UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF

BROOKFIELD BUSINESS PARTNERS L.P.

As at September 30, 2024 and December 31, 2023 and for the

three and nine months ended September 30, 2024 and 2023

1

INDEX TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS OF BROOKFIELD BUSINESS PARTNERS L.P.

Unaudited Interim Condensed Consolidated Statements of Financial Position	3
Unaudited Interim Condensed Consolidated Statements of Operating Results	4
Unaudited Interim Condensed Consolidated Statements of Comprehensive Income (Loss)	5
Unaudited Interim Condensed Consolidated Statements of Changes in Equity	6
Unaudited Interim Condensed Consolidated Statements of Cash Flow	7
Notes to Unaudited Interim Condensed Consolidated Financial Statements	8

2

BROOKFIELD BUSINESS PARTNERS L.P.

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS

OF FINANCIAL POSITION

(US$ MILLIONS)	Notes	September 30, 2024		December 31, 2023
Assets
Current Assets
Cash and cash equivalents	4	$	3,003	$	3,252
Financial assets	5	1,344		1,139
Accounts and other receivable, net	6	5,530		5,558
Inventory, net	7	2,730		3,665
Other assets	9	1,620		1,271
		14,227		14,885
Non-Current Assets
Financial assets	5	12,040		12,037
Accounts and other receivable, net	6	950		1,005
Other assets	9	365		385
Property, plant and equipment	10	15,527		15,724
Deferred income tax assets		1,909		1,220
Intangible assets	11	19,334		20,846
Equity accounted investments	13	2,364		2,154
Goodwill	12	13,540		14,129
		$	80,256	$	82,385
Liabilities and Equity
Current Liabilities
Accounts payable and other	14	$	10,063	$	11,598
Non-recourse borrowings in subsidiaries of the partnership	16	2,096		2,757
		12,159		14,355
Non-Current Liabilities
Accounts payable and other	14	6,397		6,780
Corporate borrowings	16	1,978		1,440
Non-recourse borrowings in subsidiaries of the partnership	16	37,475		38,052
Deferred income tax liabilities		2,886		3,226
		$	60,895	$	63,853
Equity
Limited partners	19	$	1,980	$	1,909
Non-controlling interests attributable to:
Redemption-exchange units	19	1,858		1,792
Special limited partner	19	—		—
BBUC exchangeable shares	19	1,945		1,875
Preferred securities	19	740		740
Interest of others in operating subsidiaries		12,838		12,216
		19,361		18,532
		$	80,256	$	82,385

The accompanying notes are an integral part of the unaudited interim condensed consolidated financial statements.

3

BROOKFIELD BUSINESS PARTNERS L.P.

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS

OF OPERATING RESULTS

		Three Months Ended September 30,				Nine Months Ended September 30,
(US$ MILLIONS, except per unit amounts)	Notes	2024		2023		2024		2023
Revenues	22	$	9,232	$	14,399	$	33,193	$	41,663
Direct operating costs	21	(7,069)		(13,016)		(28,875)		(37,812)
General and administrative expenses		(319)		(403)		(943)		(1,202)
Interest income (expense), net		(778)		(941)		(2,352)		(2,738)
Equity accounted income (loss)	13	1		31		55		84
Impairment reversal (expense), net	10, 12	—		(44)		10		(51)
Gain (loss) on acquisitions/dispositions, net	8	593		41		692		209
Other income (expense), net		(229)		(101)		(213)		166
Income (loss) before income tax		1,431		(34)		1,567		319
Income tax (expense) recovery
Current		(276)		(211)		(488)		(604)
Deferred		580		294		924		578
Net income (loss)		$	1,735	$	49	$	2,003	$	293
Attributable to:
Limited partners	19	$	103	$	(15)	$	113	$	(6)
Non-controlling interests attributable to:
Redemption-exchange units	19	97		(14)		106		(6)
Special limited partner	19	—		—		—		—
BBUC exchangeable shares	19	101		(15)		110		(6)
Preferred securities	19	13		22		39		66
Interest of others in operating subsidiaries		1,421		71		1,635		245
		$	1,735	$	49	$	2,003	$	293
Basic and diluted earnings (loss) per limited partner unit	19	$	1.39	$	(0.20)	$	1.52	$	(0.08)

The accompanying notes are an integral part of the unaudited interim condensed consolidated financial statements.

4

BROOKFIELD BUSINESS PARTNERS L.P.

