Cover
Cover | 12 Months Ended |
Dec. 31, 2023 shares | |
Entity Listings [Line Items] | |
Document Type | 40-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2023 |
Entity File Number | 001-41563 |
Entity Registrant Name | BROOKFIELD ASSET MANAGEMENT LTD. |
Entity Incorporation, State or Country Code | A1 |
Entity Primary SIC Number | 6282 |
Entity Address, Address Line One | Suite 100, Brookfield Place, 181 Bay Street |
Entity Address, Address Line Two | P.O. Box 762 |
Entity Address, City or Town | Toronto |
Entity Address, State or Province | ON |
Entity Address, Country | CA |
Entity Address, Postal Zip Code | M5J 2T3 |
City Area Code | 416 |
Local Phone Number | 363-9491 |
Title of 12(b) Security | Class A Limited Voting Shares |
Trading Symbol | BAM |
Security Exchange Name | NYSE |
Annual Information Form | true |
Audited Annual Financial Statements | true |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Document Financial Statement Error Correction [Flag] | false |
Amendment Flag | false |
Entity Central Index Key | 0001937926 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | FY |
Business Contact | |
Entity Listings [Line Items] | |
Entity Address, Address Line One | Brookfield Place250 Vesey Street |
Entity Address, Address Line Two | 15th Floor |
Entity Address, City or Town | New York |
Entity Address, State or Province | NY |
Entity Address, Postal Zip Code | 10281-1023 |
City Area Code | 212 |
Local Phone Number | 417-7000 |
Contact Personnel Name | Brookfield Asset Management LLC |
Class A Shares | |
Entity Listings [Line Items] | |
Entity Common Stock, Shares Outstanding | 413,026,253 |
Class B Shares | |
Entity Listings [Line Items] | |
Entity Common Stock, Shares Outstanding | 21,280 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | Deloitte LLP |
Auditor Location | Toronto, Canada |
Auditor Firm ID | 1208 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and cash equivalents | $ 9 | $ 1 |
Due from affiliates | 886 | 782 |
Other assets | 40 | 0 |
Investment in Brookfield Asset Management ULC | 2,270 | 2,378 |
Total assets | 3,205 | 3,161 |
Liabilities | ||
Accounts payable and accrued liabilities | 859 | 781 |
Due to affiliates | 261 | 3 |
Total liabilities | 1,120 | 784 |
Commitment and contingencies | ||
Equity | ||
Additional paid-in-capital | 403 | 278 |
Retained (deficit) earnings | (35) | 19 |
Accumulated other comprehensive income | 3 | 0 |
Equity | 2,076 | 2,377 |
Non-controlling interest | 9 | 0 |
Total equity | 2,085 | 2,377 |
Total liabilities, non-controlling interest and equity | 3,205 | 3,161 |
Class A Shares | ||
Equity | ||
Common stock | 2,354 | 2,410 |
Class A held in treasury (24,292,787 shares) | (649) | (330) |
Class B Shares | ||
Equity | ||
Common stock | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Dec. 31, 2023 | Dec. 31, 2022 |
Held in treasury (in shares) | 24,292,787 | 24,292,787 |
Class A Shares | ||
Common stock, shares issued (in shares) | 413,026,253 | 413,026,253 |
Common stock, shares outstanding (in shares) | 388,733,466 | 388,733,466 |
Class B Shares | ||
Common stock, shares issued (in shares) | 21,280 | 21,280 |
Common stock, shares outstanding (in shares) | 21,280 | 21,280 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) shares in Millions, $ in Millions | 6 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Dec. 31, 2023 | |
Income Statement [Abstract] | ||
Operating recoveries | $ 37 | $ 383 |
Expenses | ||
Compensation and benefits | (1) | (326) |
Other operating expense | (35) | (5) |
Carried interest allocation compensation | ||
Realized | 0 | (24) |
Unrealized | (3) | (38) |
Total carried interest allocation compensation | (3) | (62) |
Interest expense | 0 | (9) |
Total expenses | (39) | (402) |
Share of income from Brookfield Asset Management ULC | 21 | 470 |
Net income | $ 19 | $ 451 |
Earnings per share | ||
Basic (in dollars per share) | $ 0.05 | $ 1.15 |
Diluted (in dollars per share) | $ 0.05 | $ 1.13 |
Weighted-average shares | ||
Basic (in shares) | 396.2 | 391.7 |
Diluted (in shares) | 400.9 | 396.5 |
Comprehensive income: | ||
Net income | $ 19 | $ 451 |
Other comprehensive income: | ||
Share of other comprehensive income from Brookfield Asset Management ULC | 0 | 3 |
Other comprehensive income | 0 | 3 |
Comprehensive income | $ 19 | $ 454 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($) $ in Millions | Total | Class A common stock | Class B common stock | Common stock | Common stock Class A common stock | Common stock Class B common stock | Treasury stock | Additional paid-in-capital | Retained (deficit) earnings | Accumulated other comprehensive income | Non-controlling interest |
Beginning balance (in shares) at Jul. 03, 2022 | 0 | 0 | |||||||||
Beginning balance at Jul. 03, 2022 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 19 | 19 | |||||||||
Other comprehensive income | 0 | ||||||||||
Share subscriptions (in shares) | 2,404,747,000,000 | ||||||||||
Share subscriptions | 52 | 52 | 0 | ||||||||
Purchase of treasury shares, net | (330) | (330) | |||||||||
Capital contribution (in shares) | 393,749,981 | 21,280 | |||||||||
Contributions | 2,636 | 2,358 | 278 | ||||||||
Ending balance (in shares) at Dec. 31, 2022 | 388,733,466 | 21,280 | 396,154,728 | 21,280 | |||||||
Ending balance at Dec. 31, 2022 | 2,377 | 2,410 | (330) | 278 | 19 | 0 | 0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 451 | 451 | |||||||||
Other comprehensive income | 3 | 3 | |||||||||
Share subscriptions (in shares) | 813,290 | ||||||||||
Share subscriptions | (4) | 0 | (4) | ||||||||
Purchase of treasury shares, net (in shares) | (8,234,552) | ||||||||||
Purchase of treasury shares, net | (319) | (319) | |||||||||
Contributions | 138 | 129 | 9 | ||||||||
Distributions | (561) | (56) | (505) | ||||||||
Ending balance (in shares) at Dec. 31, 2023 | 388,733,466 | 21,280 | 388,733,466 | 21,280 | |||||||
Ending balance at Dec. 31, 2023 | $ 2,085 | $ 2,354 | $ (649) | $ 403 | $ (35) | $ 3 | $ 9 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Dec. 31, 2023 | |
Operating activities | ||
Net income | $ 19 | $ 451 |
Non-cash adjustments: | ||
Share of income from Brookfield Asset Management ULC, net of dividends | (21) | 56 |
Stock based equity awards | 0 | 6 |
Other expense | 1 | 0 |
Net change in working capital | (1) | (5) |
Cash provided by (used in) operating activities | (2) | 508 |
Investing activities | ||
Purchase of other assets | 0 | (41) |
Cash provided by (used in) investing activities | 0 | (41) |
Financing activities | ||
Stock-based compensation prepayment from affiliates | 0 | 104 |
Share subscriptions | 52 | (4) |
Capital provided by non-controlling interest | 0 | 9 |
Change in due to affiliates | 281 | 256 |
Distributions paid to common stockholders | 0 | (505) |
Share repurchases | (330) | (319) |
Cash provided by (used in) financing activities | 3 | (459) |
Cash and cash equivalents | ||
Change in cash and cash equivalents | 1 | 8 |
Balance, beginning of period | 0 | 1 |
Balance, end of period | $ 1 | $ 9 |
CONSOLIDATED STATEMENT OF CAS_2
CONSOLIDATED STATEMENT OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Dec. 31, 2023 | |
Net change in working capital | ||
Accounts payable and accrued liabilities | $ 781 | $ 63 |
Due from affiliates | (782) | (70) |
Due to affiliates | 0 | 2 |
Income taxes paid | 0 | 0 |
Interest paid | 0 | 9 |
Non-Cash Financing Activities | ||
Settlement of due to affiliates | $ 278 | $ 56 |
ORGANIZATION
ORGANIZATION | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | ORGANIZATION Brookfield Asset Management Ltd. (the “ Manager ”), through its investment in Brookfield Asset Management ULC (“ asset management business ” or the “ Company ”) is an alternative asset manager. The Manager is listed on the New York and Toronto stock exchanges under the symbol BAM. The Manager was incorporated on July 4, 2022 and its head office is located at Suite 100, Brookfield Place, 181 Bay Street, Toronto, Ontario M5J 2T3 and its registered office is located at 1055 West Georgia Street, 1500 Royal Centre, P.O. Box 11117, Vancouver, British Columbia V6E 4N7. On December 9, 2022, Brookfield Corporation (the " Corporation ") completed the spin-off of Brookfield Asset Management ULC (the " Arrangement "). The Manager was incorporated for the purpose of holding a 25% interest in Brookfield Asset Management ULC and to facilitate the Arrangement. As part of the Arrangement, the Corporation contributed certain indirect wholly owned asset management subsidiaries to Brookfield Asset Management ULC. The contribution of these entities was considered a common control transaction and was measured at historical cost. Further, the Corporation contributed a 25% interest of Brookfield Asset Management ULC to the Manager, and in exchange, the Manager issued securities of the Manager to the Corporation’s shareholders at that time on a pro-rata basis. The Manager entered into several agreements and arrangements resulting from the Arrangement, among which include: • The Asset Management Services Agreement (the " AMSA ") under which the Manager provides the services of its employees and its Chief Executive Officer to Brookfield Asset Management ULC which pays the Manager for the services of these individuals on a cost recovery basis such that neither party receives financial gain nor suffers financial loss. Most of the Manager's employees/executives spend their time discharging their duties as officers and employees of the Manager and towards responsibilities related to Brookfield Asset Management ULC which include investment, corporate and other services. In addition, at the request of Brookfield Asset Management ULC, the Manager may provide options and long term incentive awards to its employees, which will be reimbursed under this agreement. See discussion of the accounting for this agreement in the Operating Recoveries accounting policy in Note 2; • The Transitional Services Agreement (the " TSA ") pursuant to which (i) Brookfield Asset Management ULC will provide the Corporation and the Manager, on a transitional basis, certain services to support day-to-day corporate activities (including services relating to finance, treasury, accounting, legal and regulatory, marketing, communications, human resources, internal audit, information technology), and (ii) the Corporation will provide, on a transitional basis, certain services to Brookfield Asset Management ULC to facilitate the orderly transfer of the asset management business. See discussion of the accounting for this agreement in the Related Parties accounting policy in Note 2; and • The Relationship Agreement under which certain employee share-based and performance-based compensation costs are recovered from the Corporation. See discussion of the accounting for this agreement in the Operating Recoveries accounting policy in Note 2. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying Consolidated Financial Statements of the Manager have been prepared in conformity with accounting principles generally accepted in the United States of America (“ U.S. GAAP ”) and are presented in U.S. Dollars. The Consolidated Financial Statements have been prepared in accordance with the accounting policies set out below. Use of Estimates The preparation of the Consolidated Financial Statements in accordance with U.S. GAAP requires management to make estimates that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. Management believes that estimates utilized in the preparation of the Consolidated Financial Statements are reasonable. Such estimates include those used in the valuation of investments and the accounting for share-based and performance-based compensation. Actual results may differ from those estimates and such differences may be material. Consolidation The Manager consolidates all entities that it controls through a majority voting interest and all variable interest entities (“ VIE ”) for which it is the primary beneficiary. An enterprise is determined to be the primary beneficiary of a VIE if it holds a controlling financial interest. A controlling financial interest is defined as (a) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and (b) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. The Manager determines whether it is the primary beneficiary of a VIE at the time it becomes involved with a VIE and upon events warranting reconsideration. In determining whether the Manager is the primary beneficiary, the company evaluates its control rights as well as economic interests in the entity held either directly or indirectly by the company. The consolidation analysis can generally be performed qualitatively; however, if it is not readily apparent that the company is not the primary beneficiary, a quantitative analysis may also be performed. Investments and redemptions (either by the Manager, affiliates of the company or third parties) and amendments to governing documents could affect an entity’s status as a VIE or the determination of the primary beneficiary. As at December 31, 2023, the Manager is not the primary beneficiary of any VIE. All intercompany balances and transactions have been eliminated on consolidation. Foreign Currency In the normal course of business, the Manager may enter into transactions not denominated in U.S. Dollars. Foreign exchange gains and losses arising on such transactions are recorded in Net Income. In addition, where the Manager consolidates entities that have a non-U.S. Dollar functional currency those non-U.S. Dollar denominated assets and liabilities are translated to U.S. Dollars at the exchange rate prevailing at the reporting date and income, expenses, gains and losses are translated at the prevailing exchange rate on the dates that they were recorded. Cumulative translation adjustments arising from the translation of non-U.S. Dollar denominated operations are recorded in Other Comprehensive Income. Cash and Cash Equivalents Cash and cash equivalents represent cash on hand and cash held in banks. Interest income from cash and cash equivalents is recorded in the Consolidated Statements of Comprehensive Income. Equity Method Investments Investments in which the Manager is deemed to exert significant influence, but does not have a controlling financial interest are accounted for using the equity method of accounting. The Manager has significant influence over Brookfield Asset Management ULC and therefore accounts for its investment under the equity method. The carrying value of equity method investments is determined based on amounts invested by the Company, adjusted for the share of earnings or losses of the investee allocated based on the relevant agreements, less distributions received. Under the equity method of accounting, the Manager's share of earnings from equity investments is included in the share of income from equity method investments in the Consolidated Statement of Comprehensive Income. The Manager evaluates its equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be recoverable. Refer to Note 3 for further details of the Manager's equity method investments. Accounts Payable and Accrued Liabilities Accounts payable primarily consists of long-term compensation liabilities due to the employees of the Manager. Other Assets Other assets include investments in options to acquire shares of the Company. The Manager has elected the measurement alternative for equity investments without readily determinable fair values to be measured at cost minus impairment, if any. The carrying amount of these investments as of December 31, 2023 is $40 million. For the year ended December 31, 2023, there has been no downward or upward adjustments made to the carrying amount of these investments due to impairment or observable price changes in orderly transactions for identical or similar investment of the same issuer. Operating Recoveries Operating Recoveries arise from the AMSA between the Manager and Brookfield Asset Management ULC and the Relationship Agreement between the Manager, Brookfield Asset Management ULC and the Corporation. Under the AMSA, recoveries are recognized on a cost recovery basis such that neither party receives financial gain nor suffers financial loss. Income generated under the AMSA relating to these services is recognized as Operating Recoveries in the Consolidated Statement of Comprehensive Income on a gross basis as and when the services are performed by the Manager. Under the Relationship Agreement, certain employee share-based and performance-based compensation costs are recovered from the Corporation. Income generated under the Relationship Agreement relating to these awards is recognized as Operating Recoveries in the Consolidated Statement of Comprehensive Income on a gross basis. Certain liabilities classified as share-based awards covered by the AMSA and the Relationship Agreement are required to be revalued at each balance sheet date. As a result, where the revaluation results in an increase in the share-based award liability, the Corporation and Brookfield Asset Management ULC will reimburse the Manager while conversely, where the revaluation results in a decrease in the share-based award liability, the Manager will be responsible for refunding the difference to the Corporation and Brookfield Asset Management ULC. Under the TSA, the Manager is responsible for the costs of transitional services provided by Brookfield Asset Management ULC and the Corporation. Such costs are recognized as Operating Recoveries in the Consolidated Statement of Comprehensive Income when services are performed. To the extent that Brookfield Asset Management ULC makes payments to the Manager under the AMSA for share-based awards before they vest, such prepayments are recognized by the Manager as deferred income included in Accounts payable and accrued liabilities on the Consolidated Balance Sheets. Compensation and Benefits Compensation consists of (a) salary and bonus, and benefits paid and payable to employees and (b) share-based compensation associated with the grants of share-based awards to employees of the Manager. Compensation costs relating to the issuance of share-based awards to senior management and employees of the Manager is accounted for in accordance with ASC 718, Compensation - Stock Compensation , which measures the equity-classified awards at fair value on the grant date and expenses the awards over the vesting period. Cash settled share-based awards and awards settled in a variable number of shares for a fixed monetary amount are classified as liabilities and are remeasured at the end of each reporting period. The Manager recognizes forfeitures as they occur. In the normal course of business, the Manager issues share-based compensation awards to employees of Brookfield Asset Management ULC. Such awards are accounted for as awards issued to employees of equity method investees under ASC 323 Investments – Equity Method and Joint Ventures . As the awards vest, the Manager recognizes the entire cost of the awards as an expense included in share of income from equity method investments, as no proportionate funding by the other investors occurs and the Manager does not receive any increase in its relative ownership percentage of Brookfield Asset Management ULC. However, the cost associated with the Manager’s ownership interest is recognized when the Manager recognizes its share of Brookfield Asset Management ULC’s earnings. Brookfield Asset Management ULC reimburses the Manager for such awards, which the Manager recognizes as income included in share of income from equity method investments in the same period as the associated cost of the awards. As such, this arrangement with Brookfield Asset Management ULC has no net impact on the Manager’s Consolidated Statement of Comprehensive Income. To the extent that Brookfield Asset Management ULC reimburses the Manager for such awards before they vest, the Manager recognizes the reimbursement in additional paid-in capital. Refer to Note 5 for further details of the Manager's share-based compensation. Carried Interest Compensation Expense Carried interest is performance-based compensation associated with realized or unrealized carried interest earned on the performance of investments on a fund-by-fund basis. Employees of the Manager earn carried interest compensation which is subject to both positive and negative adjustments and recoverable from Brookfield Asset Management ULC and the Corporation under the terms of the ASMA and the Relationship Agreement. Related Parties In the normal course of operations, the Manager enters into various transactions on market terms with related parties, including amounts in Due from/to affiliates. The Manager and its subsidiaries may also transact with entities that share a common parent. Amounts owed to and by equity method investments are not eliminated on consolidation. See Note 7 for further detail. Dividends Dividends are reflected in the Consolidated Financial Statements when declared. Segment Information The Manager operates as a single operating segment. The Manager's chief operating decision maker, it's Chief Executive Officer, manages operations on a consolidated basis for the purposes of allocating resources, making operating decisions and