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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)
 12 Months Ended
Dec. 31, 2021
Fair Value Measurement [Abstract]  
Financial assets classification The following table provides the details of financial instruments and their associated financial instrument classifications as at December 31, 2021:
(US$ MILLIONS)
MEASUREMENT BASISFVTPLFVOCIAmortized costTotal
Financial assets    
Cash and cash equivalents$— $— $2,588 $2,588 
Accounts and other receivable, net (current and non-current)— — 5,638 5,638 
Other assets (current and non-current) (1)
— — 478 478 
Financial assets (current and non-current) (2)
518 6,243 1,789 8,550 
Total (3)
$518 $6,243 $10,493 $17,254 
Financial liabilities    
Accounts payable and other (2) (4)
$640 $220 $10,847 $11,707 
Borrowings (current and non-current)— — 29,076 29,076 
Total$640 $220 $39,923 $40,783 
____________________________________
(1)Excludes prepayments, subrogation recoverable, deferred policy acquisition costs and other assets of $1,369 million.
(2)Refer to Hedging Activities in Note 4 (a) below.
(3)Total financial assets include $5,200 million of assets pledged as collateral.
(4)Includes derivative liabilities, and excludes provisions, decommissioning liabilities, deferred revenue, unearned premiums reserve, work in progress, post-employment benefits and various tax and duties of $7,929 million.
The following table provides the allocation of financial instruments and their associated financial instrument classifications as at December 31, 2020:
(US$ MILLIONS)
MEASUREMENT BASISFVTPLFVOCIAmortized costTotal
Financial assets    
Cash and cash equivalents$— $— $2,743 $2,743 
Accounts and other receivable, net (current and non-current) — — 4,989 4,989 
Other assets (current and non-current) (1)
— — 536 536 
Financial assets (current and non-current) (2)
933 5,561 2,302 8,796 
Total (3)
$933 $5,561 $10,570 $17,064 
Financial liabilities    
Accounts payable and other (4)
$435 $370 $9,063 $9,868 
Borrowings (current and non-current)— — 23,776 23,776 
Total$435 $370 $32,839 $33,644 
____________________________________
(1)Excludes prepayments, subrogation recoverable, deferred policy acquisition costs and other assets of $1,048 million.
(2)Refer to Hedging Activities in Note 4 (a) below.
(3)Total financial assets include $4,704 million of assets pledged as collateral.
(4)Excludes provisions, decommissioning liabilities, deferred revenue, work in progress, post-employment benefits and various tax and duties of $8,064 million.
(US$ MILLIONS)20212020
Current  
Marketable securities$1,262 $995 
Restricted cash224 833 
Derivative contracts179 167 
Loans and notes receivable211 195 
Other financial assets (1)
138 385 
Total current$2,014 $2,575 
Non-current  
Marketable securities$3,601 $3,535 
Restricted cash297 272 
Derivative contracts123 110 
Loans and notes receivable936 1,002 
Other financial assets (1)
1,579 1,302 
Total non-current$6,536 $6,221 
____________________________________
(1)Other financial assets includes secured debentures, asset backed securities and preferred shares in the partnership’s business services segment.
(US$ MILLIONS)20212020
Current, net$4,945 $4,306 
Non-current, net
Accounts receivable60 60 
Retainer on customer contract61 68 
Billing rights572 555 
Total non-current, net$693 $683 
Total $5,638 $4,989 
The amount of accounts and other receivables written down for bad debts was as follows:
(US$ MILLIONS)202120202019
Loss allowance - beginning$156 $86 $45 
Add: increase in allowance54 116 53 
Deduct: bad debt write offs(47)(55)(23)
Foreign currency translation and other(6)9 11 
Loss allowance - ending$157 $156 $86 
Financial liabilities classification The following table provides the details of financial instruments and their associated financial instrument classifications as at December 31, 2021:
(US$ MILLIONS)
MEASUREMENT BASISFVTPLFVOCIAmortized costTotal
Financial assets    
Cash and cash equivalents$— $— $2,588 $2,588 
Accounts and other receivable, net (current and non-current)— — 5,638 5,638 
Other assets (current and non-current) (1)
— — 478 478 
Financial assets (current and non-current) (2)
518 6,243 1,789 8,550 
Total (3)
$518 $6,243 $10,493 $17,254 
Financial liabilities    
Accounts payable and other (2) (4)
$640 $220 $10,847 $11,707 
Borrowings (current and non-current)— — 29,076 29,076 
Total$640 $220 $39,923 $40,783 
____________________________________
(1)Excludes prepayments, subrogation recoverable, deferred policy acquisition costs and other assets of $1,369 million.
(2)Refer to Hedging Activities in Note 4 (a) below.
(3)Total financial assets include $5,200 million of assets pledged as collateral.
(4)Includes derivative liabilities, and excludes provisions, decommissioning liabilities, deferred revenue, unearned premiums reserve, work in progress, post-employment benefits and various tax and duties of $7,929 million.
