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INVESTMENT IN ASSOCIATES AND JOINT VENTURES (Tables)
 6 Months Ended
Jun. 30, 2019
Interests In Other Entities [Abstract]  
Disclosure of joint ventures [text block]
The following tables summarize the aggregate balances of investments in associates on a 100% basis:
 
As of
US$ MILLIONS
June 30, 2019
 
December 31, 2018
Financial position:
 
 
 
Total assets
$
36,732

 
$
33,043

Total liabilities
(19,206
)
 
(16,570
)
Net assets
$
17,526

 
$
16,473

 
For the three-month
period ended June 30
 
For the six-month
period ended June 30
US$ MILLIONS
2019

 
2018

 
2019

 
2018

Financial performance:
 
 
 
 
 
 
 
Total revenue
$
1,319

 
$
1,406

 
$
2,850

 
$
2,973

Total income for the period
83

 
32

 
134

 
96

Brookfield Infrastructure’s share of net income before reclassification
34

 
1

 
52

 
31

Reclassification of previously recognized foreign currency movements(1)
—

 
—

 
—

 
(35
)
Brookfield Infrastructure’s share of net income (loss)
$
34

 
$
1

 
$
52

 
$
(4
)
1.
In March 2018, Brookfield Infrastructure sold its ownership in ETC Transmission Holdings. In conjunction with the sale, $35 million of accumulated other comprehensive losses were reclassified to the Consolidated Statement of Operating Results and recorded within share of earnings (losses) from associates and joint ventures.
The following table represents the change in the balance of investments in associates and joint ventures:
US$ MILLIONS
For the six-month period ended June 30, 2019
 
For the 12 month period ended December 31, 2018
Balance at the beginning of the period
$
4,591

 
$
5,572

Share of earnings (loss) for the period(1)
52

 
(13
)
Foreign currency translation and other
26

 
(296
)
Share of other reserves for the period—OCI
(72
)
 
260

Distributions
(84
)
 
(59
)
Disposition of interest(1),(2)
(125
)
 
(951
)
Acquisitions(3)
235

 
78

Ending Balance
$
4,623

 
$
4,591

1.
In March 2018, Brookfield Infrastructure sold its ownership in ETC Transmission Holdings, a Chilean electricity transmission operation, for $1.3 billion. On disposition, Brookfield Infrastructure recognized a gain on sale of $338 million ($209 million, net of taxes) presented within gain on sale of associate on the Consolidated Statements of Operating Results. In association with the gain, $35 million of accumulated other comprehensive losses were reclassified to share of losses from associates and joint ventures on the Consolidated Statements of Operating Results.
2.
In June 2019, Brookfield Infrastructure sold its 40% interest in its European port operation to a third party. On disposition, Brookfield Infrastructure recognized a gain on sale of approximately $10 million.
3.
In March 2019, Brookfield Infrastructure, alongside its institutional partners, acquired an effective 12% interest in a Brazilian data center operation, Ascenty Participacoes S.A (“Ascenty”), for total consideration payable of $188 million. The investment was funded by the partnership through its participation in a Brookfield sponsored infrastructure fund. Please refer to Note 17, Related Party Transactions for additional information. Brookfield maintains 50% of the voting rights of Ascenty in a joint venture with Digital Realty Trust Inc. Brookfield Infrastructure has joint control through its position in the business. Accordingly, our partnership equity accounts for the entity.
Disclosure of associates [text block]
The following tables summarize the aggregate balances of investments in associates on a 100% basis:
 
As of
US$ MILLIONS
June 30, 2019
 
December 31, 2018
Financial position:
 
 
 
Total assets
$
36,732

 
$
33,043

Total liabilities
(19,206
)
 
(16,570
)
Net assets
$
17,526

 
$
16,473

 
For the three-month
period ended June 30
 
For the six-month
period ended June 30
US$ MILLIONS
2019

 
2018

 
2019

 
2018

Financial performance:
 
