Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |
Entity Registrant Name | Brookfield Business Partners L.P. |
Entity Central Index Key | 1,654,795 |
Current Fiscal Year End Date | --12-31 |
Document Type | 6-K |
Document Period End Date | Jun. 30, 2018 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
UNAUDITED INTERIM CONDENSED CON
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Assets | ||||
Cash and cash equivalents | $ 1,873 | $ 1,106 | $ 1,045 | $ 1,050 |
Financial assets | 484 | 361 | ||
Accounts and other receivable, net | 3,676 | 3,454 | ||
Inventory, net | 1,254 | 1,068 | ||
Assets held for sale | 96 | 14 | ||
Other assets | 445 | 430 | ||
Current assets | 7,828 | 6,433 | ||
Financial assets | 462 | 423 | ||
Accounts and other receivable, net | 778 | 908 | ||
Other assets | 73 | 79 | ||
Property, plant and equipment | 2,575 | 2,530 | ||
Deferred income tax assets | 256 | 174 | ||
Intangible assets | 2,909 | 3,094 | ||
Equity accounted investments | 483 | 609 | 166 | |
Goodwill | 1,677 | 1,554 | ||
Total assets | 17,041 | 15,804 | ||
Liabilities | ||||
Accounts payable and other | 5,454 | 4,865 | ||
Liabilities associated with assets held for sale | 15 | 0 | ||
Borrowings | 606 | 825 | ||
Current liabilities | 6,075 | 5,690 | ||
Accounts payable and other | 731 | 773 | ||
Borrowings | 4,473 | 2,440 | ||
Deferred income tax liabilities | 807 | 837 | ||
Total liabilities | 12,086 | 9,740 | ||
Equity | ||||
Limited partners | 1,477 | 1,585 | ||
Non-controlling interests attributable to: | ||||
Redemption-Exchange Units, Preferred Shares and Special Limited Partnership Units held by Brookfield Asset Management Inc. | 1,348 | 1,453 | ||
Interest of others in operating subsidiaries | 2,130 | 3,026 | ||
Total equity | 4,955 | 6,064 | $ 5,314 | $ 4,038 |
Total liabilities and equity | $ 17,041 | $ 15,804 |
UNAUDITED INTERIM CONDENSED CO3
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATING RESULTS - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Profit or loss [abstract] | ||||
Revenues | $ 8,775 | $ 4,870 | $ 16,969 | $ 6,804 |
Direct operating costs | (8,200) | (4,673) | (15,849) | (6,547) |
General and administrative expenses | (142) | (76) | (260) | (138) |
Depreciation and amortization expense | (105) | (88) | (211) | (153) |
Interest expense | (83) | (50) | (169) | (69) |
Equity accounted income (loss), net | (7) | 14 | 10 | 24 |
Impairment expense, net | 0 | (23) | 0 | (30) |
Gain on acquisitions/dispositions, net | 90 | 9 | 106 | 281 |
Other income (expenses), net | (7) | (9) | (21) | 5 |
Income (loss) before income tax | 321 | (26) | 575 | 177 |
Income tax (expense) recovery | ||||
Current | (52) | (4) | (80) | 0 |
Deferred | 39 | 4 | 29 | 0 |
Net income (loss) | 308 | (26) | 524 | 177 |
Attributable to: | ||||
Limited partners | 40 | (3) | 5 | 29 |
Non-controlling interests attributable to: | ||||
Redemption-Exchange Units held by Brookfield Asset Management Inc. | 38 | (3) | 4 | 31 |
Special Limited Partners | 41 | 0 | 184 | 0 |
Interest of others in operating subsidiaries | 189 | (20) | 331 | 117 |
Net income (loss) | $ 308 | $ (26) | $ 524 | $ 177 |
Basic and diluted earnings per limited partner unit (in usd per share) | $ 0.60 | $ (0.06) | $ 0.07 | $ 0.55 |
UNAUDITED INTERIM CONDENSED CO4
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of comprehensive income [abstract] | ||||
Net income (loss) | $ 308 | $ (26) | $ 524 | $ 177 |
Items that may be reclassified subsequently to profit or loss: | ||||
Foreign currency translation | (280) | (25) | (323) | 27 |
Available-for-sale securities | 0 | 22 | 0 | (5) |
Net investment and cash flow hedges | 57 | (13) | 80 | (27) |
Equity accounted investment | (1) | (1) | (3) | (1) |
Taxes on the above items | 1 | (1) | (4) | 2 |
Total other comprehensive income (loss) | (223) | (18) | (250) | (4) |
Items that will not be reclassified subsequently to profit or loss: | ||||
Fair value through OCI | 32 | 0 | 56 | 0 |
Taxes on the above item | 0 | 0 | (1) | 0 |
Total other comprehensive income (loss) | (191) | (18) | (195) | (4) |
Comprehensive income (loss) | 117 | (44) | 329 | 173 |
Attributable to: | ||||
Limited partners | 17 | (2) | (26) | 37 |
Non-controlling interests attributable to: | ||||
Redemption-Exchange Units held by Brookfield Asset Management Inc. | 15 | (2) | (26) | 40 |
Special Limited Partners | 41 | 0 | 184 | 0 |
Interest of others in operating subsidiaries | 44 | (40) | 197 | 96 |
Comprehensive income (loss) | $ 117 | $ (44) | $ 329 | $ 173 |
UNAUDITED INTERIM CONDENSED CO5
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions | Total | Limited Partners | Redemption-Exchange Units held by Brookfield Asset Management Inc. | CapitalLimited Partners | CapitalRedemption-Exchange Units held by Brookfield Asset Management Inc. | Retained earningsLimited Partners | Retained earningsRedemption-Exchange Units held by Brookfield Asset Management Inc. | Retained earningsSpecial Limited Partners | Ownership changeLimited Partners | [2] | Ownership changeRedemption-Exchange Units held by Brookfield Asset Management Inc. | [2] | Accumulated other comprehensive income (loss)Limited Partners | Accumulated other comprehensive income (loss)Redemption-Exchange Units held by Brookfield Asset Management Inc. | [1] | Capital | Interest of others in operating subsidiaries | IFRS 15 | IFRS 15Limited Partners | IFRS 15Redemption-Exchange Units held by Brookfield Asset Management Inc. | IFRS 15CapitalLimited Partners | IFRS 15CapitalRedemption-Exchange Units held by Brookfield Asset Management Inc. | IFRS 15Retained earningsLimited Partners | IFRS 15Retained earningsRedemption-Exchange Units held by Brookfield Asset Management Inc. | IFRS 15Accumulated other comprehensive income (loss)Limited Partners | [1] | IFRS 15Accumulated other comprehensive income (loss)Redemption-Exchange Units held by Brookfield Asset Management Inc. | [1] | IFRS 15Capital | IFRS 15Interest of others in operating subsidiaries | ||||||||
Beginning balance at Dec. 31, 2016 | $ 4,038 | $ 1,206 | $ 1,280 | $ 1,345 | $ 1,474 | $ 2 | $ 3 | $ (141) | [1] | $ (197) | $ 15 | $ 1,537 | ||||||||||||||||||||||||||
Net income (loss) | 177 | 29 | 31 | 29 | 31 | 117 | ||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | (4) | 8 | 9 | 8 | [1] | 9 | (21) | |||||||||||||||||||||||||||||||
Comprehensive income (loss) | 173 | 37 | 40 | 29 | 31 | 8 | [1] | 9 | 96 | |||||||||||||||||||||||||||||
Contributions | 4 | 4 | ||||||||||||||||||||||||||||||||||||
Distributions | (321) | (7) | (7) | (7) | (7) | (307) | ||||||||||||||||||||||||||||||||
Ownership change | 0 | 8 | ||||||||||||||||||||||||||||||||||||
Acquisition of interest | 1,424 | 1,424 | ||||||||||||||||||||||||||||||||||||
Other | (4) | (2) | (2) | (2) | (2) | |||||||||||||||||||||||||||||||||
Ending balance at Jun. 30, 2017 | 5,314 | 1,234 | 1,311 | 1,345 | 1,474 | 22 | 25 | $ 0 | $ 0 | $ 0 | (133) | [1] | (188) | 15 | 2,754 | |||||||||||||||||||||||
Beginning balance (Increase (decrease) due to application of IFRS 15) at Dec. 31, 2017 | [3] | (265) | (132) | (128) | (132) | (128) | (5) | |||||||||||||||||||||||||||||||
Beginning balance at Dec. 31, 2017 | 6,064 | 1,585 | 1,438 | 1,766 | 1,674 | (69) | (71) | 0 | 0 | 0 | (112) | [1] | (165) | 15 | 3,026 | $ 5,799 | $ 1,453 | $ 1,310 | $ 1,766 | $ 1,674 | $ (201) | $ (199) | $ (112) | $ (165) | $ 15 | $ 3,021 | ||||||||||||
Net income (loss) | 524 | 5 | 4 | 5 | 4 | 184 | 331 | |||||||||||||||||||||||||||||||
Other comprehensive income (loss) | (195) | (31) | (30) | (31) | [1] | (30) | (134) | |||||||||||||||||||||||||||||||
Comprehensive income (loss) | 329 | (26) | (26) | 5 | 4 | 184 | (31) | [1] | (30) | 197 | ||||||||||||||||||||||||||||
Contributions | 6 | 6 | ||||||||||||||||||||||||||||||||||||
Distributions | (1,858) | [4] | (8) | [4] | (8) | [4] | (8) | (8) | [4] | (184) | [4] | (1,658) | [4] | |||||||||||||||||||||||||
Ownership change | 506 | [2] | 58 | [2] | 57 | [2] | (25) | (24) | 83 | 81 | (31) | 391 | [2] | |||||||||||||||||||||||||
Acquisition of interest | [5] | 173 | 173 | |||||||||||||||||||||||||||||||||||
Ending balance at Jun. 30, 2018 | $ 4,955 | $ 1,477 | $ 1,333 | $ 1,766 | $ 1,674 | $ (229) | $ (227) | $ 0 | $ 83 | $ 81 | $ (143) | [1] | $ (195) | $ 15 | $ 2,130 | |||||||||||||||||||||||
[1] | See Note 17 for additional information. | |||||||||||||||||||||||||||||||||||||
[2] | Includes gains or losses on changes in ownership interests of consolidated subsidiaries. | |||||||||||||||||||||||||||||||||||||
[3] | See Note 2(c) for additional information on adoption of new accounting standards. | |||||||||||||||||||||||||||||||||||||
[4] | See Note 16 for additional information on distributions as it relates to the Special Limited Partners. | |||||||||||||||||||||||||||||||||||||
[5] | See Note 3 Acquisition of businesses for additional information. |
UNAUDITED INTERIM CONDENSED CO6
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Operating Activities | ||
Net income (loss) | $ 524 | $ 177 |
Adjusted for the following items: | ||
Share of undistributed equity accounted earnings | 13 | (24) |
Impairment expense, net | 0 | 30 |
Depreciation and amortization expense | 211 | 153 |
Gain on acquisitions/dispositions, net | (106) | (281) |
Provisions and other items | 92 | (9) |
Deferred income tax expense (recovery) | (29) | 0 |
Changes in non-cash working capital, net | (514) | (370) |
Cash from operating activities | 191 | (324) |
Financing Activities | ||
Proceeds from borrowings | 2,862 | 725 |
Repayment of borrowings | (1,113) | (426) |
Proceeds from other credit facilities, net | 270 | 358 |
Capital provided by others who have interests in operating subsidiaries | 690 | 694 |
Distributions to limited partners and Redemption-Exchange Unitholders | (16) | (14) |
Distributions to Special Limited Partners Unitholders | (191) | 0 |
Distributions to others who have interests in operating subsidiaries | (1,607) | (307) |
Cash from (used in) financing activities | 895 | 1,030 |
Acquisitions | ||
Subsidiaries, net of cash acquired | (216) | (1,117) |
Property, plant and equipment and intangible assets | (156) | (90) |
Equity accounted investments | (8) | 0 |
Financial assets | (71) | (89) |
Dispositions | ||
Subsidiaries, net of cash disposed | 0 | 358 |
Property, plant and equipment | 55 | 12 |
Equity accounted investments | 131 | 13 |
Financial assets | 1 | 200 |
Net settlement of foreign exchange hedges | (3) | |
Net settlement of foreign exchange hedges | 4 | |
Restricted cash and deposits | (18) | 6 |
Cash from (used in) investing activities | (278) | (710) |
Cash | ||
Change during the period | 808 | (4) |
Impact of foreign exchange on cash | (41) | (1) |
Balance, beginning of year | 1,106 | 1,050 |
Balance, end of period | $ 1,873 | $ 1,045 |
NATURE AND DESCRIPTION OF THE P
NATURE AND DESCRIPTION OF THE PARTNERSHIP | 6 Months Ended |
Jun. 30, 2018 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
NATURE AND DESCRIPTION OF THE PARTNERSHIP | NATURE AND DESCRIPTION OF THE PARTNERSHIP Brookfield Business Partners L.P. and its subsidiaries, (collectively, "the partnership") own and operate business services and industrial operations ("the Business") on a global basis. Brookfield Business Partners L.P. was registered as a limited partnership established under the laws of Bermuda, and organized pursuant to a limited partnership agreement as amended on May 31, 2016, and as further amended on June 17, 2016. Brookfield Business Partners L.P. is a subsidiary of Brookfield Asset Management Inc. ("Brookfield Asset Management" or "Brookfield" or the "parent company"). Brookfield Business Partners L.P.'s limited partnership units are listed on the New York Stock Exchange and the Toronto Stock Exchange under the symbols "BBU" and "BBU.UN", respectively. The registered head office of Brookfield Business Partners L.P. is 73 Front Street, 5th Floor, Hamilton HM 12, Bermuda. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2018 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES (a) Basis of presentation These unaudited interim condensed consolidated financial statements of the partnership have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting , or IAS 34, as issued by the International Accounting Standards Board, or the IASB, and using the accounting policies the partnership applied in its annual consolidated financial statements as at and for the year ended December 31, 2017 , except for the impact of the adoption of the accounting standards described below. The accounting policies the partnership applied in its annual consolidated financial statements as at and for the year ended December 31, 2017 are disclosed in Note 2 of such consolidated financial statements, with which reference should be made in reading these unaudited interim condensed consolidated financial statements. All defined terms are also described in the annual consolidated financial statements. The unaudited interim condensed consolidated financial statements are prepared on a going concern basis and have been presented in U.S. dollars rounded to the nearest million unless otherwise indicated. The preparation of financial statements in accordance with IAS 34 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the accounting policies. The critical accounting estimates and judgments have been set out in Note 2 to the partnership's consolidated financial statements as at and for the year ended December 31, 2017 . There have been no significant changes to the method of determining significant estimates and judgments since December 31, 2017 , other than changes required as a result of adopting new standards as discussed below. These unaudited interim condensed consolidated financial statements were approved by the partnership's Board of Directors and authorized for issue on August 2, 2018. Revision of comparatives The comparative cash flow figures for the six month period ended June 30, 2017, have been revised for the correction of an immaterial error identified by management related to the reclassification of cash flows from bank overdrafts, from an acquisition completed in May 2017 in our business services segment, within the unaudited interim condensed consolidated statements of cash flow. As a result, $358 million (nine month period ended September 30, 2017: $339 million ; year ended December 31, 2017: $360 million ; and three month period ended March 31, 2018: $177 million ), which was previously reported in accounts payable and other within the operating activities line item entitled changes in non-cash working capital, net, is now being reported within the financing activities line item entitled proceeds from credit facilities, net. The 2017 comparative figures in the supplemental cash flow information within Note 20 have also been updated to remove the bank overdraft which was previously recorded within accounts payable and other. The correction of the classification in the statement of cash flow is immaterial and had no impact on the partnership’s historical unaudited interim condensed statements of financial position, statements of operating results, statements of comprehensive income, and statements of changes in equity. (b) New accounting policies adopted The partnership has applied new and revised standards issued by the IASB that are effective for the period beginning on or after January 1, 2018. Revenue from Contracts with Customers IFRS 15, Revenue from Contracts with Customers ("IFRS 15") specifies how and when revenue should be recognized as well as requiring additional disclosures. IFRS 15 requires disclosure regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. IFRS 15 supersedes IAS 18, Revenue , IAS 11, Construction Contracts and a number of revenue-related interpretations. IFRS 15 applies to nearly all contracts with customers: the main exceptions are leases, financial instruments and insurance contracts. The partnership adopted the standard using the modified retrospective approach, in which a cumulative catch-up adjustment is recorded through opening retained earnings on January 1, 2018 as if the standard had always been in effect and whereby comparative periods are not restated. The partnership elected to use the practical expedient for contract modifications. On adoption, the partnership recorded a reduction in opening retained earnings of approximatively $260 million, attributable to the partnership net of taxes, mainly from our construction services business. Under IFRS 15, revenue from the partnership’s construction services contracts will continue to be recognized over time; however, a higher threshold of probability must be achieved prior to recognizing revenue from variable consideration such as incentives and claims and variations resulting from contract modifications. Under IAS 18 and IAS 11, revenue was recognized when it is probable that work performed will result in revenue whereas under IFRS 15, revenue is recognized when it is highly probable that a significant reversal of revenue will not occur for these modifications. Refer to Note 2(c) for impact on adoption of IFRS 15. (i) Financial Instruments In July 2014, the IASB issued the final publication of IFRS 9, Financial Instruments ("IFRS 9") superseding the current IAS 39, Financial Instruments: Recognition and Measurement . IFRS 9 establishes principles for the financial reporting of financial assets and financial liabilities that will present relevant and useful information to users of financial statements for their assessment of the amounts, timing and uncertainty of an entity's future cash flows. This new standard also includes a new general hedge accounting standard which will align hedge accounting more closely with an entity's risk management activities. It does not fully change the types of hedging relationships or the requirement to measure and recognize ineffectiveness, however, it will provide more hedging strategies that are used for risk management to qualify for hedge accounting and introduce greater judgment to assess the effectiveness of a hedging relationship. The partnership adopted the standard using the retrospective approach without restatement, in which a cumulative catch-up adjustment is recorded through opening retained earnings on January 1, 2018 as if the standard had always been in effect and whereby comparative periods are not restated. On adoption, the partnership recorded an adjustment in opening retained earnings of $nil attributable to the partnership net of taxes. Refer to Note 2(e) for impact on adoption of IFRS 9. (ii) Foreign Currency Transactions and Advance Consideration In December 2016, the IASB issued IFRIC 22, Foreign Currency Transactions and Advance Consideration ("IFRIC 22"), effective for annual reporting periods beginning on or after January 1, 2018. The interpretation clarifies that the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income (or part of it) is the date on which an entity initially recognizes the non-monetary asset or non-monetary liability arising from the payment or receipt of advance consideration. The interpretation may be applied either retrospectively or prospectively. The adoption of IFRIC 22 did not have a significant impact on the unaudited interim condensed consolidated financial statements. (c) Impact on adoption of new IFRS standards On adoption of IFRS 15, we recorded a total reduction in opening retained earnings of $260 million , attributable to the partnership net of taxes, mainly associated with our construction services business. The partnership also recorded the associated reduction of $125 million in accounts and other receivable, net, and an increase of $121 million in accounts payable and other. (US$ MILLIONS) Opening balance January 1, 2018 Adoption of new accounting standards Revised opening balance January 1, 2018 Assets Cash and cash equivalents $ 1,106 $ — $ 1,106 Financial assets 361 — 361 Accounts and other receivable, net 3,454 (98 ) 3,356 Inventory, net 1,068 4 1,072 Assets held for sale 14 — 14 Other assets 430 (60 ) 370 Current assets 6,433 (154 ) 6,279 Financial assets 423 — 423 Accounts and other receivable, net 908 (27 ) 881 Other assets 79 1 80 Property, plant and equipment 2,530 — 2,530 Deferred income tax assets 174 42 216 Intangible assets 3,094 — 3,094 Equity accounted investments 609 (6 ) 603 Goodwill 1,554 — 1,554 Total assets $ 15,804 $ (144 ) $ 15,660 Liabilities and equity Liabilities Accounts payable and other $ 4,865 $ 126 $ 4,991 Liabilities associated with assets held for sale — — — Borrowings 825 — 825 Current liabilities 5,690 126 5,816 Accounts payable and other 773 (5 ) 768 Borrowings 2,440 — 2,440 Deferred income tax liabilities 837 — 837 Total liabilities $ 9,740 $ 121 $ 9,861 Equity Limited partners $ 1,585 $ (132 ) $ 1,453 Non-controlling interests attributable to: Redemption-Exchange Units, Preferred Shares and Special Limited Partnership Units held by Brookfield Asset Management Inc. 1,453 (128 ) 1,325 Interest of others in operating subsidiaries 3,026 (5 ) 3,021 Total equity 6,064 (265 ) 5,799 Total liabilities and equity $ 15,804 $ (144 ) $ 15,660 (d) Revenue from contracts with customers Construction Services Construction Services Our construction services business provides end-to-end design and development solutions for our customers. The work performed on these contracts creates or enhances an asset that our customer controls and accordingly we recognize revenue on these contracts over a period of time. The partnership uses an input method, the cost-to-cost method, to measure progress towards complete satisfaction of the performance obligations under IFRS 15. As work is performed, a contract asset in the form of work-in-progress is recognized, which is reclassified to accounts receivable when invoiced to the customer. If payment is received in advance of work being completed, a contract liability is recognized. There is not considered to be a significant financing component in construction contracts as the period between the recognition of revenue under the cost-to-cost method and when payment is received is typically less than one year. IFRS 15 requires a highly probable criterion with regards to recognizing revenue arising from variable consideration and contract modification and claims. For variable consideration, revenue is only to be recognized to the extent that it is highly probable that a significant reversal in the amount of revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Business Services Fuel Distribution & Marketing The fees and related costs for providing road fuel distribution and marketing are recognized at a point in time when the services are provided. Revenue from the sale of goods in our UK road fuel service operation represents net invoiced sales of fuel products and Renewable Transport Fuel Obligation ("RTFO") certificates, excluding value added taxes but including excise duty, which has been assessed to be a production tax and recorded as part of consideration received. Revenue is recognized at the point that title passes to the customer. Facilities Management The fees and related costs for providing facilities management services are recognized over the time in which the services are provided. Real Estate Services The fees and related costs for providing real estate and logistics services are recognized over the time in which the services are provided. Associated with the delivery of certain service contracts, our partnership also earns revenue from home sale transactions and referral fees from suppliers utilized in servicing these contracts. These revenue transactions are recognized as follows: • Home Sale: The partnership earns home sale revenue from two types of contracts: cost-plus home sale and fixed fee home sale contracts. Under a cost-plus home sale contract, the partnership earns a performance fee and bears no risk of loss with respect to costs incurred. Revenues and related costs associated with the purchase and resale of residences under cost-plus contracts are recognized on a net basis over the period in which services are provided as control over the home does not pass onto the partnership. Under a fixed fee home sale contract, the partnership earns a fixed fee based upon a percentage of the acquisition cost of the residential property. This fee revenue is recognized when the home is acquired by the customer as the partnership’s performance obligation is complete at this time. The revenues and expenses related to the home sale itself are recorded on a gross basis. • Referral fees: The partnership earns referral fees from various suppliers who provide services to customers through our service offerings. A significant portion of the referral fee revenue is generated from the closing of a home sale or purchase transaction, under which the partnership earns a percentage of the commissions received by the real estate agent on the purchase or sale of a home by the customer. Referral fees from home purchases or sales are recognized upon the closing date of the real estate transaction. The partnership recognizes referral fees from other suppliers upon completion of the services. Industrial Operations Manufacturing Sales of goods are recognized at a point in time when the product is shipped and control passes to the customer. Services revenues are recognized over time when the services are provided. Mining Revenue from our mining business is made under provisional pricing arrangements. Revenue from the sale of palladium and by-product metals is provisionally recognized based on quoted market prices upon the delivery of concentrate to the smelter or designated shipping point, which is when significant rights and obligations of ownership pass and title and control is transferred. The business’ smelter contract provides for final prices to be determined by quoted market prices in a period subsequent to the date of concentrate delivery. The period between provisional invoicing and final pricing, or settlement period, is typically between 30 and 150 days . The fair value of the final sales price adjustment is re-estimated by reference to forward market prices at each period end and changes in fair value are recognized as an adjustment to revenue. As a result, the accounts receivable amounts related to this business are recorded at fair value. Energy Energy Commodities and Services Revenue from the sale of oil and gas is recognized at a point in time when title and control of the product passes to an external party, based on volumes delivered and contractual delivery points and prices. Revenue for the production in which the partnership has an interest with other producers is recognized based on the partnership’s working interest. Revenue is measured net of royalties to reflect the deduction for other parties’ proportionate share of the revenue. Revenue from the rendering of services is recognized at a point in time when significant rights and obligations of ownership pass and title and control is transferred. Remaining Performance Obligations Construction Services Backlog is defined as revenue yet to be delivered (i.e. remaining performance obligations) on construction projects that have been secured via an executed contract, work order, or letter of intent. The total backlog for our construction services operations equates to approximately two years of activity. Industrial Operations Our Brazilian water treatment and distribution operation is party to certain remaining performance obligations which have a duration of more than one year. The most significant remaining performance obligations at January 1, 2018 relate to the service concession arrangements with various municipalities which have an average term of 25 years . The tables below summarize our segment revenue by geography, and timing of revenue recognition for IFRS 15 revenue for the three months ending June 30, 2018: (US$ MILLIONS) Timing of Revenue Recognition Business Services Industrial Operations Construction Services Energy Corporate and Other Total Goods/services provided at a point in time $ 6,325 $ 781 $ 21 $ 54 $ — $ 7,181 Services transferred over a period of time 391 68 1,110 — — 1,569 Total IFRS 15 revenue $ 6,716 $ 849 $ 1,131 $ 54 $ — $ 8,750 Other non IFRS 15 revenue 10 6 2 3 4 25 Total revenue $ 6,726 $ 855 $ 1,133 $ 57 $ 4 $ 8,775 (US$ MILLIONS) Geography Business Services Industrial Operations Construction Services Energy Corporate and Other Total (1) United Kingdom $ 5,223 $ 23 $ 389 $ — $ — $ 5,635 Canada 953 143 21 54 — 1,171 Australia 84 — 623 — — 707 Brazil 164 212 — — — 376 USA 100 112 — — — 212 Middle East (2) 1 1 98 — — 100 Other 191 358 — — — 549 Total IFRS 15 revenue $ 6,716 $ 849 $ 1,131 $ 54 $ — $ 8,750 __________________________________ (1) Geography of the other non IFRS 15 revenue is as follows: United Kingdom $2 million , United States $4 million , Canada $5 million , Australia $1 million , Brazil $6 million , Middle East $ nil and Other $7 million . (2) Middle East primarily consists of United Arab Emirates. (US$ MILLIONS) Transition Business Services Industrial Operations Construction Services Energy Corporate and Other Total Revenue as if it were under former revenue standards $ 6,716 $ 851 $ 1,125 $ 54 $ — $ 8,746 IFRS 15 Impact — (2 ) 6 — — 4 Total IFRS 15 Revenue $ 6,716 $ 849 $ 1,131 $ 54 $ — $ 8,750 The tables below summarize our segment revenue by geography, and timing of revenue recognition for IFRS 15 revenue for the six months ending June 30, 2018: (US$ MILLIONS) Timing of Revenue Recognition Business Services Industrial Operations Construction Services Energy Corporate and Other Total Goods/services provided at a point in time $ 12,024 $ 1,473 $ 34 $ 147 $ — $ 13,678 Services transferred over a period of time 985 117 2,139 — — 3,241 Total IFRS 15 revenue $ 13,009 $ 1,590 $ 2,173 $ 147 $ — $ 16,919 Other non IFRS 15 revenue 21 12 3 7 7 50 Total revenue $ 13,030 $ 1,602 $ 2,176 $ 154 $ 7 $ 16,969 (US$ MILLIONS) Geography Business Services Industrial Operations Construction Services Energy Corporate and Other Total (1) United Kingdom $ 9,959 $ 30 $ 712 $ — $ — $ 10,701 Canada 1,884 255 34 147 — 2,320 Australia 170 — 1,216 — — 1,386 Brazil 465 429 — — — 894 USA 174 216 — — — 390 Middle East (2) 2 1 211 — — 214 Other 355 659 — — — 1,014 Total IFRS 15 revenue $ 13,009 $ 1,590 $ 2,173 $ 147 $ — $ 16,919 __________________________________ (1) Geography of the other non IFRS 15 revenue is as follows: United Kingdom $6 million , United States $4 million , Canada $11 million , Australia $2 million , Brazil $12 million , Middle East $ nil and Other $15 million . (2) Middle East primarily consists of United Arab Emirates. (US$ MILLIONS) Transition Business Services Industrial Operations Construction Services Energy Corporate and Other Total Revenue as if it were under former revenue standards $ 13,009 $ 1,590 $ 2,173 $ 147 $ — $ 16,919 IFRS 15 Impact — — — — — — Total IFRS 15 Revenue $ 13,009 $ 1,590 $ 2,173 $ 147 $ — $ 16,919 (e) Financial instruments and hedge accounting Classification & Measurement The table below summarizes the partnership’s classification and measurement of financial assets and liabilities, on adoption of IFRS 9: Classification Measurement Statement of Financial Position Account Financial assets Cash and cash equivalents Debt Amortized cost Cash and cash equivalents Accounts receivable Debt Amortized cost / FVTPL Accounts and other receivable, net Restricted cash Debt Amortized cost Financial assets Equity securities Equity FVTPL / FVOCI Financial assets Debt securities Debt FVTPL / FVOCI / Amortized cost Financial assets Derivative assets