and financial liabilities: US$ MILLIONS Fair value June 30, 2023 December 31, 2022 Interest rate swaps & other Level 2 (1) Financial assets $ — $ 97 Financial liabilities 107 72 1. Valuation technique: Discounted cash flow. Future cash flows are estimated based on forward exchange and interest rates (from observable forward exchange and interest 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. During the six-month period ended June 30, 2023, no transfers were made between level 1 and 2 or level 2 and 3. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 6 Months Ended |
Jun. 30, 2023 | |
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, 2022 $ 3,935 $ (673) $ 1,541 $ 4,803 Additions, net of disposals 435 5 — 440 Non-cash additions 7 (4) — 3 Depreciation expense — (110) — (110) Fair value adjustments — — 100 100 Net foreign currency exchange differences (430) 75 (163) (518) Balance at December 31, 2022 $ 3,947 $ (707) $ 1,478 $ 4,718 Additions, net of disposals 236 6 — 242 Non-cash additions 4 (3) — 1 Depreciation expense — (59) — (59) Net foreign currency exchange differences 209 (38) 76 247 Balance at June 30, 2023 $ 4,396 $ (801) $ 1,554 $ 5,149 Property, plant and equipment of our company is predominantly comprised of last mile utility connections at our U.K. regulated distribution operation which provide 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. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2023 | |
Intangible Assets [Abstract] | |
INTANGIBLE ASSETS | INTANGIBLE ASSETS As of US$ MILLIONS June 30, 2023 December 31, 2022 Cost $ 3,943 $ 3,629 Accumulated amortization (900) (782) Total $ 3,043 $ 2,847 Intangible assets are allocated to the following cash generating units: As of US$ MILLIONS June 30, 2023 December 31, 2022 Brazilian regulated gas transmission operation $ 3,014 $ 2,816 U.K. regulated distribution operation 29 31 Total $ 3,043 $ 2,847 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. 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, our intangible assets remain largely unaffected. 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: US$ MILLIONS For the six-month period ended June 30, 2023 For the 12 month period ended December 31, 2022 Cost at beginning of the period $ 3,629 $ 3,332 Additions, net of disposals 17 81 Foreign currency translation 297 216 Ending Balance $ 3,943 $ 3,629 The following table presents the accumulated amortization for our company’s intangible assets: US$ MILLIONS For the six-month period ended June 30, 2023 For the 12 month period ended December 31, 2022 Accumulated amortization at beginning of the period $ (782) $ (645) Amortization (53) (101) Foreign currency translation (65) (36) Ending Balance $ (900) $ (782) |
INVESTMENTS IN ASSOCIATES
INVESTMENTS IN ASSOCIATES | 6 Months Ended |
Jun. 30, 2023 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract] | |
INVESTMENTS IN ASSOCIATES | INVESTMENTS IN ASSOCIATES The following table represents the change in balance of investments in associates: US$ MILLIONS For the six-month period For the 12 month period ended December 31, 2022 Balance at the beginning of the period $ 428 $ — Acquisitions — 455 Share of earnings for the period 4 4 Foreign currency translation and other (9) (25) Share of other comprehensive (loss) income (3) 27 Distributions (3) (33) Ending Balance $ 417 $ 428 In February 2022, our company acquired an approximate 8% interest in an Australian regulated utility, AusNet Services Ltd (“AusNet”) for $455 million. Based on our ownership interest and governance rights retained, our company equity accounts for the entity. The following tables summarize the aggregate balances of investments in associates on a 100% basis: As of US$ MILLIONS June 30, 2023 December 31, 2022 Financial position: Total assets $ 13,384 $ 13,541 Total liabilities (8,001) (8,018) Net assets $ 5,383 $ 5,523 For the three-month period ended June 30 For the six-month period ended June 30 US$ MILLIONS 2023 2022 2023 2022 Financial performance: Total revenue $ 391 $ 361 $ 721 $ 521 Total net income for the period (1) 33 36 52 (52) Our company’s share of net income $ 3 $ 2 $ 4 $ (4) 1. Total net income for the six-month period ended June 30, 2022 includes acquisition-related transaction costs of $105 million. |
GOODWILL
GOODWILL | 6 Months Ended |
Jun. 30, 2023 | |
Disclosure of reconciliation of changes in goodwill [abstract] | |
GOODWILL | GOODWILL The following table presents the carrying amount for our company’s goodwill: As of US$ MILLIONS June 30, 2023 December 31, 2022 Balance at beginning of the period $ 518 $ 489 Foreign currency translation and other 48 29 Ending Balance $ 566 $ 518 |
BORROWINGS
BORROWINGS | 6 Months Ended |
Jun. 30, 2023 | |
Disclosure of borrowings [Abstract] | |
BORROWINGS | BORROWINGS Non-Recourse Borrowings As of US$ MILLIONS June 30, 2023 December 31, 2022 Current $ 247 $ 328 Non-current 4,810 4,249 Total $ 5,057 $ 4,577 Non-recourse borrowings have increased by $480 million since year-end. The increase is primarily attributable to obtaining $250 million of secured, non-recourse financing, additional borrowings of $45 million at our U.K. regulated distribution business and our Brazilian regulated gas transmission business, along with the impact of foreign exchange as the foreign currencies underlying non-recourse borrowings appreciated relative to the U.S. dollar. Refer to Note 13, Related Party Transactions |
FINANCIAL LIABILITIES
FINANCIAL LIABILITIES | 6 Months Ended |
Jun. 30, 2023 | |
Financial Instruments [Abstract] | |
FINANCIAL LIABILITIES | FINANCIAL LIABILITIES As of US$ MILLIONS June 30, 2023 December 31, 2022 Current: Interest rate swaps $ 71 $ 72 Total current financial liabilities $ 71 $ 72 Non-current: Interest rate swaps $ 36 $ — Total non-current financial liabilities $ 36 $ — 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 of the partnership. In August 2021, the partnership acquired a controlling interest in Inter Pipeline Limited (“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 six-month period ended June 30, 2023, our company issued 121,970 exchangeable shares in connection with exchange requests from BIPC Exchange LP unit holders. Upon issuance, the exchangeable shares were recognized at their fair value. During the six-month period ended June 30, 2023, our shareholders exchanged 5,811 exchangeable shares for an equal number of partnership units. As at June 30, 2023, the exchangeable and class B shares were remeasured to reflect the NYSE closing price of one unit, $36.50 per share. Remeasurement gains or losses associated with these shares are recorded in the unaudited interim condensed and consolidated statements of operating results. Our company declared and paid dividends of $43 million and $85 million on its exchangeable shares outstanding during the three and six-month period ended June 30, 2023, respectively (2022: $39 million and $79 million). Dividends paid on exchangeable shares are presented as interest expense in the unaudited interim condensed and consolidated statements of operating results. On June 10, 2022, our group completed a three-for-two split of partnership units, BIPC Exchangeable LP Units, BIP Exchange LP units, exchangeable shares, class B shares and class C shares, by way of a subdivision whereby unitholders/shareholders received an additional one-half of a unit/share for each unit/share held. All historical units/shares and per unit/share disclosures have been adjusted to effect for the change in units/shares due to the splits. 