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CAPITAL MANAGEMENT
 6 Months Ended
Jun. 30, 2023
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.
As of
US$ MILLIONSJune 30, 2023December 31, 2022
Partnership Capital$28,623 $25,554 
Remove impact of the following items since inception:
Non-controlling interest - in operating subsidiaries(18,640)(15,320)
Deficit3,746 3,422 
Accumulated other comprehensive income(880)(817)
Ownership changes and other(560)(558)
Invested Capital$12,289 $12,281 
The following table presents the change in Invested Capital during the three and six-month periods ended June 30, 2023 and 2022:
For the three-month
period ended June 30		For the six-month
period ended June 30
US$ MILLIONS2023202220232022
Opening balance$12,287 $12,272 $12,281 $12,195 
Net redemption of preferred units— — — (220)
Issuance of perpetual subordinated notes— — — 293 
Issuance of limited partnership units 2 4 8 8 
Ending balance$12,289 $12,276 $12,289 $12,276 
Weighted Average Invested Capital(1)
$12,287 $12,272 $12,284 $12,262 
1.For the purposes of calculating Weighted Average Invested Capital for the six-month period ended June 30, 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