EX-99.2 3 bepq12020-ex992.htm EXHIBIT 99.2 Exhibit
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BROOKFIELD RENEWABLE PARTNERS L.P.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
UNAUDITED 
(MILLIONS) 
Notes
 
March 31, 2020

 
December 31, 2019

Assets
 
 
 
 
 
Current assets
 
 
 
 
 
Cash and cash equivalents
13
 
$
294

 
$
115

Restricted cash
14
 
219

 
154

Trade receivables and other current assets
15
 
645

 
718

Financial instrument assets
4
 
126

 
75

Due from related parties
18
 
90

 
60

Assets held for sale
3
 
190

 
352

 
 
 
1,564

 
1,474

Financial instrument assets
4
 
188

 
165

Equity-accounted investments
12
 
1,791

 
1,889

Property, plant and equipment
7
 
27,873

 
30,714

Goodwill
 
 
662

 
821

Deferred income tax assets
6
 
123

 
116

Other long-term assets
 
 
462

 
512

Total Assets
 
 
$
32,663

 
$
35,691

Liabilities
 
 
 
 
 
Current liabilities
 
 
 
 
 
Accounts payable and accrued liabilities
16
 
$
530

 
$
590

Financial instrument liabilities
4
 
142

 
139

Payables due to related parties
18
 
142

 
127

Corporate borrowings
8
 
100

 
—

Non-recourse borrowings
8
 
580

 
685

Liabilities directly associated with assets held for sale
3
 
95

 
137

 
 
 
1,589

 
1,678

Financial instrument liabilities
4
 
54

 
39

Corporate borrowings
8
 
1,902

 
2,100

Non-recourse borrowings
8
 
7,689

 
8,219

Deferred income tax liabilities
6
 
4,095

 
4,537

Other long-term liabilities
 
 
977

 
987

Equity
 
 
 
 
 
Non-controlling interests
 
 
 
 
 
Participating non-controlling interests – in operating subsidiaries
9
 
7,760

 
8,742

General partnership interest in a holding subsidiary held by Brookfield
9
 
60

 
68

Participating non-controlling interests – in a holding subsidiary – Redeemable/Exchangeable units held by Brookfield
9
 
2,923

 
3,315

Preferred equity
9
 
551

 
597

Preferred limited partners' equity
10
 
1,028

 
833

Limited partners' equity
11
 
4,035

 
4,576

Total Equity
 
 
16,357

 
18,131

Total Liabilities and Equity
 
 
$
32,663

 
$
35,691

The accompanying notes are an integral part of these interim consolidated financial statements.
Approved on behalf of Brookfield Renewable Partners L.P.:
patricasigna04.jpg
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Patricia Zuccotti
Director
David Mann
Director

Brookfield Renewable Partners L.P.
Q1 2020 Interim Consolidated Financial Statements and Notes
March 31, 2020
 
Page 2


BROOKFIELD RENEWABLE PARTNERS L.P.
CONSOLIDATED STATEMENTS OF INCOME
UNAUDITED 
THREE MONTHS ENDED MARCH 31 
(MILLIONS, EXCEPT PER UNIT INFORMATION) 
 
 
 
Notes
 
2020

 
2019

Revenues
18
 
$
792

 
$
825

Other income
 
 
10

 
8

Direct operating costs
 
 
(261
)
 
(254
)
Management service costs
18
 
(31
)
 
(21
)
Interest expense
8
 
(162
)
 
(173
)
Share of (loss) earnings from equity-accounted investments
12
 
(16
)
 
32

Foreign exchange and unrealized financial instrument gain (loss)
4
 
20

 
(18
)
Depreciation
7
 
(206
)
 
(200
)
Other
 
 
(8
)
 
(2
)
Income tax expense
 
 
 
 
 
Current
6
 
(19
)
 
(24
)
Deferred
6
 
1

 
(20
)
 
 
 
(18
)
 
(44
)
Net income
 
 
$
120

 
$
153

Net income attributable to:
 
 
 
 
 
Non-controlling interests
 
 
 
 
 
Participating non-controlling interests – in operating subsidiaries
9
 
$
83

 
$
94

General partnership interest in a holding subsidiary held by Brookfield
9
 
—

 
—

Participating non-controlling interests – in a holding subsidiary – Redeemable/Exchangeable units held by Brookfield
9
 
8

 
18

Preferred equity
9
 
7

 
6

Preferred limited partners' equity
10
 
12

 
10

Limited partners' equity
11
 
10

 
25

 
 
 
$
120

 
$
153

Basic and diluted earnings per LP Unit
 
 
$
0.06

 
$
0.14

The accompanying notes are an integral part of these interim consolidated financial statements.

Brookfield Renewable Partners L.P.
Q1 2020 Interim Consolidated Financial Statements and Notes
March 31, 2020
 
Page 3


BROOKFIELD RENEWABLE PARTNERS L.P.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
UNAUDITED 
THREE MONTHS ENDED MARCH 31 
(MILLIONS) 
 
 
 
Notes
 
2020

 
2019

Net income
 
 
$
120

 
$
153

Other comprehensive (loss) income that will not be reclassified to net income
 
 
 
 
 
Actuarial gain (loss) on defined benefit plans
 
 
2

 
(5
)
Total items that will not be reclassified to net income
 
 
2

 
(5
)
Other comprehensive (loss) income that may be reclassified to net income
 
 
 
 
 
Foreign currency translation
 
 
(1,786
)
 
126

Gains (losses) arising during the period on financial instruments designated as cash-flow hedges
4
 
18

 
(3
)
Unrealized gain (loss) on foreign exchange swaps net investment hedge
4
 
29

 
(7
)
Unrealized (loss) gain on investments in equity securities
4
 
(9
)
 
26

Reclassification adjustments for amounts recognized in net income
4
 
(19
)
 
4

Deferred income taxes on above items
 
 
—

 
(1
)
Equity-accounted investments
12
 
(23
)
 
9

Total items that may be reclassified subsequently to net income
 
 
(1,790
)
 
154

Other comprehensive (loss) income
 
 
(1,788
)
 
149

Comprehensive (loss) income
 
 
$
(1,668
)
 
$
302

Comprehensive (loss) income attributable to:
 
 
 
 
 
Non-controlling interests
 
 
 
 
 
Participating non-controlling interests – in operating subsidiaries
9
 
(897
)
 
177

General partnership interest in a holding subsidiary held by Brookfield
9
 
(6
)
 
1

Participating non-controlling interests – in a holding subsidiary – Redeemable/Exchangeable units held by Brookfield
9
 
(310
)
 
40

Preferred equity
9
 
(39
)
 
19

Preferred limited partners' equity
10
 
12

 
10

Limited partners' equity
11
 
$
(428
)
 
$
55

 
 
 
(1,668
)
 
302

The accompanying notes are an integral part of these interim consolidated financial statements.

Brookfield Renewable Partners L.P.
Q1 2020 Interim Consolidated Financial Statements and Notes
March 31, 2020
 
Page 4


BROOKFIELD RENEWABLE PARTNERS L.P.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
 
 
 
Accumulated other comprehensive income
 
 
 
 
 
Non-controlling interests
 
 
UNAUDITED
THREE MONTHS ENDED MARCH 31
(MILLIONS)
Limited
partners'
equity

 
Foreign
currency
translation

 
Revaluation
surplus

 
Actuarial losses on defined benefit plans

 
Cash flow
hedges

 
Investments in equity securities

 
Total
limited
partners'
equity

 
Preferred
limited
partners'
equity

 
Preferred
equity

 
Participating non-controlling interests – in operating subsidiaries

 
General partnership interest in a holding subsidiary held by Brookfield

 
Participating non-controlling interests – in a holding subsidiary – Redeemable/Exchangeable units held by Brookfield

 
Total
equity

Balance, as at December 31, 2019
$
(1,119
)
 
$
(700
)
 
$
6,424

 
$
(9
)
 
$
(32
)
 
$
12

 
$
4,576

 
$
833

 
$
597

 
$
8,742

 
$
68

 
$
3,315

 
$
18,131

Net income
10

 
—

 
—

 
—

 
—

 
—

 
10

 
12

 
7

 
83

 
—

 
8

 
120

Other comprehensive income (loss)
—

 
(428
)
 
—

 
1

 
(6
)
 
(5
)
 
(438
)
 
—

 
(46
)
 
(980
)
 
(6
)
 
(318
)
 
(1,788
)
Preferred LP Units issued (Note 10)
—

 
—

 
—

 
—

 
—

 
—

 
—

 
195

 
—

 
—

 
—

 
—

 
195

Capital contributions (Note 9)
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
8

 
—

 
—

 
8

Distributions or dividends declared
(99
)
 
—

 
—

 
—

 
—

 
—

 
(99
)
 
(12
)
 
(7
)
 
(77
)
 
(17
)
 
(72
)
 
(284
)
Distribution reinvestment plan
1

 
—

 
—

 
—

 
—

 
—

 
1

 
—

 
—

 
—

 
—

 
—

 
1

Other
9

 
(2
)
 
(11
)
 
—

 
—

 
(11
)
 
(15
)
 
—

 
—

 
(16
)
 
15

 
(10
)
 
(26
)
Change in period
(79
)
 
(430
)
 
(11
)
 
1

 
(6
)
 
(16
)
 
(541
)
 
195

 
(46
)
 
(982
)
 
(8
)
 
(392
)
 
(1,774
)
Balance as at March 31, 2020
$
(1,198
)
 
$
(1,130
)
 
$
6,413

 
$
(8
)
 
$
(38
)
 
$
(4
)
 
$
4,035

 
$
1,028

 
$
551

 
$
7,760

 
$
60

 
$
2,923

 
$
16,357

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, as at December 31, 2018
$
(948
)
 
$
(652
)
 
$
6,120

 
$
(6
)
 
$
(34
)
 
$
4

 
$
4,484

 
$
707

 
$
568

 
$
8,129

 
$
66

 
$
3,252

 
17,206

Net income
25

 
—

 
—

 
—

 
—

 
—

 
25

 
10

 
6

 
94

 
—

 
18

 
153

Other comprehensive income (loss)
—

 
20

 
—

 
(2
)
 
(2
)
 
14

 
30

 
—

 
13

 
83

 
1

 
22

 
149

Preferred LP Units Issued
—

 
—

 
—

 
—

 
—

 
—

 
—

 
126

 
—

 
—

 
—

 
—

 
126

LP Units purchased for cancellation
(1
)

—


—


—


—


—


(1
)

—


—


—


—


—


(1
)
Capital contributions
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
288

 
—

 
—

 
288

Distributions or dividends declared
(93
)
 
—

 
—

 
—

 
—

 
—

 
(93
)
 
(10
)
 
(6
)
 
(134
)
 
(15
)
 
(68
)
 
(326
)
Distribution reinvestment plan
2

 
—

 
—

 
—

 
—

 
—

 
2

 
—

 
—

 
—

 
—

 
—

 
2

Other
205

 
(12
)
 
(199
)
 
1

 
—

 
—

 
(5
)
 
—

 
(1
)
 
(4
)
 
14

 
(3
)
 
1

Change in period
138

 
8

 
(199
)
 
(1
)
 
(2
)
 
14

 
(42
)
 
126

 
12

 
327

 
—

 
(31
)
 
392

Balance as at March 31, 2019
$
(810
)
 
$
(644
)
 
$
5,921

 
$
(7
)
 
$
(36
)
 
$
18

 
$
4,442

 
$
833

 
$
580

 
$
8,456

 
$
66

 
$
3,221

 
$
17,598

The accompanying notes are an integral part of these interim consolidated financial statements.