evaluating financial performance. Earnings per Share The Manager uses the two class method to calculate basic and diluted net income per share. Earnings for each period are allocated to participating securities based on the contractual participation rights of the security to share in the current earnings as if all current period earnings had been distributed. Undistributed losses are not allocated to participating securities that do not have a contractual obligation to share in losses. Diluted net income per share reflects the impact of dilutive instruments, which are generally determined using the treasury stock method. For potentially dilutive instruments that are also participating securities, the treasury stock method or the two-class method, whichever, produces the more diluted result, is used to determine diluted net income per share. Recent Accounting Pronouncements The Manager considers the applicability and impact of all Accounting Standard Updates (" ASUs ") issued by the Financial Accounting Standards Board (" FASB "). ASUs not listed below were assessed and either determined to be not applicable or expected to have minimal impact on the company's consolidated financial statements. In November 2023, the FASB issued ASU 2023-07, which requires the disclosure of significant segment expenses that are part of an entity’s segment measure of profit or loss and regularly provided to the chief operating decision maker. In addition, it adds or makes clarifications to other segment-related disclosures, such as clarifying that the disclosure requirements in ASC 280 are required for entities with a single reportable segment and that an entity may disclose multiple measures of segment profit and loss. The amendments in this update apply to all public entities that are required to report segment information in accordance with Topic 280, Segment Reporting. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023 and interim periods beginning after December 15, 2024. The Manager is currently assessing the impact of this update. |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENTS | INVESTMENTS The Manager has a variable interest in the Company, an unconsolidated VIE. It has been determined that the Manager is not the primary beneficiary mainly due to its lack of power to unilaterally make decisions about the activities that most significantly impact the VIE’s returns. The Manager accounts for its interest in Brookfield Asset Management ULC using the equity method of accounting as it has significant influence from its 25% equity interest and its ability to appoint two directors on the VIE’s board. The summarized financial information and results of the Manager’s equity method investment in Brookfield Asset Management ULC are outlined in the tables below: AS AT DECEMBER 31, 2023 2022 Cash $ 2,667 $ 3,545 Investments 7,522 6,877 Assets 14,290 14,087 Liabilities 2,825 2,670 Preferred shares redeemable non-controlling interest 2,166 1,811 Equity 9,299 9,606 FOR THE YEAR ENDED DECEMBER 31, 2023 AND FOR THE PERIOD JULY 4, 2022 TO DECEMBER 31, 2022 2023 2022 Revenues $ 4,062 $ 174 Expenses (1,546) (61) Net income 2,137 84 Net income attributable to preferred shares redeemable non-controlling interest 262 6 Net income attributable to non-controlling interest 36 35 Net income attributable to the common stockholders 1,839 43 As of December 31, 2023, the carrying value of the equity method investment was equal to the Manager’s interest in the Company’s underlying net assets. For the year ended December 31, 2023 and period from December 9, 2022 to December 31, 2022, the Manager’s share of net income from the Company was $470 million and $21 million, respectively. The Manager received cash distributions from the Company of $526 million for the year ended December 31, 2023. The assets and liabilities recognized in the Manager’s Consolidated Balance Sheet as of December 31, 2023 and 2022, related to its maximum exposure to the loss of the Company as an unconsolidated VIE, are as follows: AS AT DECEMBER 31, 2023 2022 Investments $ 2,270 $ 2,378 Due from affiliates 394 4 VIE related assets 2,664 2,382 Accounts payable 859 781 Due to affiliates 256 3 Maximum exposure to loss $ 3,779 $ 3,166 The Manager has not provided financial or other support to the Company during the years presented above. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The income before provision for taxes consists of income earned in Canada. The Manager does not currently carry a provision for taxes as there is no tax obligation on current period net income. The Manager's equity-accounted investment in the Company is expected to be realized through non-taxable dividends. Accordingly, no tax provision has been recorded. The Manager's effective income tax rate is different from the Manager's statutory income tax rate due to the following differences set out below: FOR THE YEAR ENDED DECEMBER 31, 2023 AND FOR THE PERIOD JULY 4, 2022 TO DECEMBER 31, 2022 2023 2022 Statutory income tax rate 27 % 27 % (Reduction) increase in rate resulting from: Non-taxable amounts (28) % (27) % Valuation allowance 1 % — % Effective income tax rate — % — % A summary of the tax effects of the temporary differences is as follows: AS AT DECEMBER 31, 2023 2022 Losses (Canada) $ 2 $ — Valuation allowance (2) — Deferred income tax assets $ — $ — As of December 31, 2023 and December 31, 2022, the Manager did not have any material unrecognized tax benefits related to uncertain tax positions. The Manager files its tax returns as prescribed by the tax laws of the jurisdictions in which it operates. In the normal course of business, the company is subject to examination by Canadian and foreign tax authorities. As of December 31, 2023, no tax returns are subject to examination. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION The Manager and the Corporation have granted share-based compensation awards to certain employees and directors of the Manager, under a number of compensation plans (the “ Equity Plans ”). The Equity Plans provide for the granting of share options, restricted shares, escrowed shares and deferred share and restricted share units which contain certain service or performance requirements of the Manager or the Corporation. For the year ended December 31, 2023, the Manager granted 7.9 million stock options at a weighted average exercise price of $35.13. The compensation expense was calculated using the Black-Scholes method of valuation, assuming an average 7.5 year term, 28.5% volatility, a weighted average expected dividend yield of 4.6% annually, a risk-free rate of 3.9% and a liquidity discount of 25%, with a fair value of $5.26 per unit. The total fair value of the options granted was $41.3 million. For the year ended December 31, 2023 the Manager granted 4.8 million escrowed shares at a weighted average exercise price of $35.13. The compensation expense was calculated using the Black-Scholes method of valuation, assuming an average 7.5 year term, 28.5% volatility, a weighted average expected dividend yield of 4.6% annually, a risk-free rate of 3.9% and a liquidity discount of 25%, with a fair value of $5.26 per unit. The total fair value of the escrowed shares granted was $25.2 million. The expenses of the share-based compensation are recognized on the financial statements of the Manager and are summarized in the following table: FOR THE YEAR ENDED DECEMBER 31, 2023 AND FOR THE PERIOD JULY 4, 2022 TO DECEMBER 31, 2022 2023 2022 Expense arising from equity classified share-based payment transactions $ 37 $ 5 Expense (recovery) arising from liability classified share-based payment transactions 156 (45) $ 193 $ (40) Management Share Option Plan The Manager recognizes any awards associated with the existing Equity Plans for its employees irrespective of whether the awards were granted by the Corporation or the Manager. Options issued under the Management Share Option Plan (“ MSOP ”) of both the Corporation and the Manager vest over a period of up to five years, expire ten years after the grant date and are settled through issuance of Class A shares of the Corporation or the Manager. The exercise price is equal to the market price at the grant date. For the year ended December 31, 2023 and period ended December 31, 2022, the total expense incurred by the Manager with respect to MSOP totaled $10 million and $1 million, respectively. The change in the number of options during the year ended December 31, 2023 was as follows: Brookfield Asset Management Ltd. 1 Brookfield Corporation 2 Number of Options (000's) Weighted-Average Exercise Price Number of Options (000's) Weighted-Average Exercise Price Outstanding as at January 1, 2023 3,639 $ 22.45 14,553 $ 25.38 Transferred 778 18.54 3,111 20.95 Granted 2,104 35.13 — — Exercised (710) 14.31 (2,535) 16.12 Cancelled (53) 35.02 (41) 38.89 Outstanding as at December 31, 2023 5,758 $ 26.57 15,088 $ 24.48 1 - Represents the continuity of the Manager options relating to only those employees of the Manager based on the Manager's weighted average exercise price which differs from that of the Corporation. The 5.8 million remaining shares, not included in the table above, are Manager options related to employees of the Asset Management Company. 2 - Represents the continuity of the Corporation's options relating to only those employees of the Manager based on the Corporation's weighted average exercise price which differs from that of the Manager. The weighted-average grant date fair value of the Manager MSOP granted for the year ended December 31, 2023 and the period ended December 31, 2022 wa s $5.26 and $3.50, respectively, and was determined using the Black-Scholes valuation model, with inputs to the model as follows: FOR THE YEAR ENDED DECEMBER 31, 2023 AND FOR THE PERIOD JULY 4, 2022 TO DECEMBER 31, 2022 Unit 2023 2022 Weighted-average share price US$ $ 35.13 $ 22.39 Average term to exercise Years 7.5 7.4 Share price volatility 1 % 28.5 22.2 Liquidity discount % 25.0 25.0 Weighted-average annual dividend yield % 4.6 1.8 Risk-free rate % 3.9 2.1 1 - Share price volatility was determined based on historical share prices of a similar or comparable entity for the prior period to the average term to exercise. The weighted-average grant date fair value of the Corporation MSOP granted for the year ended December 31, 2022 was $8.82, and was determined using the Black-Scholes valuation model, with inputs to the model as follows: FOR THE PERIOD JULY 4, 2022 TO DECEMBER 31, 2022 Unit 2022 Weighted-average share price US$ $ 46.62 Average term to exercise Years 7.5 Share price volatility 1 % 24.8 Liquidity discount % 25.0 Weighted-average annual dividend yield % 1.4 Risk-free rate % 1.9 1 - Share price volatility was determined based on implied volatilities consistent with Brookfield Corporation's historical share price of a similar or comparable entity for the prior period to the average term to exercise. Escrowed Stock Plan The Escrowed Stock (" ES ") shares generally vest over five years and must be held to the fifth anniversary of the grant date. At a date no more than ten years from the grant date, all outstanding ES shares will be exchanged for Class A shares issued by the Corporation or the Manager based on the market value of the respective Class A shares at the time of the exchange. The number of Class A shares issued on exchange will be less than the Class A shares purchased under the ES Plan resulting in a net reduction in the number of Class A shares issued by the Manager. For the year ended December 31, 2023 and period ended December 31, 2022, the total expense incurred with respect to the ES Plan totaled $20 million and $3 million, respectively. Brookfield Asset Management Ltd. 1 Brookfield Corporation 2 Number of Options (000's) Weighted-Average Exercise Price Number of Options (000's) Weighted-Average Exercise Price Outstanding as at January 1, 2023 5,452 $ 29.64 16,324 $ 34.84 Transferred 335 29.64 1,334 34.85 Granted 3,251 35.13 — — Outstanding as at December 31, 2023 9,038 $ 31.62 17,658 $ 34.84 1 - Represents the continuity of the Manager ES relating to only those employees of the Manager based on the Manager's weighted average exercise price which differs from that of the Corporation. The weighted-average grant date fair value of the Manager escrowed shares granted for the year ended December 31, 2023 and the period ended December 31, 2022 was $5.26 and $3.83, respectively, and was determined using the Black-Scholes model of valuation with inputs to the model as follows: FOR THE YEAR ENDED DECEMBER 31, 2023 AND FOR THE PERIOD JULY 4, 2022 TO DECEMBER 31, 2022 (MILLIONS) Unit 2023 2022 Weighted-average share price US$ $ 35.13 $ 29.64 Average term to exercise Years 7.5 6.9 Share price volatility 1 % 28.5 28.9 Liquidity discount % 25.0 25.0 Weighted-average annual dividend yield % 4.6 5.3 Risk-free rate % 3.9 3.7 1 - Share price volatility was determined based on implied volatilities consistent with Brookfield Corporation's historical share price of a similar or comparable entity for the prior period to the average term to exercise. The weighted-average grant date fair value of the Corporation escrowed shares granted for the period ended December 31, 2022 was $7.50, and was determined using the Black-Scholes valuation model, with inputs to the model as follows: FOR THE PERIOD JULY 4, 2022 TO DECEMBER 31, 2022 Unit 2022 Weighted-average share price US$ $ 34.84 Average term to exercise Years 7.10 Share price volatility 1 % 27.00 Liquidity discount % 25.00 Weighted-average annual dividend yield % 1.00 Risk-free rate % 4.00 1 - Share price volatility was determined based on historical share prices of a similar or comparable entity for the prior period to the average term to exercise. Restricted Stock Plan The Restricted Stock Plan awards executives with Class A shares of the Corporation and the Manager purchased on the open market (“ Restricted Shares ”). Under the Restricted Stock Plan, Restricted Shares awarded vest over a period of up to five years, except for Restricted Shares awarded in lieu of a cash bonus, which may vest immediately. Vested and unvested Restricted Shares are subject to a hold period of up to five years. Holders of Restricted Shares are entitled to vote Restricted Shares and to receive associated dividends. Employee compensation expense for the Restricted Stock Plan is charged against income over the vesting period. Compensation expense recognized for the year ended December 31, 2023 and period ended December 31, 2022 was $7 million and $1 million, respectively. Deferred Share Unit Plan and Restricted Share Unit Plan The Deferred Share Unit (" DSU ") Plan and Restricted Share Unit (" RSU ") Plan provides for the issuance of DSUs and RSUs, respectively. Under these plans, qualifying employees and directors receive varying percentages of their annual incentive bonus or directors’ fees in the form of DSUs and RSUs. The DSUs and RSUs vest over periods of up to five years, and DSUs accumulate additional DSUs at the same rate as dividends on Class A shares of the Corporation and the Manager based on the market value of the Class A shares of the Manager at the time of the dividend. Participants may convert vested DSUs and RSUs into cash upon retirement or cessation of employment. The value of these DSUs, when converted to cash, will be equivalent to the market value of the Class A shares of the Corporation and the Manager at the time the conversion takes place. The value of the RSUs, when converted into cash, will be equivalent to the difference between the market price of equivalent number of Class A shares of the Corporation or the Manager at the time the conversion takes place and the market price on the date the RSUs are granted. The fair value of the vested DSUs and RSUs as at December 31, 2023 was $531 million (2022 – $369 million). Employee compensation expense for these plans is charged against income over the vesting period of the DSUs and RSUs. As these awards are liability classified, the amount payable in respect of vested DSUs and RSUs changes as a result of dividends and share price movements. All of the amounts attributable to changes in the amounts payable by the company are recorded as employee compensation expense in the period of the change. For awards issued as part of the Arrangement, the mark-to-market movement in the awards is recoverable from the Asset Management Company. For the year ended December 31, 2023 and period ended December 31, 2022, employee compensation expense (recovery) totaled $156 million and $(45) million, respectively due to a change in the underlying share price. The change in the number of the Corporation DSUs and RSUs outstanding to employees of the Manager for the year ended December 31, 2023 was as follows: DSUs RSUs Number of Units Tracking to BAM Ltd. share price (000's) Number of Units Tracking to BN share price (000's) Number of Units Tracking to BN share price (000's) Weighted-Average Exercise Price (CAD) Outstanding as at January 1, 2023 1,207 6,067 5,488 $ 6.11 Transferred 190 747 — — Granted and reinvested 115 56 — — Exercised and cancelled (9) (36) — — Outstanding as at December 31, 2023 1,503 6,834 5,488 $ 6.11 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. The Manager applies the two-class method in calculating earnings per share for each of its two classes of shares and participating securities, based on their pro-rata share of earnings. Class A shares held under the ES Plans in one or more private wholly owned subsidiaries of the Manager are classified as treasury shares and have been excluded from the calculation of earnings per share. The Manager has certain dilutive securities relating to outstanding restricted stock and options held by employees and non-employees and have been reflected accordingly in diluted earnings per share figures. Basic and diluted net income per share of common stock for the year ended December 31, 2023 and period ended December 31, 2022 was calculated as follows: FOR THE YEAR ENDED DECEMBER 31, 2023 AND FOR THE PERIOD JULY 4, 2022 TO DECEMBER 31, 2022 Year Ended Period Ended 2023 2023 2022 2022 Class A Shares Class B Shares Class A Shares Class B Shares Numerator Net income $ 449 $ — $ 19 $ — Denominator Weighted average of common stock outstanding - basic 391.7 — 396.2 — Dilutive effect of conversion of options and escrowed shares using treasury stock method 4.8 — 4.7 — Weighted average of common stock outstanding - diluted 396.5 — 400.9 — Net Income per Share Earnings per share - basic 1.15 1.15 0.05 0.05 Earnings per share - diluted $ 1.13 $ 1.15 $ 0.05 $ 0.05 The following weighted average potentially dilutive securities were evaluated under the treasury stock method for potentially dilutive effects and have been excluded in the above computation of diluted net income per share attributable to common shareholders for the period presented due to their anti-dilutive effect: FOR THE YEAR ENDED DECEMBER 31, 2023 AND FOR THE PERIOD JULY 4, 2022 TO DECEMBER 31, 2022 2023 2022 Management stock options of the Manager 8.2 3.4 Escrow shares of the Manager 5.0 0.8 Restricted shares of the Manager — 0.6 Total 13.2 4.8 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS In the normal course of business, the Manager enters into transactions with related parties by recovering or bearing the cost of certain employee compensation with the Corporation and Brookfield Asset Management ULC and by borrowing on its $500 million credit facility with Brookfield Asset Management ULC to fund short-term capital requirements. Under the AMSA, the Manager provides the services of its employees and its Chief Executive Officer to Brookfield Asset Management ULC on a cost recovery basis. For the year ended December 31, 2023 and period ended December 31, 2022, under this arrangement the Manager has recognized $177 million and $nil, respectively in Operating Recoveries. In addition, the Manager recovered $4 million in unrealized carried interest compensation expense from the asset management business for the year ended. As outlined in the Relationship Agreement, the Corporation is responsible for the share based awards issued by the Corporation, some of which are subject to revaluation at each balance sheet date and will also bear the cost of the employee entitlement to carried interest on mature funds either directly or indirectly through reimbursement to the Company. For the year ended December 31, 2023 and period ended December 31, 2022, the Manager has recognized $206 million in Operating Recoveries and $35 million in Operating Expenses under this arrangement, respectively. Under the TSA, Brookfield Asset Management ULC will provide the Corporation and the Manager certain services to support day-to-day corporate activities on a transitional basis. For services provided to the Manager, costs are recorded on a gross basis in the Consolidated Statement of Comprehensive Income. For the year ended December 31, 2023 and period ended December 31, 2022, the Manager has recognized less than $1 million in the Consolidated Statement of Comprehensive Income under this arrangement. For the year ended December 31, 2023, the Manager received from Brookfield Asset Management ULC prepayments under the AMSA for share-based compensation of $16 million, which represent deferred income and have been included in Accounts payable and accrued liabilities. For the year ended December 31, 2023 and the period ended December 31, 2022 the Manager received from Brookfield Asset Management ULC advanced reimbursements for Manager share-based awards issued to employees of Brookfield Asset Management ULC of $88 million and $nil, respectively, which has been recorded in additional paid-in capital. The balances due from affiliates related to compensation costs are presented in Due from affiliates on the Consolidated Balance Sheets and the balances due to affiliates are presented in Due to Affiliates. Due from affiliates and Due to affiliates consisted of the following: AS AT DECEMBER 31, 2023 2022 Due from Affiliates Receivables related to share and cash-based compensation $ 824 $ 782 Other transactions with related parties 62 — $ 886 $ 782 Due to Affiliates Borrowings on short-term credit facility $ 256 $ — Other transactions with related parties 5 3 $ 261 $ 3 For the year ended December 31, 2023 the Manager recorded its share of a non-cash distributions declared by ULC to the Corporation in the amount of $56 million within the Consolidated Statement of Changes in Equity. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Guarantees The Manager may from time to time enter into guarantees in respect of certain co-investments in which there is carried interest. The amount guaranteed is up to the carry amount paid to the general partners of the respective funds, net of taxes. In the event that the general partners default on their carry clawback obligations, the Manager will make payments under the guarantees. As at December 31, 2023, the Manager has not recognized any liabilities with respect to such guarantees as no carry has been paid in the relevant funds. Litigation The Manager may from time to time be involved in litigation and claims incidental to the conduct of its business. The Manager’s business is also subject to extensive regulation, which may result in regulatory proceedings against the company. As of December 31, 2023 there is no outstanding litigation. The Manager accrues a liability for legal proceedings only when those matters present loss contingencies that are both probable and reasonably estimable. In such cases, there may be an exposure to loss in excess of any amounts accrued. Although there can be no assurance of the outcome of such legal actions, based on information known by management, the Manager does not have a potential liability related to any current legal proceeding or claim that would individually or in the aggregate materially affect its results of operations, financial position or cash flows. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTSOn February 6, 2024, the Board of the Manager declared a quarterly dividend of $0.38 per share, payable on March 28, 2024 to shareholders of record as at the close of business on February 29, 2024. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying Consolidated Financial Statements of the Manager have been prepared in conformity with accounting principles generally accepted in the United States of America (“ U.S. GAAP |
Use of Estimates | Use of Estimates The preparation of the Consolidated Financial Statements in accordance with U.S. GAAP requires management to make estimates that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. Management believes that estimates utilized in the preparation of the Consolidated Financial Statements are reasonable. Such estimates include those used in the valuation of investments and the accounting for share-based and performance-based compensation. Actual results may differ from those estimates and such differences may be material. |
Consolidation | Consolidation The Manager consolidates all entities that it controls through a majority voting interest and all variable interest entities (“ VIE ”) for which it is the primary beneficiary. An enterprise is determined to be the primary beneficiary of a VIE if it holds a controlling financial interest. A controlling financial interest is defined as (a) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and (b) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. The Manager determines whether it is the primary beneficiary of a VIE at the time it becomes involved with a VIE and upon events warranting reconsideration. In determining whether the Manager is the primary beneficiary, the company evaluates its control rights as well as economic interests in the entity held either directly or indirectly by the company. The consolidation analysis can generally be performed qualitatively; however, if it is not readily apparent that the company is not the primary beneficiary, a quantitative analysis may also be performed. Investments and redemptions (either by the Manager, affiliates of the company or third parties) and amendments to governing documents could affect an entity’s status as a VIE or the determination of the primary beneficiary. As at December 31, 2023, the Manager is not the primary beneficiary of any VIE. All intercompany balances and transactions have been eliminated on consolidation. |
Foreign Currency | Foreign Currency In the normal course of business, the Manager may enter into transactions not denominated in U.S. Dollars. Foreign exchange gains and losses arising on such transactions are recorded in Net Income. In addition, where the Manager consolidates entities that have a non-U.S. Dollar functional currency those non-U.S. Dollar denominated assets and liabilities are translated to U.S. Dollars at the exchange rate prevailing at the reporting date and income, expenses, gains and losses are translated at the prevailing exchange rate on the dates that they were recorded. Cumulative translation adjustments arising from the translation of non-U.S. Dollar denominated operations are recorded in Other Comprehensive Income. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents represent cash on hand and cash held in banks. Interest income from cash and cash equivalents is recorded in the Consolidated Statements of Comprehensive Income. |
Equity Method Investments | Equity Method Investments Investments in which the Manager is deemed to exert significant influence, but does not have a controlling financial interest are accounted for using the equity method of accounting. The Manager has significant influence over Brookfield Asset Management ULC and therefore accounts for its investment under the equity method. The carrying value of equity method investments is determined based on amounts invested by the Company, adjusted for the share of earnings or losses of the investee allocated based on the relevant agreements, less distributions received. Under the equity method of accounting, the Manager's share of earnings from equity investments is included in the share of income from equity method investments in the Consolidated Statement of Comprehensive Income. The Manager evaluates its equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be recoverable. Refer to Note 3 for further details of the Manager's equity method investments. |
Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities Accounts payable primarily consists of long-term compensation liabilities due to the employees of the Manager. |
Other Assets | Other Assets |
Operating Recoveries | Operating Recoveries Operating Recoveries arise from the AMSA between the Manager and Brookfield Asset Management ULC and the Relationship Agreement between the Manager, Brookfield Asset Management ULC and the Corporation. Under the AMSA, recoveries are recognized on a cost recovery basis such that neither party receives financial gain nor suffers financial loss. Income generated under the AMSA relating to these services is recognized as Operating Recoveries in the Consolidated Statement of Comprehensive Income on a gross basis as and when the services are performed by the Manager. Under the Relationship Agreement, certain employee share-based and performance-based compensation costs are recovered from the Corporation. Income generated under the Relationship Agreement relating to these awards is recognized as Operating Recoveries in the Consolidated Statement of Comprehensive Income on a gross basis. Certain liabilities classified as share-based awards covered by the AMSA and the Relationship Agreement are required to be revalued at each balance sheet date. As a result, where the revaluation results in an increase in the share-based award liability, the Corporation and Brookfield Asset Management ULC will reimburse the Manager while conversely, where the revaluation results in a decrease in the share-based award liability, the Manager will be responsible for refunding the difference to the Corporation and Brookfield Asset Management ULC. Under the TSA, the Manager is responsible for the costs of transitional services provided by Brookfield Asset Management ULC and the Corporation. Such costs are recognized as Operating Recoveries in the Consolidated Statement of Comprehensive Income when services are performed. |
Compensation and Benefits | Compensation and Benefits Compensation consists of (a) salary and bonus, and benefits paid and payable to employees and (b) share-based compensation associated with the grants of share-based awards to employees of the Manager. Compensation costs relating to the issuance of share-based awards to senior management and employees of the Manager is accounted for in accordance with ASC 718, Compensation - Stock Compensation , which measures the equity-classified awards at fair value on the grant date and expenses the awards over the vesting period. Cash settled share-based awards and awards settled in a variable number of shares for a fixed monetary amount are classified as liabilities and are remeasured at the end of each reporting period. The Manager recognizes forfeitures as they occur. In the normal course of business, the Manager issues share-based compensation awards to employees of Brookfield Asset Management ULC. Such awards are accounted for as awards issued to employees of equity method investees under ASC 323 Investments – Equity Method and Joint Ventures |
Carried Interest Compensation Expense | Carried Interest Compensation Expense Carried interest is performance-based compensation associated with realized or unrealized carried interest earned on the performance of investments on a fund-by-fund basis. Employees of the Manager earn carried interest compensation which is subject to both positive and negative adjustments and recoverable from Brookfield Asset Management ULC and the Corporation under the terms of the ASMA and the Relationship Agreement. |