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS

OF COMPREHENSIVE INCOME (LOSS)

		Three Months Ended September 30,				Nine Months Ended September 30,
(US$ MILLIONS)	Notes	2024		2023		2024		2023
Net income (loss)		$	1,735	$	49	$	2,003	$	293
Other comprehensive income (loss):
Items that may be reclassified subsequently to profit or loss:
Fair value through other comprehensive income		99		(44)		130		12
Insurance finance reserve		(28)		(3)		(33)		(3)
Foreign currency translation		295		(376)		(317)		(138)
Net investment and cash flow hedges	4	(236)		180		150		128
Equity accounted investments	13	6		(3)		(2)		(4)
Taxes on the above items		36		3		(8)		(9)
Reclassification to profit or loss		(87)		(86)		(226)		(112)
		85		(329)		(306)		(126)
Items that will not be reclassified subsequently to profit or loss:
Revaluation of pension obligations		—		(1)		(3)		(1)
Fair value through other comprehensive income		11		32		20		123
Taxes on the above items		(1)		3		(1)		2
		10		34		16		124
Total other comprehensive income (loss)		95		(295)		(290)		(2)
Comprehensive income (loss)		$	1,830	$	(246)	$	1,713	$	291
Attributable to:
Limited partners		$	119	$	(51)	$	88	$	(20)
Non-controlling interests attributable to:
Redemption-exchange units		112		(48)		82		(19)
Special limited partner		—		—		—		—
BBUC exchangeable shares		117		(50)		85		(20)
Preferred securities		13		22		39		66
Interest of others in operating subsidiaries		1,469		(119)		1,419		284
		$	1,830	$	(246)	$	1,713	$	291

The accompanying notes are an integral part of the unaudited interim condensed consolidated financial statements.

5

BROOKFIELD BUSINESS PARTNERS L.P.

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

	Limited partners										Non-controlling interests
(US$ MILLIONS)	Capital		Retained earnings		Ownership changes		Accumulated other comprehensive income (loss) (1)		Total limited partners		Redemption- exchange units		Special limited partner units		BBUC exchangeable shares		Preferred securities		Interest of others in operating subsidiaries		Total equity
Balance as at January 1, 2024	$	2,109	$	549	$	(619)	$	(130)	$	1,909	$	1,792	$	—	$	1,875	$	740	$	12,216	$	18,532
Net income (loss)	—		113		—		—		113		106		—		110		39		1,635		2,003
Other comprehensive income (loss)	—		—		—		(25)		(25)		(24)		—		(25)		—		(216)		(290)
Total comprehensive income (loss)	—		113		—		(25)		88		82		—		85		39		1,419		1,713
Contributions	—		—		—		—		—		—		—		—		—		166		166
Distributions and capital paid (2)	—		(14)		—		—		(14)		(13)		—		(14)		(39)		(517)		(597)
Ownership changes and other	—		—		(3)		—		(3)		(3)		—		(1)		—		(446)		(453)
Balance as at September 30, 2024	$	2,109	$	648	$	(622)	$	(155)	$	1,980	$	1,858	$	—	$	1,945	$	740	$	12,838	$	19,361
Balance as at January 1, 2023	2,114		97		(660)		(143)		1,408		1,318		—		1,378		1,490		12,835		18,429
Net income (loss)	—		(6)		—		—		(6)		(6)		—		(6)		66		245		293
Other comprehensive income (loss)	—		—		—		(14)		(14)		(13)		—		(14)		—		39		(2)
Total comprehensive income (loss)	—		(6)		—		(14)		(20)		(19)		—		(20)		66		284		291
Contributions	—		—		—		—		—		—		—		—		—		1,256		1,256
Distributions and capital paid (2)	—		(14)		—		—		(14)		(13)		—		(14)		(66)		(1,564)		(1,671)
Ownership changes (3)	—		(11)		37		(2)		24		20		—		23		—		84		151
Unit repurchases (2)	(1)		—		—		—		(1)		—		—		—		—		—		(1)
Balance as at September 30, 2023	$	2,113	$	66	$	(623)	$	(159)	$	1,397	$	1,306	$	—	$	1,367	$	1,490	$	12,895	$	18,455

____________________________________

(1)See Note 20 for additional information.

(2)See Note 19 for additional information on distributions and Unit repurchases.

(3)Includes gains or losses on changes in ownership interests of consolidated subsidiaries.

The accompanying notes are an integral part of the unaudited interim condensed consolidated financial statements.

6

BROOKFIELD BUSINESS PARTNERS L.P.

