Cover
Cover | 12 Months Ended |
Dec. 31, 2023 shares | |
Document Information [Line Items] | |
Document Registration Statement | false |
Document Type | 20-F |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2023 |
Current Fiscal Year End Date | --12-31 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-33632 |
Entity Registrant Name | BROOKFIELD INFRASTRUCTURE CORPORATION |
Entity Incorporation, State or Country Code | Z4 |
Entity Address, Address Line One | 250 Vesey Street |
Entity Address, Address Line Two | 15th Floor |
Entity Address, City or Town | New York |
Entity Address, State or Province | NY |
Entity Address, Postal Zip Code | 10281 |
Entity Address, Country | US |
Title of 12(b) Security | Class A Exchangeable Subordinate Voting Shares |
Trading Symbol | BIPC |
Security Exchange Name | NYSE |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Document Financial Statement Error Correction [Flag] | false |
Document Accounting Standard | International Financial Reporting Standards |
Entity Shell Company | false |
Entity Central Index Key | 0001788348 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Class A Exchangeable Subordinate Voting Shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 131,872,066 |
Class B shares outstanding (Shares) | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 2 |
Class C Shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 11,117,660 |
Business Contact | |
Document Information [Line Items] | |
Entity Address, Address Line One | 250 Vesey Street |
Entity Address, Address Line Two | 15th Floor |
Entity Address, City or Town | New York |
Entity Address, State or Province | NY |
Entity Address, Postal Zip Code | 10281 |
Entity Address, Country | US |
Contact Personnel Name | Michael Ryan |
City Area Code | 212 |
Local Phone Number | 417-7000 |
Contact Personnel Email Address | bip.enquiries@brookfield.com |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | Deloitte LLP |
Auditor Location | Toronto, Canada |
Auditor Firm ID | 1208 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | |
Assets | |||
Cash and cash equivalents | $ 539 | $ 445 | |
Financial assets | 38 | 57 | |
Accounts receivable and other | 939 | 499 | |
Due from Brookfield Infrastructure | 1,288 | 566 | |
Current assets | 2,804 | 1,567 | |
Property, plant and equipment | 14,151 | 4,718 | |
Intangible assets | 3,699 | 2,847 | |
Investments in associates | 0 | 428 | |
Goodwill | 1,726 | 518 | |
Financial assets | 65 | 40 | |
Other non-current assets | 1,424 | 17 | |
Deferred income tax asset | 40 | 43 | |
Total assets | 23,909 | 10,178 | |
Liabilities | |||
Accounts payable and other | 1,099 | 781 | |
Non-recourse borrowings | 1,021 | 328 | |
Financial liabilities | 60 | 72 | |
Loans payable to Brookfield Infrastructure | 26 | 26 | |
Exchangeable and class B shares | 4,153 | 3,426 | |
Current liabilities | 6,359 | 4,633 | |
Non-recourse borrowings | 11,007 | 4,249 | |
Financial liabilities | 15 | 0 | |
Other liabilities | 325 | 119 | |
Deferred income tax liability | 2,135 | 1,538 | |
Total liabilities | 19,841 | 10,539 | |
Equity | |||
Brookfield Infrastructure Partners L.P | [1] | (399) | (1,119) |
Non-controlling interests | 4,467 | 758 | |
Total equity | 4,068 | (361) | |
Total liabilities and equity | $ 23,909 | $ 10,178 | |
[1] Common equity is attributable to the partnership prior to the special distribution and subsequently as a result of the partnership holding all of the class C shares issued by our company. Please refer to Note 3(b), Material Accounting Policy Information, for further details. |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATING RESULTS - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Profit or loss [abstract] | ||||
Revenues | [1] | $ 2,503 | $ 1,886 | $ 1,643 |
Direct operating costs | [1] | (778) | (542) | (526) |
General and administrative expenses | [1] | (67) | (69) | (49) |
Profit (loss) from operating activities | [1] | 1,658 | 1,275 | 1,068 |
Interest expense | [1] | (697) | (544) | (294) |
Share of (losses) earnings from investments in associates | [1] | (20) | 4 | 0 |
Remeasurement of exchangeable and class B shares | [1] | 34 | 1,058 | (447) |
Mark-to-market and foreign currency revaluation | [1] | 23 | 49 | (11) |
Other (expense) income | [1] | (24) | 39 | 116 |
Income before income tax | [1] | 974 | 1,881 | 432 |
Income tax (expense) recovery | ||||
Current | [1] | (348) | (341) | (234) |
Deferred | [1] | (20) | 79 | (171) |
Net income | [1] | 606 | 1,619 | 27 |
Attributable to: | ||||
Brookfield Infrastructure Partners L.P. | [1],[2] | 111 | 1,094 | (368) |
Non-controlling interests | [1] | $ 495 | $ 525 | $ 395 |
[1] Earnings per share have not been presented in the financial statements, as the underlying shares do not constitute “ordinary shares” under IAS 33, Earnings per share. See Note 3(b), Material Accounting Policy Information, for further details. Net income is attributable to the partnership prior to the special distribution as well as subsequently as a result of the partnership holding all of the class C shares issued by our company. Please refer to Note 3(b), Material Accounting Policy Information, for further details. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Statement of comprehensive income [abstract] | ||||
Net income | [1] | $ 606 | $ 1,619 | $ 27 |
Items that will not be reclassified subsequently to profit or loss: | ||||
Revaluation of property, plant and equipment | 142 | 100 | 134 | |
Taxes on the above | (36) | (25) | (121) | |
Other comprehensive income that will not be reclassified to profit or loss, net of tax | 106 | 75 | 13 | |
Items that may be reclassified subsequently to profit or loss: | ||||
Foreign currency translation | 159 | (163) | (99) | |
Cash flow hedge | (24) | (58) | 0 | |
Taxes on the above items | 2 | 11 | 0 | |
Share of (losses) earnings from investments in associates | (27) | 27 | 0 | |
Other comprehensive income that will be reclassified to profit or loss, net of tax | 110 | (183) | (99) | |
Total other comprehensive income (loss) | 216 | (108) | (86) | |
Comprehensive income (loss) | 822 | 1,511 | (59) | |
Attributable to: | ||||
Brookfield Infrastructure Partners L.P. | [2] | 278 | 1,008 | (373) |
Non-controlling interests | $ 544 | $ 503 | $ 314 | |
[1] Earnings per share have not been presented in the financial statements, as the underlying shares do not constitute “ordinary shares” under IAS 33, Earnings per share. See Note 3(b), Material Accounting Policy Information, for further details. Comprehensive income is attributable to the partnership prior to the special distribution as well as subsequently as a result of the partnership holding all of the class C shares issued by our company. Please refer to Note 3(b), Material Accounting Policy Information, for further details. |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Brookfield Infrastructure Partners L.P | Share capital | Retained earnings | Ownership changes | Accumulated other comprehensive income | Brookfield Infrastructure Partners L.P | Non-controlling interests | |||
Beginning balance at Dec. 31, 2020 | $ (572) | $ 53 | $ 33 | $ (2,347) | $ 539 | [1] | $ (1,722) | $ 1,150 | |||
Net income | 27 | [2] | (368) | (368) | 395 | ||||||
Other comprehensive income | (86) | (5) | [1] | (5) | (81) | ||||||
Comprehensive income | (59) | (368) | (5) | [1] | (373) | 314 | |||||
Distributions to non-controlling interests | (425) | (425) | |||||||||
Acquisition of non controlling interests | (281) | (281) | |||||||||
Other items | (87) | 142 | (32) | (142) | [1] | (32) | (55) | ||||
Ending balance at Dec. 31, 2021 | (1,424) | 53 | (193) | (2,379) | 392 | [1],[3] | (2,127) | 703 | |||
Net income | 1,619 | [2] | 1,094 | 1,094 | 525 | ||||||
Other comprehensive income | (108) | (86) | [3] | (86) | (22) | ||||||
Comprehensive income | 1,511 | 1,094 | (86) | [3] | 1,008 | 503 | |||||
Distributions to non-controlling interests | (448) | (448) | |||||||||
Ending balance at Dec. 31, 2022 | (361) | 53 | 901 | (2,379) | 306 | [3] | (1,119) | 758 | |||
Net income | 606 | [2] | 111 | 111 | 495 | ||||||
Other comprehensive income | 216 | 167 | [4] | 167 | 49 | ||||||
Comprehensive income | 822 | 111 | 167 | [4] | 278 | 544 | |||||
Share issuance | 339 | $ 339 | 339 | ||||||||
Distributions to non-controlling interests | (458) | (458) | |||||||||
Acquisition of non controlling interests | [5] | 3,726 | 3,726 | ||||||||
Other items | 0 | $ 103 | 103 | (103) | |||||||
Ending balance at Dec. 31, 2023 | $ 4,068 | $ 392 | $ 1,115 | $ (2,379) | $ 473 | [4] | $ (399) | $ 4,467 | |||
[1] Refer to Note 20 Accumulated Other Comprehensive Income (Loss) for an analysis of accumulated other comprehensive income (loss) by item. Earnings per share have not been presented in the financial statements, as the underlying shares do not constitute “ordinary shares” under IAS 33, Earnings per share. See Note 3(b), Material Accounting Policy Information, for further details. Refer to Note 20, Accumulated Other Comprehensive Income (Loss) for an analysis of accumulated other comprehensive income (loss) by item. Refer to Note 20, Accumulated Other Comprehensive Income (Loss) for an analysis of accumulated other comprehensive income (loss) by item. Refer to Note 4, Acquisition of businesses, for further details. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Operating Activities | ||||
Net income | [1] | $ 606 | $ 1,619 | $ 27 |
Adjusted for the following items: | ||||
Earnings from investments in associates, net of distributions received | 23 | 29 | 0 | |
Depreciation and amortization expense | 365 | 211 | 236 | |
Mark-to-market and other | 73 | (2) | (77) | |
Remeasurement of exchangeable and class B shares | (34) | (1,058) | 447 | |
Deferred income tax expense (recovery) | 20 | (79) | 171 | |
Changes in non-cash working capital, net | 6 | 173 | 35 | |
Cash from operating activities | 1,059 | 893 | 839 | |
Investing Activities | ||||
Acquisition of subsidiaries, net of cash acquired | (3,086) | 0 | 0 | |
Disposal of subsidiaries, net of cash disposed | 0 | 0 | 817 | |
Investment in associates | 0 | (455) | 0 | |
Disposal of investments in associates | 435 | 0 | 0 | |
Purchase of long-lived assets | (594) | (525) | (417) | |
Disposal of long-lived assets | 75 | 4 | 2 | |
Purchase of financial assets | (57) | (71) | 0 | |
Sale of financial assets | 53 | 0 | 0 | |
Settlement of foreign exchange and other hedging items | 0 | 0 | (76) | |
Cash (used by) from investing activities | (3,174) | (1,047) | 326 | |
Financing Activities | ||||
Exchangeable shares issued, net of costs | 0 | 0 | 128 | |
Distributions to non-controlling interests | (458) | (448) | (425) | |
Acquisition of partial interest from non-controlling interest | 0 | 0 | (283) | |
Capital provided by non-controlling interest | 2,911 | 0 | 0 | |
Proceeds from non-recourse borrowings | 1,313 | 2,143 | 377 | |
Repayment of non-recourse borrowings | (1,136) | (1,060) | (211) | |
Loans and repayments from Brookfield Infrastructure | 1,057 | 605 | 15 | |
Loans and repayments to Brookfield Infrastructure | (1,472) | (138) | (469) | |
Other financing activities | (32) | 0 | 0 | |
Settlement of deferred consideration | 0 | (1,106) | 0 | |
Cash from (used by) financing activities | 2,183 | (4) | (868) | |
Cash and cash equivalents | ||||
Change during the year | 68 | (158) | 297 | |
Impact of foreign exchange on cash | 26 | 134 | (20) | |
Balance, beginning of year | 445 | 469 | 192 | |
Balance, end of year | $ 539 | $ 445 | $ 469 | |
[1] Earnings per share have not been presented in the financial statements, as the underlying shares do not constitute “ordinary shares” under IAS 33, Earnings per share. See Note 3(b), Material Accounting Policy Information, for further details. |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF OUR COMPANY | 12 Months Ended |
Dec. 31, 2023 | |
Corporate information and statement of IFRS compliance [abstract] | |
ORGANIZATION AND DESCRIPTION OF OUR COMPANY | ORGANIZATION AND DESCRIPTION OF OUR COMPANY a) Brookfield Infrastructure Corporation Brookfield Infrastructure Corporation (our “company”) and its subsidiaries, own regulated utility investments in Brazil and the United Kingdom as well as a global intermodal logistics operation (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 (“Brookfield”) is our company’s ultimate parent. The class A exchangeable subordinate voting shares (“exchangeable shares”) of our company are listed on the New York Stock Exchange and the Toronto Stock Exchange under the symbol “BIPC”. The registered head office of our company is 250 Vesey Street, New York, NY, United States. The exchangeable shares of our company are structured with the intention of being economically equivalent to the units of the partnership. Given the economic equivalence, we expect that the market price of the exchangeable shares will be significantly impacted by the market price of the partnership’s units and the combined business performance of our company and Brookfield Infrastructure as a whole. b) Special Distribution of our Company On March 31, 2020, the partnership completed a special distribution (the “special distribution”) whereby limited partnership unitholders of the partnership as of March 20, 2020 (the “Record Date”) received one exchangeable share for every nine limited partnership units (“units”) held. Immediately prior to the special distribution, a subsidiary of the partnership, Brookfield Infrastructure L.P. (“Holding LP”), completed a distribution of the exchangeable shares to all the holders of its equity units (the “Holding LP Distribution”). As a result of the Holding LP Distribution, (i) Brookfield and its subsidiaries (other than entities within our group) received approximately 20.6 million exchangeable shares, and (ii) the partnership received approximately 48.9 million exchangeable shares, which it subsequently distributed to unitholders pursuant to the special distribution. Immediately following the special distribution, (i) holders of units held approximately 70.4% of the issued and outstanding exchangeable shares of our company, (ii) Brookfield and its affiliates held approximately 29.6% of the issued and outstanding exchangeable shares, and (iii) a subsidiary of the partnership owned all of the issued and outstanding class B multiple voting shares, or class B shares, which represent a 75.0% voting interest in our company, and all of the issued and outstanding class C non-voting shares, or class C shares, of our company. The class C shares entitle the partnership to all of the residual value in our company after payment in full of the amount due to holders of exchangeable shares and class B shares. Holders of exchangeable shares hold an aggregate 25.0% voting interest in our company. Immediately after the special distribution, Brookfield, through its ownership of exchangeable shares, held an approximate 7.4% voting interest in our company. Holders of exchangeable shares, excluding Brookfield, held an approximate 17.6% aggregate voting interest in our company. Together, Brookfield and Brookfield Infrastructure held an approximate 82.4% voting interest in our company. The following describes the agreements resulting from the special distribution: i) Exchangeable shares At any time, holders of exchangeable shares have the right to exchange all or a portion of their exchangeable shares for one unit of the partnership per exchangeable share held or its cash equivalent based on the NYSE closing price of one unit on the date that the request for exchange is received. Due to their exchangeable features, the exchangeable shares are classified as liabilities. Our board has the right upon sixty (60) days’ prior written notice to holders of exchangeable shares to redeem all of the then outstanding exchangeable shares at any time and for any reason, in its sole discretion and subject to applicable law, including without limitation following the occurrence of certain redemption events. ii) Class B shares and class C shares At any time, holders of class B shares and class C shares will have the right to redeem for cash in an amount equal to the market price of a unit. Due to this cash redemption feature, both class B shares and class C shares are classified as financial liabilities. However, class C shares, the most subordinated class of all common shares, meet certain qualifying criteria and are presented as equity instruments given the narrow scope presentation exceptions existing in International Accounting Standard 32, Financial Instruments: Presentation (“IAS 32”). iii) Credit facilities Prior to the special distribution, our company entered into two credit agreements with Brookfield Infrastructure, one as borrower and one as lender, each providing for a ten-year revolving $1 billion credit facility to facilitate the movement of cash within our group. Our credit facility will permit our company to borrow up to $1 billion from Brookfield Infrastructure and the other will constitute an operating credit facility that will permit Brookfield Infrastructure to borrow up to $1 billion from our company. Each credit facility will contemplate potential deposit arrangements pursuant to which the lender thereunder would, with the consent of the borrower, deposit funds on a demand basis to such borrower’s account at a reduced rate of interest. Further details of the credit agreements with Brookfield Infrastructure are described in Note 22, Related Party Transactions . iv) Equity Commitment Prior to the completion of the special distribution, Brookfield Infrastructure provided our company an equity commitment in the amount of $1 billion. The equity commitment may be called by our company in exchange for the issuance of a number of class C shares or preferred shares, as the case may be, to Brookfield Infrastructure, corresponding to the amount of the equity commitment called divided (i) in the case of a subscription for class C shares, by the volume-weighted average of the trading price for one exchangeable share on the principal stock exchange on which our exchangeable shares are listed for the five The rationale for the equity commitment is to provide our company with access to equity capital on an as-needed basis and to maximize our operating and financing flexibility. v) Other arrangements with Brookfield Subsidiaries of Brookfield provide management services to our company pursuant to the partnership’s existing Master Services Agreement. Please refer to Note 3(b), Material Accounting Policy Information , for further details. There will be no change in how the base management fee and incentive distribution fees are calculated, though our company is responsible for paying, or reimbursing the partnership for, our proportionate share of the total base management fee. Further details of the Master Services Agreements are described in Note 22, Related Party Transactions . |
SUBSIDIARIES
SUBSIDIARIES | 12 Months Ended |
Dec. 31, 2023 | |
Interests In Other Entities [Abstract] | |
SUBSIDIARIES | SUBSIDIARIES The following table presents details of non-wholly owned subsidiaries of our company as of December 31 for the years indicated: Country of Effective Ownership Interest (%) Voting Interest (%) Defined Name Name of entity 2023 2022 2021 2023 2022 2021 U.K. regulated distribution operation BUUK Infrastructure No 1 Limited U.K. 80 80 80 80 80 80 Brazilian regulated gas transmission operation Nova Transportadora do Sudeste S.A. (1) Brazil 31 31 31 92 92 92 Global intermodal logistics operation (2) Triton International Limited (1),(2) U.S. 28 — — 100 — — (1) Our company has entered into voting arrangements to provide our company with the ability to direct the relevant activities of the investee. Our company controls this investee given that our company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Our company exercises judgment to determine the level of variability that will achieve control over an investee, particularly in circumstances where our company’s voting interest differs from its ownership interest in an investee. The following were considered to determine whether our company controls this investee: the degree of power (if any) held by other investors, the degree of exposure to variability of each investor, the determination of whether any general partner removal rights are substantive and the purpose and design of the investee. (2) Refer to Note 4, Acquisition of businesses, for further details. |
MATERIAL ACCOUNTING POLICY INFO
MATERIAL ACCOUNTING POLICY INFORMATION | 12 Months Ended |
Dec. 31, 2023 | |
Corporate information and statement of IFRS compliance [abstract] | |
MATERIAL ACCOUNTING POLICY INFORMATION | MATERIAL ACCOUNTING POLICY INFORMATION (a) Statement of Compliance These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”). These consolidated financial statements were authorized for issuance by the Board of Directors of our company on March 18, 2024. (b) Basis of Presentation The consolidated financial statements are prepared on a going concern basis. The partnership directly and indirectly controlled our company prior to the special distribution and continues to control our company subsequent to the special distribution through its interests in our company. As a result of this continuing common control, there was insufficient substance to justify a change in the measurement of our company. In accordance with our company and the partnership’s accounting policy, effective March 30, 2020, the assets and liabilities of our businesses were transferred to our company at their carrying values. (i) Subsidiaries These consolidated financial statements include the accounts of our company and subsidiaries over which our company has control. Subsidiaries are consolidated from the date of acquisition, being the date on which our company obtains control, and continue to be consolidated until the date when control is lost. Our company (investor) controls an investee when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Non-controlling interests may be initially measured either at fair value or at the non-controlling interests’ proportionate share of the fair value of the acquiree’s identifiable net assets. The choice of measurement basis is made on an acquisition by acquisition basis. Subsequent to acquisition, the carrying amount of non-controlling interests is the amount of those interests at initial recognition plus the non-controlling interests’ share of subsequent changes in equity in addition to changes in ownership interests. Total comprehensive income is attributed to non-controlling interests, even if this results in the non-controlling interests having a deficit balance. All intercompany balances, transactions, revenues and expenses are eliminated in full. (ii) Associates Associates are entities over which our company has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but does not constitute control. Our company accounts for investments over which it has significant influence using the equity method, and are recorded as Investments in associates on the Consolidated Statements of Financial Position. Interests in investments accounted for using the equity method are initially recorded at cost. If the cost of the associate is lower than the proportionate share of the investment’s underlying fair value, our company records a gain on the difference between the cost and the underlying fair values of the identifiable net assets of the associate. If the cost of the associate is greater than our company’s proportionate share of the underlying fair value, goodwill and other adjustments arising from the purchase price allocation relating to the associate is included in the carrying amount of the investment. Subsequent to initial recognition, the carrying value of our company’s interest in an investee is adjusted for our company’s share of comprehensive income or loss and distributions from the investee. Profits or losses resulting from transactions with an associate are recognized in the consolidated financial statements based on the interests of unrelated investors in the associate. c) Continuity of Interests Our company was established on August 30, 2019 by the partnership. On March 30, 2020, the partnership contributed the businesses to our company in exchange for loans receivable, exchangeable shares, class B shares and class C shares. On March 31, 2020, the partnership completed the special distribution of the exchangeable shares to holders of units and continues to hold all of the class B and class C shares of our company. The partnership directly and indirectly controlled our company prior to the special distribution and continues to control our company subsequent to the special distribution through its interests in our company. As a result of this continuing common control, there was insufficient substance to justify a change in the measurement of our company. In accordance with our company’s and the partnership’s accounting policy, our company has reflected the businesses in its financial position and financial performance using the partnership’s carrying values prior to the contribution of the businesses to our company. As the partnership holds all of the class C shares of our company, which is the only class of shares presented as equity, net income and equity attributable to common equity have been allocated to the partnership prior to and after March 30, 2020. d) Foreign Currency Translation The U.S. dollar is the functional and presentation currency of our company. Each of our company’s affiliates determines its own functional currency and items included in the financial statements of each affiliate are measured using that functional currency. Assets and liabilities of foreign operations having a functional currency other than the U.S. dollar are translated at the rate of exchange prevailing at the reporting date and revenues and expenses at average rates during the period. Gains or losses on translation are included as a component of other comprehensive income. On disposal of a foreign operation resulting in the loss of control, the component of other comprehensive income due to accumulated foreign currency translation relating to that foreign operation is reclassified to net income. On partial disposal of a foreign operation in which control is retained, the proportionate share of the component of other comprehensive income or loss relating to that foreign operation is reclassified to non-controlling interests in that foreign operation. Foreign currency denominated monetary assets and liabilities are translated using the rate of exchange prevailing at the reporting date and non-monetary assets and liabilities measured at fair value are translated at the rate of exchange prevailing at the date when the fair value was determined. Revenues and expenses are measured at average rates during the period. Gains or losses on translation of these items are included in net income. Gains and losses on transactions which hedge these items are also included in net income or loss. Foreign currency denominated non-monetary assets and liabilities, measured at historic cost, are translated at the rate of exchange at the transaction date. e) Business Combinations Business acquisitions in which control is acquired are accounted for using the acquisition method, other than those between and among entities under common control. The consideration of each acquisition is measured at the aggregate of the fair values at the acquisition date of assets transferred by the acquirer, liabilities incurred or assumed, and equity instruments issued by our company in exchange for control of the acquiree. Acquisition related costs are recognized in the Statements of Operating Results as incurred and included in other expenses. Where applicable, the consideration for the acquisition includes any asset or liability resulting from a contingent consideration arrangement, measured at its acquisition-date fair value. Subsequent changes in fair values are adjusted against the cost of the acquisition where they qualify as measurement period adjustments. All other subsequent changes in the fair value of contingent consideration classified as liabilities will be recognized in the Statements of Operating Results, whereas changes in the fair values of contingent consideration classified within share capital are not subsequently re-measured. Where a business combination is achieved in stages, our company’s previously held interests in the acquired entity are remeasured to fair value at the acquisition date, that is, the date our company attains control and the resulting gain or loss, if any, is recognized in the Statements of Operating Results. Amounts arising from interests in the acquiree prior to the acquisition date that have previously been recognized in other comprehensive income are reclassified to the Statements of Operating Results, where such treatment would be appropriate if that interest were disposed of. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, our company reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period, or additional assets or liabilities are recognized, to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the amounts recognized as of that date. The measurement period is the period from the date of acquisition to the date our company obtains complete information about facts and circumstances that existed as of the acquisition date. The measurement period is subject to a maximum of one year subsequent to the acquisition date. If, after reassessment, our company’s interest in the fair value of the acquiree’s identifiable net assets exceeds the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree and the fair value of the acquirer’s previously held equity interest in the acquiree if any, the excess is recognized immediately in profit or loss as a bargain purchase gain. Contingent liabilities acquired in a business combination are initially measured at fair value at the date of acquisition. At the end of subsequent reporting periods, such contingent liabilities are measured at the higher of the amount that would be recognized in accordance with IAS 37, Provisions, Contingent Liabilities and Contingent Assets and the amount initially recognized less the cumulative amount of income recognized in accordance with IFRS 15, Revenue from Contracts with Customers . f) Cash and Cash Equivalents Cash and cash equivalents include short-term highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. g) Accounts Receivable Trade receivables are recognized initially at their transaction price and subsequently measured at amortized cost using the effective interest method, less any loss allowance for expected credit losses. h) Property, Plant and Equipment Our company uses the revaluation method of accounting for all classes of property, plant and equipment. Property, plant and equipment is initially measured at cost and subsequently carried at its revalued amount, being the fair value at the date of the revaluation less any subsequent accumulated depreciation and any accumulated impairment losses. Revaluations are made on at least an annual basis, and on a sufficient basis to ensure that the carrying amount does not differ significantly from fair value. Where the carrying amount of an asset is increased as a result of a revaluation, the increase is recognized in other comprehensive income or loss and accumulated in equity within the revaluation surplus reserve, unless the increase reverses a previously recognized impairment recorded through net income, in which case that portion of the increase is recognized in net income. Where the carrying amount of an asset is decreased, the decrease is recognized in other comprehensive income to the extent of any balance existing in revaluation surplus in respect of the asset, with the remainder of the decrease recognized in net income. Revaluation gains are included in other comprehensive income but are not subsequently recycled into profit or loss. An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. The gain or loss arising on disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in the Statements of Operating Results. However, any balance accumulated in revaluation surplus is subsequently recorded in retained earnings when an asset is derecognized and not transferred to profit or loss. Depreciation of an asset commences when it is available for use. Property, plant and equipment are depreciated on a straight line or declining-balance basis over the estimated useful lives of each component of the assets as follows: Buildings Up to 50 years Machinery and equipment Up to 20 years Leasehold improvements Up to 25 years Network systems Up to 80 years Depreciation on property, plant and equipment is calculated on a straight-line or declining-balance basis so as to depreciate the net cost of each asset over its expected useful life to its estimated residual value. The estimated useful lives, residual values and depreciation methods are reviewed at the end of each annual reporting period, with the effect of any changes recognized on a prospective basis. i) Asset Impairment At each reporting date, our company assesses whether for assets, other than those measured at fair value with changes in values recorded in profit or loss, there is any indication that such assets are impaired. This assessment includes a review of internal and external factors which includes, but is not limited to, changes in the technological, political, economic or legal environment in which the entity operates in, structural changes in the industry, changes in the level of demand, physical damage and obsolescence due to technological changes. An impairment is recognized if the recoverable amount, determined as the higher of the estimated fair value less costs of disposal or the discounted future cash flows generated from use and eventual disposal from an asset or cash generating unit is less than its carrying value. The projections of future cash flows take into account the relevant operating plans and management’s best estimate of the most probable set of conditions anticipated to prevail. Where an impairment loss subsequently reverses, the carrying amount of the asset or cash generating unit is increased to the lesser of the revised estimate of recoverable amount and the carrying amount that would have been recorded had no impairment loss been recognized previously. j) Intangible Assets Intangible assets acquired in a business combination and recognized separately from goodwill are initially recognized at their fair value at the acquisition date. Our company’s intangible assets are comprised primarily of service concession arrangements, customer relationships, brand, developed technology and customer order backlogs. Subsequent to initial recognition, intangible assets acquired in a business combination are reported at cost less accumulated amortization unless indefinite-lived and accumulated impairment losses, on the same basis as intangible assets acquired separately. Public service concessions that provide our company the right to charge users for a service in which the service and fee is regulated by the grantor are accounted for as an intangible asset under IFRIC 12, Service Concession Arrangements . Concession arrangements were acquired as part of the acquisition of the Brazilian regulated gas transmission operation and were initially recognized at their fair values. The intangible assets at the Brazilian regulated gas transmission operation relate to pipeline concession contracts, amortized on a straight-line basis over the estimated useful life of the underlying infrastructure with approximately 29 years remaining, on average. The customer relationships, brand, and developed technology were acquired as part of the acquisition of the global intermodal logistics operation and were initially recognized at their fair values. The customer relationships represent the on-going economic benefit from our leasing contracts with customers. The customer order backlog was acquired as part of the acquisition of the U.K. regulated distribution operation and was initially recorded at its fair value. The customer order backlog represents the present value of future earnings derived from the build out of contracted connections at the acquisition date of the U.K. regulated distribution operation. The customer order backlog is amortized over its estimated useful life of 15 years. Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in profit or loss when the asset is derecognized. k) Goodwill Goodwill represents the excess of the price paid for the acquisition of an entity over the fair value of the net tangible and intangible assets and liabilities acquired. Goodwill is allocated to the cash generating unit or units to which it relates. Our company identifies cash generating units as identifiable groups of assets that are largely independent of the cash inflows from other assets or groups of assets. Goodwill is evaluated for impairment annually or more often if events or circumstances indicate there may be impairment. Impairment is determined for goodwill by assessing if the carrying value of a cash generating unit or group of cash generating units, including the allocated goodwill, exceeds its recoverable amount determined as the greater of the estimated fair value less costs of disposal or the value in use. Impairment losses recognized in respect of a cash generating unit are first allocated to the carrying value of goodwill and any excess is allocated to the carrying amount of assets in the cash generating unit. Any goodwill impairment is recognized in period in which the impairment is identified. Impairment losses on goodwill are not subsequently reversed. On disposal of an affiliate, the attributable amount of goodwill is included in the determination of the gain or loss on disposal of the operation. l) Revenue Recognition Our company recognizes revenue when it transfers control of a product or service to a customer. Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. Our company recognizes revenue when the specific criteria set out below have been met. Cash received by our company from customers is recorded as deferred revenue until the revenue recognition criteria set out below are met. Revenue from our businesses is derived from the transmission of natural gas, the distribution of energy and logistics services revenue. Distribution, transmission and logistics revenue each contain a single performance obligation that is recognized over time when services are rendered, based primarily on usage or volume during the period. The connection revenue relating to our company’s regulated distribution operation contains a distinct performance obligation that is recognized over the period that the connection is constructed, based on an input method of progress recognition on the basis that this methodology is most reflective of the underlying transfer of control. The payment terms for all of our revenue streams require payment upon completion, except for connections income whereby payment is typically collected up-front prior to the completion of any services. m) Financial Instruments and Hedge Accounting a) Financial Instrument Classification Our company classifies cash and cash equivalents and accounts receivable and other as amortized cost. Derivative assets are classified as fair value through profit or loss (“FVTPL”), except for derivatives in certain hedging relationships. Other financial assets are classified as either amortized cost or fair value through other comprehensive income (“FVTOCI”). Financial assets classified as FVTPL or FVTOCI are subsequently measured at fair value at each reporting date. For financial assets classified as FVTPL, the change in fair value is recorded through profit or loss. For financial assets classified as FVTOCI, the change in fair value is recorded in other comprehensive income. The cumulative gains or losses related to FVTOCI equity instruments are not reclassified to profit or loss on disposal, whereas the cumulative gains or losses on all other FVTOCI assets are reclassified to profit or loss on disposal. For financial instruments at amortized cost or debt instruments at FVTOCI, our company assesses if there have been significant increases in credit risk since initial recognition to determine whether lifetime or 12-month expected credit losses should be recognized. Any related loss allowances are recorded through profit or loss. Non-recourse borrowings and accounts payable and other, are classified as amortized cost, except for derivatives embedded in related financial instruments. Embedded derivatives and any other derivative liabilities are classified as FVTPL and are subsequently measured at fair value, except for derivatives in certain hedging relationships. Other financial liabilities are classified as either FVTPL or amortized cost. b) Hedge Accounting Our company selectively utilizes derivative financial instruments primarily to manage financial risks, including interest rate and foreign exchange risks. Derivative financial instruments are recorded at fair value. Hedge accounting is applied when the derivative is designated as a hedge of a specific exposure and that the hedging relationship meets all of the hedge effectiveness requirements. Hedge accounting is discontinued prospectively when the derivative no longer qualifies as a hedge or the hedging relationship is terminated. Once discontinued, the cumulative change in fair value of a derivative that was previously recorded in other comprehensive income by the application of hedge accounting is recognized in profit or loss over the remaining term of the original hedging relationship as amounts related to the hedged item are recognized in profit or loss. The assets or liabilities relating to unrealized mark-to-market gains and losses on derivative financial instruments are recorded in financial assets and financial liabilities, respectively. Unrealized gains and losses on interest rate contracts designated as hedges of future variable interest payments are included in equity as a cash flow hedge when the interest rate risk relates to an anticipated variable interest payment. The periodic exchanges of payments on interest rate swap contracts designated as hedges of debt are recorded on an accrual basis as an adjustment to interest expense. n) Income Taxes Income tax expense represents the sum of the tax accrued in the period and deferred income tax. a) Current income tax Current income tax assets and liabilities are measured at the amount expected to be paid to tax authorities, net of recoveries based on the tax rates and laws enacted or substantively enacted at the reporting date. Current income tax relating to items recognized directly in share capital are also recognized directly in share capital and other comprehensive income. b) Deferred income tax Deferred income tax liabilities are provided for using the liability method on temporary differences between the tax bases used in the computation of taxable income and carrying amounts of assets and liabilities in the consolidated financial statements. Deferred income tax assets are recognized for all deductible temporary differences, carry forward of unused tax credits and unused tax losses, to the extent that it is probable that deductions, tax credits and tax losses can be utilized. Such deferred income tax assets and liabilities are not recognized if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the taxable income nor the accounting income, other than in a business combination. The carrying amount of deferred income tax assets are reviewed at each reporting date and reduced to the extent it is no longer probable that the income tax asset will be recovered. Deferred income tax liabilities are recognized for taxable temporary differences associated with investments in affiliates, except where our company is able to control the reversal of the temporary difference and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred income tax assets arising from deductible temporary differences associated with such investments and interests are only recognized to the extent that it is probable that there will be sufficient taxable income against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred income tax liabilities and assets reflect the tax consequences that would follow from the manner in which our company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Deferred income tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority within a single taxable entity or our company intends to settle its current tax assets and liabilities on a net basis in the case where there exist different taxable entities in the same taxation authority and when there is a legally enforceable right to set off current tax assets against current tax liabilities. o) Assets Held for Sale Non-current assets and disposal groups are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the non-current asset or disposal group is available for immediate sale in its present condition. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification subject to limited exceptions. When our company is committed to a sale plan involving loss of control of a subsidiary, all of the assets and liabilities of that subsidiary are classified as held for sale when the criteria described above are met, regardless of whether our company will retain a non-controlling interest in its former subsidiary after the sale. Non-current assets and disposal groups classified as held for sale are measured at the lower of their previous carrying amount and fair value less costs to sell. Non-current assets classified as held for sale and the assets of a disposal group are presented separately from other assets in the Statements of Financial Position and are classified as current. The liabilities of a disposal group classified as held for sale are presented separately from other liabilities in the Statements of Financial Position. Once classified as held for sale, property, plant and equipment and intangible assets are not depreciated or amortized, respectively. p) Provisions Provisions are recognized when our company has a present obligation, either legal or constructive, as a result of a past event, it is probable that our company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the obligation, its carrying amount is the present value of those cash flows. When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognized as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably. q) Earnings per Share Our company’s basic and diluted earnings per share have not been presented in the consolidated financial statements. As outlined in Note 13, Financial Liabilities , and Note 18, Equity , exchangeable and class B shares are classified as financial liabilities, while class C shares are classified as financial liabilities, but presented as equity instruments given the narrow scope presentation exceptions existing in IAS 32. As each share classification represents a financial liability, they do not constitute ordinary shares. Refer to the aforementioned notes for further details. r) Operating Segments IFRS 8, Operating Segments , requires operating segments to be determined based on information that is regularly reviewed by the Chief Operating Decision Maker for the purpose of allocating resources to the segment and to assess its performance. Our company has one reportable and operating segment. s) Significant Accounting Judgments and Key Sources of Estimation Uncertainty The preparation of financial statements requires management to make significant judgments, estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses that are not readily apparent from other sources, during the reporting period. These estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. Significant judgments and estimates made by management and utilized in the normal course of preparing our company’s consolidated financial statements are outlined below. a) Common control transactions IFRS 3 (2008), Business Combinations does not include specific measurement guidance for transfers of businesses or subsidiaries between entities under common control. Accordingly, our company has developed a policy to account for such transactions taking into consideration other guidance in the IFRS framework and pronouncements of other standard-setting bodies. Our company’s policy is to record assets and liabilities recognized as a result of transactions between entities under common control at the carrying value on the transferor’s financial statements, and to have the consolidated statements of financial position, operating results, changes in equity and cash flows reflect the results of combining entities for all periods presented for which the entities were under the transferor’s common control, irrespective of when the combination takes place. b) Financial instruments Our company’s accounting policies relating to derivative financial instruments are described in Note 3(m), Financial Instruments and Hedge Accounting . The significant judgments inherent in these policies relate to applying the criteria to the assessment of the effectiveness of hedging relationships. Estimates and assumptions used in determining the fair value of financial instruments are equity and commodity prices; future interest rates; the credit worthiness of our company relative to its counterparties; the credit risk of our company and counterparty; estimated future cash flows; and discount rates. c) Revaluation of property, plant and equipment Property, plant and equipment is revalued on a regular basis. The significant estimates and assumptions underlying the valuation of property, plant and equipment are set out in Note 8, Property Plant and Equipment. d) Fair values in business combinations Our company accounts for business combinatio |
ACQUISITION OF BUSINESSES
ACQUISITION OF BUSINESSES | 12 Months Ended |
Dec. 31, 2023 | |
ACQUISITION OF BUSINESS [Abstract] | |
ACQUISITION OF BUSINESSES | ACQUISITION OF BUSINESSES Acquisitions Completed in 2023 a) Acquisition of a Global Intermodal Logistics Operation On September 28, 2023, our company, alongside institutional partners (the “Triton consortium”) completed the acquisition of Triton International Limited (“Triton”), the world’s largest owner and lessor of intermodal shipping containers, for consideration of $1.2 billion (Triton consortium - $4.5 billion). Our company has an effective 28% interest in Triton. Concurrently, our company entered into a voting agreement with an affiliate of Brookfield, providing our company the right to direct the relevant activities of the entity, thereby providing our company with control. Accordingly, our company consolidated the entity effective September 28, 2023. Acquisition costs of approximately $49 million were recorded as other (expense) income within the Consolidated Statement of Operating Results. Consideration Transferred: US$ MILLIONS Cash $ 350 BIPC exchangeable shares 751 Pre-existing interest in the business 55 Total consideration $ 1,156 Fair value of assets and liabilities acquired (provisional) (1) : US$ MILLIONS Cash and cash equivalents $ 491 Accounts receivable and other (2) 1,871 Property, plant and equipment 8,811 Intangible assets 710 Goodwill 1,163 Accounts payable and other liabilities (408) Non-recourse borrowings (7,041) Deferred income tax liabilities (444) Net assets acquired before non-controlling interest 5,153 Non-controlling interest (3) (3,997) Net assets acquired $ 1,156 (1) The fair values of certain acquired assets and liabilities for these operations have been determined on a provisional basis given the proximity of the acquisitions to the reporting date, pending finalization of the determination of the fair values of the acquired assets and liabilities. Our company is in the process of obtaining additional information primarily in order to assess the fair values of property, plant and equipment, intangible assets, deferred income taxes and the resulting impact to goodwill as at the date of the acquisitions. (2) Accounts receivable and other primarily comprised of finance lease receivables, trade receivables, and other financial assets. (3) Non-controlling interest includes $641 million of preferred equity instruments transferred as part of the acquisition, remaining balance represents the interest not acquired by our company, measured at fair value at the acquisition dates. Our company acquired intangible assets of $0.7 billion, comprising of customer relationships, brand and technology. The customer relationships acquired in the transaction were valued using a discounted cash flow model and have estimated useful lives of 50 years. The acquired customer relationship assets were valued with key inputs of revenue growth rates, customer attrition rates, and a discount rate determined using a capital asset pricing model. The brand and technology acquired were valued using a discounted cash flow model and have estimated useful lives ranging between 10 to 50 years with the key inputs being technology migration factors, revenue growth rates, after-tax royalty rates and a discount rate determined using a capital asset pricing model. The goodwill recorded on acquisition is largely reflective of Triton’s potential to achieve fleet growth over time, supported by underlying global economic growth and expansion of the services we provide and markets we operate in. The goodwill recognized is not deductible for income tax purposes. Supplemental Information Had the acquisition of Triton been effective January 1, 2023, the revenue and net income of our company would have increased by approximately $1,183 million and $378 million, respectively, for the year ended December 31, 2023. In determining the pro-forma revenue and net income attributable to the partnership, management has: • Calculated depreciation of property, plant and equipment and amortization of intangible assets acquired on the basis of the fair values at the time of the business combination rather than the carrying amounts recognized in the pre-acquisition financial statements and; • Based borrowing costs on the funding levels, credit ratings and debt and equity position of our company after the business combination. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 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 Statements of Financial Position. Changes in the fair values of financial instruments classified as fair value through profit or loss are recognized in profit or loss. Mark-to-market adjustments on hedging items for those in an effective hedging relationship and changes in the fair value of securities designated as fair value through other comprehensive income are recognized in other comprehensive income. Carrying Value and Fair Value of Financial Instruments The following table provides the allocation of financial instruments and their associated financial instrument classifications as at December 31, 2023: US$ MILLIONS Financial Instrument Classification MEASUREMENT BASIS Fair value through profit or loss Amortized Cost Total Financial assets Cash and cash equivalents $ — $ 539 $ 539 Accounts receivable and other (current and non-current) — 2,218 2,218 Financial assets (current and non-current) (1) 103 — 103 Due from Brookfield Infrastructure — 1,288 1,288 Total $ 103 $ 4,045 $ 4,148 Financial liabilities Accounts payable and other (current and non-current) $ — $ 837 $ 837 Non-recourse borrowings (current and non-current) — 12,028 12,028 Exchangeable and class B shares (2) — 4,153 4,153 Financial liabilities (current and non-current) (1) 75 — 75 Loans payable to Brookfield Infrastructure — 26 26 Total $ 75 $ 17,044 $ 17,119 (1) Derivative instruments which are elected for hedge accounting totaling $103 million are included in financial assets and $75 million are included in financial liabilities. (2) Class C shares are also classified as financial liabilities due to their cash redemption feature. As discussed in Note 1(b)(ii), Organization and Description of our Company, the class C shares meet certain qualifying criteria and are presented as equity. See Note 18, Equity. The following table provides the allocation of financial instruments and their associated financial instrument classifications as at December 31, 2022: US$ 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 — 4,577 4,577 Exchangeable and class B shares (2) — 3,426 3,426 Financial liabilities (current and non-current) (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 $72 million are included in financial liabilities. (2) Class C shares are also classified as financial liabilities due to their cash redemption feature. As discussed in Note 1(b)(ii), Organization and Description of our Company, the class C shares meet certain qualifying criteria and are presented as equity. See Note 18, Equity. The following table provides the carrying values and fair values of financial instruments as at December 31, 2023 and December 31, 2022: Dec. 31, 2023 Dec. 31, 2022 US$ MILLIONS Carrying Value Fair Value Carrying Value Fair Value Financial assets Cash and cash equivalents $ 539 $ 539 $ 445 $ 445 Accounts receivable and other (current and non-current) 2,218 2,218 441 441 Financial assets (current and non-current) 103 103 97 97 Due from Brookfield Infrastructure 1,288 1,288 566 566 Total $ 4,148 $ 4,148 $ 1,549 $ 1,549 Dec. 31, 2023 Dec. 31, 2022 US$ MILLIONS Carrying Value Fair Value Carrying Value Fair Value Financial liabilities Accounts payable and other (current and non-current) $ 837 $ 837 $ 589 $ 589 Non-recourse borrowings (current and non-current) (1) 12,028 11,836 4,577 4,303 Exchangeable and class B shares (2) 4,153 4,153 3,426 3,426 Financial liabilities (current and non-current) 75 75 72 72 Loans payable to Brookfield Infrastructure 26 26 26 26 Total $ 17,119 $ 16,927 $ 8,690 $ 8,416 (1) Non-recourse borrowings are classified under level 2 of the fair value hierarchy, with the exception of certain borrowings at our global intermodal logistics operation, which are classified under level 1. For level 2 fair values, future cash flows are estimated based on observable forward interest rates at the end of the reporting period. (2) Class C shares are also classified as financial liabilities due to their cash redemption feature. As discussed in Note 1(b)(ii), Organization and Description of our Company, the class C shares meet certain qualifying criteria and are presented as equity. Hedging Activities Our company uses derivatives and non-derivative financial instruments to manage or maintain exposures to interest and currency risks. For certain derivatives which are used to manage exposures, our company determines whether hedge accounting can be applied. When hedge accounting can be applied, a hedge relationship can be designated as a fair value hedge, cash flow hedge or a hedge of foreign currency exposure of a net investment in a foreign operation with a functional currency other than the U.S. dollar. To qualify for hedge accounting, the derivative must be designated as a hedge of a specific exposure and the hedging relationship must meet all of the hedge effectiveness requirements in accomplishing the objective of offsetting changes in the fair value or cash flows attributable to the hedged risk both at inception and over the life of the hedge. If it is determined that the hedging relationship does not meet all of the hedge effectiveness requirements, hedge accounting is discontinued prospectively. Cash Flow Hedges Our company uses interest rate swaps to hedge the variability in cash flows related to a variable rate asset or liability and highly probable forecasted issuances of debt. The settlement dates coincide with the dates on which the interest is payable on the underlying debt, and the amount accumulated in equity is reclassified to profit or loss over the period that the floating rate interest payments on debt affect profit or loss. For the year ended December 31, 2023, pre-tax net unrealized losses of $24 million (2022: losses of $58 million, 2021: gains of $nil) were recorded in other comprehensive income for the effective portion of the cash flow hedges. As at December 31, 2023, there was a net derivative asset balance of $28 million relating to derivative contracts designated as cash flow hedges (2022: $25 million). Fair Value Hierarchical Levels—Financial Instruments Fair value hierarchical levels are directly determined by the amount of subjectivity associated with the valuation inputs of these assets and liabilities, and are as follows: Level 1 — Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 — Inputs other than quoted prices included in Level 1 are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. Fair valued assets and liabilities that are included in this category are primarily certain derivative contracts and other financial assets carried at fair value in an inactive market. Level 3 — Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to determining the estimate. Fair valued assets and liabilities that are included in this category are interest rate swap contracts, derivative contracts, certain equity securities carried at fair value which are not traded in an active market and the non-controlling interest’s share of net assets of limited life funds. The fair value of our company’s financial assets and financial liabilities are measured at fair value on a recurring basis. The following table summarizes the valuation techniques and significant inputs for our company’s financial assets and financial liabilities: US$ MILLIONS Fair value hierarchy Dec. 31, 2023 Dec. 31, 2022 Interest rate swaps & other Level 2 (1) Financial assets $ 103 $ 97 Financial liabilities 75 72 (1) Valuation technique: Discounted cash flow. Future cash flows are estimated based on forward exchange rates (from observable forward exchange rates at the end of the reporting period) and contract forward rates, discounted at a rate that reflects our credit risk and the credit risk of various counterparties. During the year, no transfers were made between level 1 and 2 or level 2 and 3. |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 12 Months Ended |
Dec. 31, 2023 | |
Cash and cash equivalents [abstract] | |
CASH AND CASH EQUIVALENTS | CASH AND CASH EQUIVALENTS As of December 31, US$ MILLIONS 2023 2022 Cash $ 111 $ 4 Cash equivalents (1) 428 441 Total cash and cash equivalents $ 539 $ 445 (1) Short-term, highly liquid investments with maturities of less than 90 days at acquisition that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. |
ACCOUNTS RECEIVABLE AND OTHER
ACCOUNTS RECEIVABLE AND OTHER | 12 Months Ended |
Dec. 31, 2023 | |
Subclassifications of assets, liabilities and equities [abstract] | |
ACCOUNTS RECEIVABLE AND OTHER | ACCOUNTS RECEIVABLE AND OTHER As of December 31, US$ MILLIONS 2023 2022 Current: Accounts receivable (1) $ 797 $ 441 Finance lease receivables 91 — Prepayments & other assets 51 58 Total current $ 939 $ 499 Non-current: Finance lease receivables $ 1,239 $ — Restricted cash (2) 91 — Other assets 94 17 Total non-current $ 1,424 $ 17 (1) Includes $291 million (2022: $254 million) receivable from one customer. Please refer to Note 16 for revenues attributable to this customer. (2) Restricted cash primarily relates to our company’s financing arrangements, including debt service accounts. Cash that becomes unrestricted within one year of the reporting date is classified as cash and cash equivalents. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2023 | |
Property, plant and equipment [abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT US$ 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 468 15 — 483 Acquisitions through business combinations (1) 8,811 — — 8,811 Non-cash additions (11) (5) — (16) Depreciation expense — (252) — (252) Fair value adjustments — — 142 142 Net foreign currency exchange differences 223 (41) 83 265 Balance at December 31, 2023 $ 13,438 $ (990) $ 1,703 $ 14,151 (1) See Note 4, Acquisition of Businesses, for additional information. Our company’s property, plant, and equipment is measured at fair value on a recurring basis with an effective date of revaluation for all asset classes of December 31, 2023 and 2022. Our company determined fair value under the income method. Assets under development were revalued where fair value could be reliably measured. The following table summarizes the valuation techniques and significant inputs for our company’s property, plant and equipment assets. Dec. 31, 2023 Dec. 31, 2022 Valuation Discount Terminal Investment Valuation Discount Terminal Investment Discounted cash flow model 8% 15x 10 yrs Discounted cash flow model 7% 18x 10 yrs An increase in the discount rate would lead to a decrease in the fair value of property, plant and equipment. Conversely, an increase to the terminal value multiple would increase the fair value of property, plant and equipment. Our company has classified all property, plant and equipment under level 3 of the fair value hierarchy. At December 31, 2023, our company carried out an assessment of the fair value of its property, plant and equipment, resulting in a gain from revaluation of $142 million (2022: $100 million) which was recognized in revaluation surplus in the Consolidated Statements of Comprehensive Income. Our valuation of property, plant and equipment is underpinned by stable cash flows as we earn a regulated return on an asset base for making the infrastructure available to users with minimal volume and price risk. Key drivers behind the revaluation gain recorded include growth in underlying cash flows at our U.K. regulated distribution business associated with new connections added during the year and increased tariffs. Had the assets been carried under the cost model, the carrying amount of property, plant and equipment would have been $12,700 million as at December 31, 2023 (2022: $3,449 million). |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets [Abstract] | |
INTANGIBLE ASSETS | INTANGIBLE ASSETS As of US$ MILLIONS Dec. 31, 2023 Dec. 31, 2022 Cost $ 4,657 $ 3,629 Accumulated amortization (958) (782) Total $ 3,699 $ 2,847 Intangible assets are allocated to the following cash generating units: As of US$ MILLIONS Dec. 31, 2023 Dec. 31, 2022 Brazilian regulated gas transmission operation $ 2,970 $ 2,816 Global intermodal logistics operation (1) 704 — U.K. regulated distribution operation 25 31 Total $ 3,699 $ 2,847 (1) See Note 4, Acquisition of Businesses, for additional information. The intangible assets at our Brazilian regulated transmission operation relate to concession arrangements with the local energy regulator, Agência Nacional do Petróleo, Gás Natural e Biocombustíveis (“ANP”). Total capacity is fully contracted under long-term “ship-or-pay” gas transportation agreements (“GTA”) and therefore, the business is exposed to no volume risk, with predefined tariffs annually adjusted by inflation. On April 8, 2021, new legislation was passed in Brazil which provides our Brazilian regulated gas transmission operation the right to operate the gas pipelines perpetually. The intangible assets are amortized on a straight-line basis over the estimated useful life of the underlying infrastructure. The intangible asset at our global intermodal logistics operations primarily relate to customer relationships, which represent the on-going economic benefit from our leasing contracts with customers, in addition to brand, and developed technology. The intangibles are amortized on a straight-line basis over the estimated useful life. 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, with no impairment required during the year ended December 31, 2023. Our intangible assets represent long-term critical infrastructure supported by regulated or highly contracted revenues which help protect value over the long term. The following table presents the change in the cost balance of intangible assets: For the year ended US$ MILLIONS Dec. 31, 2023 Dec. 31, 2022 Cost at beginning of the year $ 3,629 $ 3,332 Acquisitions through business combinations (1) 710 — Additions, net of disposals 36 81 Foreign currency translation 282 216 Cost at end of year $ 4,657 $ 3,629 (1) See Note 4, Acquisition of Businesses, for additional information. The following table presents the accumulated amortization for our company’s intangible assets: For the year ended US$ MILLIONS Dec. 31, 2023 Dec. 31, 2022 Accumulated amortization at beginning of year $ (782) $ (645) Amortization (113) (101) Foreign currency translation (63) (36) Accumulated amortization at end of year $ (958) $ (782) |
INVESTMENTS IN ASSOCIATES
INVESTMENTS IN ASSOCIATES | 12 Months Ended |
Dec. 31, 2023 | |
Interests In Other Entities [Abstract] | |
INVESTMENTS IN ASSOCIATES | INVESTMENTS IN ASSOCIATES The following table represents the change in balance of investments in associates: For the year ended US$ MILLIONS Dec. 31, 2023 Dec. 31, 2022 Balance at the beginning of the period $ 428 $ — Acquisitions — 455 Share of (losses) earnings for the year (20) 4 Foreign currency translation & other 25 (25) Share of other comprehensive (loss) income (27) 27 Distributions (3) (33) Disposition of interest (403) — Ending Balance $ — $ 428 In February 2022, our company acquired a 7.9% 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 accounted for the entity. On August 31, 2023, our company sold its interest for net proceeds of approximately $435 million. On disposition, our company recognized a gain of $32 million in the consolidated statement of operating results and accumulated currency translation losses of $28 million were reclassified from accumulated other comprehensive income to the consolidated statement of operating results. As at December 31, 2023, our company does not hold any investments in associates. The following table presents the gross assets and liabilities of our company’s investments in associates as at December 31, 2022: As at December 31, 2022 Total Attributable to US$ MILLIONS Ownership Interest Current Non- Total Current Non- Total Total Other Brookfield Infrastructure Partners LP Australian regulated utility 8% $ 211 $ 13,330 $ 13,541 $ 302 $ 7,716 $ 8,018 $ 5,523 $ 5,095 $ 428 Total $ 211 $ 13,330 $ 13,541 $ 302 $ 7,716 $ 8,018 $ 5,523 $ 5,095 $ 428 The following tables present the gross amounts of revenue, net income, other comprehensive income from our company’s investments in associates: Year ended December 31, 2023 Total Net income attributable to the Partnership (1) US$ MILLIONS Revenue Net OCI Total Comprehensive Income Australian regulated utility $ 1,008 $ 99 $ (375) $ (276) $ (20) Total $ 1,008 $ 99 $ (375) $ (276) $ (20) (1) Our company’s share of net income for the year ended December 31, 2023 includes $28 million of accumulated currency translation losses which were reclassified from accumulated other comprehensive income to the consolidated statement of operating results on disposition of our company’s interest in AusNet. Year ended December 31, 2022 Total Net income attributable to the Partnership US$ MILLIONS Revenue Net Income (1) OCI Total Comprehensive Income Australian regulated utility $ 1,227 $ 57 $ 21 $ 78 $ 4 Total $ 1,227 $ 57 $ 21 $ 78 $ 4 (1) Total net income for the year ended December 31, 2022 includes acquisition-related transaction costs of $105 million. The following tables present the cash flow activities of our company’s investments in associates for the years ended: Year ended December 31, 2023 Total Attributable to US$ MILLIONS Operating Investing Financing Total Cash Flows Other Brookfield Infrastructure Partners LP Australian regulated utility $ 380 $ (395) $ 1 $ (14) $ (13) $ (1) Total $ 380 $ (395) $ 1 $ (14) $ (13) $ (1) Year ended December 31, 2022 Total Attributable to US$ MILLIONS Operating Investing Financing Total Cash Flows Other Brookfield Infrastructure Partners LP Australian regulated utility $ 427 $ (452) $ (162) $ (187) $ (172) $ (15) Total $ 427 $ (452) $ (162) $ (187) $ (172) $ (15) |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets [Abstract] | |
GOODWILL | GOODWILL The following table presents the carrying amount for our company’s goodwill: As of US$ MILLIONS Dec. 31, 2023 Dec. 31, 2022 Balance at beginning of the year $ 518 $ 489 Acquisitions through business combinations (1) 1,163 — Foreign currency translation and other 45 29 Balance at end of the year $ 1,726 $ 518 (1) See Note 4, Acquisition of Businesses, for additional information. Goodwill is evaluated for impairment annually or more often if events or circumstances indicate there may be impairment. Impairment is determined by assessing if the carrying value of cash generating units or a group of cash generating units, including the allocated goodwill, exceeds its recoverable amount determined as the greater of the estimated fair value less costs of disposal or the value in use. During 2023, the recoverable amount exceeded the carrying amount of each cash generating unit. Goodwill is allocated to the following cash generating units or group of cash generating units: As of US$ MILLIONS Dec. 31, 2023 Dec. 31, 2022 Global intermodal logistics operation (1) $ 1,163 $ — Brazilian regulated gas transmission operation 526 488 U.K. regulated distribution operation 37 30 Total $ 1,726 $ 518 (1) See Note 4, Acquisition of Businesses, for additional information. The recoverable amount of the goodwill has been determined using a discounted cash flow model whereby the fair value measurement is classified under level 3 on the fair value hierarchy. The key inputs in determining the fair value of each cash generating unit under the discounted cash flow model are the utilization of discount rates ranging from 11% to 17%, terminal value multiples of 10x to 15x and discrete cash flow periods from 9 to 18 years. |
ACCOUNTS PAYABLE AND OTHER
ACCOUNTS PAYABLE AND OTHER | 12 Months Ended |
Dec. 31, 2023 | |
Subclassifications of assets, liabilities and equities [abstract] | |
ACCOUNTS PAYABLE AND OTHER | ACCOUNTS PAYABLE AND OTHER As of US$ MILLIONS Dec. 31, 2023 Dec. 31, 2022 Current: Accounts payable $ 85 $ 44 Accrued & other liabilities 759 562 Deferred revenue (1) 255 175 Total current $ 1,099 $ 781 Non-current: Deferred revenue (1) $ 264 $ 77 Provisions & other liabilities 61 42 Total non-current $ 325 $ 119 (1) Deferred revenue relates primarily to cash contributions from third parties to build future natural gas and electricity connections at our company’s U.K. regulated distribution operation and advance customer payments for container leases at our global intermodal logistics operation. The deferred revenue is recorded on receipt of cash payments and recognized as revenue as services are rendered over the life of the connections arrangement. Of the deferred revenue outstanding at December 31, 2023, 49% is estimated to be realized during 2024, 28% during 2025, 8% during 2026, and 15% will be realized in more than 3 years. Our company’s exposure to currency and liquidity risk related to trade and other payables is disclosed in Note 24, Financial Risk Management. |
FINANCIAL LIABILITIES
FINANCIAL LIABILITIES | 12 Months Ended |
Dec. 31, 2023 | |
Financial Instruments [Abstract] | |
FINANCIAL LIABILITIES | FINANCIAL LIABILITIES As of US$ MILLIONS Dec. 31, 2023 Dec. 31, 2022 Current: Interest rate swaps $ 60 $ 72 Total current financial liabilities $ 60 $ 72 Non-current: Interest rate swaps $ 15 $ — Total non-current financial liabilities $ 15 $ — 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 Ltd. (“IPL”) for consideration comprised of cash, exchangeable shares and class B exchangeable limited partnership units (“BIPC Exchangeable LP Units”) of Brookfield Infrastructure Corporation Exchange Limited Partnership (“BIPC Exchange LP”). BIPC Exchange LP is a subsidiary of the partnership and holders of BIPC Exchangeable LP Units have the right to require the partnership to purchase BIPC Exchangeable LP Units and deliver one exchangeable share for each BIPC Exchangeable LP Unit purchased. During the year ended December 31, 2023, our company issued 220,956 exchangeable shares in connection with exchange requests from BIPC Exchange LP unitholders. Upon issuance, the exchangeable shares were recognized at their fair value. In November 2021, our company issued 3.2 million exchangeable shares in public offerings in the U.S. and Canada. In total, $134 million of gross proceeds were raised through the issuance and $6 million in equity issuance costs were incurred. In September 2023, our company issued approximately 21.1 million exchangeable shares in connection with the acquisition of our global intermodal logistics operation. In addition, our company issued approximately 9 million class C shares to Brookfield Infrastructure to partially finance the acquisition. During the year ended December 31, 2023, our shareholders exchanged 11,002 exchangeable shares for an equal number of partnership units. As at December 31, 2023, the exchangeable and class B shares were remeasured to reflect the NYSE closing price of one unit, $31.49 per share. Remeasurement gains or losses associated with these shares are recorded in the Consolidated Statements of Operating Results. Our company declared and paid dividends of $178 million on its exchangeable shares outstanding during the year ended December 31, 2023 (2022: $158 million, 2021: $115 million). Dividends paid on exchangeable shares are presented as interest expense in the 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 (1) 21,094,441 — 751 Share issuance - BIPC Exchangeable LP Unit exchanges 220,956 — 10 Shares exchanged to units (11,002) — — Remeasurement of liability — — (34) Balance at December 31, 2023 131,872,066 2 $ 4,153 (1) Refer to Note 4, Acquisition of Businesses, for further details Similar to class B shares, class C shares are classified as liabilities due to their cash redemption feature. However, class C shares, the most subordinated class of all common shares, meet certain qualifying criteria and are presented as equity instruments given the narrow scope presentation exceptions existing in IAS 32. Refer to Note 18, Equity, for further details related to class C shares. |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2023 | |
Financial Instruments [Abstract] | |
BORROWINGS | BORROWINGS (a) Non-Recourse Borrowings The current and non-current balances of non-recourse borrowings are as follows: As of US$ MILLIONS Dec. 31, 2023 Dec. 31, 2022 Current $ 1,021 $ 328 Non-current 11,007 4,249 Total $ 12,028 $ 4,577 Non-recourse borrowings increased by $7.5 billion since December 31, 2022. The increase is primarily attributable to approximately $7 billion of borrowings related to the acquisition of our global intermodal logistics operation in September and incremental net borrowings of approximately $0.5 billion. Refer to Note 22, Related Party Transactions , for further details on our related party debt. Principal repayments on non-recourse borrowings due over the next five years and thereafter are as follows: US$ MILLIONS Total 2024 $ 1,203 2025 917 2026 2,556 2027 1,697 2028 1,085 Thereafter 5,346 Total principal repayments 12,804 Deferred financing costs and other (776) Total - Dec. 31, 2023 $ 12,028 Total - Dec. 31, 2022 $ 4,577 The weighted average interest rates of non-recourse borrowings are as follows: As of December 31, 2023 2022 Weighted average interest rates 5 % 8 % Principal repayments on non-recourse borrowings in their local currency are as follows: US$ MILLIONS, except as noted Dec. 31, 2023 Local Currency Dec. 31, 2022 Local Currency U.S. dollars $ 8,517 USD $ 8,517 $ 1,049 USD $ 1,049 British pounds 2,744 GBP 2,155 2,003 GBP 1,658 Brazilian real 1,543 BRL 7,467 1,543 BRL 8,047 (b) Supplemental Information Details of the “Changes in liabilities from financing activities”, including both changes arising from cash flows and non-cash changes are as follows: US$ MILLIONS Dec. 31, 2023 Cash Flows Acquisitions Foreign Exchange Movement Dec. 31, 2022 Non-recourse borrowings $ 12,028 $ 177 $ 7,041 $ 233 $ 4,577 US$ MILLIONS Dec. 31, 2022 Cash Flows Acquisitions Foreign Exchange Movement Dec. 31, 2021 Non-recourse borrowings $ 4,577 $ 1,083 $ — $ (62) $ 3,556 |
NON-WHOLLY OWNED SUBSIDIARIES
NON-WHOLLY OWNED SUBSIDIARIES | 12 Months Ended |
Dec. 31, 2023 | |
Interests In Other Entities [Abstract] | |
NON-WHOLLY OWNED SUBSIDIARIES | NON-WHOLLY OWNED SUBSIDIARIES The following tables present summarized accounts for non-wholly owned subsidiaries on the Consolidated Statements of Financial Position: As of December 31, 2023 US$ MILLIONS Current Non-Current Current Non-Current Non-Controlling Equity in Net Assets Attributable to the partnership Brazilian regulated gas transmission operation $ 747 $ 3,576 $ 549 $ 3,099 $ 526 $ 149 U.K. regulated distribution operation 312 5,579 387 3,744 344 1,416 Global intermodal logistics operation (1) 435 11,950 984 6,639 3,597 1,165 Total $ 1,494 $ 21,105 $ 1,920 $ 13,482 $ 4,467 $ 2,730 (1) See Note 4, Acquisition of Businesses, for additional information. As of December 31, 2022 US$ MILLIONS Current Non-Current Current Non-Current Non-Controlling Equity in Net Assets Attributable to the partnership Brazilian regulated gas transmission operation $ 737 $ 3,362 $ 486 $ 3,034 $ 460 $ 119 U.K. regulated distribution operation 264 4,821 690 2,864 298 1,233 Total $ 1,001 $ 8,183 $ 1,176 $ 5,898 $ 758 $ 1,352 The following tables present summarized accounts for non-wholly owned subsidiaries on the Consolidated Statements of Operating Results: Year ended December 31, 2023 Attributable to non-controlling interest Attributable to US$ MILLIONS Revenue Net Other Net Other Brazilian regulated gas transmission operation $ 1,483 $ 455 $ 44 $ 202 $ 19 U.K. regulated distribution operation 635 19 38 78 154 Global intermodal logistics operation (1) 385 56 (33) 22 (13) Total $ 2,503 $ 530 $ 49 $ 302 $ 160 (1) See Note 4, Acquisition of Businesses, for additional information. Year ended December 31, 2022 Attributable to non-controlling interest Attributable to US$ MILLIONS Revenue Net Other Net Other Brazilian regulated gas transmission operation $ 1,314 $ 506 $ (2) $ 225 $ (1) U.K. regulated distribution operation 572 19 (20) 75 (78) Total $ 1,886 $ 525 $ (22) $ 300 $ (79) Year ended December 31, 2021 Attributable to non-controlling interest Attributable to US$ MILLIONS Revenue Net Other Net Other Brazilian regulated gas transmission operation $ 1,074 $ 361 $ (87) $ 150 $ (31) U.K. regulated distribution operation 569 34 6 138 26 Total $ 1,643 $ 395 $ (81) $ 288 $ (5) The following tables present summarized accounts for non-wholly owned subsidiaries on the Consolidated Statements of Cash Flows: Cash Flow Activities Year ended December 31, 2023 Year ended December 31, 2022 US$ MILLIONS Operating Investing Financing Operating Investing Financing Brazilian regulated gas transmission operation $ 739 $ (36) $ (742) $ 783 $ (80) $ (824) U.K. regulated distribution operation 226 (487) 309 293 (432) 101 Global intermodal logistics operation (1) 327 (3,048) 2,828 — — — Total $ 1,292 $ (3,571) $ 2,395 $ 1,076 $ (512) $ (723) (1) See Note 4, Acquisition of Businesses, for additional information. Cash Flow Activities Year ended December 31, 2021 US$ MILLIONS Operating Investing Financing Brazilian regulated gas transmission operation $ 768 $ (32) $ (473) U.K. regulated distribution operation 273 344 (582) Total $ 1,041 $ 312 $ (1,055) |
REVENUES
REVENUES | 12 Months Ended |
Dec. 31, 2023 | |
Revenue [abstract] | |
REVENUES | REVENUES a) Revenues by service line Substantially all of these revenues are recognized over time as services are rendered. The following table disaggregates revenues by service line: For the year ended December 31, US$ MILLIONS 2023 2022 2021 Gas Transmission $ 1,483 $ 1,314 $ 1,074 Distribution 397 372 374 Leasing 385 — — Connections 200 171 167 Other 38 29 28 Total $ 2,503 $ 1,886 $ 1,643 During the year ended December 31, 2023, revenues benefited from the acquisition of our global intermodal logistics operation, along with inflationary tariff increases and capital commissioned into rate base. b) Revenues from external customers The following table disaggregates revenues by geographical region. For the year ended December 31, US$ MILLIONS 2023 2022 2021 Brazil $ 1,483 $ 1,314 $ 1,074 United Kingdom 635 572 569 United States 385 — — $ 2,503 $ 1,886 $ 1,643 Our company’s customer base is comprised predominantly of investment grade companies, with only one customer that makes up greater than 10% of our company’s consolidated revenues. For the year ended December 31, 2023, revenue generated from this customer was $1,449 million (2022: $1,314 million, 2021: $1,074 million). Our company has completed a review of the credit risk of key counterparties. Based on their liquidity position, business performance, and aging of our accounts receivable, we do not have any significant changes in expected credit losses at this time. c) Non-Current Assets As of US$ MILLIONS Dec. 31, 2023 Dec. 31, 2022 United Kingdom $ 5,624 $ 4,821 Brazil 3,596 3,362 Switzerland 2,197 — France 2,170 — Singapore 1,800 — China 1,573 — Denmark 1,232 — United States 375 — Australia 5 428 Other Asia 1,270 — Other Europe 632 — Other 631 — $ 21,105 $ 8,611 |
DIRECT OPERATING COSTS
DIRECT OPERATING COSTS | 12 Months Ended |
Dec. 31, 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 years ended December 31, 2023, 2022 and 2021. US$ MILLIONS 2023 2022 2021 Depreciation and amortization $ 365 $ 211 $ 236 Transportation and distribution 195 184 162 Operations and maintenance 94 56 49 Compensation 87 59 44 Cost of inventory 2 5 8 Other 35 27 27 Total $ 778 $ 542 $ 526 |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2023 | |
Equity [abstract] | |
EQUITY | EQUITY Our company’s equity is comprised of the following shares: Class C Shares Shares outstanding (Shares) Share capital Balance at January 1, 2022 2,103,677 $ 53 Share issuance — — Balance at December 31, 2022 2,103,677 $ 53 Share issuance 9,013,983 339 Balance at December 31, 2023 11,117,660 $ 392 In conjunction with the special distribution, our company issued approximately 69.5 million exchangeable shares, 2 class B shares and 2.1 million class C shares. Due to the exchange feature of the exchangeable shares and the cash redemption feature of the class B and class C shares, the exchangeable shares, the class B shares, and the class C shares are classified as financial liabilities. However, class C shares, the most subordinated of all common shares, meet certain qualifying criteria and are presented as equity instruments given the narrow scope presentation exceptions existing in IAS 32. Refer to Note 13 , Financial Liabilities , for further details related to exchangeable and class B shares. In September 2023, our company issued 9 million class C shares to the partnership at $37.64 per share for a total value of $339 million. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes [Abstract] | |
INCOME TAXES | INCOME TAXES Income taxes are recognized for the amount of taxes payable by our company and its corporate subsidiaries, and for the impact of deferred tax assets and liabilities related to such subsidiaries. (a) Deferred Income Tax Balances The sources of deferred income tax balances are as follows: As of December 31, US$ MILLIONS 2023 2022 Deferred income tax assets Financial instruments and other $ 18 $ 41 Tax losses carried forward 38 37 $ 56 $ 78 Deferred income tax liabilities Long-lived assets $ (2,151) $ (1,573) Net deferred income tax liabilities $ (2,095) $ (1,495) Reflected in the statement of financial position as follows: Deferred tax assets $ 40 $ 43 Deferred tax liabilities (2,135) (1,538) Net deferred tax liabilities $ (2,095) $ (1,495) The deferred tax asset related to losses available for carry forward includes $38 million (2022: $37 million) of tax benefits that have been recognized based on projections of future taxable profits. The sources of deferred income tax balances and movements are as follows: Recognized in US$ MILLIONS Jan. 1, 2023 Net Other Other (1) Acquisitions/Dispositions Dec. 31, 2023 Deferred tax assets related to non-capital losses and capital losses $ 37 $ (2) $ — $ 2 $ 1 $ 38 Deferred tax liabilities related to differences in tax and book basis, net (1,532) (18) (34) (104) (445) (2,133) Net deferred tax liabilities $ (1,495) $ (20) $ (34) $ (102) $ (444) $ (2,095) Recognized in US$ MILLIONS Jan. 1, 2022 Net Other Other (1) Acquisitions/Dispositions Dec. 31, 2022 Deferred tax assets related to non-capital losses and capital losses $ 43 $ (1) $ — $ (5) $ — $ 37 Deferred tax liabilities related to differences in tax and book basis, net (1,629) 80 (14) 31 — (1,532) Net deferred tax liabilities $ (1,586) $ 79 $ (14) $ 26 $ — $ (1,495) (1) Other items relate to foreign exchange as deferred income taxes are calculated based on the functional currency of each operating entity. The amount of non-capital losses for which no deferred income tax assets have been recognized is approximately $41 million (2022: $59 million). Deferred tax assets not recognized relating to non-capital losses of $2 million (2022: $2 million) will be carried forward indefinitely and $39 million (2022: $57 million) will be carried forward for greater than five years from the reporting date. (b) Income Tax Recognized in Income or Loss The major components of income tax expense include the following: For the year ended December 31, US$ MILLIONS 2023 2022 2021 Tax expense comprises: Current income tax expense $ 348 $ 341 $ 234 Deferred income tax expense Origination and reversal of temporary differences 22 16 59 Change in tax rates or the imposition of new taxes 4 — 96 Deferred tax assets (recognized)/not recognized (6) (95) 16 Total income tax expense $ 368 $ 262 $ 405 Income tax on income before tax and non-controlling interests reconciles to tax expense as follows: Net income before income tax and non-controlling interests $ 974 $ 1,881 $ 432 Income tax expense calculated at the domestic rates applicable to profits in the country concerned 328 576 179 Change in tax rates and new legislation 4 — 96 International operations subject to different tax rates 6 (1) (2) Taxable income attributable to non-controlling interests — (2) (4) Portion of gains subject to different tax rates — — (37) Deferred tax assets (recognized)/not recognized (6) (95) 16 Foreign exchange (6) 12 2 Non-deductible dividends on exchangeable shares 47 42 30 Non-deductible remeasurement adjustments on exchangeable and class B shares (9) (280) 119 Permanent differences and other 4 10 6 Income tax expense recognized in profit or loss $ 368 $ 262 $ 405 Our company has no temporary differences associated with investments in subsidiaries for which no deferred income taxes have been provided. (c) Income Tax Recognized Directly in Other Comprehensive Income For the year ended December 31, US$ MILLIONS 2023 2022 2021 Deferred tax arising on income and expenses recognized in other comprehensive income Revaluation of property, plant and equipment $ 36 $ 25 $ 121 Cash flow hedges 6 (19) — Other (8) 8 — Total income tax recognized directly in other comprehensive income $ 34 $ 14 $ 121 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of analysis of other comprehensive income by item [abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Attributable to Brookfield Infrastructure Partners L.P. US$ MILLIONS Revaluation Foreign Cash Flow Equity accounted investments Accumulated Balance at December 31, 2021 $ 945 $ (557) $ 4 $ — $ 392 Other comprehensive income (loss) 60 (152) (21) 27 (86) Balance at December 31, 2022 $ 1,005 $ (709) $ (17) $ 27 $ 306 Other comprehensive income (loss) 85 109 — (27) 167 Balance at December 31, 2023 $ 1,090 $ (600) $ (17) $ — $ 473 |
CONTRACTUAL COMMITMENTS
CONTRACTUAL COMMITMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Contractual Commitments [Abstract] | |