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, 2022 110,157,540 2 $ 4,466 Share issuance - BIPC exchangeable LP unit exchanges 427,643 — 19 Shares exchanged to units (17,512) — (1) Remeasurement of liability — — (1,058) Balance at December 31, 2022 110,567,671 2 $ 3,426 Share issuance - BIPC exchangeable LP unit exchanges 121,970 — 6 Shares exchanged to units (5,811) — — Remeasurement of liability — — 608 Balance as at June 30, 2023 110,683,830 2 $ 4,040 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 12, Equity , for further details related to class C shares. |
REVENUE
REVENUE | 6 Months Ended |
Jun. 30, 2023 | |
Revenue [abstract] | |
REVENUE | REVENUE 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 three-month For the six-month US$ MILLIONS 2023 2022 2023 2022 Gas Transmission $ 379 $ 343 $ 721 $ 663 Distribution 96 86 192 177 Connections 53 45 97 85 Other 10 5 25 15 Total $ 538 $ 479 $ 1,035 $ 940 During the three and six-month period ended June 30, 2023, revenues benefited from inflationary tariff increases and capital commissioned into rate base. b) Revenues from external customers The following table disaggregates revenues by geographical region: For the three-month For the six-month US$ MILLIONS 2023 2022 2023 2022 Brazil $ 379 $ 343 $ 721 $ 663 United Kingdom 159 136 314 277 Total $ 538 $ 479 $ 1,035 $ 940 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 three and six-month period ended June 30, 2023, revenue generated from this customer was $379 million and $721 million, respectively (2022: $343 million and $663 million). Our company has completed a review of the credit risk of key counterparties. Based on their liquidity position, business performance, and aging of our accounts receivable, we do not have any significant changes in expected credit losses at this time. |
DIRECT OPERATING COSTS
DIRECT OPERATING COSTS | 6 Months Ended |
Jun. 30, 2023 | |
Direct Operating Costs [Abstract] | |
DIRECT OPERATING COSTS | DIRECT OPERATING COSTS Direct operating costs are costs incurred to earn revenue and include all attributable expenses. The following table lists direct operating costs for the three and six-month periods ended June 30, 2023, and 2022. For the three-month For the six-month US$ MILLIONS 2023 2022 2023 2022 Depreciation and amortization $ 57 $ 54 $ 112 $ 108 Transportation and distribution 48 40 97 80 Operations and maintenance 18 14 36 29 Compensation 18 15 35 30 Cost of inventory 1 1 3 4 Other 7 7 13 14 Total $ 149 $ 131 $ 296 $ 265 |
EQUITY
EQUITY | 6 Months Ended |
Jun. 30, 2023 | |
Equity [abstract] | |
EQUITY | EQUITY Our company’s equity is comprised of the following shares: Class C shares Shares outstanding (Shares) (1) Share capital Balance at January 1, 2022 2,103,677 $ 53 Share issuance — — Balance at December 31, 2022 and June 30, 2023 2,103,677 $ 53 1. Shares outstanding have been adjusted to effect for the change in shares due to the stock split. See Note 9, Financial Liabilities. Our company’s share capital is comprised of exchangeable shares, class B shares and 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 9 , Financial Liabilities , for further details related to exchangeable and class B shares. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2023 | |
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 subsidiaries of Brookfield. 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. The base management fee attributable to our company was $16 million and $31 million for the three and six-month periods ended June 30, 2023, respectively (2022: $16 million and $34 million, respectively) and has been recorded as part of general and administrative expenses in the interim financial statements. 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 three and six-month periods ended June 30, 2023, revenues of less than $1 million were generated (2022: less than $1 million) and $nil expenses were incurred (2022: $nil). Our company is party to 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 SOFR, 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 of June 30, 2023, $nil (December 31, 2022: $nil) was drawn on the credit facilities under the credit agreements with Brookfield Infrastructure. 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 (5) days immediately preceding the date of the call, and (ii) in the case of a subscription for preferred shares, $25.00. The equity commitment will be reduced permanently by the amount so called. As at June 30, 2023, $nil (December 31, 2022: $nil) was called on the equity commitment. 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. In addition, 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. As at June 30, 2023, the balance outstanding on our deposit with Brookfield Infrastructure was $570 million (December 31, 2022: $566 million). As at June 30, 2023, the demand deposit payable to Brookfield Infrastructure was $26 million (December 31, 2022: $26 million). The deposit arrangements accrue interest at 0.2% per annum. Interest on each deposit during the three and six-month periods ended June 30, 2023 was less than $1 million (2022: less than $1 million). In addition, on March 28, 2023, our company entered into a loan agreement (as lender) with Brookfield Infrastructure for $250 million. The loan is presented as amounts due from Brookfield Infrastructure on the unaudited interim and condensed consolidated statements of financial position and accrues interest at SOFR plus 200 basis points per annum with a maturity date of March 27, 2024. Interest accrued during the three and six-month periods ended June 30, 2023 was $4 million. On March 28, 2023, a subsidiary of our company entered into a loan agreement with an affiliate of Brookfield for total proceeds of $250 million. This loan is non-recourse to our company and is presented as non-recourse borrowings on the unaudited interim and condensed consolidated statements of financial position and accrues interest at SOFR plus 200 basis points per annum with a maturity date of March 27, 2024. Interest accrued during the three and six-month periods ended June 30, 2023 was $4 million. As at June 30, 2023, our company had accounts payable of $9 million (December 31, 2022: $6 million) to subsidiaries of Brookfield Infrastructure and accounts receivable of $nil (December 31, 2022: $10 million) from subsidiaries of Brookfield Infrastructure. On September 23, 2022, our company sold a financial asset to the partnership for fair market value consideration of $66 million. Our company recognized a loss on disposal of $2 million in the consolidated statement of operating results for the year ended December 31, 2022. On August 3, 2023, our company agreed to the sale of its 7.9% effective interest in its Australian regulated utility operation to an affiliate of Brookfield for net proceeds of approximately $450 million. The sale price was based on a fair value as determined by an independent valuation. The transaction was approved by the Limited Partners Advisory Committee (“LPAC”) of the acquirer and is expected to close within the third quarter of 2023. |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 6 Months Ended |