Brookfield Renewable Partners L.P.
Q1 2020 Interim Consolidated Financial Statements and Notes
March 31, 2020
 
Page 5


BROOKFIELD RENEWABLE PARTNERS L.P.
CONSOLIDATED STATEMENTS OF CASH FLOWS
UNAUDITED
THREE MONTHS ENDED MARCH 31
 
 
 
(MILLIONS)
Notes
 
2020

 
2019

Operating activities
 
 
 
 
 
Net income
 
 
$
120

 
$
153

Adjustments for the following non-cash items:
 
 
 
 
 
Depreciation
7
 
206

 
200

Unrealized foreign exchange and financial instruments (gain) loss
4
 
(21
)
 
20

Share of earnings from equity-accounted investments
12
 
16

 
(32
)
Deferred income tax expense
6
 
(1
)
 
20

Other non-cash items
 
 
22

 
17

Dividends received from equity-accounted investments
12
 
28

 
14

Changes in due to or from related parties
 
 
(1
)
 
5

Net change in working capital balances
 
 
(14
)
 
(30
)
 
 
 
355

 
367

Financing activities
 
 
 
 
 
Commercial paper and corporate credit facilities, net
8
 
39

 
(696
)
Proceeds from non-recourse borrowings
8
 
216

 
93

Repayment of non-recourse borrowings
8
 
(311
)
 
(88
)
Capital contributions from participating non-controlling interests – in operating subsidiaries
9
 
7

 
247

Issuance of preferred limited partnership units
10
 
195

 
126

Repurchase of LP Units
11
 
—

 
(1
)
Distributions paid:
 
 
 

 
 

To participating non-controlling interests – in operating subsidiaries
9
 
(77
)
 
(134
)
To preferred shareholders
9
 
(7
)
 
(6
)
To preferred limited partners' unitholders
10
 
(11
)
 
(9
)
To unitholders of Brookfield Renewable or BRELP
10, 12
 
(182
)
 
(171
)
Borrowings from related party
18
 
—

 
600

Repayments to related party
18
 
—

 
(245
)
 
 
 
(131
)
 
(284
)
Investing activities
 
 
 

 
 

Investment in equity-accounted investments
 
 
(12
)
 
—

Investment in property, plant and equipment
7
 
(53
)
 
(29
)
Proceeds from disposal of assets
2
 
94

 
—

Disposal of securities
4
 
2

 
5

Restricted cash and other
 
 
(60
)
 
(55
)
 
 
 
(29
)
 
(79
)
Foreign exchange loss on cash
 
 
(12
)
 
—

Cash and cash equivalents
 
 
 

 
 

Increase
 
 
183

 
4

Net change in cash classified within assets held for sale
 
 
(4
)
 
—

Balance, beginning of period
 
 
115

 
173

Balance, end of period
 
 
$
294

 
$
177

Supplemental cash flow information:
 
 
 

 
 

Interest paid
 
 
$
150

 
$
143

Interest received
 
 
$
6

 
$
4

Income taxes paid
 
 
$
21

 
$
19

The accompanying notes are an integral part of these interim consolidated financial statements.

Brookfield Renewable Partners L.P.
Q1 2020 Interim Consolidated Financial Statements and Notes
March 31, 2020
 
Page 6


BROOKFIELD RENEWABLE PARTNERS L.P.
NOTES TO THE UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
The business activities of Brookfield Renewable Partners L.P. ("Brookfield Renewable") consist of owning a portfolio of renewable power generating facilities primarily in North America, Colombia, Brazil, Europe, India and China.
Unless the context indicates or requires otherwise, the term "Brookfield Renewable" means Brookfield Renewable Partners L.P. and its controlled entities.
Brookfield Renewable is a publicly traded limited partnership established under the laws of Bermuda pursuant to an amended and restated limited partnership agreement dated November 20, 2011.
The registered office of Brookfield Renewable is 73 Front Street, Fifth Floor, Hamilton HM12, Bermuda.
The immediate parent of Brookfield Renewable is its general partner, Brookfield Renewable Partners Limited ("BRPL"). The ultimate parent of Brookfield Renewable is Brookfield Asset Management Inc. ("Brookfield Asset Management"). Brookfield Asset Management and its subsidiaries, other than Brookfield Renewable, are also individually and collectively referred to as "Brookfield" in these financial statements.
Brookfield Renewable's non-voting limited partnership units ("LP Units") are traded under the symbol "BEP" on the New York Stock Exchange and under the symbol "BEP.UN" on the Toronto Stock Exchange. Brookfield Renewable's Class A Series 5, Series 7, Series 9, Series 11, Series 13, and Series 15 preferred limited partners' equity are traded under the symbols "BEP.PR.E", "BEP.PR.G", "BEP.PR.I", "BEP.PR.K", "BEP.PR.M" and "BEP.PR.O" respectively, on the Toronto Stock Exchange. Brookfield Renewable's Class A Series 17 preferred limited partners' equity is traded under the symbol "BEP.PR.A" on the New York Stock Exchange.
 
Page
 
1.
Basis of preparation and significant accounting policies
2.
Disposal of assets
3.
Assets held for sale
4.
Risk management and financial instruments
5.
Segmented information
 
 
 
6.
Income taxes
 
 
 
7.
Property, plant and equipment
8.
Borrowings
9.
Non-controlling interests
10.
Preferred limited partners' equity
11.
Limited partners' equity
12.
Equity-accounted investments
13.
Cash and cash equivalents
14.
Restricted cash
15.
Trade receivables and other current assets
16.
Accounts payable and accrued liabilities
17.
Commitments, contingencies and guarantees
 
 
 
 
18.
Related party transactions
19.
Subsidiary public issuers
20.
Subsequent events


Brookfield Renewable Partners L.P.
Q1 2020 Interim Consolidated Financial Statements and Notes
March 31, 2020
 
Page 7



1. BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES
(a) Statement of compliance
The interim consolidated financial statements have been prepared in accordance with IAS 34, Interim Financial Reporting. 
Certain information and footnote disclosures normally included in the annual audited consolidated financial statements prepared in accordance with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”), have been omitted or condensed. These interim consolidated financial statements should be read in conjunction with Brookfield Renewable’s December 31, 2019 audited consolidated financial statements. The interim consolidated statements have been prepared on a basis consistent with the accounting policies disclosed in the December 31, 2019 audited consolidated financial statements.
The interim consolidated financial statements are unaudited and reflect adjustments (consisting of normal recurring adjustments) that are, in the opinion of management, necessary to provide a fair statement of results for the interim periods in accordance with IFRS.
The results reported in these interim consolidated financial statements should not be regarded as necessarily indicative of results that may be expected for an entire year. The policies set out below are consistently applied to all periods presented, unless otherwise noted. 
These consolidated financial statements have been authorized for issuance by the Board of Directors of Brookfield Renewable’s general partner, BRPL, on May 6, 2020.
Certain comparative figures have been reclassified to conform to the current year’s presentation.
References to $, C$, €, R$, COP, INR, and THB are to United States (“U.S.”) dollars, Canadian dollars, Euros, Brazilian reais, Colombian pesos, Indian Rupees, and Thai baht, respectively.
All figures are presented in millions of U.S. dollars unless otherwise noted.
(b) Basis of preparation
The interim consolidated financial statements have been prepared on the basis of historical cost, except for the revaluation of property, plant and equipment and certain assets and liabilities which have been measured at fair value. Cost is recorded based on the fair value of the consideration given in exchange for assets.
Consolidation
These interim consolidated financial statements include the accounts of Brookfield Renewable and its subsidiaries, which are the entities over which Brookfield Renewable has control. An investor controls an investee when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Non-controlling interests in the equity of Brookfield Renewable’s subsidiaries are shown separately in equity in the interim consolidated statements of financial position.
(c) Recently adopted accounting standards
Several amendments and interpretations apply for the first time in 2020, but do not have an impact on the consolidated financial statements of Brookfield Renewable. Brookfield Renewable has not early adopted any other standards, interpretations or amendments that have been issued but are not yet effective.