 
 
 
 
 
 
Total revenue
$
1,319

 
$
1,406

 
$
2,850

 
$
2,973

Total income for the period
83

 
32

 
134

 
96

Brookfield Infrastructure’s share of net income before reclassification
34

 
1

 
52

 
31

Reclassification of previously recognized foreign currency movements(1)
—

 
—

 
—

 
(35
)
Brookfield Infrastructure’s share of net income (loss)
$
34

 
$
1

 
$
52

 
$
(4
)
1.
In March 2018, Brookfield Infrastructure sold its ownership in ETC Transmission Holdings. In conjunction with the sale, $35 million of accumulated other comprehensive losses were reclassified to the Consolidated Statement of Operating Results and recorded within share of earnings (losses) from associates and joint ventures.
The following table represents the change in the balance of investments in associates and joint ventures:
US$ MILLIONS
For the six-month period ended June 30, 2019
 
For the 12 month period ended December 31, 2018
Balance at the beginning of the period
$
4,591

 
$
5,572

Share of earnings (loss) for the period(1)
52

 
(13
)
Foreign currency translation and other
26

 
(296
)
Share of other reserves for the period—OCI
(72
)
 
260

Distributions
(84
)
 
(59
)
Disposition of interest(1),(2)
(125
)
 
(951
)
Acquisitions(3)
235

 
78

Ending Balance
$
4,623

 
$
4,591

1.
In March 2018, Brookfield Infrastructure sold its ownership in ETC Transmission Holdings, a Chilean electricity transmission operation, for $1.3 billion. On disposition, Brookfield Infrastructure recognized a gain on sale of $338 million ($209 million, net of taxes) presented within gain on sale of associate on the Consolidated Statements of Operating Results. In association with the gain, $35 million of accumulated other comprehensive losses were reclassified to share of losses from associates and joint ventures on the Consolidated Statements of Operating Results.
2.
In June 2019, Brookfield Infrastructure sold its 40% interest in its European port operation to a third party. On disposition, Brookfield Infrastructure recognized a gain on sale of approximately $10 million.
3.
In March 2019, Brookfield Infrastructure, alongside its institutional partners, acquired an effective 12% interest in a Brazilian data center operation, Ascenty Participacoes S.A (“Ascenty”), for total consideration payable of $188 million. The investment was funded by the partnership through its participation in a Brookfield sponsored infrastructure fund. Please refer to Note 17, Related Party Transactions for additional information. Brookfield maintains 50% of the voting rights of Ascenty in a joint venture with Digital Realty Trust Inc. Brookfield Infrastructure has joint control through its position in the business. Accordingly, our partnership equity accounts for the entity.
Disclosure of operating segments [text block]
The following is an analysis of Brookfield Infrastructure’s assets by reportable operating segment for the periods under review:
 
Total Attributable to Brookfield Infrastructure
 
 
 
 
 
 
 
 
AS OF JUNE 30, 2019
Utilities

 
Transport

 
Energy

 
Data
Infrastructure

 
Corporate

 
Total

 
Contribution
from
investments
in associates

 
Attributable
to non-
controlling
interest

 
Working
capital
adjustment
and other

 
As per
IFRS
financials(1)

US$ MILLIONS
 
 
 
 
 
 
 
 
 
Total assets
$
4,981

 
$
6,203

 
$
5,211

 
$
1,804

 
$
(1,965
)
 
$
16,234

 
$
(2,324
)
 
$
21,064

 
$
6,491

 
$
41,465

 
Total Attributable to Brookfield Infrastructure
 
 
 
 
 
 
 
 
AS OF DECEMBER 31, 2018
Utilities

 
Transport

 
Energy

 
Data
Infrastructure

 
Corporate

 
Total

 
Contribution
from
investments
in associates

 
Attributable
to non-
controlling
interest

 
Working
capital
adjustment
and other

 
As per
IFRS
financials(1)

US$ MILLIONS
 
 
 