CONTRACTUAL COMMITMENTS | CONTRACTUAL COMMITMENTS In the normal course of business, our company will enter into contractual obligations which include commitments relating primarily to contracted project costs for various growth initiatives such as committed expenditures associated with gas and electricity sales contracts at our U.K. regulated distribution operation. As at December 31, 2023, our company had $695 million (2022: $636 million) of commitments outstanding, of which 36% mature in less than one year, 56% between two and five years, and 8% after five years. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 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 our group. Our company pays for, or reimburses the partnership for, our proportionate share of the management fee. For purposes of calculating the base management fee, the market value of our group is equal to the aggregate value of all the outstanding units (assuming full conversion of Brookfield’s limited partnership interests in Holding 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 $63 million for the year ended December 31, 2023 (2022: $63 million, 2021: $45 million). Our company’s affiliates provide connection services in the normal course of operations on market terms to affiliates and associates of Brookfield Property Partners L.P. For the year ended December 31, 2023, revenues of less than $1 million were generated (2022: less than $1 million, 2021: less than $1 million) and $nil expenses were incurred (2022: $nil, 2021: $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 (until Canadian Dollar Offered Rate is replaced with the Canadian Overnight Repo Rate Average), or prime rate loans. Both operating facilities bear interest at the benchmark rate plus an applicable spread, in each case subject to adjustment from time to time as the parties may agree. In addition, each credit facility contemplates potential deposit arrangements pursuant to which the lender thereunder would, with the consent of a borrower, deposit funds on a demand basis to such borrower’s account at market interest rate. As at December 31, 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 December 31, 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 December 31, 2023, the balance outstanding on our deposit receivable was $1,038 million (2022: $566 million). As at December 31, 2023, the demand deposit payable to Brookfield Infrastructure was $26 million (2022: $26 million). The deposit arrangements accrue interest at 0.2% per annum. Interest on each deposit during the year ended December 31, 2023 was less than $1 million (2022: $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 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 year ended December 31, 2023 was $14 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 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 year ended December 31, 2023 was $14 million. As at December 31, 2023, our company had accounts payable of $10 million (2022: $6 million) to subsidiaries of Brookfield Infrastructure and accounts receivable of $19 million (2022: $10 million) from subsidiaries of Brookfield Infrastructure. In addition, as at December 31, 2023, our company had accounts receivable of $20 million from subsidiaries and associates of Brookfield (December 31, 2022: $nil). 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 31, 2023, our company sold its 7.9% effective interest in its Australian regulated utility operation to an affiliate of Brookfield for net proceeds of approximately $435 million. On disposition, our company recognized a gain of $32 million in the consolidated statement of operating results and accumulated currency translation losses of $28 million were reclassified from accumulated other comprehensive income to the consolidated statement of operating results. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Financial Instruments [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS Our company’s activities expose it to a variety of financial risks, including market risk (i.e. currency risk, interest rate risk, commodity risk and other price risk), credit risk and liquidity risk. Our company selectively uses derivative financial instruments principally to manage these risks. The aggregate notional amount of our company’s derivative positions at December 31, 2023 and 2022 were as follows: As of December 31, US$ MILLIONS Note 2023 2022 Interest rate swaps and other (a) $ 2,946 $ 993 $ 2,946 $ 993 The following table presents the change in fair values of our company’s derivative positions during the years ended December 31, 2023 and 2022: US$ MILLIONS Unrealized Gains Unrealized Losses Net Change During 2023 Net Change During 2022 Interest rate swaps and other $ 24 $ (36) $ (12) $ (58) $ 24 $ (36) $ (12) $ (58) (a) Interest Rates At December 31, 2023, our company held interest rate and cross currency interest rate swap contracts having an aggregate notional amount of $2,946 million (2022: $993 million). Other Information Regarding Derivative Financial Instruments The following table presents the notional amounts underlying our company’s derivative instruments by term to maturity as at December 31, 2023 and the comparative notional amounts at December 31, 2022. Our Company’s derivative instruments qualify for hedge accounting: 2023 2022 US$ MILLIONS < 1 year 1 to 5 years > 5 years Total Notional Total Notional Interest rate swaps and other $ 300 $ 1,646 $ 1,000 $ 2,946 $ 993 $ 300 $ 1,646 $ 1,000 $ 2,946 $ 993 The following table classifies derivatives elected for hedge accounting during the years ended December 31, 2023 and 2022 as either cash flow hedges or net investment hedges. Changes in the fair value of the effective portion of the hedges are recorded in either other comprehensive income or net income, depending on the hedge classification, whereas changes in the fair value of the ineffective portion of the hedge are recorded in net income: 2023 2022 AS AT AND FOR THE YEARS ENDED (US$ MILLIONS) Notional Effective Ineffective Notional Effective Ineffective Cash flow hedges $ 2,946 $ (24) $ — $ 993 $ (58) $ — Our company settles the difference between the contracted fixed and floating rates of its interest rate swaps on a net basis. All interest rate swap contracts exchanging floating rate interest amounts for fixed rate interest amounts are designated as cash flow hedges in order to reduce our company’s cash flow exposure resulting from variable interest rates on borrowings. The interest rate swaps and the interest payments on the borrowings occur simultaneously and the amount accumulated in equity is reclassified to profit or loss over the period that the floating rate interest payments on borrowings affect profit or loss. |
FINANCIAL RISK MANAGEMENT
FINANCIAL RISK MANAGEMENT | 12 Months Ended |
Dec. 31, 2023 | |
Financial Instruments [Abstract] | |
FINANCIAL RISK MANAGEMENT | FINANCIAL RISK MANAGEMENT Our company is exposed to the following risks as a result of holding financial instruments: capital risk; liquidity risk; market risk (i.e. interest rate risk and foreign currency risk); and credit risk. The following is a description of these risks and how they are managed: (a) Liquidity Risk Management Our company manages its capital structure to be able to continue as a going concern while maximizing the return to stakeholders. Our company’s overall capital strategy is consistent with that of the partnership which remains unchanged from 2022. The capital structure of our company consists of debt, offset by cash and cash equivalents, exchangeable and class B shares, loans payable to Brookfield Infrastructure and share capital comprised of issued capital and accumulated gains. US$ MILLIONS 2023 2022 Non-recourse borrowings $ 12,028 $ 4,577 Cash and cash equivalents (539) (445) Net debt 11,489 4,132 Exchangeable and class B shares 4,153 3,426 Loans payable to Brookfield Infrastructure 26 26 Total equity 4,068 (361) Total capital and net debt $ 19,736 $ 7,223 Net debt to capitalization ratio 58 % 57 % The Board of Directors, along with senior management of the Service Providers, reviews our company’s capital structure and as part of this review, considers the cost of capital and the risk associated with each class of capital. Our company manages its debt exposure by financing its operations on a non-recourse basis with prudent levels of debt, ensuring a diversity of funding sources as well as laddering its maturity profile to minimize refinance risk. Our company also borrows in the currency where the asset operates, where possible, in order to hedge its currency risk. Our company’s financing plan is to fund its recurring growth capital expenditures with cash flow generated by its operations after maintenance capital expenditure, as well as debt financing that is sized to maintain its credit profile. To fund large scale development projects and acquisitions, our company will evaluate a variety of capital sources including funding from the partnership, proceeds from selling non-core assets, equity and debt financing. Our company will seek to raise additional equity if the company believes it can earn returns on these investments in excess of the cost of the incremental capital. The following tables detail the contractual maturities for our company’s financial liabilities. The tables reflect the undiscounted cash flows of financial liabilities based on the earliest date on which our company can be required to pay. The tables include both interest and principal cash flows: Less than 1-2 years 2-5 years 5+ years Total December 31, 2023 US$ MILLIONS Accounts payable and other liabilities $ 821 $ 5 $ 4 $ 7 $ 837 Non-recourse borrowings 1,203 917 5,338 5,346 12,804 Financial liabilities 60 1 13 1 75 Exchangeable and class B shares 4,153 — — — 4,153 Loans payable to Brookfield Infrastructure 26 — — — 26 Interest Expense: Non-recourse borrowings 662 588 1,214 988 3,452 Less than 1-2 years 2-5 years 5+ years Total December 31, 2022 US$ MILLIONS Accounts payable and other liabilities $ 586 $ 2 $ 1 $ — $ 589 Non-recourse borrowings 330 178 1,231 2,856 4,595 Financial liabilities 72 — — — 72 Exchangeable and class B shares 3,426 — — — 3,426 Loans payable to Brookfield Infrastructure 26 — — — 26 Interest Expense: Non-recourse borrowings 133 67 179 333 712 (b) Market Risk Market risk is defined for these purposes as the risk that the fair value or future cash flows of a financial instrument held by our company will fluctuate because of the change in market prices. Market risk includes the risk of changes in interest rates, foreign currency exchange rates and equity prices. Our company seeks to minimize the risks associated with foreign currency exchange rates and interest rates primarily through the use of derivative financial instruments to hedge these risk exposures. The use of financial derivatives is governed by the group’s Treasury Policy. Our company does not enter into, or trade financial instruments, including derivative financial instruments, for speculative purposes. The Treasury Policy provides written principles on the use of financial derivatives. With respect to its treasury policy, the Service Providers performs the monitoring, review and approval role and report to our board on a regular basis. Financial instruments held by our company that are subject to market risk include other financial assets, borrowings, derivative instruments, such as interest rate and foreign currency contracts. Interest Rate Risk Management Our company’s primary objectives with respect to interest rate risk management are to ensure that: • Our company is not exposed to interest rate movements that could adversely impact its ability to meet financial obligations; • Earnings and distributions are not adversely affected; • Volatility of debt servicing costs is managed within acceptable parameters; and • All borrowing covenants under various borrowing facilities, including interest coverage ratios, are complied with. To achieve these objectives, in general terms, our company’s funding mix comprises both fixed and floating rate debt. Fixed rate debt is achieved either through fixed rate debt funding or through the use of financial derivative instruments. In addition, where possible, interest rate risk is minimized by matching the terms of interest rate swap contracts in regulated businesses to the term of the rate period, thus providing natural hedges. The sensitivity analyses below reflect our company’s exposure to interest rates for both derivative and non-derivative instruments at the reporting date, assuming that a 50 basis point increase or decrease in rates takes place at the beginning of the financial year and is held constant throughout the reporting period. The sensitivity analyses assume a 50 basis point change to reflect the current methodology employed by our company in assessing interest rate risk. Such parallel shift in the yield curve by 50 basis points would have had the following impact, assuming all other variables were held constant: 2023 US$ MILLIONS 50 bp decrease 50 bp increase Net income (loss) to the partnership (1) $ 4 $ (4) Other comprehensive income to the partnership (1) — — (1) Net income and other comprehensive income is attributable to the partnership prior to the special distribution as well as subsequently as a result of the partnership holding all of the class C shares issued by our company. Please refer to Note 3(b), Material Accounting Policy Information, for further details. Foreign Currency Risk Management Our company has exposure to foreign currency risk in respect of currency transactions, the value of our company’s net investment, cash flows and capital expenditures that are denominated outside of the U.S. Our company’s approach to foreign currency risk management is: • Our company leverages any natural hedges that may exist within its operations; • Our company utilizes local currency debt financing to the extent possible; and • Our company may utilize derivative contracts to the extent that natural hedges are insufficient. The tables below set out our company’s currency exposure at December 31, 2023, 2022 and 2021: 2023 US$ MILLIONS USD GBP BRL EUR & Others Total Assets: Current assets $ 419 $ 318 $ 747 $ 10 $ 1,494 Non-current assets 11,947 5,580 3,576 2 21,105 $ 12,366 $ 5,898 $ 4,323 $ 12 $ 22,599 Liabilities: Current liabilities $ 982 $ 387 $ 549 $ 2 $ 1,920 Non-current liabilities 6,639 3,744 3,099 — 13,482 $ 7,621 $ 4,131 $ 3,648 $ 2 $ 15,402 Non-controlling interest 3,586 348 526 7 4,467 Net investment attributable to Brookfield Infrastructure $ 1,159 $ 1,419 $ 149 $ 3 $ 2,730 2022 US$ MILLIONS GBP BRL AUD Total Assets: Current assets $ 264 $ 737 $ — $ 1,001 Non-current assets 4,821 3,362 428 8,611 $ 5,085 $ 4,099 $ 428 $ 9,612 Liabilities: Current liabilities $ 690 $ 486 $ — $ 1,176 Non-current liabilities 2,864 3,034 — 5,898 $ 3,554 $ 3,520 $ — $ 7,074 Non-controlling interest 298 460 — 758 Net investment attributable to Brookfield Infrastructure $ 1,233 $ 119 $ 428 $ 1,780 2021 US$ MILLIONS GBP BRL AUD Total Assets: Current assets $ 249 $ 668 $ — $ 917 Non-current assets 4,961 3,115 — 8,076 $ 5,210 $ 3,783 $ — $ 8,993 Liabilities: Current liabilities $ 316 $ 1,278 $ — $ 1,594 Non-current liabilities 3,285 2,028 — 5,313 $ 3,601 $ 3,306 $ — $ 6,907 Non-controlling interest 314 389 — 703 Net investment attributable to Brookfield Infrastructure $ 1,295 $ 88 $ — $ 1,383 The following tables detail our company’s sensitivity to a 10% increase and decrease in the U.S. dollar against the relevant foreign currencies, with all other variables held constant as at reporting date. 10% is the sensitivity rate used when reporting foreign currency risk internally. The sensitivity analysis is performed as follows: • Outstanding foreign currency denominated monetary items (excluding foreign exchange derivative contracts) are adjusted at period end for a 10% change in foreign currency rates from the rate at which they are translated; • Foreign currency derivative contracts are measured as the change in fair value of the derivative as a result of a 10% change in the spot currency rate; and • The impact on net income results from performing a sensitivity of a 10% change in foreign exchange rates applied to the profit or loss contribution from foreign operations (after considering the impact of foreign exchange derivative contracts). Impact on Net Income to the Partnership 2023 2022 2021 US$ MILLIONS -10% 10% -10% 10% -10% 10% USD/GBP $ (8) $ 8 $ (8) $ 8 $ (6) $ 6 USD/BRL (20) 20 (23) 23 (15) 15 USD/AUD 2 (2) (1) 1 — — Impact on Parent Equity 2023 2022 2021 US$ MILLIONS -10% 10% -10% 10% -10% 10% USD/GBP $ (142) $ 142 $ (123) $ 123 $ (130) $ 130 USD/BRL (15) 15 (12) 12 (9) 9 USD/EUR (1) 1 — — — — USD/AUD — — (43) 43 — — (c) Credit Risk Management Credit risk is the risk of loss due to the failure of a borrower or counterparty to fulfill its contractual obligations. From a treasury perspective, counterparty credit risk is managed through the establishment of authorized counterparty credit limits which are designed to ensure that our company only deals with credit worthy counterparties and that counterparty concentration is addressed and the risk of loss is mitigated. Credit limits are sufficiently low to restrict our company from having credit exposures concentrated with a single counterparty but rather encourages spreading such risks among several parties. The limits are set at levels that reflect our company’s scale of activity and allow it to manage its treasury business competitively. Our company does not have any significant credit risk exposure to any single counterparty or any group of counterparties having similar characteristics other than those described in Note 16, Revenues . Based on our review of key counterparties, we do not have any significant changes in credit losses at this time. The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit ratings assigned by international credit rating agencies. Exposure to credit risk is limited to the carrying amount of the assets on the Consolidated Statements of Financial Position. |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended |
Dec. 31, 2023 | |
Cash Flow Statement [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION For the year ended December 31, US$ MILLIONS 2023 2022 2021 Interest paid $ 678 $ 554 $ 261 Income taxes paid 318 292 165 Amounts paid and received for interest were reflected as operating cash flows in the Consolidated Statements of Cash Flows. Interest paid is net of debt related hedges. Amounts paid for income taxes were reflected as either operating cash flows or investing cash flows in the Consolidated Statements of Cash Flows depending upon the nature of the underlying transaction. Details of “Changes in non-cash working capital, net” on the Consolidated Statements of Cash Flows are as follows: For the year ended December 31, US$ MILLIONS 2023 2022 2021 Accounts receivable $ (85) $ (61) $ (91) Accounts payable and other 91 234 126 Changes in non-cash working capital, net $ 6 $ 173 $ 35 |
MATERIAL ACCOUNTING POLICY IN_2
MATERIAL ACCOUNTING POLICY INFORMATION (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Corporate information and statement of IFRS compliance [abstract] | |
Statement of Compliance | Statement of Compliance These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”). These consolidated financial statements were authorized for issuance by the Board of Directors of our company on March 18, 2024. |
Basis of Presentation | Basis of Presentation The consolidated financial statements are prepared on a going concern basis. The partnership directly and indirectly controlled our company prior to the special distribution and continues to control our company subsequent to the special distribution through its interests in our company. As a result of this continuing common control, there was insufficient substance to justify a change in the measurement of our company. In accordance with our company and the partnership’s accounting policy, effective March 30, 2020, the assets and liabilities of our businesses were transferred to our company at their carrying values. |
Subsidiaries | Subsidiaries These consolidated financial statements include the accounts of our company and subsidiaries over which our company has control. Subsidiaries are consolidated from the date of acquisition, being the date on which our company obtains control, and continue to be consolidated until the date when control is lost. Our company (investor) controls an investee when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Non-controlling interests may be initially measured either at fair value or at the non-controlling interests’ proportionate share of the fair value of the acquiree’s identifiable net assets. The choice of measurement basis is made on an acquisition by acquisition basis. Subsequent to acquisition, the carrying amount of non-controlling interests is the amount of those interests at initial recognition plus the non-controlling interests’ share of subsequent changes in equity in addition to changes in ownership interests. Total comprehensive income is attributed to non-controlling interests, even if this results in the non-controlling interests having a deficit balance. All intercompany balances, transactions, revenues and expenses are eliminated in full. |
Associates | Associates Associates are entities over which our company has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but does not constitute control. Our company accounts for investments over which it has significant influence using the equity method, and are recorded as Investments in associates on the Consolidated Statements of Financial Position. Interests in investments accounted for using the equity method are initially recorded at cost. If the cost of the associate is lower than the proportionate share of the investment’s underlying fair value, our company records a gain on the difference between the cost and the underlying fair values of the identifiable net assets of the associate. If the cost of the associate is greater than our company’s proportionate share of the underlying fair value, goodwill and other adjustments arising from the purchase price allocation relating to the associate is included in the carrying amount of the investment. Subsequent to initial recognition, the carrying value of our company’s interest in an investee is adjusted for our company’s share of comprehensive income or loss and distributions from the investee. Profits or losses resulting from transactions with an associate are recognized in the consolidated financial statements based on the interests of unrelated investors in the associate. |
Continuity of Interests | Continuity of Interests Our company was established on August 30, 2019 by the partnership. On March 30, 2020, the partnership contributed the businesses to our company in exchange for loans receivable, exchangeable shares, class B shares and class C shares. On March 31, 2020, the partnership completed the special distribution of the exchangeable shares to holders of units and continues to hold all of the class B and class C shares of our company. The partnership directly and indirectly controlled our company prior to the special distribution and continues to control our company subsequent to the special distribution through its interests in our company. As a result of this continuing common control, there was insufficient substance to justify a change in the measurement of our company. In accordance with our company’s and the partnership’s accounting policy, our company has reflected the businesses in its financial position and financial performance using the partnership’s carrying values prior to the contribution of the businesses to our company. |
Foreign Currency Translation | Foreign Currency Translation The U.S. dollar is the functional and presentation currency of our company. Each of our company’s affiliates determines its own functional currency and items included in the financial statements of each affiliate are measured using that functional currency. Assets and liabilities of foreign operations having a functional currency other than the U.S. dollar are translated at the rate of exchange prevailing at the reporting date and revenues and expenses at average rates during the period. Gains or losses on translation are included as a component of other comprehensive income. On disposal of a foreign operation resulting in the loss of control, the component of other comprehensive income due to accumulated foreign currency translation relating to that foreign operation is reclassified to net income. On partial disposal of a foreign operation in which control is retained, the proportionate share of the component of other comprehensive income or loss relating to that foreign operation is reclassified to non-controlling interests in that foreign operation. |
Business Combinations | Business Combinations Business acquisitions in which control is acquired are accounted for using the acquisition method, other than those between and among entities under common control. The consideration of each acquisition is measured at the aggregate of the fair values at the acquisition date of assets transferred by the acquirer, liabilities incurred or assumed, and equity instruments issued by our company in exchange for control of the acquiree. Acquisition related costs are recognized in the Statements of Operating Results as incurred and included in other expenses. Where applicable, the consideration for the acquisition includes any asset or liability resulting from a contingent consideration arrangement, measured at its acquisition-date fair value. Subsequent changes in fair values are adjusted against the cost of the acquisition where they qualify as measurement period adjustments. All other subsequent changes in the fair value of contingent consideration classified as liabilities will be recognized in the Statements of Operating Results, whereas changes in the fair values of contingent consideration classified within share capital are not subsequently re-measured. Where a business combination is achieved in stages, our company’s previously held interests in the acquired entity are remeasured to fair value at the acquisition date, that is, the date our company attains control and the resulting gain or loss, if any, is recognized in the Statements of Operating Results. Amounts arising from interests in the acquiree prior to the acquisition date that have previously been recognized in other comprehensive income are reclassified to the Statements of Operating Results, where such treatment would be appropriate if that interest were disposed of. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, our company reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period, or additional assets or liabilities are recognized, to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the amounts recognized as of that date. The measurement period is the period from the date of acquisition to the date our company obtains complete information about facts and circumstances that existed as of the acquisition date. The measurement period is subject to a maximum of one year subsequent to the acquisition date. If, after reassessment, our company’s interest in the fair value of the acquiree’s identifiable net assets exceeds the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree and the fair value of the acquirer’s previously held equity interest in the acquiree if any, the excess is recognized immediately in profit or loss as a bargain purchase gain. Contingent liabilities acquired in a business combination are initially measured at fair value at the date of acquisition. At the end of subsequent reporting periods, such contingent liabilities are measured at the higher of the amount that would be recognized in accordance with IAS 37, Provisions, Contingent Liabilities and Contingent Assets and the amount initially recognized less the cumulative amount of income recognized in accordance with IFRS 15, Revenue from Contracts with Customers |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Accounts Receivable | Accounts Receivable |
Property, Plant and Equipment | Property, Plant and Equipment Our company uses the revaluation method of accounting for all classes of property, plant and equipment. Property, plant and equipment is initially measured at cost and subsequently carried at its revalued amount, being the fair value at the date of the revaluation less any subsequent accumulated depreciation and any accumulated impairment losses. Revaluations are made on at least an annual basis, and on a sufficient basis to ensure that the carrying amount does not differ significantly from fair value. Where the carrying amount of an asset is increased as a result of a revaluation, the increase is recognized in other comprehensive income or loss and accumulated in equity within the revaluation surplus reserve, unless the increase reverses a previously recognized impairment recorded through net income, in which case that portion of the increase is recognized in net income. Where the carrying amount of an asset is decreased, the decrease is recognized in other comprehensive income to the extent of any balance existing in revaluation surplus in respect of the asset, with the remainder of the decrease recognized in net income. Revaluation gains are included in other comprehensive income but are not subsequently recycled into profit or loss. An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. The gain or loss arising on disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in the Statements of Operating Results. However, any balance accumulated in revaluation surplus is subsequently recorded in retained earnings when an asset is derecognized and not transferred to profit or loss. Depreciation of an asset commences when it is available for use. Property, plant and equipment are depreciated on a straight line or declining-balance basis over the estimated useful lives of each component of the assets as follows: Buildings Up to 50 years Machinery and equipment Up to 20 years Leasehold improvements Up to 25 years Network systems Up to 80 years |
Asset Impairment | Asset Impairment |
Intangible Assets | Intangible Assets Intangible assets acquired in a business combination and recognized separately from goodwill are initially recognized at their fair value at the acquisition date. Our company’s intangible assets are comprised primarily of service concession arrangements, customer relationships, brand, developed technology and customer order backlogs. Subsequent to initial recognition, intangible assets acquired in a business combination are reported at cost less accumulated amortization unless indefinite-lived and accumulated impairment losses, on the same basis as intangible assets acquired separately. Public service concessions that provide our company the right to charge users for a service in which the service and fee is regulated by the grantor are accounted for as an intangible asset under IFRIC 12, Service Concession Arrangements . Concession arrangements were acquired as part of the acquisition of the Brazilian regulated gas transmission operation and were initially recognized at their fair values. The intangible assets at the Brazilian regulated gas transmission operation relate to pipeline concession contracts, amortized on a straight-line basis over the estimated useful life of the underlying infrastructure with approximately 29 years remaining, on average. The customer relationships, brand, and developed technology were acquired as part of the acquisition of the global intermodal logistics operation and were initially recognized at their fair values. The customer relationships represent the on-going economic benefit from our leasing contracts with customers. The customer order backlog was acquired as part of the acquisition of the U.K. regulated distribution operation and was initially recorded at its fair value. The customer order backlog represents the present value of future earnings derived from the build out of contracted connections at the acquisition date of the U.K. regulated distribution operation. The customer order backlog is amortized over its estimated useful life of 15 years. |