Brookfield Renewable Partners L.P.
Q1 2020 Interim Consolidated Financial Statements and Notes
March 31, 2020
 
Page 8


2. DISPOSAL OF ASSETS
In March 2020, Brookfield Renewable, along with its institutional partners, completed the sale of a 39 MW portfolio of solar assets in Thailand. The total consideration was THB 3,079 ($94 million) and Brookfield Renewable’s interest in the portfolio was approximately 31%. This resulted in a loss on disposition of $12 million ($4 million net to Brookfield Renewable) recognized in the consolidated statements of income under Other. Immediately prior to the classification of the portfolio as held for sale in 2018, Brookfield Renewable performed a revaluation of the property, plant & equipment, in line with its election to apply the revaluation method and recorded a fair value uplift of $42 million. As a result of the disposition, Brookfield Renewable's portion of the accumulated revaluation surplus of $13 million post-tax was reclassified from other comprehensive income directly to equity and noted as an Other item in the consolidated statements of changes in equity.
Summarized financial information relating to the disposal of the Thailand portfolio is shown below:
(MILLIONS)
 
 
Proceeds
 
$
94

Carrying value of net assets held for sale
 
 
Assets
 
114

Liabilities
 
(8
)
 
 
106

Loss on disposal
 
$
(12
)
3.  ASSETS HELD FOR SALE
As at March 31, 2020, assets held for sale within Brookfield Renewable's operating segments include solar facilities in South Africa and Asia.
The following is a summary of the major items of assets and liabilities classified as held for sale:
(MILLIONS)
 
March 31, 2020

 
December 31, 2019

Assets
 
 
 
 
Cash and cash equivalents
 
$
2

 
$
14

Restricted cash
 
17

 
22

Trade receivables and other current assets
 
8

 
13

Property, plant and equipment
 
163

 
303

Assets held for sale
 
$
190

 
$
352

Liabilities
 
 
 
 
Current liabilities
 
$
8

 
$
18

Long-term debt
 
56

 
73

Other long-term liabilities
 
31

 
46

Liabilities directly associated with assets held for sale
 
$
95

 
$
137


Brookfield Renewable Partners L.P.
Q1 2020 Interim Consolidated Financial Statements and Notes
March 31, 2020
 
Page 9


4.  RISK MANAGEMENT AND FINANCIAL INSTRUMENTS
RISK MANAGEMENT
Brookfield Renewable`s activities expose it to a variety of financial risks, including market risk (i.e., commodity price risk, interest rate risk, and foreign currency risk), credit risk and liquidity risk. Brookfield Renewable uses financial instruments primarily to manage these risks.
COVID-19 pandemic has impacted business across the globe and we are monitoring its impact on our business.  While it is difficult to predict how significant the impact of COVID-19 will be, our business is highly resilient given we are an owner, operator and investor in one of the most critical sectors in the world and have a robust balance sheet with a strong investment grade rating.  We generate revenues that are predominantly backed by long-term contracts with well diversified creditworthy counterparties.  The majority of our assets are operated from centralized control centers and our operators around the world have implemented contingency plans to ensure operations, maintenance and capital programs continue with little disruption. 
There have been no other material changes in exposure to the risks Brookfield Renewable is exposed to since the December 31, 2019 audited consolidated financial statements.
Fair value disclosures
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.
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, management looks primarily to external readily observable market inputs such as interest rate yield curves, currency rates, commodity prices and, as applicable, credit spreads.
A fair value measurement of a non-financial asset is the consideration that would be received in an orderly transaction between market participants, considering the highest and best use of the asset.
Assets and liabilities measured at fair value are categorized into one of three hierarchy levels, described below. Each level is based on the transparency of the inputs used to measure the fair values of assets and liabilities.
Level 1 - inputs are based on unadjusted quoted prices in active markets for identical assets and liabilities;
Level 2 - inputs, other than quoted prices in Level 1, that are observable for the asset or liability, either directly or indirectly; and
Level 3 - inputs for the asset or liability that are not based on observable market data.

Brookfield Renewable Partners L.P.
Q1 2020 Interim Consolidated Financial Statements and Notes
March 31, 2020
 
Page 10


The following table presents Brookfield Renewable's assets and liabilities measured and disclosed at fair value classified by the fair value hierarchy:
 
March 31, 2020
 
December 31, 2019
(MILLIONS)
Level 1

 
Level 2

 
Level 3

 
Total

 
Total

Assets measured at fair value:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
294

 
$
—

 
$
—

 
$
294

 
$
115

Restricted cash(1)
234

 
—

 
—

 
234

 
173

Financial instrument assets(2)
 
 
 
 
 
 


 
 
Energy derivative contracts
—

 
106

 
20

 
126

 
76

Interest rate swaps
—

 
—

 
—

 
—

 
—

Foreign exchange swaps
—

 
37

 
—

 
37

 
4

Investments in equity securities
42

 
64

 
45

 
151

 
160

Property, plant and equipment
—

 
—

 
27,873

 
27,873

 
30,714

Liabilities measured at fair value:
 
 
 
 
 
 


 
 
Financial instrument liabilities(2)
 
 
 
 
 
 


 
 
Energy derivative contracts
—

 
(15
)
 
—

 
(15
)
 
(8
)
Interest rate swaps
—

 
(173
)
 
—

 
(173
)
 
(131
)
Foreign exchange swaps
—

 
(8
)
 
—

 
(8
)
 
(39
)
Contingent consideration(3)
—

 
—

 
(27
)
 
(27
)
 
(11
)
Assets for which fair value is disclosed:
 
 
 
 
 
 


 
 
Equity-accounted investments(4)
1,035

 
—

 
—

 
1,035

 
1,010

Liabilities for which fair value is disclosed:
 
 
 
 
 
 


 
 
Corporate borrowings
(1,681
)
 
(338
)
 
—

 
(2,019
)
 
(2,204
)
Non-recourse borrowing
(394
)
 
(8,328
)
 
—

 
(8,722
)
 
(9,573
)
Total
$
(470
)
 
$
(8,655
)
 
$
27,911

 
$
18,786

 
$
20,286

(1) 
Includes both the current amount and long-term amount included in Other long-term assets.
(2) 
Includes both current and long-term amounts.
(3) 
Amount relates to acquisitions with obligations lapsing in 2021 to 2024.
(4) 
The fair value corresponds to Brookfield Renewable's investment in publicly-quoted common shares of TerraForm Power, Inc.
There were no transfers between levels during the three months ended March 31, 2020.
Financial instruments disclosures
The aggregate amount of Brookfield Renewable's net financial instrument positions are as follows:
 
March 31, 2020
 
December 31, 2019
(MILLIONS)
Assets

 
Liabilities

 
Net Assets
(Liabilities)

 
Net Assets
(Liabilities)

Energy derivative contracts
$
126

 
$
15

 
$
111

 
$
68

Interest rate swaps
—

 
173

 
(173
)
 
(131
)
Foreign exchange swaps
37

 
8

 
29

 
(35
)
Investments in equity securities
151

 
—

 
151

 
160

Total
314

 
196

 
118

 
62

Less: current portion
126

 
142

 
(16
)
 
(64
)
Long-term portion
$
188

 
$
54

 
$
134

 
$
126


Brookfield Renewable Partners L.P.
Q1 2020 Interim Consolidated Financial Statements and Notes
March 31, 2020
 
Page 11


(a)   Energy derivative contracts
Brookfield Renewable has entered into long-term energy derivative contracts primarily to stabilize or eliminate the price risk on the sale of certain future power generation. Certain energy contracts are recorded in Brookfield Renewable's interim consolidated financial statements at an amount equal to fair value, using quoted market prices or, in their absence, a valuation model using both internal and third-party evidence and forecasts.
(b)   Interest rate hedges
Brookfield Renewable has entered into interest rate hedge contracts primarily to minimize exposure to interest rate fluctuations on its variable rate debt or to lock in interest rates on future debt refinancing. All interest rate hedge contracts are recorded in the interim consolidated financial statements at fair value.
(c)   Foreign exchange swaps
Brookfield Renewable has entered into foreign exchange swaps to minimize its exposure to currency fluctuations impacting its investments and earnings in foreign operations, and to fix the exchange rate on certain anticipated transactions denominated in foreign currencies.
(d)   Investments in equity securities
Brookfield Renewable's investments in equity securities consist of investments in publicly-quoted and non-publicly quoted securities which are recorded on the statement of financial position at fair value.  
The following table reflects the unrealized gains (losses) included in Foreign exchange and unrealized financial instrument loss in the interim consolidated statements of income for the three months ended March 31:
(MILLIONS)
2020

 
2019

Energy derivative contracts
$
24

 
$
6

Interest rate swaps
(22
)
 
(13
)
Foreign exchange swaps
54

 
(11
)
Foreign exchange gain (loss)
(36
)
 
—

 
$
20

 
$
(18
)
The following table reflects the gains (losses) included in other comprehensive income in the interim consolidated statements of comprehensive loss for the three months ended March 31:
(MILLIONS)
2020

 
2019

Energy derivative contracts
$
40

 
$
13

Interest rate swaps
(33
)
 
(17
)
 
7

 
(4
)
Foreign exchange swaps – net investment
32

 
(6
)
Investments in equity securities
(9
)
 
26

 
$
30

 
$
16

The following table reflects the reclassification adjustments recognized in net income in the interim consolidated statements of comprehensive loss for the three months ended March 31:
(MILLIONS)
2020

 
2019

Energy derivative contracts
$
(22
)
 
$
1

Interest rate swaps
3

 
3

 
$
(19
)
 
$
4


Brookfield Renewable Partners L.P.
Q1 2020 Interim Consolidated Financial Statements and Notes
March 31, 2020
 
