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INVESTMENT IN ASSOCIATES AND JOINT VENTURES (Tables)
 6 Months Ended
Jun. 30, 2020
Interests In Other Entities [Abstract]  
Disclosure of joint ventures [text block]
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, 2020
 
For the 12 month period ended December 31, 2019
Balance at the beginning of the period
$
4,967

 
$
4,591

Share of earnings for the period
59

 
224

Foreign currency translation and other
(590
)
 
(62
)
Share of other reserves for the period—OCI
33

 
54

Distributions
(131
)
 
(254
)
Disposition of interest(1)
—

 
(135
)
Held for sale(2)
(2
)
 
(38
)
Acquisitions(3),(4),(5)
—

 
587

Ending Balance(6)
$
4,336

 
$
4,967


1.
In June 2019, Brookfield Infrastructure sold its 40% interest in its European port operation to a third party for $135 million.
2.
On December 19, 2019, Brookfield Infrastructure agreed to sell its 11% interest in a Texas electricity transmission operation for total consideration of approximately $60 million. The investment was classified as held for sale effective December 31, 2019. During the six-month period ended June 30, 2020, our partnership allocated $2 million of earnings attributable to the operation to held for sale.
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 approximately $190 million. 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. Subsequent to the initial acquisition, Brookfield Infrastructure has made additional injections into the business to fund growth capital expenditures.
4.
In July 2019, Brookfield Infrastructure, alongside its institutional partners, acquired an effective 12% interest in a New Zealand integrated data provider, Vodafone New Zealand (“VNZ”), for approximately $170 million. Brookfield maintains 50% of the voting rights of VNZ in a joint venture with Infratil Limited. Brookfield Infrastructure has joint control through its position in the business. Accordingly, our partnership equity accounts for the entity.
5.
Brookfield Infrastructure acquired a 13% interest in Ramones II Norte (“Norte”) on October 7, 2019 and an 11% interest in Ramones II Sur (“Sur”) on October 21, 2019, collectively the regulated North American natural gas transmission operation (“Los Ramones”), for approximately $140 million. Brookfield maintains 50% of the voting rights in Norte and 45% of the voting rights in Sur. Brookfield Infrastructure has joint control of Los Ramones through its ownership and governance rights.
6.
Investments in associates include a shareholder loan of $500 million receivable from our North American natural gas pipeline.
Disclosure of operating segments [text block]
The following is an analysis of Brookfield Infrastructure’s assets by reportable operating segment.
 
 
Total Attributable to Brookfield Infrastructure
 
 
 
 
 
 
 
 
AS OF JUNE 30, 2020
US$ MILLIONS
 
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)
Total assets
 
$
5,224

 
$
5,780

 
$
5,458

 
$
2,114

 
$
(1,111
)
 
$
17,465

 
$
(2,762
)
 
$
28,970

 
$
7,649

 
$
51,322

 
 
Total Attributable to Brookfield Infrastructure
 
 
 
 
 
 
 
 
AS OF DECEMBER 31, 2019
US$ MILLIONS
 
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)
Total assets
 
$
5,825

 
$
6,916

 
$
5,589

 
$
2,204

 
$
(1,284
)
 
$
19,250

 
$
(2,884
)
 
$
32,621

 
$
7,321

 
$
56,308

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, 2020
US$ MILLIONS
 
Utilities
 
Transport
 
Energy
 
Data
Infrastructure
 
Corporate
 
Total
 
Contribution
from
investments
in associates
 
Attributable to non-controlling
interest
 
As per IFRS
financials(1)
 
 
 
 
 
 
 
 
Revenues
 
$
248

 
$
283

 
$
266

 
$
104

 
$
—

 
$
901

 
$
(298
)
 
$
1,343

 
$
1,946

Costs attributed to revenues
 
(74
)
 
(138
)
 
(128
)
 
(51
)
 
—

 
(391
)
 
130

 
(802
)
 
(1,063
)
General and administrative costs
 
—

 
—

 
—

 
—

 
(72
)
 
(72
)
 
—

 
—

 
(72
)
Adjusted EBITDA
 
174

 
145

 
138

 
53

 
(72
)
 
438

 
(168
)
 
541

 
 
Other (expense) income
 
(10
)
 
9

 
2


2

 
40

 
43

 
(7
)
 
(40
)
 
(4
)
Interest expense
 
(34
)
 
(46
)
 
(34
)
 
(12
)
 
(22
)
 
(148
)
 
46

 
(145
)
 
(247
)
FFO
 
130

 
108

 
106

 
43

 
(54
)
 
333

 
(129
)
 
356

 
 
Depreciation and amortization
 
(42
)
 
(76
)
 
(63
)
 
(41
)
 
—

 
(222
)
 
92

 
(245
)
 
(375
)
Deferred taxes
 
(15
)
 
5

 
(1
)
 
19

 
(4
)
 
4

 
(12
)
 
—

 
(8
)
Mark-to-market on hedging items and other
 
(13
)
 
(32
)
 
(24
)
 
(5
)
 
(102
)
 
(176
)
 
38

 
(16
)
 
(154
)
Share of earnings from associates
 
—

 
—

 
—

 
—

 
—

 
—

 
11

 
—

 
11

Net income attributable to non-controlling interest
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(95
)
 
(95
)
Net income (loss) attributable to partnership(2)
 
$
60

 
$
5

 
$
18

 
$
16

 
$
(160
)
 
