FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2024

Fair Value Measurement [Abstract]

Financial assets classification

The following table provides the details of financial instruments and their associated financial instrument classifications as at June 30, 2024:

(US$ MILLIONS)
MEASUREMENT BASIS	FVTPL		FVOCI		Amortized cost		Total
Financial assets
Cash and cash equivalents	$	—	$	—	$	2,959	$	2,959
Accounts and other receivable, net (current and non-current)	—		—		6,607		6,607
Financial assets (current and non-current) (1)	924		4,937		7,961		13,822
Total	$	924	$	4,937	$	17,527	$	23,388
Financial liabilities
Accounts payable and other (current and non-current) (1) (2)	$	243	$	196	$	10,623	$	11,062
Borrowings (current and non-current)	—		—		42,122		42,122
Total	$	243	$	196	$	52,745	$	53,184

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(1)FVOCI and FVTPL include derivative assets and liabilities designated in hedge accounting relationships. Refer to Hedging Activities in Note 4 (a) below.

(2)Includes derivative liabilities, and excludes liabilities associated with assets held for sale, provisions, decommissioning liabilities, deferred revenue, insurance contract liabilities, work in progress, post-employment benefits and other liabilities of $7,154 million.

The following table provides the details of financial instruments and their associated financial instrument classifications as at December 31, 2023:

(US$ MILLIONS)
MEASUREMENT BASIS	FVTPL		FVOCI		Amortized cost		Total
Financial assets
Cash and cash equivalents	$	—	$	—	$	3,252	$	3,252
Accounts and other receivable, net (current and non-current)	—		—		6,563		6,563
Financial assets (current and non-current) (1)	964		4,841		7,371		13,176
Total	$	964	$	4,841	$	17,186	$	22,991
Financial liabilities
Accounts payable and other (1)(2)	$	460	$	331	$	11,054	$	11,845
Borrowings (current and non-current)	—		—		42,249		42,249
Total	$	460	$	331	$	53,303	$	54,094

____________________________________

(1)FVOCI and FVTPL include of derivative assets and liabilities designated in hedge accounting relationships. Refer to Hedging Activities in Note 4(a) below.

(2)Includes derivative liabilities and excludes liabilities associated with assets held for sale, provisions, decommissioning liabilities, deferred revenues, insurance contract liabilities, work in progress, post-employment benefits and other liabilities of $6,533 million.

(US$ MILLIONS)	June 30, 2024		December 31, 2023
Current
Marketable securities	$	154	$	498
Restricted cash	183		189
Derivative assets	122		120
Loans and notes receivable	302		243
Other financial assets (1)	132		89
Total current	$	893	$	1,139
Non-current
Marketable securities	$	2,924	$	2,748
Restricted cash	66		54
Derivative assets	408		290
Loans and notes receivable (2)	7,199		6,702
Other financial assets (1)	2,332		2,243
Total non-current	$	12,929	$	12,037

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(1)Other financial assets primarily consist of asset-backed securities and high yield bonds at the partnership’s residential mortgage insurer and convertible preferred shares held in the partnership’s audience measurement operation.

(2)Loans and notes receivable includes $6,216 million (December 31, 2023: $5,844 million) of mortgage receivables related to the partnership’s Australian asset manager and lender.

(US$ MILLIONS)	June 30, 2024		December 31, 2023
Current, net	$	5,709	$	5,558
Non-current, net
Accounts receivable	153		202
Retainer on customer contract	77		70
Billing rights	668		733
Total non-current, net	$	898	$	1,005
Total	$	6,607	$	6,563

Financial liabilities classification

The following table provides the details of financial instruments and their associated financial instrument classifications as at June 30, 2024:

(US$ MILLIONS)
MEASUREMENT BASIS	FVTPL		FVOCI		Amortized cost		Total
Financial assets
Cash and cash equivalents	$	—	$	—	$	2,959	$	2,959
Accounts and other receivable, net (current and non-current)	—		—		6,607		6,607
Financial assets (current and non-current) (1)	924		4,937		7,961		13,822
Total	$	924	$	4,937	$	17,527	$	23,388
Financial liabilities
Accounts payable and other (current and non-current) (1) (2)	$	243	$	196	$	10,623	$	11,062
Borrowings (current and non-current)	—		—		42,122		42,122
Total	$	243	$	196	$	52,745	$	53,184

____________________________________

(1)FVOCI and FVTPL include derivative assets and liabilities designated in hedge accounting relationships. Refer to Hedging Activities in Note 4 (a) below.

(2)Includes derivative liabilities, and excludes liabilities associated with assets held for sale, provisions, decommissioning liabilities, deferred revenue, insurance contract liabilities, work in progress, post-employment benefits and other liabilities of $7,154 million.

