The Partnership has equity interests in Northern Border, Great Lakes and Iroquois. The pipeline systems owned by these entities are regulated by FERC. The pipeline systems of Northern Border and Great Lakes are operated by subsidiaries of TC Energy. The Iroquois pipeline system is operated by Iroquois Pipeline Operating Company, a wholly owned subsidiary of Iroquois. The Partnership uses the equity method of accounting for its interests in its equity investees. The Partnership’s equity investments are held through our ILPs that are considered to be variable interest entities (VIEs) (Refer to Note 16).

Distributions received from equity investments in the three and six months ended June 30, 2019 were $108 million and $167 million, respectively (June 30, 2018 - $56 million and $101 million, respectively), of which $52.6 million and $55.2 million, respectively (June 30, 2018 - $2.6 million and $5.2 million, respectively), were considered return of capital and included in “Investing Activities” in the Partnership’s consolidated statement of cash flows. The return of capital was related to our investment in Northern Border and Iroquois (see further discussion below).

During the three and six months ended June 30, 2019, the Partnership received distributions from Northern Border amounting to $72 million and $100 million, respectively (June 30, 2018 - $17 million and $39 million, respectively) which includes the Partnership’s 50 percent share of the Northern Border’s $100 million distribution on June 26, 2019. The $100 million was 100 percent financed by borrowing on its $200 million revolving credit facility. The $50 million cash the Partnership received did not represent a distribution of operating cash flow during the period and therefore it was reported as a return of investment in the Partnership’s consolidated statement of cash flows.

The Partnership did not have undistributed earnings from Northern Border for the three and six months ended June 30, 2019 and 2018.

The summarized financial information provided to us by Northern Border is as follows:

(a)	No current maturities as of June 30, 2019 and December 31, 2018. At June 30, 2019, Northern Border is in compliance with all its financial covenants.

Great Lakes

The Partnership made an equity contribution to Great Lakes of $5 million in the first quarter of 2019 (June 30, 2018 - $4 million). This amount represents the Partnership’s 46.45 percent share of an $11 million cash call from Great Lakes to make a scheduled debt repayment.

The Partnership did not have undistributed earnings from Great Lakes for the three and six months ended June 30, 2019 and 2018.

The summarized financial information provided to us by Great Lakes is as follows:


(unaudited)
(millions of dollars)	June 30, 2019	December 31, 2018

ASSETS
Current assets	56	75
Property, plant and equipment, net	687	689
	743	764

LIABILITIES AND PARTNERS’ EQUITY
Current liabilities	26	26
Net long-term debt, including current maturities ^(a)	229	240
Other long term liabilities	4	4
Partners' equity	484	494
	743	764


	Three months ended		Six months ended
(unaudited)	June 30,		June 30,
(millions of dollars)	2019	2018	2019	2018

Transmission revenues	51	53	123	134
Operating expenses	(19)	(15)	(35)	(32)
Depreciation	(8)	(8)	(16)	(16)
Financial charges and other	(5)	(5)	(9)	(9)
Net income	19	25	63	77

(a)	Includes current maturities of $21 million as of June 30, 2019 and as of December 31, 2018. At June 30, 2019, Great Lakes is in compliance with all its financial covenants.

Iroquois

During the three and six months ended June 30, 2019, the Partnership received distributions from Iroquois amounting to $14 million and $28 million, respectively (June 30, 2018 - $14 million and $28 million, respectively), which includes the Partnership’s 49.34 percent share of the Iroquois unrestricted cash distribution amounting to approximately $2.6 million and $5.2 million, respectively (June 30, 2018 - $2.6 million and $5.2 million, respectively). The unrestricted cash did not represent a distribution of Iroquois’ cash from operations during the period and therefore it was reported as a return of investment in the Partnership’s consolidated statement of cash flows.

Iroquois declared its second quarter 2019 distribution of $28 million on July 24, 2019, of which the Partnership received its 49.34 percent share or $14 million on August 1, 2019. The distribution includes our 49.34 percent share of the Iroquois unrestricted cash distribution amounting to approximately $2.6 million. The Partnership did not have undistributed earnings from Iroquois for the three and six months ended June 30, 2019 and 2018.

The summarized financial information provided to us by Iroquois is as follows:


(unaudited)
(millions of dollars)	June 30, 2019	December 31, 2018

ASSETS
Cash and cash equivalents	73	80
Other current assets	25	32
Property, plant and equipment, net	573	581
Other assets	14	8
	685	701

LIABILITIES AND PARTNERS’ EQUITY
Current liabilities	15	19
Long-term debt, net ^(a)	319	325
Other non-current liabilities	21	14
Partners' equity	330	343
	685	701


	Three months ended		Six months ended
(unaudited)	June 30,		June 30,
(millions of dollars)	2019	2018	2019	2018

Transmission revenues	40	44	92	105
Operating expenses	(13)	(14)	(28)	(28)
Depreciation	(8)	(7)	(15)	(15)
Financial charges and other	(4)	(4)	(7)	(7)
Net income	15	19	42	55

(a)	Includes current maturities of $4 million as of June 30, 2019 (December 31, 2018 - $146 million). At June 30, 2019, Iroquois is in compliance with all its financial covenants.