Related Parties | Related Parties In the normal course of operations, the Manager enters into various transactions on market terms with related parties, including amounts in Due from/to affiliates. The Manager and its subsidiaries may also transact with entities that share a common parent. Amounts owed to and by equity method investments are not eliminated on consolidation. See Note 7 for further detail. |
Dividends | Dividends Dividends are reflected in the Consolidated Financial Statements when declared. |
Segment Information | Segment Information The Manager operates as a single operating segment. The Manager's chief operating decision maker, it's Chief Executive Officer, manages operations on a consolidated basis for the purposes of allocating resources, making operating decisions and evaluating financial performance. |
Earnings per Share | Earnings per Share The Manager uses the two class method to calculate basic and diluted net income per share. Earnings for each period are allocated to participating securities based on the contractual participation rights of the security to share in the current earnings as if all current period earnings had been distributed. Undistributed losses are not allocated to participating securities that do not have a contractual obligation to share in losses. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Manager considers the applicability and impact of all Accounting Standard Updates (" ASUs ") issued by the Financial Accounting Standards Board (" FASB "). ASUs not listed below were assessed and either determined to be not applicable or expected to have minimal impact on the company's consolidated financial statements. In November 2023, the FASB issued ASU 2023-07, which requires the disclosure of significant segment expenses that are part of an entity’s segment measure of profit or loss and regularly provided to the chief operating decision maker. In addition, it adds or makes clarifications to other segment-related disclosures, such as clarifying that the disclosure requirements in ASC 280 are required for entities with a single reportable segment and that an entity may disclose multiple measures of segment profit and loss. The amendments in this update apply to all public entities that are required to report segment information in accordance with Topic 280, Segment Reporting. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023 and interim periods beginning after December 15, 2024. The Manager is currently assessing the impact of this update. |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investments | The summarized financial information and results of the Manager’s equity method investment in Brookfield Asset Management ULC are outlined in the tables below: AS AT DECEMBER 31, 2023 2022 Cash $ 2,667 $ 3,545 Investments 7,522 6,877 Assets 14,290 14,087 Liabilities 2,825 2,670 Preferred shares redeemable non-controlling interest 2,166 1,811 Equity 9,299 9,606 FOR THE YEAR ENDED DECEMBER 31, 2023 AND FOR THE PERIOD JULY 4, 2022 TO DECEMBER 31, 2022 2023 2022 Revenues $ 4,062 $ 174 Expenses (1,546) (61) Net income 2,137 84 Net income attributable to preferred shares redeemable non-controlling interest 262 6 Net income attributable to non-controlling interest 36 35 Net income attributable to the common stockholders 1,839 43 |
Schedule of Variable Interest Entities | The assets and liabilities recognized in the Manager’s Consolidated Balance Sheet as of December 31, 2023 and 2022, related to its maximum exposure to the loss of the Company as an unconsolidated VIE, are as follows: AS AT DECEMBER 31, 2023 2022 Investments $ 2,270 $ 2,378 Due from affiliates 394 4 VIE related assets 2,664 2,382 Accounts payable 859 781 Due to affiliates 256 3 Maximum exposure to loss $ 3,779 $ 3,166 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | The Manager's effective income tax rate is different from the Manager's statutory income tax rate due to the following differences set out below: FOR THE YEAR ENDED DECEMBER 31, 2023 AND FOR THE PERIOD JULY 4, 2022 TO DECEMBER 31, 2022 2023 2022 Statutory income tax rate 27 % 27 % (Reduction) increase in rate resulting from: Non-taxable amounts (28) % (27) % Valuation allowance 1 % — % Effective income tax rate — % — % |
Schedule of Deferred Tax Assets and Liabilities | A summary of the tax effects of the temporary differences is as follows: AS AT DECEMBER 31, 2023 2022 Losses (Canada) $ 2 $ — Valuation allowance (2) — Deferred income tax assets $ — $ — |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Share-Based Compensation Expense | The expenses of the share-based compensation are recognized on the financial statements of the Manager and are summarized in the following table: FOR THE YEAR ENDED DECEMBER 31, 2023 AND FOR THE PERIOD JULY 4, 2022 TO DECEMBER 31, 2022 2023 2022 Expense arising from equity classified share-based payment transactions $ 37 $ 5 Expense (recovery) arising from liability classified share-based payment transactions 156 (45) $ 193 $ (40) |
Summary of Change in Options | The change in the number of options during the year ended December 31, 2023 was as follows: Brookfield Asset Management Ltd. 1 Brookfield Corporation 2 Number of Options (000's) Weighted-Average Exercise Price Number of Options (000's) Weighted-Average Exercise Price Outstanding as at January 1, 2023 3,639 $ 22.45 14,553 $ 25.38 Transferred 778 18.54 3,111 20.95 Granted 2,104 35.13 — — Exercised (710) 14.31 (2,535) 16.12 Cancelled (53) 35.02 (41) 38.89 Outstanding as at December 31, 2023 5,758 $ 26.57 15,088 $ 24.48 1 - Represents the continuity of the Manager options relating to only those employees of the Manager based on the Manager's weighted average exercise price which differs from that of the Corporation. The 5.8 million remaining shares, not included in the table above, are Manager options related to employees of the Asset Management Company. 2 - Represents the continuity of the Corporation's options relating to only those employees of the Manager based on the Corporation's weighted average exercise price which differs from that of the Manager. Brookfield Asset Management Ltd. 1 Brookfield Corporation 2 Number of Options (000's) Weighted-Average Exercise Price Number of Options (000's) Weighted-Average Exercise Price Outstanding as at January 1, 2023 5,452 $ 29.64 16,324 $ 34.84 Transferred 335 29.64 1,334 34.85 Granted 3,251 35.13 — — Outstanding as at December 31, 2023 9,038 $ 31.62 17,658 $ 34.84 1 - Represents the continuity of the Manager ES relating to only those employees of the Manager based on the Manager's weighted average exercise price which differs from that of the Corporation. |
Summary of Option Valuation Assumptions | The weighted-average grant date fair value of the Manager MSOP granted for the year ended December 31, 2023 and the period ended December 31, 2022 wa s $5.26 and $3.50, respectively, and was determined using the Black-Scholes valuation model, with inputs to the model as follows: FOR THE YEAR ENDED DECEMBER 31, 2023 AND FOR THE PERIOD JULY 4, 2022 TO DECEMBER 31, 2022 Unit 2023 2022 Weighted-average share price US$ $ 35.13 $ 22.39 Average term to exercise Years 7.5 7.4 Share price volatility 1 % 28.5 22.2 Liquidity discount % 25.0 25.0 Weighted-average annual dividend yield % 4.6 1.8 Risk-free rate % 3.9 2.1 1 - Share price volatility was determined based on historical share prices of a similar or comparable entity for the prior period to the average term to exercise. The weighted-average grant date fair value of the Corporation MSOP granted for the year ended December 31, 2022 was $8.82, and was determined using the Black-Scholes valuation model, with inputs to the model as follows: FOR THE PERIOD JULY 4, 2022 TO DECEMBER 31, 2022 Unit 2022 Weighted-average share price US$ $ 46.62 Average term to exercise Years 7.5 Share price volatility 1 % 24.8 Liquidity discount % 25.0 Weighted-average annual dividend yield % 1.4 Risk-free rate % 1.9 1 - Share price volatility was determined based on implied volatilities consistent with Brookfield Corporation's historical share price of a similar or comparable entity for the prior period to the average term to exercise. The weighted-average grant date fair value of the Manager escrowed shares granted for the year ended December 31, 2023 and the period ended December 31, 2022 was $5.26 and $3.83, respectively, and was determined using the Black-Scholes model of valuation with inputs to the model as follows: FOR THE YEAR ENDED DECEMBER 31, 2023 AND FOR THE PERIOD JULY 4, 2022 TO DECEMBER 31, 2022 (MILLIONS) Unit 2023 2022 Weighted-average share price US$ $ 35.13 $ 29.64 Average term to exercise Years 7.5 6.9 Share price volatility 1 % 28.5 28.9 Liquidity discount % 25.0 25.0 Weighted-average annual dividend yield % 4.6 5.3 Risk-free rate % 3.9 3.7 1 - Share price volatility was determined based on implied volatilities consistent with Brookfield Corporation's historical share price of a similar or comparable entity for the prior period to the average term to exercise. The weighted-average grant date fair value of the Corporation escrowed shares granted for the period ended December 31, 2022 was $7.50, and was determined using the Black-Scholes valuation model, with inputs to the model as follows: FOR THE PERIOD JULY 4, 2022 TO DECEMBER 31, 2022 Unit 2022 Weighted-average share price US$ $ 34.84 Average term to exercise Years 7.10 Share price volatility 1 % 27.00 Liquidity discount % 25.00 Weighted-average annual dividend yield % 1.00 Risk-free rate % 4.00 1 - Share price volatility was determined based on historical share prices of a similar or comparable entity for the prior period to the average term to exercise. |
Summary of Change in Deferred Share Units and Restricted Share Units | The change in the number of the Corporation DSUs and RSUs outstanding to employees of the Manager for the year ended December 31, 2023 was as follows: DSUs RSUs Number of Units Tracking to BAM Ltd. share price (000's) Number of Units Tracking to BN share price (000's) Number of Units Tracking to BN share price (000's) Weighted-Average Exercise Price (CAD) Outstanding as at January 1, 2023 1,207 6,067 5,488 $ 6.11 Transferred 190 747 — — Granted and reinvested 115 56 — — Exercised and cancelled (9) (36) — — Outstanding as at December 31, 2023 1,503 6,834 5,488 $ 6.11 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Income per Share | Basic and diluted net income per share of common stock for the year ended December 31, 2023 and period ended December 31, 2022 was calculated as follows: FOR THE YEAR ENDED DECEMBER 31, 2023 AND FOR THE PERIOD JULY 4, 2022 TO DECEMBER 31, 2022 Year Ended Period Ended 2023 2023 2022 2022 Class A Shares Class B Shares Class A Shares Class B Shares Numerator Net income $ 449 $ — $ 19 $ — Denominator Weighted average of common stock outstanding - basic 391.7 — 396.2 — Dilutive effect of conversion of options and escrowed shares using treasury stock method 4.8 — 4.7 — Weighted average of common stock outstanding - diluted 396.5 — 400.9 — Net Income per Share Earnings per share - basic 1.15 1.15 0.05 0.05 Earnings per share - diluted $ 1.13 $ 1.15 $ 0.05 $ 0.05 |