Jun. 30, 2023 | |
Cash Flow Statement [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION For the three-month For the six-month US$ MILLIONS 2023 2022 2023 2022 Interest paid $ 129 $ 136 $ 289 $ 203 Income taxes paid $ 40 $ 32 $ 282 $ 242 Amounts paid and received for interest were reflected as operating cash flows in the unaudited interim condensed and consolidated statements of cash flows. Interest paid is net of debt related hedges and includes dividends paid on our exchangeable shares classified as liabilities. Amounts paid for income taxes were reflected as either operating cash flows or investing cash flows in the unaudited interim condensed and consolidated statements of cash flows depending upon the nature of the underlying transaction. Details of “Changes in non-cash working capital, net” on the unaudited interim condensed and consolidated statements of cash flows are as follows: For the three-month For the six-month US$ MILLIONS 2023 2022 2023 2022 Accounts receivable $ (15) $ (25) $ (25) $ (44) Accounts payable and other 80 85 (91) 39 Changes in non-cash working capital, net $ 65 $ 60 $ (116) $ (5) |
MATERIAL ACCOUNTING POLICY IN_2
MATERIAL ACCOUNTING POLICY INFORMATION (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Corporate information and statement of IFRS compliance [abstract] | |
Statement of Compliance | Statement of Compliance These unaudited interim condensed and consolidated financial statements (“interim financial statements”) of our company and its subsidiaries have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting (“IAS 34”) as issued by the International Accounting Standards Board (“IASB”) and using the accounting policies our company applied in its consolidated financial statements as of and for the year-ended December 31, 2022 (“consolidated financial statements”). The accounting policies that our company applied in its consolidated financial statements are disclosed in Note 3 of such financial statements, of which reference should be made in reading these interim financial statements. These interim financial statements were authorized for issuance by the Board of Directors of our company on August 11, 2023. |
Significant Accounting Judgments and Key Sources of Estimation Uncertainty | Significant Accounting Judgments and Key Sources of Estimation Uncertainty In preparing our interim financial statements, we make judgments in applying our accounting policies. The areas of judgment are consistent with those reported in our consolidated financial statements. As disclosed in our consolidated financial statements, our company uses significant assumptions and estimates to determine the fair value of our property, plant and equipment and 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 an intangible asset has been allocated. In addition, the impairment assessment of investments in associates requires estimation of the recoverable amount of the investment. |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Measurement [Abstract] | |
Disclosure of classification of financial assets | The following table provides the allocation of financial instruments and their associated financial instrument classifications as at June 30, 2023: US$ MILLIONS Financial Instrument Classification MEASUREMENT BASIS Fair value through profit or loss Amortized cost Total Financial assets Cash and cash equivalents $ — $ 356 $ 356 Accounts receivable and other (current and non-current) — 479 479 Due from Brookfield Infrastructure — 820 820 Total $ — $ 1,655 $ 1,655 Financial liabilities Accounts payable and other (current and non-current) $ — $ 542 $ 542 Non-recourse borrowings (current and non-current) — 5,057 5,057 Exchangeable and class B shares (1) — 4,040 4,040 Financial liabilities (current and non-current) (2) 107 — 107 Loans payable to Brookfield Infrastructure — 26 26 Total $ 107 $ 9,665 $ 9,772 1. Class C shares are also classified as financial liabilities due to their cash redemption feature. However, the class C shares meet certain qualifying criteria and are presented as equity. See Note 12, Equity. 2. Derivative instruments which are elected for hedge accounting totaling $nil are included in financial assets and $107 million are included in financial liabilities. The following table provides the allocation of financial instruments and their associated financial instrument classifications as at December 31, 2022: US$ MILLIONS Financial Instrument Classification MEASUREMENT BASIS Fair value through profit or loss Amortized cost Total Financial assets Cash and cash equivalents $ — $ 445 $ 445 Accounts receivable and other (current and non-current) — 441 441 Financial assets (current and non-current) (1) 97 — 97 Due from Brookfield Infrastructure — 566 566 Total $ 97 $ 1,452 $ 1,549 Financial liabilities Accounts payable and other (current and non-current) $ — $ 589 $ 589 Non-recourse borrowings (current and non-current) — 4,577 4,577 Exchangeable and class B shares (2) — 3,426 3,426 Financial liabilities (1) 72 — 72 Loans payable to Brookfield Infrastructure — 26 26 Total $ 72 $ 8,618 $ 8,690 1. Derivative instruments which are elected for hedge accounting totaling $97 million are included in financial assets and $72 million are included in financial liabilities. 2. Class C shares are also classified as financial liabilities due to their cash redemption feature. However, the class C shares meet certain qualifying criteria and are presented as equity. See Note 12, Equity. |
