XML 39 R19.htm IDEA: XBRL DOCUMENT
v3.20.4

PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended
--- | ---
Dec. 31, 2020
Property, plant and equipment [abstract] |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT
US$ MILLIONS |  | Utilities |  | Transport |  | Midstream |  | Data |  | Total
Gross Carrying Amount: |  |  |  |  |  |  |  |  |  |
Balance at January 1, 2019 |  | $ | 6,248 |  |  | $ | 2,495 |  |  | $ | 2,443 |  |  | $ | 444 |  |  | $ | 11,630 |
Change in accounting policies(1) |  | 110 |  |  | 356 |  |  | 108 |  |  | 633 |  |  | 1,207 |
Additions, net of disposals |  | 770 |  |  | 122 |  |  | 116 |  |  | 8 |  |  | 1,016 |
Non-cash (disposals) additions |  | (295) |  |  | 49 |  |  | 23 |  |  | (51) |  |  | (274) |
Acquisitions through business combinations(2) |  | 2,135 |  |  | 5,283 |  |  | 1,197 |  |  | 95 |  |  | 8,710 |
Assets reclassified as held for sale |  | (455) |  |  | — |  |  | (3) |  |  | — |  |  | (458) |
Net foreign currency exchange differences |  | 120 |  |  | 4 |  |  | 87 |  |  | 2 |  |  | 213 |
Balance at December 31, 2019 |  | $ | 8,633 |  |  | $ | 8,309 |  |  | $ | 3,971 |  |  | $ | 1,131 |  |  | $ | 22,044 |
Additions, net of disposals |  | 535 |  |  | 387 |  |  | 306 |  |  | 77 |  |  | 1,305 |
Non-cash (disposals) additions |  | 15 |  |  | (241) |  |  | (29) |  |  | (26) |  |  | (281) |
Acquisitions through business combinations(2) |  | — |  |  | — |  |  | — |  |  | 7,334 |  |  | 7,334 |
Net foreign currency exchange differences |  | 106 |  |  | 242 |  |  | 73 |  |  | 77 |  |  | 498 |
Balance at December 31, 2020 |  | $ | 9,289 |  |  | $ | 8,697 |  |  | $ | 4,321 |  |  | $ | 8,593 |  |  | $ | 30,900 |
Accumulated depreciation: |  |  |  |  |  |  |  |  |  |
Balance at January 1, 2019 |  | $ | (985) |  |  | $ | (744) |  |  | $ | (120) |  |  | $ | — |  |  | $ | (1,849) |
Depreciation expense |  | (415) |  |  | (178) |  |  | (84) |  |  | (87) |  |  | (764) |
Disposals |  | 3 |  |  | 2 |  |  | — |  |  | — |  |  | 5 |
Assets reclassified as held for sale |  | 194 |  |  | — |  |  | — |  |  | — |  |  | 194 |
Non-cash disposals (additions) |  | 50 |  |  | (27) |  |  | 3 |  |  | — |  |  | 26 |
Net foreign currency exchange differences |  | (18) |  |  | (3) |  |  | (7) |  |  | (1) |  |  | (29) |
Balance at December 31, 2019 |  | $ | (1,171) |  |  | $ | (950) |  |  | $ | (208) |  |  | $ | (88) |  |  | $ | (2,417) |
Depreciation expense |  | (419) |  |  | (498) |  |  | (141) |  |  | (189) |  |  | (1,247) |
Disposals |  | 12 |  |  | 4 |  |  | — |  |  | — |  |  | 16 |
Non-cash disposals |  | — |  |  | 130 |  |  | — |  |  | 17 |  |  | 147 |
Net foreign currency exchange differences |  | (35) |  |  | (90) |  |  | (7) |  |  | (3) |  |  | (135) |
Balance at December 31, 2020 |  | $ | (1,613) |  |  | $ | (1,404) |  |  | $ | (356) |  |  | $ | (263) |  |  | $ | (3,636) |
Accumulated fair value adjustments: |  |  |  |  |  |  |  |  |  |
Balance at January 1, 2019 |  | $ | 2,002 |  |  | $ | 810 |  |  | $ | 221 |  |  | $ | — |  |  | $ | 3,033 |
Assets reclassified as held for sale |  | (416) |  |  | — |  |  | — |  |  | — |  |  | (416) |
Fair value adjustments |  | 582 |  |  | 45 |  |  | 92 |  |  | — |  |  | 719 |
Net foreign currency exchange differences |  | 44 |  |  | 2 |  |  | 16 |  |  | — |  |  | 62 |
Non-cash disposals |  | — |  |  | — |  |  | (12) |  |  | — |  |  | (12) |
Balance at December 31, 2019 |  | $ | 2,212 |  |  | $ | 857 |  |  | $ | 317 |  |  | $ | — |  |  | $ | 3,386 |
Fair value adjustments |  | 652 |  |  | 113 |  |  | 21 |  |  | — |  |  | 786 |
Net foreign currency exchange differences |  | 70 |  |  | 78 |  |  | — |  |  | — |  |  | 148 |
Balance at December 31, 2020 |  | $ | 2,934 |  |  | $ | 1,048 |  |  | $ | 338 |  |  | $ | — |  |  | $ | 4,320 |
Net book value: |  |  |  |  |  |  |  |  |  |
December 31, 2020(3) |  | $ | 10,610 |  |  | $ | 8,341 |  |  | $ | 4,303 |  |  | $ | 8,330 |  |  | $ | 31,584 |
December 31, 2019 |  | $ | 9,674 |  |  | $ | 8,216 |  |  | $ | 4,080 |  |  | $ | 1,043 |  |  | $ | 23,013 |
1.Relates to the adoption of IFRS 16 effective January 1, 2019. 2.See Note 6, Acquisition of Businesses, for additional information. 3.Includes right-of-use assets of $159 million (2019: $156 million) in our utilities segment, $1,187 million (2019: $1,329 million) in our transport segment, $113 million (2019: $116 million) in our midstream segment and $2,643 million (2019: $560 million) in our data segment. The partnership’s property, plant, and equipment is measured at fair value on a recurring basis with an effective date of revaluation for all asset classes of December 31, 2020 and 2019. Brookfield Infrastructure determined fair value under the income method or on a depreciated replacement cost basis. Assets under development were revalued where fair value could be reliably measured. The following table summarizes the valuation techniques and significant inputs for Brookfield Infrastructure’s property, plant and equipment assets valued using the income method, categorized by segment.