Page 12


5. SEGMENTED INFORMATION
Brookfield Renewable’s Chief Executive Officer and Chief Financial Officer (collectively, the chief operating decision maker or “CODM”) review the results of the business, manage operations, and allocate resources based on the type of technology.
Our operations are segmented by – 1) hydroelectric, 2) wind, 3) solar, 4) storage & other (cogeneration and biomass), and 5) corporate – with hydroelectric and wind further segmented by geography (i.e., North America, Colombia, Brazil, Europe and Asia). This best reflects the way in which the CODM reviews results, manages operations and allocates resources. The Colombia segment aggregates the financial results of its hydroelectric and cogeneration facilities. The Canada segment includes the financial results of our strategic investment in TransAlta Corporation ("TransAlta"). The corporate segment represents all activity performed above the individual segments for the business.
Reporting to the CODM on the measures utilized to assess performance and allocate resources is provided on a proportionate basis. Information on a proportionate basis reflects Brookfield Renewable’s share from facilities which it accounts for using consolidation and the equity method whereby Brookfield Renewable either controls or exercises significant influence or joint control over the investment, respectively. Proportionate information provides a Unitholder (holders of the GP interest, Redeemable/Exchangeable partnership units, and LP Units) perspective that the CODM considers important when performing internal analyses and making strategic and operating decisions. The CODM also believes that providing proportionate information helps investors understand the impacts of decisions made by management and financial results allocable to Brookfield Renewable’s Unitholders.
Proportionate financial information is not, and is not intended to be, presented in accordance with IFRS. Tables reconciling IFRS data with data presented on a proportionate consolidation basis have been disclosed. Segment revenues, other income, direct operating costs, interest expense, depreciation, current and deferred income taxes, and other are items that will differ from results presented in accordance with IFRS as these items include Brookfield Renewable’s proportionate share of earnings from equity-accounted investments attributable to each of the above-noted items, and exclude the proportionate share of earnings (loss) of consolidated investments not held by us apportioned to each of the above-noted items.
Brookfield Renewable does not control those entities that have not been consolidated and as such, have been presented as equity-accounted investments in its consolidated financial statements. The presentation of the assets and liabilities and revenues and expenses does not represent Brookfield Renewable’s legal claim to such items, and the removal of financial statement amounts that are attributable to non-controlling interests does not extinguish Brookfield Renewable’s legal claims or exposures to such items.
Brookfield Renewable reports its results in accordance with these segments and presents prior period segmented information in a consistent manner.
In accordance with IFRS 8, Operating Segments, Brookfield Renewable discloses information about its reportable segments based upon the measures used by the CODM in assessing performance. Except as it relates to proportionate financial information discussed above, the accounting policies of the reportable segments are the same as those described in Note 1 – Basis of preparation and significant accounting policies. Brookfield Renewable analyzes the performance of its operating segments based on revenues, Adjusted EBITDA, and Funds From Operations. Adjusted EBITDA and Funds From Operations are . are not generally accepted accounting measures under IFRS and therefore may differ from definitions of Adjusted EBITDA and Funds From Operations used by other entities.
Brookfield Renewable uses Adjusted EBITDA to assess the performance of its operations before the effects of interest expense, income taxes, depreciation, management service costs, non-controlling interests, unrealized gain or loss on financial instruments, non-cash gain or loss from equity-accounted investments, distributions to preferred shareholders and preferred limited partners and other typical non-recurring items.
Brookfield Renewable uses Funds From Operations to assess the performance of its operations and is defined as Adjusted EBITDA less management service costs, interest and current income taxes, which is then adjusted for the cash portion of non-controlling interests and distributions to preferred shareholders and preferred limited partners.  


Brookfield Renewable Partners L.P.
Q1 2020 Interim Consolidated Financial Statements and Notes
March 31, 2020
 
Page 13


The following table provides each segment's results in the format that management organizes its segments to make operating decisions and assess performance and reconciles Brookfield Renewable's proportionate results to the consolidated statements of income on a line by line basis by aggregating the components comprising the earnings from Brookfield Renewable's investments in associates and reflecting the portion of each line item attributable to non-controlling interests for the three months ended March 31, 2020:
 
Attributable to Unitholders
 
Contribution from equity-accounted investments

 
Attributable
 to non-
 controlling
 interests

 
 As per
IFRS
financials(1) 

 
Hydroelectric
 
Wind
 
Solar

 
Storage & Other

 
Corporate

 
Total

 
(MILLIONS)
North
America

 
Brazil

 
Colombia

 
North
America

 
Europe

 
Brazil

 
Asia

 
 
Revenues
265

 
61

 
60

 
60

 
22

 
4

 
6

 
49

 
18

 
—

 
545

 
(95
)
 
342

 
792

Other income
2

 
3

 
2

 
2

 
—

 
—

 
—

 
1

 
—

 
2

 
12

 
(2
)
 
—

 
10

Direct operating costs
(69
)
 
(17
)
 
(26
)
 
(14
)
 
(9
)
 
(1
)
 
(1
)
 
(14
)
 
(10
)
 
(5
)
 
(166
)
 
28

 
(123
)
 
(261
)
Share of Adjusted EBITDA from equity-accounted investments
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
69

 
8

 
77

Adjusted EBITDA
198

 
47

 
36

 
48

 
13

 
3

 
5

 
36

 
8

 
(3
)
 
391

 
—

 
227

 
 
Management service costs
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(31
)
 
(31
)
 
—

 
—

 
(31
)
Interest expense
(39
)
 
(4
)
 
(7
)
 
(19
)
 
(2
)
 
(1
)
 
(2
)
 
(17
)
 
(2
)
 
(20
)
 
(113
)
 
27

 
(76
)
 
(162
)
Current income taxes
(3
)
 
(2
)
 
(4
)
 
—

 
—

 
(1
)
 
—

 
(1
)
 
—

 
—

 
(11
)
 
4

 
(12
)
 
(19
)
Distributions attributable to
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred limited partners equity
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(12
)
 
(12
)
 
—

 
—

 
(12
)
Preferred equity
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(7
)
 
(7
)
 
—

 
—

 
(7
)
Share of interest and cash taxes from equity accounted investments
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(31
)
 
(3
)
 
(34
)
Share of Funds From Operations attributable to non-controlling interests
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(136
)
 
(136
)
Funds From Operations
156

 
41

 
25

 
29

 
11

 
1

 
3

 
18

 
6

 
(73
)
 
217

 
—

 
—

 
 
Depreciation
(58
)
 
(20
)
 
(6
)
 
(42
)
 
(12
)
 
(4
)
 
(2
)
 
(22
)
 
(5
)
 
(1
)
 
(172
)
 
48

 
(82
)
 
(206
)
Foreign exchange and unrealized financial instrument loss
18

 
7

 
5

 
(2
)
 
(11
)
 
—

 
(1
)
 
(5
)
 
1

 
(13
)
 
(1
)
 
12

 
9

 
20

Deferred income tax expense
(20
)
 
1

 
(1
)
 
(2
)
 
1

 
—

 
—

 
(1
)
 
—

 
16

 
(6
)
 
5

 
2

 
1

Other
(20
)
 
(4
)
 
—

 
5

 
—

 
—

 
2

 
—

 
(1
)
 
(2
)
 
(20
)
 
(6
)
 
18

 
(8
)
Share of earnings from equity-accounted investments
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(59
)
 
—

 
(59
)
Net loss attributable to non-controlling interests
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
53

 
53

Net income (loss) attributable to Unitholders(2)
76

 
25

 
23

 
(12
)
 
(11
)
 
(3
)
 
2

 
(10
)
 
1

 
(73
)
 
18

 
—

 
—

 
18

(1) 
Share of loss from equity-accounted investments of $16 million is comprised of amounts found on the share of Adjusted EBITDA, share of interest and cash taxes and share of earnings lines. Net income attributable to participating non-controlling interests - in operating subsidiaries of $83 million is comprised of amounts found on Share of Funds From Operations attributable to non-controlling interests and Net loss attributable to non-controlling interests.
(2) 
Net income (loss) attributable to Unitholders includes net income (loss) attributable to GP interest, Redeemable/Exchangeable partnership units and LP Units. Total net income (loss) includes amounts attributable to Unitholders, non-controlling interests, preferred limited partners equity and preferred equity.

Brookfield Renewable Partners L.P.
Q1 2020 Interim Consolidated Financial Statements and Notes
March 31, 2020
 
Page 14


The following table provides each segment's results in the format that management organizes its segments to make operating decisions and assess performance and reconciles Brookfield Renewable's proportionate results to the consolidated statements of income on a line by line basis by aggregating the components comprising the earnings from Brookfield Renewable's investments in associates and reflecting the portion of each line item attributable to non-controlling interests for the three months ended March 31, 2019:
 
Attributable to Unitholders
 
Contribution from equity-accounted investments

 
Attributable
 to non-
 controlling
 interests

 
 As per
IFRS
financials(1) 

 
Hydroelectric
 
Wind
 
Solar

 
Storage & Other

 
Corporate

 
Total

 
(MILLIONS)
North
America

 
Brazil

 
Colombia

 
North
America

 
Europe

 
Brazil

 
Asia

 
 
Revenues
262

 
65

 
62

 
63

 
28

 
7

 
2

 
38

 
24

 
—

 
551

 
(91
)
 
365

 
825

Other income
1

 
1

 
—

 
2

 
—

 
—

 
—

 
1

 
—

 
2

 
7

 
(4
)
 
5

 
8

Direct operating costs
(68
)
 
(17
)
 
(24
)
 
(17
)
 
(8
)
 
(2
)
 
(1
)
 
(7
)
 
(13
)
 
(6
)
 
(163
)
 
29

 
(120
)
 
(254
)
Share of Adjusted EBITDA from equity-accounted investments
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
66

 
7

 
73

Adjusted EBITDA
195

 
49

 
38

 
48

 
20

 
5

 
1

 
32

 
11

 
(4
)
 
395

 
—

 
257

 
 
Management service costs
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(21
)
 
(21
)
 
—

 
—

 
(21
)
Interest expense
(41
)
 
(6
)
 
(8
)
 
(19
)
 
(3
)
 
(2
)
 
—

 
(14
)
 
(4
)
 
(24
)
 
(121
)
 
24

 
(76
)
 
(173
)
Current income taxes
(2
)
 
(3
)
 
(4
)
 
—

 
—

 
(1
)
 
—

 
—

 
—

 
—

 
(10
)
 
1

 
(15
)
 
(24
)
Distributions attributable to
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred limited partners equity
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(10
)
 
(10
)
 
—

 
—

 
(10
)
Preferred equity
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(6
)
 
(6
)
 
—

 
—

 
(6
)
Share of interest and cash taxes from equity accounted investments
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(25
)
 
(4
)
 
(29
)
Share of Funds From Operations attributable to non-controlling interests
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(162
)
 
(162
)
Funds From Operations
152

 
40

 
26

 
29

 
17

 
2

 
1

 
18

 
7

 
(65
)
 
227

 
—

 
—

 
 
Depreciation
(55
)
 
(22
)
 
(5
)
 
(40
)
 
(10
)
 
(4
)
 
(1
)
 
(13
)
 
(6
)
 
(1
)
 
(157
)
 
33

 
(76
)
 
(200
)
Foreign exchange and unrealized financial instrument loss
2

 
(1
)
 
—

 
—

 
(1
)
 
(1
)
 
—

 
—

 
(1
)
 
(16
)
 
(18
)
 
1

 
(1
)
 
(18
)
Deferred income tax expense
(17
)
 
1

 
(2
)
 
16

 
5

 
—

 
(1
)
 
16

 
—

 
6

 
24

 
(35
)
 
(9
)
 
(20
)
Other
(15
)
 
(1
)
 
1

 
(1
)
 
—

 
—

 
—

 
(12
)
 
—

 
(5
)
 
(33
)
 
13

 
18

 
(2
)
Share of earnings from equity-accounted investments
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(12
)
 
—

 
(12
)
Net loss attributable to non-controlling interests
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
68

 
68

Net income (loss) attributable to Unitholders(2)
67

 
17

 
20

 
4

 
11

 
(3
)
 
(1
)
 
9

 
—

 
(81
)
 
43

 
—

 
—

 
43

(1) 
Share of earnings from equity-accounted investments of $32 million is comprised of amounts found on the share of Adjusted EBITDA, share of interest and cash taxes and share of earnings lines. Net income attributable to participating non-controlling interests - in operating subsidiaries of $94 million is comprised of amounts found on Share of Funds From Operations attributable to non-controlling interests and Net loss attributable to non-controlling interests.
(2) 
Net income (loss) attributable to Unitholders includes net income (loss) attributable to GP interest, Redeemable/Exchangeable partnership units and LP Units. Total net income (loss) includes amounts attributable to Unitholders, non-controlling interests, preferred limited partners equity and preferred equity.