Derivatives FVTPL (1) Financial assets Other financial assets Debt / Equity Amortized cost / FVTPL/ FVOCI Financial assets Financial liabilities Borrowings Debt Amortized cost Borrowings Accounts payable and other Debt Amortized cost Accounts payable and other Derivative liabilities Derivatives FVTPL (1) Accounts payable and other __________________________ (1) Derivatives are classified and measured at FVTPL except those designated in hedging relationships. The classification depends on the specific business model for managing the financial instruments and the contractual terms of the cash flows. The partnership maintains a portfolio of marketable securities comprised of equity and debt securities. The marketable securities are recognized on their trade date. They are subsequently measured at fair value at each reporting date with the change in fair value recorded in either profit or loss ("FVTPL") or other comprehensive income ("FVOCI"). For investments in debt instruments, this will depend on the business model in which the investment is held. At initial recognition, the partnership measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss. Financial assets are classified as amortized cost based on their nature and use within the partnership’s business. Financial assets classified as amortized cost are recorded initially at fair value, then subsequently measured at amortized cost using the effective interest method, less any impairment. Impairment The partnership assesses on a forward-looking basis the expected credit losses associated with its debt instruments carried at amortized cost and FVOCI. The impairment methodology applied depends on whether there has been a significant increase in credit risk. Impairment charges are recognized in profit or loss based on the expected credit loss model. Derivatives and hedging activities The partnership selectively utilizes derivative financial instruments primarily to manage financial risks, including commodity price risk and foreign exchange risks. Derivative financial instruments are recorded at fair value. Hedge accounting is applied when the derivative is designated as a hedge of a specific exposure and there is assurance that it will continue to be highly effective as a hedge based on an expectation of offsetting cash flows or fair value. Hedge accounting is discontinued prospectively when the derivative no longer qualifies as a hedge or the hedging relationship is terminated. Once discontinued, the cumulative change in fair value of a derivative that was previously recorded in other comprehensive income by the application of hedge accounting is recognized in profit or loss over the remaining term of the original hedging relationship as amounts related to the hedged item are recognized in profit or loss. The assets or liabilities relating to unrealized mark-to-market gains and losses on derivative financial instruments are recorded in financial assets and financial liabilities, respectively. (i) Items classified as hedges Realized and unrealized gains and losses on foreign exchange contracts and foreign currency debt that are designated as hedges of currency risks relating to a net investment in a subsidiary with a functional currency other than the U.S. dollar are included in equity and are included in net income in the period in which the subsidiary is disposed of or to the extent partially disposed and control is not retained. Derivative financial instruments that are designated as hedges to offset corresponding changes in the fair value of assets and liabilities and cash flows are measured at estimated fair value with changes in fair value recorded in profit or loss or as a component of equity, as applicable. Unrealized gains and losses on interest rate contracts designated as hedges of future variable interest payments are included in equity as a cash flow hedge when the interest rate risk relates to an anticipated variable interest payment. The periodic exchanges of payments on interest rate swap contracts designated as hedges of debt are recorded on an accrual basis as an adjustment to interest expense. The periodic exchanges of payments on interest rate contracts designated as hedges of future interest payments are amortized into profit or loss over the term of the corresponding interest payments. (ii) Items not classified as hedges Derivative financial instruments that are not designated as hedges are recorded at estimated fair value, and gains and losses arising from changes in fair value are recognized in net income in the period the changes occur. Realized and unrealized gains on other derivatives not designated as hedges are recorded in other income (expenses), net. Fair value measurement Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the partnership takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value measurement is disaggregated into three hierarchical levels: Level 1, 2 or 3. Fair value hierarchical levels are directly based on the degree to which the inputs to the fair value measurement are observable. The levels are as follows: Level 1 - Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 - Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the asset’s or liability’s anticipated life. Level 3 - Inputs are unobservable and reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs in determining the estimate. Summary of impact upon adoption of IFRS 9 - Classification and Measurement The table below illustrates the classification and measurement of financial assets under IFRS 9 and IAS 39 at the date of initial application. A similar table for financial liabilities has not been prepared because there have not been any reclassifications and remeasurements within financial liabilities. The following table is as at January 1, 2018: (US$ MILLIONS) FVTPL FVOCI Amortized Cost Total Opening balance (IAS 39) $ 166 $ 429 $ 5,852 $ 6,447 Reclassifications 211 (211 ) — — Revised opening balance (IFRS 9) $ 377 $ 218 $ 5,852 $ 6,447 The following paragraphs explain how applying the new classification requirements of IFRS 9 led to changes in classification of certain financial assets held by the partnership as shown in the table above. Instruments reclassified from Available for Sale (IAS 39) to FVTPL (IFRS 9): Debt Instruments previously classified as available for sale but which fail the Solely for Payment, Principal and Interest ("SPPI") test The partnership held secured debentures and contractual rights which were reclassified from available for sale to FVTPL for $187 million . Under IFRS 9, the debentures and contractual rights do not meet the criteria to be classified as at amortized cost or FVOCI because their cash flows do not represent solely payments of principal and interest. Related fair value gains of $3 million attributable to the partnership net of taxes were transferred from the available for sale reserve to retained earnings on January 1, 2018. Equity instruments previously classified as available for sale and for which FVOCI election is not made The partnership held an equity instrument which was reclassified from available for sale to FVTPL for $24 million . Related fair value losses of $3 million attributable to the partnership net of taxes were transferred from the available for sale reserve to retained earnings on January 1, 2018. Summary of impact upon adoption of IFRS 9 - Impairment The partnership's opening loss allowances in accordance with IAS 39 do not differ materially from the partnership's opening expected credit losses ("ECL") determined in accordance with IFRS 9, as at January 1, 2018. Summary of impact upon adoption of IFRS 9 - Derivatives and hedging activities In accordance with IFRS 9’s transition provisions for hedge accounting, the partnership has applied the IFRS 9 hedge accounting requirements prospectively from the date of initial application on January 1, 2018. The partnership’s qualifying hedging relationships in place as at January 1, 2018 also qualified for hedge accounting in accordance with IFRS 9 and were therefore regarded as continuing hedging relationships. (f) Future changes in accounting policies (i) Leases In January 2016, the IASB published a new standard, IFRS 16 Leases ("IFRS 16"). The new standard brings most leases on the balance sheet, eliminating the distinction between operating and finance leases. Lessor accounting, however, remains largely unchanged and the distinction between operating and finance leases is retained. IFRS 16 supersedes IAS 17 Leases and related interpretations and is effective for periods beginning on or after January 1, 2019. The partnership has participated in strategic planning sessions with its subsidiaries and associates in order to provide guidance regarding the key considerations and to develop an adoption project plan. The partnership is completing its assessment of existing contractual arrangements to identify the existing population of lease arrangements that would be capitalized under the new standard. Next steps include performing an initial quantification of the existing obligations, assessing any potential impact to IT systems and internal controls and reviewing the additional disclosures required by the new standard. IFRS 16 can either be adopted on a full retrospective method or on a modified retrospective method whereby any transitional impact is recorded in equity as at January 1, 2019 and comparative periods are not restated. The partnership currently anticipates that the modified retrospective approach will be adopted and is currently in the process of evaluating a number of practical expedients available under the new standard. The partnership continues to evaluate the overall impact of IFRS 16 on its consolidated financial statements. (ii) Uncertainty over Income Tax Treatments In June 2017, the IASB published IFRIC 23, Uncertainty over Income Tax Treatments ("IFRIC 23") effective for annual periods beginning on or after January 1, 2019. The interpretation requires an entity to assess whether it is probable that a tax authority will accept an uncertain tax treatment used, or proposed to be used, by an entity in its income tax filings and to exercise judgment in determining whether each tax treatment should be considered independently or whether some tax treatments should be considered together. The decision should be based on which approach provides better predictions of the resolution of the uncertainty. An entity also has to consider whether it is probable that the relevant authority will accept each tax treatment, or group of tax treatments, assuming that the taxation authority with the right to examine any amounts reported to it will examine those amounts and will have full knowledge of all relevant information when doing so. The interpretation may be applied on either a fully retrospective basis or a modified retrospective basis without restatement of comparative information. The partnership is currently evaluating the impact of IFRIC 23 on its unaudited interim condensed consolidated financial statements. |
ACQUISITION OF BUSINESSES
ACQUISITION OF BUSINESSES | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations 1 [Abstract] | |
ACQUISITION OF BUSINESSES | ACQUISITION OF BUSINESSES When determining the basis of accounting for the partnership’s investees, the partnership evaluates the degree of influence that the partnership exerts directly or through an arrangement over the investees' relevant activities. Control is obtained when the partnership has power over the acquired entities and an ability to use its power to affect the returns of these entities. The partnership accounts for business combinations using the acquisition method of accounting, pursuant to which the cost of acquiring a business is allocated to its identifiable tangible and intangible assets and liabilities on the basis of the estimated fair values at the date of acquisition. (a) Acquisitions completed in the six months ended June 30, 2018 The following summarizes the consideration transferred, assets acquired and liabilities assumed at the applicable acquisition dates: (US$ MILLIONS) Business Services (1) Industrial Operations (1) Total Cash $ 4 $ 45 $ 49 Total Consideration (2) $ 4 $ 45 $ 49 (US$ MILLIONS) Cash and cash equivalents $ 2 $ 30 $ 32 Accounts receivable and other 1 75 76 Inventory — 58 58 Equity accounted investments — 1 1 Property, plant and equipment 2 187 189 Intangible assets 5 231 236 Goodwill 8 180 188 Deferred income tax assets — 27 27 Financial assets — 2 2 Accounts payable and other (1 ) (199 ) (200 ) Borrowings — (266 ) (266 ) Deferred income tax liabilities — (72 ) (72 ) Net assets acquired before non-controlling interest 17 254 271 Non-controlling interest (3) (4) (13 ) (209 ) (222 ) Net Assets Acquired $ 4 $ 45 $ 49 __________________________________ (1) The initial fair values of all acquired assets, liabilities and goodwill for these acquisitions have been determined on a preliminary basis at the end of the reporting period. (2) Excludes consideration attributable to non-controlling interest, which represents the interest of others in operating subsidiaries. (3) Non-controlling interest recognized on business combination, were measured at fair value for Business Services. (4) Non-controlling interest recognized on business combination, were measured at the proportionate share of fair value of the assets acquired and liabilities assumed for Industrial Operations. Business Services Facilities management business ("BGIS") On February 1, 2018, the partnership, through BGIS, completed a tuck-in acquisition, acquiring an 85% interest in Critical Solutions Group and Critical Power Testing and Maintenance ("CSG"), a US specialist provider of services for the data center market, for $4 million attributable to the partnership. On acquisition, the partnership had a 22% economic interest and an 85% voting interest in the business, which provides the partnership with control over the business. Accordingly, the partnership consolidates the business for financial reporting purposes. Acquisition costs of less than $1 million were expensed at the acquisition date and recorded as other expenses on the unaudited interim condensed consolidated statements of operating results. Goodwill of $8 million was acquired, which represents the expected growth and synergies the partnership expects to receive from the integration of the operations. Goodwill recognized is deductible for income tax purposes. The partnership’s results from operations for the period ended June 30, 2018 includes less than $1 million of revenue and less than $1 million of net loss attributable to the partnership from the acquisition. If this acquisition had been effective January 1, 2018, the partnership would have recorded revenue of less than $1 million for the period ended June 30, 2018 and net loss of less than $1 million attributable to the partnership for the period ended June 30, 2018. Industrial Operations Schoeller Allibert Group B.V. ("Schoeller Allibert") On May 15, 2018, the partnership , together with institutional investors, acquired a 70% interest in Schoeller Allibert, one of Europe's largest manufacturers of returnable plastic packaging systems. The partnership's economic interest of 14% was acquired for consideration of $45 million . The partnership has a 52% voting interest in this business, which provides us with control. Accordingly, the partnership consolidates this business for financial reporting purposes. Acquisition costs of approximatively $9 million were expensed at the acquisition date and recorded as other expenses on the unaudited interim condensed consolidated statements of operating results. Goodwill of $180 million was acquired, which represents the expected growth the partnership expects to receive from the integration of the operations. Goodwill recognized is no t deductible for income tax purposes. Intangible assets of $231 million were acquired, primarily comprised of patented technology and customer relationships. The partnership’s results from operations for the period ended June 30, 2018 includes $12 million of revenue and less than $1 million of net loss attributable to the partnership from the acquisition. If this acquisition had been effective January 1, 2018, the partnership would have recorded revenue of $41 million for the period ended June 30, 2018 and net loss of $3 million attributable to the partnership for the period ended June 30, 2018. (b) Acquisitions completed in 2017 The following summarizes the consideration transferred, assets acquired and liabilities assumed at the applicable acquisition dates: (US$ MILLIONS) Business (1) Industrial Energy (1) Total Cash $ 198 $ 383 $ 12 $ 593 Contingent consideration 13 — — 13 Total Consideration (2) $ 211 $ 383 $ 12 $ 606 (US$ MILLIONS) Cash and cash equivalents $ 39 $ 296 $ — $ 335 Accounts receivable and other 1,248 978 — 2,226 Inventory 690 10 — 700 Equity accounted investments 122 90 — 212 Property, plant and equipment 264 200 39 503 Intangible assets 403 2,436 — 2,839 Goodwill 325 3 — 328 Deferred income tax assets 9 50 — 59 Financial assets 106 — — 106 Other assets — 65 — 65 Acquisition gain — — (7 ) (7 ) Accounts payable and other (1,885 ) (227 ) — (2,112 ) Borrowings (210 ) (1,468 ) — (1,678 ) Deferred income tax liabilities (58 ) (729 ) (2 ) (789 ) Net assets acquired before non-controlling interest 1,053 1,704 30 2,787 Non-controlling interest (3) (4) (842 ) (1,321 ) (18 ) (2,181 ) Net Assets Acquired $ 211 $ 383 $ 12 $ 606 ________________ (1) The initial fair values of all acquired assets, liabilities and goodwill for this acquisition have been determined on a preliminary basis at the end of the reporting period. (2) Excludes consideration attributable to non-controlling interest, which represents the interest of others in operating subsidiaries. (3) Non-controlling interest recognized on business combinations, were measured at fair value for Business Services and Energy. (4) Non-controlling interest recognized on business combinations, were measured at the proportionate share of fair value of the assets acquired and liabilities assumed for Industrial Operations. Business Services Fuel Holdings Limited ("Greenergy") On May 10, 2017, the partnership acquired, together with institutional investors, an 85% interest in Greenergy, a U.K. road fuel business. The partnership's economic interest of 14% was acquired for consideration of $79 million attributable to the partnership. The partnership has an 85% voting interest in this business, which provides us with control over the business. Accordingly, the partnership consolidates this business for financial reporting purposes. The contingent consideration contemplates potential earn outs based on reaching specific EBITDA targets over five years following closing, as well as achieving certain cash distribution and investment targets. Possible undiscounted earn outs payable ranges from $6 to $12 million . As of the acquisition date, the partnership has recorded contingent consideration of $11 million . Prior to closing the acquisition, the partnership had entered into a cash flow hedge, which generated a gain of $12 million , on closing. The partnership had elected to recognize and accordingly, reclassify the associated gains from other comprehensive income to include them in the initial fair value of net asset acquired. Acquisition costs of $7 million were expensed at the acquisition date and recorded as other expenses on the consolidated statement of operating results. Goodwill of $93 million was acquired, which represents the expected growth the partnership expects to receive from the integration of the operations. Goodwill recognized is no t deductible for income tax purposes. The partnership’s results from operations for the year ended December 31, 2017 includes $1,917 million of revenue and $2 million of net income attributable to the partnership from the acquisition. If the acquisition had been effective January 1, 2017, the partnership would have recorded revenue of approximately $2,865 million and net income of approximately $4 million attributable to the partnership for the year ended December 31, 2017 . On October 31, 2017, the partnership, through Greenergy, completed two separate tuck-in acquisitions, acquiring an 85% interest in Inver Energy, an Irish road fuel business, and an 85% interest in Canadian Operators Petroleum, for combined consideration of $10 million attributable to the partnership. On acquisition, the partnership, through Greenergy, had a 14% economic interest and an 85% voting interest each of these businesses, which provides the partnership with control over the businesses. Accordingly, the partnership, through Greenergy, consolidates these businesses for financial reporting purposes. Acquisition costs of less than a million were expensed at the acquisition date and recorded as other expenses on the consolidated statement of operating results. Goodwill of $9 million was acquired, which represents the expected growth and synergies the partnership expects to receive from the integration of the operations. Goodwill recognized is no t deductible for income tax purposes. The partnership’s results from operations for the year ended December 31, 2017 includes $17 million of revenue and less than a million of net income attributable to the partnership from the two tuck-in acquisitions. If these acquisitions had been effective January 1, 2017, the partnership would have recorded revenue of approximately $92 million for the year ended December 31, 2017 and net income of less than a million attributable to the partnership for the year ended December 31, 2017. Fuel Marketing On July 17, 2017, together with institutional partners, the partnership acquired 213 retail gas stations and associated convenience kiosks ("fuel marketing business") across Canada for consideration of $110 million attributable to the partnership. On acquisition, the partnership had a 26% economic interest and a 100% voting interest in this business, which gives the partnership control over the business. Accordingly, the partnership consolidates this business for financial reporting purposes. The gas stations will be rebranded as Mobil as part of an agreement with Imperial Oil, marking the introduction of the Mobil fuel brand into Canada. The gas stations will continue to allow customers to collect points through an existing loyalty program. An intangible asset was recognized on acquisition for the loyalty program. Prior to the closing of the acquisition, the partnership had entered into a cash flow hedge, which generated a gain of $3 million on closing. The partnership elected to recognize and accordingly, reclassify the associated gains from other comprehensive income to include them in the initial fair value of net assets acquired. Acquisition costs of $4 million were expensed at the acquisition date and recorded as other expenses in the consolidated statement of operating results. Goodwill of $211 million was acquired, which represents the expected growth and synergies the partnership expects to receive from the integration of the operations. Goodwill recognized is deductible for income tax purposes. The partnership’s results from operations for the year ended December 31, 2017 includes $161 million of revenue and less than $2 million of net income attributable to the partnership from the acquisition. If the acquisition had been effective January 1, 2017, the partnership would have recorded revenue of approximately $353 million and net income of approximately $4 million attributable to the partnership for the year ended December 31, 2017. Other On June 19, 2017, one of the partnership's subsidiaries acquired a real estate brokerage operation in Quebec, Canada for total consideration of approximately $9 million attributable to the partnership. On acquisition, the partnership had a 100% economic interest and a 100% voting interest in this business, which gives us control over the business. Accordingly, the partnership consolidates this business for financial reporting purposes. Acquisition costs of less than $1 million were expensed at the acquisition date and recorded as other expenses on the consolidated statement of operating results. Goodwill of $9 million was acquired, which represents the synergies the partnership expects to receive from the integration of the operations. Goodwill recognized is no t deductible for income tax purposes. The partnership’s results from operations for the year ended December 31, 2017 includes $2 million of revenue and less than $1 million of net income attributable to the partnership from the acquisition. If the acquisition had been effective January 1, 2017, the partnership would have recorded revenue of approximately $7 million and net income of approximately $1 million attributable to the partnership for the year ended December 31, 2017 . Industrial Operations BRK Ambiental On April 25, 2017, the partnership acquired, together with institutional investors, a 70% interest in BRK Ambiental, a wastewater and industrial water treatment business in Brazil, which had a 12.5% voting interest in BRK Ambiental - Ativos Maduros S.A. (“OAMA”), an industrial water treatment business. OAMA is accounted for by BRK Ambiental using the equity method. Subsequently, on May 30, 2017, the partnership acquired, together with institutional investors, the remaining 87.5% voting interest in OAMA and began consolidating the businesses. On acquisition of BRK Ambiental, its 12.5% voting interest in OAMA was re-measured at fair value as part of the purchase price allocation. Given the brief duration of time between the two closing dates, no remeasurement gain or loss was recognized. On acquisition of the businesses, the partnership had approximately a 27% economic interest, which combined with our voting interest, provides us with control over both BRK Ambiental and OAMA. Accordingly, the partnership consolidates the businesses for financial statement purposes. As at December 31, 2017, the partnership holds $35 million of the consideration in escrow, which will be released to the seller over the next five years on each anniversary date of closing. Acquisition costs of $11 million were expensed at the acquisition dates and recorded as other expenses on the consolidated statement of operating results. Goodwill of approximately $3 million was acquired, which represents the expected growth that the partnership expects to receive from the integration of the operations. Goodwill recognized is no t deductible for income tax purposes. The partnership’s results from the combined operations for the year ended December 31, 2017 , includes $132 million of revenue and $5 million of net income attributable to the partnership from the acquisition. If the acquisition had been effective January 1, 2017, the partnership would have recorded revenue of approximately $199 million for the year ended December 31, 2017 and net income of approximately $17 million attributable to the partnership for the year ended December 31, 2017. Energy On November 5, 2017, one of the partnership's subsidiaries acquired a bundle of service and swabbing rig assets in Alberta, Canada for total consideration of approximately $12 million attributable to the partnership. On acquisition, the partnership had a 40% economic interest and a 73% voting interest in this business, which give us control over the business. Accordingly, the partnership consolidates this business for financial reporting purposes. Acquisition costs of a million were expensed at the acquisition date and recorded as other expenses on the consolidated statement of operating results. A bargain purchase gain of $7 million was recognized as the seller was motivated to exit the Canadian market. The partnership’s results from operations for the year ended December 31, 2017 includes $3 million of revenue and $1 million of net income attributable to the partnership from the acquisition. If the acquisition had been effective January 1, 2017, the partnership would have recorded revenue of approximately $13 million for the year ended December 31, 2017 and net income of approximately $2 million attributable to the partnership for the year ended December 31, 2017. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Measurement [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair values are determined by reference to quoted bid or ask prices, as appropriate. Where bid and ask prices are unavailable, the closing price of the most recent transaction of that instrument is used. In the absence of an active market, fair values are determined based on prevailing market rates such as bid and ask prices, as appropriate for instruments with similar characteristics and risk profiles or internal or external valuation models, such as option pricing models and discounted cash flow analysis, using observable market inputs. Fair values determined using valuation models require the use of assumptions concerning the amount and timing of estimated future cash flows and discount rates. In determining those assumptions, the partnership looks primarily to external readily observable market inputs such as interest rate yield curves, currency rates, and price and rate volatilities as applicable. Financial instruments classified as fair value through profit or loss are carried at fair value on the unaudited interim condensed consolidated statements of financial position and changes in fair values are recognized in profit or loss. The following table provides the details of financial instruments and their associated financial instrument classifications as at June 30, 2018 : (US$ MILLIONS) MEASUREMENT BASIS FVTPL FVOCI Amortized Cost Total Financial assets Cash and cash equivalents $ — $ — $ 1,873 $ 1,873 Accounts receivable, net (current and non-current) (1) 45 — 4,409 4,454 Other assets (current and non-current) (2) — — 118 118 Financial assets (current and non-current) (3) 292 347 307 946 Total $ 337 $ 347 $ 6,707 $ 7,391 Financial liabilities Accounts payable and other (4) $ 110 6 $ 3,996 $ 4,112 Borrowings (current and non-current) — — 5,079 5,079 Total $ 110 $ 6 $ 9,075 $ 9,191 ____________________________________ (1) Accounts receivable recognized at fair value relates to our mining business. (2) Excludes prepayments and other assets of $400 million . (3) Refer to Hedging Activities in Note 4(a) below. (4) Excludes provisions, decommissioning liabilities, deferred revenue, work in progress, post-employment benefits and various taxes and duties of $2,073 million . Included in cash and cash equivalents as at June 30, 2018 is $957 million of cash ( December 31, 2017 : $556 million ) and $916 million of cash equivalents ( December 31, 2017 : $550 million ) which includes $690 million on deposit with Brookfield ( December 31, 2017 : $384 million ), as described in Note 14. The fair value of all financial assets and liabilities as at June 30, 2018 were consistent with carrying value with the exception of the promissory note receivable from Teekay Offshore Partners L.P. ("Teekay Offshore"), where fair value was $88 million ( December 31, 2017 : $88 million ) compared to a book value of $71 million ( December 31, 2017 : $70 million ), and the Teekay Offshore warrants, where fair value was $50 million compared to a book value of $39 million . The following table provides the allocation of financial instruments and their associated financial instrument classifications as at December 31, 2017 : (US$ MILLIONS) FVTPL Available for Sale Securities Loans and Receivables/ Other Liabilities Total MEASUREMENT BASIS (Fair Value) (Fair Value through OCI) (Amortized Cost) Financial assets Cash and cash equivalents $ — $ — $ 1,106 $ 1,106 Accounts receivable, net (current and non-current) (1) 50 — 4,312 4,362 Other assets (current and non-current) (2) — — 195 195 Financial assets (current and non-current) (3) 116 429 239 784 Total $ 166 $ 429 $ 5,852 $ 6,447 Financial liabilities Accounts payable and other (4) $ 159 — $ 3,766 $ 3,925 Borrowings (current and non-current) — — 3,265 3,265 Total $ 159 $ — $ 7,031 $ 7,190 ____________________________________ (1) Accounts receivable recognized at fair value relates to our mining business. (2) Excludes prepayments and other assets of $314 million . (3) Refer to Hedging Activities in Note 4(a) below. (4) Excludes provisions, decommissioning liabilities, deferred revenue, work in progress, post-employment benefits and various taxes and duties of $1,713 million . (a) Hedging activities The partnership uses foreign exchange contracts and foreign currency denominated debt instruments to manage foreign currency exposures arising from net investments in foreign operations. For the three and six months ended June 30, 2018 , unrealized pre-tax net gains of $32 million and $65 million ( June 30, 2017 : $15 million and $46 million unrealized pre-tax net losses, respectively) were recorded in other comprehensive income for the effective portion of hedges of net investments in foreign operations. As at June 30, 2018 , there was an unrealized derivative asset balance of $35 million ( December 31, 2017 : $5 million ) and derivative liability balance of $3 million ( December 31, 2017 : $27 million ) relating to derivative contracts designated as net investment hedges. The partnership uses commodity swap contracts to hedge the sale price of its gas contracts and foreign exchange contracts to hedge highly probable future transactions. A number of these contracts are designated as cash flow hedges. For the three and six months ended June 30, 2018 , unrealized pre-tax net gains of $23 million and $13 million ( June 30, 2017 : net gains of $2 million and $19 million ) were recorded in other comprehensive income for the effective portion of cash flow hedges. As at June 30, 2018 , there was an unrealized derivative asset balance of $ 43 million ( December 31, 2017 : $29 million ) and derivative liability balance of $3 million ( December 31, 2017 : $nil ) relating to the derivative contracts designated as cash flow hedges. Other derivative instruments are measured at fair value, with changes in fair value recognized in the consolidated statements of operating results. (b) Fair value hierarchical levels — financial instruments Level 3 assets and liabilities measured at fair value on a recurring basis include $255 million ( December 31, 2017 : $257 million ) of financial assets and $63 million ( December 31, 2017 : $64 million ) of financial liabilities, which are measured at fair value using valuation inputs based on management's best estimates. There were no transfers between levels during the three and six month period ended June 30, 2018 . The following table categorizes financial assets and liabilities, which are carried at fair value, based upon the level of input as at June 30, 2018 and December 31, 2017 : June 30, 2018 December 31, 2017 (US$ MILLIONS) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Financial assets Common shares $ 263 $ — $ — $ 207 $ — $ — Accounts receivable — 45 — — 50 — Loans and notes receivable — — 2 — — 1 Derivative assets 8 113 39 15 66 34 Other financial assets — — 214 — — 222 Total $ 271 $ 158 $ 255 $ 222 $ 116 $ 257 Financial liabilities Derivative liabilities $ 12 $ 41 $ — $ 30 $ 65 $ — Other financial liabilities — — 63 — — 64 Total $ 12 $ 41 $ 63 $ 30 $ 65 $ 64 The following table presents the change in the balance of financial assets classified as Level 3 as at June 30, 2018 : (US$ MILLIONS) June 30, 2018 Balance at beginning of year $ 257 Fair value change recorded in net income 1 Fair value change recorded in other comprehensive income (1 ) Disposals (2 ) Balance at end of period $ 255 (c) Offsetting of financial assets and liabilities Financial assets and liabilities are offset with the net amount reported in the unaudited interim condensed consolidated statements of financial position where the partnership currently has a legally enforceable right to offset and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. As at June 30, 2018 , $4 million gross, of financial assets ( December 31, 2017 : $21 million ) and $4 million gross, of financial liabilities ( December 31, 2017 : $21 million ) were offset in the unaudited interim condensed consolidated statements of financial position related to derivative financial instruments. |
FINANCIAL ASSETS
FINANCIAL ASSETS | 6 Months Ended |
Jun. 30, 2018 | |
Financial Instruments [Abstract] | |
FINANCIAL ASSETS | FINANCIAL ASSETS (US$ MILLIONS) June 30, 2018 December 31, 2017 Current Marketable securities (1) $ 262 $ 207 Restricted cash 77 68 Derivative contracts 99 75 Loans and notes receivable 46 11 Total current $ 484 $ 361 Non-current Marketable securities (1) $ 1 $ 1 Restricted cash 7 11 Derivative contracts 61 7 Loans and notes receivable 179 150 Other financial assets (2) 214 254 Total non-current $ 462 $ 423 ____________________________________ (1) During the three and six month period ended June 30, 2018 , the partnership recognized $ nil and $nil ( June 30, 2017 : $6 million and $39 million ) of net gains on disposition of marketable securities. (2) Other financial assets include secured debentures to homebuilding companies in our business services segment. |
ACCOUNTS AND OTHER RECEIVABLE,
ACCOUNTS AND OTHER RECEIVABLE, NET | 6 Months Ended |
Jun. 30, 2018 | |
Subclassifications of assets, liabilities and equities [abstract] | |
ACCOUNTS AND OTHER RECEIVABLE, NET | ACCOUNTS AND OTHER RECEIVABLE, NET (US$ MILLIONS) June 30, 2018 December 31, 2017 Current, net $ 3,676 $ 3,454 Non-current, net Retainer on customer contract 103 197 Billing rights 675 711 Total Non-current, net $ 778 $ 908 Total $ 4,454 $ 4,362 The increase in accounts and other receivable, net from December 31, 2017 is primarily attributable to higher receivables in our graphite electrode manufacturing business and Greenergy as a result of increased pricing in both businesses during the six months ended June 30, 2018 . Billing rights represent unbilled rights arising at BRK Ambiental from revenue earned from the construction on public concessions contracts classified as financial assets, which are recognized when there is an unconditional right to receive cash or other financial assets from the concession authority for the construction services. |
INVENTORY, NET
INVENTORY, NET | 6 Months Ended |
Jun. 30, 2018 | |
Inventories [Abstract] | |
INVENTORY, NET | INVENTORY, NET (US$ MILLIONS) June 30, 2018 December 31, 2017 Current Raw materials and consumables $ 111 $ 138 Fuel products (1) 634 612 Work in progress 115 94 RTFO certificates (2) 256 193 Finished goods and other (3) 138 31 Carrying amount of inventories $ 1,254 $ 1,068 ____________________________________ (1) Fuel products are traded in active markets and are purchased with a view to resale in the near future. As a result, stocks of fuel products are recorded at fair value based on quoted market prices. (2) $1 million of RTFO certificates ( December 31, 2017 : $60 million ) are held for trading and recorded at fair value. There is no externally quoted marketplace for the valuation of RTFO certificates. In order to value these contracts, the partnership has adopted a pricing methodology combining both observable inputs based on market data and assumptions developed internally based on observable market activity. (3) Finished goods and other is mainly composed of properties acquired in our real estate services business as well as some finished goods inventory in our industrial operations and construction services segments. The increase in inventory from December 31, 2017 is primarily attributable to an increase in fuel products on hand at Greenergy and increase in finished goods at our graphite electrode manufacturing business, combined with the acquisition of Schoeller Allibert. |
ASSETS HELD FOR SALE
ASSETS HELD FOR SALE | 6 Months Ended |
Jun. 30, 2018 | |
Assets And Liabilities Classified As Held For Sale [Abstract] | |
ASSETS HELD FOR SALE | ASSETS HELD FOR SALE (US$ MILLIONS) June 30, 2018 December 31, 2017 Accounts receivable, net $ 49 $ — Inventory 11 — Property, plant and equipment 36 14 Assets held for sale $ 96 $ 14 Accounts payable and other $ 15 $ — Liabilities associated with assets held for sale $ 15 $ — Industrial Operations - Infrastructure support products manufacturing During the three month period ended June 30, 2018 , our infrastructure support products manufacturing operation sold steel drainage assets for proceeds of $52 million . During the six month period ended June 30, 2018, in addition to the steel drainage assets, certain land and buildings were sold for proceeds of $82 million . An associated gain of $35 million and $51 million was recorded for the three and six month period ended June 30, 2018 . As at June 30, 2018 , our infrastructure support products manufacturing operation has certain assets and liabilities related to plants within the precast and drainage operations classified as held for sale. Management is actively seeking and negotiating with potential buyers and expects to complete the sale during the year ending December 31, 2018. Business Services - Real estate brokerage services In April 2018, Berkshire Hathaway exercised their one-way call option to acquire the partnership's 33% interest in the joint venture of the real estate brokerage services business, resulting in a $55 million pre-tax gain recognized by the partnership for the three and six month period ended June 30, 2018 . As at March 31, 2018, the partnership had classified the interest in the joint venture as held for sale. |
OTHER ASSETS
OTHER ASSETS | 6 Months Ended |
Jun. 30, 2018 | |
Subclassifications of assets, liabilities and equities [abstract] | |
OTHER ASSETS | OTHER ASSETS (US$ MILLIONS) June 30, 2018 December 31, 2017 Current Work in progress (1) $ 118 $ 195 Prepayments and other assets 327 235 Total current $ 445 $ 430 Non-current Prepayments and other assets $ 73 $ 79 Total non-current $ 73 $ 79 ____________________________________ (1) See Note 12 for additional information. |
EQUITY ACCOUNTED INVESTMENTS
EQUITY ACCOUNTED INVESTMENTS | 6 Months Ended |
Jun. 30, 2018 | |
Interests In Other Entities [Abstract] | |
EQUITY ACCOUNTED INVESTMENTS | EQUITY ACCOUNTED INVESTMENTS (US$ MILLIONS) June 30, 2018 December 31, 2017 Balance at beginning of year $ 609 $ 166 Adoption of new accounting standard (7 ) — Acquisitions through business combinations (1) (18 ) 231 Additions 8 208 Share of net income 10 69 Share of other comprehensive income/(loss) (3 ) (5 ) Distributions received (23 ) (59 ) Foreign currency translation (18 ) (1 ) Reclassification to assets held for sale and disposition of interest (2) (75 ) — Balance at end of period $ 483 $ 609 ____________________________________ (1) See Note 3 for additional information. (2) See Note 8 for additional information. On January 23, 2018, together with institutional partners, we closed our transaction with Ontario Lottery and Gaming Corporation, in partnership with our gaming partner, to operate and manage three gaming facilities in the Greater Toronto Area for a minimum period of 22 years . The acquisition of our gaming operations resulted in an addition of $8 million to equity accounted investments from December 31, 2017 . The equity accounted investment balance decreased as a result of the finalization of the provisional amounts related to the initial accounting for the acquisition of BRK Ambiental. For the six month period ended June 30, 2018 , the partnership received total distributions from equity accounted investments of $23 million , including a distribution of $15 million from our equity accounted investment within our energy segment. |
ACCOUNTS PAYABLE AND OTHER
ACCOUNTS PAYABLE AND OTHER | 6 Months Ended |
Jun. 30, 2018 | |
Subclassifications of assets, liabilities and equities [abstract] | |
ACCOUNTS PAYABLE AND OTHER | ACCOUNTS PAYABLE AND OTHER (US$ MILLIONS) June 30, 2018 December 31, 2017 Current Accounts payable $ 1,503 $ 1,451 Accrued and other liabilities (1) (2) 3,251 2,992 Work in progress (3) 650 341 Provisions and decommissioning liabilities 50 81 Total current $ 5,454 $ 4,865 Non-current Accounts payable $ 95 $ 113 Accrued and other liabilities (2) 438 435 Work in progress (3) 64 86 Provisions and decommissioning liabilities 134 139 Total non-current $ 731 $ 773 ____________________________________ (1) Includes bank overdrafts of $ 857 million as at June 30, 2018 ( December 31, 2017 : $581 million ). (2) Includes a defined benefit pension obligation of $42 million ( $1 million current and $41 million non-current) and a post-retirement benefit obligation of $28 million ( $2 million current and $26 million non-current) as at June 30, 2018 . (3) See Note 12 for additional information. The increase in accounts payable and other from December 31, 2017 is primarily attributable to an increase in short-term borrowings at Greenergy, the acquisition of Schoeller Allibert, and higher work in progress liabilities in our construction services business. |
CONTRACTS IN PROGRESS
CONTRACTS IN PROGRESS | 6 Months Ended |
Jun. 30, 2018 | |
Construction Contracts [Abstract] | |
CONTRACTS IN PROGRESS | CONTRACTS IN PROGRESS (US$ MILLIONS) June 30, 2018 December 31, 2017 Contract costs incurred to date $ 12,949 $ 12,129 Profit recognized to date (less recognized losses) 241 558 13,190 12,687 Less: progress billings (13,786 ) (12,919 ) Contract work in progress (liability) $ (596 ) $ (232 ) Comprising: Amounts due from customers — work in progress (current) $ 118 $ 195 Amounts due to customers — creditors (current / non-current) (714 ) (427 ) Net work in progress $ (596 ) $ (232 ) |
BORROWINGS
BORROWINGS | 6 Months Ended |
Jun. 30, 2018 | |
Financial Instruments [Abstract] | |
BORROWINGS | BORROWINGS Total current and non-current borrowings as at June 30, 2018 were $5,079 million ( December 31, 2017 : $3,265 million ). The increase of $1,814 million compared to December 31, 2017 is primarily attributable to a $2,250 million senior secured term loan put in place within our graphite electrode manufacturing business, of which $358 million was used to repay existing debt. Some of the partnership's businesses have credit facilities in which they borrow and repay on a monthly basis. This movement has been shown on a net basis in the partnership's unaudited interim condensed consolidated statements of cash flow. As described in Note 14, the partnership has in place, as at June 30, 2018 , a credit agreement with Brookfield ("Brookfield Credit Agreement") for a three -year revolving credit facility, with variable interest rates, that permits borrowings of up to $500 million for purposes of funding acquisitions and investments. As at June 30, 2018 , the credit facility under the Brookfield Credit Agreement remains undrawn. As at December 31, 2017, the partnership had a $250 million unsecured bilateral credit facility with a group of banks, available in U.S. or Canadian dollars, with advances bearing interest at the specified LIBOR or bankers' acceptance rate plus 2.75% , or the specified base rate or prime rate plus 1.75% . This facility had a maturity date of 2019 and was used for general corporate purposes. In May 2018, the partnership amended and restated the credit facility, increasing it by $475 million to $725 million across an expanded group of banks. In June 2018, the partnership further increased the credit facility by $100 million to $825 million . This amended credit facility is available in Euros, Sterling or Australian dollars, in addition to U.S. or Canadian dollars. Advances under this amended credit facility bear interest at the specified LIBOR, EURIBOR, CDOR, BBSY or bankers' acceptance rate plus 2.50% , or the specified base rate or prime rate plus 1.50% . The credit facility's maturity date was extended by two years to August 2021. As at June 30, 2018 , the facility remains undrawn and the partnership was in compliance with all covenants. The partnership has credit facilities within its operating businesses with major financial institutions. The credit facilities are primarily composed of revolving term credit facilities and revolving operating facilities with variable interest rates. In certain cases, the facilities may have financial covenants which are generally in the form of interest coverage ratios and leverage ratios. One of the partnership's real estate services businesses within our business services segment has a securitization program under which it transfers an undivided co-ownership interest in eligible receivables on a fully serviced basis, for cash proceeds, at their fair value under the terms of the agreement. While the sale of the co-ownership interest is considered a legal sale, the partnership has determined that the asset derecognition criteria has not been met as substantially all risk and rewards of ownership are not transferred. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2018 | |
Related Party [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS In the normal course of operations, the partnership entered into the transactions below with related parties on exchange value. These transactions have been measured at fair value and are recognized in the unaudited interim condensed consolidated financial statements. (a) Transactions with the parent company As at June 30, 2018 , $nil ( December 31, 2017 : $nil ) was drawn on the credit facilities under the Brookfield Credit Agreements. The partnership has in place a Deposit Agreement with Brookfield whereby it may place funds on deposit with Brookfield, as approved by the Board of Directors. Any deposit balance is due on demand and earns an agreed upon rate of interest based on market terms. As at June 30, 2018 , the amount of the deposit was $690 million ( December 31, 2017 : $384 million ) and was included in cash and cash equivalents. For the three and six months ended June 30, 2018 , the partnership earned interest income of $4 million and $7 million , respectively ( June 30, 2017 : $1 million and $3 million , respectively) on these deposits. The partnership pays Brookfield a quarterly base management fee. For purposes of calculating the base management fee, the total capitalization of Brookfield Business Partners L.P. is equal to the quarterly volume-weighted average trading price of a unit on the principal stock exchange for the partnership units (based on trading volumes) multiplied by the number of units outstanding at the end of the quarter (assuming full conversion of the redemption-exchange units into units of Brookfield Business Partners L.P.), plus the value of securities of the other Service Recipients that are not held by the partnership, plus all outstanding third party debt with recourse to a Service Recipient, less all cash held by such entities. The base management fee for the three and six month period ended June 30, 2018 was $13 million and $26 million , respectively ( June 30, 2017 : $7 million and $13 million , respectively). In its capacity as the holder of the special limited partner (“Special LP”) units of Holding LP, Brookfield is entitled to incentive distribution rights. The incentive distribution for the three and six months ended June 30, 2018 was $41 million and $184 million ( June 30, 2017 : $nil and $nil ). The partnership previously entered into a number of hedges of net investments in foreign operations with Brookfield, all of which were settled as at December 31, 2017 . For the three and six month period ended June 30, 2018 , unrealized gains of $nil ( June 30, 2017 : $5 million ) and realized losses of $nil ( June 30, 2017 : $ 9 million loss), respectively, were recorded. In addition, at the time of spin-off, the partnership entered into indemnity agreements with Brookfield that relate to certain projects in certain regions that were in place prior to the spin-off. Under these indemnity agreements, Brookfield has agreed to indemnify us for the receipt of payments relating to such projects. (b) Other The following table summarizes other transactions the partnership has entered into with related parties: Three Months Ended Six Months Ended (US$ MILLIONS) June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Transactions during the period Construction revenues $ 122 $ 83 $ 224 $ 161 (US$ MILLIONS) June 30, 2018 December 31, 2017 Balances at end of period Accounts receivable $ 53 $ 64 Accounts payable and other $ 93 $ 106 |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2018 | |
Financial Instruments [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS The partnership's activities expose it to a variety of financial risks, including market risk (currency risk, interest rate risk, commodity risk and other price risks), credit risk and liquidity risk. The partnership and its subsidiaries selectively use derivative financial instruments principally to manage these risks. The aggregate notional amounts of the partnership's derivative positions were as follows as at: (US$ MILLIONS) June 30, 2018 December 31, 2017 Total foreign exchange contracts (1) $ 1,597 $ 1,243 ____________________________________ (1) Notional amounts are presented on a net basis for those derivative instruments that are offset. The increase in the notional amounts of the foreign exchange contracts is primarily attributable to an increase in the notional amounts of net investment hedges covering our facilities management business, returnable plastic packaging business, and energy business. |
EQUITY
EQUITY | 6 Months Ended |
Jun. 30, 2018 | |
Equity [abstract] | |
EQUITY | EQUITY For the three and six month period ended June 30, 2018 , the partnership distributed dividends to limited partner, general partner and redemption-exchange unitholders of $8 million and $16 million , respectively, or approximately $0.0625 per partnership unit ( June 30, 2017 : $7 million and $14 million , respectively). For the three and six month period ended June 30, 2018 , the partnership distributed to others who have interests in the operating subsidiaries $917 million and $1,658 million , respectively, primarily resulting from the dividends received from our graphite electrode manufacturing business ( June 30, 2017 : $84 million and $307 million , respectively). There was no change in the number of units issued and outstanding during the six month period ended June 30, 2018 . (a) Earnings per limited partner unit Net income attributable to limited partnership unitholders was $40 million and $5 million for the three and six month period ended June 30, 2018 . The weighted average number of limited partnership units was 66 million for the three and six month period ended June 30, 2018 (June 30, 2017: 52 million ). (b) Incentive distribution to Special Limited Partnership Units In its capacity as the holder of the special limited partnership units of Holding LP, Brookfield is entitled to incentive distribution rights which are based on a 20% increase in the unit price of the partnership over an initial threshold based on the volume-weighted average price of the units, subject to a high water mark. A distribution of $41 million and $184 million ( June 30, 2017 : $ nil and $ nil ) was declared during the three and six month period ended June 30, 2018 . The threshold was reset to $38.31 /unit. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of analysis of other comprehensive income by item [abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (a) Attributable to Limited Partners (US$ MILLIONS) Foreign currency translation FVOCI Other (1) Accumulated other comprehensive income (loss) Balance as at January 1, 2018 $ (111 ) $ 6 $ (7 ) $ (112 ) Other comprehensive income (loss) (49 ) 7 11 (31 ) Balance as at June 30, 2018 $ (160 ) $ 13 $ 4 $ (143 ) ____________________________________ (1) Represents net investment hedges, cash flow hedges and other reserves. (US$ MILLIONS) Foreign currency translation Available for sale Other (1) Accumulated other comprehensive income (loss) Balance as at January 1, 2017 $ (148 ) $ 4 $ 3 $ (141 ) Other comprehensive income (loss) 19 — (11 ) 8 Balance as at June 30, 2017 $ (129 ) $ 4 $ (8 ) $ (133 ) ____________________________________ (1) Represents net investment hedges, cash flow hedges and other reserves. (b) Attributable to Non-controlling interest — Redemption-Exchange Units held by Brookfield Asset Management Inc. (US$ MILLIONS) Foreign currency translation FVOCI Other (1) Accumulated other comprehensive income (loss) Balance as at January 1, 2018 $ (165 ) $ 4 $ (4 ) $ (165 ) Other comprehensive income (loss) (47 ) 6 11 (30 ) Balance as at June 30, 2018 $ (212 ) $ 10 $ 7 $ (195 ) ____________________________________ (1) Represents net investment hedges, cash flow hedges and other reserves. (US$ MILLIONS) Foreign currency translation Available for sale Other (1) Accumulated other comprehensive income (loss) Balance as at January 1, 2017 $ (205 ) $ 2 $ 6 $ (197 ) Other comprehensive income (loss) 20 — (11 ) 9 Balance as at June 30, 2017 $ (185 ) $ 2 $ (5 ) $ (188 ) ____________________________________ (1) Represents net investment hedges, cash flow hedges and other reserves. |
DIRECT OPERATING COSTS
DIRECT OPERATING COSTS | 6 Months Ended |
Jun. 30, 2018 | |
Analysis of income and expense [abstract] | |
DIRECT OPERATING COSTS | DIRECT OPERATING COSTS The partnership has no key employees or directors and does not remunerate key management personnel. Key decision makers of the partnership are all employees of the ultimate parent company or its subsidiaries, which provides management services under the master services agreement with Brookfield. Direct operating costs include all attributable expenses except interest, depreciation and amortization, impairment expense, other expenses, and taxes and primarily relate to cost of sales and compensation. The following table lists direct operating costs for the three and six months ended June 30, 2018 , and June 30, 2017 by nature: Three Months Ended Six Months Ended (US$ MILLIONS) June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Cost of sales $ 7,739 $ 4,278 $ 14,915 $ 5,786 Compensation 449 369 903 729 Property taxes, sales taxes and other 12 26 31 32 Total $ 8,200 $ 4,673 $ 15,849 $ 6,547 Inventories recognized as expenses during the three and six month period ended June 30, 2018 amounted to $ 5,160 million and $9,801 million , respectively ( June 30, 2017 : $ 2,479 million and $2,657 million ). |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2018 | |