The following table provides the details of financial instruments and their associated financial instrument classifications as at December 31, 2023:

(US$ MILLIONS)
MEASUREMENT BASIS	FVTPL		FVOCI		Amortized cost		Total
Financial assets
Cash and cash equivalents	$	—	$	—	$	3,252	$	3,252
Accounts and other receivable, net (current and non-current)	—		—		6,563		6,563
Financial assets (current and non-current) (1)	964		4,841		7,371		13,176
Total	$	964	$	4,841	$	17,186	$	22,991
Financial liabilities
Accounts payable and other (1)(2)	$	460	$	331	$	11,054	$	11,845
Borrowings (current and non-current)	—		—		42,249		42,249
Total	$	460	$	331	$	53,303	$	54,094

____________________________________

(1)FVOCI and FVTPL include of derivative assets and liabilities designated in hedge accounting relationships. Refer to Hedging Activities in Note 4(a) below.

(2)Includes derivative liabilities and excludes liabilities associated with assets held for sale, provisions, decommissioning liabilities, deferred revenues, insurance contract liabilities, work in progress, post-employment benefits and other liabilities of $6,533 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 June 30, 2024 and December 31, 2023:

	June 30, 2024						December 31, 2023
(US$ MILLIONS)	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Financial assets
Common shares	$	67	$	—	$	—	$	117	$	—	$	—
Corporate and government bonds	80		3,136		138		25		3,307		85
Derivative assets	4		526		—		6		404		—
Other financial assets (1)	440		731		739		399		719		743
	$	591	$	4,393	$	877	$	547	$	4,430	$	828
Financial liabilities
Derivative liabilities	$	6	$	323	$	—	$	7	$	500	$	1
Other financial liabilities (2)	—		—		110		—		—		283
	$	6	$	323	$	110	$	7	$	500	$	284

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(1)Other financial assets include secured debentures, asset-backed securities and preferred shares. Level 1 other financial assets are primarily publicly traded preferred shares and mutual funds. Level 2 other financial assets are primarily asset-backed securities and Level 3 financial assets are primarily convertible preferred securities in the partnership’s audience measurement operation and secured debentures.

(2)Includes $75 million (December 31, 2023: $258 million) of contingent consideration payable in relation to the acquisition of subsidiaries.

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 June 30, 2024 and December 31, 2023:

	June 30, 2024						December 31, 2023
(US$ MILLIONS)	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Financial assets
Common shares	$	67	$	—	$	—	$	117	$	—	$	—
Corporate and government bonds	80		3,136		138		25		3,307		85
Derivative assets	4		526		—		6		404		—
Other financial assets (1)	440		731		739		399		719		743
	$	591	$	4,393	$	877	$	547	$	4,430	$	828
Financial liabilities
Derivative liabilities	$	6	$	323	$	—	$	7	$	500	$	1
Other financial liabilities (2)	—		—		110		—		—		283
	$	6	$	323	$	110	$	7	$	500	$	284

____________________________________

(1)Other financial assets include secured debentures, asset-backed securities and preferred shares. Level 1 other financial assets are primarily publicly traded preferred shares and mutual funds. Level 2 other financial assets are primarily asset-backed securities and Level 3 financial assets are primarily convertible preferred securities in the partnership’s audience measurement operation and secured debentures.

(2)Includes $75 million (December 31, 2023: $258 million) of contingent consideration payable in relation to the acquisition of subsidiaries.

Schedule of significant unobservable inputs used and change in balance of financial assets

The following table presents the change in the balance of financial assets classified as Level 3 for the six-month period ended June 30, 2024 and the twelve-month period ended December 31, 2023:

(US$ MILLIONS)	June 30, 2024		December 31, 2023
Balance at beginning of period	$	828	$	692
Fair value change recorded in net income	(1)		57
Fair value change recorded in other comprehensive income	11		(6)
Additions	64		150
Dispositions	(23)		(70)
Foreign currency translation and other	(2)		5
Balance at end of period	$	877	$	828

Schedule of significant unobservable inputs used and change in balance of financial liabilities

The following table presents the change in the balance of financial liabilities classified as Level 3 for the six-month period ended June 30, 2024 and the twelve-month period ended December 31, 2023:

(US$ MILLIONS)	June 30, 2024		December 31, 2023
Balance at beginning of period	$	284	$	589
Fair value change recorded in net income	(153)		(62)
Fair value change recorded in other comprehensive income	2		(21)
Additions	8		25
Dispositions/settlements	(29)		(262)
Foreign currency translation and other	(2)		15
Balance at end of period	$	110	$	284