FINANCIAL RISK MANAGEMENT (Tables)

12 Months Ended

Dec. 31, 2017

The capital structure of Brookfield Infrastructure consists of debt, offset by cash and cash equivalents, and partnership capital comprised of issued capital and accumulated gains.



US$ MILLIONS	2017			2016
Subsidiary and corporate borrowings	$	10,164		$	8,326
Preferred shares	20			20
Cash and cash equivalents⁽¹⁾	(459		)	(789		)
Net debt	9,725			7,557
Total partnership capital	13,474			9,644
Total capital and net debt	$	23,199		$	17,201
Net debt to capitalization ratio	42		%	44		%


(1)	Includes marketable securities.

Disclosure of liquidity management

Brookfield Infrastructure’s corporate liquidity as at December 31 was as follows:



US$ MILLIONS⁽¹⁾	2017			2016
Corporate cash and financial assets	$	205		$	549
Availability under committed credit facilities	2,475			2,475
Draws on credit facility	(789		)	—
Commitments under credit facility	(106		)	(46		)
Corporate liquidity	$	1,785		$	2,978


(1)	Corporate level only.

Disclosure of maturity analysis for financial liabilities

The following tables detail the contractual maturities for Brookfield Infrastructure’s financial liabilities. The tables reflect the undiscounted cash flows of financial liabilities based on the earliest date on which Brookfield Infrastructure can be required to pay. The tables include both interest and principal cash flows:



	Less than 1 year		1-2 years		2-5 years		5+ years		Total contractual cash flows
December 31, 2017
US$ MILLIONS
Accounts payable and other liabilities	$	646	$	45	$	59	$	293	$	1,043
Corporate borrowings	99		—		1,445		557		2,101
Non-recourse borrowings	372		571		2,043		5,101		8,087
Financial liabilities	237		58		930		88		1,313

Interest Expense:
Corporate borrowings	49		47		106		25		227
Non-Recourse borrowings	381		348		864		1,343		2,936



	Less than 1 year		1-2 years		2-5 years		5+ years		Total contractual cash flows
December 31, 2016
US$ MILLIONS
Accounts payable and other liabilities	$	540	$	34	$	26	$	186	$	786
Corporate borrowings	295		93		279		335		1,002
Non-recourse borrowings	286		233		1,708		5,109		7,336
Financial liabilities	229		29		49		74		381

Interest Expense:
Corporate borrowings	40		29		64		14		147
Non-recourse borrowings	361		342		871		1,450		3,024

Disclosure of sensitivity analysis for interest rate and foreign exchange risk

The sensitivity analyses below reflect Brookfield Infrastructure’s exposure to interest rates for both derivative and non-derivative instruments at the reporting date, assuming that a 10 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 10 basis point change to reflect the current methodology employed by Brookfield Infrastructure in assessing interest rate risk. Such parallel shift in the yield curve by 10 basis points would have had the following impact, assuming all other variables were held constant:



	2017					2016						2015
US$ MILLIONS	10 bp decrease			10 bp increase		10 bp decrease			10 bp increase			10 bp decrease			10 bp increase
Net income (loss)	$	—		$	—	$	1		$	(1	)	$	2		$	(2	)
Other comprehensive (loss) income	(1		)	1		(1		)	1			(2		)	2

The following tables detail Brookfield Infrastructure’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
	2017						2016						2015
US$ MILLIONS	-10%			10%			-10%			10%			-10%		10%
USD/AUD	$	(18	)	$	18		$	(2	)	$	2		$	8	$	(8	)
USD/EUR	(9		)	9			(8		)	8			5		(5		)
USD/GBP	(3		)	3			(6		)	6			5		(5		)
USD/BRL	21			(21		)	14			(14		)	—		—
USD/CLP	1			(1		)	—			—			1		(1		)
USD/CAD	(1		)	1			(1		)	1			1		(1		)
USD/PEN	—			—			—			—			—		—
USD/INR	—			—			—			—			—		—