Operating Segments [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION Our operations are organized into five operating segments which are regularly reviewed by our Chief Operating Decision Maker (the "CODM") for the purpose of allocating resources to the segment and to assess its performance. The key measures used by the CODM in assessing performance and in making resource allocation decisions are company funds from operations, or Company FFO and Company EBITDA. Company FFO is calculated as net income excluding the impact of depreciation and amortization, deferred income taxes, breakage and transaction costs, non-cash valuation gains or losses and other items. When determining Company FFO, we include our proportionate share of Company FFO of equity accounted investment. Company FFO is further adjusted as Company EBITDA to exclude the impact of realized disposition gains (losses), interest expenses, current income taxes, and realized disposition gains, current income taxes and interest expenses related to equity accounted investments. Three Months Ended June 30, 2018 Total attributable to the partnership (US$ MILLIONS) Business Services Construction Services Industrial Operations Energy Corporate and Other Total Revenues $ 6,726 $ 1,133 $ 855 $ 57 $ 4 $ 8,775 Direct operating costs (6,603 ) (1,108 ) (438 ) (49 ) (2 ) (8,200 ) General and administrative expenses (61 ) (11 ) (49 ) (5 ) (16 ) (142 ) Equity accounted Company EBITDA (3) 7 — 4 52 — 63 Company EBITDA attributable to others (4) (46 ) — (264 ) (4 ) — (314 ) Company EBITDA (1) 23 14 108 51 (14 ) 182 Realized disposition gain/(loss), net 55 — 35 — — 90 Interest expense (22 ) — (55 ) (6 ) — (83 ) Realized disposition gain, current income taxes and interest expenses related to equity accounted investment (3) (1 ) — (1 ) (18 ) — (20 ) Current income taxes (13 ) (9 ) (29 ) (1 ) — (52 ) Company FFO attributable to others (net of Company EBITDA attributable to others) (4) 19 — 36 5 — 60 Company FFO (1) 61 5 94 31 (14 ) 177 Depreciation and amortization expense (2) (105 ) Impairment expense, net — Other income (expense), net (7 ) Deferred income taxes 39 Non-cash items attributable to equity accounted investments (3) (50 ) Non-cash items attributable to others (4) 65 Net income (loss) attributable to unitholders (1) $ 119 ____________________________________ (1) Company EBITDA, Company FFO and net income attributable to unitholders include Company EBITDA, Company FFO, and net income attributable to limited partnership unitholders, general partnership unitholders, redemption-exchange unitholders and special limited partnership unitholders. (2) For the three month period ended June 30, 2018 , depreciation and amortization by segment is as follows: Business Services $ 29 million , Construction Services $ 5 million , Industrial Operations $ 53 million , Energy $ 18 million , and Corporate and Other $ nil . (3) The sum of these amounts equates to equity accounted loss of $7 million . (4) Total cash and non-cash items attributable to the interest of others equals net gain of $189 million as per the unaudited interim condensed consolidated statements of operating results. Six Months Ended June 30, 2018 Total attributable to the partnership (US$ MILLIONS) Business Services Construction Services Industrial Operations Energy Corporate and Other Total Revenues $ 13,030 $ 2,176 $ 1,602 $ 154 $ 7 $ 16,969 Direct operating costs (12,817 ) (2,128 ) (791 ) (109 ) (4 ) (15,849 ) General and administrative expenses (118 ) (21 ) (79 ) (10 ) (32 ) (260 ) Equity accounted Company EBITDA (3) 15 — 9 98 — 122 Company EBITDA attributable to others (4) (71 ) — (514 ) (24 ) — (609 ) Company EBITDA (1) 39 27 227 109 (29 ) 373 Realized disposition gain 55 — 51 — — 106 Interest expense (41 ) — (114 ) (14 ) — (169 ) Realized disposition gain, current income taxes and interest expenses related to equity accounted investments (3) (1 ) — (2 ) (36 ) — (39 ) Current income taxes (17 ) (13 ) (49 ) (1 ) — (80 ) Company FFO attributable to others (net of Company EBITDA attributable to others) (4) 34 — 79 11 — 124 Company FFO (1) 69 14 192 69 (29 ) 315 Depreciation and amortization expense (2) (211 ) Impairment expense, net — Other income (expense), net (21 ) Deferred income taxes 29 Non-cash items attributable to equity accounted investments (3) (73 ) Non-cash items attributable to others (4) 154 Net income (loss) attributable to unitholders (1) $ 193 ____________________________________ (1) Company EBITDA, Company FFO and net income attributable to unitholders include Company EBITDA, Company FFO, and net income attributable to limited partnership unitholders, general partnership unitholders, redemption-exchange unitholders and special limited partnership unitholders. (2) For the six month period ended June 30, 2018, depreciation and amortization by segment is as follows; Business Services $57 million , Construction Services $10 million , Industrial Operations $106 million , Energy $38 million , and Corporate and Other $ nil . (3) The sum of these amounts equates to equity accounted income of $10 million . (4) Total cash and non-cash items attributable to the interest of others equals net gain of $331 million as per the unaudited interim condensed consolidated statements of operating results. Three Months Ended June 30, 2017 Total attributable to the partnership (US$ MILLIONS) Business Services Construction Services Industrial Operations Energy Corporate and Other Total Revenues $ 3,273 $ 1,125 $ 406 $ 64 $ 2 $ 4,870 Direct operating costs (3,207 ) (1,104 ) (316 ) (45 ) (1 ) (4,673 ) General and administrative expenses (30 ) (11 ) (22 ) (4 ) (9 ) (76 ) Equity accounted Company EBITDA (3) 11 — 1 12 — 24 Company EBITDA attributable to others (4) (26 ) — (53 ) (12 ) — (91 ) Company EBITDA (1) 21 10 16 15 (8 ) 54 Realized disposition gain/(loss), net 1 — 8 — — 9 Interest expense (9 ) — (34 ) (7 ) — (50 ) Realized disposition gain, current income taxes and interest expenses related to equity accounted investment (3) — — — (1 ) — (1 ) Current income taxes (4 ) 2 (5 ) — 3 (4 ) Company FFO attributable to others (net of Company EBITDA attributable to others) (4) 8 — 23 4 — 35 Company FFO (1) 17 12 8 11 (5 ) 43 Depreciation and amortization expense (2) (88 ) Impairment expense, net (23 ) Other income (expense), net (9 ) Deferred income taxes 4 Non-cash items attributable to equity accounted investments (3) (9 ) Non-cash items attributable to others (4) 76 Net income (loss) attributable to unitholders (1) $ (6 ) ____________________________________ (1) Company EBITDA, Company FFO and net income attributable to unitholders include Company EBITDA, Company FFO, and net income attributable to limited partnership unitholders, general partnership unitholders, redemption-exchange unitholders and special limited partnership unitholders. (2) For the three month period ended June 30, 2017 , depreciation and amortization by segment is as follows: Business Services $ 13 million , Construction Services $ 7 million , Industrial Operations $ 44 million , Energy $ 24 million , and Corporate and Other $ nil . (3) The sum of these amounts equates to equity accounted income of $14 million . (4) Total cash and non-cash items attributable to the interest of others equals net loss of $20 million as per the unaudited interim condensed consolidated statements of operating results. Six Months Ended June 30, 2017 Total attributable to the partnership (US$ MILLIONS) Business Services Construction Services Industrial Operations Energy Corporate and Other Total Revenues $ 3,889 $ 2,141 $ 637 $ 133 $ 4 $ 6,804 Direct operating costs (3,790 ) (2,124 ) (535 ) (96 ) (2 ) (6,547 ) General and administrative expenses (53 ) (22 ) (37 ) (8 ) (18 ) (138 ) Equity accounted Company EBITDA (3) 15 — 1 26 — 42 Company EBITDA attributable to others (4) (40 ) 1 (51 ) (24 ) — (114 ) Company EBITDA (1) 21 (4 ) 15 31 (16 ) 47 Realized disposition gain/(loss), net 6 2 237 36 — 281 Interest expense (13 ) — (43 ) (13 ) — (69 ) Realized disposition gain, current income taxes and interest expenses related to equity accounted investment (3) — — — (2 ) — (2 ) Current income taxes (4 ) 12 (13 ) (1 ) 6 — Company FFO attributable to others (net of Company EBITDA attributable to others) (4) 11 (1 ) (109 ) (20 ) — (119 ) Company FFO (1) 21 9 87 31 (10 ) 138 Depreciation and amortization expense (2) (153 ) Impairment expense, net (30 ) Other income (expense), net 5 Deferred income taxes — Non-cash items attributable to equity accounted investments (3) (16 ) Non-cash items attributable to others (4) 116 Net income (loss) attributable to unitholders (1) $ 60 (1) Company EBITDA, Company FFO and net income attributable to unitholders include Company EBITDA, Company FFO, and net income attributable to limited partnership unitholders, general partnership unitholders, redemption-exchange unitholders and special limited partnership unitholders. (2) For the six month period ended June 30, 2017 , depreciation and amortization by segment is as follows: Business Services $ 22 million , Construction Services $ 12 million , Industrial Operations $ 69 million , Energy $ 50 million , and Corporate and Other $ nil . (3) The sum of these amounts equates to equity accounted income of $24 million . (4) Total cash and non-cash items attributable to the interest of others equals net gain of $117 million as per the unaudited interim condensed consolidated statements of operating results. For the purpose of monitoring segment performance and allocating resources between segments, the CODM monitors the assets, including investments accounted for using the equity method, attributable to each segment. The following is an analysis of the partnership's assets by reportable operating segment as at June 30, 2018 and December 31, 2017 : As at June 30, 2018 Total attributable to the partnership (US$ MILLIONS) Business Services Construction Services Industrial Operations Energy Corporate and Other Total Total assets $ 5,361 $ 2,671 $ 6,388 $ 1,686 $ 935 $ 17,041 As at December 31, 2017 Total attributable to the partnership (US$ MILLIONS) Business Services Construction Services Industrial Operations Energy Corporate and Other Total Total assets $ 5,246 $ 2,653 $ 5,839 $ 1,671 $ 395 $ 15,804 |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 6 Months Ended |
Jun. 30, 2018 | |
Cash Flow Statement [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION Six Months Ended (US$ MILLIONS) June 30, 2018 June 30, 2017 Interest paid $ 94 $ 41 Income taxes paid $ 30 $ 20 Amounts paid and received for interest were reflected as operating cash flows in the unaudited interim condensed consolidated statements of cash flow. Details of "Changes in non-cash working capital, net" on the unaudited interim condensed consolidated statements of cash flow are as follows: Six Months Ended (US$ MILLIONS) June 30, 2018 June 30, 2017 Accounts receivable $ (324 ) $ 10 Inventory (73 ) (32 ) Prepayments and other (79 ) 22 Accounts payable and other (38 ) (370 ) Changes in non-cash working capital, net $ (514 ) $ (370 ) |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2018 | |
Events After Reporting Period [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS (a) Distribution On August 2, 2018, the Board of Directors declared a quarterly distribution in the amount of $0.0625 per unit, payable on September 28, 2018 to unitholders of record as at the close of business on August 31, 2018. (b) Acquisition of Teekay Offshore Partners In July 2018, the partnership supported Teekay Offshore to complete a $500 million bond offering which yields 8.5% and comes due in 2023. The partnership subscribed for $226 million of this bond, utilizing cash on hand. Concurrently, a $200 million promissory note due from Teekay Offshore was converted into the same series of bonds. The partnership's share was $84 million . On July 3, 2018, the partnership exercised its general partner option to acquire an additional 2% ownership interest in Teekay Offshore’s General Partner, Teekay Offshore GP. Prior to July 3, 2018, the partnership owned a 60% economic interest in Teekay Offshore which was accounted for using the equity method, and a 49% voting interest in Teekay Offshore GP. As a result of the exercise of the option, the partnership's voting interest in Teekay Offshore GP increased to 51% and the partnership has the right to appoint a majority of the members of its board of directors, which provides the partnership with control over the business. Accordingly, the partnership will start to consolidate the business on that date. Due to the recent exercise of the general partner option, the complete valuation and initial purchase price accounting for the business combination is not available as at the date of release of these unaudited interim condensed consolidated financial statements. As a result, the partnership has not provided amounts recognized as at the acquisition date for certain major classes of assets acquired and liabilities assumed. (c) Acquisition of Westinghouse Electric Company On August 1, 2018, the partnership, together with institutional partners, completed the acquisition of Westinghouse Electric Company ("Westinghouse") for a purchase price of approximatively $4 billion . The transaction was funded with approximately $920 million of equity, of which $405 million , for a 44% ownership interest, is attributable to the partnership. The remaining capital was funded with $3.1 billion of long-term debt financing. Due to the recent closing of the acquisition, the complete valuation and initial purchase price accounting for the business combination is not available as at the date of release of these unaudited interim condensed consolidated financial statements. As a result, the partnership has not provided amounts recognized as at the acquisition date for certain major classes of assets acquired and liabilities assumed. (d) GrafTech secondary offering and concurrent share buyback In August, our graphite electrode manufacturing business, GrafTech, completed a secondary offering of its common stock and a concurrent share repurchase from Brookfield. The offering and share repurchase generated proceeds of $668 million , or $230 million attributable to the partnership. Also, in connection with the offering a 30 day over-allotment option was granted to the underwriters to purchase 3,450,000 additional shares. |
SIGNIFICANT ACCOUNTING POLICI28
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
New accounting policies adopted | The partnership has applied new and revised standards issued by the IASB that are effective for the period beginning on or after January 1, 2018. Revenue from Contracts with Customers IFRS 15, Revenue from Contracts with Customers ("IFRS 15") specifies how and when revenue should be recognized as well as requiring additional disclosures. IFRS 15 requires disclosure regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. IFRS 15 supersedes IAS 18, Revenue , IAS 11, Construction Contracts and a number of revenue-related interpretations. IFRS 15 applies to nearly all contracts with customers: the main exceptions are leases, financial instruments and insurance contracts. The partnership adopted the standard using the modified retrospective approach, in which a cumulative catch-up adjustment is recorded through opening retained earnings on January 1, 2018 as if the standard had always been in effect and whereby comparative periods are not restated. The partnership elected to use the practical expedient for contract modifications. On adoption, the partnership recorded a reduction in opening retained earnings of approximatively $260 million, attributable to the partnership net of taxes, mainly from our construction services business. Under IFRS 15, revenue from the partnership’s construction services contracts will continue to be recognized over time; however, a higher threshold of probability must be achieved prior to recognizing revenue from variable consideration such as incentives and claims and variations resulting from contract modifications. Under IAS 18 and IAS 11, revenue was recognized when it is probable that work performed will result in revenue whereas under IFRS 15, revenue is recognized when it is highly probable that a significant reversal of revenue will not occur for these modifications. Refer to Note 2(c) for impact on adoption of IFRS 15. (i) Financial Instruments In July 2014, the IASB issued the final publication of IFRS 9, Financial Instruments ("IFRS 9") superseding the current IAS 39, Financial Instruments: Recognition and Measurement . IFRS 9 establishes principles for the financial reporting of financial assets and financial liabilities that will present relevant and useful information to users of financial statements for their assessment of the amounts, timing and uncertainty of an entity's future cash flows. This new standard also includes a new general hedge accounting standard which will align hedge accounting more closely with an entity's risk management activities. It does not fully change the types of hedging relationships or the requirement to measure and recognize ineffectiveness, however, it will provide more hedging strategies that are used for risk management to qualify for hedge accounting and introduce greater judgment to assess the effectiveness of a hedging relationship. The partnership adopted the standard using the retrospective approach without restatement, in which a cumulative catch-up adjustment is recorded through opening retained earnings on January 1, 2018 as if the standard had always been in effect and whereby comparative periods are not restated. On adoption, the partnership recorded an adjustment in opening retained earnings of $nil attributable to the partnership net of taxes. Refer to Note 2(e) for impact on adoption of IFRS 9. (ii) Foreign Currency Transactions and Advance Consideration In December 2016, the IASB issued IFRIC 22, Foreign Currency Transactions and Advance Consideration ("IFRIC 22"), effective for annual reporting periods beginning on or after January 1, 2018. The interpretation clarifies that the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income (or part of it) is the date on which an entity initially recognizes the non-monetary asset or non-monetary liability arising from the payment or receipt of advance consideration. The interpretation may be applied either retrospectively or prospectively. The adoption of IFRIC 22 did not have a significant impact on the unaudited interim condensed consolidated financial statements. |
Impairment | The partnership assesses on a forward-looking basis the expected credit losses associated with its debt instruments carried at amortized cost and FVOCI. The impairment methodology applied depends on whether there has been a significant increase in credit risk. Impairment charges are recognized in profit or loss based on the expected credit loss model. |
Revenue recognition | Construction Services Construction Services Our construction services business provides end-to-end design and development solutions for our customers. The work performed on these contracts creates or enhances an asset that our customer controls and accordingly we recognize revenue on these contracts over a period of time. The partnership uses an input method, the cost-to-cost method, to measure progress towards complete satisfaction of the performance obligations under IFRS 15. As work is performed, a contract asset in the form of work-in-progress is recognized, which is reclassified to accounts receivable when invoiced to the customer. If payment is received in advance of work being completed, a contract liability is recognized. There is not considered to be a significant financing component in construction contracts as the period between the recognition of revenue under the cost-to-cost method and when payment is received is typically less than one year. IFRS 15 requires a highly probable criterion with regards to recognizing revenue arising from variable consideration and contract modification and claims. For variable consideration, revenue is only to be recognized to the extent that it is highly probable that a significant reversal in the amount of revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Business Services Fuel Distribution & Marketing The fees and related costs for providing road fuel distribution and marketing are recognized at a point in time when the services are provided. Revenue from the sale of goods in our UK road fuel service operation represents net invoiced sales of fuel products and Renewable Transport Fuel Obligation ("RTFO") certificates, excluding value added taxes but including excise duty, which has been assessed to be a production tax and recorded as part of consideration received. Revenue is recognized at the point that title passes to the customer. Facilities Management The fees and related costs for providing facilities management services are recognized over the time in which the services are provided. Real Estate Services The fees and related costs for providing real estate and logistics services are recognized over the time in which the services are provided. Associated with the delivery of certain service contracts, our partnership also earns revenue from home sale transactions and referral fees from suppliers utilized in servicing these contracts. These revenue transactions are recognized as follows: • Home Sale: The partnership earns home sale revenue from two types of contracts: cost-plus home sale and fixed fee home sale contracts. Under a cost-plus home sale contract, the partnership earns a performance fee and bears no risk of loss with respect to costs incurred. Revenues and related costs associated with the purchase and resale of residences under cost-plus contracts are recognized on a net basis over the period in which services are provided as control over the home does not pass onto the partnership. Under a fixed fee home sale contract, the partnership earns a fixed fee based upon a percentage of the acquisition cost of the residential property. This fee revenue is recognized when the home is acquired by the customer as the partnership’s performance obligation is complete at this time. The revenues and expenses related to the home sale itself are recorded on a gross basis. • Referral fees: The partnership earns referral fees from various suppliers who provide services to customers through our service offerings. A significant portion of the referral fee revenue is generated from the closing of a home sale or purchase transaction, under which the partnership earns a percentage of the commissions received by the real estate agent on the purchase or sale of a home by the customer. Referral fees from home purchases or sales are recognized upon the closing date of the real estate transaction. The partnership recognizes referral fees from other suppliers upon completion of the services. Industrial Operations Manufacturing Sales of goods are recognized at a point in time when the product is shipped and control passes to the customer. Services revenues are recognized over time when the services are provided. Mining Revenue from our mining business is made under provisional pricing arrangements. Revenue from the sale of palladium and by-product metals is provisionally recognized based on quoted market prices upon the delivery of concentrate to the smelter or designated shipping point, which is when significant rights and obligations of ownership pass and title and control is transferred. The business’ smelter contract provides for final prices to be determined by quoted market prices in a period subsequent to the date of concentrate delivery. The period between provisional invoicing and final pricing, or settlement period, is typically between 30 and 150 days . The fair value of the final sales price adjustment is re-estimated by reference to forward market prices at each period end and changes in fair value are recognized as an adjustment to revenue. As a result, the accounts receivable amounts related to this business are recorded at fair value. Energy Energy Commodities and Services Revenue from the sale of oil and gas is recognized at a point in time when title and control of the product passes to an external party, based on volumes delivered and contractual delivery points and prices. Revenue for the production in which the partnership has an interest with other producers is recognized based on the partnership’s working interest. Revenue is measured net of royalties to reflect the deduction for other parties’ proportionate share of the revenue. Revenue from the rendering of services is recognized at a point in time when significant rights and obligations of ownership pass and title and control is transferred. Remaining Performance Obligations Construction Services Backlog is defined as revenue yet to be delivered (i.e. remaining performance obligations) on construction projects that have been secured via an executed contract, work order, or letter of intent. The total backlog for our construction services operations equates to approximately two years of activity. Industrial Operations Our Brazilian water treatment and distribution operation is party to certain remaining performance obligations which have a duration of more than one year. The most significant remaining performance obligations at January 1, 2018 relate to the service concession arrangements with various municipalities which have an average term of 25 years . |
Financial instruments and hedge accounting | The partnership selectively utilizes derivative financial instruments primarily to manage financial risks, including commodity price risk and foreign exchange risks. Derivative financial instruments are recorded at fair value. Hedge accounting is applied when the derivative is designated as a hedge of a specific exposure and there is assurance that it will continue to be highly effective as a hedge based on an expectation of offsetting cash flows or fair value. Hedge accounting is discontinued prospectively when the derivative no longer qualifies as a hedge or the hedging relationship is terminated. Once discontinued, the cumulative change in fair value of a derivative that was previously recorded in other comprehensive income by the application of hedge accounting is recognized in profit or loss over the remaining term of the original hedging relationship as amounts related to the hedged item are recognized in profit or loss. The assets or liabilities relating to unrealized mark-to-market gains and losses on derivative financial instruments are recorded in financial assets and financial liabilities, respectively. (i) Items classified as hedges Realized and unrealized gains and losses on foreign exchange contracts and foreign currency debt that are designated as hedges of currency risks relating to a net investment in a subsidiary with a functional currency other than the U.S. dollar are included in equity and are included in net income in the period in which the subsidiary is disposed of or to the extent partially disposed and control is not retained. Derivative financial instruments that are designated as hedges to offset corresponding changes in the fair value of assets and liabilities and cash flows are measured at estimated fair value with changes in fair value recorded in profit or loss or as a component of equity, as applicable. Unrealized gains and losses on interest rate contracts designated as hedges of future variable interest payments are included in equity as a cash flow hedge when the interest rate risk relates to an anticipated variable interest payment. The periodic exchanges of payments on interest rate swap contracts designated as hedges of debt are recorded on an accrual basis as an adjustment to interest expense. The periodic exchanges of payments on interest rate contracts designated as hedges of future interest payments are amortized into profit or loss over the term of the corresponding interest payments. (ii) Items not classified as hedges Derivative financial instruments that are not designated as hedges are recorded at estimated fair value, and gains and losses arising from changes in fair value are recognized in net income in the period the changes occur. Realized and unrealized gains on other derivatives not designated as hedges are recorded in other income (expenses), net. Classification & Measurement The table below summarizes the partnership’s classification and measurement of financial assets and liabilities, on adoption of IFRS 9: Classification Measurement Statement of Financial Position Account Financial assets Cash and cash equivalents Debt Amortized cost Cash and cash equivalents Accounts receivable Debt Amortized cost / FVTPL Accounts and other receivable, net Restricted cash Debt Amortized cost Financial assets Equity securities Equity FVTPL / FVOCI Financial assets Debt securities Debt FVTPL / FVOCI / Amortized cost Financial assets Derivative assets Derivatives FVTPL (1) Financial assets Other financial assets Debt / Equity Amortized cost / FVTPL/ FVOCI Financial assets Financial liabilities Borrowings Debt Amortized cost Borrowings Accounts payable and other Debt Amortized cost Accounts payable and other Derivative liabilities Derivatives FVTPL (1) Accounts payable and other __________________________ (1) Derivatives are classified and measured at FVTPL except those designated in hedging relationships. The classification depends on the specific business model for managing the financial instruments and the contractual terms of the cash flows. The partnership maintains a portfolio of marketable securities comprised of equity and debt securities. The marketable securities are recognized on their trade date. They are subsequently measured at fair value at each reporting date with the change in fair value recorded in either profit or loss ("FVTPL") or other comprehensive income ("FVOCI"). For investments in debt instruments, this will depend on the business model in which the investment is held. At initial recognition, the partnership measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss. Financial assets are classified as amortized cost based on their nature and use within the partnership’s business. Financial assets classified as amortized cost are recorded initially at fair value, then subsequently measured at amortized cost using the effective interest method, less any impairment. |
Fair value measurement | Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the partnership takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value measurement is disaggregated into three hierarchical levels: Level 1, 2 or 3. Fair value hierarchical levels are directly based on the degree to which the inputs to the fair value measurement are observable. The levels are as follows: Level 1 - Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 - Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the asset’s or liability’s anticipated life. Level 3 - Inputs are unobservable and reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs in determining the estimate. |
Summary of impact upon adoption of IFRS 9 and Future changes in accounting policies | Summary of impact upon adoption of IFRS 9 - Classification and Measurement The table below illustrates the classification and measurement of financial assets under IFRS 9 and IAS 39 at the date of initial application. A similar table for financial liabilities has not been prepared because there have not been any reclassifications and remeasurements within financial liabilities. The following table is as at January 1, 2018: (US$ MILLIONS) FVTPL FVOCI Amortized Cost Total Opening balance (IAS 39) $ 166 $ 429 $ 5,852 $ 6,447 Reclassifications 211 (211 ) — — Revised opening balance (IFRS 9) $ 377 $ 218 $ 5,852 $ 6,447 The following paragraphs explain how applying the new classification requirements of IFRS 9 led to changes in classification of certain financial assets held by the partnership as shown in the table above. Instruments reclassified from Available for Sale (IAS 39) to FVTPL (IFRS 9): Debt Instruments previously classified as available for sale but which fail the Solely for Payment, Principal and Interest ("SPPI") test The partnership held secured debentures and contractual rights which were reclassified from available for sale to FVTPL for $187 million . Under IFRS 9, the debentures and contractual rights do not meet the criteria to be classified as at amortized cost or FVOCI because their cash flows do not represent solely payments of principal and interest. Related fair value gains of $3 million attributable to the partnership net of taxes were transferred from the available for sale reserve to retained earnings on January 1, 2018. Equity instruments previously classified as available for sale and for which FVOCI election is not made The partnership held an equity instrument which was reclassified from available for sale to FVTPL for $24 million . Related fair value losses of $3 million attributable to the partnership net of taxes were transferred from the available for sale reserve to retained earnings on January 1, 2018. Summary of impact upon adoption of IFRS 9 - Impairment The partnership's opening loss allowances in accordance with IAS 39 do not differ materially from the partnership's opening expected credit losses ("ECL") determined in accordance with IFRS 9, as at January 1, 2018. Summary of impact upon adoption of IFRS 9 - Derivatives and hedging activities In accordance with IFRS 9’s transition provisions for hedge accounting, the partnership has applied the IFRS 9 hedge accounting requirements prospectively from the date of initial application on January 1, 2018. The partnership’s qualifying hedging relationships in place as at January 1, 2018 also qualified for hedge accounting in accordance with IFRS 9 and were therefore regarded as continuing hedging relationships. (f) Future changes in accounting policies (i) Leases In January 2016, the IASB published a new standard, IFRS 16 Leases ("IFRS 16"). The new standard brings most leases on the balance sheet, eliminating the distinction between operating and finance leases. Lessor accounting, however, remains largely unchanged and the distinction between operating and finance leases is retained. IFRS 16 supersedes IAS 17 Leases and related interpretations and is effective for periods beginning on or after January 1, 2019. The partnership has participated in strategic planning sessions with its subsidiaries and associates in order to provide guidance regarding the key considerations and to develop an adoption project plan. The partnership is completing its assessment of existing contractual arrangements to identify the existing population of lease arrangements that would be capitalized under the new standard. Next steps include performing an initial quantification of the existing obligations, assessing any potential impact to IT systems and internal controls and reviewing the additional disclosures required by the new standard. IFRS 16 can either be adopted on a full retrospective method or on a modified retrospective method whereby any transitional impact is recorded in equity as at January 1, 2019 and comparative periods are not restated. The partnership currently anticipates that the modified retrospective approach will be adopted and is currently in the process of evaluating a number of practical expedients available under the new standard. The partnership continues to evaluate the overall impact of IFRS 16 on its consolidated financial statements. (ii) Uncertainty over Income Tax Treatments In June 2017, the IASB published IFRIC 23, Uncertainty over Income Tax Treatments ("IFRIC 23") effective for annual periods beginning on or after January 1, 2019. The interpretation requires an entity to assess whether it is probable that a tax authority will accept an uncertain tax treatment used, or proposed to be used, by an entity in its income tax filings and to exercise judgment in determining whether each tax treatment should be considered independently or whether some tax treatments should be considered together. The decision should be based on which approach provides better predictions of the resolution of the uncertainty. An entity also has to consider whether it is probable that the relevant authority will accept each tax treatment, or group of tax treatments, assuming that the taxation authority with the right to examine any amounts reported to it will examine those amounts and will have full knowledge of all relevant information when doing so. The interpretation may be applied on either a fully retrospective basis or a modified retrospective basis without restatement of comparative information. The partnership is currently evaluating the impact of IFRIC 23 on its unaudited interim condensed consolidated financial statements. (US$ MILLIONS) Opening balance January 1, 2018 Adoption of new accounting standards Revised opening balance January 1, 2018 Assets Cash and cash equivalents $ 1,106 $ — $ 1,106 Financial assets 361 — 361 Accounts and other receivable, net 3,454 (98 ) 3,356 Inventory, net 1,068 4 1,072 Assets held for sale 14 — 14 Other assets 430 (60 ) 370 Current assets 6,433 (154 ) 6,279 Financial assets 423 — 423 Accounts and other receivable, net 908 (27 ) 881 Other assets 79 1 80 Property, plant and equipment 2,530 — 2,530 Deferred income tax assets 174 42 216 Intangible assets 3,094 — 3,094 Equity accounted investments 609 (6 ) 603 Goodwill 1,554 — 1,554 Total assets $ 15,804 $ (144 ) $ 15,660 Liabilities and equity Liabilities Accounts payable and other $ 4,865 $ 126 $ 4,991 Liabilities associated with assets held for sale — — — Borrowings 825 — 825 Current liabilities 5,690 126 5,816 Accounts payable and other 773 (5 ) 768 Borrowings 2,440 — 2,440 Deferred income tax liabilities 837 — 837 Total liabilities $ 9,740 $ 121 $ 9,861 Equity Limited partners $ 1,585 $ (132 ) $ 1,453 Non-controlling interests attributable to: Redemption-Exchange Units, Preferred Shares and Special Limited Partnership Units held by Brookfield Asset Management Inc. 1,453 (128 ) 1,325 Interest of others in operating subsidiaries 3,026 (5 ) 3,021 Total equity 6,064 (265 ) 5,799 Total liabilities and equity $ 15,804 $ (144 ) $ 15,660 |
