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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)
 12 Months Ended
Dec. 31, 2018
Fair Value Measurement [Abstract]  
Disclosure of financial assets
The following table provides the allocation of financial instruments and their associated financial instrument classifications as at December 31, 2018:
US$ MILLIONS
Financial Instrument Classification
MEASUREMENT BASIS
 
Fair value through profit or loss
 
Fair value through OCI
 
Amortized Cost
 
Total
Financial assets
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
—

 
$
—

 
$
540

 
$
540

Accounts receivable and other
 
—

 
—

 
1,171

 
1,171

Financial assets (current and non-current)(1)
 
989

 
17

 
166

 
1,172

Marketable securities
 
126

 
47

 
—

 
173

Total
 
$
1,115

 
$
64

 
$
1,877

 
$
3,056

 
 
 
 
 
 
 
 
 
Financial liabilities
 
 
 
 
 
 
 
 
Corporate borrowings
 
$
—

 
$
—

 
$
1,993

 
$
1,993

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

 
—

 
13,113

 
13,113

Accounts payable and other
 
—

 
—

 
1,308

 
1,308

Preferred shares(2)
 
—

 
—

 
20

 
20

Financial liabilities (current and non-current)(1)
 
373

 
—

 
907

 
1,280

Total
 
$
373

 
$
—

 
$
17,341

 
$
17,714

 
(1)
Derivative instruments which are elected for hedge accounting totaling $718 million are included in financial assets and $109 million of derivative instruments are included in financial liabilities.
(2)
$20 million of preferred shares issued to wholly-owned subsidiaries of Brookfield.
The following table provides the allocation of financial instruments and their associated financial instrument classifications as at December 31, 2017:
US$ MILLIONS
Financial Instrument Classification
MEASUREMENT BASIS
 
Fair value through profit or loss
 
Fair value
through OCI
 
Amortized Cost
 
Total
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)
$20 million of preferred shares issued to wholly-owned subsidiaries of Brookfield.
Disclosure of financial liabilities
The following table provides the allocation of financial instruments and their associated financial instrument classifications as at December 31, 2018:
US$ MILLIONS
Financial Instrument Classification
MEASUREMENT BASIS
 
Fair value through profit or loss
 
Fair value through OCI
 
Amortized Cost
 
Total
Financial assets
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
—

 
$
—

 
$
540

 
$
540

Accounts receivable and other
 
—

 
—

 
1,171

 
1,171

Financial assets (current and non-current)(1)
 
989

 
17

 
166

 
1,172

Marketable securities
 
126

 
47

 
—

 
173

Total
 
$
1,115

 
$
64

 
$
1,877

 
$
3,056

 
 
 
 
 
 
 
 
 
Financial liabilities
 
 
 
 
 
 
 
 
Corporate borrowings
 
$
—

 
$
—

 
$
1,993

 
$
1,993

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

 
—

 
13,113

 
13,113

Accounts payable and other
 
—

 
—

 
1,308

 
1,308

Preferred shares(2)
 
—

 
—

 
20

 
20

Financial liabilities (current and non-current)(1)
 
373

 
—

 
907

 
1,280

Total
 
$
373

 
$
—

 
$
17,341

 
$
17,714

 
(1)
Derivative instruments which are elected for hedge accounting totaling $718 million are included in financial assets and $109 million of derivative instruments are included in financial liabilities.
(2)
$20 million of preferred shares issued to wholly-owned subsidiaries of Brookfield.
The following table provides the allocation of financial instruments and their associated financial instrument classifications as at December 31, 2017:
US$ MILLIONS
Financial Instrument Classification
MEASUREMENT BASIS
 
Fair value through profit or loss
 
Fair value
through OCI
 
Amortized Cost
 
Total
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.
Carrying and fair values of financial assets
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, 2018
 