Brookfield Renewable Partners L.P.
Q1 2020 Interim Consolidated Financial Statements and Notes
March 31, 2020
 
Page 15


The following table presents information on a segmented basis about certain items in Brookfield Renewable's statements of financial position:
 
Attributable to Unitholders
 
Contribution from equity-accounted investments

 
Attributable
to non-
controlling
interests

 
As per
IFRS
financials

 
Hydroelectric
 
Wind
 
Solar

 
Storage & Other

 
Corporate

 
Total

 
(MILLIONS)
North
America

 
Brazil

 
Colombia

 
North
America

 
Europe

 
Brazil

 
Asia

 
 
As at March 31, 2020
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
22

 
$
14

 
$
25

 
$
26

 
$
11

 
$
11

 
$
12

 
$
84

 
$
6

 
$
1

 
$
212

 
$
(101
)
 
$
183

 
$
294

Property, plant and equipment
11,110

 
1,493

 
1,423

 
2,454

 
642

 
282

 
172

 
2,184

 
717

 
—

 
20,477

 
(4,316
)
 
11,712

 
27,873

Total assets
11,921

 
1,657

 
1,651

 
2,616

 
705

 
308

 
222

 
2,436

 
761

 
98

 
22,375

 
(3,112
)
 
13,400

 
32,663

Total borrowings
2,986

 
166

 
382

 
1,301

 
317

 
68

 
124

 
1,386

 
225

 
2,010

 
8,965

 
(2,306
)
 
3,612

 
10,271

Other liabilities
2,901

 
115

 
400

 
529

 
113

 
7

 
22

 
440

 
44

 
243

 
4,814

 
(806
)
 
2,027

 
6,035

For the three months ended March 31, 2020:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Additions to property, plant and equipment
12

 
8

 
1

 
9

 
2

 
—

 
—

 
21

 
2

 
1

 
56

 
(17
)
 
58

 
97

As at December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
10

 
$
7

 
$
10

 
$
18

 
$
21

 
$
2

 
$
5

 
$
63

 
$
6

 
$
1

 
$
143

 
$
(89
)
 
$
61

 
$
115

Property, plant and equipment
11,488

 
1,938

 
1,773

 
2,556

 
628

 
368

 
187

 
2,018

 
732

 
—

 
21,688

 
(4,147
)
 
13,173

 
30,714

Total assets
12,218

 
2,126

 
2,027

 
2,705

 
692

 
391

 
233

 
2,266

 
780

 
103

 
23,541

 
(2,872
)
 
15,022

 
35,691

Total borrowings
3,070

 
208

 
449

 
1,221

 
326

 
71

 
124

 
1,470

 
235

 
2,107

 
9,281

 
(2,157
)
 
3,880

 
11,004

Other liabilities
2,877

 
148

 
499

 
597

 
100

 
10

 
28

 
335

 
31

 
248

 
4,873

 
(715
)
 
2,398

 
6,556

For the three months ended March 31, 2019:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Additions to property, plant and equipment
8

 
5

 
—

 
5

 
1

 
—

 
—

 
—

 
3

 
1

 
23

 
(7
)
 
16

 
32


Brookfield Renewable Partners L.P.
Q1 2020 Interim Consolidated Financial Statements and Notes
March 31, 2020
 
Page 16


Geographical Information
The following table presents consolidated revenue split by geographical region for the three months ended March 31:
(MILLIONS)
2020

 
2019

United States
$
299

 
$
302

Colombia
247

 
257

Canada
90

 
84

Brazil
85

 
100

Europe
27

 
42

Asia
44

 
40

 
$
792

 
$
825

The following table presents consolidated property, plant and equipment and equity-accounted investments split by geographical region:
(MILLIONS)
March 31, 2020

 
December 31, 2019

United States
$
14,717

 
$
14,952

Colombia
5,909

 
7,353

Canada
3,918

 
4,268

Brazil
2,812

 
3,631

Europe
1,441

 
1,539

Asia
867

 
860

 
$
29,664

 
$
32,603

6. INCOME TAXES
Brookfield Renewable's effective income tax rate was 13.0% for the three months ended March 31, 2020 (2019: 22.2%). The effective tax rate is different than the statutory rate primarily due to rate differentials and non-controlling interests' income not subject to tax.
7. PROPERTY, PLANT AND EQUIPMENT
The following table presents a reconciliation of property, plant and equipment at fair value:
(MILLIONS)
Notes
 
Hydro

 
Wind

 
Solar

 
Storage & other(1)

 
Total(2)

As at December 31, 2019
 
 
$
26,024

 
$
4,258

 
$
197

 
$
235

 
$
30,714

Additions
 
 
27

 
6

 
63

 
1

 
97

Items recognized through OCI
 
 
 
 
 
 
 
 
 
 
 
Foreign currency translation
 
 
(2,336
)
 
(339
)
 
(10
)
 
(47
)
 
(2,732
)
Items recognized through net income
 
 
 
 
 
 
 
 
 
 
 
Depreciation
 
 
(130
)
 
(69
)
 
(3
)
 
(4
)
 
(206
)
March 31, 2020(3)
 
 
$
23,585

 
$
3,856

 
$
247

 
$
185

 
$
27,873

(1) 
Includes biomass and cogeneration.
(2) 
Includes intangible assets of $8 million (2019: $10 million) and assets under construction of $346 million (2019: $334 million).
(3) 
Includes right-of-use assets not subject to revaluation of $63 million (2019: $71 million) in our hydroelectric segment, $52 million (2019: $51 million) in our wind segment and $3 million (2019: $3 million) in our storage & other segment.

Brookfield Renewable Partners L.P.
Q1 2020 Interim Consolidated Financial Statements and Notes
March 31, 2020
 
Page 17


8. BORROWINGS
Corporate Borrowings
The composition of corporate borrowings is presented in the following table:
 
March 31, 2020
 
December 31, 2019
 
Weighted-average
 
 
 
 
 
Weighted- average
 
 
 
 
(MILLIONS EXCEPT AS NOTED)
Interest
rate (%)
 
Term
(years)

 
Carrying
value

 
Estimated fair value

 
Interest
rate (%)
 
Term
(years)

 
Carrying
value

 
Estimated fair value

Commercial paper and credit facilities
2.2
 
4

 
$
338

 
$
338

 
2.9
 
5

 
$
299

 
$
299

Medium Term Notes:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Series 4 (C$150)
5.8
 
17

 
107

 
$
119

 
5.8
 
17

 
$
115

 
$
142

Series 8 (C$400)
4.8
 
2

 
285

 
295

 
4.8
 
2

 
308

 
324

Series 9 (C$400)
3.8
 
5

 
285

 
292

 
3.8
 
5

 
308

 
322

Series 10 (C$500)
3.6
 
7

 
356

 
362

 
3.6
 
7

 
384

 
400

Series 11 (C$300)
4.3
 
9

 
213

 
218

 
4.3
 
9

 
231

 
248

Series 12 (C$300)
3.4
 
10

 
213

 
209

 
3.4
 
10

 
231

 
232

Series 13 (C$300)
4.3
 
30

 
213

 
186

 
4.3
 
30

 
231

 
237

 
4.1
 
10

 
$
1,672

 
$
1,681

 
4.1
 
10

 
$
1,808

 
$
1,905

Total corporate borrowings
 
2,010

 
2,019

 
 
 
 
 
2,107

 
2,204

Less: Unamortized financing fees(1)
 
(8
)
 
 
 
 
 
 
 
(7
)
 
 
Less: Current portion
 
(100
)
 
 
 
 
 
 
 
—

 
 
 
 
 
 
 
$
1,902

 
 
 
 
 
 
 
$
2,100

 
 
(1) 
Unamortized premiums and unamortized financing fees are amortized over the terms of the borrowing.
Brookfield Renewable had $100 million commercial paper outstanding as at March 31, 2020 (2019: nil). The commercial paper program is supplemented by our $1.75 billion corporate credit facilities.
Brookfield Renewable issues letters of credit from its corporate credit facilities for general corporate purposes which include, but are not limited to, security deposits, performance bonds and guarantees for reserve accounts. As at March 31, 2020, there were no letters of credit issued that utilized the corporate credit facility (2019: nil).
Brookfield Renewable and its subsidiaries issue letters of credit from some of their credit facilities for general corporate and operating purposes which include, but are not limited to, security deposits, performance bonds and guarantees for debt service reserve accounts. See Note 17 – Commitments, contingencies and guarantees for letters of credit issued by subsidiaries.
The following table summarizes the available portion of credit facilities:
(MILLIONS)
March 31, 2020

 
December 31, 2019

Authorized corporate credit facilities(1)
$
2,150

 
$
2,150

Draws on corporate credit facilities(1)
(338
)
 
(299
)
Authorized letter of credit facility
400

 
400

Issued letters of credit
(243
)
 
(266
)
Available portion of corporate credit facilities
$
1,969

 
$
1,985

(1) 
Amounts are guaranteed by Brookfield Renewable.