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

		Nine Months Ended September 30,
(US$ MILLIONS)	Notes	2024		2023
Operating Activities
Net income (loss)		$	2,003	$	293
Adjusted for the following items:
Equity accounted earnings, net of distributions	13	129		64
Impairment expense (reversal), net		(10)		51
Depreciation and amortization expense	21	2,425		2,701
Gain on acquisitions/dispositions, net	8	(692)		(209)
Provisions and other items		(46)		(741)
Deferred income tax expense (recovery)		(924)		(578)
Changes in non-cash working capital, net	24	(552)		123
Cash from (used in) operating activities		2,333		1,704
Financing Activities
Proceeds from non-recourse subsidiary borrowings of the partnership		8,486		10,983
Repayment of non-recourse subsidiary borrowings of the partnership		(8,597)		(11,251)
Proceeds from corporate borrowings		760		395
Repayment of corporate borrowings		(215)		(475)
Proceeds from other financing		175		76
Repayment of other financing		(107)		(125)
Proceeds from (repayment of) other credit facilities, net		(217)		74
Lease liability repayment		(236)		(295)
Capital provided by others who have interests in operating subsidiaries	19	136		1,813
Partnership units repurchased	19	—		(1)
Distributions to limited partners, Redemption-Exchange unitholders and BBUC exchangeable shareholders	19	(41)		(42)
Distributions to preferred securities holders	19	(39)		(70)
Distributions and capital paid to others who have interests in operating subsidiaries	19	(562)		(1,777)
Cash from (used in) financing activities		(457)		(695)
Investing Activities
Acquisitions
Subsidiaries, net of cash acquired		(84)		(709)
Property, plant and equipment and intangible assets		(1,924)		(1,671)
Equity accounted investments		(203)		(223)
Financial assets and other		(2,429)		(2,130)
Dispositions
Subsidiaries, net of cash disposed	8	300		771
Property, plant and equipment and intangible assets		19		70
Financial assets and other		2,459		3,000
Net settlement of derivative assets and liabilities		(47)		(29)
Restricted cash and deposits		(66)		38
Cash from (used in) investing activities		(1,975)		(883)
Cash and cash equivalents
Change during the period		(99)		126
Impact of foreign exchange		(100)		6
Net change in cash classified within assets held for sale		(50)		(39)
Balance, beginning of year		3,252		2,870
Balance, end of period		$	3,003	$	2,963

Supplemental cash flow information is presented in Note 24.

The accompanying notes are an integral part of the unaudited interim condensed consolidated financial statements.

7

NOTES TO UNAUDITED INTERIM CONDENSED

CONSOLIDATED FINANCIAL STATEMENTS

As at September 30, 2024 and December 31, 2023 and

for the three and nine months ended September 30, 2024 and2023

NOTE 1. NATURE AND DESCRIPTION OF THE PARTNERSHIP

Brookfield Business Partners L.P. and its subsidiaries (collectively, the “partnership”) is an owner and operator of business services and industrials operations on a global basis. Brookfield Business Partners L.P. was established as a limited partnership under the laws of Bermuda, and organized pursuant to a limited partnership agreement as amended on May 31, 2016, and as thereafter amended. Brookfield Corporation (together with its controlled subsidiaries, excluding the partnership, “Brookfield”) is the ultimate parent of the partnership. “Brookfield Holders” refers to Brookfield, Brookfield Wealth Solutions Ltd. (“Brookfield Wealth Solutions”) and their related parties. Brookfield Business Partners L.P.’s limited partnership units are listed on the New York Stock Exchange (“NYSE”) and the Toronto Stock Exchange (“TSX”) under the symbols “BBU” and “BBU.UN”, respectively. The registered head office of Brookfield Business Partners L.P. is 73 Front Street, 5th Floor, Hamilton HM 12, Bermuda.

Brookfield Business Partners L.P.’s sole direct investment is the managing general partnership units (“Managing General Partner Units”) of Brookfield Business L.P. (the “Holding LP”), which holds the partnership’s interests in its operating businesses. The partnership’s consolidated equity interests include the non-voting publicly traded limited partnership units (“LP Units”) held by public unitholders and Brookfield, general partner units held by Brookfield (“GP Units”), redemption-exchange partnership units (“Redemption-Exchange Units”) in the Holding LP held by Brookfield, special limited partnership units (“Special LP Units”) in the Holding LP held by Brookfield and class A exchangeable subordinate voting shares (“BBUC exchangeable shares”) of Brookfield Business Corporation (“BBUC”), a consolidated subsidiary of the partnership, held by Brookfield Holders and the public. Holders of the LP Units, GP Units, Redemption-Exchange Units, Special LP Units and BBUC exchangeable shares will be collectively referred to throughout as “Unitholders” unless the context indicates or requires otherwise. LP Units, GP Units, Redemption-Exchange Units, Special LP Units and BBUC exchangeable shares will be collectively referred to throughout as “Units” unless the context indicates or requires otherwise.