Dec. 31, 2017
US$ MILLIONS
 
Level 1
 
Level 2
 
Level 3
 
Level 1
 
Level 2
 
Level 3
Financial assets
 
 
 
 
 
 
 
 
 
 
 
 
Marketable securities
 
$
173

 
$
—

 
$
—

 
$
85

 
$
—

 
$
—

Financial assets (current and non-current)
 
—

 
959

 
47

 
—

 
617

 
48

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

 
$
280

 
$
93

 
$
—

 
$
351

 
$
89

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, 2018
 
Dec. 31, 2017
Marketable securities
 
Level 1(1)
 
$
173

 
$
85

Foreign currency forward contracts
 
Level 2(2)
 
 
 
 
Financial asset
 
 
 
$
241

 
$
236

Financial liability
 
 
 
23

 
196

Interest rate swaps & other
 
Level 2(2)
 
 
 
 
Financial asset
 
 
 
$
718

 
$
381

Financial liability
 
 
 
257

 
155

Other contracts
 
Level 3(3)
 
 
 
 
Financial asset
 
 
 
$
47

 
$
48

Financial liability
 
 
 
93

 
89

 
(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 assumptions concerning the amount and timing of estimated future cash flows and discount rates.
The following table provides the carrying values and fair values of financial instruments as at December 31, 2018 and December 31, 2017:
 
 
Dec. 31, 2018
 
Dec. 31, 2017
US$ MILLIONS
 
Carrying Value
 
Fair Value
 
Carrying Value
 
Fair Value
Financial assets
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
540

 
$
540

 
$
374

 
$
374

Accounts receivable and other
 
1,171

 
1,171

 
838

 
838

Financial assets (current and non-current)
 
1,172

 
1,172

 
837

 
837

Marketable securities
 
173

 
173

 
85

 
85

Total
 
$
3,056

 
$
3,056

 
$
2,134

 
$
2,134
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, 2018
 
Dec. 31, 2017
US$ MILLIONS
 
Level 1
 
Level 2
 
Level 3
 
Level 1
 
Level 2
 
Level 3
Financial assets
 
 
 
 
 
 
 
 
 
 
 
 
Marketable securities
 
$
173

 
$
—

 
$
—

 
$
85

 
$
—

 
$
—

Financial assets (current and non-current)
 
—

 
959

 
47

 
—

 
617

 
48

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

 
$
280

 
$
93

 
$
—

 
$
351

 
$
89

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, 2018
 
Dec. 31, 2017
Marketable securities
 
Level 1(1)
 
$
173

 
$
85

Foreign currency forward contracts
 
Level 2(2)
 
 
 
 
Financial asset
 
 
 
$
241

 
$
236

Financial liability
 
 
 
23

 
196

Interest rate swaps & other
 
Level 2(2)
 
 
 
 
Financial asset
 
 
 
$
718

 
$
381

Financial liability
 
 
 
257

 
155

Other contracts
 
Level 3(3)
 
 
 
 
Financial asset
 
 
 
$
47

 
$
48

Financial liability
 
 
 
93

 
89

 
(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 assumptions concerning the amount and timing of estimated future cash flows and discount rates.
 
 
Dec. 31, 2018
 
Dec. 31, 2017
US$ MILLIONS
 
Carrying Value
 
Fair Value
 
Carrying Value
 
Fair Value
Financial liabilities
 
 
 
 
 
 
 
 
Corporate borrowings(1)
 
$
1,993

 
$
1,978

 
$
2,101

 
$
2,113

Non-recourse borrowings(2)
 
13,113

 
13,372

 
8,063

 
8,392

Accounts payable and other
 
1,308

 
1,308

 
864

 
864

Preferred shares(3)
 
20

 
20

 
20

 
20

Financial liabilities (current and non-current)
 
1,280

 
1,280

 
1,313

 
1,313

 
 
$
17,714

 
$
17,958

 
$
12,361

 
$
12,702

 
(1)
Corporate borrowings are 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, 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.