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$ MILLIONSUtilitiesTransportMidstreamDataTotal
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 disposals770 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 differences120 4 87 2 213 
Balance at December 31, 2019$8,633 $8,309 $3,971 $1,131 $22,044 
Additions, net of disposals535 387 306 77 1,305 
Non-cash (disposals) additions15 (241)(29)(26)(281)
Acquisitions through business combinations(2)
— — — 7,334 7,334 
Net foreign currency exchange differences106 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)$— $(1,849)
Depreciation expense(415)(178)(84)(87)(764)
Disposals3 2 — — 5 
Assets reclassified as held for sale194 — — — 194 
Non-cash disposals (additions)50 (27)3 — 26 
Net foreign currency exchange differences(18)(3)(7)(1)(29)
Balance at December 31, 2019$(1,171)$(950)$(208)$(88)$(2,417)
Depreciation expense(419)(498)(141)(189)(1,247)
Disposals12 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 adjustments582 45 92 — 719 
Net foreign currency exchange differences44 2 16 — 62 
Non-cash disposals— — (12)— (12)
Balance at December 31, 2019$2,212 $857 $317 $— $3,386 
Fair value adjustments652 113 21 — 786 
Net foreign currency exchange differences70 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: $nil) was recognized in revaluation surplus in the Consolidated Statements of Comprehensive Income.
The following table summarizes the carrying amount of property, plant and equipment that would have been recognized had assets been carried under the cost model.
US$ MILLIONSDec. 31, 2020Dec. 31, 2019
Utilities$8,114 $7,776 
Transport7,548 7,574 
Midstream4,007 3,797 
Data8,330 1,043