SIGNIFICANT ACCOUNTING POLICI29
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Disclosure of expected impact of initial application of new standards or interpretations | Summary of impact upon adoption of IFRS 9 - Classification and Measurement The table below illustrates the classification and measurement of financial assets under IFRS 9 and IAS 39 at the date of initial application. A similar table for financial liabilities has not been prepared because there have not been any reclassifications and remeasurements within financial liabilities. The following table is as at January 1, 2018: (US$ MILLIONS) FVTPL FVOCI Amortized Cost Total Opening balance (IAS 39) $ 166 $ 429 $ 5,852 $ 6,447 Reclassifications 211 (211 ) — — Revised opening balance (IFRS 9) $ 377 $ 218 $ 5,852 $ 6,447 The following paragraphs explain how applying the new classification requirements of IFRS 9 led to changes in classification of certain financial assets held by the partnership as shown in the table above. Instruments reclassified from Available for Sale (IAS 39) to FVTPL (IFRS 9): Debt Instruments previously classified as available for sale but which fail the Solely for Payment, Principal and Interest ("SPPI") test The partnership held secured debentures and contractual rights which were reclassified from available for sale to FVTPL for $187 million . Under IFRS 9, the debentures and contractual rights do not meet the criteria to be classified as at amortized cost or FVOCI because their cash flows do not represent solely payments of principal and interest. Related fair value gains of $3 million attributable to the partnership net of taxes were transferred from the available for sale reserve to retained earnings on January 1, 2018. Equity instruments previously classified as available for sale and for which FVOCI election is not made The partnership held an equity instrument which was reclassified from available for sale to FVTPL for $24 million . Related fair value losses of $3 million attributable to the partnership net of taxes were transferred from the available for sale reserve to retained earnings on January 1, 2018. Summary of impact upon adoption of IFRS 9 - Impairment The partnership's opening loss allowances in accordance with IAS 39 do not differ materially from the partnership's opening expected credit losses ("ECL") determined in accordance with IFRS 9, as at January 1, 2018. Summary of impact upon adoption of IFRS 9 - Derivatives and hedging activities In accordance with IFRS 9’s transition provisions for hedge accounting, the partnership has applied the IFRS 9 hedge accounting requirements prospectively from the date of initial application on January 1, 2018. The partnership’s qualifying hedging relationships in place as at January 1, 2018 also qualified for hedge accounting in accordance with IFRS 9 and were therefore regarded as continuing hedging relationships. (f) Future changes in accounting policies (i) Leases In January 2016, the IASB published a new standard, IFRS 16 Leases ("IFRS 16"). The new standard brings most leases on the balance sheet, eliminating the distinction between operating and finance leases. Lessor accounting, however, remains largely unchanged and the distinction between operating and finance leases is retained. IFRS 16 supersedes IAS 17 Leases and related interpretations and is effective for periods beginning on or after January 1, 2019. The partnership has participated in strategic planning sessions with its subsidiaries and associates in order to provide guidance regarding the key considerations and to develop an adoption project plan. The partnership is completing its assessment of existing contractual arrangements to identify the existing population of lease arrangements that would be capitalized under the new standard. Next steps include performing an initial quantification of the existing obligations, assessing any potential impact to IT systems and internal controls and reviewing the additional disclosures required by the new standard. IFRS 16 can either be adopted on a full retrospective method or on a modified retrospective method whereby any transitional impact is recorded in equity as at January 1, 2019 and comparative periods are not restated. The partnership currently anticipates that the modified retrospective approach will be adopted and is currently in the process of evaluating a number of practical expedients available under the new standard. The partnership continues to evaluate the overall impact of IFRS 16 on its consolidated financial statements. (ii) Uncertainty over Income Tax Treatments In June 2017, the IASB published IFRIC 23, Uncertainty over Income Tax Treatments ("IFRIC 23") effective for annual periods beginning on or after January 1, 2019. The interpretation requires an entity to assess whether it is probable that a tax authority will accept an uncertain tax treatment used, or proposed to be used, by an entity in its income tax filings and to exercise judgment in determining whether each tax treatment should be considered independently or whether some tax treatments should be considered together. The decision should be based on which approach provides better predictions of the resolution of the uncertainty. An entity also has to consider whether it is probable that the relevant authority will accept each tax treatment, or group of tax treatments, assuming that the taxation authority with the right to examine any amounts reported to it will examine those amounts and will have full knowledge of all relevant information when doing so. The interpretation may be applied on either a fully retrospective basis or a modified retrospective basis without restatement of comparative information. The partnership is currently evaluating the impact of IFRIC 23 on its unaudited interim condensed consolidated financial statements. (US$ MILLIONS) Opening balance January 1, 2018 Adoption of new accounting standards Revised opening balance January 1, 2018 Assets Cash and cash equivalents $ 1,106 $ — $ 1,106 Financial assets 361 — 361 Accounts and other receivable, net 3,454 (98 ) 3,356 Inventory, net 1,068 4 1,072 Assets held for sale 14 — 14 Other assets 430 (60 ) 370 Current assets 6,433 (154 ) 6,279 Financial assets 423 — 423 Accounts and other receivable, net 908 (27 ) 881 Other assets 79 1 80 Property, plant and equipment 2,530 — 2,530 Deferred income tax assets 174 42 216 Intangible assets 3,094 — 3,094 Equity accounted investments 609 (6 ) 603 Goodwill 1,554 — 1,554 Total assets $ 15,804 $ (144 ) $ 15,660 Liabilities and equity Liabilities Accounts payable and other $ 4,865 $ 126 $ 4,991 Liabilities associated with assets held for sale — — — Borrowings 825 — 825 Current liabilities 5,690 126 5,816 Accounts payable and other 773 (5 ) 768 Borrowings 2,440 — 2,440 Deferred income tax liabilities 837 — 837 Total liabilities $ 9,740 $ 121 $ 9,861 Equity Limited partners $ 1,585 $ (132 ) $ 1,453 Non-controlling interests attributable to: Redemption-Exchange Units, Preferred Shares and Special Limited Partnership Units held by Brookfield Asset Management Inc. 1,453 (128 ) 1,325 Interest of others in operating subsidiaries 3,026 (5 ) 3,021 Total equity 6,064 (265 ) 5,799 Total liabilities and equity $ 15,804 $ (144 ) $ 15,660 |
Disclosure of disaggregation of revenue from contracts with customers | The tables below summarize our segment revenue by geography, and timing of revenue recognition for IFRS 15 revenue for the three months ending June 30, 2018: (US$ MILLIONS) Timing of Revenue Recognition Business Services Industrial Operations Construction Services Energy Corporate and Other Total Goods/services provided at a point in time $ 6,325 $ 781 $ 21 $ 54 $ — $ 7,181 Services transferred over a period of time 391 68 1,110 — — 1,569 Total IFRS 15 revenue $ 6,716 $ 849 $ 1,131 $ 54 $ — $ 8,750 Other non IFRS 15 revenue 10 6 2 3 4 25 Total revenue $ 6,726 $ 855 $ 1,133 $ 57 $ 4 $ 8,775 (US$ MILLIONS) Geography Business Services Industrial Operations Construction Services Energy Corporate and Other Total (1) United Kingdom $ 5,223 $ 23 $ 389 $ — $ — $ 5,635 Canada 953 143 21 54 — 1,171 Australia 84 — 623 — — 707 Brazil 164 212 — — — 376 USA 100 112 — — — 212 Middle East (2) 1 1 98 — — 100 Other 191 358 — — — 549 Total IFRS 15 revenue $ 6,716 $ 849 $ 1,131 $ 54 $ — $ 8,750 __________________________________ (1) Geography of the other non IFRS 15 revenue is as follows: United Kingdom $2 million , United States $4 million , Canada $5 million , Australia $1 million , Brazil $6 million , Middle East $ nil and Other $7 million . (2) Middle East primarily consists of United Arab Emirates. (US$ MILLIONS) Transition Business Services Industrial Operations Construction Services Energy Corporate and Other Total Revenue as if it were under former revenue standards $ 6,716 $ 851 $ 1,125 $ 54 $ — $ 8,746 IFRS 15 Impact — (2 ) 6 — — 4 Total IFRS 15 Revenue $ 6,716 $ 849 $ 1,131 $ 54 $ — $ 8,750 The tables below summarize our segment revenue by geography, and timing of revenue recognition for IFRS 15 revenue for the six months ending June 30, 2018: (US$ MILLIONS) Timing of Revenue Recognition Business Services Industrial Operations Construction Services Energy Corporate and Other Total Goods/services provided at a point in time $ 12,024 $ 1,473 $ 34 $ 147 $ — $ 13,678 Services transferred over a period of time 985 117 2,139 — — 3,241 Total IFRS 15 revenue $ 13,009 $ 1,590 $ 2,173 $ 147 $ — $ 16,919 Other non IFRS 15 revenue 21 12 3 7 7 50 Total revenue $ 13,030 $ 1,602 $ 2,176 $ 154 $ 7 $ 16,969 (US$ MILLIONS) Geography Business Services Industrial Operations Construction Services Energy Corporate and Other Total (1) United Kingdom $ 9,959 $ 30 $ 712 $ — $ — $ 10,701 Canada 1,884 255 34 147 — 2,320 Australia 170 — 1,216 — — 1,386 Brazil 465 429 — — — 894 USA 174 216 — — — 390 Middle East (2) 2 1 211 — — 214 Other 355 659 — — — 1,014 Total IFRS 15 revenue $ 13,009 $ 1,590 $ 2,173 $ 147 $ — $ 16,919 __________________________________ (1) Geography of the other non IFRS 15 revenue is as follows: United Kingdom $6 million , United States $4 million , Canada $11 million , Australia $2 million , Brazil $12 million , Middle East $ nil and Other $15 million . (2) Middle East primarily consists of United Arab Emirates. (US$ MILLIONS) Transition Business Services Industrial Operations Construction Services Energy Corporate and Other Total Revenue as if it were under former revenue standards $ 13,009 $ 1,590 $ 2,173 $ 147 $ — $ 16,919 IFRS 15 Impact — — — — — — Total IFRS 15 Revenue $ 13,009 $ 1,590 $ 2,173 $ 147 $ — $ 16,919 |
Explanation of measurement bases used in preparing financial statements | The table below summarizes the partnership’s classification and measurement of financial assets and liabilities, on adoption of IFRS 9: Classification Measurement Statement of Financial Position Account Financial assets Cash and cash equivalents Debt Amortized cost Cash and cash equivalents Accounts receivable Debt Amortized cost / FVTPL Accounts and other receivable, net Restricted cash Debt Amortized cost Financial assets Equity securities Equity FVTPL / FVOCI Financial assets Debt securities Debt FVTPL / FVOCI / Amortized cost Financial assets Derivative assets Derivatives FVTPL (1) Financial assets Other financial assets Debt / Equity Amortized cost / FVTPL/ FVOCI Financial assets Financial liabilities Borrowings Debt Amortized cost Borrowings Accounts payable and other Debt Amortized cost Accounts payable and other Derivative liabilities Derivatives FVTPL (1) Accounts payable and other __________________________ (1) Derivatives are classified and measured at FVTPL except those designated in hedging relationships. |
Disclosure of effect of overlay approach reclassification on profit or loss | The following table is as at January 1, 2018: (US$ MILLIONS) FVTPL FVOCI Amortized Cost Total Opening balance (IAS 39) $ 166 $ 429 $ 5,852 $ 6,447 Reclassifications 211 (211 ) — — Revised opening balance (IFRS 9) $ 377 $ 218 $ 5,852 $ 6,447 |
ACQUISITION OF BUSINESSES (Tabl
ACQUISITION OF BUSINESSES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations 1 [Abstract] | |
Disclosure of detailed information about business combinations | The following summarizes the consideration transferred, assets acquired and liabilities assumed at the applicable acquisition dates: (US$ MILLIONS) Business Services (1) Industrial Operations (1) Total Cash $ 4 $ 45 $ 49 Total Consideration (2) $ 4 $ 45 $ 49 (US$ MILLIONS) Cash and cash equivalents $ 2 $ 30 $ 32 Accounts receivable and other 1 75 76 Inventory — 58 58 Equity accounted investments — 1 1 Property, plant and equipment 2 187 189 Intangible assets 5 231 236 Goodwill 8 180 188 Deferred income tax assets — 27 27 Financial assets — 2 2 Accounts payable and other (1 ) (199 ) (200 ) Borrowings — (266 ) (266 ) Deferred income tax liabilities — (72 ) (72 ) Net assets acquired before non-controlling interest 17 254 271 Non-controlling interest (3) (4) (13 ) (209 ) (222 ) Net Assets Acquired $ 4 $ 45 $ 49 __________________________________ (1) The initial fair values of all acquired assets, liabilities and goodwill for these acquisitions have been determined on a preliminary basis at the end of the reporting period. (2) Excludes consideration attributable to non-controlling interest, which represents the interest of others in operating subsidiaries. (3) Non-controlling interest recognized on business combination, were measured at fair value for Business Services. (4) Non-controlling interest recognized on business combination, were measured at the proportionate share of fair value of the assets acquired and liabilities assumed for Industrial Operations. The following summarizes the consideration transferred, assets acquired and liabilities assumed at the applicable acquisition dates: (US$ MILLIONS) Business (1) Industrial Energy (1) Total Cash $ 198 $ 383 $ 12 $ 593 Contingent consideration 13 — — 13 Total Consideration (2) $ 211 $ 383 $ 12 $ 606 (US$ MILLIONS) Cash and cash equivalents $ 39 $ 296 $ — $ 335 Accounts receivable and other 1,248 978 — 2,226 Inventory 690 10 — 700 Equity accounted investments 122 90 — 212 Property, plant and equipment 264 200 39 503 Intangible assets 403 2,436 — 2,839 Goodwill 325 3 — 328 Deferred income tax assets 9 50 — 59 Financial assets 106 — — 106 Other assets — 65 — 65 Acquisition gain — — (7 ) (7 ) Accounts payable and other (1,885 ) (227 ) — (2,112 ) Borrowings (210 ) (1,468 ) — (1,678 ) Deferred income tax liabilities (58 ) (729 ) (2 ) (789 ) Net assets acquired before non-controlling interest 1,053 1,704 30 2,787 Non-controlling interest (3) (4) (842 ) (1,321 ) (18 ) (2,181 ) Net Assets Acquired $ 211 $ 383 $ 12 $ 606 ________________ (1) The initial fair values of all acquired assets, liabilities and goodwill for this acquisition have been determined on a preliminary basis at the end of the reporting period. (2) Excludes consideration attributable to non-controlling interest, which represents the interest of others in operating subsidiaries. (3) Non-controlling interest recognized on business combinations, were measured at fair value for Business Services and Energy. (4) Non-controlling interest recognized on business combinations, were measured at the proportionate share of fair value of the assets acquired and liabilities assumed for Industrial Operations. |
FAIR VALUE OF FINANCIAL INSTR31
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Measurement [Abstract] | |
Financial assets classification | The following table provides the details of financial instruments and their associated financial instrument classifications as at June 30, 2018 : (US$ MILLIONS) MEASUREMENT BASIS FVTPL FVOCI Amortized Cost Total Financial assets Cash and cash equivalents $ — $ — $ 1,873 $ 1,873 Accounts receivable, net (current and non-current) (1) 45 — 4,409 4,454 Other assets (current and non-current) (2) — — 118 118 Financial assets (current and non-current) (3) 292 347 307 946 Total $ 337 $ 347 $ 6,707 $ 7,391 Financial liabilities Accounts payable and other (4) $ 110 6 $ 3,996 $ 4,112 Borrowings (current and non-current) — — 5,079 5,079 Total $ 110 $ 6 $ 9,075 $ 9,191 ____________________________________ (1) Accounts receivable recognized at fair value relates to our mining business. (2) Excludes prepayments and other assets of $400 million . (3) Refer to Hedging Activities in Note 4(a) below. (4) Excludes provisions, decommissioning liabilities, deferred revenue, work in progress, post-employment benefits and various taxes and duties of $2,073 million . The following table provides the allocation of financial instruments and their associated financial instrument classifications as at December 31, 2017 : (US$ MILLIONS) FVTPL Available for Sale Securities Loans and Receivables/ Other Liabilities Total MEASUREMENT BASIS (Fair Value) (Fair Value through OCI) (Amortized Cost) Financial assets Cash and cash equivalents $ — $ — $ 1,106 $ 1,106 Accounts receivable, net (current and non-current) (1) 50 — 4,312 4,362 Other assets (current and non-current) (2) — — 195 195 Financial assets (current and non-current) (3) 116 429 239 784 Total $ 166 $ 429 $ 5,852 $ 6,447 Financial liabilities Accounts payable and other (4) $ 159 — $ 3,766 $ 3,925 Borrowings (current and non-current) — — 3,265 3,265 Total $ 159 $ — $ 7,031 $ 7,190 ____________________________________ (1) Accounts receivable recognized at fair value relates to our mining business. (2) Excludes prepayments and other assets of $314 million . (3) Refer to Hedging Activities in Note 4(a) below. (4) Excludes provisions, decommissioning liabilities, deferred revenue, work in progress, post-employment benefits and various taxes and duties of $1,713 million . (US$ MILLIONS) June 30, 2018 December 31, 2017 Current Marketable securities (1) $ 262 $ 207 Restricted cash 77 68 Derivative contracts 99 75 Loans and notes receivable 46 11 Total current $ 484 $ 361 Non-current Marketable securities (1) $ 1 $ 1 Restricted cash 7 11 Derivative contracts 61 7 Loans and notes receivable 179 150 Other financial assets (2) 214 254 Total non-current $ 462 $ 423 ____________________________________ (1) During the three and six month period ended June 30, 2018 , the partnership recognized $ nil and $nil ( June 30, 2017 : $6 million and $39 million ) of net gains on disposition of marketable securities. (2) Other financial assets include secured debentures to homebuilding companies in our business services segment. (US$ MILLIONS) June 30, 2018 December 31, 2017 Current, net $ 3,676 $ 3,454 Non-current, net Retainer on customer contract 103 197 Billing rights 675 711 Total Non-current, net $ 778 $ 908 Total $ 4,454 $ 4,362 |
Financial liabilities classification | The following table provides the allocation of financial instruments and their associated financial instrument classifications as at December 31, 2017 : (US$ MILLIONS) FVTPL Available for Sale Securities Loans and Receivables/ Other Liabilities Total MEASUREMENT BASIS (Fair Value) (Fair Value through OCI) (Amortized Cost) Financial assets Cash and cash equivalents $ — $ — $ 1,106 $ 1,106 Accounts receivable, net (current and non-current) (1) 50 — 4,312 4,362 Other assets (current and non-current) (2) — — 195 195 Financial assets (current and non-current) (3) 116 429 239 784 Total $ 166 $ 429 $ 5,852 $ 6,447 Financial liabilities Accounts payable and other (4) $ 159 — $ 3,766 $ 3,925 Borrowings (current and non-current) — — 3,265 3,265 Total $ 159 $ — $ 7,031 $ 7,190 ____________________________________ (1) Accounts receivable recognized at fair value relates to our mining business. (2) Excludes prepayments and other assets of $314 million . (3) Refer to Hedging Activities in Note 4(a) below. (4) Excludes provisions, decommissioning liabilities, deferred revenue, work in progress, post-employment benefits and various taxes and duties of $1,713 million . There were no transfers between levels during the three and six month period ended June 30, 2018 . The following table categorizes financial assets and liabilities, which are carried at fair value, based upon the level of input as at June 30, 2018 and December 31, 2017 : June 30, 2018 December 31, 2017 (US$ MILLIONS) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Financial assets Common shares $ 263 $ — $ — $ 207 $ — $ — Accounts receivable — 45 — — 50 — Loans and notes receivable — — 2 — — 1 Derivative assets 8 113 39 15 66 34 Other financial assets — — 214 — — 222 Total $ 271 $ 158 $ 255 $ 222 $ 116 $ 257 Financial liabilities Derivative liabilities $ 12 $ 41 $ — $ 30 $ 65 $ — Other financial liabilities — — 63 — — 64 Total $ 12 $ 41 $ 63 $ 30 $ 65 $ 64 The following table provides the details of financial instruments and their associated financial instrument classifications as at June 30, 2018 : (US$ MILLIONS) MEASUREMENT BASIS FVTPL FVOCI Amortized Cost Total Financial assets Cash and cash equivalents $ — $ — $ 1,873 $ 1,873 Accounts receivable, net (current and non-current) (1) 45 — 4,409 4,454 Other assets (current and non-current) (2) — — 118 118 Financial assets (current and non-current) (3) 292 347 307 946 Total $ 337 $ 347 $ 6,707 $ 7,391 Financial liabilities Accounts payable and other (4) $ 110 6 $ 3,996 $ 4,112 Borrowings (current and non-current) — — 5,079 5,079 Total $ 110 $ 6 $ 9,075 $ 9,191 ____________________________________ (1) Accounts receivable recognized at fair value relates to our mining business. (2) Excludes prepayments and other assets of $400 million . (3) Refer to Hedging Activities in Note 4(a) below. (4) Excludes provisions, decommissioning liabilities, deferred revenue, work in progress, post-employment benefits and various taxes and duties of $2,073 million . |
Carrying and fair values of financial assets | The following table categorizes financial assets and liabilities, which are carried at fair value, based upon the level of input as at June 30, 2018 and December 31, 2017 : June 30, 2018 December 31, 2017 (US$ MILLIONS) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Financial assets Common shares $ 263 $ — $ — $ 207 $ — $ — Accounts receivable — 45 — — 50 — Loans and notes receivable — — 2 — — 1 Derivative assets 8 113 39 15 66 34 Other financial assets — — 214 — — 222 Total $ 271 $ 158 $ 255 $ 222 $ 116 $ 257 Financial liabilities Derivative liabilities $ 12 $ 41 $ — $ 30 $ 65 $ — Other financial liabilities — — 63 — — 64 Total $ 12 $ 41 $ 63 $ 30 $ 65 $ 64 |
Carrying and fair values of financial liabilities | The following table categorizes financial assets and liabilities, which are carried at fair value, based upon the level of input as at June 30, 2018 and December 31, 2017 : June 30, 2018 December 31, 2017 (US$ MILLIONS) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Financial assets Common shares $ 263 $ — $ — $ 207 $ — $ — Accounts receivable — 45 — — 50 — Loans and notes receivable — — 2 — — 1 Derivative assets 8 113 39 15 66 34 Other financial assets — — 214 — — 222 Total $ 271 $ 158 $ 255 $ 222 $ 116 $ 257 Financial liabilities Derivative liabilities $ 12 $ 41 $ — $ 30 $ 65 $ — Other financial liabilities — — 63 — — 64 Total $ 12 $ 41 $ 63 $ 30 $ 65 $ 64 |
Schedule of significant unobservable inputs used and change in balance of financial assets | The following table presents the change in the balance of financial assets classified as Level 3 as at June 30, 2018 : (US$ MILLIONS) June 30, 2018 Balance at beginning of year $ 257 Fair value change recorded in net income 1 Fair value change recorded in other comprehensive income (1 ) Disposals (2 ) Balance at end of period $ 255 |
Schedule of significant unobservable inputs used and change in balance of financial liabilities | The following table presents the change in the balance of financial assets classified as Level 3 as at June 30, 2018 : (US$ MILLIONS) June 30, 2018 Balance at beginning of year $ 257 Fair value change recorded in net income 1 Fair value change recorded in other comprehensive income (1 ) Disposals (2 ) Balance at end of period $ 255 |
FINANCIAL ASSETS (Tables)
FINANCIAL ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Financial Instruments [Abstract] | |
Disclosure of financial assets | The following table provides the details of financial instruments and their associated financial instrument classifications as at June 30, 2018 : (US$ MILLIONS) MEASUREMENT BASIS FVTPL FVOCI Amortized Cost Total Financial assets Cash and cash equivalents $ — $ — $ 1,873 $ 1,873 Accounts receivable, net (current and non-current) (1) 45 — 4,409 4,454 Other assets (current and non-current) (2) — — 118 118 Financial assets (current and non-current) (3) 292 347 307 946 Total $ 337 $ 347 $ 6,707 $ 7,391 Financial liabilities Accounts payable and other (4) $ 110 6 $ 3,996 $ 4,112 Borrowings (current and non-current) — — 5,079 5,079 Total $ 110 $ 6 $ 9,075 $ 9,191 ____________________________________ (1) Accounts receivable recognized at fair value relates to our mining business. (2) Excludes prepayments and other assets of $400 million . (3) Refer to Hedging Activities in Note 4(a) below. (4) Excludes provisions, decommissioning liabilities, deferred revenue, work in progress, post-employment benefits and various taxes and duties of $2,073 million . The following table provides the allocation of financial instruments and their associated financial instrument classifications as at December 31, 2017 : (US$ MILLIONS) FVTPL Available for Sale Securities Loans and Receivables/ Other Liabilities Total MEASUREMENT BASIS (Fair Value) (Fair Value through OCI) (Amortized Cost) Financial assets Cash and cash equivalents $ — $ — $ 1,106 $ 1,106 Accounts receivable, net (current and non-current) (1) 50 — 4,312 4,362 Other assets (current and non-current) (2) — — 195 195 Financial assets (current and non-current) (3) 116 429 239 784 Total $ 166 $ 429 $ 5,852 $ 6,447 Financial liabilities Accounts payable and other (4) $ 159 — $ 3,766 $ 3,925 Borrowings (current and non-current) — — 3,265 3,265 Total $ 159 $ — $ 7,031 $ 7,190 ____________________________________ (1) Accounts receivable recognized at fair value relates to our mining business. (2) Excludes prepayments and other assets of $314 million . (3) Refer to Hedging Activities in Note 4(a) below. (4) Excludes provisions, decommissioning liabilities, deferred revenue, work in progress, post-employment benefits and various taxes and duties of $1,713 million . (US$ MILLIONS) June 30, 2018 December 31, 2017 Current Marketable securities (1) $ 262 $ 207 Restricted cash 77 68 Derivative contracts 99 75 Loans and notes receivable 46 11 Total current $ 484 $ 361 Non-current Marketable securities (1) $ 1 $ 1 Restricted cash 7 11 Derivative contracts 61 7 Loans and notes receivable 179 150 Other financial assets (2) 214 254 Total non-current $ 462 $ 423 ____________________________________ (1) During the three and six month period ended June 30, 2018 , the partnership recognized $ nil and $nil ( June 30, 2017 : $6 million and $39 million ) of net gains on disposition of marketable securities. (2) Other financial assets include secured debentures to homebuilding companies in our business services segment. (US$ MILLIONS) June 30, 2018 December 31, 2017 Current, net $ 3,676 $ 3,454 Non-current, net Retainer on customer contract 103 197 Billing rights 675 711 Total Non-current, net $ 778 $ 908 Total $ 4,454 $ 4,362 |
ACCOUNTS AND OTHER RECEIVABLE33
ACCOUNTS AND OTHER RECEIVABLE, NET (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Disclosure of financial assets | The following table provides the details of financial instruments and their associated financial instrument classifications as at June 30, 2018 : (US$ MILLIONS) MEASUREMENT BASIS FVTPL FVOCI Amortized Cost Total Financial assets Cash and cash equivalents $ — $ — $ 1,873 $ 1,873 Accounts receivable, net (current and non-current) (1) 45 — 4,409 4,454 Other assets (current and non-current) (2) — — 118 118 Financial assets (current and non-current) (3) 292 347 307 946 Total $ 337 $ 347 $ 6,707 $ 7,391 Financial liabilities Accounts payable and other (4) $ 110 6 $ 3,996 $ 4,112 Borrowings (current and non-current) — — 5,079 5,079 Total $ 110 $ 6 $ 9,075 $ 9,191 ____________________________________ (1) Accounts receivable recognized at fair value relates to our mining business. (2) Excludes prepayments and other assets of $400 million . (3) Refer to Hedging Activities in Note 4(a) below. (4) Excludes provisions, decommissioning liabilities, deferred revenue, work in progress, post-employment benefits and various taxes and duties of $2,073 million . The following table provides the allocation of financial instruments and their associated financial instrument classifications as at December 31, 2017 : (US$ MILLIONS) FVTPL Available for Sale Securities Loans and Receivables/ Other Liabilities Total MEASUREMENT BASIS (Fair Value) (Fair Value through OCI) (Amortized Cost) Financial assets Cash and cash equivalents $ — $ — $ 1,106 $ 1,106 Accounts receivable, net (current and non-current) (1) 50 — 4,312 4,362 Other assets (current and non-current) (2) — — 195 195 Financial assets (current and non-current) (3) 116 429 239 784 Total $ 166 $ 429 $ 5,852 $ 6,447 Financial liabilities Accounts payable and other (4) $ 159 — $ 3,766 $ 3,925 Borrowings (current and non-current) — — 3,265 3,265 Total $ 159 $ — $ 7,031 $ 7,190 ____________________________________ (1) Accounts receivable recognized at fair value relates to our mining business. (2) Excludes prepayments and other assets of $314 million . (3) Refer to Hedging Activities in Note 4(a) below. (4) Excludes provisions, decommissioning liabilities, deferred revenue, work in progress, post-employment benefits and various taxes and duties of $1,713 million . (US$ MILLIONS) June 30, 2018 December 31, 2017 Current Marketable securities (1) $ 262 $ 207 Restricted cash 77 68 Derivative contracts 99 75 Loans and notes receivable 46 11 Total current $ 484 $ 361 Non-current Marketable securities (1) $ 1 $ 1 Restricted cash 7 11 Derivative contracts 61 7 Loans and notes receivable 179 150 Other financial assets (2) 214 254 Total non-current $ 462 $ 423 ____________________________________ (1) During the three and six month period ended June 30, 2018 , the partnership recognized $ nil and $nil ( June 30, 2017 : $6 million and $39 million ) of net gains on disposition of marketable securities. (2) Other financial assets include secured debentures to homebuilding companies in our business services segment. (US$ MILLIONS) June 30, 2018 December 31, 2017 Current, net $ 3,676 $ 3,454 Non-current, net Retainer on customer contract 103 197 Billing rights 675 711 Total Non-current, net $ 778 $ 908 Total $ 4,454 $ 4,362 |