Goodwill | Goodwill Goodwill represents the excess of the price paid for the acquisition of an entity over the fair value of the net tangible and intangible assets and liabilities acquired. Goodwill is allocated to the cash generating unit or units to which it relates. Our company identifies cash generating units as identifiable groups of assets that are largely independent of the cash inflows from other assets or groups of assets. Goodwill is evaluated for impairment annually or more often if events or circumstances indicate there may be impairment. Impairment is determined for goodwill by assessing if the carrying value of a cash generating unit or group of cash generating units, including the allocated goodwill, exceeds its recoverable amount determined as the greater of the estimated fair value less costs of disposal or the value in use. Impairment losses recognized in respect of a cash generating unit are first allocated to the carrying value of goodwill and any excess is allocated to the carrying amount of assets in the cash generating unit. Any goodwill impairment is recognized in period in which the impairment is identified. Impairment losses on goodwill are not subsequently reversed. |
Revenue Recognition | Revenue Recognition Our company recognizes revenue when it transfers control of a product or service to a customer. Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. Our company recognizes revenue when the specific criteria set out below have been met. Cash received by our company from customers is recorded as deferred revenue until the revenue recognition criteria set out below are met. Revenue from our businesses is derived from the transmission of natural gas, the distribution of energy and logistics services revenue. Distribution, transmission and logistics revenue each contain a single performance obligation that is recognized over time when services are rendered, based primarily on usage or volume during the period. The connection revenue relating to our company’s regulated distribution operation contains a distinct performance obligation that is recognized over the period that the connection is constructed, based on an input method of progress recognition on the basis that this methodology is most reflective of the underlying transfer of control. The payment terms for all of our revenue streams require payment upon completion, except for connections income whereby payment is typically collected up-front prior to the completion of any services. |
Financial Instruments and Hedge Accounting | Financial Instruments and Hedge Accounting a) Financial Instrument Classification Our company classifies cash and cash equivalents and accounts receivable and other as amortized cost. Derivative assets are classified as fair value through profit or loss (“FVTPL”), except for derivatives in certain hedging relationships. Other financial assets are classified as either amortized cost or fair value through other comprehensive income (“FVTOCI”). Financial assets classified as FVTPL or FVTOCI are subsequently measured at fair value at each reporting date. For financial assets classified as FVTPL, the change in fair value is recorded through profit or loss. For financial assets classified as FVTOCI, the change in fair value is recorded in other comprehensive income. The cumulative gains or losses related to FVTOCI equity instruments are not reclassified to profit or loss on disposal, whereas the cumulative gains or losses on all other FVTOCI assets are reclassified to profit or loss on disposal. For financial instruments at amortized cost or debt instruments at FVTOCI, our company assesses if there have been significant increases in credit risk since initial recognition to determine whether lifetime or 12-month expected credit losses should be recognized. Any related loss allowances are recorded through profit or loss. Non-recourse borrowings and accounts payable and other, are classified as amortized cost, except for derivatives embedded in related financial instruments. Embedded derivatives and any other derivative liabilities are classified as FVTPL and are subsequently measured at fair value, except for derivatives in certain hedging relationships. Other financial liabilities are classified as either FVTPL or amortized cost. b) Hedge Accounting Our company selectively utilizes derivative financial instruments primarily to manage financial risks, including interest rate and foreign exchange risks. Derivative financial instruments are recorded at fair value. Hedge accounting is applied when the derivative is designated as a hedge of a specific exposure and that the hedging relationship meets all of the hedge effectiveness requirements. Hedge accounting is discontinued prospectively when the derivative no longer qualifies as a hedge or the hedging relationship is terminated. Once discontinued, the cumulative change in fair value of a derivative that was previously recorded in other comprehensive income by the application of hedge accounting is recognized in profit or loss over the remaining term of the original hedging relationship as amounts related to the hedged item are recognized in profit or loss. The assets or liabilities relating to unrealized mark-to-market gains and losses on derivative financial instruments are recorded in financial assets and financial liabilities, respectively. |
Income Taxes | Income Taxes Income tax expense represents the sum of the tax accrued in the period and deferred income tax. a) Current income tax Current income tax assets and liabilities are measured at the amount expected to be paid to tax authorities, net of recoveries based on the tax rates and laws enacted or substantively enacted at the reporting date. Current income tax relating to items recognized directly in share capital are also recognized directly in share capital and other comprehensive income. b) Deferred income tax Deferred income tax liabilities are provided for using the liability method on temporary differences between the tax bases used in the computation of taxable income and carrying amounts of assets and liabilities in the consolidated financial statements. Deferred income tax assets are recognized for all deductible temporary differences, carry forward of unused tax credits and unused tax losses, to the extent that it is probable that deductions, tax credits and tax losses can be utilized. Such deferred income tax assets and liabilities are not recognized if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the taxable income nor the accounting income, other than in a business combination. The carrying amount of deferred income tax assets are reviewed at each reporting date and reduced to the extent it is no longer probable that the income tax asset will be recovered. Deferred income tax liabilities are recognized for taxable temporary differences associated with investments in affiliates, except where our company is able to control the reversal of the temporary difference and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred income tax assets arising from deductible temporary differences associated with such investments and interests are only recognized to the extent that it is probable that there will be sufficient taxable income against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred income tax liabilities and assets reflect the tax consequences that would follow from the manner in which our company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. |
Assets Held for Sale | Assets Held for Sale Non-current assets and disposal groups are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the non-current asset or disposal group is available for immediate sale in its present condition. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification subject to limited exceptions. When our company is committed to a sale plan involving loss of control of a subsidiary, all of the assets and liabilities of that subsidiary are classified as held for sale when the criteria described above are met, regardless of whether our company will retain a non-controlling interest in its former subsidiary after the sale. Non-current assets and disposal groups classified as held for sale are measured at the lower of their previous carrying amount and fair value less costs to sell. Non-current assets classified as held for sale and the assets of a disposal group are presented separately from other assets in the Statements of Financial Position and are classified as current. The liabilities of a disposal group classified as held for sale are presented separately from other liabilities in the Statements of Financial Position. |
Provisions | Provisions Provisions are recognized when our company has a present obligation, either legal or constructive, as a result of a past event, it is probable that our company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the obligation, its carrying amount is the present value of those cash flows. |
Earnings per Share | Earnings per Share Our company’s basic and diluted earnings per share have not been presented in the consolidated financial statements. As outlined in Note 13, Financial Liabilities , and Note 18, Equity , exchangeable and class B shares are classified as financial liabilities, while class C shares are classified as financial liabilities, but presented as equity instruments given the narrow scope presentation exceptions existing in IAS 32. As each share classification represents a financial liability, they do not constitute ordinary shares. Refer to the aforementioned notes for further details. |
Operating Segments | Operating Segments IFRS 8, Operating Segments |
Significant Accounting Judgments and Key Sources of Estimation Uncertainty | Significant Accounting Judgments and Key Sources of Estimation Uncertainty The preparation of financial statements requires management to make significant judgments, estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses that are not readily apparent from other sources, during the reporting period. These estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. Significant judgments and estimates made by management and utilized in the normal course of preparing our company’s consolidated financial statements are outlined below. a) Common control transactions IFRS 3 (2008), Business Combinations does not include specific measurement guidance for transfers of businesses or subsidiaries between entities under common control. Accordingly, our company has developed a policy to account for such transactions taking into consideration other guidance in the IFRS framework and pronouncements of other standard-setting bodies. Our company’s policy is to record assets and liabilities recognized as a result of transactions between entities under common control at the carrying value on the transferor’s financial statements, and to have the consolidated statements of financial position, operating results, changes in equity and cash flows reflect the results of combining entities for all periods presented for which the entities were under the transferor’s common control, irrespective of when the combination takes place. b) Financial instruments Our company’s accounting policies relating to derivative financial instruments are described in Note 3(m), Financial Instruments and Hedge Accounting . The significant judgments inherent in these policies relate to applying the criteria to the assessment of the effectiveness of hedging relationships. Estimates and assumptions used in determining the fair value of financial instruments are equity and commodity prices; future interest rates; the credit worthiness of our company relative to its counterparties; the credit risk of our company and counterparty; estimated future cash flows; and discount rates. c) Revaluation of property, plant and equipment Property, plant and equipment is revalued on a regular basis. The significant estimates and assumptions underlying the valuation of property, plant and equipment are set out in Note 8, Property Plant and Equipment. d) Fair values in business combinations Our company accounts for business combinations using the acquisition method of accounting. This method requires the application of fair values for both the consideration given and the assets and liabilities acquired. The calculation of fair values is often predicated on estimates and judgments including future cash flows discounted at an appropriate rate to reflect the risk inherent in the acquired assets and liabilities. The determination of the fair values may remain provisional for up to 12 months from the date of acquisition due to the time required to obtain independent valuations of individual assets and to complete assessments of provisions. When the accounting for a business combination has not been completed as at the reporting date, this is disclosed in the financial statements, including observations on the estimates and judgments made as of the reporting date. e) Impairment of goodwill, intangibles with indefinite lives The impairment assessment of goodwill and intangible assets with indefinite lives requires estimation of the value-in-use or fair value less costs of disposal of the cash-generating units or groups of cash generating units to which goodwill or the intangible asset has been allocated. Our company uses the following significant assumptions and estimates: the circumstances that gave rise to the goodwill, timing and amount of future cash flows expected from the cash-generating units; discount rates; terminal capitalization rates; terminal valuation dates and useful lives. Other estimates utilized in the preparation of our company’s financial statements are: depreciation and amortization rates and useful lives; recoverable amount of goodwill and intangible assets; ability to utilize tax losses and other tax measurements. Other judgments utilized in the preparation of our company’s financial statements include the methodologies for calculating amortization and determination of control. |
Recently adopted accounting standards | Recently adopted accounting standards Our company applied new and revised standards issued by the IASB which are applicable to our company beginning on or after January 1, 2023. The impact of these amendments on our company’s accounting policies are as follows: Amendments to IAS 1 – Presentation of Financial Statements (“IAS 1”) The amendments clarify the requirement for companies to identify and disclose its material accounting policies instead of its significant accounting policies. The amendments to IAS 1 apply to annual reporting periods beginning on or after January 1, 2023. 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) Our company operates in countries which have enacted new legislation to implement the global minimum top-up tax. Our company has applied a temporary mandatory relief from recognizing and disclosing information related to the top-up tax and will account for it as a current tax when it is incurred. The newly enacted legislation is effective from January 1, 2024 and there is no current tax impact for the year ended December 31, 2023. Since our company is an Investment Entity and not an Ultimate Parent Entity (as defined under the Global Minimum Tax Act), the global minimum top-up tax is not expected to have a material impact on the financial position of our company. Future accounting policies The following are accounting policies issued that our company expects to adopt in the future: Amendments to IAS 1 – Classification of Liabilities as Current or Non-current |
SUBSIDIARIES (Tables)
SUBSIDIARIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Interests In Other Entities [Abstract] | |
Disclosure of interests in subsidiaries | The following table presents details of non-wholly owned subsidiaries of our company as of December 31 for the years indicated: Country of Effective Ownership Interest (%) Voting Interest (%) Defined Name Name of entity 2023 2022 2021 2023 2022 2021 U.K. regulated distribution operation BUUK Infrastructure No 1 Limited U.K. 80 80 80 80 80 80 Brazilian regulated gas transmission operation Nova Transportadora do Sudeste S.A. (1) Brazil 31 31 31 92 92 92 Global intermodal logistics operation (2) Triton International Limited (1),(2) U.S. 28 — — 100 — — (1) Our company has entered into voting arrangements to provide our company with the ability to direct the relevant activities of the investee. Our company controls this investee given that our company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Our company exercises judgment to determine the level of variability that will achieve control over an investee, particularly in circumstances where our company’s voting interest differs from its ownership interest in an investee. The following were considered to determine whether our company controls this investee: the degree of power (if any) held by other investors, the degree of exposure to variability of each investor, the determination of whether any general partner removal rights are substantive and the purpose and design of the investee. (2) Refer to Note 4, Acquisition of businesses, for further details. |
MATERIAL ACCOUNTING POLICY IN_3
MATERIAL ACCOUNTING POLICY INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Corporate information and statement of IFRS compliance [abstract] | |
Disclosure of estimated useful lives of property, plant and equipment | Property, plant and equipment are depreciated on a straight line or declining-balance basis over the estimated useful lives of each component of the assets as follows: Buildings Up to 50 years Machinery and equipment Up to 20 years Leasehold improvements Up to 25 years Network systems Up to 80 years |
ACQUISITION OF BUSINESSES (Tabl
ACQUISITION OF BUSINESSES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
ACQUISITION OF BUSINESS [Abstract] | |
Disclosure of detailed information about business combination | Consideration Transferred: US$ MILLIONS Cash $ 350 BIPC exchangeable shares 751 Pre-existing interest in the business 55 Total consideration $ 1,156 Fair value of assets and liabilities acquired (provisional) (1) : US$ MILLIONS Cash and cash equivalents $ 491 Accounts receivable and other (2) 1,871 Property, plant and equipment 8,811 Intangible assets 710 Goodwill 1,163 Accounts payable and other liabilities (408) Non-recourse borrowings (7,041) Deferred income tax liabilities (444) Net assets acquired before non-controlling interest 5,153 Non-controlling interest (3) (3,997) Net assets acquired $ 1,156 (1) The fair values of certain acquired assets and liabilities for these operations have been determined on a provisional basis given the proximity of the acquisitions to the reporting date, pending finalization of the determination of the fair values of the acquired assets and liabilities. Our company is in the process of obtaining additional information primarily in order to assess the fair values of property, plant and equipment, intangible assets, deferred income taxes and the resulting impact to goodwill as at the date of the acquisitions. (2) Accounts receivable and other primarily comprised of finance lease receivables, trade receivables, and other financial assets. (3) Non-controlling interest includes $641 million of preferred equity instruments transferred as part of the acquisition, remaining balance represents the interest not acquired by our company, measured at fair value at the acquisition dates. |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Measurement [Abstract] | |
Disclosure of financial assets | The following table provides the allocation of financial instruments and their associated financial instrument classifications as at December 31, 2023: US$ MILLIONS Financial Instrument Classification MEASUREMENT BASIS Fair value through profit or loss Amortized Cost Total Financial assets Cash and cash equivalents $ — $ 539 $ 539 Accounts receivable and other (current and non-current) — 2,218 2,218 Financial assets (current and non-current) (1) 103 — 103 Due from Brookfield Infrastructure — 1,288 1,288 Total $ 103 $ 4,045 $ 4,148 Financial liabilities Accounts payable and other (current and non-current) $ — $ 837 $ 837 Non-recourse borrowings (current and non-current) — 12,028 12,028 Exchangeable and class B shares (2) — 4,153 4,153 Financial liabilities (current and non-current) (1) 75 — 75 Loans payable to Brookfield Infrastructure — 26 26 Total $ 75 $ 17,044 $ 17,119 (1) Derivative instruments which are elected for hedge accounting totaling $103 million are included in financial assets and $75 million are included in financial liabilities. (2) Class C shares are also classified as financial liabilities due to their cash redemption feature. As discussed in Note 1(b)(ii), Organization and Description of our Company, the class C shares meet certain qualifying criteria and are presented as equity. See Note 18, Equity. The following table provides the allocation of financial instruments and their associated financial instrument classifications as at December 31, 2022: US$ 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 — 4,577 4,577 Exchangeable and class B shares (2) — 3,426 3,426 Financial liabilities (current and non-current) (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 $72 million are included in financial liabilities. (2) Class C shares are also classified as financial liabilities due to their cash redemption feature. As discussed in Note 1(b)(ii), Organization and Description of our Company, the class C shares meet certain qualifying criteria and are presented as equity. See Note 18, Equity. |
Disclosure of financial liabilities | The following table provides the allocation of financial instruments and their associated financial instrument classifications as at December 31, 2023: US$ MILLIONS Financial Instrument Classification MEASUREMENT BASIS Fair value through profit or loss Amortized Cost Total Financial assets Cash and cash equivalents $ — $ 539 $ 539 Accounts receivable and other (current and non-current) — 2,218 2,218 Financial assets (current and non-current) (1) 103 — 103 Due from Brookfield Infrastructure — 1,288 1,288 Total $ 103 $ 4,045 $ 4,148 Financial liabilities Accounts payable and other (current and non-current) $ — $ 837 $ 837 Non-recourse borrowings (current and non-current) — 12,028 12,028 Exchangeable and class B shares (2) — 4,153 4,153 Financial liabilities (current and non-current) (1) 75 — 75 Loans payable to Brookfield Infrastructure — 26 26 Total $ 75 $ 17,044 $ 17,119 (1) Derivative instruments which are elected for hedge accounting totaling $103 million are included in financial assets and $75 million are included in financial liabilities. (2) Class C shares are also classified as financial liabilities due to their cash redemption feature. As discussed in Note 1(b)(ii), Organization and Description of our Company, the class C shares meet certain qualifying criteria and are presented as equity. See Note 18, Equity. The following table provides the allocation of financial instruments and their associated financial instrument classifications as at December 31, 2022: US$ 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 — 4,577 4,577 Exchangeable and class B shares (2) — 3,426 3,426 Financial liabilities (current and non-current) (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 $72 million are included in financial liabilities. (2) Class C shares are also classified as financial liabilities due to their cash redemption feature. As discussed in Note 1(b)(ii), Organization and Description of our Company, the class C shares meet certain qualifying criteria and are presented as equity. See Note 18, Equity. |
Carrying and fair values of financial assets | The following table provides the carrying values and fair values of financial instruments as at December 31, 2023 and December 31, 2022: Dec. 31, 2023 Dec. 31, 2022 US$ MILLIONS Carrying Value Fair Value Carrying Value Fair Value Financial assets Cash and cash equivalents $ 539 $ 539 $ 445 $ 445 Accounts receivable and other (current and non-current) 2,218 2,218 441 441 Financial assets (current and non-current) 103 103 97 97 Due from Brookfield Infrastructure 1,288 1,288 566 566 Total $ 4,148 $ 4,148 $ 1,549 $ 1,549 Dec. 31, 2023 Dec. 31, 2022 US$ MILLIONS Carrying Value Fair Value Carrying Value Fair Value Financial liabilities Accounts payable and other (current and non-current) $ 837 $ 837 $ 589 $ 589 Non-recourse borrowings (current and non-current) (1) 12,028 11,836 4,577 4,303 Exchangeable and class B shares (2) 4,153 4,153 3,426 3,426 Financial liabilities (current and non-current) 75 75 72 72 Loans payable to Brookfield Infrastructure 26 26 26 26 Total $ 17,119 $ 16,927 $ 8,690 $ 8,416 (1) Non-recourse borrowings are classified under level 2 of the fair value hierarchy, with the exception of certain borrowings at our global intermodal logistics operation, which are classified under level 1. For level 2 fair values, future cash flows are estimated based on observable forward interest rates at the end of the reporting period. (2) Class C shares are also classified as financial liabilities due to their cash redemption feature. As discussed in Note 1(b)(ii), Organization and Description of our Company, the class C shares meet certain qualifying criteria and are presented as equity. US$ MILLIONS Fair value hierarchy Dec. 31, 2023 Dec. 31, 2022 Interest rate swaps & other Level 2 (1) Financial assets $ 103 $ 97 Financial liabilities 75 72 (1) Valuation technique: Discounted cash flow. Future cash flows are estimated based on forward exchange rates (from observable forward exchange rates at the end of the reporting period) and contract forward rates, discounted at a rate that reflects our credit risk and the credit risk of various counterparties. |
Carrying and fair values of financial liabilities | The following table provides the carrying values and fair values of financial instruments as at December 31, 2023 and December 31, 2022: Dec. 31, 2023 Dec. 31, 2022 US$ MILLIONS Carrying Value Fair Value Carrying Value Fair Value Financial assets Cash and cash equivalents $ 539 $ 539 $ 445 $ 445 Accounts receivable and other (current and non-current) 2,218 2,218 441 441 Financial assets (current and non-current) 103 103 97 97 Due from Brookfield Infrastructure 1,288 1,288 566 566 Total $ 4,148 $ 4,148 $ 1,549 $ 1,549 Dec. 31, 2023 Dec. 31, 2022 US$ MILLIONS Carrying Value Fair Value Carrying Value Fair Value Financial liabilities Accounts payable and other (current and non-current) $ 837 $ 837 $ 589 $ 589 Non-recourse borrowings (current and non-current) (1) 12,028 11,836 4,577 4,303 Exchangeable and class B shares (2) 4,153 4,153 3,426 3,426 Financial liabilities (current and non-current) 75 75 72 72 Loans payable to Brookfield Infrastructure 26 26 26 26 Total $ 17,119 $ 16,927 $ 8,690 $ 8,416 (1) Non-recourse borrowings are classified under level 2 of the fair value hierarchy, with the exception of certain borrowings at our global intermodal logistics operation, which are classified under level 1. For level 2 fair values, future cash flows are estimated based on observable forward interest rates at the end of the reporting period. (2) Class C shares are also classified as financial liabilities due to their cash redemption feature. As discussed in Note 1(b)(ii), Organization and Description of our Company, the class C shares meet certain qualifying criteria and are presented as equity. US$ MILLIONS Fair value hierarchy Dec. 31, 2023 Dec. 31, 2022 Interest rate swaps & other Level 2 (1) Financial assets $ 103 $ 97 Financial liabilities 75 72 (1) Valuation technique: Discounted cash flow. Future cash flows are estimated based on forward exchange rates (from observable forward exchange rates at the end of the reporting period) and contract forward rates, discounted at a rate that reflects our credit risk and the credit risk of various counterparties. |
CASH AND CASH EQUIVALENTS (Tabl
CASH AND CASH EQUIVALENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Cash and cash equivalents [abstract] | |
Disclosure of cash and cash equivalents | As of December 31, US$ MILLIONS 2023 2022 Cash $ 111 $ 4 Cash equivalents (1) 428 441 Total cash and cash equivalents $ 539 $ 445 (1) Short-term, highly liquid investments with maturities of less than 90 days at acquisition that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. |
ACCOUNTS RECEIVABLE AND OTHER (
ACCOUNTS RECEIVABLE AND OTHER (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Disclosure of accounts receivable and other | As of December 31, US$ MILLIONS 2023 2022 Current: Accounts receivable (1) $ 797 $ 441 Finance lease receivables 91 — Prepayments & other assets 51 58 Total current $ 939 $ 499 Non-current: Finance lease receivables $ 1,239 $ — Restricted cash (2) 91 — Other assets 94 17 Total non-current $ 1,424 $ 17 (1) Includes $291 million (2022: $254 million) receivable from one customer. Please refer to Note 16 for revenues attributable to this customer. (2) Restricted cash primarily relates to our company’s financing arrangements, including debt service accounts. Cash that becomes unrestricted within one year of the reporting date is classified as cash and cash equivalents. |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, plant and equipment [abstract] | |
Disclosure of detailed information about property, plant and equipment | US$ 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 468 15 — 483 Acquisitions through business combinations (1) 8,811 — — 8,811 Non-cash additions (11) (5) — (16) Depreciation expense — (252) — (252) Fair value adjustments — — 142 142 Net foreign currency exchange differences 223 (41) 83 265 Balance at December 31, 2023 $ 13,438 $ (990) $ 1,703 $ 14,151 (1) See Note 4, Acquisition of Businesses, for additional information. The following table summarizes the valuation techniques and significant inputs for our company’s property, plant and equipment assets. Dec. 31, 2023 Dec. 31, 2022 Valuation Discount Terminal Investment Valuation Discount Terminal Investment Discounted cash flow model 8% 15x 10 yrs Discounted cash flow model 7% 18x 10 yrs |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets [Abstract] | |
Disclosure of reconciliation of changes in intangible assets and goodwill | As of US$ MILLIONS Dec. 31, 2023 Dec. 31, 2022 Cost $ 4,657 $ 3,629 Accumulated amortization (958) (782) Total $ 3,699 $ 2,847 The following table presents the change in the cost balance of intangible assets: For the year ended US$ MILLIONS Dec. 31, 2023 Dec. 31, 2022 Cost at beginning of the year $ 3,629 $ 3,332 Acquisitions through business combinations (1) 710 — Additions, net of disposals 36 81 Foreign currency translation 282 216 Cost at end of year $ 4,657 $ 3,629 (1) See Note 4, Acquisition of Businesses, for additional information. The following table presents the accumulated amortization for our company’s intangible assets: For the year ended US$ MILLIONS Dec. 31, 2023 Dec. 31, 2022 Accumulated amortization at beginning of year $ (782) $ (645) Amortization (113) (101) Foreign currency translation (63) (36) Accumulated amortization at end of year $ (958) $ (782) The following table presents the carrying amount for our company’s goodwill: As of US$ MILLIONS Dec. 31, 2023 Dec. 31, 2022 Balance at beginning of the year $ 518 $ 489 Acquisitions through business combinations (1) 1,163 — Foreign currency translation and other 45 29 Balance at end of the year $ 1,726 $ 518 (1) See Note 4, Acquisition of Businesses, for additional information. |