The following table provides the allocation of financial instruments and their associated financial instrument classifications as at December 31, 2020:
(US$ MILLIONS)
MEASUREMENT BASISFVTPLFVOCIAmortized costTotal
Financial assets    
Cash and cash equivalents$— $— $2,743 $2,743 
Accounts and other receivable, net (current and non-current) — — 4,989 4,989 
Other assets (current and non-current) (1)
— — 536 536 
Financial assets (current and non-current) (2)
933 5,561 2,302 8,796 
Total (3)
$933 $5,561 $10,570 $17,064 
Financial liabilities    
Accounts payable and other (4)
$435 $370 $9,063 $9,868 
Borrowings (current and non-current)— — 23,776 23,776 
Total$435 $370 $32,839 $33,644 
____________________________________
(1)Excludes prepayments, subrogation recoverable, deferred policy acquisition costs and other assets of $1,048 million.
(2)Refer to Hedging Activities in Note 4 (a) below.
(3)Total financial assets include $4,704 million of assets pledged as collateral.
(4)Excludes provisions, decommissioning liabilities, deferred revenue, work in progress, post-employment benefits and various tax and duties of $8,064 million.
Carrying and fair values of financial assets The following table categorizes financial assets and liabilities, which are carried at fair value, based upon the level of input as at December 31, 2021 and 2020:
 20212020
(US$ MILLIONS)Level 1Level 2Level 3Level 1Level 2Level 3
Financial assets      
Common shares$865 $— $— $481 $— $— 
Corporate and government bonds43 3,956 — — 4,049 — 
Derivative assets2 300 — 46 231 — 
Other financial assets (1)
586 712 297 775 571 341 
$1,496 $4,968 $297 $1,302 $4,851 $341 
Financial liabilities      
Derivative liabilities$14 $348 $19 $72 $722 $— 
Other financial liabilities (2)
— — 479 — — 11 
$14 $348 $498 $72 $722 $11 
____________________________________
(1)Level 1 other financial assets are primarily preferred shares. Level 2 other financial assets are primarily asset backed securities.
(2)Includes $411 million (2020: $nil) of contingent consideration payable between 2022 and 2024 in relation to the acquisition of subsidiaries. Refer to Note 3 for further information.
    The following table summarizes the valuation techniques and key inputs used in the fair value measurement of Level 2 financial instruments:
(US$ MILLIONS)
Type of asset/liabilityCarrying value December 31, 2021Carrying value December 31, 2020Valuation technique(s) and key input(s)
Corporate and government bonds$3,956 $4,049 Fair value of bonds are obtained primarily from industry standard pricing services utilizing market observable inputs. Fair value is assessed by analyzing available market information through processes such as benchmark curves, benchmarking of like securities and quotes from market participants. The primary inputs used in determining fair value of bonds and debentures are interest rate curves and credit spreads.
Derivative assets$300 $231 Fair value of derivative contracts incorporates quoted market prices, or in their absence internal valuation models corroborated with observable market data; and for foreign exchange, interest rate, and commodity derivatives, observable forward exchange rates, current interest rates, and commodity prices, respectively, at the end of the reporting period.
Other financial assets$712 $571 Other financial assets represents amounts from asset backed securities where values are obtained from industry standard pricing services utilizing market observable inputs. Fair value is assessed by analyzing available market information through processes such as benchmark curves, benchmarking of like securities and quotes from market participants. The primary inputs used in determining fair value are interest rate curves and credit spreads.
Derivative liabilities$348 $722 Fair value of derivative contracts incorporates quoted market prices, or in their absence internal valuation models corroborated with observable market data; and for foreign exchange, interest rate, and commodity derivatives, observable forward exchange rates, current interest rates, and commodity prices, respectively, at the end of the reporting period.
Carrying and fair values of financial liabilities The following table categorizes financial assets and liabilities, which are carried at fair value, based upon the level of input as at December 31, 2021 and 2020:
 20212020
(US$ MILLIONS)Level 1Level 2Level 3Level 1Level 2Level 3
Financial assets      
Common shares$865 $— $— $481 $— $— 
Corporate and government bonds43 3,956 — — 4,049 — 
Derivative assets2 300 — 46 231 — 
Other financial assets (1)
586 712 297 775 571 341 
$1,496 $4,968 $297 $1,302 $4,851 $341 
Financial liabilities      
Derivative liabilities$14 $348 $19 $72 $722 $— 
Other financial liabilities (2)
— — 479 — — 11 
$14 $348 $498 $72 $722 $11 
____________________________________
(1)Level 1 other financial assets are primarily preferred shares. Level 2 other financial assets are primarily asset backed securities.
(2)Includes $411 million (2020: $nil) of contingent consideration payable between 2022 and 2024 in relation to the acquisition of subsidiaries. Refer to Note 3 for further information.