INVENTORY, NET (Tables)
INVENTORY, NET (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Inventories [Abstract] | |
Disclosure of current inventories | (US$ MILLIONS) June 30, 2018 December 31, 2017 Current Raw materials and consumables $ 111 $ 138 Fuel products (1) 634 612 Work in progress 115 94 RTFO certificates (2) 256 193 Finished goods and other (3) 138 31 Carrying amount of inventories $ 1,254 $ 1,068 ____________________________________ (1) Fuel products are traded in active markets and are purchased with a view to resale in the near future. As a result, stocks of fuel products are recorded at fair value based on quoted market prices. (2) $1 million of RTFO certificates ( December 31, 2017 : $60 million ) are held for trading and recorded at fair value. There is no externally quoted marketplace for the valuation of RTFO certificates. In order to value these contracts, the partnership has adopted a pricing methodology combining both observable inputs based on market data and assumptions developed internally based on observable market activity. (3) Finished goods and other is mainly composed of properties acquired in our real estate services business as well as some finished goods inventory in our industrial operations and construction services segments. |
ASSETS HELD FOR SALE (Tables)
ASSETS HELD FOR SALE (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Assets And Liabilities Classified As Held For Sale [Abstract] | |
Disclosure of assets and liabilities classified as held for sale | (US$ MILLIONS) June 30, 2018 December 31, 2017 Accounts receivable, net $ 49 $ — Inventory 11 — Property, plant and equipment 36 14 Assets held for sale $ 96 $ 14 Accounts payable and other $ 15 $ — Liabilities associated with assets held for sale $ 15 $ — |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Disclosure of Other Assets | (US$ MILLIONS) June 30, 2018 December 31, 2017 Current Work in progress (1) $ 118 $ 195 Prepayments and other assets 327 235 Total current $ 445 $ 430 Non-current Prepayments and other assets $ 73 $ 79 Total non-current $ 73 $ 79 ____________________________________ (1) See Note 12 for additional information. |
EQUITY ACCOUNTED INVESTMENTS (T
EQUITY ACCOUNTED INVESTMENTS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Interests In Other Entities [Abstract] | |
Disclosure of change in equity investments | (US$ MILLIONS) June 30, 2018 December 31, 2017 Balance at beginning of year $ 609 $ 166 Adoption of new accounting standard (7 ) — Acquisitions through business combinations (1) (18 ) 231 Additions 8 208 Share of net income 10 69 Share of other comprehensive income/(loss) (3 ) (5 ) Distributions received (23 ) (59 ) Foreign currency translation (18 ) (1 ) Reclassification to assets held for sale and disposition of interest (2) (75 ) — Balance at end of period $ 483 $ 609 ____________________________________ (1) See Note 3 for additional information. (2) See Note 8 for additional information. |
ACCOUNTS PAYABLE AND OTHER (Tab
ACCOUNTS PAYABLE AND OTHER (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Disclosure of accounts payable and other | (US$ MILLIONS) June 30, 2018 December 31, 2017 Current Accounts payable $ 1,503 $ 1,451 Accrued and other liabilities (1) (2) 3,251 2,992 Work in progress (3) 650 341 Provisions and decommissioning liabilities 50 81 Total current $ 5,454 $ 4,865 Non-current Accounts payable $ 95 $ 113 Accrued and other liabilities (2) 438 435 Work in progress (3) 64 86 Provisions and decommissioning liabilities 134 139 Total non-current $ 731 $ 773 ____________________________________ (1) Includes bank overdrafts of $ 857 million as at June 30, 2018 ( December 31, 2017 : $581 million ). (2) Includes a defined benefit pension obligation of $42 million ( $1 million current and $41 million non-current) and a post-retirement benefit obligation of $28 million ( $2 million current and $26 million non-current) as at June 30, 2018 . (3) See Note 12 for additional information. |
CONTRACTS IN PROGRESS (Tables)
CONTRACTS IN PROGRESS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Construction Contracts [Abstract] | |
Disclosure of contracts in progress | (US$ MILLIONS) June 30, 2018 December 31, 2017 Contract costs incurred to date $ 12,949 $ 12,129 Profit recognized to date (less recognized losses) 241 558 13,190 12,687 Less: progress billings (13,786 ) (12,919 ) Contract work in progress (liability) $ (596 ) $ (232 ) Comprising: Amounts due from customers — work in progress (current) $ 118 $ 195 Amounts due to customers — creditors (current / non-current) (714 ) (427 ) Net work in progress $ (596 ) $ (232 ) |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Related Party [Abstract] | |
Disclosure of transactions between related parties | The following table summarizes other transactions the partnership has entered into with related parties: Three Months Ended Six Months Ended (US$ MILLIONS) June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Transactions during the period Construction revenues $ 122 $ 83 $ 224 $ 161 (US$ MILLIONS) June 30, 2018 December 31, 2017 Balances at end of period Accounts receivable $ 53 $ 64 Accounts payable and other $ 93 $ 106 |
DERIVATIVE FINANCIAL INSTRUME41
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Financial Instruments [Abstract] | |
Disclosure of detailed information about hedging instruments | The aggregate notional amounts of the partnership's derivative positions were as follows as at: (US$ MILLIONS) June 30, 2018 December 31, 2017 Total foreign exchange contracts (1) $ 1,597 $ 1,243 ____________________________________ (1) Notional amounts are presented on a net basis for those derivative instruments that are offset. |
ACCUMULATED OTHER COMPREHENSI42
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of analysis of other comprehensive income by item [abstract] | |
Disclosure of accumulated other comprehensive income (loss) | (a) Attributable to Limited Partners (US$ MILLIONS) Foreign currency translation FVOCI Other (1) Accumulated other comprehensive income (loss) Balance as at January 1, 2018 $ (111 ) $ 6 $ (7 ) $ (112 ) Other comprehensive income (loss) (49 ) 7 11 (31 ) Balance as at June 30, 2018 $ (160 ) $ 13 $ 4 $ (143 ) ____________________________________ (1) Represents net investment hedges, cash flow hedges and other reserves. (US$ MILLIONS) Foreign currency translation Available for sale Other (1) Accumulated other comprehensive income (loss) Balance as at January 1, 2017 $ (148 ) $ 4 $ 3 $ (141 ) Other comprehensive income (loss) 19 — (11 ) 8 Balance as at June 30, 2017 $ (129 ) $ 4 $ (8 ) $ (133 ) ____________________________________ (1) Represents net investment hedges, cash flow hedges and other reserves. (b) Attributable to Non-controlling interest — Redemption-Exchange Units held by Brookfield Asset Management Inc. (US$ MILLIONS) Foreign currency translation FVOCI Other (1) Accumulated other comprehensive income (loss) Balance as at January 1, 2018 $ (165 ) $ 4 $ (4 ) $ (165 ) Other comprehensive income (loss) (47 ) 6 11 (30 ) Balance as at June 30, 2018 $ (212 ) $ 10 $ 7 $ (195 ) ____________________________________ (1) Represents net investment hedges, cash flow hedges and other reserves. (US$ MILLIONS) Foreign currency translation Available for sale Other (1) Accumulated other comprehensive income (loss) Balance as at January 1, 2017 $ (205 ) $ 2 $ 6 $ (197 ) Other comprehensive income (loss) 20 — (11 ) 9 Balance as at June 30, 2017 $ (185 ) $ 2 $ (5 ) $ (188 ) ____________________________________ (1) Represents net investment hedges, cash flow hedges and other reserves. |
DIRECT OPERATING COSTS (Tables)
DIRECT OPERATING COSTS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Analysis of income and expense [abstract] | |
Disclosure of direct operating costs | The following table lists direct operating costs for the three and six months ended June 30, 2018 , and June 30, 2017 by nature: Three Months Ended Six Months Ended (US$ MILLIONS) June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Cost of sales $ 7,739 $ 4,278 $ 14,915 $ 5,786 Compensation 449 369 903 729 Property taxes, sales taxes and other 12 26 31 32 Total $ 8,200 $ 4,673 $ 15,849 $ 6,547 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Operating Segments [Abstract] | |
Disclosure of operating segments | Three Months Ended June 30, 2018 Total attributable to the partnership (US$ MILLIONS) Business Services Construction Services Industrial Operations Energy Corporate and Other Total Revenues $ 6,726 $ 1,133 $ 855 $ 57 $ 4 $ 8,775 Direct operating costs (6,603 ) (1,108 ) (438 ) (49 ) (2 ) (8,200 ) General and administrative expenses (61 ) (11 ) (49 ) (5 ) (16 ) (142 ) Equity accounted Company EBITDA (3) 7 — 4 52 — 63 Company EBITDA attributable to others (4) (46 ) — (264 ) (4 ) — (314 ) Company EBITDA (1) 23 14 108 51 (14 ) 182 Realized disposition gain/(loss), net 55 — 35 — — 90 Interest expense (22 ) — (55 ) (6 ) — (83 ) Realized disposition gain, current income taxes and interest expenses related to equity accounted investment (3) (1 ) — (1 ) (18 ) — (20 ) Current income taxes (13 ) (9 ) (29 ) (1 ) — (52 ) Company FFO attributable to others (net of Company EBITDA attributable to others) (4) 19 — 36 5 — 60 Company FFO (1) 61 5 94 31 (14 ) 177 Depreciation and amortization expense (2) (105 ) Impairment expense, net — Other income (expense), net (7 ) Deferred income taxes 39 Non-cash items attributable to equity accounted investments (3) (50 ) Non-cash items attributable to others (4) 65 Net income (loss) attributable to unitholders (1) $ 119 ____________________________________ (1) Company EBITDA, Company FFO and net income attributable to unitholders include Company EBITDA, Company FFO, and net income attributable to limited partnership unitholders, general partnership unitholders, redemption-exchange unitholders and special limited partnership unitholders. (2) For the three month period ended June 30, 2018 , depreciation and amortization by segment is as follows: Business Services $ 29 million , Construction Services $ 5 million , Industrial Operations $ 53 million , Energy $ 18 million , and Corporate and Other $ nil . (3) The sum of these amounts equates to equity accounted loss of $7 million . (4) Total cash and non-cash items attributable to the interest of others equals net gain of $189 million as per the unaudited interim condensed consolidated statements of operating results. Six Months Ended June 30, 2018 Total attributable to the partnership (US$ MILLIONS) Business Services Construction Services Industrial Operations Energy Corporate and Other Total Revenues $ 13,030 $ 2,176 $ 1,602 $ 154 $ 7 $ 16,969 Direct operating costs (12,817 ) (2,128 ) (791 ) (109 ) (4 ) (15,849 ) General and administrative expenses (118 ) (21 ) (79 ) (10 ) (32 ) (260 ) Equity accounted Company EBITDA (3) 15 — 9 98 — 122 Company EBITDA attributable to others (4) (71 ) — (514 ) (24 ) — (609 ) Company EBITDA (1) 39 27 227 109 (29 ) 373 Realized disposition gain 55 — 51 — — 106 Interest expense (41 ) — (114 ) (14 ) — (169 ) Realized disposition gain, current income taxes and interest expenses related to equity accounted investments (3) (1 ) — (2 ) (36 ) — (39 ) Current income taxes (17 ) (13 ) (49 ) (1 ) — (80 ) Company FFO attributable to others (net of Company EBITDA attributable to others) (4) 34 — 79 11 — 124 Company FFO (1) 69 14 192 69 (29 ) 315 Depreciation and amortization expense (2) (211 ) Impairment expense, net — Other income (expense), net (21 ) Deferred income taxes 29 Non-cash items attributable to equity accounted investments (3) (73 ) Non-cash items attributable to others (4) 154 Net income (loss) attributable to unitholders (1) $ 193 ____________________________________ (1) Company EBITDA, Company FFO and net income attributable to unitholders include Company EBITDA, Company FFO, and net income attributable to limited partnership unitholders, general partnership unitholders, redemption-exchange unitholders and special limited partnership unitholders. (2) For the six month period ended June 30, 2018, depreciation and amortization by segment is as follows; Business Services $57 million , Construction Services $10 million , Industrial Operations $106 million , Energy $38 million , and Corporate and Other $ nil . (3) The sum of these amounts equates to equity accounted income of $10 million . (4) Total cash and non-cash items attributable to the interest of others equals net gain of $331 million as per the unaudited interim condensed consolidated statements of operating results. Three Months Ended June 30, 2017 Total attributable to the partnership (US$ MILLIONS) Business Services Construction Services Industrial Operations Energy Corporate and Other Total Revenues $ 3,273 $ 1,125 $ 406 $ 64 $ 2 $ 4,870 Direct operating costs (3,207 ) (1,104 ) (316 ) (45 ) (1 ) (4,673 ) General and administrative expenses (30 ) (11 ) (22 ) (4 ) (9 ) (76 ) Equity accounted Company EBITDA (3) 11 — 1 12 — 24 Company EBITDA attributable to others (4) (26 ) — (53 ) (12 ) — (91 ) Company EBITDA (1) 21 10 16 15 (8 ) 54 Realized disposition gain/(loss), net 1 — 8 — — 9 Interest expense (9 ) — (34 ) (7 ) — (50 ) Realized disposition gain, current income taxes and interest expenses related to equity accounted investment (3) — — — (1 ) — (1 ) Current income taxes (4 ) 2 (5 ) — 3 (4 ) Company FFO attributable to others (net of Company EBITDA attributable to others) (4) 8 — 23 4 — 35 Company FFO (1) 17 12 8 11 (5 ) 43 Depreciation and amortization expense (2) (88 ) Impairment expense, net (23 ) Other income (expense), net (9 ) Deferred income taxes 4 Non-cash items attributable to equity accounted investments (3) (9 ) Non-cash items attributable to others (4) 76 Net income (loss) attributable to unitholders (1) $ (6 ) ____________________________________ (1) Company EBITDA, Company FFO and net income attributable to unitholders include Company EBITDA, Company FFO, and net income attributable to limited partnership unitholders, general partnership unitholders, redemption-exchange unitholders and special limited partnership unitholders. (2) For the three month period ended June 30, 2017 , depreciation and amortization by segment is as follows: Business Services $ 13 million , Construction Services $ 7 million , Industrial Operations $ 44 million , Energy $ 24 million , and Corporate and Other $ nil . (3) The sum of these amounts equates to equity accounted income of $14 million . (4) Total cash and non-cash items attributable to the interest of others equals net loss of $20 million as per the unaudited interim condensed consolidated statements of operating results. Six Months Ended June 30, 2017 Total attributable to the partnership (US$ MILLIONS) Business Services Construction Services Industrial Operations Energy Corporate and Other Total Revenues $ 3,889 $ 2,141 $ 637 $ 133 $ 4 $ 6,804 Direct operating costs (3,790 ) (2,124 ) (535 ) (96 ) (2 ) (6,547 ) General and administrative expenses (53 ) (22 ) (37 ) (8 ) (18 ) (138 ) Equity accounted Company EBITDA (3) 15 — 1 26 — 42 Company EBITDA attributable to others (4) (40 ) 1 (51 ) (24 ) — (114 ) Company EBITDA (1) 21 (4 ) 15 31 (16 ) 47 Realized disposition gain/(loss), net 6 2 237 36 — 281 Interest expense (13 ) — (43 ) (13 ) — (69 ) Realized disposition gain, current income taxes and interest expenses related to equity accounted investment (3) — — — (2 ) — (2 ) Current income taxes (4 ) 12 (13 ) (1 ) 6 — Company FFO attributable to others (net of Company EBITDA attributable to others) (4) 11 (1 ) (109 ) (20 ) — (119 ) Company FFO (1) 21 9 87 31 (10 ) 138 Depreciation and amortization expense (2) (153 ) Impairment expense, net (30 ) Other income (expense), net 5 Deferred income taxes — Non-cash items attributable to equity accounted investments (3) (16 ) Non-cash items attributable to others (4) 116 Net income (loss) attributable to unitholders (1) $ 60 (1) Company EBITDA, Company FFO and net income attributable to unitholders include Company EBITDA, Company FFO, and net income attributable to limited partnership unitholders, general partnership unitholders, redemption-exchange unitholders and special limited partnership unitholders. (2) For the six month period ended June 30, 2017 , depreciation and amortization by segment is as follows: Business Services $ 22 million , Construction Services $ 12 million , Industrial Operations $ 69 million , Energy $ 50 million , and Corporate and Other $ nil . (3) The sum of these amounts equates to equity accounted income of $24 million . (4) Total cash and non-cash items attributable to the interest of others equals net gain of $117 million as per the unaudited interim condensed consolidated statements of operating results. |
Disclosure of revenues and non-current assets by geographical areas | The following is an analysis of the partnership's assets by reportable operating segment as at June 30, 2018 and December 31, 2017 : As at June 30, 2018 Total attributable to the partnership (US$ MILLIONS) Business Services Construction Services Industrial Operations Energy Corporate and Other Total Total assets $ 5,361 $ 2,671 $ 6,388 $ 1,686 $ 935 $ 17,041 As at December 31, 2017 Total attributable to the partnership (US$ MILLIONS) Business Services Construction Services Industrial Operations Energy Corporate and Other Total Total assets $ 5,246 $ 2,653 $ 5,839 $ 1,671 $ 395 $ 15,804 |
SUPPLEMENTAL CASH FLOW INFORM45
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Cash Flow Statement [Abstract] | |
Disclosure of interest and income taxes paid | Six Months Ended (US$ MILLIONS) June 30, 2018 June 30, 2017 Interest paid $ 94 $ 41 Income taxes paid $ 30 $ 20 |
Disclosure of changes in non-cash working capital | Details of "Changes in non-cash working capital, net" on the unaudited interim condensed consolidated statements of cash flow are as follows: Six Months Ended (US$ MILLIONS) June 30, 2018 June 30, 2017 Accounts receivable $ (324 ) $ 10 Inventory (73 ) (32 ) Prepayments and other (79 ) 22 Accounts payable and other (38 ) (370 ) Changes in non-cash working capital, net $ (514 ) $ (370 ) |
SIGNIFICANT ACCOUNTING POLICI46
SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) $ in Millions | Jan. 01, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Jun. 30, 2018USD ($)contract_type | Jun. 30, 2017USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) |
Disclosure of operating segments [line items] | |||||||
Decrease in cash from operating activities | $ (191) | $ 324 | |||||
Increase in cash from financing activities | 895 | $ 1,030 | |||||
Accounts and other receivable, net | $ (4,454) | $ (4,454) | $ (4,362) | ||||
Reclassifications | $ 0 | ||||||
Business services | |||||||
Disclosure of operating segments [line items] | |||||||
Number of types of contracts | contract_type | 2 | ||||||
Industrial operations | |||||||
Disclosure of operating segments [line items] | |||||||
Remaining performance obligation, expected timing of satisfaction period | 25 years | ||||||
Construction services | |||||||
Disclosure of operating segments [line items] | |||||||
Remaining performance obligation, expected timing of satisfaction period | 2 years | ||||||
Bottom of range | Industrial operations | |||||||
Disclosure of operating segments [line items] | |||||||
Revenue recognition, settlement period | 30 days | ||||||
Top of range | Industrial operations | |||||||
Disclosure of operating segments [line items] | |||||||
Revenue recognition, settlement period | 150 days | ||||||
Increase (decrease) due to application of IFRS 15 | |||||||
Disclosure of operating segments [line items] | |||||||
Accounts and other receivable, net | 125 | ||||||
Accounts payable and other | 121 | ||||||
Increase (decrease) due to corrections of prior period errors | |||||||
Disclosure of operating segments [line items] | |||||||
Decrease in cash from operating activities | 358 | $ 177 | $ 339 | 360 | |||
Increase in cash from financing activities | $ 358 | $ 177 | $ 399 | $ 360 | |||
IFRS 15 | |||||||
Disclosure of operating segments [line items] | |||||||
Cumulative effect on retained earnings net of tax | 260 | ||||||
FVTPL | |||||||
Disclosure of operating segments [line items] | |||||||
Reclassifications | 211 | ||||||
FVTPL | Secured Debentures and Contractual Rights | |||||||
Disclosure of operating segments [line items] | |||||||
Reclassifications | 187 | ||||||
FVTPL | Equity investments | |||||||
Disclosure of operating segments [line items] | |||||||
Reclassifications | 24 | ||||||
FVTPL | IFRS 9 | Secured Debentures and Contractual Rights | |||||||
Disclosure of operating segments [line items] | |||||||
Reclassification adjustments on available-for-sale financial assets, net of tax | 3 | ||||||
FVTPL | IFRS 9 | Equity investments | |||||||
Disclosure of operating segments [line items] | |||||||
Reclassification adjustments on available-for-sale financial assets, net of tax | 3 | ||||||
Retained earnings | IFRS 9 | |||||||
Disclosure of operating segments [line items] | |||||||
Cumulative effect on retained earnings net of tax | $ 0 |
SIGNIFICANT ACCOUNTING POLICI47
SIGNIFICANT ACCOUNTING POLICIES - Schedule of Impact on Adoption of New IFRS Standards (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |
Assets | |||||
Cash and cash equivalents | $ 1,873 | $ 1,106 | $ 1,045 | $ 1,050 | |
Financial assets | 484 | 361 | |||
Accounts and other receivable, net | 3,676 | 3,454 | |||
Inventory, net | 1,254 | 1,068 | |||
Assets held for sale | 96 | 14 | |||
Other assets | 445 | 430 | |||
Current assets | 7,828 | 6,433 | |||
Financial assets | 462 | 423 | |||
Accounts and other receivable, net | 778 | 908 | |||
Other assets | 73 | 79 | |||
Property, plant and equipment | 2,575 | 2,530 | |||
Deferred income tax assets | 256 | 174 | |||
Intangible assets | 2,909 | 3,094 | |||
Equity accounted investments | 483 | 609 | 166 | ||
Goodwill | 1,677 | 1,554 | |||
Total assets | 17,041 | 15,804 | |||
Liabilities | |||||
Accounts payable and other | 5,454 | 4,865 | |||
Liabilities associated with assets held for sale | 15 | 0 | |||
Borrowings | 606 | 825 | |||
Current liabilities | 6,075 | 5,690 | |||
Accounts payable and other | 731 | 773 | |||
Borrowings | 4,473 | 2,440 | |||
Deferred income tax liabilities | 807 | 837 | |||
Total liabilities | 12,086 | 9,740 | |||
Equity | |||||
Limited partners | 1,477 | 1,585 | |||
Non-controlling interests attributable to: | |||||
Redemption-Exchange Units, Preferred Shares and Special Limited Partnership Units held by Brookfield Asset Management Inc. | 1,348 | 1,453 | |||
Interest of others in operating subsidiaries | 2,130 | 3,026 | |||
Total equity | 4,955 | 6,064 | $ 5,314 | $ 4,038 | |
Total liabilities and equity | $ 17,041 | 15,804 | |||
IFRS 15 | |||||
Assets | |||||
Cash and cash equivalents | 1,106 | ||||
Financial assets | 361 | ||||
Accounts and other receivable, net | 3,356 | ||||
Inventory, net | 1,072 | ||||
Assets held for sale | 14 | ||||
Other assets | 370 | ||||
Current assets | 6,279 | ||||
Financial assets | 423 | ||||
Accounts and other receivable, net | 881 | ||||
Other assets | 80 | ||||
Property, plant and equipment | 2,530 | ||||
Deferred income tax assets | 216 | ||||
Intangible assets | 3,094 | ||||
Equity accounted investments | 603 | ||||
Goodwill | 1,554 | ||||
Total assets | 15,660 | ||||
Liabilities | |||||
Accounts payable and other | 4,991 | ||||
Liabilities associated with assets held for sale | 0 | ||||
Borrowings | 825 | ||||
Current liabilities | 5,816 | ||||
Accounts payable and other | 768 | ||||
Borrowings | 2,440 | ||||
Deferred income tax liabilities | 837 | ||||
Total liabilities | 9,861 | ||||
Equity | |||||
Limited partners | 1,453 | ||||
Non-controlling interests attributable to: | |||||
Redemption-Exchange Units, Preferred Shares and Special Limited Partnership Units held by Brookfield Asset Management Inc. | 1,325 | ||||
Interest of others in operating subsidiaries | 3,021 | ||||
Total equity | 5,799 | ||||
Total liabilities and equity | 15,660 | ||||
Previously stated | |||||
Assets | |||||
Cash and cash equivalents | 1,106 | ||||
Financial assets | 361 | ||||
Accounts and other receivable, net | 3,454 | ||||
Inventory, net | 1,068 | ||||
Assets held for sale | 14 | ||||
Other assets | 430 | ||||
Current assets | 6,433 | ||||
Financial assets | 423 | ||||
Accounts and other receivable, net | 908 | ||||
Other assets | 79 | ||||
Property, plant and equipment | 2,530 | ||||
Deferred income tax assets | 174 | ||||
Intangible assets | 3,094 | ||||
Equity accounted investments | 609 | ||||
Goodwill | 1,554 | ||||
Total assets | 15,804 | ||||
Liabilities | |||||
Accounts payable and other | 4,865 | ||||
Liabilities associated with assets held for sale | 0 | ||||
Borrowings | 825 | ||||
Current liabilities | 5,690 | ||||
Accounts payable and other | 773 | ||||
Borrowings | 2,440 | ||||
Deferred income tax liabilities | 837 | ||||
Total liabilities | 9,740 | ||||
Equity | |||||
Limited partners | 1,585 | ||||
Non-controlling interests attributable to: | |||||
Redemption-Exchange Units, Preferred Shares and Special Limited Partnership Units held by Brookfield Asset Management Inc. | 1,453 | ||||
Interest of others in operating subsidiaries | 3,026 | ||||
Total equity | 6,064 | ||||
Total liabilities and equity | 15,804 | ||||
Increase (decrease) due to application of IFRS 15 | |||||
Assets | |||||
Cash and cash equivalents | 0 | ||||
Financial assets | 0 | ||||
Accounts and other receivable, net | (98) | ||||
Inventory, net | 4 | ||||
Assets held for sale | 0 | ||||
Other assets | (60) | ||||
Current assets | (154) | ||||
Financial assets | 0 | ||||
Accounts and other receivable, net | (27) | ||||
Other assets | 1 | ||||
Property, plant and equipment | 0 | ||||
Deferred income tax assets | 42 | ||||
Intangible assets | 0 | ||||
Equity accounted investments | (6) | ||||
Goodwill | 0 | ||||
Total assets | (144) | ||||
Liabilities | |||||
Accounts payable and other | 126 | ||||
Liabilities associated with assets held for sale | 0 | ||||
Borrowings | 0 | ||||
Current liabilities | 126 | ||||
Accounts payable and other | (5) | ||||
Borrowings | 0 | ||||
Deferred income tax liabilities | 0 | ||||
Total liabilities | 121 | ||||
Equity | |||||
Limited partners | (132) | ||||
Non-controlling interests attributable to: | |||||
Redemption-Exchange Units, Preferred Shares and Special Limited Partnership Units held by Brookfield Asset Management Inc. | (128) | ||||
Interest of others in operating subsidiaries | (5) | ||||
Total equity | [1] | (265) | |||
Total liabilities and equity | $ (144) | ||||
[1] | See Note 2(c) for additional information on adoption of new accounting standards. |
SIGNIFICANT ACCOUNTING POLICI48
SIGNIFICANT ACCOUNTING POLICIES - Schedules of Segment Revenue by Geography, and Timing of Revenue Recognition for IFRS 15 (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | $ 8,750,000,000 | $ 16,919,000,000 | ||
Other non IFRS 15 revenue | 25,000,000 | 50,000,000 | ||
Total revenue | 8,775,000,000 | $ 4,870,000,000 | 16,969,000,000 | $ 6,804,000,000 |
Revenue as if it were under former revenue standards | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 8,746,000,000 | 16,919,000,000 | ||
IFRS 15 Impact | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 4,000,000 | 0 | ||
Business services | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 6,716,000,000 | 13,009,000,000 | ||
Other non IFRS 15 revenue | 10,000,000 | 21,000,000 | ||
Total revenue | 6,726,000,000 | 3,273,000,000 | 13,030,000,000 | 3,889,000,000 |
Business services | Revenue as if it were under former revenue standards | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 6,716,000,000 | 13,009,000,000 | ||
Business services | IFRS 15 Impact | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 0 | 0 | ||
Industrial operations | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 849,000,000 | 1,590,000,000 | ||
Other non IFRS 15 revenue | 6,000,000 | 12,000,000 | ||
Total revenue | 855,000,000 | 406,000,000 | 1,602,000,000 | 637,000,000 |
Industrial operations | Revenue as if it were under former revenue standards | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 851,000,000 | 1,590,000,000 | ||
Industrial operations | IFRS 15 Impact | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | (2,000,000) | 0 | ||
Construction services | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 1,131,000,000 | 2,173,000,000 | ||
Other non IFRS 15 revenue | 2,000,000 | 3,000,000 | ||
Total revenue | 1,133,000,000 | 1,125,000,000 | 2,176,000,000 | 2,141,000,000 |
Construction services | Revenue as if it were under former revenue standards | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 1,125,000,000 | 2,173,000,000 | ||
Construction services | IFRS 15 Impact | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 6,000,000 | 0 | ||
Energy | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 54,000,000 | 147,000,000 | ||
Other non IFRS 15 revenue | 3,000,000 | 7,000,000 | ||
Total revenue | 57,000,000 | 64,000,000 | 154,000,000 | 133,000,000 |
Energy | Revenue as if it were under former revenue standards | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 54,000,000 | 147,000,000 | ||
Energy | IFRS 15 Impact | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 0 | 0 | ||
Corporate and Other | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 0 | 0 | ||
Other non IFRS 15 revenue | 4,000,000 | 7,000,000 | ||
Total revenue | 4,000,000 | $ 2,000,000 | 7,000,000 | $ 4,000,000 |
Corporate and Other | Revenue as if it were under former revenue standards | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 0 | 0 | ||
Corporate and Other | IFRS 15 Impact | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 0 | 0 | ||
United Kingdom | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 5,635,000,000 | 10,701,000,000 | ||
Other non IFRS 15 revenue | 2,000,000 | 6,000,000 | ||
United Kingdom | Business services | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 5,223,000,000 | 9,959,000,000 | ||
United Kingdom | Industrial operations | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 23,000,000 | 30,000,000 | ||
United Kingdom | Construction services | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 389,000,000 | 712,000,000 | ||
United Kingdom | Energy | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 0 | 0 | ||
United Kingdom | Corporate and Other | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 0 | 0 | ||
Canada | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 1,171,000,000 | 2,320,000,000 | ||
