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SUBSIDIARY PUBLIC ISSUERS AND FINANCE SUBSIDIARY
 12 Months Ended
Dec. 31, 2017
Interests In Other Entities [Abstract]  
SUBSIDIARY PUBLIC ISSUERS AND FINANCE SUBSIDIARY
SUBSIDIARIES
The following table presents the details of the company’s subsidiaries with significant non-controlling interests:
 
Jurisdiction of Formation
 
Ownership Interest Held by Non-Controlling Interests1,2
AS AT DEC. 31
 
2017

 
2016

Brookfield Property Partners L.P. (“BPY”)
Bermuda
 
30.6
%
 
31.2
%
Brookfield Renewable Partners L.P. (“BEP”)
Bermuda
 
39.8
%
 
38.7
%
Brookfield Infrastructure Partners L.P. (“BIP”)
Bermuda
 
70.1
%
 
70.2
%
Brookfield Business Partners L.P. (“BBU”)3
Bermuda
 
32.0
%
 
25.1
%
1.
Control and associated voting rights of the limited partnerships (BPY, BEP, BIP and BBU) resides with their respective general partners which are wholly owned subsidiaries of the company. The company’s general partner interest is entitled to earn base management fees and incentive payments in the form of incentive distribution rights or performance fees
2.
The company’s ownership interest in BPY, BEP, BIP and BBU includes a combination of redemption-exchange units (REUs), Class A limited partnership units, special limited partnership units and general partnership units in each subsidiary, where applicable. Each of BPY, BEP, BIP and BBU’s partnership capital includes its Class A limited partnership units whereas REUs and general partnership units are considered non-controlling interests for the respective partnerships. REUs share the same economic attributes in all respects except for the redemption right attached thereto. The REUs and general partnership units participate in earnings and distributions on a per unit basis equivalent to the per unit participation of the Class A limited partnership units of the subsidiary
3.
BBU was formed during 2016 through a special dividend of approximately 19 million limited partnership units, equivalent to a 20.7% economic interest in BBU, to the shareholders of the company’s Class A shares and Class B shares
During 2017, BBU and BEP completed equity issuances in which the company participated. The BBU and BEP issuances decreased the company’s interest by 6.9% and 1.1%, respectively, as the company participated at a lower interest than its ownership prior to the issuances.
The table below presents the exchanges on which the company’s subsidiaries with significant non-controlling interests were publicly listed as of December 31, 2017:
 
TSX
 
NYSE
 
Nasdaq
BPY1
BPY.UN
 
N/A
 
BPY
BEP
BEP.UN
 
BEP
 
N/A
BIP
BIP.UN
 
BIP
 
N/A
BBU
BBU.UN
 
BBU
 
N/A

1.
BPY voluntarily moved its U.S. stock exchange listing from the New York Stock Exchange to the Nasdaq Stock Market effective November 16, 2017
The following table outlines the composition of accumulated non-controlling interests presented within the company’s consolidated financial statements:
AS AT DEC. 31
(MILLIONS)
2017

 
2016

BPY
$
19,736

 
$
18,790

BEP
10,139

 
8,879

BIP
11,376

 
7,710

BBU
4,000

 
2,173

Individually immaterial subsidiaries with non-controlling interests
6,377

 
5,683

 
$
51,628

 
$
43,235


All publicly listed entities are subject to independent governance. Accordingly, the company has no direct access to the assets of these subsidiaries. Summarized financial information with respect to the company’s subsidiaries with significant non-controlling interests are set out below. The summarized financial information represents amounts before intra-group eliminations:
 
BPY
 
BEP
 
BIP
 
BBU
AS AT AND FOR THE YEARS ENDED DEC. 31
(MILLIONS)
2017

 
2016

 
2017

 
2016

 
2017

 
2016

 
2017

 
2016

Current assets
$
3,912

 
$
4,198

 
$
1,666

 
$
907

 
$
1,512

 
$
1,632

 
$
6,433

 
$
4,076

Non-current assets
80,435

 
73,929

 
29,238

 
26,830

 
27,965

 
19,643

 
9,371

 
4,117

Current liabilities
(11,829
)
 
(8,276
)
 
(2,514
)
 
(1,733
)
 
(1,564
)
 
(1,515
)
 
(5,690
)
 
(2,556
)
Non-current liabilities
(37,394
)
 
(35,690
)
 
(14,108
)
 
(13,332
)
 
(14,439
)
 
(10,116
)
 
(4,050
)
 
(1,599
)
Non-controlling interests
(19,736
)
 
(18,790
)
 
(10,139
)
 
(8,879
)
 
(11,376
)
 
(7,710
)
 
(4,000
)
 
(2,173
)
Equity attributable to Brookfield
$
15,388

 
$
15,371

 
$
4,143

 
$
3,793

 
$
2,098

 
$
1,934

 
$
2,064

 
$
1,865

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
$
6,135

 
$
5,352

 
$
2,625

 
$
2,516

 
$
3,535

 
$
2,115

 
$
22,823

 
$
7,960

Net income attributable to:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-controlling interests
$
2,234