Disclosure of classification of financial liabilities | The following table provides the allocation of financial instruments and their associated financial instrument classifications as at June 30, 2023: US$ MILLIONS Financial Instrument Classification MEASUREMENT BASIS Fair value through profit or loss Amortized cost Total Financial assets Cash and cash equivalents $ — $ 356 $ 356 Accounts receivable and other (current and non-current) — 479 479 Due from Brookfield Infrastructure — 820 820 Total $ — $ 1,655 $ 1,655 Financial liabilities Accounts payable and other (current and non-current) $ — $ 542 $ 542 Non-recourse borrowings (current and non-current) — 5,057 5,057 Exchangeable and class B shares (1) — 4,040 4,040 Financial liabilities (current and non-current) (2) 107 — 107 Loans payable to Brookfield Infrastructure — 26 26 Total $ 107 $ 9,665 $ 9,772 1. Class C shares are also classified as financial liabilities due to their cash redemption feature. However, the class C shares meet certain qualifying criteria and are presented as equity. See Note 12, Equity. 2. Derivative instruments which are elected for hedge accounting totaling $nil are included in financial assets and $107 million are included in financial liabilities. The following table provides the allocation of financial instruments and their associated financial instrument classifications as at December 31, 2022: US$ MILLIONS Financial Instrument Classification MEASUREMENT BASIS Fair value through profit or loss Amortized cost Total Financial assets Cash and cash equivalents $ — $ 445 $ 445 Accounts receivable and other (current and non-current) — 441 441 Financial assets (current and non-current) (1) 97 — 97 Due from Brookfield Infrastructure — 566 566 Total $ 97 $ 1,452 $ 1,549 Financial liabilities Accounts payable and other (current and non-current) $ — $ 589 $ 589 Non-recourse borrowings (current and non-current) — 4,577 4,577 Exchangeable and class B shares (2) — 3,426 3,426 Financial liabilities (1) 72 — 72 Loans payable to Brookfield Infrastructure — 26 26 Total $ 72 $ 8,618 $ 8,690 1. Derivative instruments which are elected for hedge accounting totaling $97 million are included in financial assets and $72 million are included in financial liabilities. 2. Class C shares are also classified as financial liabilities due to their cash redemption feature. However, the class C shares meet certain qualifying criteria and are presented as equity. See Note 12, Equity. |
Carrying and fair values of financial assets | The following table provides the carrying values and fair values of financial instruments as at June 30, 2023 and December 31, 2022: June 30, 2023 December 31, 2022 US$ MILLIONS Carrying Value Fair Value Carrying Value Fair Value Financial assets Cash and cash equivalents $ 356 $ 356 $ 445 $ 445 Accounts receivable and other 479 479 441 441 Financial assets (current and non-current) — — 97 97 Due from Brookfield Infrastructure 820 820 566 566 Total $ 1,655 $ 1,655 $ 1,549 $ 1,549 Financial liabilities Accounts payable and other (current and non-current) $ 542 $ 542 $ 589 $ 589 Non-recourse borrowings (current and non-current) (1) 5,057 4,570 4,577 4,303 Exchangeable and class B shares (2) 4,040 4,040 3,426 3,426 Financial liabilities (current and non-current) 107 107 72 72 Loans payable to Brookfield Infrastructure 26 26 26 26 Total $ 9,772 $ 9,285 $ 8,690 $ 8,416 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. However, the class C shares meet certain qualifying criteria and are presented as equity. US$ MILLIONS Fair value June 30, 2023 December 31, 2022 Interest rate swaps & other Level 2 (1) Financial assets $ — $ 97 Financial liabilities 107 72 1. Valuation technique: Discounted cash flow. Future cash flows are estimated based on forward exchange and interest rates (from observable forward exchange and interest 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 June 30, 2023 and December 31, 2022: June 30, 2023 December 31, 2022 US$ MILLIONS Carrying Value Fair Value Carrying Value Fair Value Financial assets Cash and cash equivalents $ 356 $ 356 $ 445 $ 445 Accounts receivable and other 479 479 441 441 Financial assets (current and non-current) — — 97 97 Due from Brookfield Infrastructure 820 820 566 566 Total $ 1,655 $ 1,655 $ 1,549 $ 1,549 Financial liabilities Accounts payable and other (current and non-current) $ 542 $ 542 $ 589 $ 589 Non-recourse borrowings (current and non-current) (1) 5,057 4,570 4,577 4,303 Exchangeable and class B shares (2) 4,040 4,040 3,426 3,426 Financial liabilities (current and non-current) 107 107 72 72 Loans payable to Brookfield Infrastructure 26 26 26 26 Total $ 9,772 $ 9,285 $ 8,690 $ 8,416 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. However, the class C shares meet certain qualifying criteria and are presented as equity. US$ MILLIONS Fair value June 30, 2023 December 31, 2022 Interest rate swaps & other Level 2 (1) Financial assets $ — $ 97 Financial liabilities 107 72 1. Valuation technique: Discounted cash flow. Future cash flows are estimated based on forward exchange and interest rates (from observable forward exchange and interest 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. |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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, 2022 $ 3,935 $ (673) $ 1,541 $ 4,803 Additions, net of disposals 435 5 — 440 Non-cash additions 7 (4) — 3 Depreciation expense — (110) — (110) Fair value adjustments — — 100 100 Net foreign currency exchange differences (430) 75 (163) (518) Balance at December 31, 2022 $ 3,947 $ (707) $ 1,478 $ 4,718 Additions, net of disposals 236 6 — 242 Non-cash additions 4 (3) — 1 Depreciation expense — (59) — (59) Net foreign currency exchange differences 209 (38) 76 247 Balance at June 30, 2023 $ 4,396 $ (801) $ 1,554 $ 5,149 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Intangible Assets [Abstract] | |
Disclosure of reconciliation of changes in intangible assets and goodwill | As of US$ MILLIONS June 30, 2023 December 31, 2022 Cost $ 3,943 $ 3,629 Accumulated amortization (900) (782) Total $ 3,043 $ 2,847 The following table presents the change in the cost balance of intangible assets: US$ MILLIONS For the six-month period ended June 30, 2023 For the 12 month period ended December 31, 2022 Cost at beginning of the period $ 3,629 $ 3,332 Additions, net of disposals 17 81 Foreign currency translation 297 216 Ending Balance $ 3,943 $ 3,629 The following table presents the accumulated amortization for our company’s intangible assets: US$ MILLIONS For the six-month period ended June 30, 2023 For the 12 month period ended December 31, 2022 Accumulated amortization at beginning of the period $ (782) $ (645) Amortization (53) (101) Foreign currency translation (65) (36) Ending Balance $ (900) $ (782) |
Disclosure of detailed information about intangible assets | Intangible assets are allocated to the following cash generating units: As of US$ MILLIONS June 30, 2023 December 31, 2022 Brazilian regulated gas transmission operation $ 3,014 $ 2,816 U.K. regulated distribution operation 29 31 Total $ 3,043 $ 2,847 |
INVESTMENTS IN ASSOCIATES (Tabl
