XML 60 R71.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables)
 12 Months Ended
Dec. 31, 2019
Financial Instruments [Abstract]  
Notional amount of derivative positions
The aggregate notional amount of Brookfield Infrastructure’s derivative positions at December 31, 2019 and 2018 were as follows:
US$ MILLIONS
 
Note
 
2019
 
2018
Foreign exchange contracts
 
(a)
 
$
4,626

 
$
3,482

Interest rates swaps and other
 
(b)
 
11,229

 
6,484

 
 
 
 
$
15,855

 
$
9,966

Brookfield Infrastructure held the following foreign exchange contracts with notional amounts at December 31, 2019 and 2018.
 
 
Notional Amount
(U.S. Dollars)
 
Average
Exchange Rate
US$ MILLIONS
 
2019
 
2018
 
2019
 
2018
Foreign exchange contracts
 
 
 
 
 
 
 
 
British pounds
 
$
2,882

 
$
1,263

 
1.31

 
1.36

Australian dollars
 
1,102

 
1,184

 
0.73

 
0.75

European Union euros
 
365

 
461

 
1.25

 
1.22

Chilean pesos
 
242

 
255

 
0.0015

 
0.0015

Colombian peso
 
19

 
—

 
0.0003

 
—

Peruvian soles
 
12

 
11

 
0.29

 
0.30

Canadian dollars
 
4

 
308

 
0.76

 
0.78

 
 
$
4,626

 
$
3,482

 


 
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, 2019 and 2018:
US$ MILLIONS
 
Unrealized Gains
on Derivative
Financial Assets
 
Unrealized Losses
on Derivative
Financial Liabilities
 
Net Change During 2019
 
Net Change During 2018
Foreign exchange derivatives
 
$
25

 
$
(153
)
 
$
(128
)
 
$
355

Interest rate derivative
 
155

 
(186
)
 
(31
)
 
(142
)
 
 
$
180

 
$
(339
)
 
$
(159
)
 
$
213
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, 2019 and the comparative notional amounts at December 31, 2018, for both derivatives that are classified as fair value through profit or loss and derivatives that qualify for hedge accounting:
 
 
2019
 
2018
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
 
$
651

 
$
765

 
$
—

 
$
1,416

 
$
1,768

Interest rate derivatives
 
 
 
 
 
 
 
 
 
 
Interest rate swaps, cross currency interest rate swaps and other
 
66

 
53

 
—

 
119

 
300

Inflation linked swaps
 
—

 
—

 
167

 
167

 
160

 
 
$
717

 
$
818

 
$
167

 
$
1,702

 
$
2,228

Elected for hedge accounting
 
 
 
 
 
 
 
 
 
 
Foreign exchange derivatives
 
$
2,051

 
$
1,159

 
$
—

 
$
3,210

 
$
1,714

Interest rate derivatives
 
 
 
 
 
 
 
 
 
 
Interest rate and cross currency interest rate swaps
 
522

 
5,870

 
4,551

 
10,943

 
6,024

 
 
$
2,573

 
$
7,029

 
$
4,551

 
$
14,153

 
$
7,738
Disclosure of derivatives elected for hedge accounting
The following table classifies derivatives elected for hedge accounting during the years ended December 31, 2019 and 2018 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:
 
 
2019
 
2018
AS AT AND FOR THE YEARS ENDED (MILLIONS)
 
Notional
 
Effective
Portion
 
Ineffective
Portion
 
Notional
 
Effective
Portion
 
Ineffective
Portion
Cash flow hedges
 
$
10,943

 
$
(33
)
 
$
(1
)
 
$
6,024

 
$
(101
)
 
$
(1
)
Net investment hedges
 
3,210

 
(113
)
 
16

 
1,714

 
189

 
9

 
 
$
14,153

 
$
(146
)
 
$
15

 
$
7,738

 
$
88

 
$
8