PROPERTY, PLANT AND EQUIPMENT (Tables)

12 Months Ended

Dec. 31, 2019

Property, plant and equipment [abstract]

Disclosure of significant unobservable inputs used in fair value measurement of assets [text block]

The following table summarizes the valuation techniques and significant unobservable inputs used in the fair value measurement of Level 3 financial instruments:

(MILLIONS) Type of Asset/Liability	Carrying Value Dec. 31, 2019			Valuation Techniques	Significant Unobservable Inputs	Relationship of Unobservable Inputs to Fair Value
Fixed income securities and other	$	480		Discounted cash flows	•  Future cash flows	•  Increases (decreases) in future cash flows increase (decrease) fair value
					•  Discount rate	•  Increases (decreases) in discount rate decrease (increase) fair value
Corporate bonds	275			Discounted cash flows	•  Future cash flows	•  Increases (decreases) in future cash flows increase (decrease) fair value
					•  Discount rate	•  Increases (decreases) in discount rate decrease (increase) fair value
Common shares (common shares and warrants)	802			Black-Scholes model	•  Volatility	•  Increases (decreases) in volatility increase (decreases) fair value
					•  Term to maturity	•  Increases (decreases) in term to maturity increase (decrease) fair value
Limited-life funds (subsidiary equity obligations)	(1,856		)	Discounted cash flows	•  Future cash flows	•  Increases (decreases) in future cash flows increase (decrease) fair value
					•  Discount rate	•  Increases (decreases) in discount rate decrease (increase) fair value
					•  Terminal capitalization rate	•  Increases (decreases) in terminal capitalization rate decrease (increase) fair value
					•  Investment horizon	•  Increases (decreases) in the investment horizon decrease (increase) fair value
Derivative assets/Derivative liabilities (accounts receivable/payable)	219		/	Discounted cash flows	•  Future cash flows	•  Increases (decreases) in future cash flows increase (decrease) fair value
	(686		)
					•  Discount rate	•  Increases (decreases) in discount rate decrease (increase) fair value

The significant unobservable inputs (Level 3) included in the discounted cash flow models used when determining the fair value of standing timber and agricultural assets include:

Valuation Techniques	Significant Unobservable Inputs	Relationship of Unobservable Inputs to Fair Value	Mitigating Factors
Discounted cash flow analysis	•Future cash flows	•Increases (decreases) in future cash flows increase (decrease) fair value	•    Increases (decreases) in cash flows tend to be accompanied by increases (decreases) in discount rates that may offset changes in fair value from cash flows
	•Timber / agricultural prices	•    Increases (decreases) in price increase (decrease) fair value	•    Increases (decreases) in price tend to be accompanied by increases (decreases) in discount rates that may offset changes in fair value from price
	•Discount rate /terminal capitalization rate	•    Increases (decreases) in discount rate or terminal capitalization rate decrease (increase) fair value	•    Decreases (increases) in discount rates or terminal capitalization rates tend to be accompanied by increases (decreases) in cash flows that may offset changes in fair value from rates
	•    Exit Date	•    Increases (decreases) in exit date decrease (increase) fair value	•    Increases (decreases) in the exit date tend to be the result of changing cash flow profiles that may result in higher (lower) growth in cash flows prior to stabilizing in the terminal year

The significant Level 3 inputs include:

Valuation Technique	Significant Unobservable Inputs	Relationship of Unobservable Inputs to Fair Value	Mitigating Factors
Discounted cash flow analysis1	•    Future cash flows – primarily driven by net operating income	•    Increases (decreases) in future cash flows increase (decrease) fair value	•    Increases (decreases) in cash flows tend to be accompanied by increases (decreases) in discount rates that may offset changes in fair value from cash flows
	•    Discount rate	• Increases (decreases) in discount rate decrease (increase) fair value	•    Increases (decreases) in discount rates tend to be accompanied by increases (decreases) in cash flows that may offset changes in fair value from discount rates
	•    Terminal capitalization rate	• Increases (decreases) in terminal capitalization rate decrease (increase) fair value	•    Increases (decreases) in terminal capitalization rates tend to be accompanied by increases (decreases) in cash flows that may offset changes in fair value from terminal capitalization rates
	•    Investment horizon	•    Increases (decreases) in the investment horizon decrease (increase) fair value	•    Increases (decreases) in the investment horizon tend to be the result of changing cash flow profiles that may result in higher (lower) growth in cash flows prior to stabilizing in the terminal year

1. Certain investment properties are valued using the direct capitalization method instead of a discounted cash flow model. Under the direct capitalization method, a capitalization rate is applied to estimated current year cash flows.