INVESTMENTS IN ASSOCIATES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Change in balance of investment | The following table represents the change in balance of investments in associates: US$ MILLIONS For the six-month period For the 12 month period ended December 31, 2022 Balance at the beginning of the period $ 428 $ — Acquisitions — 455 Share of earnings for the period 4 4 Foreign currency translation and other (9) (25) Share of other comprehensive (loss) income (3) 27 Distributions (3) (33) Ending Balance $ 417 $ 428 |
Aggregate balances of investments in associates | The following tables summarize the aggregate balances of investments in associates on a 100% basis: As of US$ MILLIONS June 30, 2023 December 31, 2022 Financial position: Total assets $ 13,384 $ 13,541 Total liabilities (8,001) (8,018) Net assets $ 5,383 $ 5,523 For the three-month period ended June 30 For the six-month period ended June 30 US$ MILLIONS 2023 2022 2023 2022 Financial performance: Total revenue $ 391 $ 361 $ 721 $ 521 Total net income for the period (1) 33 36 52 (52) Our company’s share of net income $ 3 $ 2 $ 4 $ (4) 1. Total net income for the six-month period ended June 30, 2022 includes acquisition-related transaction costs of $105 million. |
GOODWILL (Tables)
GOODWILL (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Disclosure of reconciliation of changes in goodwill [abstract] | |
Disclosure of goodwill | The following table presents the carrying amount for our company’s goodwill: As of US$ MILLIONS June 30, 2023 December 31, 2022 Balance at beginning of the period $ 518 $ 489 Foreign currency translation and other 48 29 Ending Balance $ 566 $ 518 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Disclosure of borrowings [Abstract] | |
Disclosure of detailed information about borrowings | As of US$ MILLIONS June 30, 2023 December 31, 2022 Current $ 247 $ 328 Non-current 4,810 4,249 Total $ 5,057 $ 4,577 |
FINANCIAL LIABILTIES (Tables)
FINANCIAL LIABILTIES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Financial Instruments [Abstract] | |
Disclosure of financial liabilities | As of US$ MILLIONS June 30, 2023 December 31, 2022 Current: Interest rate swaps $ 71 $ 72 Total current financial liabilities $ 71 $ 72 Non-current: Interest rate swaps $ 36 $ — Total non-current financial liabilities $ 36 $ — 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, 2022 110,157,540 2 $ 4,466 Share issuance - BIPC exchangeable LP unit exchanges 427,643 — 19 Shares exchanged to units (17,512) — (1) Remeasurement of liability — — (1,058) Balance at December 31, 2022 110,567,671 2 $ 3,426 Share issuance - BIPC exchangeable LP unit exchanges 121,970 — 6 Shares exchanged to units (5,811) — — Remeasurement of liability — — 608 Balance as at June 30, 2023 110,683,830 2 $ 4,040 |
REVENUE (Tables)
REVENUE (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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 three-month For the six-month US$ MILLIONS 2023 2022 2023 2022 Gas Transmission $ 379 $ 343 $ 721 $ 663 Distribution 96 86 192 177 Connections 53 45 97 85 Other 10 5 25 15 Total $ 538 $ 479 $ 1,035 $ 940 The following table disaggregates revenues by geographical region: For the three-month For the six-month US$ MILLIONS 2023 2022 2023 2022 Brazil $ 379 $ 343 $ 721 $ 663 United Kingdom 159 136 314 277 Total $ 538 $ 479 $ 1,035 $ 940 |
DIRECT OPERATING COSTS (Tables)
DIRECT OPERATING COSTS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Direct Operating Costs [Abstract] | |
Disclosure Of Detailed Information On Operating Costs | For the three-month For the six-month US$ MILLIONS 2023 2022 2023 2022 Depreciation and amortization $ 57 $ 54 $ 112 $ 108 Transportation and distribution 48 40 97 80 Operations and maintenance 18 14 36 29 Compensation 18 15 35 30 Cost of inventory 1 1 3 4 Other 7 7 13 14 Total $ 149 $ 131 $ 296 $ 265 |
EQUITY (Tables)
EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity [abstract] | |
Disclosure of classes of share capital | Our company’s equity is comprised of the following shares: Class C shares Shares outstanding (Shares) (1) Share capital Balance at January 1, 2022 2,103,677 $ 53 Share issuance — — Balance at December 31, 2022 and June 30, 2023 2,103,677 $ 53 1. Shares outstanding have been adjusted to effect for the change in shares due to the stock split. See Note 9, Financial Liabilities. |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Cash Flow Statement [Abstract] | |
Disclosure Of Interest And Income Taxes Paid | For the three-month For the six-month US$ MILLIONS 2023 2022 2023 2022 Interest paid $ 129 $ 136 $ 289 $ 203 Income taxes paid $ 40 $ 32 $ 282 $ 242 |
Disclosure Of Changes In Non-cash Working Capital | Details of “Changes in non-cash working capital, net” on the unaudited interim condensed and consolidated statements of cash flows are as follows: For the three-month For the six-month US$ MILLIONS 2023 2022 2023 2022 Accounts receivable $ (15) $ (25) $ (25) $ (44) Accounts payable and other 80 85 (91) 39 Changes in non-cash working capital, net $ 65 $ 60 $ (116) $ (5) |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS - Allocation of Financial Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Disclosure of financial liabilities [line items] | ||
Financial assets | $ 1,655 | $ 1,549 |
Financial liabilities | 9,772 | 8,690 |
Fair value through profit or loss | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 107 | 72 |
Amortized cost | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 9,665 | 8,618 |
Accounts payable and other (current and non-current) | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 542 | 589 |
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 | 542 | 589 |
Non-recourse borrowings (current and non-current) | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 5,057 | 4,577 |
Non-recourse borrowings (current and non-current) | Fair value through profit or loss | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 0 | 0 |
Non-recourse borrowings (current and non-current) | Amortized cost | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 5,057 | 4,577 |
Exchangeable and class B Shares | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 4,040 | 3,426 |
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 | 4,040 | 3,426 |
Financial liabilities (current and non-current) | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 107 | 72 |
Financial liabilities (current and non-current) | Fair value through profit or loss | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 107 | 72 |
Financial liabilities (current and non-current) | Amortized cost | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 0 | 0 |
Loans payable to Brookfield Infrastructure | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 26 | 26 |
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 | 26 | 26 |
Fair value through profit or loss | ||