Other non IFRS 15 revenue | 5,000,000 | 11,000,000 | ||
Canada | Business services | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 953,000,000 | 1,884,000,000 | ||
Canada | Industrial operations | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 143,000,000 | 255,000,000 | ||
Canada | Construction services | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 21,000,000 | 34,000,000 | ||
Canada | Energy | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 54,000,000 | 147,000,000 | ||
Canada | Corporate and Other | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 0 | 0 | ||
Australia | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 707,000,000 | 1,386,000,000 | ||
Other non IFRS 15 revenue | 1,000,000 | 2,000,000 | ||
Australia | Business services | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 84,000,000 | 170,000,000 | ||
Australia | Industrial operations | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 0 | 0 | ||
Australia | Construction services | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 623,000,000 | 1,216,000,000 | ||
Australia | Energy | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 0 | 0 | ||
Australia | Corporate and Other | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 0 | 0 | ||
Brazil | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 376,000,000 | 894,000,000 | ||
Other non IFRS 15 revenue | 6,000,000 | 12,000,000 | ||
Brazil | Business services | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 164,000,000 | 465,000,000 | ||
Brazil | Industrial operations | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 212,000,000 | 429,000,000 | ||
Brazil | Construction services | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 0 | 0 | ||
Brazil | Energy | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 0 | 0 | ||
Brazil | Corporate and Other | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 0 | 0 | ||
USA | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 212,000,000 | 390,000,000 | ||
Other non IFRS 15 revenue | 4,000,000 | 4,000,000 | ||
USA | Business services | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 100,000,000 | 174,000,000 | ||
USA | Industrial operations | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 112,000,000 | 216,000,000 | ||
USA | Construction services | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 0 | 0 | ||
USA | Energy | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 0 | 0 | ||
USA | Corporate and Other | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 0 | 0 | ||
Middle East | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 100,000,000 | 214,000,000 | ||
Other non IFRS 15 revenue | 0 | 0 | ||
Middle East | Business services | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 1,000,000 | 2,000,000 | ||
Middle East | Industrial operations | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 1,000,000 | 1,000,000 | ||
Middle East | Construction services | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 98,000,000 | 211,000,000 | ||
Middle East | Energy | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 0 | 0 | ||
Middle East | Corporate and Other | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 0 | 0 | ||
Other | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 549,000,000 | 1,014,000,000 | ||
Other non IFRS 15 revenue | 7,000,000 | 15,000,000 | ||
Other | Business services | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 191,000,000 | 355,000,000 | ||
Other | Industrial operations | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 358,000,000 | 659,000,000 | ||
Other | Construction services | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 0 | 0 | ||
Other | Energy | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 0 | 0 | ||
Other | Corporate and Other | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 0 | 0 | ||
Goods/services provided at a point in time | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 7,181,000,000 | 13,678,000,000 | ||
Goods/services provided at a point in time | Business services | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 6,325,000,000 | 12,024,000,000 | ||
Goods/services provided at a point in time | Industrial operations | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 781,000,000 | 1,473,000,000 | ||
Goods/services provided at a point in time | Construction services | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 21,000,000 | 34,000,000 | ||
Goods/services provided at a point in time | Energy | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 54,000,000 | 147,000,000 | ||
Goods/services provided at a point in time | Corporate and Other | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 0 | 0 | ||
Services transferred over a period of time | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 1,569,000,000 | 3,241,000,000 | ||
Services transferred over a period of time | Business services | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 391,000,000 | 985,000,000 | ||
Services transferred over a period of time | Industrial operations | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 68,000,000 | 117,000,000 | ||
Services transferred over a period of time | Construction services | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 1,110,000,000 | 2,139,000,000 | ||
Services transferred over a period of time | Energy | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | 0 | 0 | ||
Services transferred over a period of time | Corporate and Other | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Total IFRS 15 revenue | $ 0 | $ 0 |
SIGNIFICANT ACCOUNTING POLICI49
SIGNIFICANT ACCOUNTING POLICIES - Schedule of Impact Upon Adoption of IFRS 9 (Details) $ in Millions | Jan. 01, 2018USD ($) |
Disclosure of financial assets [line items] | |
Opening balance (IAS 39) | $ 6,447 |
Reclassifications | 0 |
Revised opening balance (IFRS 9) | 6,447 |
FVTPL | |
Disclosure of financial assets [line items] | |
Opening balance (IAS 39) | 166 |
Reclassifications | 211 |
Revised opening balance (IFRS 9) | 377 |
FVOCI | |
Disclosure of financial assets [line items] | |
Opening balance (IAS 39) | 429 |
Reclassifications | (211) |
Revised opening balance (IFRS 9) | 218 |
Amortized Cost | |
Disclosure of financial assets [line items] | |
Opening balance (IAS 39) | 5,852 |
Reclassifications | 0 |
Revised opening balance (IFRS 9) | $ 5,852 |
ACQUISITION OF BUSINESSES - Acq
ACQUISITION OF BUSINESSES - Acquisitions Completed in the Current Year (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about business combination [line items] | ||
Goodwill | $ 1,677 | $ 1,554 |
Various acquisitions | ||
Disclosure of detailed information about business combination [line items] | ||
Cash | 49 | 593 |
Contingent consideration | 13 | |
Total Consideration | 49 | 606 |
Cash and cash equivalents | 32 | 335 |
Accounts receivable and other | 76 | 2,226 |
Inventory | 58 | 700 |
Equity accounted investments | 1 | 212 |
Property, plant and equipment | 189 | 503 |
Intangible assets | 236 | 2,839 |
Goodwill | 188 | 328 |
Deferred income tax assets | 27 | 59 |
Financial assets | 2 | 106 |
Accounts payable and other | (200) | (2,112) |
Borrowings | (266) | (1,678) |
Deferred income tax liabilities | (72) | (789) |
Net assets acquired before non-controlling interest | 271 | 2,787 |
Non-controlling interest | (222) | (2,181) |
Net Assets Acquired | 49 | 606 |
Various acquisitions | Business services | ||
Disclosure of detailed information about business combination [line items] | ||
Cash | 4 | 198 |
Contingent consideration | 13 | |
Total Consideration | 4 | 211 |
Cash and cash equivalents | 2 | 39 |
Accounts receivable and other | 1 | 1,248 |
Inventory | 0 | 690 |
Equity accounted investments | 0 | 122 |
Property, plant and equipment | 2 | 264 |
Intangible assets | 5 | 403 |
Goodwill | 8 | 325 |
Deferred income tax assets | 0 | 9 |
Financial assets | 0 | 106 |
Accounts payable and other | (1) | (1,885) |
Borrowings | 0 | (210) |
Deferred income tax liabilities | 0 | (58) |
Net assets acquired before non-controlling interest | 17 | 1,053 |
Non-controlling interest | (13) | (842) |
Net Assets Acquired | 4 | 211 |
Various acquisitions | Industrial operations | ||
Disclosure of detailed information about business combination [line items] | ||
Cash | 45 | 383 |
Contingent consideration | 0 | |
Total Consideration | 45 | 383 |
Cash and cash equivalents | 30 | 296 |
Accounts receivable and other | 75 | 978 |
Inventory | 58 | 10 |
Equity accounted investments | 1 | 90 |
Property, plant and equipment | 187 | 200 |
Intangible assets | 231 | 2,436 |
Goodwill | 180 | 3 |
Deferred income tax assets | 27 | 50 |
Financial assets | 2 | 0 |
Accounts payable and other | (199) | (227) |
Borrowings | (266) | (1,468) |
Deferred income tax liabilities | (72) | (729) |
Net assets acquired before non-controlling interest | 254 | 1,704 |
Non-controlling interest | (209) | (1,321) |
Net Assets Acquired | $ 45 | $ 383 |
ACQUISITION OF BUSINESSES - Bus
ACQUISITION OF BUSINESSES - Business Services, Facilities Management Business ("BGIS") (Details) - USD ($) $ in Millions | Feb. 01, 2018 | Mar. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about business combination [line items] | ||||
Goodwill | $ 1,677 | $ 1,554 | ||
Facilities Management Business (BGIS) | Business services | ||||
Disclosure of detailed information about business combination [line items] | ||||
Percentage of voting equity interests acquired | 85.00% | |||
Consideration transferred, acquisition-date fair value | $ 4 | |||
Proportion of ownership interest in subsidiary | 22.00% | |||
Acquisition-related costs | $ 1 | |||
Goodwill | $ 8 | |||
Revenue of acquiree since acquisition date | $ 1 | |||
Profit (loss) of acquiree since acquisition date | $ 1 | |||
Revenue of acquiree as if combination occurred at beginning of period | 1 | |||
Profit (loss) of acquiree as if combination occurred at beginning of period | $ (1) |
ACQUISITION OF BUSINESSES - Sch
ACQUISITION OF BUSINESSES - Schoeller Allibert Group B.V ("Schoeller Allibert") (Details) - USD ($) | May 15, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about business combination [line items] | |||
Goodwill | $ 1,677,000,000 | $ 1,554,000,000 | |
Industrial operations | Schoeller Allibert | |||
Disclosure of detailed information about business combination [line items] | |||
Proportion of ownership interest in subsidiary | 14.00% | ||
Percentage of voting equity interests acquired | 52.00% | ||
Consideration transferred, acquisition-date fair value | $ 45,000,000 | ||
Acquisition-related costs | 9,000,000 | ||
Goodwill | 180,000,000 | ||
Goodwill expected to be deductible for tax purposes | 0 | ||
Intangible assets | $ 231,000,000 | ||
Revenue of acquiree since acquisition date | 12,000,000 | ||
Profit (loss) of acquiree since acquisition date | 1,000,000 | ||
Revenue of acquiree as if combination occurred at beginning of period | 41,000,000 | ||
Profit (loss) of acquiree as if combination occurred at beginning of period | $ (3,000,000) | ||
Brookfield Business Partners L.P. and Institutional Investors | Industrial operations | Schoeller Allibert | |||
Disclosure of detailed information about business combination [line items] | |||
Proportion of ownership interest in subsidiary | 70.00% |
ACQUISITION OF BUSINESSES - A53
ACQUISITION OF BUSINESSES - Acquisitions completed in 2017 (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about business combination [line items] | ||
Goodwill | $ 1,677 | $ 1,554 |
Various acquisitions | ||
Disclosure of detailed information about business combination [line items] | ||
Cash | 49 | 593 |
Contingent consideration | 13 | |
Total Consideration | 49 | 606 |
Cash and cash equivalents | 32 | 335 |
Accounts receivable and other | 76 | 2,226 |
Inventory | 58 | 700 |
Equity accounted investments | 1 | 212 |
Property, plant and equipment | 189 | 503 |
Intangible assets | 236 | 2,839 |
Goodwill | 188 | 328 |
Deferred income tax assets | 27 | 59 |
Financial assets | 2 | 106 |
Other assets | 65 | |
Acquisition gain | (7) | |
Accounts payable and other | (200) | (2,112) |
Borrowings | (266) | (1,678) |
Deferred income tax liabilities | (72) | (789) |
Net assets acquired before non-controlling interest | 271 | 2,787 |
Non-controlling interest | (222) | (2,181) |
Net Assets Acquired | 49 | 606 |
Various acquisitions | Business services | ||
Disclosure of detailed information about business combination [line items] | ||
Cash | 4 | 198 |
Contingent consideration | 13 | |
Total Consideration | 4 | 211 |
Cash and cash equivalents | 2 | 39 |
Accounts receivable and other | 1 | 1,248 |
Inventory | 0 | 690 |
Equity accounted investments | 0 | 122 |
Property, plant and equipment | 2 | 264 |
Intangible assets | 5 | 403 |
Goodwill | 8 | 325 |
Deferred income tax assets | 0 | 9 |
Financial assets | 0 | 106 |
Other assets | 0 | |
Acquisition gain | 0 | |
Accounts payable and other | (1) | (1,885) |
Borrowings | 0 | (210) |
Deferred income tax liabilities | 0 | (58) |
Net assets acquired before non-controlling interest | 17 | 1,053 |
Non-controlling interest | (13) | (842) |
Net Assets Acquired | 4 | 211 |
Various acquisitions | Industrial operations | ||
Disclosure of detailed information about business combination [line items] | ||
Cash | 45 | 383 |
Contingent consideration | 0 | |
Total Consideration | 45 | 383 |
Cash and cash equivalents | 30 | 296 |
Accounts receivable and other | 75 | 978 |
Inventory | 58 | 10 |
Equity accounted investments | 1 | 90 |
Property, plant and equipment | 187 | 200 |
Intangible assets | 231 | 2,436 |
Goodwill | 180 | 3 |
Deferred income tax assets | 27 | 50 |
Financial assets | 2 | 0 |
Other assets | 65 | |
Acquisition gain | 0 | |
Accounts payable and other | (199) | (227) |
Borrowings | (266) | (1,468) |
Deferred income tax liabilities | (72) | (729) |
Net assets acquired before non-controlling interest | 254 | 1,704 |
Non-controlling interest | (209) | (1,321) |
Net Assets Acquired | $ 45 | 383 |
Various acquisitions | Energy | ||
Disclosure of detailed information about business combination [line items] | ||
Cash | 12 | |
Contingent consideration | 0 | |
Total Consideration | 12 | |
Cash and cash equivalents | 0 | |
Accounts receivable and other | 0 | |
Inventory | 0 | |
Equity accounted investments | 0 | |
Property, plant and equipment | 39 | |
Intangible assets | 0 | |
Goodwill | 0 | |
Deferred income tax assets | 0 | |
Financial assets | 0 | |
Other assets | 0 | |
Acquisition gain | (7) | |
Accounts payable and other | 0 | |
Borrowings | 0 | |
Deferred income tax liabilities | (2) | |
Net assets acquired before non-controlling interest | 30 | |
Non-controlling interest | (18) | |
Net Assets Acquired | $ 12 |
ACQUISITION OF BUSINESSES - B54
ACQUISITION OF BUSINESSES - Business Services, Fuel Holdings Limited ("Greenergy") (Details) | Jul. 17, 2017USD ($) | May 10, 2017USD ($) | Oct. 31, 2017USD ($)acquisition | Dec. 31, 2017USD ($)acquisition | Jun. 30, 2018USD ($) |
Disclosure of detailed information about business combination [line items] | |||||
Gains (losses) on hedging instrument, fair value hedges | $ 3,000,000 | $ 12,000,000 | |||
Goodwill | $ 1,554,000,000 | $ 1,677,000,000 | |||
Greenergy Fuels Holding Limited | Business services | |||||
Disclosure of detailed information about business combination [line items] | |||||
Percentage of voting equity interests acquired | 85.00% | ||||
Consideration transferred, acquisition-date fair value | $ 79,000,000 | ||||
Proportion of ownership interest in subsidiary | 14.00% | ||||
Contingent consideration, EBITDA target period | 5 years | ||||
Contingent consideration arrangements and indemnification assets recognised as of acquisition date | $ 11,000,000 | ||||
Acquisition-related costs | 7,000,000 | ||||
Goodwill | 93,000,000 | ||||
Goodwill expected to be deductible for tax purposes | 0 | ||||
Revenue of acquiree since acquisition date | 1,917,000,000 | ||||
Profit (loss) of acquiree since acquisition date | 2,000,000 | ||||
Revenue of acquiree as if combination occurred at beginning of period | 2,865,000,000 | ||||
Profit (loss) of acquiree as if combination occurred at beginning of period | 4,000,000 | ||||
Greenergy Fuels Holding Limited | Business services | Bottom of range | |||||
Disclosure of detailed information about business combination [line items] | |||||
Contingent consideration arrangements and indemnification assets recognised as of acquisition date | 6,000,000 | ||||
Greenergy Fuels Holding Limited | Business services | Top of range | |||||
Disclosure of detailed information about business combination [line items] | |||||
Contingent consideration arrangements and indemnification assets recognised as of acquisition date | $ 12,000,000 | ||||
Inver Energy And Canadian Operators Petroleum | |||||
Disclosure of detailed information about business combination [line items] | |||||
Acquisition-related costs | $ 1,000,000 | ||||
Inver Energy And Canadian Operators Petroleum | Business services | |||||
Disclosure of detailed information about business combination [line items] | |||||
Consideration transferred, acquisition-date fair value | 10,000,000 | ||||
Goodwill | 9,000,000 | ||||
Goodwill expected to be deductible for tax purposes | $ 0 | ||||
Revenue of acquiree since acquisition date | 17,000,000 | ||||
Profit (loss) of acquiree since acquisition date | 1,000,000 | ||||
Revenue of acquiree as if combination occurred at beginning of period | 92,000,000 | ||||
Profit (loss) of acquiree as if combination occurred at beginning of period | $ 1,000,000 | ||||
Number of acquisitions | acquisition | 2 | 2 | |||
Inver Energy | Business services | |||||
Disclosure of detailed information about business combination [line items] | |||||
Percentage of voting equity interests acquired | 85.00% | ||||
Proportion of ownership interest in subsidiary | 14.00% | ||||
Canadian Operators Petroleum | |||||
Disclosure of detailed information about business combination [line items] | |||||
Percentage of voting equity interests acquired | 85.00% | ||||
Proportion of ownership interest in subsidiary | 14.00% | ||||
Canadian Operators Petroleum | Business services | |||||
Disclosure of detailed information about business combination [line items] | |||||
Percentage of voting equity interests acquired | 85.00% |
ACQUISITION OF BUSINESSES - B55
ACQUISITION OF BUSINESSES - Business Services, Fuel Marketing (Details) $ in Millions | Jul. 17, 2017USD ($)gas_station | May 10, 2017USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2018USD ($) |
Disclosure of detailed information about business combination [line items] | ||||
Gains (losses) on hedging instrument, fair value hedges | $ 3 | $ 12 | ||
Goodwill | $ 1,554 | $ 1,677 | ||
Business services | Fuel Marketing Business | ||||
Disclosure of detailed information about business combination [line items] | ||||
Number of gas stations and kiosks acquired | gas_station | 213 | |||
Consideration transferred, acquisition-date fair value | $ 110 | |||
Proportion of ownership interest in subsidiary | 26.00% | |||
Percentage of voting equity interests acquired | 100.00% | |||
Acquisition-related costs | $ 4 | |||
Goodwill | $ 211 | |||
Revenue of acquiree since acquisition date | 161 | |||
Profit (loss) of acquiree since acquisition date | 2 | |||
Revenue of acquiree as if combination occurred at beginning of period | 353 | |||
Profit (loss) of acquiree as if combination occurred at beginning of period | $ 4 |
ACQUISITION OF BUSINESSES - B56
ACQUISITION OF BUSINESSES - Business Services, Other (Details) - USD ($) | Jun. 19, 2017 | Dec. 31, 2017 | Jun. 30, 2018 |
Disclosure of detailed information about business combination [line items] | |||
Goodwill | $ 1,554,000,000 | $ 1,677,000,000 | |
Business services | Real Estate Brokerage Operation | |||
Disclosure of detailed information about business combination [line items] | |||
Consideration transferred, acquisition-date fair value | $ 9,000,000 | ||
Proportion of ownership interest in subsidiary | 100.00% | ||
Percentage of voting equity interests acquired | 100.00% | ||
Acquisition-related costs (less than) | $ 1,000,000 | ||
Goodwill | 9,000,000 | ||
Goodwill expected to be deductible for tax purposes | $ 0 | ||
Revenue of acquiree since acquisition date | 2,000,000 | ||
Profit (loss) of acquiree since acquisition date | 1,000,000 | ||
Revenue of acquiree as if combination occurred at beginning of period | 7,000,000 | ||
Profit (loss) of acquiree as if combination occurred at beginning of period | $ 1,000,000 |
ACQUISITION OF BUSINESSES - Ind
ACQUISITION OF BUSINESSES - Industrial Operations, BRK Abiental (Details) - USD ($) | Apr. 25, 2017 | May 30, 2017 | Dec. 31, 2017 | Jun. 30, 2018 | Apr. 25, 2018 |
Disclosure of detailed information about business combination [line items] | |||||
Goodwill | $ 1,554,000,000 | $ 1,677,000,000 | |||
BRK Ambiental | |||||
Disclosure of detailed information about business combination [line items] | |||||
Proportion of ownership interest in associate | 12.50% | ||||
BRK Ambiental | Industrial operations | |||||
Disclosure of detailed information about business combination [line items] | |||||
Remeasurement gain (loss) | $ 0 | ||||
Proportion of ownership interest in subsidiary | 27.00% | ||||
Consideration held in escrow | 35,000,000 | ||||
Consideration held in escrow, release period | 5 years | ||||
Acquisition-related costs | $ 11,000,000 | ||||
Goodwill | $ 3,000,000 | ||||
Goodwill expected to be deductible for tax purposes | $ 0 | ||||
Revenue of acquiree since acquisition date | 132,000,000 | ||||
Profit (loss) of acquiree since acquisition date | 5,000,000 | ||||
Revenue of acquiree as if combination occurred at beginning of period | 199,000,000 | ||||
Profit (loss) of acquiree as if combination occurred at beginning of period | $ 17,000,000 | ||||
BRK Ambiental | Industrial operations | Brookfield Business Partners L.P. and Institutional Investors | |||||
Disclosure of detailed information about business combination [line items] | |||||
Proportion of ownership interest in subsidiary | 70.00% | ||||
BRK Ambiental - Ativos Maduros S.A. | Industrial operations | |||||
Disclosure of detailed information about business combination [line items] | |||||
Percentage of voting equity interests acquired | 87.50% |
ACQUISITION OF BUSINESSES - Ene
ACQUISITION OF BUSINESSES - Energy (Details) - Energy - Service And Swabbing Rig Assets Bundle - USD ($) $ in Millions | Nov. 05, 2017 | Dec. 31, 2017 |
Disclosure of detailed information about business combination [line items] | ||
Consideration transferred, acquisition-date fair value | $ 12 | |
Proportion of ownership interest in subsidiary | 40.00% | |
Percentage of voting equity interests acquired | 73.00% | |
Acquisition-related costs | $ 1 | |
Gain recognised in bargain purchase transaction | $ 7 | |
Revenue of acquiree since acquisition date | $ 3 | |
Profit (loss) of acquiree since acquisition date | 1 | |
Revenue of acquiree as if combination occurred at beginning of period | 13 | |
Profit (loss) of acquiree as if combination occurred at beginning of period | $ 2 |
FAIR VALUE OF FINANCIAL INSTR59
FAIR VALUE OF FINANCIAL INSTRUMENTS - Financial Instrument Classification (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Disclosure of financial assets [line items] | ||
Financial assets | $ 7,391 | $ 6,447 |
Prepayments | 400 | 314 |
Provisions and decommissioning liabilities | 2,073 | 1,713 |
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 9,191 | 7,190 |
FVTPL | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 110 | 159 |
FVOCI | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 6 | 0 |
Amortized Cost | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 9,075 | 7,031 |
FVTPL | ||
Disclosure of financial assets [line items] | ||
Financial assets | 337 | 166 |
FVOCI | ||
Disclosure of financial assets [line items] | ||
Financial assets | 347 | 429 |
Amortized Cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | 6,707 | 5,852 |
Accounts payable and other | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 4,112 | 3,925 |
Accounts payable and other | FVTPL | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 110 | 159 |
Accounts payable and other | FVOCI | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 6 | 0 |
Accounts payable and other | Amortized Cost | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 3,996 | 3,766 |
Borrowings (current and non-current) | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 5,079 | 3,265 |
Borrowings (current and non-current) | FVTPL | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 0 | 0 |
Borrowings (current and non-current) | FVOCI | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 0 | 0 |
Borrowings (current and non-current) | Amortized Cost | ||
Disclosure of financial liabilities [line items] | ||
Financial liabilities | 5,079 | 3,265 |
Cash and cash equivalents | ||
Disclosure of financial assets [line items] | ||
Financial assets | 1,873 | 1,106 |
Cash and cash equivalents | FVTPL | ||
Disclosure of financial assets [line items] | ||
Financial assets | 0 | 0 |
Cash and cash equivalents | FVOCI | ||
Disclosure of financial assets [line items] | ||
Financial assets | 0 | 0 |
Cash and cash equivalents | Amortized Cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | 1,873 | 1,106 |
Accounts receivable, net (current and non-current) | ||
Disclosure of financial assets [line items] | ||
Financial assets | 4,454 | 4,362 |
Accounts receivable, net (current and non-current) | FVTPL | ||
Disclosure of financial assets [line items] | ||
Financial assets | 45 | 50 |
Accounts receivable, net (current and non-current) | FVOCI | ||
Disclosure of financial assets [line items] | ||
Financial assets | 0 | 0 |
Accounts receivable, net (current and non-current) | Amortized Cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | 4,409 | 4,312 |
Other assets (current and non-current) | ||
Disclosure of financial assets [line items] | ||
Financial assets | 118 | 195 |
Other assets (current and non-current) | FVTPL | ||
Disclosure of financial assets [line items] | ||
Financial assets | 0 | 0 |
Other assets (current and non-current) | FVOCI | ||
Disclosure of financial assets [line items] | ||
Financial assets | 0 | 0 |
Other assets (current and non-current) | Amortized Cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | 118 | 195 |
Financial assets (current and non-current) | ||
Disclosure of financial assets [line items] | ||
Financial assets | 946 | 784 |
Financial assets (current and non-current) | FVTPL | ||
Disclosure of financial assets [line items] | ||
Financial assets | 292 | 116 |
Financial assets (current and non-current) | FVOCI | ||
Disclosure of financial assets [line items] | ||
Financial assets | 347 | 429 |
Financial assets (current and non-current) | Amortized Cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | $ 307 | $ 239 |
FAIR VALUE OF FINANCIAL INSTR60
FAIR VALUE OF FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | |||||
Cash | $ 957,000,000 | $ 957,000,000 | $ 556,000,000 | ||
Cash equivalents | 916,000,000 | 916,000,000 | 550,000,000 | ||
Deposits, classified as cash equivalents | 690,000,000 | 690,000,000 | 384,000,000 | ||
Financial liabilities | 9,191,000,000 | 9,191,000,000 | 7,190,000,000 | ||
Gross financial assets subject to offsetting | 4,000,000 | 4,000,000 | 21,000,000 | ||
Gross financial liabilities set off against financial assets subject to offsetting | (4,000,000) | (4,000,000) | 21,000,000 | ||
Hedges of net investment in foreign operations | |||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | |||||
Derivative financial assets | 35,000,000 | 35,000,000 | 5,000,000 | ||
Derivative financial liabilities | 3,000,000 | 3,000,000 | 27,000,000 | ||
Hedges of net investment in foreign operations | FVOCI | |||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | |||||
Gains (losses) on hedging instrument, fair value hedges | 32,000,000 | $ (15,000,000) | 65,000,000 | $ (46,000,000) | |
Cash flow hedges | |||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | |||||
Derivative financial assets | 43,000,000 | 43,000,000 | 29,000,000 | ||
Derivative financial liabilities | 3,000,000 | 3,000,000 | 0 | ||
Cash flow hedges | FVOCI | |||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | |||||
Gains (losses) on hedging instrument, fair value hedges | 23,000,000 | $ 2,000,000 | 13,000,000 | $ 19,000,000 | |
Accounts receivable, net (current and non-current) | Energy | |||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | |||||
Financial liabilities | 71,000,000 | 71,000,000 | 70,000,000 | ||
Warrants | Energy | |||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | |||||
Financial liabilities | 39,000,000 | 39,000,000 | |||
Level 1 | Recurring fair value measurement | |||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | |||||
Financial assets | 271,000,000 | 271,000,000 | 222,000,000 | ||
Financial liabilities | 12,000,000 | 12,000,000 | 30,000,000 | ||
Level 1 | Accounts receivable, net (current and non-current) | Energy | |||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | |||||
Financial liabilities, at fair value | 88,000,000 | 88,000,000 | 88,000,000 | ||
Level 1 | Warrants | Energy | |||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | |||||
Financial liabilities, at fair value | 50,000,000 | 50,000,000 | |||
Level 3 | Recurring fair value measurement | |||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | |||||
Financial assets | 255,000,000 | 255,000,000 | 257,000,000 | ||
Financial liabilities | $ 63,000,000 | $ 63,000,000 | $ 64,000,000 |
FAIR VALUE OF FINANCIAL INSTR61
FAIR VALUE OF FINANCIAL INSTRUMENTS - Fair Value Hierarchy Levels (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial liabilities | $ 9,191 | $ 7,190 |
Recurring fair value measurement | Level 1 | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | 271 | 222 |
Financial liabilities | 12 | 30 |
Recurring fair value measurement | Level 2 | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | 158 | 116 |
Financial liabilities | 41 | 65 |
Recurring fair value measurement | Level 3 | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | 255 | 257 |
Financial liabilities | 63 | 64 |
Recurring fair value measurement | Derivative assets/liabilities | Level 1 | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial liabilities | 12 | 30 |
Recurring fair value measurement | Derivative assets/liabilities | Level 2 | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial liabilities | 41 | 65 |
Recurring fair value measurement | Derivative assets/liabilities | Level 3 | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial liabilities | 0 | 0 |
Recurring fair value measurement | Other financial liabilities | Level 1 | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial liabilities | 0 | 0 |
Recurring fair value measurement | Other financial liabilities | Level 2 | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial liabilities | 0 | 0 |
Recurring fair value measurement | Other financial liabilities | Level 3 | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial liabilities | 63 | 64 |
Recurring fair value measurement | Common shares | Level 1 | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | 263 | 207 |
Recurring fair value measurement | Common shares | Level 2 | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | 0 | 0 |
Recurring fair value measurement | Common shares | Level 3 | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | 0 | 0 |
Recurring fair value measurement | Accounts receivable | Level 1 | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | 0 | 0 |