The following table summarizes the key valuation metrics of the company’s investment properties:

	2019					2018
AS AT DEC. 31	Discount Rate		Terminal Capitalization Rate		Investment Horizon (years)	Discount Rate		Terminal Capitalization Rate		Investment Horizon (years)
Core office
United States	7.0	%	5.6	%	12	6.9	%	5.6	%	12
Canada	5.9	%	5.2	%	10	6.0	%	5.4	%	10
Australia	6.8	%	5.9	%	10	7.0	%	6.2	%	10
Europe	4.6	%	4.1	%	11	n/a		n/a		n/a
Brazil	7.9	%	7.4	%	10	9.6	%	7.7	%	6
Core retail	6.7	%	5.4	%	10	7.1	%	6.0	%	12
LP investments and other
LP investments office	10.0	%	7.3	%	7	10.2	%	7.0	%	6
LP investments retail	8.8	%	7.3	%	10	8.9	%	7.8	%	9
Mixed-use	7.6	%	5.4	%	10	7.8	%	5.4	%	10
Logistics1	5.8	%	n/a		n/a	9.3	%	8.3	%	10
Multifamily1	5.1	%	n/a		n/a	4.8	%	n/a		n/a
Triple net lease1	6.3	%	n/a		n/a	6.3	%	n/a		n/a
Self-storage1	5.6	%	n/a		n/a	5.7	%	n/a		n/a
Student housing1	5.8	%	n/a		n/a	5.6	%	n/a		n/a
Manufactured housing1	5.5	%	n/a		n/a	5.4	%	n/a		n/a
Directly-held real estate properties2	5.2% – 9.2%		6.1	%	19	7.4	%	6.8	%	10
Other investment properties1	8.9	%	n/a		n/a	9.3	%	n/a		n/a

1. Multifamily, triple net lease, self-storage, student housing, manufactured housing and other investment properties are valued using the direct capitalization method. The rates presented as the discount rate represent the overall implied capitalization rate. The terminal capitalization rate and the investment horizon are not applicable.

Key valuation metrics of the company’s utilities, transport, energy, data infrastructure and sustainable resources assets at the end of 2019 and 2018 are summarized below.

	Utilities		Transport		Energy		Data Infrastructure		Sustainable Resources
AS AT DEC. 31	2019	2018	2019	2018	2019	2018	2019	2018	2019	2018
Discount rates	7 – 14%	7 – 14%	9 – 14%	10 – 13%	12 – 15%	12 – 15%	13 – 15%	13 – 15%	5 – 10%	5 – 8%
Terminal capitalization multiples	8x – 21x	8x – 22x	9x – 14x	9x – 14x	10x – 17x	10x – 14x	11x – 17x	10x – 11x	5x – 10x	12x – 23x
Investment horizon / Exit date (years)	10 – 20	10 – 20	10 – 20	10 – 20	5 – 10	10	10 – 11	10	3 – 21	3 – 30

Key valuation metrics of the company’s hydroelectric, wind and solar generating facilities at the end of 2019 and 2018 are summarized below.

	North America		Brazil				Colombia				Europe
AS AT DEC. 31	2019	2018	2019		2018		2019		2018		2019		2018
Discount rate
Contracted	4.6 – 4.9%	4.8 – 5.6%	8.2	%	9.0	%	9.0	%	9.6	%	3.5	%	4.0 – 4.3%
Uncontracted	6.2 – 6.4%	6.4 – 7.2%	9.5	%	10.3	%	10.3	%	10.9	%	5.3	%	5.8 – 6.1%
Terminal capitalization rate1	6.2 – 6.4%	6.1 – 7.1%	n/a		n/a		9.8	%	10.4	%	n/a		n/a
Exit date	2040	2039	2047		2047		2039		2038		2034		2033