Disclosure of financial liabilities [line items] | ||
Financial assets | 0 | 97 |
Amortized cost | ||
Disclosure of financial liabilities [line items] | ||
Financial assets | 1,655 | 1,452 |
Cash and cash equivalents | ||
Disclosure of financial liabilities [line items] | ||
Financial assets | 356 | 445 |
Cash and cash equivalents | Fair value through profit or loss | ||
Disclosure of financial liabilities [line items] | ||
Financial assets | 0 | 0 |
Cash and cash equivalents | Amortized cost | ||
Disclosure of financial liabilities [line items] | ||
Financial assets | 356 | 445 |
Accounts receivable and other (current and non-current) | ||
Disclosure of financial liabilities [line items] | ||
Financial assets | 479 | 441 |
Accounts receivable and other (current and non-current) | Fair value through profit or loss | ||
Disclosure of financial liabilities [line items] | ||
Financial assets | 0 | 0 |
Accounts receivable and other (current and non-current) | Amortized cost | ||
Disclosure of financial liabilities [line items] | ||
Financial assets | 479 | 441 |
Financial assets (current and non-current) | ||
Disclosure of financial liabilities [line items] | ||
Financial assets | 0 | 97 |
Financial assets (current and non-current) | Fair value through profit or loss | ||
Disclosure of financial liabilities [line items] | ||
Financial assets | 97 | |
Financial assets (current and non-current) | Amortized cost | ||
Disclosure of financial liabilities [line items] | ||
Financial assets | 0 | |
Due from Brookfield Infrastructure | ||
Disclosure of financial liabilities [line items] | ||
Financial assets | 820 | 566 |
Due from Brookfield Infrastructure | Fair value through profit or loss | ||
Disclosure of financial liabilities [line items] | ||
Financial assets | 0 | 0 |
Due from Brookfield Infrastructure | Amortized cost | ||
Disclosure of financial liabilities [line items] | ||
Financial assets | $ 820 | $ 566 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS- Allocation of Financial Instruments - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Financial assets (current and non-current) | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial instrument assets (liabilities) designated as hedging instruments, at fair value | $ 0 | $ 97 |
Financial liabilities (current and non-current) | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial instrument assets (liabilities) designated as hedging instruments, at fair value | $ (107) | $ 72 |
FAIR VALUE OF FINANCIAL INSTR_5
FAIR VALUE OF FINANCIAL INSTRUMENTS - Carrying and Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Disclosure of financial liabilities [line items] | ||
Financial assets | $ 1,655 | $ 1,549 |
Fair Value | 1,655 | 1,549 |
Financial liabilities, carrying | 9,772 | 8,690 |
Financial liabilities, fair value | 9,285 | 8,416 |
Accounts payable and other (current and non-current) | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities, carrying | 542 | 589 |
Financial liabilities, fair value | 542 | 589 |
Non-recourse borrowings | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities, carrying | 5,057 | 4,577 |
Financial liabilities, fair value | 4,570 | 4,303 |
Exchangeable and class B Shares | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities, carrying | 4,040 | 3,426 |
Financial liabilities, fair value | 4,040 | 3,426 |
Financial liabilities (current and non-current) | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities, carrying | 107 | 72 |
Financial liabilities, fair value | 107 | 72 |
Loans payable to Brookfield Infrastructure | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities, carrying | 26 | 26 |
Financial liabilities, fair value | 26 | 26 |
Cash and cash equivalents | ||
Disclosure of financial liabilities [line items] | ||
Financial assets | 356 | 445 |
Fair Value | 356 | 445 |
Accounts receivable and other (current and non-current) | ||
Disclosure of financial liabilities [line items] | ||
Financial assets | 479 | 441 |
Fair Value | 479 | 441 |
Financial assets (current and non-current) | ||
Disclosure of financial liabilities [line items] | ||
Financial assets | 0 | 97 |
Fair Value | 0 | 97 |
Due from Brookfield Infrastructure | ||
Disclosure of financial liabilities [line items] | ||
Financial assets | 820 | 566 |
Fair Value | $ 820 | $ 566 |
FAIR VALUE OF FINANCIAL INSTR_6
FAIR VALUE OF FINANCIAL INSTRUMENTS - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | |||||
Financial liabilities | $ 36 | $ 36 | $ 0 | ||
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 | (7) | $ (1) | (12) | $ (3) | |
Derivative financial assets | $ 107 | $ 107 | $ 25 |
FAIR VALUE OF FINANCIAL INSTR_7
FAIR VALUE OF FINANCIAL INSTRUMENTS - Valuation Techniques and Significant Inputs (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial liabilities | $ 36 | $ 0 |
Recurring fair value measurement | Discounted cash flow | Interest rate swaps & other | Level 2 | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial liabilities | 107 | 72 |
Recurring fair value measurement | Discounted cash flow | Interest rate swaps & other | Level 2 | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | $ 0 | $ 97 |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Net Book Value (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | $ 4,718 | $ 4,803 |
Additions, net of disposals | 242 | 440 |
Non-cash additions | 1 | 3 |
Depreciation expense | (59) | (110) |
Fair value adjustments | 100 | |
Net foreign currency exchange differences | 247 | (518) |
Ending balance | 5,149 | 4,718 |
Gross Carrying Amount: | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 3,947 | 3,935 |
Additions, net of disposals | 236 | 435 |
Non-cash additions | 4 | 7 |
Depreciation expense | 0 | 0 |
Fair value adjustments | 0 | |
Net foreign currency exchange differences | 209 | (430) |
Ending balance | 4,396 | 3,947 |
Accumulated depreciation: | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | (707) | (673) |
Additions, net of disposals | 6 | 5 |
Non-cash additions | (3) | (4) |
Depreciation expense | (59) | (110) |
Fair value adjustments | 0 | |
Net foreign currency exchange differences | (38) | 75 |
Ending balance | (801) | (707) |
Accumulated fair value adjustments | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 1,478 | 1,541 |
Additions, net of disposals | 0 | 0 |
Non-cash additions | 0 | 0 |
Depreciation expense | 0 | 0 |
Fair value adjustments | 100 | |
Net foreign currency exchange differences | 76 | (163) |
Ending balance | $ 1,554 | $ 1,478 |
INTANGIBLE ASSETS - Net Amounts
INTANGIBLE ASSETS - Net Amounts (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of detailed information about intangible assets [line items] | |||
Net intangible assets | $ 3,043 | $ 2,847 | |
Cost | |||
Disclosure of detailed information about intangible assets [line items] | |||
Net intangible assets | 3,943 | 3,629 | $ 3,332 |