	Impact on Partnership Capital
	2017					2016					2015
US$ MILLIONS	-10%		10%			-10%		10%			-10%		10%
USD/AUD	$	—	$	—		$	—	$	—		$	24	$	(24	)
USD/EUR	—		—			35		(35		)	18		(18		)
USD/GBP	—		—			—		—			23		(23		)
USD/CLP	8		(8		)	10		(10		)	13		(13		)
USD/COP	7		(7		)	6		(6		)	6		(6		)
USD/BRL	334		(334		)	172		(172		)	89		(89		)
USD/CAD	—		—			—		—			11		(11		)
USD/PEN	12		(12		)	11		(11		)	—		—
USD/INR	4		(4		)	4		(4		)	—		—

Disclosure of foreign currency exposure

The tables below set out Brookfield Infrastructure’s currency exposure at December 31, 2017, 2016 and 2015:



2017
US$ MILLIONS	USD			AUD		GBP		BRL		CLP		CAD			EUR		COP		PEN		INR		NZD		Total
Assets:
Current assets	$	358		$	276	$	151	$	322	$	85	$	78		$	—	$	68	$	100	$	57	$	17	$	1,512
Non-current assets	4,400			5,770		4,431		8,184		1,117		814			836		764		1,356		256		37		27,965
	$	4,758		$	6,046	$	4,582	$	8,506	$	1,202	$	892		$	836	$	832	$	1,456	$	313	$	54	$	29,477
Liabilities:
Current liabilities	$	641		$	227	$	414	$	73	$	59	$	55		$	—	$	26	$	18	$	30	$	21	$	1,564
Non-current liabilities	3,093			3,983		2,614		2,015		989		443			—		438		673		185		6		14,439
	3,734			4,210		3,028		2,088		1,048		498			—		464		691		215		27		16,003
Non-controlling interest—in operating subsidiaries and preferred unitholders	602			417		396		3,082		75		891			—		302		644		60		1		6,470
Non-controlling interest—Redeemable Partnership Units held by Brookfield	(50		)	407		332		959		23		28			240		19		35		11		8		2,012
Net investment	$	472		$	1,012	$	826	$	2,377	$	56	$	(525	)	$	596	$	47	$	86	$	27	$	18	$	4,992



2016
US$ MILLIONS	USD		AUD		GBP		BRL		CLP		CAD		EUR		COP		PEN		INR		NZD		Total
Assets:
Current assets	$	849	$	214	$	127	$	42	$	102	$	18	$	—	$	55	$	127	$	52	$	46	$	1,632
Non-current assets	3,744		5,542		3,739		1,895		1,070		677		718		700		1,260		265		33		19,643
	$	4,593	$	5,756	$	3,866	$	1,937	$	1,172	$	695	$	718	$	755	$	1,387	$	317	$	79	$	21,275
Liabilities:
Current liabilities	$	833	$	206	$	262	$	23	$	50	$	35	$	—	$	27	$	27	$	36	$	16	$	1,515
Non-current liabilities	1,636		3,764		2,243		—		941		309		—		369		636		186		32		10,116
	2,469		3,970		2,505		23		991		344		—		396		663		222		48		11,631
Non-controlling interest—in operating subsidiaries and preferred unitholders	919		370		333		189		89		261		—		294		610		58		23		3,146
Non-controlling interest—Redeemable Partnership Units held by Brookfield	344		405		294		493		26		26		206		19		33		11		3		1,860
Net investment	$	861	$	1,011	$	734	$	1,232	$	66	$	64	$	512	$	46	$	81	$	26	$	5	$	4,638



2015
US$ MILLIONS	USD		AUD		GBP		BRL		CLP		CAD		EUR		COP		Total
Assets:
Current assets	$	234	$	380	$	470	$	6	$	126	$	291	$	—	$	46	$	1,553
Non-current assets	2,485		5,816		3,927		1,020		1,052		636		618		629		16,182
	$	2,719	$	6,196	$	4,397	$	1,026	$	1,178	$	927	$	618	$	675	$	17,735
Liabilities:
Current liabilities	$	502	$	103	$	434	$	—	$	30	$	122	$	—	$	20	$	1,210
Non-current liabilities	1,714		3,745		2,312		—		902		334		—		342		9,349
	2,216		3,848		2,746		—		932		456		—		362		10,559
Non-controlling interest—in operating subsidiaries and preferred unitholders	377		269		385		141		121		248		—		256		1,797
Non-controlling interest—Redeemable Partnership Units held by Brookfield	36		587		357		249		35		63		175		16		1,518
Net investment	$	90	$	1,492	$	909	$	636	$	90	$	160	$	443	$	41	$	3,861