1. Terminal capitalization rate applies only to hydroelectric assets in North America and Colombia.

the following significant unobservable inputs as part of our valuation:

Valuation Technique	Significant Unobservable Input(s)	Relationship of Unobservable Input(s) to Fair Value	Mitigating Factor(s)
Discounted cash flow models	•    Future cash flows	•    Increases (decreases) in future cash flows increase (decrease) the recoverable amount	•    Increases (decreases) in cash flows tend to be accompanied by increases (decreases) in discount rates that may offset changes in recoverable amounts from cash flows
	•    Discount rate	•    Increases (decreases) in discount rate decrease (increase) the recoverable amount	•    Increases (decreases) in discount rates tend to be accompanied by increases (decreases) in cash flows that may offset changes in recoverable amounts from discount rates
	•    Terminal capitalization rate	•    Increases (decreases) in terminal capitalization rate decrease (increase) the recoverable amount	•    Increases (decreases) in terminal capitalization rates tend to be accompanied by increases (decreases) in cash flows that may offset changes in recoverable amounts from terminal capitalization rates
	•    Exit date	•    Increases (decreases) in the exit date decrease (increase) the recoverable amount	•    Increases (decreases) in the exit date tend to be the result of changing cash flow profiles that may result in higher (lower) growth in cash flows prior to stabilizing in the terminal year

The recoverable amounts used in goodwill impairment testing are calculated using discounted cash flow models based on the following significant unobservable inputs:

Valuation Technique	Significant Unobservable Input(s)	Relationship of Unobservable Input(s) to Fair Value	Mitigating Factor(s)
Discounted cash flow models	•    Future cash flows	•    Increases (decreases) in future cash flows increase (decrease) the recoverable amount	•    Increases (decreases) in cash flows tend to be accompanied by increases (decreases) in discount rates that may offset changes in recoverable amounts from cash flows
	•    Discount rate	•    Increases (decreases) in discount rate decrease (increase) the recoverable amount	•    Increases (decreases) in discount rates tend to be accompanied by increases (decreases) in cash flows that may offset changes in recoverable amounts from discount rates
	•    Terminal capitalization rate / multiple	•    Increases (decreases) in terminal capitalization rate/multiple decrease (increase) the recoverable amount	•    Increases (decreases) in terminal capitalization rates/multiple tend to be accompanied by increases (decreases) in cash flows that may offset changes in recoverable amounts from terminal capitalization rates
	•    Exit date / terminal year of cash flows	•    Increases (decreases) in the exit date/terminal year of cash flows decrease (increase) the recoverable amount	•    Increases (decreases) in the exit date/terminal year of cash flows tend to be the result of changing cash flow profiles that may result in higher (lower) growth in cash flows prior to stabilizing in the terminal year

Disclosure of Power Generating Assets [Table Text Block]

Key assumptions on contracted generation and future power pricing are summarized below:

	Total Generation Contracted under Power Purchase Agreements				Power Prices from Long-Term Power Purchase Agreements (weighted average)		Estimates of Future Electricity Prices (weighted average)
AS AT DEC. 31, 2019 (MILLIONS)	1 – 10 years		11 – 20 years		1 – 10 years	11 – 20 years	1 – 10 years	11 – 20 years
North America (prices in US$/MWh)	47	%	17	%	95	87	62	122
Brazil (prices in R$/MWh)	68	%	33	%	295	407	273	411
Colombia (prices in COP$/MWh)	25	%	—	%	217,000	272,000	257,000	358,000
Europe (prices in €/MWh)	71	%	13	%	82	102	75	84

Disclosure of detailed information about property, plant and equipment

a) Renewable Power

Our renewable power property, plant and equipment consists of the following:

	Hydroelectric						Wind						Solar and Other						Total
AS AT AND FOR THE YEARS ENDED DEC. 31 (MILLIONS)	2019			2018			2019			2018			2019			2018			2019			2018
Cost, beginning of year	$	13,868		$	14,667		$	8,576		$	7,622		$	3,664		$	2,702		$	26,108		$	24,991
Changes in basis of accounting	83			—			321			—			3			—			407			—
Additions, net of disposals and assets reclassified as held for sale	162			189			(342		)	(21		)	280			(684		)	100			(516		)
Acquisitions through business combinations	—			—			566			1,184			742			1,784			1,308			2,968
Foreign currency translation	(14		)	(988		)	(54		)	(209		)	(35		)	(138		)	(103		)	(1,335		)
Cost, end of year	14,099			13,868			9,067			8,576			4,654			3,664			27,820			26,108
Accumulated fair value changes, beginning of year	15,416			12,176			2,079			1,053			765			51			18,260			13,280
Fair value changes	1,369			3,688			669			1,221			195			702			2,233			5,611
Dispositions and assets reclassified as held for sale	—			—			(126		)	—			(35		)	—			(161		)	—
Foreign currency translation	142			(448		)	(34		)	(195		)	25			12			133			(631		)
Accumulated fair value changes, end of year	16,927			15,416			2,588			2,079			950			765			20,465			18,260
Accumulated depreciation, beginning of year	(3,879		)	(3,564		)	(1,358		)	(1,008		)	(260		)	(109		)	(5,497		)	(4,681		)
Depreciation expenses	(532		)	(547		)	(502		)	(416		)	(245		)	(192		)	(1,279		)	(1,155		)
Dispositions and assets reclassified as held for sale	7			5			101			6			9			35			117			46
Foreign currency translation	(8		)	227			(22		)	60			(1		)	6			(31		)	293
Accumulated depreciation, end of year	(4,412		)	(3,879		)	(1,781		)	(1,358		)	(497		)	(260		)	(6,690		)	(5,497		)
Balance, end of year	$	26,614		$	25,405		$	9,874		$	9,297		$	5,107		$	4,169		$	41,595		$	38,871

c) Real Estate

	Cost					Accumulated Fair Value Changes						Accumulated Depreciation						Total
AS AT AND FOR THE YEARS ENDED DEC. 31 (MILLIONS)	2019		2018			2019			2018			2019			2018			2019			2018
Balance, beginning of year	$	7,713	$	5,854		$	1,045		$	798		$	(1,106	)	$	(873	)	$	7,652		$	5,779
Changes in basis of accounting	769		—			—			—			—			—			769			—
Additions/(dispositions)1, net of assets reclassified as held for sale	514		352			(2		)	5			37			43			549			400
Acquisitions through business combinations	785		1,748			—			—			—			—			785			1,748
Foreign currency translation	109		(241		)	—			(3		)	(15		)	27			94			(217		)
Fair value changes	—		—			323			245			—			—			323			245
Depreciation expenses	—		—			—			—			(443		)	(303		)	(443		)	(303		)
Balance, end of year	$	9,890	$	7,713		$	1,366		$	1,045		$	(1,527	)	$	(1,106	)	$	9,729		$	7,652

1. For accumulated depreciation, (additions)/dispositions.

The following table presents the changes to the carrying value of the company’s property, plant and equipment assets included in these operations:

	Cost					Accumulated Impairment						Accumulated Depreciation						Total
AS AT AND FOR THE YEARS ENDED DEC. 31 (MILLIONS)	2019		2018			2019			2018			2019			2018			2019			2018
Balance, beginning of year	$	9,027	$	4,050		$	(434	)	$	(231	)	$	(1,472	)	$	(1,086	)	$	7,121		$	2,733
Changes in basis of accounting	1,032		—			—			—			—			—			1,032			—
Additions/(dispositions)1, net of assets reclassified as held for sale	477		360			—			1			332			72			809			433
Acquisitions through business combinations	6,650		4,915			—			—			—			—			6,650			4,915
Foreign currency translation	83		(298		)	(13		)	15			(44		)	78			26			(205		)
Depreciation expenses	—		—			—			—			(1,274		)	(536		)	(1,274		)	(536		)
Impairment charges	—		—			(196		)	(219		)	—			—			(196		)	(219		)
Balance, end of year	$	17,269	$	9,027		$	(643	)	$	(434	)	$	(2,458	)	$	(1,472	)	$	14,168		$	7,121

1. For accumulated depreciation, (additions)/dispositions.

The following table presents our renewable power property, plant and equipment measured at fair value by geography:

AS AT DEC. 31 (MILLIONS)	2019		2018
North America	$	25,617	$	24,274
Colombia	7,353		6,665
Europe	3,770		3,748
Brazil	3,575		3,505
Other1	1,280		679
	$	41,595	$	38,871

