XML 44 R20.htm IDEA: XBRL DOCUMENT v3.24.1
PROPERTY, PLANT AND EQUIPMENT
 12 Months Ended
Dec. 31, 2023
Property, plant and equipment [abstract]  
PROPERTY, PLANT AND EQUIPMENT PROPERTY, PLANT AND EQUIPMENT
US$ MILLIONSUtilitiesTransportMidstreamDataTotal
Gross Carrying Amount:    
Balance as at December 31, 2021$7,565 $8,998 $14,862 $8,324 $39,749 
Additions, net of disposals500 561 797 575 2,433 
Non-cash additions (disposals)(1)
(154)126 (17)(12)(57)
Acquisitions through business combinations(2)
109 — — 52 161 
Assets reclassified as held for sale— (8)— — (8)
Net foreign currency exchange differences(743)(340)(963)(754)(2,800)
Balance at December 31, 2022$7,277 $9,337 $14,679 $8,185 $39,478 
Additions, net of disposals519 591 459 226 1,795 
Acquisitions through business combinations(2)
118 8,811 — 35 8,964 
Assets held by subsidiaries disposed during the period— (59)(45)— (104)
Non-cash additions, net of disposals 28 74 (7)692 787 
Net foreign currency exchange differences321 126 319 (52)714 
Balance at December 31, 2023$8,263 $18,880 $15,405 $9,086 $51,634 
Accumulated depreciation:    
Balance as at December 31, 2021$(1,272)$(1,668)$(622)$(629)$(4,191)
Depreciation expense(327)(468)(418)(384)(1,597)
Disposals22 5 — — 27 
Assets reclassified as held for sale— 4 — — 4 
Non-cash disposals— — 11 41 52 
Net foreign currency exchange differences123 87 47 52 309 
Balance at December 31, 2022$(1,454)$(2,040)$(982)$(920)$(5,396)
Depreciation expense(392)(601)(557)(419)(1,969)
Disposals53 20 — — 73 
Assets held by subsidiaries disposed during the period— 17 — — 17 
Non-cash disposals19 45 30 90 184 
Net foreign currency exchange differences(60)(45)(29)2 (132)
Balance at December 31, 2023$(1,834)$(2,604)$(1,538)$(1,247)$(7,223)
US$ MILLIONSUtilitiesTransportMidstreamDataTotal
Accumulated fair value adjustments:    
Balance as at December 31, 2021$1,643 $1,046 $408 $— $3,097 
Fair value adjustments175 75 118 — 368 
Net foreign currency exchange differences(179)(73)(4)— (256)
Balance at December 31, 2022$1,639 $1,048 $522 $— $3,209 
Fair value adjustments143 330 312 — 785 
Net foreign currency exchange differences125 17 (1)— 141 
Balance at December 31, 2023$1,907 $1,395 $833 $— $4,135 
Net book value:    
December 31, 2023(3)
$8,336 $17,671 $14,700 $7,839 $48,546 
December 31, 2022$7,462 $8,345 $14,219 $7,265 $37,291 
(1)Non-cash additions (disposals) within the data segment primarily relates to revisions to the purchase price allocation at our telecom tower operation in India.
(2)See Note 6, Acquisition of Businesses, for additional information.
(3)Includes right-of-use assets of $237 million (2022: $126 million) in our utilities segment, $1,044 million (2022: $1,014 million) in our transport segment, $329 million (2022: $345 million) in our midstream segment and $1,938 million (2022: $1,973 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, 2023 and 2022. 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 the valuation of property, plant and equipment using the income method, categorized by segment.
  Dec. 31, 2023 Dec. 31, 2022
Segment 
Valuation Technique(1)
 Discount Rate Terminal Value Multiple Investment Horizon 
Valuation Technique(1)
 Discount Rate Terminal Value Multiple Investment Horizon
Utilities Discounted cash flow model 
8% to 11%
 
15x
 
10 to 20 yrs
 Discounted cash flow model 
7% to 11%
 
18x
 
10 to 20 yrs
Transport Discounted cash flow model 
9%
 
8x to 20x
 
10 yrs
 Discounted cash flow model 
8% to 14%
 
9x to 15x
 
10 yrs
Midstream Discounted cash flow model 
15%
 
10x
 
6 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, 2023, Brookfield Infrastructure carried out an assessment of the fair value of its utilities property, plant and equipment, resulting in a gain from revaluation of $143 million (2022: $175 million) which was recognized in revaluation surplus in the Consolidated Statements of Comprehensive Income. The key driver behind the revaluation gain recorded was growth in underlying cash flows at our U.K. regulated distribution business, as a result of additional connections and inflationary increases in rates.
At December 31, 2023, Brookfield Infrastructure carried out an assessment of the fair value of its transport property, plant and equipment. A gain from revaluation of $330 million (2022: $75 million) was recognized in revaluation surplus in the Consolidated Statements of Comprehensive Income. Stronger volumes and higher tariffs were the main contributors to the gain.
At December 31, 2023, Brookfield Infrastructure carried out an assessment of the fair value of its midstream property, plant and equipment. A gain from revaluation of $312 million (2022: $118 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 favorable market conditions and organic growth.
At December 31, 2023, Brookfield Infrastructure carried out an assessment of the fair value of its data property, plant and equipment, which are measured using replacement cost approach. No revaluation gains were recognized in revaluation surplus in the Consolidated Statements of Comprehensive Income (2022: $nil).
The following table summarizes the carrying amount of property, plant and equipment that would have been recognized had assets been carried under the cost model, inclusive of purchase price allocations.
US$ MILLIONSDec. 31, 2023Dec. 31, 2022
Utilities$6,706 $6,048 
Transport16,596 7,510 
Midstream13,993 13,778 
Data7,840 7,266