Disclosure of detailed information about intangible assets | Intangible assets are allocated to the following cash generating units: As of US$ MILLIONS Dec. 31, 2023 Dec. 31, 2022 Brazilian regulated gas transmission operation $ 2,970 $ 2,816 Global intermodal logistics operation (1) 704 — U.K. regulated distribution operation 25 31 Total $ 3,699 $ 2,847 (1) See Note 4, Acquisition of Businesses, for additional information. Goodwill is allocated to the following cash generating units or group of cash generating units: As of US$ MILLIONS Dec. 31, 2023 Dec. 31, 2022 Global intermodal logistics operation (1) $ 1,163 $ — Brazilian regulated gas transmission operation 526 488 U.K. regulated distribution operation 37 30 Total $ 1,726 $ 518 (1) See Note 4, Acquisition of Businesses, for additional information. |
INVESTMENTS IN ASSOCIATES (Tabl
INVESTMENTS IN ASSOCIATES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Interests In Other Entities [Abstract] | |
Change in balance of investment | The following table represents the change in balance of investments in associates: For the year ended US$ MILLIONS Dec. 31, 2023 Dec. 31, 2022 Balance at the beginning of the period $ 428 $ — Acquisitions — 455 Share of (losses) earnings for the year (20) 4 Foreign currency translation & other 25 (25) Share of other comprehensive (loss) income (27) 27 Distributions (3) (33) Disposition of interest (403) — Ending Balance $ — $ 428 |
Disclosure of associates | The following table presents the gross assets and liabilities of our company’s investments in associates as at December 31, 2022: As at December 31, 2022 Total Attributable to US$ MILLIONS Ownership Interest Current Non- Total Current Non- Total Total Other Brookfield Infrastructure Partners LP Australian regulated utility 8% $ 211 $ 13,330 $ 13,541 $ 302 $ 7,716 $ 8,018 $ 5,523 $ 5,095 $ 428 Total $ 211 $ 13,330 $ 13,541 $ 302 $ 7,716 $ 8,018 $ 5,523 $ 5,095 $ 428 The following tables present the gross amounts of revenue, net income, other comprehensive income from our company’s investments in associates: Year ended December 31, 2023 Total Net income attributable to the Partnership (1) US$ MILLIONS Revenue Net OCI Total Comprehensive Income Australian regulated utility $ 1,008 $ 99 $ (375) $ (276) $ (20) Total $ 1,008 $ 99 $ (375) $ (276) $ (20) (1) Our company’s share of net income for the year ended December 31, 2023 includes $28 million of accumulated currency translation losses which were reclassified from accumulated other comprehensive income to the consolidated statement of operating results on disposition of our company’s interest in AusNet. Year ended December 31, 2022 Total Net income attributable to the Partnership US$ MILLIONS Revenue Net Income (1) OCI Total Comprehensive Income Australian regulated utility $ 1,227 $ 57 $ 21 $ 78 $ 4 Total $ 1,227 $ 57 $ 21 $ 78 $ 4 (1) Total net income for the year ended December 31, 2022 includes acquisition-related transaction costs of $105 million. The following tables present the cash flow activities of our company’s investments in associates for the years ended: Year ended December 31, 2023 Total Attributable to US$ MILLIONS Operating Investing Financing Total Cash Flows Other Brookfield Infrastructure Partners LP Australian regulated utility $ 380 $ (395) $ 1 $ (14) $ (13) $ (1) Total $ 380 $ (395) $ 1 $ (14) $ (13) $ (1) Year ended December 31, 2022 Total Attributable to US$ MILLIONS Operating Investing Financing Total Cash Flows Other Brookfield Infrastructure Partners LP Australian regulated utility $ 427 $ (452) $ (162) $ (187) $ (172) $ (15) Total $ 427 $ (452) $ (162) $ (187) $ (172) $ (15) |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets [Abstract] | |
Disclosure of reconciliation of changes in intangible assets and goodwill | As of US$ MILLIONS Dec. 31, 2023 Dec. 31, 2022 Cost $ 4,657 $ 3,629 Accumulated amortization (958) (782) Total $ 3,699 $ 2,847 The following table presents the change in the cost balance of intangible assets: For the year ended US$ MILLIONS Dec. 31, 2023 Dec. 31, 2022 Cost at beginning of the year $ 3,629 $ 3,332 Acquisitions through business combinations (1) 710 — Additions, net of disposals 36 81 Foreign currency translation 282 216 Cost at end of year $ 4,657 $ 3,629 (1) See Note 4, Acquisition of Businesses, for additional information. The following table presents the accumulated amortization for our company’s intangible assets: For the year ended US$ MILLIONS Dec. 31, 2023 Dec. 31, 2022 Accumulated amortization at beginning of year $ (782) $ (645) Amortization (113) (101) Foreign currency translation (63) (36) Accumulated amortization at end of year $ (958) $ (782) The following table presents the carrying amount for our company’s goodwill: As of US$ MILLIONS Dec. 31, 2023 Dec. 31, 2022 Balance at beginning of the year $ 518 $ 489 Acquisitions through business combinations (1) 1,163 — Foreign currency translation and other 45 29 Balance at end of the year $ 1,726 $ 518 (1) See Note 4, Acquisition of Businesses, for additional information. |
Disclosure of detailed information about intangible assets | Intangible assets are allocated to the following cash generating units: As of US$ MILLIONS Dec. 31, 2023 Dec. 31, 2022 Brazilian regulated gas transmission operation $ 2,970 $ 2,816 Global intermodal logistics operation (1) 704 — U.K. regulated distribution operation 25 31 Total $ 3,699 $ 2,847 (1) See Note 4, Acquisition of Businesses, for additional information. Goodwill is allocated to the following cash generating units or group of cash generating units: As of US$ MILLIONS Dec. 31, 2023 Dec. 31, 2022 Global intermodal logistics operation (1) $ 1,163 $ — Brazilian regulated gas transmission operation 526 488 U.K. regulated distribution operation 37 30 Total $ 1,726 $ 518 (1) See Note 4, Acquisition of Businesses, for additional information. |
ACCOUNTS PAYABLE AND OTHER (Tab
ACCOUNTS PAYABLE AND OTHER (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Disclosure of accounts payable and other | As of US$ MILLIONS Dec. 31, 2023 Dec. 31, 2022 Current: Accounts payable $ 85 $ 44 Accrued & other liabilities 759 562 Deferred revenue (1) 255 175 Total current $ 1,099 $ 781 Non-current: Deferred revenue (1) $ 264 $ 77 Provisions & other liabilities 61 42 Total non-current $ 325 $ 119 (1) Deferred revenue relates primarily to cash contributions from third parties to build future natural gas and electricity connections at our company’s U.K. regulated distribution operation and advance customer payments for container leases at our global intermodal logistics operation. The deferred revenue is recorded on receipt of cash payments and recognized as revenue as services are rendered over the life of the connections arrangement. Of the deferred revenue outstanding at December 31, 2023, 49% is estimated to be realized during 2024, 28% during 2025, 8% during 2026, and 15% will be realized in more than 3 years. |
FINANCIAL LIABILTIES (Tables)
FINANCIAL LIABILTIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Financial Instruments [Abstract] | |
Disclosure of financial liabilities | As of US$ MILLIONS Dec. 31, 2023 Dec. 31, 2022 Current: Interest rate swaps $ 60 $ 72 Total current financial liabilities $ 60 $ 72 Non-current: Interest rate swaps $ 15 $ — Total non-current financial liabilities $ 15 $ — 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 (1) 21,094,441 — 751 Share issuance - BIPC Exchangeable LP Unit exchanges 220,956 — 10 Shares exchanged to units (11,002) — — Remeasurement of liability — — (34) Balance at December 31, 2023 131,872,066 2 $ 4,153 (1) Refer to Note 4, Acquisition of Businesses, for further details |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Financial Instruments [Abstract] | |
Disclosure of detailed information about borrowings | The current and non-current balances of non-recourse borrowings are as follows: As of US$ MILLIONS Dec. 31, 2023 Dec. 31, 2022 Current $ 1,021 $ 328 Non-current 11,007 4,249 Total $ 12,028 $ 4,577 Principal repayments on non-recourse borrowings due over the next five years and thereafter are as follows: US$ MILLIONS Total 2024 $ 1,203 2025 917 2026 2,556 2027 1,697 2028 1,085 Thereafter 5,346 Total principal repayments 12,804 Deferred financing costs and other (776) Total - Dec. 31, 2023 $ 12,028 Total - Dec. 31, 2022 $ 4,577 The weighted average interest rates of non-recourse borrowings are as follows: As of December 31, 2023 2022 Weighted average interest rates 5 % 8 % Principal repayments on non-recourse borrowings in their local currency are as follows: US$ MILLIONS, except as noted Dec. 31, 2023 Local Currency Dec. 31, 2022 Local Currency U.S. dollars $ 8,517 USD $ 8,517 $ 1,049 USD $ 1,049 British pounds 2,744 GBP 2,155 2,003 GBP 1,658 Brazilian real 1,543 BRL 7,467 1,543 BRL 8,047 |
Disclosure of reconciliation of liabilities arising from financing activities | Details of the “Changes in liabilities from financing activities”, including both changes arising from cash flows and non-cash changes are as follows: US$ MILLIONS Dec. 31, 2023 Cash Flows Acquisitions Foreign Exchange Movement Dec. 31, 2022 Non-recourse borrowings $ 12,028 $ 177 $ 7,041 $ 233 $ 4,577 US$ MILLIONS Dec. 31, 2022 Cash Flows Acquisitions Foreign Exchange Movement Dec. 31, 2021 Non-recourse borrowings $ 4,577 $ 1,083 $ — $ (62) $ 3,556 |
NON-WHOLLY OWNED SUBSIDIARIES (
NON-WHOLLY OWNED SUBSIDIARIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Interests In Other Entities [Abstract] | |
Summarized accounts for non-wholly owned subsidiaries | The following tables present summarized accounts for non-wholly owned subsidiaries on the Consolidated Statements of Financial Position: As of December 31, 2023 US$ MILLIONS Current Non-Current Current Non-Current Non-Controlling Equity in Net Assets Attributable to the partnership Brazilian regulated gas transmission operation $ 747 $ 3,576 $ 549 $ 3,099 $ 526 $ 149 U.K. regulated distribution operation 312 5,579 387 3,744 344 1,416 Global intermodal logistics operation (1) 435 11,950 984 6,639 3,597 1,165 Total $ 1,494 $ 21,105 $ 1,920 $ 13,482 $ 4,467 $ 2,730 (1) See Note 4, Acquisition of Businesses, for additional information. As of December 31, 2022 US$ MILLIONS Current Non-Current Current Non-Current Non-Controlling Equity in Net Assets Attributable to the partnership Brazilian regulated gas transmission operation $ 737 $ 3,362 $ 486 $ 3,034 $ 460 $ 119 U.K. regulated distribution operation 264 4,821 690 2,864 298 1,233 Total $ 1,001 $ 8,183 $ 1,176 $ 5,898 $ 758 $ 1,352 The following tables present summarized accounts for non-wholly owned subsidiaries on the Consolidated Statements of Operating Results: Year ended December 31, 2023 Attributable to non-controlling interest Attributable to US$ MILLIONS Revenue Net Other Net Other Brazilian regulated gas transmission operation $ 1,483 $ 455 $ 44 $ 202 $ 19 U.K. regulated distribution operation 635 19 38 78 154 Global intermodal logistics operation (1) 385 56 (33) 22 (13) Total $ 2,503 $ 530 $ 49 $ 302 $ 160 (1) See Note 4, Acquisition of Businesses, for additional information. Year ended December 31, 2022 Attributable to non-controlling interest Attributable to US$ MILLIONS Revenue Net Other Net Other Brazilian regulated gas transmission operation $ 1,314 $ 506 $ (2) $ 225 $ (1) U.K. regulated distribution operation 572 19 (20) 75 (78) Total $ 1,886 $ 525 $ (22) $ 300 $ (79) Year ended December 31, 2021 Attributable to non-controlling interest Attributable to US$ MILLIONS Revenue Net Other Net Other Brazilian regulated gas transmission operation $ 1,074 $ 361 $ (87) $ 150 $ (31) U.K. regulated distribution operation 569 34 6 138 26 Total $ 1,643 $ 395 $ (81) $ 288 $ (5) The following tables present summarized accounts for non-wholly owned subsidiaries on the Consolidated Statements of Cash Flows: Cash Flow Activities Year ended December 31, 2023 Year ended December 31, 2022 US$ MILLIONS Operating Investing Financing Operating Investing Financing Brazilian regulated gas transmission operation $ 739 $ (36) $ (742) $ 783 $ (80) $ (824) U.K. regulated distribution operation 226 (487) 309 293 (432) 101 Global intermodal logistics operation (1) 327 (3,048) 2,828 — — — Total $ 1,292 $ (3,571) $ 2,395 $ 1,076 $ (512) $ (723) (1) See Note 4, Acquisition of Businesses, for additional information. Cash Flow Activities Year ended December 31, 2021 US$ MILLIONS Operating Investing Financing Brazilian regulated gas transmission operation $ 768 $ (32) $ (473) U.K. regulated distribution operation 273 344 (582) Total $ 1,041 $ 312 $ (1,055) |
REVENUES (Tables)
REVENUES (Tables) | 12 Months Ended |
Dec. 31, 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 year ended December 31, US$ MILLIONS 2023 2022 2021 Gas Transmission $ 1,483 $ 1,314 $ 1,074 Distribution 397 372 374 Leasing 385 — — Connections 200 171 167 Other 38 29 28 Total $ 2,503 $ 1,886 $ 1,643 The following table disaggregates revenues by geographical region. For the year ended December 31, US$ MILLIONS 2023 2022 2021 Brazil $ 1,483 $ 1,314 $ 1,074 United Kingdom 635 572 569 United States 385 — — $ 2,503 $ 1,886 $ 1,643 As of US$ MILLIONS Dec. 31, 2023 Dec. 31, 2022 United Kingdom $ 5,624 $ 4,821 Brazil 3,596 3,362 Switzerland 2,197 — France 2,170 — Singapore 1,800 — China 1,573 — Denmark 1,232 — United States 375 — Australia 5 428 Other Asia 1,270 — Other Europe 632 — Other 631 — $ 21,105 $ 8,611 |
DIRECT OPERATING COSTS (Tables)
DIRECT OPERATING COSTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Direct Operating Costs [Abstract] | |
Disclosure Of Detailed Information On Operating Costs | The following table lists direct operating costs for the years ended December 31, 2023, 2022 and 2021. US$ MILLIONS 2023 2022 2021 Depreciation and amortization $ 365 $ 211 $ 236 Transportation and distribution 195 184 162 Operations and maintenance 94 56 49 Compensation 87 59 44 Cost of inventory 2 5 8 Other 35 27 27 Total $ 778 $ 542 $ 526 |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 31, 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) Share capital Balance at January 1, 2022 2,103,677 $ 53 Share issuance — — Balance at December 31, 2022 2,103,677 $ 53 Share issuance 9,013,983 339 Balance at December 31, 2023 11,117,660 $ 392 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes [Abstract] | |
Deferred income tax balances | The sources of deferred income tax balances are as follows: As of December 31, US$ MILLIONS 2023 2022 Deferred income tax assets Financial instruments and other $ 18 $ 41 Tax losses carried forward 38 37 $ 56 $ 78 Deferred income tax liabilities Long-lived assets $ (2,151) $ (1,573) Net deferred income tax liabilities $ (2,095) $ (1,495) Reflected in the statement of financial position as follows: Deferred tax assets $ 40 $ 43 Deferred tax liabilities (2,135) (1,538) Net deferred tax liabilities $ (2,095) $ (1,495) The sources of deferred income tax balances and movements are as follows: Recognized in US$ MILLIONS Jan. 1, 2023 Net Other Other (1) Acquisitions/Dispositions Dec. 31, 2023 Deferred tax assets related to non-capital losses and capital losses $ 37 $ (2) $ — $ 2 $ 1 $ 38 Deferred tax liabilities related to differences in tax and book basis, net (1,532) (18) (34) (104) (445) (2,133) Net deferred tax liabilities $ (1,495) $ (20) $ (34) $ (102) $ (444) $ (2,095) Recognized in US$ MILLIONS Jan. 1, 2022 Net Other Other (1) Acquisitions/Dispositions Dec. 31, 2022 Deferred tax assets related to non-capital losses and capital losses $ 43 $ (1) $ — $ (5) $ — $ 37 Deferred tax liabilities related to differences in tax and book basis, net (1,629) 80 (14) 31 — (1,532) Net deferred tax liabilities $ (1,586) $ 79 $ (14) $ 26 $ — $ (1,495) (1) Other items relate to foreign exchange as deferred income taxes are calculated based on the functional currency of each operating entity. For the year ended December 31, US$ MILLIONS 2023 2022 2021 Deferred tax arising on income and expenses recognized in other comprehensive income Revaluation of property, plant and equipment $ 36 $ 25 $ 121 Cash flow hedges 6 (19) — Other (8) 8 — Total income tax recognized directly in other comprehensive income $ 34 $ 14 $ 121 |
Components of income tax expense (recovery) | The major components of income tax expense include the following: For the year ended December 31, US$ MILLIONS 2023 2022 2021 Tax expense comprises: Current income tax expense $ 348 $ 341 $ 234 Deferred income tax expense Origination and reversal of temporary differences 22 16 59 Change in tax rates or the imposition of new taxes 4 — 96 Deferred tax assets (recognized)/not recognized (6) (95) 16 Total income tax expense $ 368 $ 262 $ 405 Income tax on income before tax and non-controlling interests reconciles to tax expense as follows: Net income before income tax and non-controlling interests $ 974 $ 1,881 $ 432 Income tax expense calculated at the domestic rates applicable to profits in the country concerned 328 576 179 Change in tax rates and new legislation 4 — 96 International operations subject to different tax rates 6 (1) (2) Taxable income attributable to non-controlling interests — (2) (4) Portion of gains subject to different tax rates — — (37) Deferred tax assets (recognized)/not recognized (6) (95) 16 Foreign exchange (6) 12 2 Non-deductible dividends on exchangeable shares 47 42 30 Non-deductible remeasurement adjustments on exchangeable and class B shares (9) (280) 119 Permanent differences and other 4 10 6 Income tax expense recognized in profit or loss $ 368 $ 262 $ 405 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of analysis of other comprehensive income by item [abstract] | |
Schedule of accumulated other comprehensive income (loss) | US$ MILLIONS Revaluation Foreign Cash Flow Equity accounted investments Accumulated Balance at December 31, 2021 $ 945 $ (557) $ 4 $ — $ 392 Other comprehensive income (loss) 60 (152) (21) 27 (86) Balance at December 31, 2022 $ 1,005 $ (709) $ (17) $ 27 $ 306 Other comprehensive income (loss) 85 109 — (27) 167 Balance at December 31, 2023 $ 1,090 $ (600) $ (17) $ — $ 473 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Financial Instruments [Abstract] | |
Notional amount of derivative positions | The aggregate notional amount of our company’s derivative positions at December 31, 2023 and 2022 were as follows: As of December 31, US$ MILLIONS Note 2023 2022 Interest rate swaps and other (a) $ 2,946 $ 993 $ 2,946 $ 993 |
Disclosure of change in fair values of derivative positions | The following table presents the change in fair values of our company’s derivative positions during the years ended December 31, 2023 and 2022: US$ MILLIONS Unrealized Gains Unrealized Losses Net Change During 2023 Net Change During 2022 Interest rate swaps and other $ 24 $ (36) $ (12) $ (58) $ 24 $ (36) $ (12) $ (58) |
Disclosure of information about terms and conditions of hedging instruments | The following table presents the notional amounts underlying our company’s derivative instruments by term to maturity as at December 31, 2023 and the comparative notional amounts at December 31, 2022. Our Company’s derivative instruments qualify for hedge accounting: 2023 2022 US$ MILLIONS < 1 year 1 to 5 years > 5 years Total Notional Total Notional Interest rate swaps and other $ 300 $ 1,646 $ 1,000 $ 2,946 $ 993 $ 300 $ 1,646 $ 1,000 $ 2,946 $ 993 |
Disclosure of derivatives elected for hedge accounting | Changes in the fair value of the effective portion of the hedges are recorded in either other comprehensive income or net income, depending on the hedge classification, whereas changes in the fair value of the ineffective portion of the hedge are recorded in net income: 2023 2022 AS AT AND FOR THE YEARS ENDED (US$ MILLIONS) Notional Effective Ineffective Notional Effective Ineffective Cash flow hedges $ 2,946 $ (24) $ — $ 993 $ (58) $ — |
FINANCIAL RISK MANAGEMENT (Tabl
FINANCIAL RISK MANAGEMENT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Financial Instruments [Abstract] | |
Disclosure of capital structure | The capital structure of our company consists of debt, offset by cash and cash equivalents, exchangeable and class B shares, loans payable to Brookfield Infrastructure and share capital comprised of issued capital and accumulated gains. US$ MILLIONS 2023 2022 Non-recourse borrowings $ 12,028 $ 4,577 Cash and cash equivalents (539) (445) Net debt 11,489 4,132 Exchangeable and class B shares 4,153 3,426 Loans payable to Brookfield Infrastructure 26 26 Total equity 4,068 (361) Total capital and net debt $ 19,736 $ 7,223 Net debt to capitalization ratio 58 % 57 % |
Disclosure of maturity analysis for financial liabilities | The tables include both interest and principal cash flows: Less than 1-2 years 2-5 years 5+ years Total December 31, 2023 US$ MILLIONS Accounts payable and other liabilities $ 821 $ 5 $ 4 $ 7 $ 837 Non-recourse borrowings 1,203 917 5,338 5,346 12,804 Financial liabilities 60 1 13 1 75 Exchangeable and class B shares 4,153 — — — 4,153 Loans payable to Brookfield Infrastructure 26 — — — 26 Interest Expense: Non-recourse borrowings 662 588 1,214 988 3,452 Less than 1-2 years 2-5 years 5+ years Total December 31, 2022 US$ MILLIONS Accounts payable and other liabilities $ 586 $ 2 $ 1 $ — $ 589 Non-recourse borrowings 330 178 1,231 2,856 4,595 Financial liabilities 72 — — — 72 Exchangeable and class B shares 3,426 — — — 3,426 Loans payable to Brookfield Infrastructure 26 — — — 26 Interest Expense: Non-recourse borrowings 133 67 179 333 712 |
Disclosure of sensitivity analysis for interest rate and foreign exchange risk | Such parallel shift in the yield curve by 50 basis points would have had the following impact, assuming all other variables were held constant: 2023 US$ MILLIONS 50 bp decrease 50 bp increase Net income (loss) to the partnership (1) $ 4 $ (4) Other comprehensive income to the partnership (1) — — (1) Net income and other comprehensive income is attributable to the partnership prior to the special distribution as well as subsequently as a result of the partnership holding all of the class C shares issued by our company. Please refer to Note 3(b), Material Accounting Policy Information, for further details. The following tables detail our company’s sensitivity to a 10% increase and decrease in the U.S. dollar against the relevant foreign currencies, with all other variables held constant as at reporting date. 10% is the sensitivity rate used when reporting foreign currency risk internally. The sensitivity analysis is performed as follows: • Outstanding foreign currency denominated monetary items (excluding foreign exchange derivative contracts) are adjusted at period end for a 10% change in foreign currency rates from the rate at which they are translated; • Foreign currency derivative contracts are measured as the change in fair value of the derivative as a result of a 10% change in the spot currency rate; and • The impact on net income results from performing a sensitivity of a 10% change in foreign exchange rates applied to the profit or loss contribution from foreign operations (after considering the impact of foreign exchange derivative contracts). Impact on Net Income to the Partnership 2023 2022 2021 US$ MILLIONS -10% 10% -10% 10% -10% 10% USD/GBP $ (8) $ 8 $ (8) $ 8 $ (6) $ 6 USD/BRL (20) 20 (23) 23 (15) 15 USD/AUD 2 (2) (1) 1 — — Impact on Parent Equity 2023 2022 2021 US$ MILLIONS -10% 10% -10% 10% -10% 10% USD/GBP $ (142) $ 142 $ (123) $ 123 $ (130) $ 130 USD/BRL (15) 15 (12) 12 (9) 9 USD/EUR (1) 1 — — — — USD/AUD — — (43) 43 — — |
Disclosure of foreign currency exposure | The tables below set out our company’s currency exposure at December 31, 2023, 2022 and 2021: 2023 US$ MILLIONS USD GBP BRL EUR & Others Total Assets: Current assets $ 419 $ 318 $ 747 $ 10 $ 1,494 Non-current assets 11,947 5,580 3,576 2 21,105 $ 12,366 $ 5,898 $ 4,323 $ 12 $ 22,599 Liabilities: Current liabilities $ 982 $ 387 $ 549 $ 2 $ 1,920 Non-current liabilities 6,639 3,744 3,099 — 13,482 $ 7,621 $ 4,131 $ 3,648 $ 2 $ 15,402 Non-controlling interest 3,586 348 526 7 4,467 Net investment attributable to Brookfield Infrastructure $ 1,159 $ 1,419 $ 149 $ 3 $ 2,730 2022 US$ MILLIONS GBP BRL AUD Total Assets: Current assets $ 264 $ 737 $ — $ 1,001 Non-current assets 4,821 3,362 428 8,611 $ 5,085 $ 4,099 $ 428 $ 9,612 Liabilities: Current liabilities $ 690 $ 486 $ — $ 1,176 Non-current liabilities 2,864 3,034 — 5,898 $ 3,554 $ 3,520 $ — $ 7,074 Non-controlling interest 298 460 — 758 Net investment attributable to Brookfield Infrastructure $ 1,233 $ 119 $ 428 $ 1,780 2021 US$ MILLIONS GBP BRL AUD Total Assets: Current assets $ 249 $ 668 $ — $ 917 Non-current assets 4,961 3,115 — 8,076 $ 5,210 $ 3,783 $ — $ 8,993 Liabilities: Current liabilities $ 316 $ 1,278 $ — $ 1,594 Non-current liabilities 3,285 2,028 — 5,313 $ 3,601 $ 3,306 $ — $ 6,907 Non-controlling interest 314 389 — 703 Net investment attributable to Brookfield Infrastructure $ 1,295 $ 88 $ — $ 1,383 |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Cash Flow Statement [Abstract] | |
Disclosure of interest and income taxes paid | For the year ended December 31, US$ MILLIONS 2023 2022 2021 Interest paid $ 678 $ 554 $ 261 Income taxes paid 318 292 165 |
Disclosure of changes in non-cash working capital | Details of “Changes in non-cash working capital, net” on the Consolidated Statements of Cash Flows are as follows: For the year ended December 31, US$ MILLIONS 2023 2022 2021 Accounts receivable $ (85) $ (61) $ (91) Accounts payable and other 91 234 126 Changes in non-cash working capital, net $ 6 $ 173 $ 35 |
ORGANIZATION AND DESCRIPTION _2
ORGANIZATION AND DESCRIPTION OF OUR BUSINESS - Narrative (Details) | Mar. 31, 2020 USD ($) agreement $ / shares shares |
Disclosure of corporate information [line items] | |
Class A shares to limited partner units, conversion ratio | 0.11111 |
Exchangeable shares issued as a result of the holding LP distribution, Brookfield (in shares) | shares | 20,600,000 |
Exchangeable shares issued as a result of the holding LP distribution, Partnership (in shares) | shares | 48,900,000 |
Percentage of issued and outstanding exchangeable shares held by holders of units | 70.40% |
Percentage of issued and outstanding exchangeable shares held by partner | 29.60% |
Percentage of voting interest in company | 82.40% |
Equity commitment from parent | $ 1,000,000,000 |
Class C exchangeable shares, conversion ratio (in shares) | shares | 1 |
Exchangeable shares listing term | 5 days |
Preferred shares (in dollars per share) | $ / shares | $ 25 |
Subsidiaries | |
Disclosure of corporate information [line items] | |
Percentage of voting interest in company | 75% |
Holders of exchangeable shares | |
Disclosure of corporate information [line items] | |
Percentage of voting interest in company | 25% |
Brookfield Infrastructure Partners L.P | |
Disclosure of corporate information [line items] | |
Percentage of voting interest in company | 7.40% |
Holders of exchangeable shares, excluding Parent | |
Disclosure of corporate information [line items] | |
Percentage of voting interest in company | 17.60% |
Senior Unsecured Revolving Credit Facility | |
Disclosure of corporate information [line items] | |
Number of credit agreements | agreement | 2 |
Borrowings maturity, term | 10 years |
Credit facility, maximum borrowing capacity | $ 1,000,000,000 |
Senior Unsecured Revolving Credit Facility | Subsidiaries | |
Disclosure of corporate information [line items] | |
Credit facility, maximum borrowing capacity | 1,000,000,000 |
Senior Unsecured Revolving Credit Facility | Brookfield Infrastructure Partners L.P | |
Disclosure of corporate information [line items] | |
Credit facility, maximum borrowing capacity | $ 1,000,000,000 |
SUBSIDIARIES (Details)
SUBSIDIARIES (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
U.K. regulated distribution operation | |||
Disclosure of subsidiaries [line items] | |||
Effective Ownership Interest (%) | 80% | 80% | 80% |
Voting Interest (%) | 80% | 80% | 80% |
Brazil Regulated Gas Transmission Operation | |||
Disclosure of subsidiaries [line items] | |||
Effective Ownership Interest (%) | 31% | 31% | 31% |
Voting Interest (%) | 92% | 92% | 92% |
Global intermodal logistics operation | |||
Disclosure of subsidiaries [line items] | |||
Effective Ownership Interest (%) | 28% | 0% | 0% |
Voting Interest (%) | 100% | 0% | 0% |
MATERIAL ACCOUNTING POLICY IN_4
MATERIAL ACCOUNTING POLICY INFORMATION (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life of intangible asset | 15 years |
Brazilian regulated gas transmission operation | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life of intangible asset | 29 years |
Buildings | Top of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, property, plant and equipment | 50 years |
Machinery and equipment | Top of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, property, plant and equipment | 20 years |
Leasehold improvements | Top of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, property, plant and equipment | 25 years |
Network systems | Top of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, property, plant and equipment | 80 years |
ACQUISITION OF BUSINESSES (Deta
ACQUISITION OF BUSINESSES (Details) - Triton International Limited - USD ($) $ in Millions | 12 Months Ended | |
Sep. 28, 2023 | Dec. 31, 2023 | |
Disclosure of detailed information about business combination [line items] | ||
Consideration transferred, acquisition-date fair value | $ 1,156 | |
Effective Ownership Interest (%) | 28% | |
Acquisition-related costs | $ 49 | |
Revenue if acquisition effective at beginning of year | $ 1,183 | |
Net income if acquisition effective at beginning of year | $ 378 | |
Customer order backlog | ||
Disclosure of detailed information about business combination [line items] | ||
Useful lives | 50 years | |
Brand names | Bottom of range | ||
Disclosure of detailed information about business combination [line items] | ||
Useful lives | 10 years | |
Brand names | Top of range | ||
Disclosure of detailed information about business combination [line items] | ||
Useful lives | 50 years | |
Consortium | ||
Disclosure of detailed information about business combination [line items] | ||
Consideration transferred, acquisition-date fair value | $ 4,500 |
ACQUISITION OF BUSINESSES - Pur
ACQUISITION OF BUSINESSES - Purchase Price Allocation (Details) $ in Millions | Sep. 28, 2023 USD ($) |
Triton International Limited | |
Consideration transferred | |
Cash | $ 350 |
BIPC exchangeable shares | 751 |
Pre-existing interest in the business | 55 |
Total consideration | 1,156 |