Schedule of Weighted Average Potentially Dilutive Securities | The following weighted average potentially dilutive securities were evaluated under the treasury stock method for potentially dilutive effects and have been excluded in the above computation of diluted net income per share attributable to common shareholders for the period presented due to their anti-dilutive effect: FOR THE YEAR ENDED DECEMBER 31, 2023 AND FOR THE PERIOD JULY 4, 2022 TO DECEMBER 31, 2022 2023 2022 Management stock options of the Manager 8.2 3.4 Escrow shares of the Manager 5.0 0.8 Restricted shares of the Manager — 0.6 Total 13.2 4.8 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Amounts Due From and To Affiliates | Due from affiliates and Due to affiliates consisted of the following: AS AT DECEMBER 31, 2023 2022 Due from Affiliates Receivables related to share and cash-based compensation $ 824 $ 782 Other transactions with related parties 62 — $ 886 $ 782 Due to Affiliates Borrowings on short-term credit facility $ 256 $ — Other transactions with related parties 5 3 $ 261 $ 3 |
ORGANIZATION (Details)
ORGANIZATION (Details) | Dec. 31, 2023 | Dec. 09, 2022 |
Brookfield Asset Management ULC | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 25% | 25% |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Accounting Policies [Abstract] | |
Carrying amount of investments | $ 40,000,000 |
Downward price adjustments to carrying amount of investments | 0 |
Upward price adjustments to carrying amount of investments | $ 0 |
INVESTMENTS - Narrative (Detail
INVESTMENTS - Narrative (Details) $ in Millions | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) director | Dec. 09, 2022 | |
Schedule of Equity Method Investments [Line Items] | |||
Net income from equity method investments | $ 21 | $ 470 | |
Cash distributions received | $ 526 | ||
Brookfield Asset Management ULC | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 25% | 25% | |
Number of directors able to appoint | director | 2 |
INVESTMENTS - Summarized Financ
INVESTMENTS - Summarized Financial Information (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Dec. 31, 2023 | |
Statement of Financial Position [Abstract] | ||
Cash | $ 1 | $ 9 |
Investments | 2,378 | 2,270 |
Assets | 3,161 | 3,205 |
Liabilities | 784 | 1,120 |
Equity | 2,377 | 2,076 |
Income Statement [Abstract] | ||
Expenses | (39) | (402) |
Brookfield Asset Management ULC | ||
Statement of Financial Position [Abstract] | ||
Cash | 3,545 | 2,667 |
Investments | 6,877 | 7,522 |
Assets | 14,087 | 14,290 |
Liabilities | 2,670 | 2,825 |
Preferred shares redeemable non-controlling interest | 1,811 | 2,166 |
Equity | 9,606 | 9,299 |
Income Statement [Abstract] | ||
Revenues | 174 | 4,062 |
Expenses | (61) | (1,546) |
Net income | 84 | 2,137 |
Preferred shares redeemable non-controlling interest | 6 | 262 |
Non-controlling interest | 35 | 36 |
Net income attributable to the common stockholders, basic | 43 | 1,839 |
Net income attributable to the common stockholders, diluted | $ 43 | $ 1,839 |
INVESTMENTS - Unconsolidated VI
INVESTMENTS - Unconsolidated VIE (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Variable Interest Entity [Line Items] | ||
Investments | $ 2,270 | $ 2,378 |
Due from affiliates | 886 | 782 |
Total assets | 3,205 | 3,161 |
Accounts payable | 859 | 781 |
Due to affiliates | 261 | 3 |
Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Investments | 2,270 | 2,378 |
Due from affiliates | 394 | 4 |
Total assets | 2,664 | 2,382 |
Accounts payable | 859 | 781 |
Due to affiliates | 256 | 3 |
Maximum exposure to loss | $ 3,779 | $ 3,166 |
INCOME TAXES - Effective Income
INCOME TAXES - Effective Income Tax Rate Reconciliation (Details) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Statutory income tax rate | 27% | 27% |
Non-taxable amounts | (27.00%) | (28.00%) |
Valuation allowance | 0% | 1% |
Effective income tax rate | 0% | 0% |
INCOME TAXES - Tax Effects of T
INCOME TAXES - Tax Effects of Temporary Differences (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Income Tax Disclosure [Abstract] | ||
Losses (Canada) | $ 2 | $ 0 |
Valuation allowance | (2) | 0 |
Deferred income tax assets | $ 0 | $ 0 |
SHARE-BASED COMPENSATION - Narr
SHARE-BASED COMPENSATION - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 6 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Dec. 31, 2023 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Share-based compensation expense | $ (40) | $ 193 |
Share options | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Options granted (in shares) | 7,900 | |
Options granted (in dollars per share) | $ 35.13 | |
Average term to exercise | 7 years 6 months | |
Share price volatility | 28.50% | |
Weighted-average annual dividend yield | 4.60% | |
Risk-free rate | 3.90% | |
Liquidity discount | 25% | |
Fair value (in dollars per share) | $ 5.26 | |
Fair value of options granted | $ 41.3 | |
Share options | Management Share Option Plan | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Options granted (in shares) | 2,104,000 | |
Options granted (in dollars per share) | $ 35.13 | |
Average term to exercise | 7 years 4 months 24 days | 7 years 6 months |
Share price volatility | 22.20% | 28.50% |
Weighted-average annual dividend yield | 1.80% | 4.60% |
Risk-free rate | 2.10% | 3.90% |
Liquidity discount | 25% | 25% |
Fair value (in dollars per share) | $ 22.39 | $ 35.13 |
Vesting period (up to) | 5 years | |
Expiration period | 10 years | |
Share-based compensation expense | $ 1 | $ 10 |
Weighted-average fair value of options granted (in dollars per share) | $ 3.50 | $ 5.26 |
Share options | Management Share Option Plan | Brookfield Corporation | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Options granted (in shares) | 0 | |
Options granted (in dollars per share) | $ 0 | |
Average term to exercise | 7 years 6 months | |
Share price volatility | 24.80% | |
Weighted-average annual dividend yield | 1.40% | |
Risk-free rate | 1.90% | |
Liquidity discount | 25% | |
Fair value (in dollars per share) | $ 46.62 | |
Weighted-average fair value of options granted (in dollars per share) | $ 8.82 | |
Escrowed Shares | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Options granted (in shares) | 4,800 | |
Options granted (in dollars per share) | $ 35.13 | |
Average term to exercise | 7 years 6 months | |
Share price volatility | 28.50% | |
Weighted-average annual dividend yield | 4.60% | |
Risk-free rate | 3.90% | |
Liquidity discount | 25% | |
Fair value (in dollars per share) | $ 5.26 | |
Fair value of options granted | $ 25.2 | |
Escrowed Shares | Escrowed Stock Plan | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Options granted (in shares) | 3,251,000 | |
Options granted (in dollars per share) | $ 35.13 | |
Average term to exercise | 6 years 10 months 24 days | 7 years 6 months |
Share price volatility | 28.90% | 28.50% |
Weighted-average annual dividend yield | 5.30% | 4.60% |
Risk-free rate | 3.70% | 3.90% |
Liquidity discount | 25% | 25% |
Fair value (in dollars per share) | $ 29.64 | $ 35.13 |
Vesting period (up to) | 5 years | |
Expiration period | 10 years | |
Share-based compensation expense | $ 3 | $ 20 |
Weighted-average fair value of options granted (in dollars per share) | $ 3.83 | $ 5.26 |
Escrowed Shares | Escrowed Stock Plan | Brookfield Corporation | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Options granted (in shares) | 0 | |
Options granted (in dollars per share) | $ 0 | |
Average term to exercise | 7 years 1 month 6 days | |
Share price volatility | 27% | |
Weighted-average annual dividend yield | 1% | |
Risk-free rate | 4% | |
Liquidity discount | 25% | |
Fair value (in dollars per share) | $ 34.84 | |
Weighted-average fair value of options granted (in dollars per share) | $ 7.50 | |
Restricted Stock | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Vesting period (up to) | 5 years | |
Share-based compensation expense | $ 1 | $ 7 |
Deferred Share Unit | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Vesting period (up to) | 5 years | |
Restricted Stock Units (RSUs) | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Vesting period (up to) | 5 years | |
Deferred Share Units And Restricted Share Units | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Share-based compensation expense | (45) | $ 156 |
Fair value of vested DSUs and RSUs | $ 369 | $ 531 |
SHARE-BASED COMPENSATION - Expe
SHARE-BASED COMPENSATION - Expenses of Share-Based Compensation (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Dec. 31, 2023 | |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total expense | $ (40) | $ 193 |
Expense arising from equity classified share-based payment transactions | ||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total expense | 5 | 37 |
Expense (recovery) arising from liability classified share-based payment transactions | ||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total expense | $ (45) | $ 156 |
SHARE-BASED COMPENSATION - Opti
SHARE-BASED COMPENSATION - Option Activity (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Share options | |
Number of Options | |
Granted (in shares) | 7,900 |
Weighted-Average Exercise Price | |
Granted (in dollars per share) | $ / shares | $ 35.13 |
Share options | Management Share Option Plan | |
Number of Options | |
Outstanding (in shares) | 3,639,000 |
Transferred (in shares) | 778,000 |
Granted (in shares) | 2,104,000 |
Exercised (in shares) | (710,000) |
Cancelled (in shares) | (53,000) |
Outstanding (in shares) | 5,758,000 |
Weighted-Average Exercise Price | |
Outstanding (in dollars per share) | $ / shares | $ 22.45 |
Transferred (in dollars per share) | $ / shares | 18.54 |
Granted (in dollars per share) | $ / shares | 35.13 |
Exercised (in dollars per share) | $ / shares | 14.31 |
Cancelled (in dollars per share) | $ / shares | 35.02 |
Outstanding (in dollars per share) | $ / shares | $ 26.57 |