 
 
 
 
 
 
Total assets
$
4,864

 
$
6,424

 
$
4,722

 
$
1,446

 
$
(929
)
 
$
16,527

 
$
(2,350
)
 
$
17,545

 
$
4,858

 
$
36,580

1.
The above table provides each segment’s assets in the format that management organizes its segments to make operating decisions and assess performance. Each segment is presented on a proportionate basis, taking into account Brookfield Infrastructure’s ownership in operations using consolidation and the equity method whereby our partnership either controls or exercises significant influence over the investment respectively. The above table reconciles Brookfield Infrastructure’s proportionate assets to total assets presented on our partnership’s Consolidated Statements of Financial Position by removing net liabilities contained within investments in associates and joint ventures and reflecting the assets attributable to non-controlling interests, and adjusting for working capital assets which are netted against working capital liabilities.
 
 
Total attributable to Brookfield Infrastructure
 
 
 
 
 
 
FOR THE THREE-MONTH PERIOD ENDED
JUNE 30, 2019
US$ MILLIONS
 
Utilities

 
Transport

 
Energy

 
Data
Infrastructure(1)

 
Corporate

 
Total

 
Contribution
from
investments
in associates

 
Attributable to non-controlling
interest

 
As per IFRS
financials(2)

 
 
 
 
 
 
 
 
Revenues
 
$
278

 
$
386

 
$
256

 
$
67

 
$
—

 
$
987

 
$
(369
)
 
$
1,067

 
$
1,685

Costs attributed to revenues
 
(88
)
 
(202
)
 
(133
)
 
(28
)
 
—

 
(451
)
 
180

 
(569
)
 
(840
)
General and administrative costs
 
—

 
—

 
—

 
—

 
(64
)
 
(64
)
 
—

 
—

 
(64
)
Adjusted EBITDA
 
190

 
184

 
123

 
39

 
(64
)
 
472

 
(189
)
 
498

 
 
Other (expense) income
 
(9
)
 
2

 
6

 
1

 
19

 
19

 
(1
)
 
(15
)
 
3

Interest expense
 
(38
)
 
(51
)
 
(33
)
 
(10
)
 
(22
)
 
(154
)
 
46

 
(133
)
 
(241
)
FFO
 
143

 
135

 
96

 
30

 
(67
)
 
337

 
(144
)
 
350

 
 
Depreciation and amortization
 
(44
)
 
(94
)
 
(65
)
 
(30
)
 
(1
)
 
(234
)
 
105

 
(194
)
 
(323
)
Deferred taxes
 
(27
)
 
5

 
3

 
(1
)
 
1

 
(19
)
 
14

 
6

 
1

Mark-to-market on hedging items and other
 
44

 
(37
)
 
(25
)
 
(9
)
 
41

 
14

 
(9
)
 
(6
)
 
(1
)
Share of earnings from associates
 
—

 
—

 
—

 
—

 
—

 
—

 
34

 
—

 
34

Net income attributable to non-controlling interest and preferred unitholders
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(156
)
 
(156
)
Net income (loss) attributable to partnership(3)
 
$
116

 
$
9

 
$
9

 
$
(10
)
 
$
(26
)
 
$
98

 
$
—

 
$
—

 
$
98


 
 
Total attributable to Brookfield Infrastructure
 
 
 
 
 
 
FOR THE THREE-MONTH PERIOD ENDED
JUNE 30, 2018
US$ MILLIONS
 
Utilities

 
Transport

 
Energy

 
Data
Infrastructure(1)

 
Corporate

 
Total

 
Contribution
from
investments
in associates

 
Attributable to non-controlling
interest

 
As per IFRS
financials(2)

 
 
 
 
 
 
 
 
 
Revenues
 
$
245

 
$
410

 
$
137

 
$
45

 
$
—

 
$
837

 
$
(368
)
 
$
575

 
$
1,044

Costs attributed to revenues
 
(68
)
 
