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DERIVATIVE FINANCIAL INSTRUMENTS (Tables)
 12 Months Ended
Dec. 31, 2017
Financial Instruments [Abstract]  
Notional amount of derivative positions
Brookfield Infrastructure held the following foreign exchange contracts with notional amounts at December 31, 2017 and 2016.
 
 
Notional Amount
(U.S. Dollars)
 
Average
Exchange Rate
US$ MILLIONS
 
2017
 
2016
 
2017
 
2016
Foreign exchange contracts
 
 
 
 
 
 
 
 
Australian dollars
 
$
1,214

 
$
2,133

 
0.74

 
0.73

British pounds
 
2,069

 
1,810

 
1.30

 
1.30

European Union euros
 
491

 
374

 
1.17

 
1.14

Brazilian reais
 
—

 
144

 
—

 
3.37

Canadian dollars
 
42

 
27

 
0.77

 
0.76

 
 
$
3,816

 
$
4,488

 


 


The aggregate notional amount of Brookfield Infrastructure’s derivative positions at December 31, 2017 and 2016 were as follows:
US$ MILLIONS
 
Note
 
2017
 
2016
Foreign exchange contracts
 
(a)
 
$
3,816

 
$
4,488

Interest rates swaps and other
 
(b)
 
5,013

 
4,416

 
 
 
 
$
8,829

 
$
8,904
Disclosure of change in fair values of derivative positions
The following table presents the change in fair values of Brookfield Infrastructure’s derivative positions during the years ended December 31, 2017 and 2016:
US$ MILLIONS
 
Unrealized Gains
on Derivative
Financial Assets
 
Unrealized Losses
on Derivative
Financial Liabilities
 
Net Change During 2017
 
Net Change During 2016
Foreign exchange derivatives
 
$
—

 
$
(305
)
 
$
(305
)
 
$
97

Interest rate derivative
 
132

 
(69
)
 
63

 
15

 
 
$
132

 
$
(374
)
 
$
(242
)
 
$
112
Disclosure of information about terms and conditions of hedging instruments
The following table presents the notional amounts underlying Brookfield Infrastructure’s derivative instruments by term to maturity as at December 31, 2017 and the comparative notional amounts at December 31, 2016, for both derivatives that are classified as fair value through profit or loss and derivatives that qualify for hedge accounting:
 
 
2017
 
2016
US$ MILLIONS
 
< 1 year
 
1 to 5 years
 
> 5 years
 
Total Notional
Amount
 
Total Notional
Amount
Fair value through profit or loss
 
 
 
 
 
 
 
 
 
 
Foreign exchange derivatives
 
$
640

 
$
807

 
$
—

 
$
1,447

 
$
1,351

Interest rate derivatives
 
 
 
 
 
 
 
 
 
 
Interest rate and cross currency interest rate swaps
 
273

 
484

 
59

 
816

 
752

Inflation linked swaps
 
—

 
—

 
170

 
170

 
155

 
 
$
913

 
$
1,291

 
$
229

 
$
2,433

 
$
2,258

Elected for hedge accounting
 
 
 
 
 
 
 
 
 
 
Foreign exchange derivatives
 
$
1,788

 
$
581

 
$
—

 
$
2,369

 
$
3,136

Interest rate derivatives
 
 
 
 
 
 
 
 
 
 
Interest rate and cross currency interest rate swaps
 
99

 
2,051

 
1,877

 
4,027

 
3,509

 
 
$
1,887

 
$
2,632

 
$
1,877

 
$
6,396

 
$
6,645
Disclosure of derivatives elected for hedge accounting
The following table classifies derivatives elected for hedge accounting during the years ended December 31, 2017 and 2016 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:
 
 
2017
 
2016
AS AT AND FOR THE YEARS ENDED (MILLIONS)
 
Notional
 
Effective
Portion
 
Ineffective
Portion
 
Notional
 
Effective
Portion
 
Ineffective
Portion
Cash flow hedges
 
$
4,027

 
$
15

 
$
—

 
$
3,509

 
$
30

 
$
1

Net investment hedges
 
2,369

 
(197
)
 
—

 
3,136

 
53

 
—

 
 
$
6,396

 
$
(182
)
 
$
—

 
$
6,645

 
$
83

 
$
1