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FINANCIAL RISK MANAGEMENT (Tables)

12 Months Ended

Dec. 31, 2023

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	2023			2022
Non-recourse borrowings	$	12,028		$	4,577
Cash and cash equivalents	(539)			(445)
Net debt	11,489			4,132
Exchangeable and class B shares	4,153			3,426
Loans payable to Brookfield Infrastructure	26			26
Total equity	4,068			(361)
Total capital and net debt	$	19,736		$	7,223
Net debt to capitalization ratio	58		%	57		%

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, 2023
US$ MILLIONS
Accounts payable and other liabilities	$	821	$	5	$	4	$	7	$	837
Non-recourse borrowings	1,203		917		5,338		5,346		12,804
Financial liabilities	60		1		13		1		75
Exchangeable and class B shares	4,153		—		—		—		4,153
Loans payable to Brookfield Infrastructure	26		—		—		—		26
Interest Expense:
Non-recourse borrowings	662		588		1,214		988		3,452


	Less than 1 year		1-2 years		2-5 years		5+ years		Total contractual cash flows
December 31, 2022
US$ MILLIONS
Accounts payable and other liabilities	$	586	$	2	$	1	$	—	$	589
Non-recourse borrowings	330		178		1,231		2,856		4,595
Financial liabilities	72		—		—		—		72
Exchangeable and class B shares	3,426		—		—		—		3,426
Loans payable to Brookfield Infrastructure	26		—		—		—		26
Interest Expense:
Non-recourse borrowings	133		67		179		333		712

Disclosure of sensitivity analysis for interest rate and foreign exchange risk

Such parallel shift in the yield curve by 50 basis points would have had the following impact, assuming all other variables were held constant:



	2023
US$ MILLIONS	50 bp decrease		50 bp increase
Net income (loss) to the partnership(1)	$	4	$	(4)
Other comprehensive income to the partnership(1)	—		—

(1)Net income and other comprehensive income is attributable to the partnership prior to the special distribution as well as subsequently as a result of the partnership holding all of the class C shares issued by our company. Please refer to Note 3(b), Material Accounting Policy Information, for further details.

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 to the Partnership
	2023				2022				2021
US$ MILLIONS	-10%		10%		-10%		10%		-10%		10%
USD/GBP	$	(8)	$	8	$	(8)	$	8	$	(6)	$	6
USD/BRL	(20)		20		(23)		23		(15)		15
USD/AUD	2		(2)		(1)		1		—		—


	Impact on Parent Equity
	2023				2022				2021
US$ MILLIONS	-10%		10%		-10%		10%		-10%		10%
USD/GBP	$	(142)	$	142	$	(123)	$	123	$	(130)	$	130
USD/BRL	(15)		15		(12)		12		(9)		9
USD/EUR	(1)		1		—		—		—		—
USD/AUD	—		—		(43)		43		—		—

Disclosure of foreign currency exposure

The tables below set out our company’s currency exposure at December 31, 2023, 2022 and 2021:


2023
US$ MILLIONS	USD		GBP		BRL		EUR & Others		Total
Assets:
Current assets	$	419	$	318	$	747	$	10	$	1,494
Non-current assets	11,947		5,580		3,576		2		21,105
	$	12,366	$	5,898	$	4,323	$	12	$	22,599
Liabilities:
Current liabilities	$	982	$	387	$	549	$	2	$	1,920
Non-current liabilities	6,639		3,744		3,099		—		13,482
	$	7,621	$	4,131	$	3,648	$	2	$	15,402
Non-controlling interest	3,586		348		526		7		4,467
Net investment attributable to Brookfield Infrastructure	$	1,159	$	1,419	$	149	$	3	$	2,730


2022
US$ MILLIONS	GBP		BRL		AUD		Total
Assets:
Current assets	$	264	$	737	$	—	$	1,001
Non-current assets	4,821		3,362		428		8,611
	$	5,085	$	4,099	$	428	$	9,612
Liabilities:
Current liabilities	$	690	$	486	$	—	$	1,176
Non-current liabilities	2,864		3,034		—		5,898
	$	3,554	$	3,520	$	—	$	7,074
Non-controlling interest	298		460		—		758
Net investment attributable to Brookfield Infrastructure	$	1,233	$	119	$	428	$	1,780


2021
US$ MILLIONS	GBP		BRL		AUD		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