Recurring fair value measurement | Accounts receivable | Level 2 | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | 45 | 50 |
Recurring fair value measurement | Accounts receivable | Level 3 | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | 0 | 0 |
Recurring fair value measurement | Loans and notes receivable | Level 1 | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | 0 | 0 |
Recurring fair value measurement | Loans and notes receivable | Level 2 | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | 0 | 0 |
Recurring fair value measurement | Loans and notes receivable | Level 3 | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | 2 | 1 |
Recurring fair value measurement | Derivative assets/liabilities | Level 1 | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | 8 | 15 |
Recurring fair value measurement | Derivative assets/liabilities | Level 2 | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | 113 | 66 |
Recurring fair value measurement | Derivative assets/liabilities | Level 3 | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | 39 | 34 |
Recurring fair value measurement | Other financial assets | Level 1 | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | 0 | 0 |
Recurring fair value measurement | Other financial assets | Level 2 | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | 0 | 0 |
Recurring fair value measurement | Other financial assets | Level 3 | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | $ 214 | $ 222 |
FAIR VALUE OF FINANCIAL INSTR62
FAIR VALUE OF FINANCIAL INSTRUMENTS - Change in Balance of Fair Value Assets and Liabilities (Details) - Recurring fair value measurement - Level 3 $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Reconciliation of changes in fair value measurement, assets [abstract] | |
Balance at beginning of year | $ 257 |
Fair value change recorded in net income | 1 |
Fair value change recorded in other comprehensive income | (1) |
Disposals | (2) |
Balance at end of period | 255 |
Other financial assets | |
Reconciliation of changes in fair value measurement, assets [abstract] | |
Balance at beginning of year | 222 |
Balance at end of period | 214 |
Loans and notes receivable | |
Reconciliation of changes in fair value measurement, assets [abstract] | |
Balance at beginning of year | 1 |
Balance at end of period | $ 2 |
FINANCIAL ASSETS (Details)
FINANCIAL ASSETS (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Current | |||||
Marketable securities | $ 262,000,000 | $ 262,000,000 | $ 207,000,000 | ||
Restricted cash | 77,000,000 | 77,000,000 | 68,000,000 | ||
Derivative contracts | 99,000,000 | 99,000,000 | 75,000,000 | ||
Loans and notes receivable | 46,000,000 | 46,000,000 | 11,000,000 | ||
Total current | 484,000,000 | 484,000,000 | 361,000,000 | ||
Non-current | |||||
Marketable securities | 1,000,000 | 1,000,000 | 1,000,000 | ||
Restricted cash | 7,000,000 | 7,000,000 | 11,000,000 | ||
Derivative contracts | 61,000,000 | 61,000,000 | 7,000,000 | ||
Loans and notes receivable | 179,000,000 | 179,000,000 | 150,000,000 | ||
Other financial assets | 214,000,000 | 214,000,000 | 254,000,000 | ||
Total non-current | 462,000,000 | 462,000,000 | $ 423,000,000 | ||
Gains on disposals of marketable securities | $ 0 | $ 6,000,000 | $ 0 | $ 39,000,000 |
ACCOUNTS AND OTHER RECEIVABLE64
ACCOUNTS AND OTHER RECEIVABLE, NET - Current and Non-current Balances (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Current, net | $ 3,676 | $ 3,454 |
Non-current, net | ||
Retainer on customer contract | 103 | 197 |
Billing rights | 675 | 711 |
Total Non-current, net | 778 | 908 |
Total | $ 4,454 | $ 4,362 |
INVENTORY, NET (Details)
INVENTORY, NET (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Current | ||
Raw materials and consumables | $ 111 | $ 138 |
Fuel products | 634 | 612 |
Work in progress | 115 | 94 |
RTFO certificates | 256 | 193 |
Finished goods and other | 138 | 31 |
Carrying amount of inventories | 1,254 | 1,068 |
RTFO certificates held for trading and recorded at fair value | $ 1 | $ 60 |
ASSETS HELD FOR SALE - Assets a
ASSETS HELD FOR SALE - Assets and Liabilities Classified as Held for Sale (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Disclosure Of Assets And Liabilities Held For Sale [Line Items] | ||
Property, plant and equipment | $ 2,575 | $ 2,530 |
Total assets | 17,041 | 15,804 |
Accounts payable and other | 5,454 | 4,865 |
Total liabilities | 12,086 | 9,740 |
Assets and liabilities classified as held for sale | ||
Disclosure Of Assets And Liabilities Held For Sale [Line Items] | ||
Accounts and other receivable, net | 49 | 0 |
Inventory | 11 | 0 |
Property, plant and equipment | 36 | 14 |
Total assets | 96 | 14 |
Accounts payable and other | 15 | 0 |
Total liabilities | $ 15 | $ 0 |
ASSETS HELD FOR SALE - Narrativ
ASSETS HELD FOR SALE - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |
Apr. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disclosure Of Assets And Liabilities Held For Sale [Line Items] | ||||
Gain on sale of assets | $ (106) | $ (281) | ||
Assets and liabilities classified as held for sale | Industrial operations | Infrastructure Support Manufacturing Business | ||||
Disclosure Of Assets And Liabilities Held For Sale [Line Items] | ||||
Proceeds from sale of assets held for sale | $ 52 | 82 | ||
Gain on sale of assets | 35 | 51 | ||
Assets and liabilities classified as held for sale | Business services | Real Estate Brokerage Services | ||||
Disclosure Of Assets And Liabilities Held For Sale [Line Items] | ||||
Proceeds from sale of assets held for sale | $ 55 | |||
Gain on sale of assets | $ 55 | |||
Proportion of ownership interest call option by associate in joint venture | 33.00% |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Current | ||
Work in progress | $ 118 | $ 195 |
Prepayments and other assets | 327 | 235 |
Total current | 445 | 430 |
Non-current | ||
Prepayments and other assets | 73 | 79 |
Total non-current | $ 73 | $ 79 |
EQUITY ACCOUNTED INVESTMENTS -
EQUITY ACCOUNTED INVESTMENTS - Change in Investments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Interests In Other Entities [Abstract] | |||||
Balance at beginning of year | $ 609 | $ 166 | $ 166 | ||
Adoption of new accounting standard | (7) | 0 | |||
Acquisitions through business combinations | (18) | 231 | |||
Additions | 8 | 208 | |||
Share of net income | $ (7) | $ 14 | 10 | $ 24 | 69 |
Share of other comprehensive income/(loss) | (3) | (5) | |||
Distributions received | (23) | (59) | |||
Foreign currency translation | (18) | (1) | |||
Reclassification to assets held for sale and disposition of interest | (75) | 0 | |||
Balance at end of period | $ 483 | $ 483 | $ 609 |
EQUITY ACCOUNTED INVESTMENTS 70
EQUITY ACCOUNTED INVESTMENTS - Narrative (Details) $ in Millions | Jan. 23, 2018gaming_facility | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) |
Disclosure Of Associates And Joint Ventures [Line Items] | |||
Increase in equity accounted investments from acquisitions | $ (18) | $ 231 | |
Distributions received from equity accounted investments | 23 | 59 | |
Energy | |||
Disclosure Of Associates And Joint Ventures [Line Items] | |||
Distributions received from equity accounted investments | $ 15 | ||
Gaming Facilities | |||
Disclosure Of Associates And Joint Ventures [Line Items] | |||
Number of gaming facilities | gaming_facility | 3 | ||
Minimum period of operating rights | 22 years | ||
Increase in equity accounted investments from acquisitions | $ 8 |
ACCOUNTS PAYABLE AND OTHER - Ac
ACCOUNTS PAYABLE AND OTHER - Accounts Payable and Other (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Current | ||
Accounts payable | $ 1,503 | $ 1,451 |
Accrued and other liabilities | 3,251 | 2,992 |
Work in progress | 650 | 341 |
Provisions and decommissioning liabilities | 50 | 81 |
Total current | 5,454 | 4,865 |
Non-current | ||
Accounts payable | 95 | 113 |
Accrued and other liabilities | 438 | 435 |
Work in progress | 64 | 86 |
Provisions and decommissioning liabilities | 134 | 139 |
Total non-current | 731 | 773 |
Bank overdrafts | 857 | $ 581 |
Defined benefit plans | ||
Disclosure of defined benefit plans [line items] | ||
Net defined benefit liability | 42 | |
Current net defined benefit liability | 1 | |
Non-current net defined benefit liability | 41 | |
Post-retirement benefit plans | ||
Disclosure of defined benefit plans [line items] | ||
Net defined benefit liability | 28 | |
Current net defined benefit liability | 2 | |
Non-current net defined benefit liability | $ 26 |
CONTRACTS IN PROGRESS (Details)
CONTRACTS IN PROGRESS (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Construction Contracts [Abstract] | ||
Contract costs incurred to date | $ 12,949 | $ 12,129 |
Profit recognized to date (less recognized losses) | 241 | 558 |
Contract costs incurred and profit recognized (less recognized losses) | 13,190 | 12,687 |
Less: progress billings | (13,786) | (12,919) |
Contract work in progress (liability) | (596) | (232) |
Comprising: | ||
Amounts due from customers — work in progress (current) | 118 | 195 |
Amounts due to customers — creditors (current / non-current) | (714) | (427) |
Contract work in progress (liability) | $ (596) | $ (232) |
BORROWINGS (Details)
BORROWINGS (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | May 31, 2018 | Jun. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about borrowings [line items] | |||||
Borrowings | $ 5,079,000,000 | $ 5,079,000,000 | $ 5,079,000,000 | $ 3,265,000,000 | |
Increase in borrowings | 1,814,000,000 | ||||
Senior Secured Term Loan | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Borrowings | 2,250,000,000 | 2,250,000,000 | 2,250,000,000 | ||
Repayments of bonds, notes and debentures | $ 358,000,000 | ||||
Brookfield Credit Agreements | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Term of borrowings | 3 years | ||||
Credit facility, maximum borrowing capacity | 500,000,000 | 500,000,000 | $ 500,000,000 | ||
Revolving Credit Facility | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Credit facility, maximum borrowing capacity | $ 250,000,000 | ||||
Revolving Credit Facility | Floating interest rate | LIBOR or Bankers' Acceptance Rate | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Basis spread on variable rate | 2.75% | ||||
Revolving Credit Facility | Floating interest rate | Base Rate or Prime Rate | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Basis spread on variable rate | 1.75% | ||||
Amended Revolving Credit Facility | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Credit facility, maximum borrowing capacity | 825,000,000 | $ 725,000,000 | $ 825,000,000 | $ 825,000,000 | |
Increase in borrowing capacity | $ 100,000,000 | $ 475,000,000 | |||
Extension period | 2 years | ||||
Amended Revolving Credit Facility | Floating interest rate | LIBOR or Bankers' Acceptance Rate | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Basis spread on variable rate | 2.50% | 2.50% | 2.50% | ||
Amended Revolving Credit Facility | Floating interest rate | Base Rate or Prime Rate | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Basis spread on variable rate | 1.50% | 1.50% | 1.50% |
RELATED PARTY TRANSACTIONS - Na
RELATED PARTY TRANSACTIONS - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Disclosure of transactions between related parties [line items] | |||||
Deposits, classified as cash and cash equivalents | $ 690,000,000 | $ 690,000,000 | $ 384,000,000 | ||
Parent company | |||||
Disclosure of transactions between related parties [line items] | |||||
Outstanding commitments made by entity, related party transactions | 0 | 0 | 0 | ||
Deposits, classified as cash and cash equivalents | 690,000,000 | 690,000,000 | $ 384,000,000 | ||
Interest income on deposits | 4,000,000 | $ 1,000,000 | 7,000,000 | $ 3,000,000 | |
Base management fee expense | 13,000,000 | 7,000,000 | 26,000,000 | 13,000,000 | |
Dividends recognised as distributions to owners | 41,000,000 | 0 | 184,000,000 | 0 | |
Parent company | Hedges of net investment in foreign operations | Elected for hedge accounting | |||||
Disclosure of transactions between related parties [line items] | |||||
Unrealised gain (loss) on hedging instrument | $ 0 | $ 5,000,000 | $ 0 | $ (9,000,000) |
RELATED PARTY TRANSACTIONS - Ot
RELATED PARTY TRANSACTIONS - Other Related Party Transactions (Details) - Other related parties - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Disclosure of transactions between related parties [line items] | |||||
Accounts receivable | $ 53 | $ 53 | $ 64 | ||
Accounts payable and other | 93 | 93 | $ 106 | ||
Construction services | |||||
Disclosure of transactions between related parties [line items] | |||||
Construction revenues | $ 122 | $ 83 | $ 224 | $ 161 |
DERIVATIVE FINANCIAL INSTRUME76
DERIVATIVE FINANCIAL INSTRUMENTS - Notional Amount of Derivative Positions (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Foreign exchange contracts | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional amount of derivative positions | $ 1,597 | $ 1,243 |
EQUITY (Details)
EQUITY (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Dividends recognised as distributions to owners per share (in dollars per share) | $ 0.0625 | ||||
Decrease through other distributions to owners, equity | $ 1,858,000,000 | [1] | $ 321,000,000 | ||
Stock issued (in shares) | 0 | ||||
Net loss attributable to limited partnership unitholders | $ 40,000,000 | $ (3,000,000) | $ 5,000,000 | $ 29,000,000 | |
Weighted average number of ordinary shares outstanding (in shares) | 66,000,000 | 52,000,000 | 66,000,000 | 52,000,000 | |
Parent company | |||||
Dividends recognised as distributions to owners | $ 41,000,000 | $ 0 | $ 184,000,000 | $ 0 | |
Dividends recognised as distributions to owners per share (in dollars per share) | $ 38.31 | ||||
Incentive distribution rights based on percent increase in unit price | 20.00% | ||||
Non-controlling interest - Redemption-Exchange Units held by Brookfield Asset Management Inc. | |||||
Dividends recognised as distributions to owners | 8,000,000 | 7,000,000 | $ 16,000,000 | 14,000,000 | |
Interest of others in operating subsidiaries | |||||
Decrease through other distributions to owners, equity | $ 917,000,000 | $ 84,000,000 | $ 1,658,000,000 | [1] | $ 307,000,000 |
[1] | See Note 16 for additional information on distributions as it relates to the Special Limited Partners. |
ACCUMULATED OTHER COMPREHENSI78
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |||
Disclosure of analysis of other comprehensive income by item [line items] | ||||||
Beginning balance | $ 6,064 | $ 4,038 | ||||
Other comprehensive income (loss) | 506 | [1] | 0 | |||
Other comprehensive income (loss) | $ (191) | $ (18) | (195) | (4) | ||
Ending balance | 4,955 | 5,314 | 4,955 | 5,314 | ||
Limited Partners | ||||||
Disclosure of analysis of other comprehensive income by item [line items] | ||||||
Beginning balance | 1,585 | 1,206 | ||||
Other comprehensive income (loss) | [1] | 58 | ||||
Other comprehensive income (loss) | (31) | 8 | ||||
Ending balance | 1,477 | 1,234 | 1,477 | 1,234 | ||
Redemption-Exchange Units held by Brookfield Asset Management Inc. | ||||||
Disclosure of analysis of other comprehensive income by item [line items] | ||||||
Beginning balance | 1,438 | 1,280 | ||||
Other comprehensive income (loss) | [1] | 57 | ||||
Other comprehensive income (loss) | (30) | 9 | ||||
Ending balance | 1,333 | 1,311 | 1,333 | 1,311 | ||
Foreign currency translation | Limited Partners | ||||||
Disclosure of analysis of other comprehensive income by item [line items] | ||||||
Beginning balance | (111) | (148) | ||||
Other comprehensive income (loss) | (49) | 19 | ||||
Ending balance | (160) | (129) | (160) | (129) | ||
Foreign currency translation | Redemption-Exchange Units held by Brookfield Asset Management Inc. | ||||||
Disclosure of analysis of other comprehensive income by item [line items] | ||||||
Beginning balance | (165) | (205) | ||||
Other comprehensive income (loss) | (47) | 20 | ||||
Ending balance | (212) | (185) | (212) | (185) | ||
FVOCI/Available for sale | Limited Partners | ||||||
Disclosure of analysis of other comprehensive income by item [line items] | ||||||
Beginning balance | 6 | 4 | ||||
Other comprehensive income (loss) | 7 | 0 | ||||
Ending balance | 13 | 4 | 13 | 4 | ||
FVOCI/Available for sale | Redemption-Exchange Units held by Brookfield Asset Management Inc. | ||||||
Disclosure of analysis of other comprehensive income by item [line items] | ||||||
Beginning balance | 4 | 2 | ||||
Other comprehensive income (loss) | 6 | 0 | ||||
Ending balance | 10 | 2 | 10 | 2 | ||
Other | Limited Partners | ||||||
Disclosure of analysis of other comprehensive income by item [line items] | ||||||
Beginning balance | (7) | 3 | ||||
Other comprehensive income (loss) | 11 | (11) | ||||
Ending balance | 4 | (8) | 4 | (8) | ||
Other | Redemption-Exchange Units held by Brookfield Asset Management Inc. | ||||||
Disclosure of analysis of other comprehensive income by item [line items] | ||||||
Beginning balance | (4) | 6 | ||||
Other comprehensive income (loss) | 11 | (11) | ||||
Ending balance | 7 | (5) | 7 | (5) | ||
Accumulated other comprehensive income (loss) | Limited Partners | ||||||
Disclosure of analysis of other comprehensive income by item [line items] | ||||||
Beginning balance | [2] | (112) | (141) | |||
Other comprehensive income (loss) | (31) | 8 | ||||
Other comprehensive income (loss) | [2] | (31) | 8 | |||
Ending balance | [2] | (143) | (133) | (143) | (133) | |
Accumulated other comprehensive income (loss) | Redemption-Exchange Units held by Brookfield Asset Management Inc. | ||||||
Disclosure of analysis of other comprehensive income by item [line items] | ||||||
Beginning balance | [2] | (165) | (197) | |||
Other comprehensive income (loss) | [2] | (30) | 9 | |||
Ending balance | [2] | $ (195) | $ (188) | $ (195) | $ (188) | |
[1] | Includes gains or losses on changes in ownership interests of consolidated subsidiaries. | |||||
[2] | See Note 17 for additional information. |
DIRECT OPERATING COSTS - Schedu
DIRECT OPERATING COSTS - Schedule of Lists of Direct Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Analysis of income and expense [abstract] | ||||
Cost of sales | $ 7,739 | $ 4,278 | $ 14,915 | $ 5,786 |
Compensation | 449 | 369 | 903 | 729 |
Property taxes, sales taxes and other | 12 | 26 | 31 | 32 |
Total | $ 8,200 | $ 4,673 | $ 15,849 | $ 6,547 |
DIRECT OPERATING COSTS - Additi
DIRECT OPERATING COSTS - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Analysis of income and expense [abstract] | ||||
Inventories recognized as expense during the period | $ 5,160 | $ 2,479 | $ 9,801 | $ 2,657 |
SEGMENT INFORMATION - Income St
SEGMENT INFORMATION - Income Statement Captions by Segment (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)segment | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Disclosure of operating segments [line items] | |||||
Number of operating segments | segment | 5 | ||||
Revenues | $ 8,775,000,000 | $ 4,870,000,000 | $ 16,969,000,000 | $ 6,804,000,000 | |
Direct operating costs | (8,200,000,000) | (4,673,000,000) | (15,849,000,000) | (6,547,000,000) | |
General and administrative expenses | (142,000,000) | (76,000,000) | (260,000,000) | (138,000,000) | |
Equity accounted Company EBITDA | 63,000,000 | 24,000,000 | 122,000,000 | 42,000,000 | |
Company EBITDA attributable to others | (314,000,000) | (91,000,000) | (609,000,000) | (114,000,000) | |
Company EBITDA | 182,000,000 | 54,000,000 | 373,000,000 | 47,000,000 | |
Realized disposition gain/(loss), less portion recorded in prior periods, net | 90,000,000 | 9,000,000 | 106,000,000 | 281,000,000 | |
Interest expense | (83,000,000) | (50,000,000) | (169,000,000) | (69,000,000) | |
Realized disposition gain, current income taxes and interest expenses related to equity accounted investments | (20,000,000) | (1,000,000) | (39,000,000) | (2,000,000) | |
Current income taxes | (52,000,000) | (4,000,000) | (80,000,000) | 0 | |
Company FFO attributable to others (net of Company EBITDA attributable to others) | 60,000,000 | 35,000,000 | 124,000,000 | (119,000,000) | |
Company FFO | 177,000,000 | 43,000,000 | 315,000,000 | 138,000,000 | |
Depreciation and amortization expense | (105,000,000) | (88,000,000) | (211,000,000) | (153,000,000) | |
Realized disposition (gain)/loss recorded in prior periods | 0 | ||||
Impairment expense, net | 0 | (23,000,000) | 0 | (30,000,000) | |
Other income (expenses), net | (7,000,000) | (9,000,000) | (21,000,000) | 5,000,000 | |
Deferred income taxes | 39,000,000 | 4,000,000 | 29,000,000 | 0 | |
Non-cash items attributable to equity accounted investments | (50,000,000) | (9,000,000) | (73,000,000) | (16,000,000) | |
Non-cash items attributable to others | 65,000,000 | 76,000,000 | 154,000,000 | 116,000,000 | |
Net income (loss) attributable to unitholders | 119,000,000 | (6,000,000) | 193,000,000 | 60,000,000 | |
Equity accounted income (loss), net | (7,000,000) | 14,000,000 | 10,000,000 | 24,000,000 | $ 69,000,000 |
Interest of others in operating subsidiaries | 189,000,000 | (20,000,000) | 331,000,000 | 117,000,000 | |
Business services | |||||
Disclosure of operating segments [line items] | |||||
Revenues | 6,726,000,000 | 3,273,000,000 | 13,030,000,000 | 3,889,000,000 | |
Direct operating costs | (6,603,000,000) | (3,207,000,000) | (12,817,000,000) | (3,790,000,000) | |
General and administrative expenses | (61,000,000) | (30,000,000) | (118,000,000) | (53,000,000) | |
Equity accounted Company EBITDA | 7,000,000 | 11,000,000 | 15,000,000 | 15,000,000 | |
Company EBITDA attributable to others | (46,000,000) | (26,000,000) | (71,000,000) | (40,000,000) | |
Company EBITDA | 23,000,000 | 21,000,000 | 39,000,000 | 21,000,000 | |
Realized disposition gain/(loss), less portion recorded in prior periods, net | 55,000,000 | 1,000,000 | 55,000,000 | 6,000,000 | |
Interest expense | (22,000,000) | (9,000,000) | (41,000,000) | (13,000,000) | |
Realized disposition gain, current income taxes and interest expenses related to equity accounted investments | (1,000,000) | 0 | (1,000,000) | 0 | |
Current income taxes | (13,000,000) | (4,000,000) | (17,000,000) | (4,000,000) | |
Company FFO attributable to others (net of Company EBITDA attributable to others) | 19,000,000 | 8,000,000 | 34,000,000 | 11,000,000 | |
Company FFO | 61,000,000 | 17,000,000 | 69,000,000 | 21,000,000 | |
Depreciation and amortization expense | (29,000,000) | (13,000,000) | (57,000,000) | (22,000,000) | |
Construction services | |||||
Disclosure of operating segments [line items] | |||||
Revenues | 1,133,000,000 | 1,125,000,000 | 2,176,000,000 | 2,141,000,000 | |
Direct operating costs | (1,108,000,000) | (1,104,000,000) | (2,128,000,000) | (2,124,000,000) | |
General and administrative expenses | (11,000,000) | (11,000,000) | (21,000,000) | (22,000,000) | |
Equity accounted Company EBITDA | 0 | 0 | 0 | 0 | |
Company EBITDA attributable to others | 0 | 0 | 0 | 1,000,000 | |
Company EBITDA | 14,000,000 | 10,000,000 | 27,000,000 | (4,000,000) | |
Realized disposition gain/(loss), less portion recorded in prior periods, net | 0 | 0 | 0 | 2,000,000 | |
Interest expense | 0 | 0 | 0 | 0 | |
Realized disposition gain, current income taxes and interest expenses related to equity accounted investments | 0 | 0 | 0 | 0 | |
Current income taxes | (9,000,000) | 2,000,000 | (13,000,000) | 12,000,000 | |
Company FFO attributable to others (net of Company EBITDA attributable to others) | 0 | 0 | 0 | (1,000,000) | |
Company FFO | 5,000,000 | 12,000,000 | 14,000,000 | 9,000,000 | |
Depreciation and amortization expense | (5,000,000) | (7,000,000) | (10,000,000) | (12,000,000) | |
Industrial operations | |||||
Disclosure of operating segments [line items] | |||||
Revenues | 855,000,000 | 406,000,000 | 1,602,000,000 | 637,000,000 | |
Direct operating costs | (438,000,000) | (316,000,000) | (791,000,000) | (535,000,000) | |
General and administrative expenses | (49,000,000) | (22,000,000) | (79,000,000) | (37,000,000) | |
Equity accounted Company EBITDA | 4,000,000 | 1,000,000 | 9,000,000 | 1,000,000 | |
Company EBITDA attributable to others | (264,000,000) | (53,000,000) | (514,000,000) | (51,000,000) | |
Company EBITDA | 108,000,000 | 16,000,000 | 227,000,000 | 15,000,000 | |
Realized disposition gain/(loss), less portion recorded in prior periods, net | 35,000,000 | 8,000,000 | 51,000,000 | 237,000,000 | |
Interest expense | (55,000,000) | (34,000,000) | (114,000,000) | (43,000,000) | |
Realized disposition gain, current income taxes and interest expenses related to equity accounted investments | (1,000,000) | 0 | (2,000,000) | 0 | |
Current income taxes | (29,000,000) | (5,000,000) | (49,000,000) | (13,000,000) | |
Company FFO attributable to others (net of Company EBITDA attributable to others) | 36,000,000 | 23,000,000 | 79,000,000 | (109,000,000) | |
Company FFO | 94,000,000 | 8,000,000 | 192,000,000 | 87,000,000 | |
Depreciation and amortization expense | (53,000,000) | (44,000,000) | (106,000,000) | (69,000,000) | |
Energy | |||||
Disclosure of operating segments [line items] | |||||
Revenues | 57,000,000 | 64,000,000 | 154,000,000 | 133,000,000 | |
Direct operating costs | (49,000,000) | (45,000,000) | (109,000,000) | (96,000,000) | |
General and administrative expenses | (5,000,000) | (4,000,000) | (10,000,000) | (8,000,000) | |
Equity accounted Company EBITDA | 52,000,000 | 12,000,000 | 98,000,000 | 26,000,000 | |
Company EBITDA attributable to others | (4,000,000) | (12,000,000) | (24,000,000) | (24,000,000) | |
Company EBITDA | 51,000,000 | 15,000,000 | 109,000,000 | 31,000,000 | |
Realized disposition gain/(loss), less portion recorded in prior periods, net | 0 | 0 | 0 | 36,000,000 | |
Interest expense | (6,000,000) | (7,000,000) | (14,000,000) | (13,000,000) | |
Realized disposition gain, current income taxes and interest expenses related to equity accounted investments | (18,000,000) | (1,000,000) | (36,000,000) | (2,000,000) | |
Current income taxes | (1,000,000) | 0 | (1,000,000) | (1,000,000) | |
Company FFO attributable to others (net of Company EBITDA attributable to others) | 5,000,000 | 4,000,000 | 11,000,000 | (20,000,000) | |
Company FFO | 31,000,000 | 11,000,000 | 69,000,000 | 31,000,000 | |
Depreciation and amortization expense | (18,000,000) | (24,000,000) | (38,000,000) | (50,000,000) | |
Corporate and Other | |||||
Disclosure of operating segments [line items] | |||||
Revenues | 4,000,000 | 2,000,000 | 7,000,000 | 4,000,000 | |
Direct operating costs | (2,000,000) | (1,000,000) | (4,000,000) | (2,000,000) | |
General and administrative expenses | (16,000,000) | (9,000,000) | (32,000,000) | (18,000,000) | |
Equity accounted Company EBITDA | 0 | 0 | 0 | 0 | |
Company EBITDA attributable to others | 0 | 0 | 0 | 0 | |
Company EBITDA | (14,000,000) | (8,000,000) | (29,000,000) | (16,000,000) | |
Realized disposition gain/(loss), less portion recorded in prior periods, net | 0 | 0 | 0 | 0 | |
Interest expense | 0 | 0 | 0 | 0 | |
Realized disposition gain, current income taxes and interest expenses related to equity accounted investments | 0 | 0 | 0 | 0 | |
Current income taxes | 0 | 3,000,000 | 0 | 6,000,000 | |
Company FFO attributable to others (net of Company EBITDA attributable to others) | 0 | 0 | 0 | 0 | |
Company FFO | (14,000,000) | (5,000,000) | (29,000,000) | (10,000,000) | |
Depreciation and amortization expense | $ 0 | $ 0 | $ 0 | $ 0 |
SEGMENT INFORMATION - Assets by
SEGMENT INFORMATION - Assets by Segment (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Disclosure of operating segments [line items] | ||
Total assets | $ 17,041 | $ 15,804 |
Business services | ||
Disclosure of operating segments [line items] | ||
Total assets | 5,361 | 5,246 |
Construction services | ||
Disclosure of operating segments [line items] | ||
Total assets | 2,671 | 2,653 |
Industrial operations | ||
Disclosure of operating segments [line items] | ||
Total assets | 6,388 | 5,839 |
Energy | ||
Disclosure of operating segments [line items] | ||
Total assets | 1,686 | 1,671 |
Corporate and Other | ||
Disclosure of operating segments [line items] | ||
Total assets | $ 935 | $ 395 |
SUPPLEMENTAL CASH FLOW INFORM83
SUPPLEMENTAL CASH FLOW INFORMATION - Interest and Income Taxes Paid (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash Flow Statement [Abstract] | ||
Interest paid | $ 94 | $ 41 |
Income taxes paid | $ 30 | $ 20 |
SUPPLEMENTAL CASH FLOW INFORM84
SUPPLEMENTAL CASH FLOW INFORMATION - Non-cash Working Capital (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash Flow Statement [Abstract] | ||
Accounts receivable | $ (324) | $ 10 |
Inventory | (73) | (32) |
Prepayments and other | (79) | 22 |
Accounts payable and other | (38) | (370) |
Changes in non-cash working capital, net | $ (514) | $ (370) |
SUBSEQUENT EVENTS - Distributio
SUBSEQUENT EVENTS - Distribution (Details) | Aug. 02, 2018$ / shares |
Distribution | |
Disclosure of non-adjusting events after reporting period [line items] | |
Distributions declared (in dollars per share) | $ 0.0625 |
SUBSEQUENT EVENTS - Acquisition
SUBSEQUENT EVENTS - Acquisition of Teekay Offshore Partners (Details) - Major business combination - USD ($) | Jul. 03, 2018 | Jul. 02, 2018 | Jul. 31, 2018 |
Teekay Offshore GP | |||
Disclosure of non-adjusting events after reporting period [line items] | |||
Percentage of additional voting interests acquired | 2.00% | ||
Percentage of voting equity interests acquired | 51.00% | 49.00% | |
Teekay Offshore | |||
Disclosure of non-adjusting events after reporting period [line items] | |||
Bonds issued | $ 226,000,000 | ||
Borrowings, interest rate | 8.50% | ||
Liabilities arising from financing activities | $ 84,000,000 | ||
Proportion of ownership interest in subsidiary | 60.00% | ||
Teekay Offshore | Teekay Offshore | |||
Disclosure of non-adjusting events after reporting period [line items] | |||
Bonds issued | 500,000,000 | ||
Liabilities arising from financing activities | $ 200,000,000 |
SUBSEQUENT EVENTS - Acquisiti87
SUBSEQUENT EVENTS - Acquisition of Westinghouse Electric Company (Details) - USD ($) $ in Millions | Aug. 01, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Disclosure of non-adjusting events after reporting period [line items] | |||
Borrowings | $ 5,079 | $ 3,265 | |
Major business combination | Westinghouse Electric Company | |||
Disclosure of non-adjusting events after reporting period [line items] | |||
Cash | $ 405 | ||
Proportion of ownership interest in subsidiary | 44.00% | ||
Brookfield Business Partners L.P. and Institutional Investors | Major business combination | Westinghouse Electric Company | |||
Disclosure of non-adjusting events after reporting period [line items] | |||
Consideration transferred, acquisition-date fair value | $ 4,000 | ||
Cash | 920 | ||
Borrowings | $ 3,100 |
SUBSEQUENT EVENTS - GrafTech Se
SUBSEQUENT EVENTS - GrafTech Secondary Offering and Concurrent Share Buyback (Details) - Offering and Buyback $ in Millions | Aug. 14, 2018USD ($)shares |
Disclosure of non-adjusting events after reporting period [line items] | |
Proceeds from secondary offering and share repurchase | $ 230 |
Option period | 30 days |
Over-Allotment Option | |
Disclosure of non-adjusting events after reporting period [line items] | |
Number of shares reserved for issue under options and contracts for sale of shares | shares | 3,450,000 |
Graftech | |
Disclosure of non-adjusting events after reporting period [line items] | |
Proceeds from secondary offering and share repurchase | $ 668 |