The partnership’s principal operations include business services operations such as a residential mortgage insurer, a dealer software and technology services operation, healthcare services and a construction operation. The partnership’s industrials operations include an advanced energy storage operation and an engineered components manufacturing operation, among others. The partnership’s infrastructure services operations include offshore oil services, a lottery services operation, modular building leasing services and work access services. The partnership’s operations are primarily located in the United States, the United Kingdom, Europe, Australia, Canada and Brazil.

NOTE 2. MATERIAL ACCOUNTING POLICY INFORMATION

(a)Basis of presentation

These unaudited interim condensed consolidated financial statements of the partnership have been prepared in accordance with IAS 34, Interim Financial Reporting (“IAS 34”), as issued by the International Accounting Standards Board (“IASB”) and using the accounting policies the partnership applied in its annual consolidated financial statements as at and for the year ended December 31, 2023, except for the adoption of the new accounting policies and standards described below. The accounting policies the partnership applied in its annual consolidated financial statements as at and for the year ended December 31, 2023 are disclosed in Note 2 of such consolidated financial statements, with which reference should be made in reading these unaudited interim condensed consolidated financial statements. All defined terms are also described in the annual consolidated financial statements. The unaudited interim condensed consolidated financial statements are prepared on a going concern basis and have been presented in U.S. dollars rounded to the nearest million unless otherwise indicated.

These unaudited interim condensed consolidated financial statements were approved by the Board of Directors of the partnership’s general partner, Brookfield Business Partners Limited (the “General Partner”), on behalf of the partnership, and authorized for issue on November 12, 2024.

8

NOTES TO UNAUDITED INTERIM CONDENSED

CONSOLIDATED FINANCIAL STATEMENTS 

As at September 30, 2024 and December 31, 2023 and

for the three and nine months ended September 30, 2024 and2023

(b)     Critical accounting judgments and measurement uncertainty

The preparation of financial statements in accordance with IAS 34 requires management to make critical judgments, estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period of the financial statements that are not readily apparent from other sources. The critical accounting estimates and judgments have been set out in Note 2 to the partnership’s annual consolidated financial statements as at and for the year ended December 31, 2023. These estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. There have been no significant changes to the method of determining critical accounting estimates and judgments relative to those described in the annual consolidated financial statements as at and for the year ended December 31, 2023.

(i)     Impact of tax legislation

(i)(a)    Global minimum top-up tax

The partnership operates in countries, including Canada, which have enacted new legislation to implement the global minimum top-up tax, effective from January 1, 2024. The partnership has applied a temporary mandatory relief from recognizing and disclosing deferred taxes in connection with the global minimum top-up tax and will account for it as a current tax when it is incurred. There is no material current tax impact for the nine months ended September 30, 2024. The global minimum top-up tax is not anticipated to have a material impact on the financial position of the partnership.

(i)(b)    Inflation Reduction Act of 2022

On August 16, 2022, the Inflation Reduction Act of 2022 (“IRA”) was enacted in the United States, providing multiple incentives for domestic energy production and manufacturing. In December 2023, the United States Department of the Treasury issued proposed regulations, which were subsequently finalized in October 2024, that provided guidance in determining eligibility to claim Advanced Manufacturing Production Credits under the IRA (“IRA Credits”). The IRA Credits are available for qualifying activities from 2023 to 2032, subject to phase out beginning in 2030.

The partnership’s advanced energy storage operation is entitled to claim IRA Credits over the availability period as determined under the IRA. For qualified business activities for the period between October 1, 2022 and September 30, 2023, the IRA Credit is a carryforward to offset future taxes and accounted for under IAS 12, Income Taxes. During the three and nine months ended September 30, 2024, the partnership recorded $433 million and $610 million, respectively, as deferred tax recovery in the unaudited interim condensed consolidated statements of operating results and related deferred tax assets in the unaudited interim condensed consolidated statements of financial position.

For qualified business activities in the partnership’s advanced energy storage operation beginning in its fiscal year 2024 subsequent to October 1, 2023, IRA Credits are eligible to be refundable or transferable, and therefore the benefits are accounted for in accordance with IAS 20, Accounting for Government Grants and Disclosure of Government Assistance (“IAS 20”).