Fair value of assets and liabilities acquired | |
Cash and cash equivalents | 491 |
Account receivable and other | 1,871 |
Property, plant and equipment | 8,811 |
Intangible assets | 710 |
Goodwill | 1,163 |
Accounts payable and other liabilities | (408) |
Non-recourse borrowings | (7,041) |
Deferred income tax liabilities | (444) |
Net assets acquired before non-controlling interest | 5,153 |
Non-controlling interest | (3,997) |
Net assets acquired | 1,156 |
Triton International Limited, Preferred Equity Instruments | |
Fair value of assets and liabilities acquired | |
Non-controlling interest | $ (641) |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS - Allocation of Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of financial assets [line items] | ||
Financial assets | $ 4,148 | $ 1,549 |
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 17,119 | 8,690 |
Fair value through profit or loss | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 75 | 72 |
Amortized Cost | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 17,044 | 8,618 |
Fair value through profit or loss | ||
Disclosure of financial assets [line items] | ||
Financial assets | 103 | 97 |
Amortized Cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | 4,045 | 1,452 |
Accounts payable and other (current and non-current) | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 837 | 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 | 837 | 589 |
Non-recourse borrowings (current and non-current) | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 12,028 | 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 | 12,028 | 4,577 |
Exchangeable and Class B Shares | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 4,153 | 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 | 4,153 | 3,426 |
Financial liabilities | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 75 | 72 |
Financial liabilities | Fair value through profit or loss | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 75 | 72 |
Financial liabilities | 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 |
Cash and cash equivalents | ||
Disclosure of financial assets [line items] | ||
Financial assets | 539 | 445 |
Cash and cash equivalents | Fair value through profit or loss | ||
Disclosure of financial assets [line items] | ||
Financial assets | 0 | 0 |
Cash and cash equivalents | Amortized Cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | 539 | 445 |
Accounts receivable and other (current and non-current) | ||
Disclosure of financial assets [line items] | ||
Financial assets | 2,218 | 441 |
Accounts receivable and other (current and non-current) | Fair value through profit or loss | ||
Disclosure of financial assets [line items] | ||
Financial assets | 0 | 0 |
Accounts receivable and other (current and non-current) | Amortized Cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | 2,218 | 441 |
Financial Assets | ||
Disclosure of financial assets [line items] | ||
Financial assets | 103 | 97 |
Financial Assets | Fair value through profit or loss | ||
Disclosure of financial assets [line items] | ||
Financial assets | 103 | 97 |
Financial Assets | Amortized Cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | 0 | 0 |
Due from Brookfield Infrastructure | ||
Disclosure of financial assets [line items] | ||
Financial assets | 1,288 | 566 |
Due from Brookfield Infrastructure | Fair value through profit or loss | ||
Disclosure of financial assets [line items] | ||
Financial assets | 0 | 0 |
Due from Brookfield Infrastructure | Amortized Cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | $ 1,288 | $ 566 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS - Allocation of Financial Instruments - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Financial Assets | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial instruments designated as hedging instruments, at fair value | $ 103 | $ 97 |
Financial liabilities | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial instruments designated as hedging instruments, at fair value | $ 75 | $ 72 |
FAIR VALUE OF FINANCIAL INSTR_5
FAIR VALUE OF FINANCIAL INSTRUMENTS - Carrying and Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of financial assets [line items] | ||
Carrying Value | $ 4,148 | $ 1,549 |
Fair Value | 4,148 | 1,549 |
Disclosure of financial liabilities [line items] | ||
Carrying Value | 17,119 | 8,690 |
Fair Value | 16,927 | 8,416 |
Accounts payable and other (current and non-current) | ||
Disclosure of financial liabilities [line items] | ||
Carrying Value | 837 | 589 |
Fair Value | 837 | 589 |
Non Recourse Borrowings | ||
Disclosure of financial liabilities [line items] | ||
Carrying Value | 12,028 | 4,577 |
Fair Value | 11,836 | 4,303 |
Exchangeable and Class B Shares | ||
Disclosure of financial liabilities [line items] | ||
Carrying Value | 4,153 | 3,426 |
Fair Value | 4,153 | 3,426 |
Financial liabilities | ||
Disclosure of financial liabilities [line items] | ||
Carrying Value | 75 | 72 |
Fair Value | 75 | 72 |
Loans payable to Brookfield Infrastructure | ||
Disclosure of financial liabilities [line items] | ||
Carrying Value | 26 | 26 |
Fair Value | 26 | 26 |
Cash and cash equivalents | ||
Disclosure of financial assets [line items] | ||
Carrying Value | 539 | 445 |
Fair Value | 539 | 445 |
Accounts receivable and other (current and non-current) | ||
Disclosure of financial assets [line items] | ||
Carrying Value | 2,218 | 441 |
Fair Value | 2,218 | 441 |
Financial Assets | ||
Disclosure of financial assets [line items] | ||
Carrying Value | 103 | 97 |
Fair Value | 103 | 97 |
Due from Brookfield Infrastructure | ||
Disclosure of financial assets [line items] | ||
Carrying Value | 1,288 | 566 |
Fair Value | $ 1,288 | $ 566 |
FAIR VALUE OF FINANCIAL INSTR_6
FAIR VALUE OF FINANCIAL INSTRUMENTS - Narrative (Details) - Cash flow hedges - Financial assets at fair value through other comprehensive income, category - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | |||
Gains (losses) on hedging instrument, fair value hedges | $ (24) | $ (58) | $ 0 |
Derivative financial assets | $ 28 | $ 25 |
FAIR VALUE OF FINANCIAL INSTR_7
FAIR VALUE OF FINANCIAL INSTRUMENTS - Valuation Techniques and Significant Inputs (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial liabilities | $ 75 | $ 72 |
Recurring fair value measurement | Interest rate swaps & other | Level 2 | Discounted cash flow | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial liabilities | 75 | 72 |
Recurring fair value measurement | Interest rate swaps & other | Level 2 | Discounted cash flow | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | $ 103 | $ 97 |
CASH AND CASH EQUIVALENTS (Deta
CASH AND CASH EQUIVALENTS (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Cash and cash equivalents [abstract] | ||||
Cash | $ 111 | $ 4 | ||
Cash equivalents | 428 | 441 | ||
Total cash and cash equivalents | $ 539 | $ 445 | $ 469 | $ 192 |
ACCOUNTS RECEIVABLE AND OTHER_2
ACCOUNTS RECEIVABLE AND OTHER (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Current: | ||
Accounts receivables | $ 797 | $ 441 |
Finance lease receivables | 91 | 0 |
Prepayments & other assets | 51 | 58 |
Total current | 939 | 499 |
Non-current: | ||
Finance lease receivables | 1,239 | 0 |
Restricted cash and cash equivalents | 91 | 0 |
Other assets | 94 | 17 |
Total non-current | 1,424 | 17 |
Brazil | ||
Current: | ||
Accounts receivables | $ 291 | $ 254 |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Net Book Value (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | $ 4,718 | $ 4,803 |
Additions, net of disposals | 483 | 440 |
Acquisitions through business combinations, property, plant and equipment | 8,811 | |
Non-cash additions | (16) | 3 |
Depreciation expense | (252) | (110) |
Fair value adjustments | 142 | 100 |
Net foreign currency exchange differences | 265 | (518) |
Ending balance | 14,151 | 4,718 |
Gross carrying amount | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 3,947 | 3,935 |
Additions, net of disposals | 468 | 435 |
Acquisitions through business combinations, property, plant and equipment | 8,811 | |
Non-cash additions | (11) | 7 |
Depreciation expense | 0 | 0 |
Fair value adjustments | 0 | 0 |
Net foreign currency exchange differences | 223 | (430) |
Ending balance | 13,438 | 3,947 |
Accumulated depreciation | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | (707) | (673) |
Additions, net of disposals | 15 | 5 |
Acquisitions through business combinations, property, plant and equipment | 0 | |
Non-cash additions | (5) | (4) |
Depreciation expense | (252) | (110) |
Fair value adjustments | 0 | 0 |
Net foreign currency exchange differences | (41) | 75 |
Ending balance | (990) | (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 |
Acquisitions through business combinations, property, plant and equipment | 0 | |
Non-cash additions | 0 | 0 |
Depreciation expense | 0 | 0 |
Fair value adjustments | 142 | 100 |
Net foreign currency exchange differences | 83 | (163) |
Ending balance | $ 1,703 | $ 1,478 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT - Valuation Technique (Details) - Property, plant and equipment - Recurring fair value measurement - Discounted cash flow model | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Terminal Value Multiple | 15 | 18 |
Investment Horizon | 10 years | 10 years |
Interest rate, measurement input | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Discount Rate | 0.08 | 0.07 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Gain from revaluation | $ 142 | $ 100 |
Property, plant and equipment, revalued assets, at cost | 12,700 | 3,449 |
Accumulated fair value adjustments | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Gain from revaluation | $ 142 | $ 100 |
INTANGIBLE ASSETS - Net Amounts
INTANGIBLE ASSETS - Net Amounts (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of detailed information about intangible assets [line items] | |||
Net intangible assets | $ 3,699 | $ 2,847 | |
Cost | |||
Disclosure of detailed information about intangible assets [line items] | |||
Net intangible assets | 4,657 | 3,629 | $ 3,332 |
Accumulated amortization | |||
Disclosure of detailed information about intangible assets [line items] | |||
Net intangible assets | $ (958) | $ (782) | $ (645) |
INTANGIBLE ASSETS - Cash Genera
INTANGIBLE ASSETS - Cash Generating Units (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of information for cash-generating units [line items] | ||
Intangible assets | $ 3,699 | $ 2,847 |
Brazilian regulated gas transmission operation | ||
Disclosure of information for cash-generating units [line items] | ||
Intangible assets | 2,970 | 2,816 |
Global intermodal logistics operation | ||
Disclosure of information for cash-generating units [line items] | ||
Intangible assets | 704 | 0 |
U.K. regulated distribution operation | ||
Disclosure of information for cash-generating units [line items] | ||
Intangible assets | $ 25 | $ 31 |
INTANGIBLE ASSETS - Reconciliat
INTANGIBLE ASSETS - Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 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 | 3,699 | $ 2,847 |
Cost | ||
Reconciliation of changes in intangible assets other than goodwill | ||
Cost at beginning of the year | 3,629 | 3,332 |
Acquisitions through business combinations | 710 | 0 |
Additions, net of disposals | 36 | 81 |
Foreign currency translation | 282 | 216 |
Cost at end of year | $ 4,657 | $ 3,629 |
INTANGIBLE ASSETS - Accumulated
INTANGIBLE ASSETS - Accumulated Amortization (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 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 | 3,699 | $ 2,847 |
Accumulated amortization | ||
Disclosure of detailed information about intangible assets [line items] | ||
Cost at beginning of the year | (782) | (645) |
Amortization | (113) | (101) |
Foreign currency translation | (63) | (36) |
Cost at end of year | $ (958) | $ (782) |
INVESTMENTS IN ASSOCIATES - Bal
INVESTMENTS IN ASSOCIATES - Balance of investment (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Interests In Other Entities [Abstract] | ||||
Balance at the beginning of the period | $ 428 | $ 0 | ||
Acquisitions | 0 | 455 | ||
Share of (losses) earnings from investments in associates | [1] | (20) | 4 | $ 0 |
Foreign currency translation and other | 25 | (25) | ||
Share of other comprehensive income | (27) | 27 | ||
Distributions | (3) | (33) | ||
Disposition of interest | (403) | 0 | ||
Ending Balance | $ 0 | $ 428 | $ 0 | |
[1] Earnings per share have not been presented in the financial statements, as the underlying shares do not constitute “ordinary shares” under IAS 33, Earnings per share. See Note 3(b), Material Accounting Policy Information, for further details. |
INVESTMENTS IN ASSOCIATES - Nar
INVESTMENTS IN ASSOCIATES - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Aug. 31, 2023 | Feb. 28, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of Associates and Joint Ventures [Line Items] | |||||
Acquisition-related costs for transaction | $ 105 | ||||
Disposal of investments in associates | $ 435 | $ 0 | $ 0 | ||
AusNet Services Ltd | |||||
Disclosure of Associates and Joint Ventures [Line Items] | |||||
Effective Ownership Interest (%) | 7.90% | ||||
Consideration transferred, acquisition-date fair value | $ 455 | ||||
Disposal of investments in associates | $ 435 | ||||
Gain (loss) on disposition | 32 | ||||
Reclassification adjustments on exchange differences on translation, net of tax | $ 28 | $ 28 |
INVESTMENT IN ASSOCIATES - Bala
INVESTMENT IN ASSOCIATES - Balance Sheet Impact of Investments (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Disclosure of Associates and Joint Ventures [Line Items] | ||||
Current Assets | $ 2,804 | $ 1,567 | ||
Non-Current Assets | 21,105 | 8,611 | ||
Total assets | 23,909 | 10,178 | ||
Current Liabilities | 6,359 | 4,633 | ||
Total liabilities | 19,841 | 10,539 | ||
Net income | [1] | 606 | $ 1,619 | $ 27 |
Australian Regulated Utility | ||||
Disclosure of Associates and Joint Ventures [Line Items] | ||||
Ownership and voting Interest | 8% | |||
Current Assets | $ 211 | |||
Non-Current Assets | 13,330 | |||
Total assets | 13,541 | |||
Current Liabilities | 302 | |||
Non-Current Liabilities | 7,716 | |||
Total liabilities | 8,018 | |||
Total Net Assets | 5,523 | |||
Net income | 99 | 57 | ||
Australian Regulated Utility | Other Ownership Interests | ||||
Disclosure of Associates and Joint Ventures [Line Items] | ||||
Total Net Assets | 5,095 | |||
Australian Regulated Utility | Brookfield Infrastructure Partners LP | ||||
Disclosure of Associates and Joint Ventures [Line Items] | ||||
Total Net Assets | 428 | |||
Net income | (20) | 4 | ||
Associates And Joint Ventures | ||||
Disclosure of Associates and Joint Ventures [Line Items] | ||||
Current Assets | 211 | |||
Non-Current Assets | 13,330 | |||
Total assets | 13,541 | |||
Current Liabilities | 302 | |||
Non-Current Liabilities | 7,716 | |||
Total liabilities | 8,018 | |||
Total Net Assets | 5,523 | |||
Net income | 99 | 57 | ||
Associates And Joint Ventures | Other Ownership Interests | ||||
Disclosure of Associates and Joint Ventures [Line Items] | ||||
Total Net Assets | 5,095 | |||
Associates And Joint Ventures | Brookfield Infrastructure Partners LP | ||||
Disclosure of Associates and Joint Ventures [Line Items] | ||||
Total Net Assets | 428 | |||
Net income | $ (20) | $ 4 | ||
[1] Earnings per share have not been presented in the financial statements, as the underlying shares do not constitute “ordinary shares” under IAS 33, Earnings per share. See Note 3(b), Material Accounting Policy Information, for further details. |
INVESTMENT IN ASSOCIATES - Inco
INVESTMENT IN ASSOCIATES - Income Statement Impact of Investments (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Disclosure of Associates and Joint Ventures [Line Items] | ||||
Revenues | [1] | $ 2,503 | $ 1,886 | $ 1,643 |
Net income | [1] | 606 | 1,619 | 27 |
Other comprehensive income | 216 | (108) | (86) | |
Comprehensive income (loss) | 822 | 1,511 | $ (59) | |
Acquisition-related costs for transaction | 105 | |||
Associates And Joint Ventures | ||||
Disclosure of Associates and Joint Ventures [Line Items] | ||||
Revenues | 1,008 | 1,227 | ||
Net income | 99 | 57 | ||
Other comprehensive income | (375) | 21 | ||
Comprehensive income (loss) | (276) | 78 | ||
Australian Regulated Utility | ||||
Disclosure of Associates and Joint Ventures [Line Items] | ||||
Revenues | 1,008 | 1,227 | ||
Net income | 99 | 57 | ||
Other comprehensive income | (375) | 21 | ||
Comprehensive income (loss) | $ (276) | $ 78 | ||
[1] Earnings per share have not been presented in the financial statements, as the underlying shares do not constitute “ordinary shares” under IAS 33, Earnings per share. See Note 3(b), Material Accounting Policy Information, for further details. |
INVESTMENT IN ASSOCIATES - Cash
INVESTMENT IN ASSOCIATES - Cash Flows Impact of Investments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of Associates and Joint Ventures [Line Items] | |||
Cash from operating activities | $ 1,059 | $ 893 | $ 839 |
Cash used by investing activities | (3,174) | (1,047) | 326 |
Cash from financing activities | 2,183 | (4) | (868) |
Change during the year | 68 | (158) | $ 297 |
Associates And Joint Ventures | |||
Disclosure of Associates and Joint Ventures [Line Items] | |||
Cash from operating activities | 380 | 427 | |
Cash used by investing activities | (395) | (452) | |
Cash from financing activities | 1 | (162) | |
Change during the year | (14) | (187) | |
Associates And Joint Ventures | Other Ownership Interests | |||
Disclosure of Associates and Joint Ventures [Line Items] | |||
Change during the year | (13) | (172) | |
Associates And Joint Ventures | Brookfield Infrastructure Partners LP | |||
Disclosure of Associates and Joint Ventures [Line Items] | |||
Change during the year | (1) | (15) | |
Australian Regulated Utility | |||
Disclosure of Associates and Joint Ventures [Line Items] | |||
Cash from operating activities | 380 | 427 | |
Cash used by investing activities | (395) | (452) | |
Cash from financing activities | 1 | (162) | |
Change during the year | (14) | (187) | |
Australian Regulated Utility | Other Ownership Interests | |||
Disclosure of Associates and Joint Ventures [Line Items] | |||
Change during the year | (13) | (172) | |
Australian Regulated Utility | Brookfield Infrastructure Partners LP | |||
Disclosure of Associates and Joint Ventures [Line Items] | |||
Change during the year | $ (1) | $ (15) |
INVESTMENTS IN ASSOCIATES - Agg
INVESTMENTS IN ASSOCIATES - Aggregate balances of investments (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Disclosure of Associates and Joint Ventures [Line Items] | ||||
Total assets | $ 23,909 | $ 10,178 | ||
Total liabilities | (19,841) | (10,539) | ||
Revenues | [1] | 2,503 | 1,886 | $ 1,643 |
Total net income for the period | [1] | 606 | 1,619 | 27 |
Share of (losses) earnings from investments in associates | [1] | $ (20) | 4 | $ 0 |
Acquisition-related costs for transaction | $ 105 | |||
[1] Earnings per share have not been presented in the financial statements, as the underlying shares do not constitute “ordinary shares” under IAS 33, Earnings per share. See Note 3(b), Material Accounting Policy Information, for further details. |
GOODWILL (Details)
GOODWILL (Details) - Goodwill - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Balance at beginning of the year | $ 518 | $ 489 |
Acquisitions through business combinations | 1,163 | 0 |
Foreign currency translation and other | 45 | 29 |
Balance at end of the year | $ 1,726 | $ 518 |
Bottom of range | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Discount rate applied to cash flow projections | 11% | |
Terminal rate applied to cash flow projections | 10 | |
Period over which management has projected cash flows | 9 years | |
Top of range | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Discount rate applied to cash flow projections | 17% | |
Terminal rate applied to cash flow projections | 15 | |
Period over which management has projected cash flows | 18 years |
GOODWILL - Cash Generating Unit
GOODWILL - Cash Generating Units Table (Details) - Goodwill - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Goodwill | $ 1,726 | $ 518 | $ 489 |
U.K. regulated distribution operation | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Goodwill | 37 | 30 | |
Global intermodal logistics operation | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Goodwill | 1,163 | 0 | |
Brazilian regulated gas transmission operation | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Goodwill | $ 526 | $ 488 |
ACCOUNTS PAYABLE AND OTHER (Det
ACCOUNTS PAYABLE AND OTHER (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Current: | ||
Accounts payable | $ 85 | $ 44 |
Accrued & other liabilities | 759 | 562 |
Deferred revenue | 255 | 175 |
Total current | 1,099 | 781 |
Non-current: | ||
Deferred revenue | 264 | 77 |
Provisions & other liabilities | 61 | 42 |
Total non-current | $ 325 | $ 119 |
2024 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Percentage of entity's deferred income recognized | 49% | |
2025 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Percentage of entity's deferred income recognized | 28% | |
2026 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Percentage of entity's deferred income recognized | 8% | |
After three years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Percentage of entity's deferred income recognized | 15% |
FINANCIAL LIABILITIES (Details)
FINANCIAL LIABILITIES (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Current: | ||
Interest rate swaps | $ 60 | $ 72 |
Total current financial liabilities | 60 | 72 |
Non-current: | ||
Interest rate swaps | 15 | 0 |
Total non-current financial liabilities | $ 15 | $ 0 |
FINANCIAL LIABILITIES - Narrati
FINANCIAL LIABILITIES - Narrative (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Jun. 10, 2022 | Sep. 30, 2023 shares | Nov. 30, 2021 USD ($) shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) | |
Disclosure of detailed information about financial instruments [line items] | ||||||
Equity issued, exchangeable shares (in shares) | 21,100,000 | 3,200,000 | ||||
Exchangeable shares issued, gross | $ | $ 134 | |||||
Share issue related cost | $ | $ 6 | |||||
Number of share issued, opening (in dollar per share) | $ / shares | $ 31.49 | |||||
Dividends recognised as distributions to owners | $ | $ 178 | $ 158 | $ 115 | |||
Stock split conversion ratio | 1.5 | |||||
Exchangeable shares outstanding (Shares) | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Issuance of exchangeable LP units (in shares) | 220,956 | |||||
Exchangeable share conversion (in shares) | 11,002 | 17,512 | ||||
Class C Shares | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Equity issued, exchangeable shares (in shares) | 9,000,000 |
FINANCIAL LIABILITIES - Exchang
FINANCIAL LIABILITIES - Exchangeable and Class B Shares (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Sep. 30, 2023 | Nov. 30, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Disclosure of financial liabilities [line items] | ||||||
Beginning balance, exchangeable and Class B shares | $ 3,426 | |||||
Remeasurement of liability, value | [1] | 34 | $ 1,058 | $ (447) | ||
Ending balance, exchangeable and Class B shares | 4,153 | 3,426 | ||||
Equity issued, exchangeable shares (in shares) | 21,100,000 | 3,200,000 | ||||
Exchangeable shares issued, net of costs | $ 0 | $ 0 | $ 128 | |||
Exchangeable shares outstanding (Shares) | ||||||
Disclosure of financial liabilities [line items] | ||||||
Beginning balance (in shares) | 110,157,540 | |||||
Share exchanges (in shares) | (11,002) | (17,512) | ||||
Remeasurement of liability (in shares) | 0 | 0 | ||||
Ending balance (in shares) | 131,872,066 | 110,157,540 | ||||
Issuance of exchangeable LP units (in shares) | 220,956 | |||||
Share issuance (in shares) | 21,094,441 | |||||
Class B shares outstanding (Shares) | ||||||
Disclosure of financial liabilities [line items] | ||||||
Beginning balance (in shares) | 2 | |||||
Share exchanges (in shares) | 0 | 0 | ||||
Remeasurement of liability (in shares) | 0 | 0 | ||||
Ending balance (in shares) | 2 | 2 | ||||
Issuance of exchangeable LP units (in shares) | 0 | |||||
Share issuance (in shares) | 0 | |||||
Exchangeable and class B shares (US$ Millions) | ||||||
Disclosure of financial liabilities [line items] | ||||||
Beginning balance, exchangeable and Class B shares | $ 3,426 | $ 4,466 | ||||
Share issuance, exchangeable share conversion | 19 | |||||
Exchangeable share conversion, value | 0 | (1) | ||||
Remeasurement of liability, value | (34) | (1,058) | ||||
Ending balance, exchangeable and Class B shares | 4,153 | $ 3,426 | $ 4,466 | |||
Share issuance, value | 751 | |||||
Issuance of exchangeable LP units, value | $ 10 | |||||
Share capital | Exchangeable shares outstanding (Shares) | ||||||
Disclosure of financial liabilities [line items] | ||||||
Beginning balance (in shares) | 110,567,671 | |||||
Share issuance, exchangeable share conversion (in shares) | 427,643 | |||||
Ending balance (in shares) | 110,567,671 | |||||
Share capital | Class B shares outstanding (Shares) | ||||||
Disclosure of financial liabilities [line items] | ||||||
Beginning balance (in shares) | 2 | |||||
Share issuance, exchangeable share conversion (in shares) | 0 | |||||
Ending balance (in shares) | 2 | |||||
[1] Earnings per share have not been presented in the financial statements, as the underlying shares do not constitute “ordinary shares” under IAS 33, Earnings per share. See Note 3(b), Material Accounting Policy Information, for further details. |
BORROWINGS - Non-Recourse Borro
BORROWINGS - Non-Recourse Borrowings (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of detailed information about borrowings [line items] | ||
Current | $ 1,021 | $ 328 |
Non-current | 11,007 | 4,249 |
Non-recourse borrowings (current and non-current) | ||
Disclosure of detailed information about borrowings [line items] | ||
Total | $ 12,028 | $ 4,577 |
BORROWINGS - Narrative (Details
BORROWINGS - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Global intermodal logistics operation | |
Disclosure of detailed information about borrowings [line items] | |
Acquisitions | $ 7,000 |
Non-recourse borrowings (current and non-current) | |
Disclosure of detailed information about borrowings [line items] | |
Increase in borrowings | 7,500 |
Incremental net borrowings | $ 500 |
BORROWINGS - Repayments on Non-
BORROWINGS - Repayments on Non-Recourse Borrowings (Details) - Non-recourse borrowings (current and non-current) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of detailed information about borrowings [line items] | ||
Total principal repayments | $ 12,804 | |
Deferred financing costs and other | (776) | |
Total | 12,028 | $ 4,577 |
2024 | ||
Disclosure of detailed information about borrowings [line items] | ||
Total principal repayments | 1,203 | |
2025 | ||
Disclosure of detailed information about borrowings [line items] | ||
Total principal repayments | 917 | |
2026 | ||
Disclosure of detailed information about borrowings [line items] | ||
Total principal repayments | 2,556 | |
2026 | ||
Disclosure of detailed information about borrowings [line items] | ||
Total principal repayments | 1,697 | |
2028 | ||
Disclosure of detailed information about borrowings [line items] | ||
Total principal repayments | 1,085 | |
Thereafter | ||
Disclosure of detailed information about borrowings [line items] | ||
Total principal repayments | $ 5,346 |
BORROWINGS - Weighted Average I
BORROWINGS - Weighted Average Interest Rate (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Interest on non-recourse borrowings | Weighted average | ||
Disclosure of detailed information about borrowings [line items] | ||
Weighted average interest rates | 5% | 8% |
BORROWINGS - Borrowings by Curr
BORROWINGS - Borrowings by Currency (Details) - Interest on non-recourse borrowings £ in Millions, R$ in Millions, $ in Millions | Dec. 31, 2023 USD ($) | Dec. 31, 2023 GBP (£) | Dec. 31, 2023 BRL (R$) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 GBP (£) | Dec. 31, 2022 BRL (R$) |
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings | $ 12,028 | $ 4,577 | ||||
U.S. dollars | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings | 8,517 | 1,049 | ||||
Local Currency | 8,517 | 1,049 | ||||
British pounds | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings | 2,744 | 2,003 | ||||
Local Currency | £ | £ 2,155 | £ 1,658 | ||||
Brazilian real | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings | $ 1,543 | $ 1,543 | ||||
Local Currency | R$ | R$ 7467 | R$ 8047 |
BORROWINGS - Supplemental Cash
BORROWINGS - Supplemental Cash Flows (Details) - Non-recourse borrowings (current and non-current) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of reconciliation of liabilities arising from financing activities [abstract] | ||
Beginning balance | $ 4,577 | $ 3,556 |
Cash Flows | 177 | 1,083 |
Acquisitions | 7,041 | 0 |
Foreign Exchange Movement | 233 | (62) |
Ending balance | $ 12,028 | $ 4,577 |
NON-WHOLLY OWNED SUBSIDIARIES -
NON-WHOLLY OWNED SUBSIDIARIES - Summarized Statement of Financial Position (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of subsidiaries [line items] | |||
Current Assets | $ 2,804 | $ 1,567 | |
Non-Current Assets | 21,105 | 8,611 | |
Current Liabilities | 6,359 | 4,633 | |
Non-controlling interests | 4,467 | 758 | |
Equity in Net Assets Attributable to the partnership | [1] | (399) | (1,119) |
Non-Wholly Owned Subsidiaries | |||
Disclosure of subsidiaries [line items] | |||
Current Assets | 1,494 | 1,001 | |
Non-Current Assets | 21,105 | 8,183 | |
Current Liabilities | 1,920 | 1,176 | |
Non-Current Liabilities | 13,482 | 5,898 | |
Non-controlling interests | 4,467 | 758 | |
Equity in Net Assets Attributable to the partnership | 2,730 | 1,352 | |
U.K. regulated distribution operation | |||
Disclosure of subsidiaries [line items] | |||
Current Assets | 312 | 264 | |
Non-Current Assets | 5,579 | 4,821 | |
Current Liabilities | 387 | 690 | |
Non-Current Liabilities | 3,744 | 2,864 | |
Non-controlling interests | 344 | 298 | |
Equity in Net Assets Attributable to the partnership | 1,416 | 1,233 | |
Global intermodal logistics operation | |||
Disclosure of subsidiaries [line items] | |||
Current Assets | 435 | ||
Non-Current Assets | 11,950 | ||
Current Liabilities | 984 | ||
Non-Current Liabilities | 6,639 | ||
Non-controlling interests | 3,597 | ||
Equity in Net Assets Attributable to the partnership | 1,165 | ||
Brazilian regulated gas transmission operation | |||
Disclosure of subsidiaries [line items] | |||
Current Assets | 747 | 737 | |
Non-Current Assets | 3,576 | 3,362 | |
Current Liabilities | 549 | 486 | |
Non-Current Liabilities | 3,099 | 3,034 | |
Non-controlling interests | 526 | 460 | |
Equity in Net Assets Attributable to the partnership | $ 149 | $ 119 | |
