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POST-EMPLOYMENT BENEFITS (Tables)
 12 Months Ended
Dec. 31, 2019
Employee Benefits [Abstract]  
Disclosure of net defined benefit liability (asset)
The following table summarizes the defined benefit obligation and the fair value of plan assets by geography as at December 31, 2019:
(US$ MILLIONS)
 
United States of America
 
Canada
 
Other
 
Total
Defined benefit pension plan
 
 
 
 
 
 
 
 
Defined benefit obligation
 
$
2,290

 
$
30

 
$
607

 
$
2,927

Fair value of plan assets
 
(1,763
)
 
(4
)
 
(427
)
 
(2,194
)
Net liability
 
$
527

 
$
26

 
$
180

 
$
733

 
 
 
 
 
 
 
 
 
Post-retirement plan - net liability
 
 
 
 
 
 
 
 
Defined benefit obligation at end of year
 
$
62

 
$
28

 
$
16

 
$
106

Fair value of plans assets
 
(4
)
 
—

 
—

 
(4
)
Net liability
 
$
58

 
$
28

 
$
16

 
$
102

The following table summarizes the defined benefit obligation and the fair value of plan assets by geography as at December 31, 2018:
(US$ MILLIONS)
 
United States of America
 
Canada
 
Other
 
Total
Defined benefit pension plan
 
 
 
 
 
 
 
 
Defined benefit obligation
 
$
1,573

 
$
4

 
$
460

 
$
2,037

Fair value of plan assets
 
(1,211
)
 
(3
)
 
(328
)
 
(1,542
)
Net liability
 
$
362

 
$
1

 
$
132

 
$
495

 
 
 
 
 
 
 
 
 
Post-retirement plan - net liability
 
 
 
 
 
 
 
 
Defined benefit obligation at end of year
 
$
49

 
$
12

 
$
7

 
$
68

Amounts recognized in respect of these defined benefit and post-retirement plans during the year are as follows:
 
 
Defined benefit pension plan
 
Post-retirement
plan
(US$ MILLIONS)
 
2019
 
2018
 
2019
 
2018
Amounts recognized in profit and loss
 
 
 
 
 
 
 
 
Current service cost
 
$
30

 
$
11

 
$
1

 
$
—

Net interest expense
 
20

 
6

 
3

 
2

Administrative expense
 
9

 
7

 
—

 
—

Total expense recognized in profit and loss
 
$
59

 
$
24

 
$
4

 
$
2

 
 
 
 
 
 
 
 
 
Amounts recognized in other comprehensive income
 
 
 
 
 
 
 
 
Return on plan assets (excluding amounts included in net interest expense)
 
$
(241
)
 
$
113

 
$
—

 
$
—

Actuarial gains and losses arising from changes in demographic assumptions
 
(14
)
 
(4
)
 
1

 
—

Actuarial gains and losses arising from changes in financial assumptions
 
337

 
(39
)
 
15

 
(2
)
Actuarial gains and losses arising from experience adjustments
 
25

 
2

 
(1
)
 
—

Total expense (gain) recognized in other comprehensive income
 
$
107

 
$
72

 
$
15

 
$
(2
)
Total expense (gain) recognized in comprehensive income
 
$
166

 
$
96

 
$
19

 
$
—

The following table shows the changes in the present value of the defined benefit obligation and the fair value of plan assets as at December 31, 2019:
 
 
Defined benefit pension plan
 
Post-retirement
plan
(US$ MILLIONS)
 
2019
 
2018
 
2019
 
2018
Changes in defined benefit obligation
 
 
 
 
 
 
 
 
Defined benefit obligation at beginning of year
 
$
2,037

 
$
164

 
$
68

 
$
28

Defined benefit obligation through business combinations
 
514

 
1,923

 
25

 
45

Service cost
 
30

 
10

 
1

 
1

Interest cost
 
88

 
35

 
3

 
2

Participant contributions
 
3

 
1

 
3

 
1

Insurance premiums for risk benefits
 
—

 
(2
)
 
—

 
—

Foreign currency exchange differences
 
20

 
(12
)
 
—

 
(2
)
Actuarial gain due to financial assumption changes
 
337

 
(39
)
 
15

 
(2
)
Actuarial gain due to demographic assumption changes
 
(14
)
 
(3
)
 
1

 
—

Actuarial experience adjustments
 
25

 
2

 
(1
)
 
—

Benefits paid from plan assets
 
(91
)
 
(36
)
 
(2
)
 