|  | Dec. 31, 2020 |  | Dec. 31, 2019
Segment |  | Primary Valuation Technique(1) |  | Discount Rate |  | Terminal Value Multiple |  | Investment Horizon |  | Primary Valuation Technique(1) |  | Discount Rate |  | Terminal Value Multiple |  | Investment Horizon
Utilities |  | Discounted cash flow model |  | 7% to 14% |  | 7x to 23x |  | 10 yrs |  | Discounted cash flow model |  | 7% to 14% |  | 8x to 21x |  | 10 to 20 yrs
Transport |  | Discounted cash flow model |  | 7% to 13% |  | 9x to 14x |  | 10 yrs |  | Discounted cash flow model |  | 7% to 13% |  | 9x to 14x |  | 10 to 20 yrs
Midstream |  | Discounted cash flow model |  | 15% |  | 10x |  | 5 to 10 yrs |  | Discounted cash flow model |  | 15% |  | 10x |  | 5 to 10 yrs
(1)Certain businesses are valued using the replacement cost method as a result of their underlying operations. Replacement costs are determined with guidance from independent studies and third party evaluators. An increase in the discount rate would lead to a decrease in the fair value of property, plant and equipment. Conversely, an increase to the terminal value multiple would increase the fair value of property, plant and equipment. Our partnership has classified all property, plant and equipment under level 3 of the fair value hierarchy. At December 31, 2020, Brookfield Infrastructure carried out an assessment of the fair value of its utilities property, plant and equipment, resulting in a gain from revaluation of $652 million (2019: $582 million) which was recognized in revaluation surplus in the Consolidated Statements of Comprehensive Income. Key drivers behind the revaluation gain recorded include growth in underlying cash flows at both of our U.K. regulated distribution business and our North American district energy operations associated with new customer connections and a more robust pipeline of growth opportunities which resulted in an increase in our terminal value assumption to align our values with observable market transactions. At December 31, 2020, Brookfield Infrastructure carried out an assessment of the fair value of its transport property, plant and equipment. A gain from revaluation of $113 million (2019: $45 million) was recognized in revaluation surplus in the Consolidated Statements of Comprehensive Income. Underlying valuation assumptions in the transport segment remain relatively consistent with the prior year with the current year’s gain attributable to increasing cash flows. At December 31, 2020, Brookfield Infrastructure carried out an assessment of the fair value of its midstream property, plant and equipment. A gain from revaluation of $21 million (2019: $92 million) was recognized in revaluation surplus in the Consolidated Statements of Comprehensive Income. Underlying valuation assumptions in the midstream segment remain relatively consistent with the prior year with the current year’s gain attributable to increasing cash flows. At December 31, 2020, Brookfield Infrastructure carried out an assessment of the fair value of its data property, plant and equipment. A gain from revaluation of $nil (2019: $nil) was recognized in revaluation surplus in the Consolidated Statements of Comprehensive Income. The following table summarizes the carrying amount of property, plant and equipment that would have been recognized had assets been carried under the cost model.
US$ MILLIONS |  | Dec. 31, 2020 |  | Dec. 31, 2019
Utilities |  | $ | 8,114 |  |  | $ | 7,776 |
Transport |  | 7,548 |  |  | 7,574 |
Midstream |  | 4,007 |  |  | 3,797 |
Data |  | 8,330 |  |  | 1,043 |

X
- Definition The entire disclosure for property, plant and equipment. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IAS -Number 16 -IssueDate 2020-01-01 -Section Disclosure -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=16&code=ifrs-tx-2020-en-r&doctype=Standard&dita_xref=IAS16_g73-79_TI -URIDate 2020-01-01 + Details
Name: | ifrs-full_DisclosureOfPropertyPlantAndEquipmentExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | ifrs-full_PropertyPlantAndEquipmentAbstract
Namespace Prefix: | ifrs-full_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration