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PROPERTY, PLANT AND EQUIPMENT (Tables)
 6 Months Ended
Jun. 30, 2020
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
Jun. 30, 2020
 
Valuation
Techniques
 
Significant
Unobservable Inputs
 
Relationship of Unobservable
Inputs to Fair Value
Fixed income securities and other
 
$
483

 
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
 
258

 
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
 
942

 
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

 
 
 
 
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)
 
(1,948
)
 
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)
 
92
/
  
Discounted cash flows
  
•  Future cash flows

  
•  Increases (decreases) in future cash flows increase (decrease) fair value
 
(616
)
 
 
 
 
 
 
 
 
 
•  Discount rate
 
•  Increases (decreases) in discount rate decrease (increase) fair value
The following table summarizes the key valuation metrics of the company’s investment properties:
AS AT JUN. 30, 2020
Discount Rate

 
Terminal Capitalization Rate

 
Investment Horizon (years)

Core office
 
 
 
 
 
United States
7.0
%
 
5.7
%
 
12

Canada
5.9
%
 
5.2
%
 
10

Australia
6.5
%
 
5.8
%
 
10

Europe
5.1
%
 
4.0
%
 
10

Brazil
7.9
%
 
7.4
%
 
10

Core retail
6.9
%
 
5.4
%
 
10

LP investments and other
 
 
 
 
 
LP investments office
9.7
%
 
7.3
%
 
7

LP investments retail
8.6
%
 
7.0
%
 
10

Mixed-use
7.3
%
 
5.2
%
 
10

Logistics1
5.8
%
 
n/a

 
n/a

Multifamily1
5.0
%
 
n/a

 
n/a

Triple net lease1
6.2
%
 
n/a

 
n/a

Self-storage1
5.6
%
 
n/a

 
n/a

Student housing1
4.9
%
 
n/a

 
n/a

Manufactured housing1
5.5
%
 
n/a

 
n/a

Directly held real estate properties2
5.4% – 9.0%

 
6.2
%
 
13

Other investment properties1
8.9
%
 
n/a

 
n/a

1.
Logistics, 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.
2.
We use either the discounted cash flow or the direct capitalization method when valuing our directly held real estate properties. The rates presented as the discount rate represent the overall implied capitalization rates for investment properties that are valued using the direct capitalization approach.
Disclosure of detailed information about property, plant and equipment
The company’s property, plant and equipment relates to the operating segments as shown below:
AS AT AND FOR THE SIX MONTHS ENDED JUN. 30, 2020 (MILLIONS)
Renewable
Power

 
Infrastructure

 
Real Estate

 
Private Equity
and Other

 
Total

Balance, beginning of period
$
41,595

 
$
23,772

 
$
9,729

 
$
14,168

 
$
89,264

Additions
507

 
667

 
635

 
986

 
2,795

Acquisitions through business combinations
661

 
—

 
—

 
16

 
677

Dispositions1
(43
)
 
(82
)
 
(20
)
 
(105
)
 
(250
)
Depreciation and impairment
(656
)
 
(549
)
 
(590
)
 
(863
)
 
(2,658
)
Foreign currency translation and other
(2,203
)
 
(976
)
 
(245
)
 
(337
)
 
(3,761
)
Total change
(1,734
)
 
(940
)
 
(220
)
 
(303
)
 
(3,197
)
Balance, end of period2
$
39,861

 
$
22,832

 
$
9,509

 
$
13,865

 
$
86,067


1.
Includes amounts reclassified to held for sale.
2.
Our ROU PP&E assets include $2.1 billion (December 31, 2019 – $2.2 billion) in our Infrastructure segment, $807 million (December 31, 2019 – $796 million) in our Real Estate segment, $1.3 billion (December 31, 2019 – $1.1 billion) in our Renewable Power segment and $1.4 billion (December 31, 2019 – $1.3 billion) in Private Equity and other segments, totaling $5.6 billion (December 31, 2019 – $5.4 billion) of ROU assets.