(1
)
Benefits paid from employer
 
(22
)
 
(6
)
 
(7
)
 
(4
)
Defined benefit obligation at end of year
 
$
2,927

 
$
2,037

 
$
106

 
$
68

 
 
 
 
 
 
 
 
 
Changes in fair value of plan assets
 
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
 
$
(1,542
)
 
$
(126
)
 
$
—

 
$
—

Fair value of plan assets through business combinations
 
(398
)
 
(1,438
)
 
(4
)
 
—

Interest income
 
(68
)
 
(29
)
 
—

 
—

Return on plan assets (excluding interest income)
 
(241
)
 
112

 
—

 
—

Foreign currency exchange differences
 
(9
)
 
10

 
(2
)
 
—

Employer contributions
 
(51
)
 
(118
)
 
(4
)
 
(1
)
Participant contributions
 
(3
)
 
(2
)
 
(3
)
 
(1
)
Employer direct settlements
 
(1
)
 
(1
)
 
—

 
1

Benefits paid from plan assets
 
91

 
41

 
2

 
2

Benefits paid from employer
 
19

 
1

 
7

 
(1
)
Administrative expenses paid from plan assets
 
9

 
7

 
—

 
—

Insurance premiums for risk benefits
 
—

 
1

 
—

 
—

Fair value of plan assets at year end
 
$
(2,194
)
 
$
(1,542
)
 
$
(4
)
 
$
—

Net liability at end of year
 
$
733

 
$
495

 
$
102

 
$
68
Disclosure of fair value of plan assets
The following table summarizes the fair value of plan assets by category as at December 31, 2019:
(US$ MILLIONS)
 
Level 1
 
Level 2 (1)
 
Level 3 (2)
 
Total
Cash and cash equivalents
 
$
41

 
$
—

 
$
—

 
$
41

Equity instruments
 
1,185

 
243

 
—

 
1,428

Debt instruments
 
28

 
406

 
149

 
583

Real Estate
 
—

 
8

 
—

 
8

Derivatives
 
—

 
—

 
—

 
—

Investment funds
 
—

 
106

 
—

 
106

Fixed insurance contracts
 
14

 
—

 
18

 
32

Total plan assets
 
$
1,268

 
$
763

 
$
167

 
$
2,198

____________________________________
(1) 
Level 2 assets represent the net asset value of the underlying assets held by the investment fund. The assets are valued by the fund administrator.
(2)
Level 3 assets consist of insurance rights and equity and debt instruments pooled in an actively invested collective profit sharing arrangement with other third-party employers. The assets are valued using non-observable inputs by the plan administrator.
Disclosure of defined benefit plans and significant assumptions
The significant actuarial assumptions adopted are as follows:
Defined benefit plan
Discount rate
0.2% to 3.6%
Rate of compensation increase
1.3% to 3.6%
Post-retirement plan
Discount rate
0.2% to 4.7%
Health care cost trend on covered charges:
 
Immediate trend rate
0.2% to 7.3%
Ultimate trend rate
0.2% to 5.8%
Disclosure of sensitivity analysis for actuarial assumptions
The following table presents a sensitivity analysis of each assumption with the related impact on these liabilities as at December 31, 2019:
(US$ MILLIONS)
 
Percentage increase
 
Impact on liability
 
Percentage decrease
 
Impact on liability
Defined benefit pension plan
 
 
 
 
 
 
 
 
Discount rate
 
0.25% to 1%
 
$
(217
)
 
0.25% to 1%
 
$
251

Rate of compensation increase
 
0.25% to 1%
 
34

 
0.25% to 1%
 
(31
)
 
 
 
 
 
 
 
 
 
Post-retirement plan
 
 
 
 
 
 
 
 
Discount rate
 
0.25% to 1%
 
$
(28
)
 
0.25% to 1%
 
$
33

Health care cost trend rates
 
0.5% to 1%
 
3

 
0.5% to 1%
 
(2
)
Disclosure of future planned benefit payments under post-employment benefit plans
The following table summarizes future planned benefit payments under our defined benefit and post-retirement plans as at December 31, 2019:
(US$ MILLIONS)
 
Defined benefit pension plan
 
Post-retirement plan
 
Total
2020
 
$
120

 
$
7

 
$
127

2021
 
126

 
7

 
133

2022
 
129

 
7

 
136

2023
 
132

 
7

 
139

2024
 
137

 
7

 
144

Thereafter
 
754

 
70

 
824

Total
 
$
1,398

 
$
105

 
$
1,503