Share options | Management Share Option Plan | Share-Based Payment Arrangement, Employee | |
Number of Options | |
Outstanding (in shares) | 5,800 |
Share options | Management Share Option Plan | Brookfield Corporation | |
Number of Options | |
Outstanding (in shares) | 14,553,000 |
Transferred (in shares) | 3,111,000 |
Granted (in shares) | 0 |
Exercised (in shares) | (2,535,000) |
Cancelled (in shares) | (41,000) |
Outstanding (in shares) | 15,088,000 |
Weighted-Average Exercise Price | |
Outstanding (in dollars per share) | $ / shares | $ 25.38 |
Transferred (in dollars per share) | $ / shares | 20.95 |
Granted (in dollars per share) | $ / shares | 0 |
Exercised (in dollars per share) | $ / shares | 16.12 |
Cancelled (in dollars per share) | $ / shares | 38.89 |
Outstanding (in dollars per share) | $ / shares | $ 24.48 |
Escrowed Shares | |
Number of Options | |
Granted (in shares) | 4,800 |
Weighted-Average Exercise Price | |
Granted (in dollars per share) | $ / shares | $ 35.13 |
Escrowed Shares | Escrowed Stock Plan | |
Number of Options | |
Outstanding (in shares) | 5,452,000 |
Transferred (in shares) | 335,000 |
Granted (in shares) | 3,251,000 |
Outstanding (in shares) | 9,038,000 |
Weighted-Average Exercise Price | |
Outstanding (in dollars per share) | $ / shares | $ 29.64 |
Transferred (in dollars per share) | $ / shares | 29.64 |
Granted (in dollars per share) | $ / shares | 35.13 |
Outstanding (in dollars per share) | $ / shares | $ 31.62 |
Escrowed Shares | Escrowed Stock Plan | Brookfield Corporation | |
Number of Options | |
Outstanding (in shares) | 16,324,000 |
Transferred (in shares) | 1,334,000 |
Granted (in shares) | 0 |
Outstanding (in shares) | 17,658,000 |
Weighted-Average Exercise Price | |
Outstanding (in dollars per share) | $ / shares | $ 34.84 |
Transferred (in dollars per share) | $ / shares | 34.85 |
Granted (in dollars per share) | $ / shares | 0 |
Outstanding (in dollars per share) | $ / shares | $ 34.84 |
SHARE-BASED COMPENSATION - Op_2
SHARE-BASED COMPENSATION - Option Valuation Assumption (Details) - $ / shares | 6 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Dec. 31, 2023 | |
Share options | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Weighted-average share price (in dollars per share) | $ 5.26 | |
Average term to exercise | 7 years 6 months | |
Share price volatility | 28.50% | |
Liquidity discount | 25% | |
Weighted-average annual dividend yield | 4.60% | |
Risk-free rate | 3.90% | |
Share options | Management Share Option Plan | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Weighted-average share price (in dollars per share) | $ 22.39 | $ 35.13 |
Average term to exercise | 7 years 4 months 24 days | 7 years 6 months |
Share price volatility | 22.20% | 28.50% |
Liquidity discount | 25% | 25% |
Weighted-average annual dividend yield | 1.80% | 4.60% |
Risk-free rate | 2.10% | 3.90% |
Share options | Management Share Option Plan | Brookfield Corporation | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Weighted-average share price (in dollars per share) | $ 46.62 | |
Average term to exercise | 7 years 6 months | |
Share price volatility | 24.80% | |
Liquidity discount | 25% | |
Weighted-average annual dividend yield | 1.40% | |
Risk-free rate | 1.90% | |
Escrowed Shares | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Weighted-average share price (in dollars per share) | $ 5.26 | |
Average term to exercise | 7 years 6 months | |
Share price volatility | 28.50% | |
Liquidity discount | 25% | |
Weighted-average annual dividend yield | 4.60% | |
Risk-free rate | 3.90% | |
Escrowed Shares | Escrowed Stock Plan | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Weighted-average share price (in dollars per share) | $ 29.64 | $ 35.13 |
Average term to exercise | 6 years 10 months 24 days | 7 years 6 months |
Share price volatility | 28.90% | 28.50% |
Liquidity discount | 25% | 25% |
Weighted-average annual dividend yield | 5.30% | 4.60% |
Risk-free rate | 3.70% | 3.90% |
Escrowed Shares | Escrowed Stock Plan | Brookfield Corporation | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Weighted-average share price (in dollars per share) | $ 34.84 | |
Average term to exercise | 7 years 1 month 6 days | |
Share price volatility | 27% | |
Liquidity discount | 25% | |
Weighted-average annual dividend yield | 1% | |
Risk-free rate | 4% |
SHARE-BASED COMPENSATION - DSU
SHARE-BASED COMPENSATION - DSU and RSU Activity (Details) - Brookfield Corporation shares in Thousands | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Deferred Share Units Tracking To Brookfield Asset Management Ltd Share Price | |
Number of Units | |
Outstanding (in shares) | 1,207,000 |
Transferred (in shares) | 190,000 |
Granted and reinvested (in shares) | 115,000 |
Exercised and cancelled (in shares) | (9,000) |
Outstanding (in shares) | 1,503,000 |
Deferred Share Units Tracking To BN Share Price | |
Number of Units | |
Outstanding (in shares) | 6,067,000 |
Transferred (in shares) | 747,000 |
Granted and reinvested (in shares) | 56,000 |
Exercised and cancelled (in shares) | (36,000) |
Outstanding (in shares) | 6,834,000 |
Restricted Stock Units (RSUs) | |
Number of Units | |
Outstanding (in shares) | 5,488,000 |
Transferred (in shares) | 0 |
Granted and reinvested (in shares) | 0 |
Exercised and cancelled (in shares) | 0 |
Outstanding (in shares) | 5,488,000 |
Weighted-Average Exercise Price | |
Outstanding (in dollars per share) | $ / shares | $ 6.11 |
Transferred (in dollars per share) | $ / shares | 0 |
Granted and reinvested (in dollars per share) | $ / shares | 0 |
Exercised and cancelled (in dollars per share) | $ / shares | 0 |
Outstanding (in dollars per share) | $ / shares | $ 6.11 |
EARNINGS PER SHARE - Basic and
EARNINGS PER SHARE - Basic and Diluted Net Income per Common Stock (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 6 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Dec. 31, 2023 | |
Denominator | ||
Weighted average of common stock outstanding - basic (in shares) | 396.2 | 391.7 |
Weighted average of common stock outstanding - diluted (in shares) | 400.9 | 396.5 |
Net Income per Share | ||
Earnings per share - basic (in dollars per share) | $ 0.05 | $ 1.15 |
Earnings per share - diluted (in dollars per share) | $ 0.05 | $ 1.13 |
Class A Shares | ||
Numerator | ||
Net income, basic | $ 19 | $ 449 |
Net income, diluted | $ 19 | $ 449 |
Denominator | ||
Weighted average of common stock outstanding - basic (in shares) | 396.2 | 391.7 |
Dilutive effect of conversion of options and escrowed shares using treasury stock method (in shares) | 4.7 | 4.8 |
Weighted average of common stock outstanding - diluted (in shares) | 400.9 | 396.5 |
Net Income per Share | ||
Earnings per share - basic (in dollars per share) | $ 0.05 | $ 1.15 |
Earnings per share - diluted (in dollars per share) | $ 0.05 | $ 1.13 |
Class B Shares | ||
Numerator | ||
Net income, basic | $ 0 | $ 0 |
Net income, diluted | $ 0 | $ 0 |
Denominator | ||
Weighted average of common stock outstanding - basic (in shares) | 0 | 0 |
Dilutive effect of conversion of options and escrowed shares using treasury stock method (in shares) | 0 | 0 |
Weighted average of common stock outstanding - diluted (in shares) | 0 | 0 |
Net Income per Share | ||
Earnings per share - basic (in dollars per share) | $ 0.05 | $ 1.15 |
Earnings per share - diluted (in dollars per share) | $ 0.05 | $ 1.15 |
EARNINGS PER SHARE - Weighted A
EARNINGS PER SHARE - Weighted Average Potentially Dilutive Securities (Details) - shares shares in Millions | 6 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Dec. 31, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total (in shares) | 4.8 | 13.2 |
Management stock options of the Manager | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total (in shares) | 3.4 | 8.2 |
Escrow shares of the Manager | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total (in shares) | 0.8 | 5 |
Restricted shares of the Manager | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total (in shares) | 0.6 | 0 |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Details) - Class B Shares - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Dec. 31, 2023 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Net income, basic (less than) | $ 0 | $ 0 |
Net income attributable to the common stockholders, diluted | $ 0 | $ 0 |
RELATED PARTY TRANSACTIONS - Na
RELATED PARTY TRANSACTIONS - Narrative (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Dec. 31, 2023 | |
Related Party Transaction [Line Items] | ||
Operating recoveries | $ 37,000,000 | $ 383,000,000 |
Unrealized carried interest allocation expense | 3,000,000 | 38,000,000 |
Operating expenses (less than) | 39,000,000 | 402,000,000 |
Additional paid-in-capital | 278,000,000 | 403,000,000 |
Purchase of tracking option | 0 | 41,000,000 |
Carrying value of options purchased | 40,000,000 | |
Brookfield Asset Management ULC | ||
Related Party Transaction [Line Items] | ||
Maximum borrowing capacity | 500,000,000 | |
Brookfield Asset Management ULC | Brookfield Asset Management ULC | ||
Related Party Transaction [Line Items] | ||
Non-cash distributions declared amount | 56,000,000 | |
Purchase of tracking option | 41,000,000 | |
Brookfield Asset Management ULC | Asset Management Services Agreement | ||
Related Party Transaction [Line Items] | ||
Operating recoveries | 0 | 177,000,000 |
Unrealized carried interest allocation expense | 4,000,000 | |
Additional paid-in-capital | 0 | 88,000,000 |
Deferred Income | 16,000,000 | |
Brookfield Asset Management ULC | Transitional Services Agreement | ||
Related Party Transaction [Line Items] | ||
Operating expenses (less than) | 1,000,000 | |
Affiliated Entity | Relationship Agreement | ||
Related Party Transaction [Line Items] | ||
Operating recoveries | $ 206,000,000 | |
Operating expenses (less than) | $ 35,000,000 |
RELATED PARTY TRANSACTIONS - Du
RELATED PARTY TRANSACTIONS - Due From And To Affiliates (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Due from Affiliates | ||
Due from affiliates | $ 886 | $ 782 |
Due to Affiliates | ||
Due to affiliates | 261 | 3 |
Affiliated Entity | ||
Due from Affiliates | ||
Receivables related to share and cash-based compensation | 824 | 782 |
Other transactions with related parties | 62 | 0 |
Due from affiliates | 886 | 782 |
Due to Affiliates | ||
Borrowings on short-term credit facility | 256 | 0 |
Other transactions with related parties | 5 | 3 |
Due to affiliates | $ 261 | $ 3 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) | Feb. 06, 2024 $ / shares |
Subsequent Event | |
Subsequent Event [Line Items] | |
Dividends payable (in dollars per share) | $ 0.38 |