Accumulated amortization | |||
Disclosure of detailed information about intangible assets [line items] | |||
Net intangible assets | $ (900) | $ (782) | $ (645) |
INTANGIBLE ASSETS - Cash Genera
INTANGIBLE ASSETS - Cash Generating Units (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Disclosure of information for cash-generating units [line items] | ||
Total | $ 3,043 | $ 2,847 |
Brazilian regulated gas transmission operation | ||
Disclosure of information for cash-generating units [line items] | ||
Total | 3,014 | 2,816 |
U.K. regulated distribution operation | ||
Disclosure of information for cash-generating units [line items] | ||
Total | $ 29 | $ 31 |
INTANGIBLE ASSETS - Reconciliat
INTANGIBLE ASSETS - Reconciliation (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Reconciliation of changes in intangible assets other than goodwill | ||
Cost at beginning of the year | $ 2,847 | |
Cost at end of year | 3,043 | $ 2,847 |
Cost | ||
Reconciliation of changes in intangible assets other than goodwill | ||
Cost at beginning of the year | 3,629 | 3,332 |
Additions, net of disposals | 17 | 81 |
Foreign currency translation | 297 | 216 |
Cost at end of year | $ 3,943 | $ 3,629 |
INTANGIBLE ASSETS - Accumulated
INTANGIBLE ASSETS - Accumulated Amortization (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Disclosure of detailed information about intangible assets [line items] | ||
Cost at beginning of the year | $ 2,847 | |
Cost at end of year | 3,043 | $ 2,847 |
Accumulated amortization | ||
Disclosure of detailed information about intangible assets [line items] | ||
Cost at beginning of the year | (782) | (645) |
Amortization | (53) | (101) |
Foreign currency translation | (65) | (36) |
Cost at end of year | $ (900) | $ (782) |
INVESTMENTS IN ASSOCIATES - Nar
INVESTMENTS IN ASSOCIATES - Narrative (Details) - AusNet Services Ltd $ in Millions | 1 Months Ended |
Feb. 28, 2022 USD ($) | |
Disclosure of Associates and Joint Ventures [Line Items] | |
Proportion of ownership interest in subsidiary | 8% |
Total consideration | $ 455 |
INVESTMENTS IN ASSOCIATES - Bal
INVESTMENTS IN ASSOCIATES - Balance of investment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract] | |||||
Balance at the beginning of the period | $ 428 | $ 0 | $ 0 | ||
Acquisitions | 0 | 455 | |||
Share of earnings (losses) from investments in associates | $ 3 | $ 2 | 4 | $ (4) | 4 |
Foreign currency translation and other | (9) | (25) | |||
Share of other comprehensive (loss) income | (3) | 27 | |||
Distributions | (3) | (33) | |||
Ending Balance | $ 417 | $ 417 | $ 428 |
INVESTMENTS IN ASSOCIATES - Agg
INVESTMENTS IN ASSOCIATES - Aggregate balances of investments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Disclosure of Associates and Joint Ventures [Line Items] | |||||
Total assets | $ 10,973 | $ 10,973 | $ 10,178 | ||
Total liabilities | (11,737) | (11,737) | (10,539) | ||
Revenues | 538 | $ 479 | 1,035 | $ 940 | |
Total net income for the period | (154) | 842 | (349) | 626 | |
Share of earnings (losses) from investments in associates | 3 | 2 | 4 | (4) | 4 |
Acquisition-related costs for transaction | 105 | ||||
Associates And Joint Ventures | |||||
Disclosure of Associates and Joint Ventures [Line Items] | |||||
Total assets | 13,384 | 13,384 | 13,541 | ||
Total liabilities | (8,001) | (8,001) | (8,018) | ||
Net assets | 5,383 | 5,383 | $ 5,523 | ||
Revenues | 391 | 361 | 721 | 521 | |
Total net income for the period | $ 33 | $ 36 | $ 52 | $ (52) |
GOODWILL (Details)
GOODWILL (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Disclosure of reconciliation of changes in goodwill [line items] | ||
Balance at beginning of year | $ 518 | |
Balance at end of year | 566 | $ 518 |
Goodwill | ||
Disclosure of reconciliation of changes in goodwill [line items] | ||
Balance at beginning of year | 518 | 489 |
Foreign currency translation and other | 48 | 29 |
Balance at end of year | $ 566 | $ 518 |
BORROWINGS - Non-Recourse Borro
BORROWINGS - Non-Recourse Borrowings (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Disclosure of detailed information about borrowings [line items] | ||
Current | $ 247 | $ 328 |
Non-current | 4,810 | 4,249 |
Non-recourse borrowings | ||
Disclosure of detailed information about borrowings [line items] | ||
Total | $ 5,057 | $ 4,577 |
BORROWINGS - Additional Informa
BORROWINGS - Additional Information (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Disclosure of detailed information about borrowings [line items] | |
Debt instruments issued | $ 250 |
U.K. Regulated Distribution Business and Brazilian Regulated Gas Transmission Business | |
Disclosure of detailed information about borrowings [line items] | |
Debt instruments issued | 45 |
Non-recourse borrowings | |
Disclosure of detailed information about borrowings [line items] | |
Increase (decrease) in borrowings | $ 480 |
FINANCIAL LIABILITIES (Details)
FINANCIAL LIABILITIES (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Current: | ||
Foreign currency forward contracts | $ 71 | $ 72 |
Total current financial liabilities | 71 | 72 |
Interest rate swaps | 36 | 0 |
Total non-current financial liabilities | $ 36 | $ 0 |
FINANCIAL LIABILITIES - Additio
FINANCIAL LIABILITIES - Additional Information (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 10, 2022 | Jun. 30, 2023 USD ($) $ / shares | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) $ / shares shares | Jun. 30, 2022 USD ($) | Dec. 31, 2022 shares | |
Disclosure of detailed information about financial instruments [line items] | ||||||
Dividends recognised as distributions to owners | $ | $ 43 | $ 39 | $ 85 | $ 79 | ||
Stock split conversion ratio | 1.5 | |||||
Share capital | Exchangeable Shares | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Share issuance, exchangeable share conversion (in shares) | 121,970 | 427,643 | ||||
Exchangeable share conversion, shares (in shares) | 5,811 | 17,512 | ||||
Number of share issued, price per share (in dollars per share) | $ / shares | $ 36.50 | $ 36.50 |
FINANCIAL LIABILITIES - Exchang
FINANCIAL LIABILITIES - Exchangeable and Class B Shares (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Disclosure of financial liabilities [line items] | |||||
Exchangeable share liability, beginning | $ 3,426 | ||||
Remeasurement of liability | $ (301) | $ 656 | (608) | $ 259 | |
Exchangeable share liability, end | 4,040 | 4,040 | $ 3,426 | ||
Exchangeable and class B Shares | |||||
Disclosure of financial liabilities [line items] | |||||
Exchangeable share liability, beginning | 3,426 | $ 4,466 | 4,466 | ||
Share issuance - BIPC exchangeable LP unit exchanges | 6 | 19 | |||
Exchangeable share conversion, value | 0 | (1) | |||
Remeasurement of liability | 608 | (1,058) | |||
Exchangeable share liability, end | $ 4,040 | $ 4,040 | $ 3,426 | ||
Share capital | Exchangeable Shares | |||||