IAS 20 permits a policy choice to record benefits of a similar nature as income or an offset to a related expense. The partnership has elected to record these benefits as a reduction to direct operating costs in its unaudited interim condensed consolidated statements of operating results, with a corresponding receivable in accounts and other receivable, net in its unaudited interim condensed consolidated statements of financial position. During the three and nine months ended September 30, 2024, the partnership recorded a cumulative benefit of $1,069 million.

(c)New accounting policies adopted

The partnership has applied new and revised standards issued by the IASB that are effective for the period beginning on or after January 1, 2024.

(i)Amendments to IAS 1 Presentation of Financial Statements (“IAS 1”)

The amendments clarify how to classify debt and other liabilities as current or non-current. The partnership adopted these amendments on January 1, 2024 and the adoption did not have a material impact on the partnership’s unaudited interim condensed consolidated financial statements.

9

NOTES TO UNAUDITED INTERIM CONDENSED

CONSOLIDATED FINANCIAL STATEMENTS 

As at September 30, 2024 and December 31, 2023 and

for the three and nine months ended September 30, 2024 and2023

(d)Future changes in accounting policies

There are currently no other future changes to IFRS with expected material impacts on the partnership.

NOTE 3. ACQUISITION OF BUSINESSES

When determining the basis of accounting for the partnership’s investees, the partnership evaluates the degree of influence that the partnership exerts directly or through an arrangement over the investees’ relevant activities. Control is obtained when the partnership has power over the acquired entities and an ability to use its power to affect the returns of these entities.

The partnership accounts for business combinations using the acquisition method of accounting, pursuant to which identifiable tangible and intangible assets and liabilities are recognized and measured on the basis of their estimated fair values at the date of acquisition.

(a)Acquisitions completed in the nine months ended September 30, 2024

There were no significant acquisitions during the three and nine months ended September 30, 2024.

(b)Acquisitions completed in 2023

Infrastructure services

Mobile Mini Solutions (“Mobile Mini”)

On January 31, 2023, the partnership’s modular building leasing services acquired a 100% economic interest in Mobile Mini, a provider of portable storage solutions in the United Kingdom for total consideration of $419 million, funded with debt and equity. The partnership received 100% of the voting rights in Mobile Mini, which provided the partnership with control, and accordingly, the partnership has consolidated the business for financial reporting purposes.

Goodwill of $176 million was recognized and represents growth the partnership expects to experience from the operations. The goodwill recognized was not deductible for income tax purposes. Customer relationship intangible assets of $58 million, property, plant and equipment of $236 million and other net liabilities of $51 million were acquired as part of the transaction. Transaction costs of approximately $10 million were recorded as other expenses in the 2023 consolidated statements of operating results.

NOTE 4. FAIR VALUE OF FINANCIAL INSTRUMENTS

The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair values are determined by reference to quoted bid or ask prices, as appropriate. Where bid and ask prices are unavailable, the closing price of the most recent transaction of that instrument is used. In the absence of an active market, fair values are determined based on prevailing market rates such as bid and ask prices, as appropriate, for instruments with similar characteristics and risk profiles or internal or external valuation models, such as option pricing models and discounted cash flow analysis, using observable market inputs when available.

Fair values determined using valuation models require the use of assumptions concerning the amount and timing of estimated future cash flows and discount rates. In determining those assumptions, the partnership looks primarily to external readily observable market inputs such as interest rate yield curves, currency rates and price and rate volatility, as applicable.

10

NOTES TO UNAUDITED INTERIM CONDENSED

CONSOLIDATED FINANCIAL STATEMENTS 

As at September 30, 2024 and December 31, 2023 and

for the three and nine months ended September 30, 2024 and2023

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

(US$ MILLIONS)
MEASUREMENT BASIS	FVTPL		FVOCI		Amortized cost		Total
Financial assets
Cash and cash equivalents	$	—	$	—	$	3,003	$	3,003
Accounts and other receivable, net (current and non-current)	—		—		6,480		6,480
Financial assets (current and non-current) (1)	885		4,893		7,606		13,384
Total	$	885	$	4,893	$	17,089	$	22,867
Financial liabilities
Accounts payable and other (current and non-current) (1) (2)	$	138	$	253	$	9,391	$	9,782
Borrowings (current and non-current)	—		—		41,549		41,549
Total	$	138	$	253	$	50,940	$	51,331

____________________________________

(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 $6,678 million.