(237
)
 
(68
)
 
(22
)
 
—

 
(395
)
 
211

 
(283
)
 
(467
)
General and administrative costs
 
—

 
—

 
—

 
—

 
(54
)
 
(54
)
 
—

 
—

 
(54
)
Adjusted EBITDA
 
177

 
173

 
69

 
23

 
(54
)
 
388

 
(157
)
 
292

 
 
Other (expense) income
 
(8
)
 
—

 
3

 
(1
)
 
16

 
10

 
4

 
(26
)
 
(12
)
Interest expense
 
(30
)
 
(40
)
 
(18
)
 
(3
)
 
(13
)
 
(104
)
 
30

 
(51
)
 
(125
)
FFO
 
139

 
133

 
54

 
19

 
(51
)
 
294

 
(123
)
 
215

 
 
Depreciation and amortization
 
(43
)
 
(85
)
 
(38
)
 
(17
)
 
—

 
(183
)
 
91

 
(96
)
 
(188
)
Deferred taxes
 
(12
)
 
(1
)
 
(1
)
 
—

 
1

 
(13
)
 
(3
)
 
(10
)
 
(26
)
Mark-to-market on hedging items and other
 
(10
)
 
(23
)
 
(20
)
 
1

 
79

 
27

 
34

 
(15
)
 
46

Share of earnings from associates
 
—

 
—

 
—

 
—

 
—

 
—

 
1

 
—

 
1

Net income attributable to non-controlling interest and preferred unitholders
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(94
)
 
(94
)
Net income (loss) attributable to partnership(3)
 
$
74

 
$
24

 
$
(5
)
 
$
3

 
$
29

 
$
125

 
$
—

 
$
—

 
$
125


 
 
Total attributable to Brookfield Infrastructure
 
 
 
 
 
 
FOR THE SIX-MONTH PERIOD ENDED
JUNE 30, 2019
US$ MILLIONS
 
Utilities

 
Transport

 
Energy

 
Data
Infrastructure(1)

 
Corporate

 
Total

 
Contribution
from
investments
in associates

 
Attributable to non-controlling
interest

 
As per IFRS
financials(2)

 
 
 
 
 
 
 
 
 
Revenues
 
$
547

 
$
775

 
$
501

 
$
129

 
$
—

 
$
1,952

 
$
(737
)
 
$
2,063

 
$
3,278

Costs attributed to revenues
 
(176
)
 
(402
)
 
(251
)
 
(54
)
 
—

 
(883
)
 
357

 
(1,112
)
 
(1,638
)
General and administrative costs
 
—

 
—

 
—

 
—

 
(125
)
 
(125
)
 
—

 
—

 
(125
)
Adjusted EBITDA
 
371

 
373

 
250

 
75

 
(125
)
 
944

 
(380
)
 
951

 
 
Other (expense) income
 
(19
)
 
1

 
14

 
2

 
40

 
38

 
2

 
(53
)
 
(13
)
Interest expense
 
(72
)
 
(100
)
 
(61
)
 
(19
)
 
(42
)
 
(294
)
 
87

 
(246
)
 
(453
)
FFO
 
280

 
274

 
203

 
58

 
(127
)
 
688

 
(291
)
 
652

 
 
Depreciation and amortization
 
(89
)
 
(185
)
 
(124
)
 
(55
)
 
(1
)
 
(454
)
 
203

 
(364
)
 
(615
)
Deferred taxes
 
(40
)
 
11

 
1

 
3

 
4

 
(21
)
 
10

 
—

 
(11
)
Mark-to-market on hedging items and other
 
33

 
(77
)
 
(39
)
 
(15
)
 
13

 
(85
)
 
26

 
3

 
(56
)
Share of earnings from associates
 
—

 
—

 
—

 
—

 
—

 
—

 
52

 
—

 
52

Net income attributable to non-controlling interest and preferred unitholders
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(291
)
 
(291
)
Net income (loss) attributable to partnership(3)
 