[1] Common equity is attributable to the partnership prior to the special distribution and subsequently as a result of the partnership holding all of the class C shares issued by our company. Please refer to Note 3(b), Material Accounting Policy Information, for further details. |
NON-WHOLLY OWNED SUBSIDIARIES_2
NON-WHOLLY OWNED SUBSIDIARIES - Summarized Statement of Operations (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Disclosure of subsidiaries [line items] | ||||
Revenues | [1] | $ 2,503 | $ 1,886 | $ 1,643 |
Non-controlling interests | [1] | 495 | 525 | 395 |
Non-Wholly Owned Subsidiaries | ||||
Disclosure of subsidiaries [line items] | ||||
Revenues | 2,503 | 1,886 | 1,643 | |
Non-controlling interests | 530 | 525 | 395 | |
Other Comprehensive Income (loss) | 49 | (22) | (81) | |
Net Income | 302 | 300 | 288 | |
Other Comprehensive Income (loss) | 160 | (79) | (5) | |
U.K. regulated distribution operation | ||||
Disclosure of subsidiaries [line items] | ||||
Revenues | 635 | 572 | 569 | |
Non-controlling interests | 19 | 19 | 34 | |
Other Comprehensive Income (loss) | 38 | (20) | 6 | |
Net Income | 78 | 75 | 138 | |
Other Comprehensive Income (loss) | 154 | (78) | 26 | |
Global intermodal logistics operation | ||||
Disclosure of subsidiaries [line items] | ||||
Revenues | 385 | |||
Non-controlling interests | 56 | |||
Other Comprehensive Income (loss) | (33) | |||
Net Income | 22 | |||
Other Comprehensive Income (loss) | (13) | |||
Brazilian regulated gas transmission operation | ||||
Disclosure of subsidiaries [line items] | ||||
Revenues | 1,483 | 1,314 | 1,074 | |
Non-controlling interests | 455 | 506 | 361 | |
Other Comprehensive Income (loss) | 44 | (2) | (87) | |
Net Income | 202 | 225 | 150 | |
Other Comprehensive Income (loss) | $ 19 | $ (1) | $ (31) | |
[1] Earnings per share have not been presented in the financial statements, as the underlying shares do not constitute “ordinary shares” under IAS 33, Earnings per share. See Note 3(b), Material Accounting Policy Information, for further details. |
NON-WHOLLY OWNED SUBSIDIARIES_3
NON-WHOLLY OWNED SUBSIDIARIES - Summarized Cash Flow Activities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of subsidiaries [line items] | |||
Operating | $ 1,059 | $ 893 | $ 839 |
Investing | (3,174) | (1,047) | 326 |
Financing | 2,183 | (4) | (868) |
Non-Wholly Owned Subsidiaries | |||
Disclosure of subsidiaries [line items] | |||
Operating | 1,292 | 1,076 | 1,041 |
Investing | (3,571) | (512) | 312 |
Financing | 2,395 | (723) | (1,055) |
U.K. regulated distribution operation | |||
Disclosure of subsidiaries [line items] | |||
Operating | 226 | 293 | 273 |
Investing | (487) | (432) | 344 |
Financing | 309 | 101 | (582) |
Brazilian regulated gas transmission operation | |||
Disclosure of subsidiaries [line items] | |||
Operating | 739 | 783 | 768 |
Investing | (36) | (80) | (32) |
Financing | (742) | (824) | $ (473) |
Global intermodal logistics operation | |||
Disclosure of subsidiaries [line items] | |||
Operating | 327 | 0 | |
Investing | (3,048) | 0 | |
Financing | $ 2,828 | $ 0 |
REVENUES - Revenues by Service
REVENUES - Revenues by Service Line (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Disclosure of operating segments [line items] | ||||
Revenues | [1] | $ 2,503 | $ 1,886 | $ 1,643 |
One Customer | ||||
Disclosure of operating segments [line items] | ||||
Revenues | 1,449 | |||
Gas Transmission | ||||
Disclosure of operating segments [line items] | ||||
Revenues | 1,483 | 1,314 | 1,074 | |
Distribution | ||||
Disclosure of operating segments [line items] | ||||
Revenues | 397 | 372 | 374 | |
Leasing | ||||
Disclosure of operating segments [line items] | ||||
Revenues | 385 | 0 | 0 | |
Connections | ||||
Disclosure of operating segments [line items] | ||||
Revenues | 200 | 171 | 167 | |
Other | ||||
Disclosure of operating segments [line items] | ||||
Revenues | $ 38 | $ 29 | $ 28 | |
[1] Earnings per share have not been presented in the financial statements, as the underlying shares do not constitute “ordinary shares” under IAS 33, Earnings per share. See Note 3(b), Material Accounting Policy Information, for further details. |
REVENUES - Geographic Informati
REVENUES - Geographic Information (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 USD ($) customer | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | ||
Disclosure of geographical areas [line items] | ||||
Revenues | [1] | $ 2,503 | $ 1,886 | $ 1,643 |
United Kingdom | ||||
Disclosure of geographical areas [line items] | ||||
Revenues | 635 | 572 | 569 | |
Brazil | ||||
Disclosure of geographical areas [line items] | ||||
Revenues | 1,483 | 1,314 | 1,074 | |
United States | ||||
Disclosure of geographical areas [line items] | ||||
Revenues | $ 385 | $ 0 | $ 0 | |
Customer Concentration Risk | ||||
Disclosure of geographical areas [line items] | ||||
Concentration risk, number of customers | customer | 1 | |||
[1] Earnings per share have not been presented in the financial statements, as the underlying shares do not constitute “ordinary shares” under IAS 33, Earnings per share. See Note 3(b), Material Accounting Policy Information, for further details. |
REVENUES - Non-Current Assets (
REVENUES - Non-Current Assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of geographical areas [line items] | ||
Non-Current Assets | $ 21,105 | $ 8,611 |
United Kingdom | ||
Disclosure of geographical areas [line items] | ||
Non-Current Assets | 5,624 | 4,821 |
Brazil | ||
Disclosure of geographical areas [line items] | ||
Non-Current Assets | 3,596 | 3,362 |
Switzerland | ||
Disclosure of geographical areas [line items] | ||
Non-Current Assets | 2,197 | 0 |
France | ||
Disclosure of geographical areas [line items] | ||
Non-Current Assets | 2,170 | 0 |
Singapore | ||
Disclosure of geographical areas [line items] | ||
Non-Current Assets | 1,800 | 0 |
China | ||
Disclosure of geographical areas [line items] | ||
Non-Current Assets | 1,573 | 0 |
Other Asia | ||
Disclosure of geographical areas [line items] | ||
Non-Current Assets | 1,270 | 0 |
Denmark | ||
Disclosure of geographical areas [line items] | ||
Non-Current Assets | 1,232 | 0 |
Other Europe | ||
Disclosure of geographical areas [line items] | ||
Non-Current Assets | 632 | 0 |
United States | ||
Disclosure of geographical areas [line items] | ||
Non-Current Assets | 375 | 0 |
Australia | ||
Disclosure of geographical areas [line items] | ||
Non-Current Assets | 5 | 428 |
Other | ||
Disclosure of geographical areas [line items] | ||
Non-Current Assets | $ 631 | $ 0 |
DIRECT OPERATING COSTS (Details
DIRECT OPERATING COSTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Direct Operating Costs [Abstract] | |||
Depreciation and amortization | $ 365 | $ 211 | $ 236 |
Transportation and distribution | 195 | 184 | 162 |
Operations and maintenance | 94 | 56 | 49 |
Compensation | 87 | 59 | 44 |
Cost of inventory | 2 | 5 | 8 |
Other | 35 | 27 | 27 |
Total | $ 778 | $ 542 | $ 526 |
EQUITY (Details)
EQUITY (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Partnership Units [Line Items] | |||
Beginning balance | $ (361) | $ (1,424) | |
Share issuance | 339 | ||
Ending balance | $ 4,068 | $ (361) | |
Class C Shares | |||
Schedule of Partnership Units [Line Items] | |||
Beginning balance (in shares) | 2,103,677,000,000 | 2,103,677,000,000 | |
Share issuance (in shares) | 9,000,000 | 9,013,983,000,000 | 0 |
Ending balance (in shares) | 11,117,660,000,000 | 2,103,677,000,000 | |
Share capital | |||
Schedule of Partnership Units [Line Items] | |||
Beginning balance | $ 53 | $ 53 | |
Share issuance | 339 | ||
Ending balance | 392 | 53 | |
Share capital | Class C Shares | |||
Schedule of Partnership Units [Line Items] | |||
Beginning balance | 53 | 53 | |
Share issuance | $ 339 | 339 | 0 |
Ending balance | $ 392 | $ 53 |
EQUITY - Narrative (Details)
EQUITY - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Partnership Units [Line Items] | |||
Share issuance | $ 339 | ||
Exchangeable shares outstanding (Shares) | |||
Schedule of Partnership Units [Line Items] | |||
Share issuance (in shares) | 21,094,441 | ||
Class B shares outstanding (Shares) | |||
Schedule of Partnership Units [Line Items] | |||
Share issuance (in shares) | 0 | ||
Share capital | |||
Schedule of Partnership Units [Line Items] | |||
Share issuance | $ 339 | ||
Share capital | Exchangeable shares outstanding (Shares) | |||
Schedule of Partnership Units [Line Items] | |||
Number of shares outstanding, special distribution (in shares) | 69,500,000 | ||
Share capital | Class B shares outstanding (Shares) | |||
Schedule of Partnership Units [Line Items] | |||
Number of shares outstanding, special distribution (in shares) | 2 | ||
Class C Shares | |||
Schedule of Partnership Units [Line Items] | |||
Share issuance (in shares) | 9,000,000 | 9,013,983,000,000 | 0 |
Class C Shares | Share capital | |||
Schedule of Partnership Units [Line Items] | |||
Number of shares outstanding, special distribution (in shares) | 2,100,000 | ||
Share issuance | $ 339 | $ 339 | $ 0 |
Number of share issued (in dollars per share) | $ 37.64 |
INCOME TAXES - Deferred Income
INCOME TAXES - Deferred Income Tax Balances (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax assets | $ 56 | $ 78 | |
Deferred income tax liabilities | (2,151) | (1,573) | |
Deferred tax assets | 40 | 43 | |
Deferred tax liabilities | (2,135) | (1,538) | |
Net deferred tax liabilities | (2,095) | (1,495) | $ (1,586) |
Financial instruments and other | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax assets | 18 | 41 | |
Tax losses carried forward | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred income tax assets | 38 | 37 | |
Deferred tax assets | 38 | 37 | |
Net deferred tax liabilities | $ 38 | $ 37 | $ 43 |
INCOME TAXES - Deferred Tax Bal
INCOME TAXES - Deferred Tax Balances and Movement (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||
Net deferred income tax liabilities, beginning balance | $ (1,495) | $ (1,586) | |
Net Income | (20) | 79 | |
Other Comprehensive Income | (34) | (14) | $ (121) |
Other | (102) | 26 | |
Acquisitions/Dispositions | (444) | 0 | |
Net deferred income tax liabilities, ending balance | (2,095) | (1,495) | (1,586) |
Deferred tax assets related to non-capital losses and capital losses | |||
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||
Net deferred income tax liabilities, beginning balance | 37 | 43 | |
Net Income | (2) | (1) | |
Other Comprehensive Income | 0 | 0 | |
Other | 2 | (5) | |
Acquisitions/Dispositions | 1 | 0 | |
Net deferred income tax liabilities, ending balance | 38 | 37 | 43 |
Deferred tax liabilities related to differences in tax and book basis, net | |||
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||
Net deferred income tax liabilities, beginning balance | (1,532) | (1,629) | |
Net Income | (18) | 80 | |
Other Comprehensive Income | (34) | (14) | |
Other | (104) | 31 | |
Acquisitions/Dispositions | (445) | 0 | |
Net deferred income tax liabilities, ending balance | $ (2,133) | $ (1,532) | $ (1,629) |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deductible temporary differences for which no deferred tax asset is recognised | $ 41 | $ 59 |
Deferred income tax asset | 40 | 43 |
Unused Tax Losses, Indefinitely Carried Forward | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred income tax asset | 2 | 2 |
Unused Tax Losses, Expiring in Five Years | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred income tax asset | $ 39 | $ 57 |
INCOME TAXES - Income Tax Recog
INCOME TAXES - Income Tax Recognized in Profit or Loss (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Income Taxes [Abstract] | ||||
Current income tax expense | [1] | $ 348 | $ 341 | $ 234 |
Origination and reversal of temporary differences | 22 | 16 | 59 | |
Change in tax rates or the imposition of new taxes | 4 | 0 | 96 | |
Deferred tax assets (recognized)/not recognized | (6) | (95) | 16 | |
Total income tax expense | 368 | 262 | 405 | |
Net income before income tax and non-controlling interests | 974 | 1,881 | 432 | |
Income tax expense calculated at the domestic rates applicable to profits in the country concerned | 328 | 576 | 179 | |
Change in tax rates and new legislation | 4 | 0 | 96 | |
International operations subject to different tax rates | 6 | (1) | (2) | |
Taxable income attributable to non-controlling interests | 0 | (2) | (4) | |
Portion of gains subject to different tax rates | 0 | 0 | (37) | |
Deferred tax assets (recognized)/not recognized | (6) | (95) | 16 | |
Foreign exchange | (6) | 12 | 2 | |
Non-deductible dividends on exchangeable shares | 47 | 42 | 30 | |
Non-deductible remeasurement adjustments on exchangeable and class B shares | (9) | (280) | 119 | |
Permanent differences and other | 4 | 10 | 6 | |
Income tax expense recognized in profit or loss | $ 368 | $ 262 | $ 405 | |
[1] Earnings per share have not been presented in the financial statements, as the underlying shares do not constitute “ordinary shares” under IAS 33, Earnings per share. See Note 3(b), Material Accounting Policy Information, for further details. |
INCOME TAXES - Income Tax Rec_2
INCOME TAXES - Income Tax Recognized Directly in Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Total income tax expense recognized directly in other comprehensive income | $ 34 | $ 14 | $ 121 |
Revaluation of property, plant and equipment | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Total income tax expense recognized directly in other comprehensive income | 36 | 25 | 121 |
Cash flow hedges | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Total income tax expense recognized directly in other comprehensive income | 6 | (19) | 0 |
Other | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Total income tax expense recognized directly in other comprehensive income | $ (8) | $ 8 | $ 0 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||||
Disclosure of analysis of other comprehensive income by item [line items] | |||||||
Beginning balance | $ (361) | $ (1,424) | $ (572) | ||||
Other comprehensive income (loss) | 216 | (108) | (86) | ||||
Other items | 0 | 87 | |||||
Ending balance | 4,068 | (361) | (1,424) | ||||
Accumulated other comprehensive income | |||||||
Disclosure of analysis of other comprehensive income by item [line items] | |||||||
Beginning balance | 306 | [1] | 392 | [1],[2] | 539 | [2] | |
Other comprehensive income (loss) | 167 | [3] | (86) | [1] | (5) | [2] | |
Other items | [2] | 142 | |||||
Ending balance | 473 | [3] | 306 | [1] | 392 | [1],[2] | |
Limited Partners | Accumulated other comprehensive income | |||||||
Disclosure of analysis of other comprehensive income by item [line items] | |||||||
Beginning balance | 306 | 392 | |||||
Other comprehensive income (loss) | 167 | (86) | |||||
Ending balance | 473 | 306 | 392 | ||||
Limited Partners | Revaluation Surplus | |||||||
Disclosure of analysis of other comprehensive income by item [line items] | |||||||
Beginning balance | 1,005 | 945 | |||||
Other comprehensive income (loss) | 85 | 60 | |||||
Ending balance | 1,090 | 1,005 | 945 | ||||
Limited Partners | Foreign Currency Translation | |||||||
Disclosure of analysis of other comprehensive income by item [line items] | |||||||
Beginning balance | (709) | (557) | |||||
Other comprehensive income (loss) | 109 | (152) | |||||
Ending balance | (600) | (709) | (557) | ||||
Limited Partners | Cash Flow Hedges | |||||||
Disclosure of analysis of other comprehensive income by item [line items] | |||||||
Beginning balance | (17) | 4 | |||||
Other comprehensive income (loss) | 0 | (21) | |||||
Ending balance | (17) | (17) | 4 | ||||
Limited Partners | Equity accounted investments | |||||||
Disclosure of analysis of other comprehensive income by item [line items] | |||||||
Beginning balance | 27 | 0 | |||||
Other comprehensive income (loss) | (27) | 27 | |||||
Ending balance | $ 0 | $ 27 | $ 0 | ||||
[1] Refer to Note 20, Accumulated Other Comprehensive Income (Loss) for an analysis of accumulated other comprehensive income (loss) by item. Refer to Note 20 Accumulated Other Comprehensive Income (Loss) for an analysis of accumulated other comprehensive income (loss) by item. Refer to Note 20, Accumulated Other Comprehensive Income (Loss) for an analysis of accumulated other comprehensive income (loss) by item. |
CONTRACTUAL COMMITMENTS (Detail
CONTRACTUAL COMMITMENTS (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of contingent liabilities [line items] | ||
Contractual commitments | $ 695 | $ 636 |
Asset management fee as percent per quarter | 0.3125% | |
Asset management fee, percent | 1.25% | |
Less than 1 year | ||
Disclosure of contingent liabilities [line items] | ||
Contractual capital commitments, maturity, percent | 36% | |
1 to 5 years | ||
Disclosure of contingent liabilities [line items] | ||
Contractual capital commitments, maturity, percent | 56% | |
Thereafter | ||
Disclosure of contingent liabilities [line items] | ||
Contractual capital commitments, maturity, percent | 8% |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) | 12 Months Ended | ||||||
Aug. 31, 2023 USD ($) | Sep. 23, 2022 USD ($) | Dec. 31, 2023 USD ($) agreement $ / shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Mar. 28, 2023 USD ($) | Mar. 31, 2020 USD ($) | |
Disclosure of transactions between related parties [line items] | |||||||
Asset management fee as percent per quarter | 0.3125% | ||||||
Asset management fee, percent | 1.25% | ||||||
Related party, equity commitment | $ 1,000,000,000 | ||||||
Preferred shares, subscription price (in dollars per share) | $ / shares | $ 25 | ||||||
Amount called on the equity commitment | $ 0 | $ 0 | |||||
Due from Brookfield Infrastructure | 1,288,000,000 | 566,000,000 | |||||
Loans payable to Brookfield Infrastructure | 26,000,000 | 26,000,000 | |||||
Interest expense, related party transactions | 1,000,000 | 1,000,000 | |||||
Amounts payable, related party transactions | 10,000,000 | 6,000,000 | |||||
Amounts receivable, related party transactions | 19,000,000 | 10,000,000 | |||||
Disposal of subsidiaries, net of cash disposed | 0 | 0 | $ 817,000,000 | ||||
AusNet Services Ltd | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Gain (loss) on disposition | $ 32,000,000 | ||||||
Reclassification adjustments on exchange differences on translation, net of tax | $ 28,000,000 | $ 28,000,000 | |||||
Australian Regulated Utility Operation | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Ownership and voting Interest | 7.90% | ||||||
Disposal of subsidiaries, net of cash disposed | $ 435,000,000 | ||||||
Revolving Credit Facility With Brookfield | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Number of borrowing agreements | agreement | 2 | ||||||
Borrowing, term | 10 years | ||||||
Credit facility, maximum borrowing capacity | $ 1,000,000,000 | ||||||
Senior Unsecured Revolving Credit Facility | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Credit facility, maximum borrowing capacity | $ 1,000,000,000 | ||||||
Subsidiary and corporate borrowings | $ 0 | 0 | |||||
Brookfield Infrastructure | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Weighted average interest rates | 0.20% | ||||||
Interest expense, related party transactions | $ 14,000,000 | ||||||
Service Provider | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Asset management fee as percent per quarter | 0.3125% | ||||||
Asset management fee, percent | 1.25% | ||||||
Services received, related party transactions | $ 63,000,000 | 63,000,000 | 45,000,000 | ||||
Subsidiary of Common Parent (Brookfield) | Brookfield Office Properties Inc. | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Services received, related party transactions | 0 | 0 | 0 | ||||
Revenue from rendering of services, related party transactions | 1,000,000 | 1,000,000 | $ 1,000,000 | ||||
Subsidiary of Common Parent (Brookfield) | Brookfield Infrastructure | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Subsidiary and corporate borrowings | $ 250,000,000 | ||||||
Due from Brookfield Infrastructure | 1,038,000,000 | 566,000,000 | |||||
Borrowings, adjustment to interest rate basis | 2% | ||||||
Brookfield Infrastructure Partners L.P | |||||||
Disclosure of transactions between related parties [line items] | |||||||
Amounts receivable, related party transactions | $ 20,000,000 | $ 0 | |||||
Sales of property and other assets, related party transactions | $ 66,000,000 | ||||||
Gain (loss) on disposition of business | $ 2,000,000 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - Notional Amount of Derivative Positions (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of detailed information about hedging instruments [line items] | ||
Notional amount | $ 2,946 | $ 993 |
Interest rate swaps and other | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional amount | $ 2,946 | $ 993 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - Change in Fair Values of Derivative Instruments (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of detailed information about hedging instruments [line items] | ||
Unrealized Gains During 2023 | $ 24 | |
Unrealized Losses During 2023 | (36) | |
Net change | (12) | $ (58) |
Interest rate swaps and other | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Unrealized Gains During 2023 | 24 | |
Unrealized Losses During 2023 | (36) | |
Net change | $ (12) | $ (58) |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of detailed information about hedging instruments [line items] | ||
Notional amount | $ 2,946 | $ 993 |
Interest rate swaps, cross currency interest rate swaps and other | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional amount | $ 2,946 | $ 993 |
DERIVATIVE FINANCIAL INSTRUME_6
DERIVATIVE FINANCIAL INSTRUMENTS - Notional Amount of Derivative Instruments Fair Value Through Profit or Loss (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of detailed information about hedging instruments [line items] | ||
Notional | $ 2,946 | $ 993 |
Elected for hedge accounting | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional | 2,946 | 993 |
Less than 1 year | Elected for hedge accounting | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional | 300 | |
1 to 5 years | Elected for hedge accounting | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional | 1,646 | |
Thereafter | Elected for hedge accounting | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional | 1,000 | |
Interest rate swaps and other | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional | 2,946 | 993 |
Interest rate swaps and other | Elected for hedge accounting | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional | 2,946 | $ 993 |
Interest rate swaps and other | Less than 1 year | Elected for hedge accounting | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional | 300 | |
Interest rate swaps and other | 1 to 5 years | Elected for hedge accounting | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional | 1,646 | |
Interest rate swaps and other | Thereafter | Elected for hedge accounting | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional | $ 1,000 |
DERIVATIVE FINANCIAL INSTRUME_7
DERIVATIVE FINANCIAL INSTRUMENTS - Hedge Classification (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of detailed information about hedging instruments [line items] | ||
Notional | $ 2,946 | $ 993 |
Cash flow hedges | Elected for hedge accounting | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional | 2,946 | 993 |
Effective Portion | (24) | (58) |
Ineffective Portion | $ 0 | $ 0 |
FINANCIAL RISK MANAGEMENT - Cap
FINANCIAL RISK MANAGEMENT - Capital Structure (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Financial Instruments [Abstract] | ||||
Non-recourse borrowings | $ 12,028 | $ 4,577 | ||
Cash and cash equivalents | (539) | (445) | ||
Net debt | 11,489 | 4,132 | ||
Exchangeable and class B shares | 4,153 | 3,426 | ||
Loans payable to Brookfield Infrastructure | 26 | 26 | ||
Total equity | 4,068 | (361) | $ (1,424) | $ (572) |
Total capital and net debt | $ 19,736 | $ 7,223 | ||
Net debt to capitalization ratio | 58% | 57% |
FINANCIAL RISK MANAGEMENT - Mat
FINANCIAL RISK MANAGEMENT - Maturity Analysis of Financial Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Accounts payable and other liabilities | $ 837 | $ 589 |
Non-recourse borrowings | 12,804 | 4,595 |
Financial liabilities | 75 | 72 |
Exchangeable and class B shares | 4,153 | 3,426 |
Loans payable to Brookfield Infrastructure | 26 | 26 |
Interest Expense: | ||
Non-recourse borrowings | 3,452 | 712 |
Less than 1 year | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Accounts payable and other liabilities | 821 | 586 |
Non-recourse borrowings | 1,203 | 330 |
Financial liabilities | 60 | 72 |
Exchangeable and class B shares | 4,153 | 3,426 |
Loans payable to Brookfield Infrastructure | 26 | 26 |
Interest Expense: | ||
Non-recourse borrowings | 662 | 133 |
1-2 years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Accounts payable and other liabilities | 5 | 2 |
Non-recourse borrowings | 917 | 178 |
Financial liabilities | 1 | 0 |
Exchangeable and class B shares | 0 | 0 |
Loans payable to Brookfield Infrastructure | 0 | 0 |
Interest Expense: | ||
Non-recourse borrowings | 588 | 67 |
2-5 years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Accounts payable and other liabilities | 4 | 1 |
Non-recourse borrowings | 5,338 | 1,231 |
Financial liabilities | 13 | 0 |
Exchangeable and class B shares | 0 | 0 |
Loans payable to Brookfield Infrastructure | 0 | 0 |
Interest Expense: | ||
Non-recourse borrowings | 1,214 | 179 |
5+ years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Accounts payable and other liabilities | 7 | 0 |
Non-recourse borrowings | 5,346 | 2,856 |
Financial liabilities | 1 | 0 |
Exchangeable and class B shares | 0 | 0 |
Loans payable to Brookfield Infrastructure | 0 | 0 |
Interest Expense: | ||
Non-recourse borrowings | $ 988 | $ 333 |
FINANCIAL RISK MANAGEMENT - Sen
FINANCIAL RISK MANAGEMENT - Sensitivity Analysis for Interest Rate Risk (Details) - Interest rate risk $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Impact of 10 bp decrease on net income (loss) to the partnership | $ 4 |
Impact of 10 bp increase on net income (loss) to the partnership | (4) |
Impact of 10 bp decrease on other comprehensive (loss) income to the partnership | 0 |
Impact of 10 bp increase on other comprehensive (loss) income to the partnership | $ 0 |
FINANCIAL RISK MANAGEMENT - Cur
FINANCIAL RISK MANAGEMENT - Currency Exposure (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Assets: | ||||
Current Assets | $ 2,804 | $ 1,567 | ||
Non-current assets | 21,105 | 8,611 | ||
Total assets | 23,909 | 10,178 | ||
Liabilities: | ||||
Current Liabilities | 6,359 | 4,633 | ||
Total liabilities | 19,841 | 10,539 | ||
Non-controlling interests | 4,467 | 758 | ||
Net investment attributable to Brookfield Infrastructure | [1] | (399) | (1,119) | |
Total | ||||
Assets: | ||||
Current Assets | 1,494 | 1,001 | $ 917 | |
Non-current assets | 21,105 | 8,611 | 8,076 | |
Total assets | 22,599 | 9,612 | 8,993 | |
Liabilities: | ||||
Current Liabilities | 1,920 | 1,176 | 1,594 | |
Non-current liabilities | 13,482 | 5,898 | 5,313 | |
Total liabilities | 15,402 | 7,074 | 6,907 | |
Non-controlling interests | 4,467 | 758 | 703 | |
Net investment attributable to Brookfield Infrastructure | 2,730 | 1,780 | 1,383 | |
USD | ||||
Assets: | ||||
Current Assets | 419 | |||
Non-current assets | 11,947 | |||
Total assets | 12,366 | |||
Liabilities: | ||||
Current Liabilities | 982 | |||
Non-current liabilities | 6,639 | |||
Total liabilities | 7,621 | |||
Non-controlling interests | 3,586 | |||
Net investment attributable to Brookfield Infrastructure | 1,159 | |||
GBP | ||||
Assets: | ||||
Current Assets | 318 | 264 | 249 | |
Non-current assets | 5,580 | 4,821 | 4,961 | |
Total assets | 5,898 | 5,085 | 5,210 | |
Liabilities: | ||||
Current Liabilities | 387 | 690 | 316 | |
Non-current liabilities | 3,744 | 2,864 | 3,285 | |
Total liabilities | 4,131 | 3,554 | 3,601 | |
Non-controlling interests | 348 | 298 | 314 | |
Net investment attributable to Brookfield Infrastructure | 1,419 | 1,233 | 1,295 | |
BRL | ||||
Assets: | ||||
Current Assets | 747 | 737 | 668 | |
Non-current assets | 3,576 | 3,362 | 3,115 | |
Total assets | 4,323 | 4,099 | 3,783 | |
Liabilities: | ||||
Current Liabilities | 549 | 486 | 1,278 | |
Non-current liabilities | 3,099 | 3,034 | 2,028 | |
Total liabilities | 3,648 | 3,520 | 3,306 | |
Non-controlling interests | 526 | 460 | 389 | |
Net investment attributable to Brookfield Infrastructure | 149 | 119 | 88 | |
AUD | ||||
Assets: | ||||
Current Assets | 0 | 0 | ||
Non-current assets | 428 | 0 | ||
Total assets | 428 | 0 | ||
Liabilities: | ||||
Current Liabilities | 0 | 0 | ||
Non-current liabilities | 0 | 0 | ||
Total liabilities | 0 | 0 | ||
Non-controlling interests | 0 | 0 | ||
Net investment attributable to Brookfield Infrastructure | $ 428 | $ 0 | ||
EUR & Others | ||||
Assets: | ||||
Current Assets | 10 | |||
Non-current assets | 2 | |||
Total assets | 12 | |||
Liabilities: | ||||
Current Liabilities | 2 | |||
Non-current liabilities | 0 | |||
Total liabilities | 2 | |||
Non-controlling interests | 7 | |||
Net investment attributable to Brookfield Infrastructure | $ 3 | |||
[1] Common equity is attributable to the partnership prior to the special distribution and subsequently as a result of the partnership holding all of the class C shares issued by our company. Please refer to Note 3(b), Material Accounting Policy Information, for further details. |
FINANCIAL RISK MANAGEMENT - S_2
FINANCIAL RISK MANAGEMENT - Sensitivity Analysis For Foreign Currency Risk (Details) - Foreign currency risk - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
GBP | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Impact of 10% decrease on net income (loss) | $ (8) | $ (8) | $ (6) |
Impact of 10% increase on net income (loss) | 8 | 8 | 6 |
Impact of 10% decrease on parent equity | (142) | (123) | (130) |
Impact of 10% increase on parent equity | 142 | 123 | 130 |
BRL | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Impact of 10% decrease on net income (loss) | (20) | (23) | (15) |
Impact of 10% increase on net income (loss) | 20 | 23 | 15 |
Impact of 10% decrease on parent equity | (15) | (12) | (9) |
Impact of 10% increase on parent equity | 15 | 12 | 9 |
EUR & Others | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Impact of 10% decrease on parent equity | (1) | 0 | 0 |
Impact of 10% increase on parent equity | 1 | 0 | 0 |
AUD | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Impact of 10% decrease on net income (loss) | 2 | (1) | 0 |
Impact of 10% increase on net income (loss) | (2) | 1 | 0 |
Impact of 10% decrease on parent equity | 0 | (43) | 0 |
Impact of 10% increase on parent equity | $ 0 | $ 43 | $ 0 |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash Flow Statement [Abstract] | |||
Interest paid | $ 678 | $ 554 | $ 261 |
Income taxes paid | 318 | 292 | 165 |
Changes In Non-cash Working Capital [Abstract] | |||
Accounts receivable | (85) | (61) | (91) |
Accounts payable and other | 91 | 234 | 126 |
Changes in non-cash working capital, net | $ 6 | $ 173 | $ 35 |