Included in cash and cash equivalents as at September 30, 2024 was $1,941 million of cash (December 31, 2023: $2,062 million) and $1,062 million of cash equivalents (December 31, 2023: $1,190 million).

Included in financial assets (current and non-current) as at September 30, 2024 was $479 million (December 31, 2023: $527 million) of equity instruments and $4,219 million (December 31, 2023: $4,105 million) of debt instruments designated and measured at fair value through other comprehensive income.

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.

11

NOTES TO UNAUDITED INTERIM CONDENSED

CONSOLIDATED FINANCIAL STATEMENTS 

As at September 30, 2024 and December 31, 2023 and

for the three and nine months ended September 30, 2024 and2023

(a)Hedging activities

Derivative instruments not designated in a hedging relationship are classified as FVTPL, with changes in fair value recognized in the unaudited interim condensed consolidated statements of operating results.

Net investment hedges

The partnership uses foreign exchange derivative contracts and foreign currency denominated debt instruments to manage foreign currency exposures arising from net investments in foreign operations. For the three and nine months ended September 30, 2024, a pre-tax net loss of $59 million and a pre-tax net gain $87 million, respectively (September 30, 2023: pre-tax net gain of $72 million and a pre-tax net loss of $82 million, respectively) was recorded in other comprehensive income for the effective portion of hedges of net investments in foreign operations. As at September 30, 2024, there was a derivative asset balance of $61 million (December 31, 2023: $4 million) and a derivative liability balance of $162 million (December 31, 2023: $259 million) relating to derivative contracts designated as net investment hedges.

Cash flow hedges

The partnership uses commodity swap contracts to hedge the sale price of natural gas contracts, purchase price of oil, lead, polypropylene, and tin, foreign exchange contracts and option contracts to hedge highly probable future transactions, and interest rate contracts to hedge the cash flows on its floating rate borrowings. A number of these contracts are designated as cash flow hedges. For the three and nine months ended September 30, 2024, a pre-tax net loss of $177 million and a pre-tax gain of $63 million, respectively (September 30, 2023: pre-tax net gain of $108 million and $210 million, respectively) was recorded in other comprehensive income for the effective portion of cash flow hedges. As at September 30, 2024, there was a derivative asset balance of $134 million (December 31, 2023: $205 million) and derivative liability balance of $91 million (December 31, 2023: $72 million) relating to the derivative contracts designated as cash flow hedges.

Fair value hedges

The partnership uses cross currency interest rate swap contracts to hedge its fair value exposure on certain foreign currency borrowings resulting from changes in foreign currency. As at September 30, 2024, there was a derivative asset balance of $31 million (December 31, 2023: $10 million) and derivative liability balance of $24 million (December 31, 2023: $31 million) relating to derivative contracts designated as fair value hedges.

(b)Fair value hierarchical levels – financial instruments

Level 3 assets and liabilities measured at fair value on a recurring basis include $953 million (December 31, 2023: $828 million) of financial assets and $43 million (December 31, 2023: $284 million) of financial liabilities, which are measured at fair value using valuation inputs based on management’s best estimates.

12

NOTES TO UNAUDITED INTERIM CONDENSED

CONSOLIDATED FINANCIAL STATEMENTS 

As at September 30, 2024 and December 31, 2023 and

for the three and nine months ended September 30, 2024 and2023

The following table categorizes financial assets and liabilities, which are carried at fair value, based upon the level of input as at September 30, 2024 and December 31, 2023:

	September 30, 2024						December 31, 2023
(US$ MILLIONS)	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Financial assets
Common shares	$	58	$	—	$	—	$	117	$	—	$	—
Corporate and government bonds	47		3,289		220		25		3,307		85
Derivative assets	—		285		—		6		404		—
Other financial assets (1)	447		699		733		399		719		743
	$	552	$	4,273	$	953	$	547	$	4,430	$	828
Financial liabilities
Derivative liabilities	$	—	$	348	$	—	$	7	$	500	$	1
Other financial liabilities (2)	—		—		43		—		—		283
	$	—	$	348	$	43	$	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 $16 million (December 31, 2023: $258 million) of contingent consideration payable in relation to the acquisition of subsidiaries.

There were no transfers between levels during the nine months ended September 30, 2024.