    The following table summarizes the valuation techniques and key inputs used in the fair value measurement of Level 2 financial instruments:
(US$ MILLIONS)
Type of asset/liabilityCarrying value December 31, 2021Carrying value December 31, 2020Valuation technique(s) and key input(s)
Corporate and government bonds$3,956 $4,049 Fair value of bonds are obtained primarily from industry standard pricing services utilizing market observable inputs. Fair value is assessed by analyzing available market information through processes such as benchmark curves, benchmarking of like securities and quotes from market participants. The primary inputs used in determining fair value of bonds and debentures are interest rate curves and credit spreads.
Derivative assets$300 $231 Fair value of derivative contracts incorporates quoted market prices, or in their absence internal valuation models corroborated with observable market data; and for foreign exchange, interest rate, and commodity derivatives, observable forward exchange rates, current interest rates, and commodity prices, respectively, at the end of the reporting period.
Other financial assets$712 $571 Other financial assets represents amounts from asset backed securities where values are obtained from industry standard pricing services utilizing market observable inputs. Fair value is assessed by analyzing available market information through processes such as benchmark curves, benchmarking of like securities and quotes from market participants. The primary inputs used in determining fair value are interest rate curves and credit spreads.
Derivative liabilities$348 $722 Fair value of derivative contracts incorporates quoted market prices, or in their absence internal valuation models corroborated with observable market data; and for foreign exchange, interest rate, and commodity derivatives, observable forward exchange rates, current interest rates, and commodity prices, respectively, at the end of the reporting period.
Schedule of significant unobservable inputs used and change in balance of financial assets The following table summarizes the valuation techniques and significant unobservable inputs used in the fair value measurement of Level 3 financial instruments:
(US$ MILLIONS)
Type of asset/liabilityCarrying value December 31, 2021Carrying value December 31, 2020Valuation technique(s)Significant unobservable input(s)Relationship of unobservable input(s) to fair value
Other financial assets - secured debentures$144 $254 Discounted cash flowsCash flowsIncreases (decreases) in future cash flows increase (decrease) fair value
Other financial assets - equity instruments designated as measured at FVOCI$143 $77 Private share trade comparablesPrivate share tradesIncreases (decreases) in private share trade prices increase (decrease) fair value
Other financial assets - debt instruments measured at FVTPL$10 $9 Discounted cash flowsCash flowsIncreases (decreases) in future cash flows increase (decrease) fair value
Other financial liabilities - contingent consideration$411 $— Discounted cash flowsCash flowsIncreases (decreases) in future cash flows increase (decrease) fair value
    The following table presents the change in the balance financial assets classified as Level 3 as at December 31, 2021 and 2020:
(US$ MILLIONS)20212020
Balance at beginning of year$341 $287 
Fair value change recorded in net income(5)(2)
Fair value change recorded in other comprehensive income17 (3)
Additions121 221 
Disposals(172)(162)
Foreign currency translation and other(5)— 
Balance at end of period$297 $341 
The following table presents the change in the balance of financial liabilities classified as Level 3 as at December 31, 2021 and 2020:
(US$ MILLIONS)20212020
Balance at beginning of year$11 $37 
Fair value change recorded in net income3 (23)
Fair value change recorded in other comprehensive income— (1)
Additions510 3 
Disposals(5)(5)
Foreign currency translation and other(21)— 
Balance at end of period$498 $11 
Schedule of significant unobservable inputs used and change in balance of financial liabilities The following table summarizes the valuation techniques and significant unobservable inputs used in the fair value measurement of Level 3 financial instruments:
(US$ MILLIONS)
Type of asset/liabilityCarrying value December 31, 2021Carrying value December 31, 2020Valuation technique(s)Significant unobservable input(s)Relationship of unobservable input(s) to fair value
Other financial assets - secured debentures$144 $254 Discounted cash flowsCash flowsIncreases (decreases) in future cash flows increase (decrease) fair value
Other financial assets - equity instruments designated as measured at FVOCI$143 $77 Private share trade comparablesPrivate share tradesIncreases (decreases) in private share trade prices increase (decrease) fair value
Other financial assets - debt instruments measured at FVTPL$10 $9 Discounted cash flowsCash flowsIncreases (decreases) in future cash flows increase (decrease) fair value
Other financial liabilities - contingent consideration$411 $— Discounted cash flowsCash flowsIncreases (decreases) in future cash flows increase (decrease) fair value
    The following table presents the change in the balance financial assets classified as Level 3 as at December 31, 2021 and 2020:
(US$ MILLIONS)20212020
Balance at beginning of year$341 $287 
Fair value change recorded in net income(5)(2)
Fair value change recorded in other comprehensive income17 (3)
Additions121 221 
Disposals(172)(162)
Foreign currency translation and other(5)— 
Balance at end of period$297 $341 
The following table presents the change in the balance of financial liabilities classified as Level 3 as at December 31, 2021 and 2020:
(US$ MILLIONS)20212020
Balance at beginning of year$11 $37 
Fair value change recorded in net income3 (23)
Fair value change recorded in other comprehensive income— (1)
Additions510 3 
Disposals(5)(5)
Foreign currency translation and other(21)— 
Balance at end of period$498 $11