Brookfield Renewable Partners L.P.
Q1 2020 Interim Consolidated Financial Statements and Notes
March 31, 2020
 
Page 18


Medium term notes
Medium term notes are obligations of a finance subsidiary of Brookfield Renewable, Brookfield Renewable Partners ULC (“Finco”) (Note 19 - Subsidiary public issuers). Finco may redeem some or all of the borrowings from time to time, pursuant to the terms of the indenture. The balance is payable upon maturity, and interest on corporate borrowings is paid semi-annually. The term notes payable by Finco are unconditionally guaranteed by Brookfield Renewable, Brookfield Renewable Energy L.P. (“BRELP”) and certain other subsidiaries.
Subsequent to March 31, 2020, Brookfield Renewable completed the issuance of C$175 million ($124 million) Series 11 medium term notes and C$175 million ($124 million) Series 12 medium term notes. The medium term notes were issued as a re-opening on identical terms, other than issue date and the price to the public, to the 4.25% Series 11 medium term notes and the 3.38% Series 12 medium term notes that were issued in September 2018 and 2019, respectively.
Non-recourse borrowings
Non-recourse borrowings are typically asset-specific, long-term, non-recourse borrowings denominated in the domestic currency of the subsidiary. Non-recourse borrowings in North America and Europe consist of both fixed and floating interest rate debt indexed to the London Interbank Offered Rate (“LIBOR”), the Euro Interbank Offered Rate ("EURIBOR") and the Canadian Dollar Offered Rate (“CDOR”). Brookfield Renewable uses interest rate swap agreements in North America and Europe to minimize its exposure to floating interest rates. Non-recourse borrowings in Brazil consist of floating interest rates of Taxa de Juros de Longo Prazo (“TJLP”), the Brazil National Bank for Economic Development’s long-term interest rate, or Interbank Deposit Certificate rate (“CDI”), plus a margin. Non-recourse borrowings in Colombia consist of both fixed and floating interest rates indexed to Indicador Bancario de Referencia rate (IBR), the Banco Central de Colombia short-term interest rate, and Colombian Consumer Price Index (IPC), Colombia inflation rate, plus a margin. Non-recourse borrowings in India consist of fixed interest rate debt. Non-recourse borrowings in China consist of floating interest rates of People's Bank of China ("PBOC").
The composition of non-recourse borrowings is presented in the following table:
 
March 31, 2020
 
December 31, 2019
 
Weighted-average
 
 
 
 
 
Weighted-average
 
 
 
 
(MILLIONS EXCEPT AS NOTED)
Interest
rate (%)
 
Term
(years)

 
Carrying
value

 
Estimated
fair value

 
Interest
rate (%)
 
Term
(years)

 
Carrying
value

 
Estimated
fair value

Non-recourse borrowings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hydroelectric(1)
5.7
 
9

 
$
6,178

 
$
6,538

 
5.9
 
10

 
$
6,616

 
$
7,106

Wind
5.2
 
11

 
1,835

 
1,875

 
5.2
 
11

 
1,899

 
2,006

Solar
5.8
 
6

 
236

 
233

 
5.1
 
5

 
355

 
363

Storage & other
3.3
 
1

 
75

 
76

 
3.9
 
4

 
94

 
98

Total
5.6
 
9

 
$
8,324

 
$
8,722

 
5.7
 
10

 
$
8,964

 
$
9,573

Add: Unamortized premiums(2)
 
8

 
 
 
 
 
 
 
9

 
 
Less: Unamortized financing fees(2)
 
(63
)
 
 
 
 
 
 
 
(69
)
 
 
Less: Current portion
 
(580
)
 
 
 
 
 
 
 
(685
)
 
 
 
 
 
 
 
$
7,689

 
 
 
 
 
 
 
$
8,219

 
 
(1) 
Includes a lease liability of $329 million associated with a hydroelectric facility included in property, plant and equipment, at fair value, which is subject to revaluation. At the beginning of May, Brookfield Renewable exercised the buy out option related to this lease liability. Refer to Note 20 – Subsequent events.
(2) 
Unamortized premiums and unamortized financing fees are amortized over the terms of the borrowing.
In March 2020, Brookfield Renewable completed a refinancing of COP 200 billion ($50 million). The debt, drawn in two tranches, bears interest at the applicable base rate plus an average margin of 2.36% and matures in March 2027.
In March 2020, Brookfield Renewable completed a refinancing totaling INR 1,460 million ($20 million) associated with a solar portfolio in India. A portion of the loan bears interest at the applicable base rate plus a margin of 1.45% and the remaining portion bears a fixed rate of 9.75%. The loans mature between 2032 to 2037.

Brookfield Renewable Partners L.P.
Q1 2020 Interim Consolidated Financial Statements and Notes
March 31, 2020
 
Page 19


9. NON-CONTROLLING INTERESTS
Brookfield Renewable`s non-controlling interests are comprised of the following:
(MILLIONS)
March 31, 2020

 
December 31, 2019

Participating non-controlling interests – in operating subsidiaries
$
7,760

 
$
8,742

General partnership interest in a holding subsidiary held by Brookfield
60

 
68

Participating non-controlling interests – in a holding subsidiary – Redeemable/Exchangeable units held by Brookfield
2,923

 
3,315

Preferred equity
551

 
597

 
$
11,294

 
$
12,722


Brookfield Renewable Partners L.P.
Q1 2020 Interim Consolidated Financial Statements and Notes
March 31, 2020
 
Page 20


Participating non-controlling interests – in operating subsidiaries
The net change in participating non-controlling interests – in operating subsidiaries is as follows:
(MILLIONS) 
Brookfield Americas Infrastructure Fund

 
Brookfield Infrastructure Fund II

 
Brookfield Infrastructure Fund III

 
Brookfield Infrastructure Fund IV

 
Canadian Hydroelectric Portfolio

 
The Catalyst Group

 
Isagen institutional investors

 
Isagen public non-controlling interests

 
Other

 
Total

As at December 31, 2018
$
900

 
$
1,929

 
$
2,469

 
$
—

 
$
276

 
$
124

 
$
2,212

 
$
15

 
$
204

 
$
8,129

Net income (loss)
—

 
(13
)
 
73

 
6

 
19

 
17

 
154

 
1

 
5

 
262

OCI
46

 
134

 
330

 
(3
)
 
61

 
(41
)
 
266

 
2

 
—

 
795

Capital contributions
—

 
—

 
2

 
159

 
268

 
—

 
—

 
(2
)
 
3

 
430

Disposal
—

 
(87
)
 
—

 
—

 
—

 
—

 
—

 
—

 
(85
)
 
(172
)
Distributions
(24
)
 
(120
)
 
(274
)
 
—

 
(1
)
 
(11
)
 
(259
)
 
(1
)
 
(16
)
 
(706
)
Other
—

 
8

 
(3
)
 
1

 
(5
)
 
—

 
2

 
(2
)
 
3

 
4

As at December 31, 2019
$
922

 
$
1,851

 
$
2,597

 
$
163

 
$
618

 
$
89

 
$
2,375

 
$
13

 
$
114

 
$
8,742

Net income (loss)
—

 
(1
)
 
14

 
4

 
9

 
7

 
41

 
—

 
9

 
83

OCI
(32
)
 
(90
)
 
(327
)
 
4

 
(46
)
 
—

 
(470
)
 
(3
)
 
(17
)
 
(981
)
Capital contributions
—

 
—

 
1

 
13

 
(6
)
 
—

 
—

 
—

 
—

 
8

Distributions
(2
)
 
(12
)
 
(26
)
 
—

 
—

 
—

 
(34
)
 
—

 
(3
)
 
(77
)
Other
—

 
—

 
(16
)
 
1

 
(1
)
 
—

 
1

 
—

 
—

 
(15
)
As at March 31, 2020
$
888

 
$
1,748

 
$
2,243

 
$
185

 
$
574

 
$
96

 
$
1,913

 
$
10

 
$
103

 
$
7,760

Interests held by third parties
75%-80%

 
43%-60%

 
23%-71%

 
75
%
 
50
%
 
25
%
 
53
%
 
0.4
%
 
20%-50%

 
 

Brookfield Renewable Partners L.P.
Q1 2020 Interim Consolidated Financial Statements and Notes
March 31, 2020
 
Page 21


General partnership interest in a holding subsidiary held by Brookfield and Participating non-controlling interests – in a holding subsidiary – Redeemable/Exchangeable units held by Brookfield
Brookfield, as the owner of the 1% general partnership interest in BRELP held by Brookfield (“GP interest”), is entitled to regular distributions plus an incentive distribution based on the amount by which quarterly distributions exceed specified target levels. To the extent that LP Unit distributions exceed $0.375 per LP Unit per quarter, the incentive is 15% of distributions above this threshold. To the extent that quarterly LP Unit distributions exceed $0.4225 per LP Unit, the incentive distribution is equal to 25% of distributions above this threshold.
As at March 31, 2020, general partnership units, and Redeemable/Exchangeable partnership units outstanding were 2,651,506 (December 31, 2019: 2,651,506) and 129,658,623 (December 31, 2019: 129,658,623), respectively.
Distributions
The composition of the distributions for the three months ended March 31 is presented in the following table:
(MILLIONS)
2020

 
2019

General partnership interest in a holding subsidiary held by Brookfield
$
1

 
$
2

Incentive distribution
16

 
13

 
17

 
15

Participating non-controlling interests – in a holding subsidiary – Redeemable/Exchangeable units held by Brookfield
72

 
68

 
$
89

 
$
83

Preferred equity
Brookfield Renewable`s preferred equity consists of Class A Preference Shares of Brookfield Renewable Power Preferred Equity Inc. ("BRP Equity") as follows:
(MILLIONS EXCEPT AS NOTED)
Shares
outstanding

 
Cumulative
distribution
rate (%)
 
Earliest
permitted
redemption
date
 
Distributions declared for the three months ended March 31
 
Carrying value as at
 
 
2020

 
2019

 
March 31, 2020

 
December 31, 2019

Series 1 (C$136)
5.45

 
3.36
 
Apr 2020
 
$
1

 
$
1

 
$
97

 
$
105

Series 2 (C$113)(1)
4.51

 
4.20
 
Apr 2020
 
1

 
1

 
79

 
86

Series 3 (C$249)
9.96

 
4.40
 
Jul 2019
 
2

 
2

 
177

 
192

Series 5 (C$103)
4.11

 
5.00
 
Apr 2018
 
1

 
1

 
73

 
79

Series 6 (C$175)
7.00

 
5.00
 
Jul 2018
 
2

 
1

 
124

 
135

 
31.04

 
 
 
 
 
$
7

 
$
6

 
$
550

 
$
597

(1) 
Dividend rate represents annualized distribution based on the most recent quarterly floating rate.
The Class A Preference Shares do not have a fixed maturity date and are not redeemable at the option of the holders. As at March 31, 2020, none of the issued Class A Preference Shares have been redeemed by BRP Equity.
Class A Preference Shares – Normal Course Issuer Bid
In July 2019, Brookfield Renewable entered into a normal course issuer bid in connection with the outstanding Class A Preference Shares for another year to July 8, 2020, or earlier should the repurchases be completed prior to such date. Under this normal course issuer bid, Brookfield Renewable is permitted to repurchase up to 10% of the total public float for each respective series of the Class A Preference Shares. Unitholders may receive a copy of the notice, free of charge, by contacting Brookfield Renewable. No shares were repurchased during the three months ended March 31, 2020.