$
(61
)
 
$
—

 
$
—

 
$
(61
)
 
 
Total attributable to Brookfield Infrastructure
 
 
 
 
 
 
FOR THE THREE-MONTH PERIOD ENDED
JUNE 30, 2019
US$ MILLIONS
 
Utilities
 
Transport
 
Energy
 
Data
Infrastructure
 
Corporate
 
Total
 
Contribution
from
investments
in associates
 
Attributable to non-controlling
interest
 
As per IFRS
financials(1)
 
 
 
 
 
 
 
 
 
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
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(156
)
 
(156
)
Net income (loss) attributable to partnership(2)
 
$
116

 
$
9

 
$
9

 
$
(10
)
 
$
(26
)
 
$
98

 
$
—

 
$
—

 
$
98

 
 
Total attributable to Brookfield Infrastructure
 
 
 
 
 
 
FOR THE SIX-MONTH PERIOD ENDED
JUNE 30, 2020
US$ MILLIONS
 
Utilities
 
Transport
 
Energy
 
Data
Infrastructure
 
Corporate
 
Total
 
Contribution
from
investments
in associates
 
Attributable to non-controlling
interest
 
As per IFRS
financials(1)
 
 
 
 
 
 
 
 
 
Revenues
 
$
523

 
$
608

 
$
543

 
$
213

 
$
—

 
$
1,887

 
$
(627
)
 
$
2,882

 
$
4,142

Costs attributed to revenues
 
(156
)
 
(297
)
 
(257
)
 
(104
)
 
—

 
(814
)
 
267

 
(1,755
)
 
(2,302
)
General and administrative costs
 
—

 
—

 
—

 
—

 
(133
)
 
(133
)
 
—

 
—

 
(133
)
Adjusted EBITDA
 
367

 
311

 
286

 
109

 
(133
)
 
940

 
(360
)
 
1,127

 
 
Other (expense) income
 
(22
)
 
8

 
5

 
—

 
59

 
50

 
(3
)
 
(69
)
 
(22
)
Interest expense
 
(69
)
 
(91
)
 
(70
)
 
(24
)
 
(45
)
 
(299
)
 
88

 
(318
)
 
(529
)
FFO
 
276

 
228

 
221

 
85

 
(119
)
 
691

 
(275
)
 
740

 
 
Depreciation and amortization
 
(87
)
 
(166
)
 
(127
)
 
(89
)
 
—

 
(469
)
 
203

 
(509
)
 
(775
)
Deferred taxes
 
(54
)
 
13

 
(6
)
 
19

 
(7
)
 
(35
)
 
(2
)
 
(19
)
 
(56
)
Mark-to-market on hedging items and other
 
(23
)
 
(98
)
 
(49
)
 
(23
)
 
64

 
(129
)
 
15

 
(88
)
 
(202
)
Share of earnings from associates
 
—

 
—

 
—

 
—

 
—

 
—

 
59

 
—

 
59

Net income attributable to non-controlling interest
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(124
)
 
(124
)
Net income (loss) attributable to partnership(2)
 
$
112

 
$
(23
)
 
$
39

 
$
(8
)
 
$
(62
)
 
$
58

 
$
—

 
$
—

 
$
58


 
 
Total attributable to Brookfield Infrastructure
 
 
 
 
 
 
FOR THE SIX-MONTH PERIOD ENDED
JUNE 30, 2019
US$ MILLIONS
 
Utilities
 
Transport
 
Energy
 
Data
Infrastructure
 
Corporate
 
Total
 
Contribution
from
investments
in associates
 
Attributable to non-controlling
interest
 
As per IFRS
financials(1)
 
 
 
 
 
 
 
 
 
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
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(291
)
 
(291
)
Net income (loss) attributable to partnership(2)
 
$
184

 
$
23

 
$
41

 
$
(9
)
 
$
(111
)
 
$
128

 
$
—

 
$
—

 
$
128

1.
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 joint ventures and reflecting the portion of each line item attributable to non-controlling interests.
2.
Includes net income (loss) attributable to non-controlling interests—Redeemable Partnership Units held by Brookfield, non-controlling interests—Exchange LP Units, general partner, limited partners and class A shares of BIPC.
The following table represents the carrying value of our partnership’s investments in associates and joint ventures:
 
As of
US$ MILLIONS
June 30, 2020
 
December 31, 2019
Utilities
$
211

 
$
245

Transport
1,854

 
2,398

Energy
1,290

 
1,267

Data infrastructure
949

 
1,029

Corporate
32

 
28

Ending Balance
$
4,336

 
$
4,967
Disclosure of associates [text block]
The following tables summarize the aggregate balances of investments in associates and joint ventures on a 100% basis:
 
As of
US$ MILLIONS
June 30, 2020
 
December 31, 2019
Financial position:
 
 
 
Total assets
$
41,245

 
$
45,480

Total liabilities
(24,418
)
 
(25,537
)
Net assets
$
16,827

 
$
19,943

 
For the three-month
period ended June 30
 
For the six-month
period ended June 30
US$ MILLIONS
2020
 
2019
 
2020
 
2019
Financial performance:
 
 
 
 
 
 
 
Total revenue
$
1,804

 
$
1,319

 
$
3,591

 
$
2,850

Total net income for the period
70

 
83

 
219

 
134

Brookfield Infrastructure’s share of net income
$
11

 
$
34

 
$
59

 
$
52