INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2022

Intangible Assets [Abstract]

INTANGIBLE ASSETS

INTANGIBLE ASSETS

	As of
US$ MILLIONS	Dec. 31, 2022		Dec. 31, 2021
Cost	$	3,629	$	3,332
Accumulated amortization	(782)		(645)
Total	$	2,847	$	2,687

Intangible assets are allocated to the following cash generating units:

	As of
US$ MILLIONS	Dec. 31, 2022		Dec. 31, 2021
Brazilian regulated gas transmission operation	$	2,816	$	2,645
U.K. regulated distribution operation	31		42
Total	$	2,847	$	2,687

Our company’s intangible assets are primarily related to concession arrangements with the local energy regulator, Agência Nacional do Petróleo, Gás Natural e Biocombustíveis (“ANP”), at our Brazilian regulated gas transmission operation. Total capacity is fully contracted under long-term “ship-or-pay” gas transportation agreements (“GTA”) and therefore the business is exposed to no volume or price risk. Each GTA takes into account a return on regulatory asset base (“RAB”), and the tariffs are calculated on an inflation adjusted regulatory weighted average cost of capital (“WACC”) fixed for the life of GTAs. On April 8, 2021, new legislation was passed in Brazil which provides our Brazilian regulated gas transmission operation the right to operate the gas pipelines perpetually. Prior to the change in legislation, these intangible assets were amortized over the life of the concession. As a result of the new legislation and the right to operate the pipelines perpetually, the intangible assets are now amortized over the estimated useful life of the underlying infrastructure.

The intangible assets at our U.K. regulated distribution operation relate to customer order backlogs, which represents the present value of future earnings derived from the build out of contracted connections at the acquisition date of the U.K. regulated distribution operation.

Our intangible assets are evaluated for impairment annually or more often if events or circumstances indicate there may be impairment. Despite recent volatility observed in commodity and foreign exchange markets and the interruption to global supply chains, our intangible assets remain largely unaffected, with no impairment required during the year ended December 31, 2022. Our intangible assets represent long-term critical infrastructure supported by regulated or highly contracted revenues which help protect value over the long term.

The following table presents the change in the cost balance of intangible assets:

	For the year ended
US$ MILLIONS	Dec. 31, 2022		Dec. 31, 2021
Cost at beginning of the year	$	3,332	$	3,527
Additions, net of disposals	81		38
Non cash additions	—		5
Foreign currency translation	216		(238)
Cost at end of year	$	3,629	$	3,332

The following table presents the accumulated amortization for our company’s intangible assets:

	For the year ended
US$ MILLIONS	Dec. 31, 2022		Dec. 31, 2021
Accumulated amortization at beginning of year	$	(645)	$	(579)
Amortization	(101)		(108)
Foreign currency translation	(36)		42
Accumulated amortization at end of year	$	(782)	$	(645)