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

(US$ MILLIONS)	September 30, 2024		December 31, 2023
Balance at beginning of period	$	828	$	692
Fair value change recorded in net income	4		57
Fair value change recorded in other comprehensive income	16		(6)
Additions	144		150
Dispositions	(45)		(70)
Foreign currency translation and other	6		5
Balance at end of period	$	953	$	828

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

(US$ MILLIONS)	September 30, 2024		December 31, 2023
Balance at beginning of period	$	284	$	589
Fair value change recorded in net income	(149)		(62)
Fair value change recorded in other comprehensive income	(1)		(21)
Additions	12		25
Dispositions/settlements	(101)		(262)
Foreign currency translation and other	(2)		15
Balance at end of period	$	43	$	284

13

NOTES TO UNAUDITED INTERIM CONDENSED

CONSOLIDATED FINANCIAL STATEMENTS 

As at September 30, 2024 and December 31, 2023 and

for the three and nine months ended September 30, 2024 and2023

NOTE 5. FINANCIAL ASSETS

(US$ MILLIONS)	September 30, 2024		December 31, 2023
Current
Marketable securities	$	549	$	498
Restricted cash	240		189
Derivative assets	162		120
Loans and notes receivable	235		243
Other financial assets (1)	158		89
Total current	$	1,344	$	1,139
Non-current
Marketable securities	$	2,635	$	2,748
Restricted cash	66		54
Derivative assets	123		290
Loans and notes receivable (2)	6,784		6,702
Other financial assets (1)	2,432		2,243
Total non-current	$	12,040	$	12,037

____________________________________

(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 $5,969 million (December 31, 2023: $5,844 million) of mortgage receivables related to the partnership’s Australian asset manager and lender.

NOTE 6. ACCOUNTS AND OTHER RECEIVABLE, NET

(US$ MILLIONS)	September 30, 2024		December 31, 2023
Current, net (1)	$	5,530	$	5,558
Non-current, net
Accounts receivable	198		202
Retainer on customer contract	61		70
Billing rights	691		733
Total non-current, net	$	950	$	1,005
Total	$	6,480	$	6,563

_________________________________

(1)Includes a receivable of $1,069 million related to the IRA Credits. Refer to Note 2(b)(i) for additional details.

Non-current billing rights represent unbilled rights from the partnership’s water and wastewater operation in Brazil from revenues earned from the construction of public concession contracts classified as financial assets, which are recognized when there is an unconditional right to receive cash or other financial assets from the concession authority for the construction services.

The partnership’s construction operation has a retention balance, which comprises amounts that have been earned but held back until the satisfaction of certain conditions specified in the contract. The retention balance included in the current accounts and other receivable, net as at September 30, 2024 was $86 million (December 31, 2023: $120 million).

14

NOTES TO UNAUDITED INTERIM CONDENSED

CONSOLIDATED FINANCIAL STATEMENTS 

As at September 30, 2024 and December 31, 2023 and

for the three and nine months ended September 30, 2024 and2023

NOTE 7. INVENTORY, NET

(US$ MILLIONS)	September 30, 2024		December 31, 2023
Raw materials and consumables	$	885	$	1,066
Fuel products (1)	—		596
Work in progress	599		564
RTFO certificates (1)	—		367
Finished goods and other (2)	1,246		1,072
Carrying amount of inventories	$	2,730	$	3,665

____________________________________

(1)The partnership completed the disposition of its road fuels operation during the third quarter of 2024 and accordingly deconsolidated inventory related to fuel products and RTFO certificates. See Note 8 for additional information.

(2)Finished goods and other primarily comprises finished goods inventory at the partnership’s advanced energy storage operation and engineered components manufacturing operation.

NOTE 8. DISPOSITIONS

(a)Dispositions completed in the nine months ended September 30, 2024

Business services

Road fuels operation

During the quarter, the partnership completed the sale of its road fuels operation for total consideration of $250 million resulting in a pre-tax net gain of $483 million recorded in the unaudited interim condensed consolidated statements of operating results, included in gain (loss) on acquisitions/dispositions, net.

Payments processing services operation

On September 17, 2024, the partnership, along with institutions investors, completed the acquisition of Network International Holdings Plc ("Network"), a digital payment processor in the Middle East and Africa. Following the acquisition, the partnership combined the business with its existing payment processing services operation. The partnership invested an incremental $156 million of equity for an 11% economic interest in the combined business. As a result of the combination, the partnership deconsolidated the net assets of its payment processing services operation and recorded a pre-tax net gain of $110 million in gain (loss) on acquisitions/dispositions, net in the unaudited interim condensed consolidated statements of operating results. The gain on deconsolidation was calculated based on the fair value of the retained interest in the business, extinguishment of a contingent consideration liability, net of the derecognition of net assets and non-controlling interests, and net of closing costs. The partnership accounts for its interest in the combined business as an equity accounted investment.