$
184

 
$
23

 
$
41

 
$
(9
)
 
$
(111
)
 
$
128

 
$
—

 
$
—

 
$
128


 
 
Total attributable to Brookfield Infrastructure
 
 
 
 
 
 
FOR THE SIX-MONTH PERIOD ENDED
JUNE 30, 2018
US$ MILLIONS
 
Utilities

 
Transport

 
Energy

 
Data
Infrastructure(1)

 
Corporate

 
Total

 
Contribution
from
investments
in associates

 
Attributable to non-controlling
interest

 
As per IFRS
financials(2)

 
 
 
 
 
 
 
 
 
Revenues
 
$
517

 
$
834

 
$
290

 
$
88

 
$
—

 
$
1,729

 
$
(791
)
 
$
1,119

 
$
2,057

Costs attributed to revenues
 
(137
)
 
(483
)
 
(142
)
 
(42
)
 
—

 
(804
)
 
431

 
(503
)
 
(876
)
General and administrative costs
 
—

 
—

 
—

 
—

 
(112
)
 
(112
)
 
—

 
—

 
(112
)
Adjusted EBITDA
 
380

 
351

 
148

 
46

 
(112
)
 
813

 
(360
)
 
616

 
 
Other (expense) income
 
(11
)
 
2

 
8

 
(2
)
 
33

 
30

 
4

 
(51
)
 
(17
)
Interest expense
 
(61
)
 
(83
)
 
(36
)
 
(6
)
 
(30
)
 
(216
)
 
72

 
(95
)
 
(239
)
FFO
 
308

 
270

 
120

 
38

 
(109
)
 
627

 
(284
)
 
470

 
 
Depreciation and amortization
 
(101
)
 
(184
)
 
(71
)
 
(37
)
 
—

 
(393
)
 
202

 
(190
)
 
(381
)
Deferred taxes
 
(27
)
 
12

 
(3
)
 
2

 
1

 
(15
)
 
(12
)
 
(14
)
 
(41
)
Mark-to-market on hedging items and other
 
(57
)
 
(62
)
 
(38
)
 
1

 
(67
)
 
(223
)
 
98

 
(54
)
 
(179
)
Gain on sale of associates
 
—

 
—

 
—

 
—

 
338

 
338

 
—

 
—

 
338

Share of earnings from associates
 
—

 
—

 
—

 
—

 
—

 
—

 
(4
)
 
—

 
(4
)
Net income attributable to non-controlling interest and preferred unitholders
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(212
)
 
(212
)
Net income attributable to partnership(3)
 
$
123

 
$
36

 
$
8

 
$
4

 
$
163

 
$
334

 
$
—

 
$
—

 
$
334

1.
During the second quarter of 2018, our Communications Infrastructure segment was renamed to Data Infrastructure. There was no concurrent change in the operations which comprise the segment.
2.
The above table provides each segment’s results in the format that management organizes its segments to make operating decisions and assess performance. Each segment is presented on a proportionate basis, taking into account Brookfield Infrastructure’s ownership in operations accounted for using the consolidation and equity methods under IFRS. The above table reconciles Brookfield Infrastructure’s proportionate results to our partnership’s Consolidated Statements of Operating Results on a line by line basis by aggregating the components comprising the earnings from our partnership’s investments in associates and reflecting the portion of each line item attributable to non-controlling interests.
3.
Includes net income (loss) attributable to non-controlling interests—Redeemable Partnership Units held by Brookfield, non-controlling interests—Exchange LP Units, general partner and limited partners.
The following table represents the carrying value of our partnership’s investments in associates and joint ventures:
 
As of
US$ MILLIONS
June 30, 2019
 
December 31, 2018
Utilities
$
111

 
$
92

Transport
2,382

 
2,497

Energy
1,178

 
1,183

Data infrastructure
923

 
710

Corporate
29

 
109

Ending Balance
$
4,623

 
$
4,591