PROPERTY, PLANT AND EQUIPMENT (Tables)

12 Months Ended

Dec. 31, 2017

Property, plant and equipment [abstract]

Disclosure of detailed information about property, plant and equipment

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 70 years
Transmission stations, towers and related fixtures		Up to 40 years
Leasehold improvements		Up to 50 years
Plant and equipment		Up to 40 years
Network systems		Up to 60 years
Track		Up to 40 years
District energy systems		Up to 50 years
Gas storage assets		Up to 50 years

The following table summarizes the carrying amount of property, plant and equipment that would have been recognized had assets been carried under the cost model.



US$ MILLIONS	Dec. 31, 2017		Dec. 31, 2016
Utilities	$	2,961	$	2,512
Transport	1,970		1,845
Energy	2,246		2,122

The following table summarizes the valuation techniques and significant inputs for Brookfield Infrastructure’s property, plant and equipment assets, categorized by segment.

Dec. 31, 2017

Dec. 31, 2016

Segment

Valuation

Technique

Discount

Rate

Terminal

Value

Multiple

Investment

Horizon

Valuation

Technique

Discount

Rate

Terminal

Value

Multiple

Investment

Horizon

Utilities

Discounted cash flow model

7% to 12%

7x to 21x

10 to 20 yrs

Discounted cash flow model

7% to 12%

7x to 18x

10 to 20 yrs

Transport

Discounted cash flow model

10% to 15%

9x to 14x

10 to 20 yrs

Discounted cash flow model

10% to 17%

8x to 14x

10 to 20 yrs

Energy

Discounted cash flow model

12% to 15%

8x to 13x

10 yrs

Discounted cash flow model

9% to 14%

10x to 12x

10 yrs



US$ MILLIONS	Utility Assets			Transport Assets			Energy Assets			Total Assets
Gross Carrying Amount:
Balance at January 1, 2016	$	2,945		$	2,150		$	1,457		$	6,552
Additions, net of disposals	399			76			89			564
Non-cash (disposals) additions	(31		)	3			—			(28		)
Acquisitions through business combinations⁽¹⁾	—			242			825			1,067
Net foreign currency exchange differences	(418		)	(109		)	9			(518		)
Balance at December 31, 2016	$	2,895		$	2,362		$	2,380		$	7,637
Additions, net of disposals	349			104			95			548
Non-cash disposals	—			—			(14		)	(14		)
Acquisitions through business combinations⁽¹⁾	—			—			100			100
Net foreign currency exchange differences	227			191			68			486
Balance at December 31, 2017	$	3,471		$	2,657		$	2,629		$	8,757

Accumulated depreciation:
Balance at January 1, 2016	$	(291	)	$	(418	)	$	(159	)	$	(868	)
Depreciation expense	(128		)	(127		)	(99		)	(354		)
Non-cash disposals	—			4			—			4
Net foreign currency exchange differences	36			24			—			60
Balance at December 31, 2016	$	(383	)	$	(517	)	$	(258	)	$	(1,158	)
Depreciation expense	(118		)	(147		)	(117		)	(382		)
Disposals	19			21			—			40
Non-cash disposals	—			—			5			5
Net foreign currency exchange differences	(28		)	(44		)	(13		)	(85		)
Balance at December 31, 2017	$	(510	)	$	(687	)	$	(383	)	$	(1,580	)

Accumulated fair value adjustments:
Balance at January 1, 2016	$	945		$	777		$	226		$	1,948
Fair value adjustments	185			25			125			335
Net foreign currency exchange differences	(87		)	(20		)	1			(106		)
Balance at December 31, 2016	$	1,043		$	782		$	352		$	2,177
Fair value adjustments	137			24			257			418
Net foreign currency exchange differences	78			67			20			165
Balance at December 31, 2017	$	1,258		$	873		$	629		$	2,760

Net book value:
December 31, 2017	$	4,219		$	2,843		$	2,875		$	9,937
December 31, 2016	$	3,555		$	2,627		$	2,474		$	8,656


(1)	See Note 5, Acquisition of Business for additional information.