Disclosure of financial liabilities [line items] | |||||
Number of shares outstanding at beginning of period (in shares) | 110,567,671 | 110,157,540 | 110,157,540 | ||
Share issuance, exchangeable share conversion (in shares) | 121,970 | 427,643 | |||
Exchangeable share conversion, shares (in shares) | (5,811) | (17,512) | |||
Remeasurement of liability, shares (in shares) | 0 | 0 | |||
Number of shares outstanding at end of period (in shares) | 110,683,830 | 110,683,830 | 110,567,671 | ||
Share capital | Class B Shares | |||||
Disclosure of financial liabilities [line items] | |||||
Number of shares outstanding at beginning of period (in shares) | 2 | 2 | 2 | ||
Share issuance, exchangeable share conversion (in shares) | 0 | 0 | |||
Exchangeable share conversion, shares (in shares) | 0 | 0 | |||
Remeasurement of liability, shares (in shares) | 0 | 0 | |||
Number of shares outstanding at end of period (in shares) | 2 | 2 | 2 |
REVENUE - By Service Line (Deta
REVENUE - By Service Line (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disclosure of operating segments [line items] | ||||
Revenue | $ 538 | $ 479 | $ 1,035 | $ 940 |
Gas Transmission | ||||
Disclosure of operating segments [line items] | ||||
Revenue | 379 | 343 | 721 | 663 |
Distribution | ||||
Disclosure of operating segments [line items] | ||||
Revenue | 96 | 86 | 192 | 177 |
Connections | ||||
Disclosure of operating segments [line items] | ||||
Revenue | 53 | 45 | 97 | 85 |
Other | ||||
Disclosure of operating segments [line items] | ||||
Revenue | $ 10 | $ 5 | $ 25 | $ 15 |
REVENUE - Geographic Informatio
REVENUE - Geographic Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) customer | Jun. 30, 2022 USD ($) | |
Disclosure of geographical areas [line items] | ||||
Revenues | $ 538 | $ 479 | $ 1,035 | $ 940 |
Brazil | ||||
Disclosure of geographical areas [line items] | ||||
Revenues | 379 | 343 | 721 | 663 |
United Kingdom | ||||
Disclosure of geographical areas [line items] | ||||
Revenues | $ 159 | 136 | $ 314 | $ 277 |
Partnership's Sales Revenue, Net | Customer Concentration Risk 1 | ||||
Disclosure of geographical areas [line items] | ||||
Revenues | $ 343 | |||
Concentration risk, number of customers | customer | 1 | |||
Bottom of range | Partnership's Sales Revenue, Net | Customer Concentration Risk 1 | ||||
Disclosure of geographical areas [line items] | ||||
Percentage of entity's revenue | 10% |
DIRECT OPERATING COSTS (Details
DIRECT OPERATING COSTS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Direct Operating Costs [Abstract] | ||||
Depreciation and amortization | $ 57 | $ 54 | $ 112 | $ 108 |
Transportation and distribution | 48 | 40 | 97 | 80 |
Operations and maintenance | 18 | 14 | 36 | 29 |
Compensation | 18 | 15 | 35 | 30 |
Cost of inventory | 1 | 1 | 3 | 4 |
Other | 7 | 7 | 13 | 14 |
Total | $ 149 | $ 131 | $ 296 | $ 265 |
EQUITY - Shares (Details)
EQUITY - Shares (Details) - USD ($) $ in Millions | 6 Months Ended | |||||
Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
Schedule of Partnership Units [Line Items] | ||||||
Equity | $ (764) | $ (648) | $ (361) | $ (1,078) | $ (1,563) | $ (1,424) |
Share capital | ||||||
Schedule of Partnership Units [Line Items] | ||||||
Equity | $ 53 | $ 53 | $ 53 | $ 53 | $ 53 | |
Share capital | Class C Shares | ||||||
Schedule of Partnership Units [Line Items] | ||||||
Number of shares outstanding (in shares) | 2,103,677 | 2,103,677,000,000 | ||||
Share Issuance (in shares) | 0 | |||||
Equity | $ 53 | $ 53 | ||||
Issue of equity | $ 0 |
RELATED PARTY TRANSACTIONS - Na
RELATED PARTY TRANSACTIONS - Narrative (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Aug. 03, 2023 USD ($) | Sep. 23, 2022 USD ($) | Jun. 30, 2023 USD ($) $ / shares | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) agreement $ / shares | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Mar. 28, 2023 USD ($) | |
Disclosure of transactions between related parties [line items] | ||||||||
Related party, equity commitment | $ 1,000 | |||||||
Preferred shares (in dollars per share) | $ / shares | $ 25 | $ 25 | ||||||
Amount called on the equity commitment | $ 0 | $ 0 | ||||||
Due from Brookfield Infrastructure | $ 820 | 820 | 566 | |||||
Interest expense, related party transactions | 1 | $ 1 | $ 1 | $ 1 | ||||
Australian Regulated Utility Operation | Disposal of major subsidiary [member] | ||||||||
Disclosure of transactions between related parties [line items] | ||||||||
Proportion of ownership interest in associate | 7.90% | |||||||
Proceeds from sales of interests in associates | $ 450 | |||||||
Senior Unsecured Revolving Credit Facility | ||||||||
Disclosure of transactions between related parties [line items] | ||||||||
Borrowings maturity, term | 10 years | |||||||
Credit facility, maximum borrowing capacity | 1,000 | $ 1,000 | ||||||
Borrowing agreements | agreement | 2 | |||||||
Brookfield Infrastructure | ||||||||
Disclosure of transactions between related parties [line items] | ||||||||
Subsidiary and corporate borrowings | 0 | $ 0 | 0 | |||||
Due from Brookfield Infrastructure | 570 | 570 | ||||||
Interest expense, related party transactions | $ 4 | $ 4 | ||||||
Borrowings, interest rate | 0.20% | 0.20% | ||||||
Repayments of borrowings, classified as financing activities | $ 26 | 26 | ||||||
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 | $ 16 | $ 16 | $ 31 | $ 34 | ||||
Subsidiary of Common Parent | ||||||||
Disclosure of transactions between related parties [line items] | ||||||||
Amounts payable, related party transactions | 9 | 9 | 6 | |||||
Amounts receivable, related party transactions | 0 | 0 | 10 | |||||
Subsidiary of Common Parent | 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 | $ 1 | $ 1 | |||||
Subsidiary of Common Parent | Brookfield Infrastructure | ||||||||
Disclosure of transactions between related parties [line items] | ||||||||
Subsidiary and corporate borrowings | $ 250 | |||||||
Borrowings, adjustment to interest rate basis | 2% | |||||||
Parent | ||||||||
Disclosure of transactions between related parties [line items] | ||||||||
Sales of property and other assets, related party transactions | $ 66 | |||||||
Gains (losses) on available-for-sale financial assets | $ 2 |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION - Schedule (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Cash Flow Statement [Abstract] | ||||
Interest paid | $ 129 | $ 136 | $ 289 | $ 203 |
Income taxes paid | $ 40 | $ 32 | $ 282 | $ 242 |
SUPPLEMENTAL CASH FLOW INFORM_4
SUPPLEMENTAL CASH FLOW INFORMATION - Changes in non-cash working capital (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Cash Flow Statement [Abstract] | ||||
Accounts receivable | $ (15) | $ (25) | $ (25) | $ (44) |
Accounts payable and other | 80 | 85 | (91) | 39 |
Changes in non-cash working capital, net | $ 65 | $ 60 | $ (116) | $ (5) |