FINANCIAL RISK MANAGEMENT (Tables)

12 Months Ended

Dec. 31, 2019

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	2019			2018
Corporate borrowings	$	2,475		$	1,993
Non-recourse borrowings	18,544			13,113
Subsidiary and corporate borrowings	21,019			15,106
Preferred shares	20			20
Cash and cash equivalents⁽¹⁾	(969		)	(713		)
Net debt	20,070			14,413
Total partnership capital	22,177			14,668
Total capital and net debt	$	42,247		$	29,081
Net debt to capitalization ratio	48		%	50		%


(1)	Includes marketable securities.

Disclosure of liquidity management

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



US$ MILLIONS⁽¹⁾	2019			2018
Corporate cash and financial assets	$	273		$	238
Availability under committed credit facilities	2,475			2,475
Draws on credit facility	(820		)	(510		)
Commitments under credit facility	(54		)	(47		)
Corporate liquidity	$	1,874		$	2,156


(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, 2019
US$ MILLIONS
Accounts payable and other liabilities	$	1,702	$	94	$	41	$	254	$	2,091
Corporate borrowings	—		—		1,705		770		2,475
Non-recourse borrowings	1,405		1,019		7,110		9,142		18,676
Financial liabilities	327		293		1,080		473		2,173
Lease liabilities⁽¹⁾	223		194		475		1,903		2,795

Interest Expense:
Corporate borrowings	74		74		165		123		436
Non-recourse borrowings	715		660		1,762		2,483		5,620



	Less than 1 year		1-2 years		2-5 years		5+ years		Total contractual cash flows
December 31, 2018
US$ MILLIONS
Accounts payable and other liabilities	$	1,048	$	48	$	36	$	220	$	1,352
Corporate borrowings	—		—		605		1,388		1,993
Non-recourse borrowings	995		794		5,127		6,290		13,206
Financial liabilities	124		26		1,037		93		1,280
Lease liabilities⁽¹⁾	—		—		—		—		—

Interest Expense:
Corporate borrowings	67		66		178		75		386
Non-recourse borrowings	595		542		1,397		1,771		4,305


(1)	The impact of the adoption of IFRS 16 requires the recognition of lease liabilities. Please refer to Note 3 Significant Accounting Policies for further details.

Disclosure of sensitivity analysis for interest rate and foreign exchange risk

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
	2019						2018						2017
US$ MILLIONS	-10%			10%			-10%			10%			-10%			10%
USD/AUD	$	4		$	(4	)	$	(20	)	$	20		$	(18	)	$	18
USD/EUR	—			—			(19		)	19			(9		)	9
USD/GBP	7			(7		)	(11		)	11			(3		)	3
USD/CLP	—			—			(3		)	3			1			(1		)
USD/COP	1			(1		)	1			(1		)	—			—
USD/BRL	18			(18		)	10			(10		)	21			(21		)
USD/CAD	1			(1		)	(2		)	2			(1		)	1
USD/PEN	—			—			—			—			—			—
USD/INR	(2		)	2			(1		)	1			—			—
USD/NZD	—			—			—			—			—			—



	Impact on Partnership Capital
	2019						2018						2017
US$ MILLIONS	-10%			10%			-10%			10%			-10%		10%
USD/AUD	$	12		$	(12	)	$	—		$	—		$	—	$	—
USD/EUR	—			—			—			—			—		—
USD/GBP	—			—			—			—			—		—
USD/CLP	(24		)	24			(28		)	28			8		(8		)
USD/COP	2			(2		)	8			(8		)	7		(7		)
USD/BRL	227			(227		)	231			(231		)	334		(334		)
USD/CAD	—			—			—			—			—		—
USD/PEN	11			(11		)	11			(11		)	12		(12		)
USD/INR	27			(27		)	10			(10		)	4		(4		)
USD/NZD	—			—			—			—			—		—

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:



	2019						2018						2017
US$ MILLIONS	10 bp decrease			10 bp increase			10 bp decrease			10 bp increase			10 bp decrease			10 bp increase
Net income	$	1		$	(1	)	$	1		$	(1	)	$	—		$	—
Other comprehensive income (loss)	(2		)	2			(2		)	2			(1		)	1

Disclosure of foreign currency exposure

The tables below set out Brookfield Infrastructure’s currency exposure at December 31, 2019, 2018 and 2017:



2019
US$ MILLIONS	USD			AUD		GBP		BRL		CLP			CAD			EUR		COP		PEN		INR		NZD & Other		Total
Assets:
Current assets	$	1,232		$	1,914	$	430	$	456	$	95		$	316		$	23	$	971	$	122	$	231	$	51	$	5,841
Non-current assets	14,594			5,488		7,195		6,889		821			8,541			764		1,166		1,337		3,143		529		50,467
	$	15,826		$	7,402	$	7,625	$	7,345	$	916		$	8,857		$	787	$	2,137	$	1,459	$	3,374	$	580	$	56,308
Liabilities:
Current liabilities	$	1,345		$	1,530	$	749	$	211	$	68		$	456		$	24	$	724	$	19	$	265	$	48	$	5,439
Non-current liabilities	8,908			3,703		4,211		3,448		1,112			4,639			73		314		683		1,482		119		28,692
	10,253			5,233		4,960		3,659		1,180			5,095			97		1,038		702		1,747		167		34,131
Non-controlling interest—in operating subsidiaries and preferred unitholders	5,704			475		754		1,414		(320		)	4,066			—		957		638		1,360		—		15,048
Non-controlling interest—Redeemable Partnership Units held by Brookfield	(37		)	485		547		650		16			(87		)	197		41		34		76		117		2,039
Non-controlling interest—Exchange LP	—			4		5		6		—			(1		)	2		—		—		1		1		18
Net investment attributable to limited partners and general partner	$	(94	)	$	1,205	$	1,359	$	1,616	$	40		$	(216	)	$	491	$	101	$	85	$	190	$	295	$	5,072



2018
US$ MILLIONS	USD			AUD		GBP		BRL		CLP		CAD		EUR		COP		PEN		INR		NZD & Other		Total
Assets:
Current assets	$	695		$	245	$	185	$	310	$	82	$	258	$	—	$	279	$	104	$	90	$	28	$	2,276
Non-current assets	5,237			5,303		4,708		6,828		940		6,206		861		1,857		1,308		976		80		34,304
	$	5,932		$	5,548	$	4,893	$	7,138	$	1,022	$	6,464	$	861	$	2,136	$	1,412	$	1,066	$	108	$	36,580
Liabilities:
Current liabilities	$	1,031		$	316	$	320	$	106	$	60	$	187	$	—	$	262	$	20	$	65	$	50	$	2,417
Non-current liabilities	3,836			3,628		2,798		3,185		861		3,093		—		772		654		668		—		19,495
	4,867			3,944		3,118		3,291		921		3,280		—		1,034		674		733		50		21,912
Non-controlling interest—in operating subsidiaries and preferred unitholders	1,261			372		442		1,540		43		2,766		—		964		622		229		—		8,239
Non-controlling interest—Redeemable Partnership Units held by Brookfield	(55		)	349		378		654		16		119		244		39		33		29		17		1,823
Non-controlling interest—Exchange LP	(4		)	14		15		25		1		5		10		2		1		1		1		71
Net investment attributable to limited partners and general partner	$	(137	)	$	869	$	940	$	1,628	$	41	$	294	$	607	$	97	$	82	$	74	$	40	$	4,535



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 attributable to limited partners and general partner	$	472		$	1,012	$	826	$	2,377	$	56	$	(525	)	$	596	$	47	$	86	$	27	$	18	$	4,992