Brookfield Renewable Partners L.P.
Q1 2020 Interim Consolidated Financial Statements and Notes
March 31, 2020
 
Page 22


10. PREFERRED LIMITED PARTNERS' EQUITY
Brookfield Renewable’s preferred limited partners’ equity comprises of Class A Preferred LP Units as follows:
(MILLIONS, EXCEPT AS NOTED)
 
Shares outstanding

 
Cumulative distribution rate (%)
 
Earliest permitted redemption date
 
Distributions declared for the three months ended March 31
 
Carrying value as at
 
 
2020

 
2019

 
March 31, 2020

 
December 31, 2019

Series 5 (C$72)
 
2.89

 
5.59
 
Apr 2018
 
$
1

 
$
1

 
$
49

 
$
49

Series 7 (C$175)
 
7.00

 
5.50
 
Jan 2021
 
2

 
2

 
128

 
128

Series 9 (C$200)
 
8.00

 
5.75
 
Jul 2021
 
2

 
2

 
147

 
147

Series 11 (C$250)
 
10.00

 
5.00
 
Apr 2022
 
2

 
2

 
187

 
187

Series 13 (C$250)
 
10.00

 
5.00
 
Apr 2023
 
2

 
2

 
196

 
196

Series 15 (C$175)
 
7.00

 
5.75
 
Apr 2024
 
2

 
1

 
126

 
126

Series 17 ($200)
 
8.00

 
5.25
 
Mar 2025
 
$
1

 
$
—

 
$
195

 
$
—

 
 
52.89

 
 
 
 
 
$
12

 
$
10

 
$
1,028

 
$
833

On February 24, 2020, Brookfield Renewable issued 8,000,000 Class A Preferred Limited Partnership Units, Series 17 (the “Series 17 Preferred Units”) at a price of $25 per unit for gross proceeds of $200 million. Brookfield Renewable incurred $5 million in related transaction costs inclusive of fees paid to underwriters. The holders of the Series 17 Preferred Units are entitled to receive a cumulative quarterly fixed distribution yielding 5.25%.
As at March 31, 2020, none of the Class A, Series 5 Preferred Limited Partnership Units have been redeemed.
In July 2019, Brookfield Renewable commenced a normal course issuer bid in connection with the outstanding Class A Preferred Limited Partnership Units. Under this normal course issuer bid, Brookfield Renewable is permitted to repurchase up to 10% of the total public float for each respective series of its Class A Preference Units. Repurchases were authorized to commence on July 9, 2019 and will terminate on July 8, 2020, or earlier should Brookfield Renewable complete its repurchases prior to such date.
11. LIMITED PARTNERS' EQUITY
Limited partners’ equity
As at March 31, 2020, 179,016,978 LP Units were outstanding (December 31, 2019: 178,977,800 LP Units) including 56,068,944 LP Units (December 31, 2019: 56,068,944 LP Units) held by Brookfield. Brookfield owns all general partnership interests in Brookfield Renewable representing a 0.01% interest.
During the three months ended March 31, 2020, 39,178 LP Units (2019: 50,499 LP Units) were issued under the distribution reinvestment plan at a total cost of $1 million (2019: $2 million).
As at March 31, 2020, Brookfield Asset Management’s direct and indirect interest of 185,727,567 LP Units and Redeemable/Exchangeable partnership units represents approximately 60% of Brookfield Renewable on a fully-exchanged basis and the remaining approximate 40% is held by public investors.
On an unexchanged basis, Brookfield holds a 31% direct limited partnership interest in Brookfield Renewable, a 42% direct interest in BRELP through the ownership of Redeemable/Exchangeable partnership units and a direct 1% GP interest in BRELP as at March 31, 2020.
In December 2019, Brookfield Renewable commenced a normal course issuer bid in connection with its LP Units. Under this normal course issuer bid Brookfield Renewable is permitted to repurchase up to 8.9 million LP Units, representing approximately 5% of the issued and outstanding LP Units, for capital management purposes. The bid will expire on December 11, 2020, or earlier should Brookfield Renewable complete its repurchases prior to such date. There were no LP units repurchased during the three months ended March 31, 2020 and 2019.

Brookfield Renewable Partners L.P.
Q1 2020 Interim Consolidated Financial Statements and Notes
March 31, 2020
 
Page 23


Distributions
The composition of the limited partners' equity distributions for the three months ended March 31 is presented in the following table:
(MILLIONS)
2020

 
2019

Brookfield
$
31

 
$
29

External LP Unitholders
68

 
64

 
$
99

 
$
93

In January 2020, Unitholder distributions were increased to $2.17 per LP Unit on an annualized basis, an increase of $0.11 per LP Unit, which took effect with the distribution payable in March 2020.
12. EQUITY-ACCOUNTED INVESTMENTS
The following are Brookfield Renewable’s equity-accounted investments for the three months ended March 31, 2020:
(MILLIONS)
 
Opening balance
$
1,889

Acquisition
12

Share of net income (loss)
(16
)
Share of other comprehensive income
(23
)
Dividends received
(28
)
Foreign exchange translation and other
(43
)
Ending balance
$
1,791

The following table summarizes gross revenues and net income of equity-accounted investments in aggregate:
(MILLIONS) 
2020

 
2019

Revenue
$
384

 
$
359

Net income
(72
)
 
110

Share of net income (loss)(1)
(16
)
 
32

(1) 
Brookfield Renewable's ownership interest in these entities ranges from 14% to 50%.
The following table summarizes gross assets and liabilities of equity-accounted investments in aggregate at 100% to Brookfield Renewable:
(MILLIONS) 
March 31, 2020

 
December 31, 2019

Current assets
$
1,110

 
$
1,102

Property, plant and equipment
16,864

 
16,256

Other assets
657

 
571

Current liabilities
1,412

 
1,279

Non-recourse borrowings
7,908

 
7,365

Other liabilities
3,016

 
2,580


Brookfield Renewable Partners L.P.
Q1 2020 Interim Consolidated Financial Statements and Notes
March 31, 2020
 
Page 24


13. CASH AND CASH EQUIVALENTS
Brookfield Renewable’s cash and cash equivalents are as follows:
(MILLIONS)
March 31, 2020

 
December 31, 2019

Cash
$
268

 
$
103

Short-term deposits
26

 
12

 
$
294

 
$
115

14. RESTRICTED CASH
Brookfield Renewable’s restricted cash is as follows:  
(MILLIONS)
March 31, 2020

 
December 31, 2019

Operations
$
122

 
$
87

Credit obligations
101

 
69

Development projects
11

 
17

Total
234

 
173

Less: non-current
(15
)
 
(19
)
Current
$
219

 
$
154

15. TRADE RECEIVABLES AND OTHER CURRENT ASSETS
Brookfield Renewable's trade receivables and other current assets are as follows:
(MILLIONS)
March 31, 2020

 
December 31, 2019

Trade receivables
$
361

 
$
406

Prepaids and other
96

 
119

Other short-term receivables
133

 
142

Current portion of contract asset
55

 
51

 
$
645

 
$
718

Brookfield Renewable receives payment monthly for invoiced PPA revenues and has no significant aged receivables as of the reporting date. Receivables from contracts with customers are reflected in Trade receivables.
16.  ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Brookfield Renewable's accounts payable and accrued liabilities are as follows:
(MILLIONS)
March 31, 2020

 
December 31, 2019

Operating accrued liabilities
$
180

 
$
237

Accounts payable
66

 
111

Interest payable on borrowings
83

 
73

Deferred consideration
40

 
60

LP Unitholders distributions, preferred limited partnership unit distributions and preferred dividends payable(1)
34

 
33

Current portion of lease liabilities
15

 
15

Other
112

 
61

 
$
530

 
$
590

(1) 
Includes amounts payable only to external LP Unitholders. Amounts payable to Brookfield are included in due to related parties.

Brookfield Renewable Partners L.P.
Q1 2020 Interim Consolidated Financial Statements and Notes
March 31, 2020
 
Page 25


17. COMMITMENTS, CONTINGENCIES AND GUARANTEES
Commitments
In the course of its operations, Brookfield Renewable and its subsidiaries have entered into agreements for the use of water, land and dams. Payment under those agreements varies with the amount of power generated. The various agreements can be renewed and are extendable up to 2089.
Together with institutional partners, Brookfield Renewable is committed to invest C$400 million in TransAlta's convertible securities in October 2020. We also agreed, subject to certain terms and conditions, to maintain an ownership of TransAlta common shares to 9% up to a price ceiling.
Brookfield Renewable, alongside institutional partners, entered into a commitment to invest approximately $37 million to acquire a 150 MW solar development portfolio in Brazil. The transaction is expected to close in the second quarter of 2020, subject to customary closing conditions, with Brookfield Renewable expected to hold a 25% interest.
Contingencies
Brookfield Renewable and its subsidiaries are subject to various legal proceedings, arbitrations and actions arising in the normal course of business. While the final outcome of such legal proceedings and actions cannot be predicted with certainty, it is the opinion of management that the resolution of such proceedings and actions will not have a material impact on Brookfield Renewable’s consolidated financial position or results of operations.
Brookfield Renewable, on behalf of Brookfield Renewable’s subsidiaries, and the subsidiaries themselves have provided letters of credit, which include, but are not limited to, guarantees for debt service reserves, capital reserves, construction completion and performance. The activity on the issued letters of credit by Brookfield Renewable can be found in Note 8 – Borrowings.
Brookfield Renewable, along with institutional investors, has provided letters of credit, which include, but are not limited to, guarantees for debt service reserves, capital reserves, construction completion and performance as it relates to interests in the Brookfield Americas Infrastructure Fund, the Brookfield Infrastructure Fund II, the Brookfield Infrastructure Fund III, and the Brookfield Infrastructure Fund IV. Brookfield Renewable’s subsidiaries have similarly provided letters of credit, which include, but are not limited to, guarantees for debt service reserves, capital reserves, construction completion and performance.
Letters of credit issued by Brookfield Renewable along with institutional investors and its subsidiaries were as at the following dates:  
(MILLIONS)
March 31, 2020

 
December 31, 2019

Brookfield Renewable along with institutional investors
$
49

 
$
50

Brookfield Renewable's subsidiaries
268

 
286

 
$
317

 
$
336

Guarantees
In the normal course of operations, Brookfield Renewable and its subsidiaries execute agreements that provide for indemnification and guarantees to third parties of transactions such as business dispositions, capital project purchases, business acquisitions, and sales and purchases of assets and services. Brookfield Renewable has also agreed to indemnify its directors and certain of its officers and employees. The nature of substantially all of the indemnification undertakings prevents Brookfield Renewable from making a reasonable estimate of the maximum potential amount that Brookfield Renewable could be required to pay third parties as the agreements do not always specify a maximum amount and the amounts are dependent upon the outcome of future contingent events, the nature and likelihood of which cannot be determined at this time. Historically, neither Brookfield Renewable nor its subsidiaries have made material payments under such indemnification agreements.

