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CAPITAL MANAGEMENT
 12 Months Ended
Dec. 31, 2022
Disclosure of Capital Management [Abstract]  
CAPITAL MANAGEMENT CAPITAL MANAGEMENT
Our partnership’s approach to capital management is focused on maximizing returns to unitholders and ensuring capital is deployed in a manner consistent with achieving our investment return objectives.
Invested Capital, which tracks the amount of capital that has been contributed to our partnership, is a measure we utilize to assess returns on capital deployed, relative to targeted returns. Investment decisions are based on, amongst other measures and factors, targeted returns on Invested Capital of 12% to 15% annually over the long-term. We measure return on Invested Capital as Adjusted Funds from Operations (“AFFO”), less estimated returns of capital on operations that are not perpetual in nature, divided by the weighted average Invested Capital for the period.
We define AFFO as FFO less capital expenditures required to maintain the current performance of our operations (maintenance capital expenditures). We define Invested Capital as partnership capital removing the impact of the following items: non-controlling interest - in operating subsidiaries, retained earnings or deficit, accumulated other comprehensive income and ownership changes.
US$ MILLIONS20222021
Partnership Capital$25,554 $26,391 
Remove impact of the following items since inception:
Non-controlling interest - in operating subsidiaries(15,320)(15,658)
Deficit3,422 2,520 
Accumulated other comprehensive income(817)(543)
Ownership changes(558)(515)
Invested Capital$12,281 $12,195 
The following table presents the change in Invested Capital during year ended December 31, 2022 and 2021:
For the year ended December 31,
US$ MILLIONS20222021
Opening balance$12,195 $9,213 
Net (redemption) issuance of preferred units(220)8 
Issuance of perpetual subordinated notes293 — 
Issuance of limited partnership and redeemable partnership units, net of redemptions13 945 
Issuance of BIPC exchangeable shares— 1,770 
Issuance of BIPC exchangeable LP Units— 259 
Ending balance$12,281 $12,195 
Weighted Average Invested Capital(1)
$12,270 $10,076 
(1)     For the purposes of calculating Weighted Average Invested Capital for the year ended December 31, 2022, redemption of preferred units and issuance of perpetual subordinated notes of $220 million and $293 million, respectively, were assumed to have been completed concurrently in January of 2022.