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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)
 12 Months Ended
Dec. 31, 2017
Fair Value Measurement [Abstract]  
Disclosure of financial assets
The following table provides the break down of financial instruments and their associated financial instrument classifications as at December 31, 2017:
US$ MILLIONS
 
FVTPL
 
Available for
sale securities
 
Loans and
Receivables/
Other Liabilities
 
 
Financial Instrument Classification
 
(Fair Value)
 
(Fair Value
through OCI)
 
(Amortized Cost)
 
Total
MEASUREMENT BASIS
 
 
 
 
 
 
 
 
Financial assets
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
—

 
$
—

 
$
374

 
$
374

Accounts receivable and other
 
—

 
—

 
838

 
838

Financial assets (current and non-current)(1)
 
608

 
57

 
172

 
837

Marketable securities
 
—

 
85

 
—

 
85

Total
 
$
608

 
$
142

 
$
1,384

 
$
2,134

 
 
 
 
 
 
 
 
 
Financial liabilities
 
 
 
 
 
 
 
 
Corporate borrowings
 
$
—

 
$
—

 
$
2,101

 
$
2,101

Non-recourse borrowings (current and non-current)
 
—

 
—

 
8,063

 
8,063

Accounts payable and other
 
—

 
—

 
864

 
864

Preferred shares(2)
 
—

 
—

 
20

 
20

Financial liabilities (current and non-current)(1)
 
440

 
—

 
873

 
1,313

Total
 
$
440

 
$
—

 
$
11,921

 
$
12,361

 
(1)
Derivative instruments which are elected for hedge accounting totaling $464 million are included in Financial assets and $146 million of derivative instruments are included in Financial liabilities.
(2)
$20 million of preferred shares issued to wholly-owned subsidiaries of Brookfield.
The following table provides the break down of financial instruments and their associated financial instrument classifications as at December 31, 2016:
US$ MILLIONS
 
FVTPL
 
Available for
sale securities
 
Loans and
Receivables/
Other Liabilities
 
 
Financial Instrument Classification
 
(Fair Value)
 
(Fair Value
through OCI)
 
(Amortized Cost)
 
Total
MEASUREMENT BASIS
 
 
 
 
 
 
 
 
Financial assets
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
—

 
$
—

 
$
786

 
$
786

Accounts receivable and other
 
—

 
—

 
485

 
485

Financial assets (current and non-current)(1)
 
893

 
12

 
233

 
1,138

Marketable securities
 
—

 
3

 
—

 
3

Total
 
$
893

 
$
15

 
$
1,504

 
$
2,412

 
 
 
 
 
 
 
 
 
Financial liabilities
 
 
 
 
 
 
 
 
Corporate borrowings
 
$
—

 
$
—

 
$
1,002

 
$
1,002

Non-recourse borrowings (current and non-current)
 
—

 
—

 
7,324

 
7,324

Accounts payable and other
 
—

 
—

 
712

 
712

Preferred shares(2)
 
—

 
—

 
20

 
20

Financial liabilities (current and non-current)(1)
 
381

 
—

 
—

 
381

Total
 
$
381

 
$
—

 
$
9,058

 
$
9,439

 
(1)
Derivative instruments which are elected for hedge accounting totaling $722 million are included in Financial assets and $185 million of derivative instruments are included in Financial liabilities.
(2)
$20 million of preferred shares issued to wholly-owned subsidiaries of Brookfield.
US$ MILLIONS
 
2017
 
2016
Current:
 
 
 
 
Foreign currency forward contracts
 
$
10

 
$
132

Loans and receivables
 
43

 
73

Marketable securities
 
85

 
3

Other
 
54

 
33

Total current
 
$
192

 
$
241

 
 
 
 
 
Non-current:
 
 
 
 
Cross currency interest rate swaps
 
$
243

 
$
589

Loans and receivables
 
210

 
172

Foreign currency forward contracts
 
226

 
78

Other
 
51

 
61

Total non-current
 
$
730

 
$
900
Disclosure of financial liabilities
The following table provides the break down of financial instruments and their associated financial instrument classifications as at December 31, 2017:
US$ MILLIONS
 
FVTPL
 
Available for
sale securities
 
Loans and
Receivables/
Other Liabilities
 
 
Financial Instrument Classification
 
(Fair Value)
 
(Fair Value
through OCI)
 
(Amortized Cost)
 
Total
MEASUREMENT BASIS
 
 
 
 
 
 
 
 
Financial assets
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
—

 
$
—

 
$
374

 
$
374

Accounts receivable and other
 
—

 
—

 
838

 
838

Financial assets (current and non-current)(1)
 
