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CAPITAL MANAGEMENT
 12 Months Ended
Dec. 31, 2017
Disclosure of Capital Management [Abstract]  
Disclosure of objectives, policies and processes for managing capital [text block]
CAPITAL MANAGEMENT
Our partnership’s approach to capital management is focused on maximizing returns to unitholders and ensuring capital is deployed in a manner consistent with achieving our investment return objectives.
Invested Capital, which tracks the amount of capital that has been contributed to our partnership, is a measure we utilize to assess returns on capital deployed, relative to targeted returns. Investment decisions are based on, amongst other measures and factors, targeted returns on Invested Capital of 12% to 15% annually over the long-term. We measure return on Invested Capital as adjusted funds from operations (“AFFO”), less estimated1 returns of capital on operations that are not perpetual in life, divided by the weighted average Invested Capital for the period.
We define Invested Capital as partnership capital removing the impact of the following items: non-controlling interest - in operating subsidiaries, retained earnings or deficit, accumulated other comprehensive income and ownership changes.
1.
Estimated based on the discounted cash flow models which we utilize in order to value and measure the performance of our operations.
US$ MILLIONS
2017
 
2016
Partnership Capital
$
13,474

 
$
9,644

Remove impact of the following items since inception:
 
 
 
Non-controlling interest - in operating subsidiaries
(5,875
)
 
(2,771
)
Deficit
1,366

 
697

Accumulated other comprehensive income
(1,257
)
 
(1,074
)
Ownership changes
(109
)
 
(109
)
Invested Capital
$
7,599

 
$
6,387

The following table presents the change in Invested Capital during year ended December 31, 2017:
US$ MILLIONS
2017
 
2016
Opening balance
$
6,387

 
$
5,452

Issuance of preferred units
220

 
186

Issuance of limited partnership units and redeemable partnership units
992

 
749

Ending balance
$
7,599

 
$
6,387

Weighted Average Invested Capital
$
6,885

 
$
5,592