 
$
1,501

 
$
103

 
$
97

 
$
569

 
$
408

 
$
296

 
$
(170
)
Shareholders
234

 
1,216

 
(52
)
 
(57
)
 
5

 
120

 
(81
)
 
(32
)
 
$
2,468

 
$
2,717

 
$
51

 
$
40

 
$
574

 
$
528

 
$
215

 
$
(202
)
Other comprehensive income (loss) attributable to:
 
 
 
 
 
 
 
 


 
 
 
 
 
 
Non-controlling interests
$
532

 
$
(36
)
 
$
786

 
$
915

 
$
269

 
$
426

 
$
64

 
$
101

Shareholders
348

 
(210
)
 
564

 
414

 
54

 
150

 
45

 
32

 
$
880

 
$
(246
)
 
$
1,350

 
$
1,329

 
$
323

 
$
576

 
$
109

 
$
133


The summarized cash flows of the company’s subsidiaries with material non-controlling interests are as follows:
 
BPY
 
BEP
 
BIP
 
BBU
FOR THE YEARS ENDED DEC. 31
(MILLIONS)
2017

 
2016

 
2017

 
2016

 
2017

 
2016

 
2017

 
2016

Cash flows from (used in):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating activities
$
639

 
$
745

 
$
928

 
$
632

 
$
1,481

 
$
753

 
$
290

 
$
229

Financing activities
1,248

 
2,906

 
(27
)
 
2,709

 
3,814

 
899

 
1,353

 
586

Investing activities
(1,886
)
 
(3,234
)
 
(328
)
 
(3,191
)
 
(5,721
)
 
(1,058
)
 
(1,595
)
 
(96
)
Distributions paid to non-controlling interests in common equity
$
255

 
$
250

 
$
227

 
$
201

 
$
489

 
$
383

 
$
9

 
$
2

SUBSIDIARY PUBLIC ISSUERS AND FINANCE SUBSIDIARY
Brookfield Finance Inc. (“BFI”) is an indirect 100% owned subsidiary of the corporation that may offer and sell debt securities. Any debt securities issued by BFI are fully and unconditionally guaranteed by the company. BFI issued $500 million of 4.25% notes due in 2026 and $550 million of 4.70% notes due in 2047 on May 25, 2016 and September 14, 2017, respectively.
Brookfield Finance LLC (“BFL”) is a Delaware limited liability company formed on February 6, 2017 and an indirect 100% owned subsidiary of the corporation. BFL is a “finance subsidiary,” as defined in Rule 3-10 of Regulation S-X. Any debt securities issued by BFL are fully and unconditionally guaranteed by the corporation. On March 10, 2017, BFL issued $750 million of 4.00% notes due 2024. BFL has no independent activities, assets or operations other than in connection with any debt securities it may issue.
Brookfield Investments Corporation (“BIC”) is an investment company that holds investments in the property and forest products sectors, as well as a portfolio of preferred shares issued by the corporation’s subsidiaries. The corporation provided a full and unconditional guarantee of the Class 1 Senior Preferred Shares, Series A issued by BIC. As at December 31, 2017, C$42 million of these senior preferred shares were held by third-party shareholders and are retractable at the option of the holder.
The following tables contain summarized financial information of the corporation, BFI, BFL, BIC and non-guarantor subsidiaries:
AS AT AND FOR THE YEAR ENDED DEC. 31, 2017
(MILLIONS)
The  corporation1 

 
BFI 

 
BFL

 
BIC

 
Subsidiaries of the corporation 
other than BFI, BFL and BIC2 

 
Consolidating 
Adjustments3  

 
The Company 
Consolidated 

Revenues
$
168

 
$
30

 
$
43

 
$
22

 
$
44,908

 
$
(4,385
)
 
$
40,786

Net income attributable to shareholders
1,462

 
—

 
—

 
59

 
2,019

 
(2,078
)
 
1,462

Total assets
53,688

 
1,060

 
757

 
3,761

 
206,907

 
(73,453
)
 
192,720

Total liabilities
25,444

 
1,042

 
756

 
2,309

 
113,336

 
(30,039
)
 
112,848

 
 
 
 
 
 
 
 
 
 
 
 
 
 
AS AT AND FOR THE YEAR ENDED DEC. 31, 2016
(MILLIONS)
The  corporation1 

 
BFI 

 
BFL

 
BIC

 
Subsidiaries of the corporation 
other than BFI, BFL and BIC2 

 
Consolidating 
Adjustments3  

 
The Company 
Consolidated 

Revenues
$
148

 
$
13

 
$
—

 
$
3

 
$
27,968

 
$
(3,721
)
 
$
24,411

Net income attributable to shareholders
1,651

 
—

 
—

 
66

 
1,854

 
(1,920
)
 
1,651

Total assets
47,505

 
507

 
—

 
2,974

 
169,033

 
(60,193
)
 
159,826

Total liabilities
21,052

 
497

 
—

 
1,411

 
87,252

 
(20,074
)
 
90,138


1.
This column accounts for investments in all subsidiaries of the corporation under the equity method
2.
This column accounts for investments in all subsidiaries of the corporation other than BFI, BFL and BIC on a combined basis
3.
This column includes the necessary amounts to present the company on a consolidated basis