608

 
57

 
172

 
837

Marketable securities
 
—

 
85

 
—

 
85

Total
 
$
608

 
$
142

 
$
1,384

 
$
2,134

 
 
 
 
 
 
 
 
 
Financial liabilities
 
 
 
 
 
 
 
 
Corporate borrowings
 
$
—

 
$
—

 
$
2,101

 
$
2,101

Non-recourse borrowings (current and non-current)
 
—

 
—

 
8,063

 
8,063

Accounts payable and other
 
—

 
—

 
864

 
864

Preferred shares(2)
 
—

 
—

 
20

 
20

Financial liabilities (current and non-current)(1)
 
440

 
—

 
873

 
1,313

Total
 
$
440

 
$
—

 
$
11,921

 
$
12,361

 
(1)
Derivative instruments which are elected for hedge accounting totaling $464 million are included in Financial assets and $146 million of derivative instruments are included in Financial liabilities.
(2)
$20 million of preferred shares issued to wholly-owned subsidiaries of Brookfield.
The following table provides the break down of financial instruments and their associated financial instrument classifications as at December 31, 2016:
US$ MILLIONS
 
FVTPL
 
Available for
sale securities
 
Loans and
Receivables/
Other Liabilities
 
 
Financial Instrument Classification
 
(Fair Value)
 
(Fair Value
through OCI)
 
(Amortized Cost)
 
Total
MEASUREMENT BASIS
 
 
 
 
 
 
 
 
Financial assets
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
—

 
$
—

 
$
786

 
$
786

Accounts receivable and other
 
—

 
—

 
485

 
485

Financial assets (current and non-current)(1)
 
893

 
12

 
233

 
1,138

Marketable securities
 
—

 
3

 
—

 
3

Total
 
$
893

 
$
15

 
$
1,504

 
$
2,412

 
 
 
 
 
 
 
 
 
Financial liabilities
 
 
 
 
 
 
 
 
Corporate borrowings
 
$
—

 
$
—

 
$
1,002

 
$
1,002

Non-recourse borrowings (current and non-current)
 
—

 
—

 
7,324

 
7,324

Accounts payable and other
 
—

 
—

 
712

 
712

Preferred shares(2)
 
—

 
—

 
20

 
20

Financial liabilities (current and non-current)(1)
 
381

 
—

 
—

 
381

Total
 
$
381

 
$
—

 
$
9,058

 
$
9,439

 
(1)
Derivative instruments which are elected for hedge accounting totaling $722 million are included in Financial assets and $185 million of derivative instruments are included in Financial liabilities.
(2)
$20 million of preferred shares issued to wholly-owned subsidiaries of Brookfield.
US$ MILLIONS
 
2017
 
2016
Current:
 
 
 
 
Foreign currency forward contracts
 
$
150

 
$
47

Other financial liabilities
 
87

 
182

Total current financial liabilities
 
$
237

 
$
229

 
 
 
 
 
Non-current:
 
 
 
 
Interest rate swaps
 
$
9

 
$
34

Inflation swaps
 
84

 
97

Deferred consideration(1)
 
916

 
—

Other financial liabilities
 
67

 
21

Total non-current financial liabilities
 
$
1,076

 
$
152


 
(1)
The deferred consideration is related to the acquisitions completed during 2017. See Note 5, Acquisition of Businesses for further details.
Carrying and fair values of financial assets
The following table provides the carrying values and fair values of financial instruments as at December 31, 2017 and December 31, 2016:
 
 
Dec. 31, 2017
 
Dec. 31, 2016
US$ MILLIONS
 
Carrying Value
 
Fair Value
 
Carrying Value
 
Fair Value
Financial assets
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
374

 
$
374

 
$
786

 
$
786

Accounts receivable and other
 
838

 
838

 
485

 
485

Financial assets (current and non-current)
 
837

 
837

 
1,138

 
1,138

Marketable securities
 
85

 
85

 
3

 
3

Total
 
$
2,134

 
$
2,134

 
$
2,412

 
$
2,412

During the year, no transfers were made between level 1 and 2 or level 2 and 3. The following table categorizes financial assets and liabilities, which are carried at fair value, based upon the level of input.
 
 
Dec. 31, 2017
 
Dec. 31, 2016
US$ MILLIONS
 
Level 1
 
Level 2
 
Level 3
 
Level 1
 
Level 2
 
Level 3
Financial assets
 
 
 
 
 
 
 
 
 
 
 
 
Marketable securities
 
$
85

 
$
—

 
$
—

 
$
3

 
$
—

 
$
—

Financial assets (current and non-current)
 
—

 
617

 
48

 
—

 
863

 
42

 
 
 
 
 
 
 
 
 
 
 
 
 
Financial liabilities
 
 
 
 
 
 
 
 
 
 
 
 
Financial liabilities (current and non-current)
 
$
—

 
$
351

 
$
89

 
$
—

 
$
335

 
$
46

The fair value of our partnership’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 Brookfield Infrastructure’s financial assets and financial liabilities:
US$ MILLIONS
 
Fair value hierarchy
 
Dec. 31, 2017
 
Dec. 31, 2016
Marketable securities
 
Level 1(1)
 
$
85

 
$
3

Foreign currency forward contracts
 
Level 2(2)
 
 
 
 
Financial asset
 
 
 
$
236

 
$
210

Financial liability
 
 
 
196

 
48

Interest rate swaps & other
 
Level 2(2)
 
 
 
 
Financial asset
 
 
 
$
381

 
$
653

Financial liability
 
 
 
155

 
287

Other contracts
 
 
 
 
 
 
Financial asset
 
Level 3(3)
 
$
48

 
$
42

Financial liability
 
Level 3(3)
 
89

 
46

 
(1)
Valuation technique: Quoted bid prices in an active market.
(2)
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.
(3)
Valuation technique: Discounted cash flow. Future cash flows primarily driven by freight volumes and the use of assumptions concerning the amount and timing of estimated future cash flows and discount rates.
Carrying and fair values of financial liabilities
During the year, no transfers were made between level 1 and 2 or level 2 and 3. The following table categorizes financial assets and liabilities, which are carried at fair value, based upon the level of input.
 
 
Dec. 31, 2017
 
Dec. 31, 2016
US$ MILLIONS
 
Level 1
 
Level 2
 
Level 3
 
Level 1
 
Level 2
 
Level 3
Financial assets
 
 
 
 
 
 
 
 
 
 
 
 
Marketable securities
 
$
85

 
$
—

 
$
—

 
$
3

 
$
—

 
$
—

Financial assets (current and non-current)
 
—

 
617

 
48

 
—

 
863

 
42

 
 
 
 
 
 
 
 
 
 
 
 
 
Financial liabilities
 
 
 
 
 
 
 
 
 
 
 
 
Financial liabilities (current and non-current)
 
$
—

 
$
351

 
$
89

 
$
—

 
$
335

 
$
46

 
 
Dec. 31, 2017
 
Dec. 31, 2016
US$ MILLIONS
 
Carrying Value
 
Fair Value
 
Carrying Value
 
Fair Value
Financial liabilities
 
 
 
 
 
 
 
 
Corporate borrowings(1)
 
$
2,101

 
$
2,113

 
$
1,002

 
$
1,023

Non-recourse borrowings(2)
 
8,063

 
8,392

 
7,324

 
7,478

Accounts payable and other (current and non-current)
 
864

 
864

 
712

 
712

Preferred shares(3)
 
20

 
20

 
20

 
20

Financial liabilities (current and non-current)
 
1,313

 
1,313

 
381

 
381

 
 
$
12,361

 
$
12,702

 
$
9,439

 
$
9,614

 
(1)
Corporate borrowings is classified under level 1 of the fair value hierarchy; quoted prices in an active market are available.
(2)
Non-recourse borrowings are classified under level 2 of the fair value hierarchy with the exception of certain borrowings at the U.K. port operation, Chilean toll road and Peruvian toll road 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.
(3)
$20 million of preferred shares issued to wholly-owned subsidiaries of Brookfield.
The fair value of our partnership’s financial assets and financial liabilities are measured at fair value on a recurring basis. The following table summarizes the valuation techniques and significant inputs for Brookfield Infrastructure’s financial assets and financial liabilities:
US$ MILLIONS
 
Fair value hierarchy
 
Dec. 31, 2017
 
Dec. 31, 2016
Marketable securities
 
Level 1(1)
 
$
85

 
$
3

Foreign currency forward contracts
 
Level 2(2)
 
 
 
 
Financial asset
 
 
 
$
236

 
$
210

Financial liability
 
 
 
196

 
48

Interest rate swaps & other
 
Level 2(2)
 
 
 
 
Financial asset
 
 
 
$
381

 
$
653

Financial liability
 
 
 
155

 
287

Other contracts
 
 
 
 
 
 
Financial asset
 
Level 3(3)
 
$
48

 
$
42

Financial liability
 
Level 3(3)
 
89

 
46

 
(1)
Valuation technique: Quoted bid prices in an active market.
(2)
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.
(3)
Valuation technique: Discounted cash flow. Future cash flows primarily driven by freight volumes and the use of assumptions concerning the amount and timing of estimated future cash flows and discount rates.