1. Other refers primarily to China, India and Chile in 2019 and China, India, Chile and Uruguay in 2018.

The company’s property, plant and equipment relates to the operating segments as shown below:

	Renewable Power (a)						Infrastructure (b)						Real Estate (c)						Private Equity and Other (d)						Total
AS AT DEC. 31 (MILLIONS)	2019			2018			2019			2018			2019			2018			2019			2018			2019			2018
Costs	$	27,820		$	26,108		$	22,454		$	12,059		$	9,890		$	7,713		$	17,269		$	9,027		$	77,433		$	54,907
Accumulated fair value changes	20,465			18,260			3,777			3,480			1,366			1,045			(643		)	(434		)	24,965			22,351
Accumulated depreciation	(6,690		)	(5,497		)	(2,459		)	(1,889		)	(1,527		)	(1,106		)	(2,458		)	(1,472		)	(13,134		)	(9,964		)
Total1,2	$	41,595		$	38,871		$	23,772		$	13,650		$	9,729		$	7,652		$	14,168		$	7,121		$	89,264		$	67,294

1. Includes amounts reclassified to held for sale.

2. As at December 31, 2019, the total includes $3.7 billion of property, plant and equipment leased to third parties as operating leases. Our ROU PP&E assets include $2.2 billion in our Infrastructure segment, $796 million in our Real Estate segment, $1.1 billion in our Renewable Power segment and $1.3 billion in Private Equity and other segments, totaling $5.4 billion of ROU assets.

b) Infrastructure

Our infrastructure property, plant and equipment consists of the following:

	Utilities						Transport						Energy						Data Infrastructure					Sustainable Resources and Other						Total
AS AT AND FOR THE YEARS ENDED DEC. 31 (MILLIONS)	2019			2018			2019			2018			2019			2018			2019			2018		2019			2018			2019			2018
Cost, beginning of year	$	4,020		$	3,473		$	2,485		$	2,655		$	4,681		$	2,630		$	444		$	—	$	429		$	495		$	12,059		$	9,253
Changes in basis of accounting	21			—			356			—			197			—			633			—		—			—			1,207			—
Additions, net of disposals and assets reclassified as held for sale	7			422			171			73			164			146			(44		)	4		(25		)	(2		)	273			643
Acquisitions through business combinations	—			394			5,284			—			3,332			2,111			94			440		—			—			8,710			2,945
Foreign currency translation	138			(269		)	9			(243		)	69			(206		)	4			—		(15		)	(64		)	205			(782		)
Cost, end of year	4,186			4,020			8,305			2,485			8,443			4,681			1,131			444		389			429			22,454			12,059
Accumulated fair value changes, beginning of year	1,401			1,256			810			873			822			629			—			—		447			514			3,480			3,272
Disposition and assets reclassified as held for sale	(416		)	—			—			—			—			—			—			—		(37		)	—			(453		)	—
Fair value changes	347			218			45			18			317			224			—			—		6			12			715			472
Foreign currency translation	36			(73		)	(6		)	(81		)	5			(31		)	—			—		—			(79		)	35			(264		)
Accumulated fair value changes, end of year	1,368			1,401			849			810			1,144			822			—			—		416			447			3,777			3,480
Accumulated depreciation, beginning of year	(613		)	(509		)	(744		)	(687		)	(492		)	(383		)	—			—		(40		)	(43		)	(1,889		)	(1,622		)
Depreciation expenses	(171		)	(148		)	(178		)	(147		)	(328		)	(134		)	(87		)	—		(10		)	(8		)	(774		)	(437		)
Dispositions and assets reclassified as held for sale	204			5			(25		)	22			46			7			—			—		7			4			232			38
Foreign currency translation	(16		)	39			(3		)	68			(10		)	18			(1		)	—		2			7			(28		)	132
Accumulated depreciation, end of year	(596		)	(613		)	(950		)	(744		)	(784		)	(492		)	(88		)	—		(41		)	(40		)	(2,459		)	(1,889		)
Balance, end of year	$	4,958		$	4,808		$	8,204		$	2,551		$	8,803		$	5,011		$	1,043		$	444	$	764		$	836		$	23,772		$	13,650