Brookfield Renewable Partners L.P.
Q1 2020 Interim Consolidated Financial Statements and Notes
March 31, 2020
 
Page 26


18. RELATED PARTY TRANSACTIONS
Brookfield Renewable`s related party transactions are recorded at the exchange amount. Brookfield Renewable`s related party transactions are primarily with Brookfield Asset Management.
Brookfield Asset Management has provided a $400 million committed unsecured revolving credit facility maturing in December 2020 and the interest rate applicable on the draws is LIBOR plus up to 2%. During the current period there were no draws on the committed unsecured revolving credit facility provided by Brookfield Asset Management. Brookfield Asset Management may from time to time place funds on deposit with Brookfield Renewable which are repayable on demand including any interest accrued. There were no funds placed on deposit with Brookfield Renewable in the first quarter of 2020 (2019: $600 million, of which $245 million was repaid during the period). There was no interest expense on the Brookfield Asset Management revolving credit facility or deposit for the three months ended March 31, 2020 (2019: $3 million).
The following table reflects the related party agreements and transactions for the three months ended March 31 in the interim consolidated statements of income:
(MILLIONS)
2020

 
2019

Revenues
 
 
 
Power purchase and revenue agreements
$
96

 
$
159

Wind levelization agreement
—

 
1

 
$
96

 
$
160

Direct operating costs
 
 
 
Energy purchases
$
—

 
$
(3
)
Energy marketing fee
—

 
(6
)
Insurance services(1)
(6
)
 
(7
)
 
$
(6
)
 
$
(16
)
Interest expense


 


Borrowings
$
—

 
$
(3
)
Contract balance accretion
(4
)
 
(2
)
 
$
(4
)
 
$
(5
)
Management service costs
$
(31
)
 
$
(21
)
(1) 
Insurance services are paid to a subsidiary of Brookfield Asset Management that brokers external insurance providers on behalf of Brookfield Renewable. The fees paid to the subsidiary of Brookfield Asset Management for the three months ended March 31, 2020 were less than $1 million (2019: less than $1 million).

Brookfield Renewable Partners L.P.
Q1 2020 Interim Consolidated Financial Statements and Notes
March 31, 2020
 
Page 27


19.  SUBSIDIARY PUBLIC ISSUERS
The following tables provide consolidated summary financial information for Brookfield Renewable, BRP Equity, and Finco:
(MILLIONS)
Brookfield
Renewable(1)

 
BRP
Equity

 
Finco

 
Holding
Entities(1)(2)

 
Other
Subsidiaries(1)(3)

 
Consolidating
adjustments(4)

 
Brookfield
Renewable
consolidated

As at March 31, 2020
 
 
 
 
 
 
 
 
 
 
 
 
 
Current assets
$
34

 
$
377

 
$
1,690

 
$
116

 
$
3,275

 
$
(3,928
)
 
$
1,564

Long-term assets
5,079

 
232

 
2

 
23,125

 
31,363

 
(28,702
)
 
31,099

Current liabilities
39

 
6

 
19

 
3,841

 
1,612

 
(3,928
)
 
1,589

Long-term liabilities
—

 
—

 
1,664

 
241

 
13,446

 
(634
)
 
14,717

Participating non-controlling interests – in operating subsidiaries
—

 
—

 
—

 
—

 
7,760

 
—

 
7,760

Participating non-controlling interests – in a holding subsidiary – Redeemable/Exchangeable units held by Brookfield
—

 
—

 
—

 
2,923

 
—

 
—

 
2,923

Preferred equity
—

 
551

 
—

 
—

 
—

 
—

 
551

Preferred limited partners' equity
1,028

 
—

 
—

 
1,039

 
—

 
(1,039
)
 
1,028

As at December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
Current assets
$
32

 
$
408

 
$
1,832

 
$
133

 
$
3,230

 
$
(4,161
)
 
$
1,474

Long-term assets
5,428

 
251

 
2

 
25,068

 
34,500

 
(31,032
)
 
34,217

Current liabilities
40

 
7

 
24

 
3,918

 
1,852

 
(4,163
)
 
1,678

Long-term liabilities
—

 
—

 
1,801

 
300

 
14,440

 
(659
)
 
15,882

Participating non-controlling interests – in operating subsidiaries
—

 
—

 
—

 
—

 
8,742

 
—

 
8,742

Participating non-controlling interests – in a holding subsidiary – Redeemable/Exchangeable units held by Brookfield
—

 
—

 
—

 
3,315

 
—

 
—

 
3,315

Preferred equity
—

 
597

 
—

 
—

 
—

 
—

 
597

Preferred limited partners' equity
833

 
—

 
—

 
844

 
—

 
(844
)
 
833

(1) 
Includes investments in subsidiaries under the equity method.
(2) 
Includes BRELP, BRP Bermuda Holdings I Limited, Brookfield BRP Holdings (Canada) Inc. and Brookfield BRP Europe Holdings Limited, together the "Holding Entities".
(3) 
Includes subsidiaries of Brookfield Renewable, other than BRP Equity, Finco and the Holding Entities.
(4) 
Includes elimination of intercompany transactions and balances necessary to present Brookfield Renewable on a consolidated basis.

Brookfield Renewable Partners L.P.
Q1 2020 Interim Consolidated Financial Statements and Notes
March 31, 2020
 
Page 28


(MILLIONS)
Brookfield
Renewable(1)

 
BRP
Equity

 
Finco

 
Holding
Entities(1)(2)

 
Other
Subsidiaries(1)(3)

 
Consolidating
adjustments(4)

 
Brookfield
Renewable
consolidated

Three months ended March 31, 2020
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
$
—

 
$
—

 
$
—

 
$
—

 
$
792

 
$
—

 
$
792

Net income (loss)
22

 
—

 
—

 
(63
)
 
332

 
(171
)
 
120

Three months ended March 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
$
—

 
$
—

 
$
—

 
$
(1
)
 
$
826

 
$
—

 
$
825

Net income (loss)
35

 
—

 
2

 
11

 
332

 
(227
)
 
153

(1) 
Includes investments in subsidiaries under the equity method.
(2) 
Includes the Holding Entities.
(3) 
Includes subsidiaries of Brookfield Renewable, other than BRP Equity, Finco, and the Holding Entities.
(4) 
Includes elimination of intercompany transactions and balances necessary to present Brookfield Renewable on a consolidated basis.
See Note 8 – Borrowings for additional details regarding the medium-term borrowings issued by Finco. See Note 9 – Non-controlling interests for additional details regarding Class A Preference Shares issued by BRP Equity.
20. SUBSEQUENT EVENTS
At the beginning of May, Brookfield Renewable exercised the option to buy out the lease on its 192 MW hydroelectric facility in Louisiana for $560 million ($420 million net to Brookfield Renewable). The transaction is expected to close in 2020.


Brookfield Renewable Partners L.P.
Q1 2020 Interim Consolidated Financial Statements and Notes
March 31, 2020
 
Page 29


GENERAL INFORMATION 
 
 
Corporate Office
73 Front Street
Fifth Floor
Hamilton, HM12
Bermuda
Tel:  (441) 294-3304
Fax: (441) 516-1988
https://bep.brookfield.com
Officers of Brookfield Renewable Partners L.P.`s Service Provider,
BRP Energy Group L.P.
Sachin Shah
Chief Executive Officer
Wyatt Hartley
Chief Financial Officer
Transfer Agent & Registrar
Computershare Trust Company of Canada
100 University Avenue
9th floor
Toronto, Ontario, M5J 2Y1
Tel  Toll Free: (800) 564-6253
Fax Toll Free: (888) 453-0330
www.computershare.com
 
Directors of the General Partner of
Brookfield Renewable Partners L.P.
Jeffrey Blidner
Eleazar de Carvalho Filho
Nancy Dorn
David Mann
Lou Maroun
Patricia Zuccotti
Stephen Westwell
Exchange Listing
NYSE: BEP (LP Units)
TSX:    BEP.UN (LP Units)
TSX:    BEP.PR.E (Preferred LP Units - Series 5)
TSX:    BEP.PR.G (Preferred LP Units - Series 7)
TSX:    BEP.PR.I (Preferred LP Units - Series 9)
TSX:    BEP.PR.K (Preferred LP Units - Series 11)
TSX:    BEP.PR.M (Preferred LP Units - Series 13)
TSX: BEP.PR.O (Preferred LP Units - Series 15)
NYSE: BEP.PR.A (Preferred LP Units - Series 17)
TSX:    BRF.PR.A (Preferred shares - Series 1)
TSX:    BRF.PR.B (Preferred shares - Series 2)
TSX:    BRF.PR.C (Preferred shares - Series 3)
TSX:    BRF.PR.E (Preferred shares - Series 5)
TSX:    BRF.PR.F (Preferred shares - Series 6)
Investor Information
Visit Brookfield Renewable online at
https://bep.brookfield.com for more information. The 2019 Annual Report and Form 20-F are also available online. For detailed and up-to-date news and information, please visit the News Release section.
Additional financial information is filed electronically with various securities regulators in United States and Canada through EDGAR at www.sec.gov and through SEDAR at www.sedar.com.
Shareholder enquiries should be directed to the Investor Relations Department at (416) 369-2616 or
enquiries@brookfieldrenewable.com  




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