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FINANCIAL RISK MANAGEMENT (Tables)

12 Months Ended

Dec. 31, 2021

The capital structure of our company consists of debt, offset by cash and cash equivalents, exchangeable and class B shares, loans payable to Brookfield Infrastructure and share capital comprised of issued capital and accumulated gains.


US$ MILLIONS	2021			2020
Non-recourse borrowings	$	3,556		$	3,477
Cash and cash equivalents	(469)			(192)
Net debt	3,087			3,285
Exchangeable and class B shares	4,466			2,221
Loans payable to Brookfield Infrastructure	131			1,143
Total equity	(1,424)			(572)
Total capital and net debt	$	6,260		$	6,077
Net debt to capitalization ratio	49		%	54		%

Disclosure of maturity analysis for financial liabilities

The tables include both interest and principal cash flows:


	Less than 1 year		1-2 years		2-5 years		5+ years		Total contractual cash flows
December 31, 2021
US$ MILLIONS
Accounts payable and other liabilities	$	414	$	2	$	—	$	—	$	416
Non-recourse borrowings	—		1,276		271		2,016		3,563
Financial liabilities	995		—		—		—		995
Exchangeable and class B shares	4,466		—		—		—		4,466
Loans payable to Brookfield Infrastructure	131		—		—		—		131
Interest Expense:
Non-recourse borrowings	98		73		195		395		761


	Less than 1 year		1-2 years		2-5 years		5+ years		Total contractual cash flows
December 31, 2020
US$ MILLIONS
Accounts payable and other liabilities	$	240	$	1	$	—	$	—	$	241
Non-recourse borrowings	12		—		1,601		1,873		3,486
Financial liabilities	23		969		39		—		1,031
Exchangeable and class B shares	2,221		—		—		—		2,221
Loans payable to Brookfield Infrastructure	—		—		61		1,082		1,143
Interest Expense:
Non-recourse borrowings	84		77		191		424		776
Loans payable to Brookfield Infrastructure	52		52		155		217		476

Disclosure of sensitivity analysis for interest rate and foreign exchange risk

Such parallel shift in the yield curve by 10 basis points would have had the following impact, assuming all other variables were held constant:


	December 31,
	2021				2020				2019
US$ MILLIONS	10 bp decrease		10 bp increase		10 bp decrease		10 bp increase		10 bp decrease		10 bp increase
Net income (loss)	$	1	$	(1)	$	1	$	(1)	$	1	$	(1)
Other comprehensive income	—		—		—		—		—		—

The following tables detail our company’s sensitivity to a 10% increase and decrease in the U.S. dollar against the relevant foreign currencies, with all other variables held constant as at reporting date. 10% is the sensitivity rate used when reporting foreign currency risk internally. The sensitivity analysis is performed as follows:

•Outstanding foreign currency denominated monetary items (excluding foreign exchange derivative contracts) are adjusted at period end for a 10% change in foreign currency rates from the rate at which they are translated;

•Foreign currency derivative contracts are measured as the change in fair value of the derivative as a result of a 10% change in the spot currency rate; and

•The impact on net income results from performing a sensitivity of a 10% change in foreign exchange rates applied to the profit or loss contribution from foreign operations (after considering the impact of foreign exchange derivative contracts).


	Impact on Net Income
	2021		2020		2019
US$ MILLIONS	-10%	10%	-10%	10%	-10%	10%
USD/GBP	(6)	6	(5)	5	10	(10)
USD/BRL	(15)	15	(12)	12	13	(13)


	Impact on Parent Equity
	2021		2020		2019
US$ MILLIONS	-10%	10%	-10%	10%	-10%	10%
USD/GBP	(130)	130	(150)	150	131	(131)
USD/BRL	(9)	9	(14)	14	34	(34)

Disclosure of foreign currency exposure

The tables below set out our company’s currency exposure at December 31, 2021, 2020 and 2019:


2021
US$ MILLIONS	GBP		BRL		Total
Assets:
Current assets	$	249	$	668	$	917
Non-current assets	4,961		3,115		8,076
	$	5,210	$	3,783	$	8,993
Liabilities:
Current liabilities	$	316	$	1,278	$	1,594
Non-current liabilities	3,285		2,028		5,313
	$	3,601	$	3,306	$	6,907
Non-controlling interest	314		389		703
Net investment attributable to Brookfield Infrastructure	$	1,295	$	88	$	1,383


2020
US$ MILLIONS	GBP		BRL		Total
Assets:
Current assets	$	181	$	405	$	586
Non-current assets	5,264		3,494		8,758
	$	5,445	$	3,899	$	9,344
Liabilities:
Current liabilities	$	333	$	203	$	536
Non-current liabilities	3,241		2,772		6,013
	$	3,574	$	2,975	$	6,549
Non-controlling interest	367		783		1,150
Net investment attributable to Brookfield Infrastructure	$	1,504	$	141	$	1,645


2019
US$ MILLIONS	GBP		BRL		Total
Assets:
Current assets	$	159	$	435	$	594
Non-current assets	4,653		4,606		9,259
	$	4,812	$	5,041	$	9,853
Liabilities:
Current liabilities	$	294	$	199	$	493
Non-current liabilities	2,888		3,195		6,083
	$	3,182	$	3,394	$	6,576
Non-controlling interest	318		1,305		1,623
Net investment attributable to Brookfield Infrastructure	$	1,312	$	342	$	1,654