Real estate services operation

On March 31, 2024, the partnership completed the sale of its general partner interest and residential real estate brokerage portfolio to Bridgemarq, a publicly listed real estate services operation and brokerage business in which the partnership has an equity accounted investment. As consideration, the partnership received limited partnership units in the Bridgemarq public entity, increasing the partnership’s ownership interest from 28% to approximately 42%. This resulted in a pre-tax gain of $15 million recorded in the unaudited interim condensed consolidated statements of operating results, included in gain (loss) on acquisitions/dispositions, net.

Industrials

Canadian aggregates production operation

On June 11, 2024, the partnership completed the sale of its Canadian aggregates production operation for total consideration of $140 million, resulting in a pre-tax net gain of $84 million recorded in the unaudited interim condensed consolidated statements of operating results, included in gain (loss) on acquisitions/dispositions, net.

15

NOTES TO UNAUDITED INTERIM CONDENSED

CONSOLIDATED FINANCIAL STATEMENTS 

As at September 30, 2024 and December 31, 2023 and

for the three and nine months ended September 30, 2024 and2023

Infrastructure services

Offshore oil services

On February 29, 2024, the partnership’s offshore oil services completed the sale of its non-core towage business. The proceeds realized from the sale were equal to the carrying value of the business disposed, resulting in no gain or loss.

(b)Dispositions completed in the nine months ended September 30, 2023

Industrials

Automotive aftermarket parts remanufacturer

On July 3, 2023, the partnership completed the sale of a majority of its automotive aftermarket parts remanufacturing operation, resulting in a gain of $41 million recorded in the unaudited interim condensed consolidated statements of operating results, included in gain (loss) on acquisitions/dispositions, net.

Business services

Dealer software and technology services operation

On May 1, 2023, the partnership’s dealer software and technology services operation completed the sale of its non-core division servicing the heavy equipment sector for total consideration of approximately $490 million, resulting in a gain of $87 million recorded in the unaudited interim condensed consolidated statements of operating results, included in gain (loss) on acquisitions/dispositions, net.

Residential property management operation

On March 31, 2023, the partnership completed the sale of its residential property management operation, resulting in a gain of $67 million recorded in the unaudited interim condensed consolidated statements of operating results, included in gain (loss) on acquisitions/dispositions, net.

Infrastructure services

Power delivery business

During February 2023, the nuclear technology services operation, which the partnership sold in November 2023, completed the sale of its power delivery business for gross proceeds of approximately $275 million, resulting in a net pre-tax gain of $14 million recorded in the unaudited interim condensed consolidated statements of operating results, included in gain (loss) on acquisitions/dispositions, net.

NOTE 9. OTHER ASSETS

(US$ MILLIONS)	September 30, 2024		December 31, 2023
Current
Work in progress (1)	$	206	$	200
Prepayments and other assets	939		956
Assets held for sale (2)	475		115
Total current	$	1,620	$	1,271
Non-current
Prepayments and other assets	$	365	$	385
Total non-current	$	365	$	385

____________________________________

(1)See Note 15 for additional information.

(2)Assets held for sale as at September 30, 2024 includes the non-core home finance lending business of the partnership’s Indian non-bank financial services operation.

16

NOTES TO UNAUDITED INTERIM CONDENSED

CONSOLIDATED FINANCIAL STATEMENTS 

As at September 30, 2024 and December 31, 2023 and

for the three and nine months ended September 30, 2024 and2023

NOTE 10. PROPERTY, PLANT AND EQUIPMENT

The following table presents the change in the balance of property, plant and equipment for the nine-month period ended September 30, 2024 and the twelve-month period ended December 31, 2023:

(US$ MILLIONS)	September 30, 2024		December 31, 2023
Gross carrying amount
Balance at beginning of period	$	22,392	$	21,980
Additions (cash and non-cash)	2,489		3,433
Dispositions (1)	(2,178)		(3,589)
Acquisitions through business combinations	7		236
Assets reclassified as held for sale	(212)		—
Foreign currency translation and other	(152)		332
Balance at end of period	$	22,346	$	22,392
Accumulated depreciation and impairment
Balance at beginning of period	$	(6,668)	$	(6,087)
Depreciation/depletion/impairment expense	(1,244)		(2,049)
Dispositions	951		1,568
Assets reclassified as held for sale	156		—
Foreign currency translation and other	(14)		(100)
Balance at end of period	$	(6,819)	$	(6,668)
Net book value (2)	$	15,527	$	15,724

____________________________________

(1)See Note 8for additional information.

(2)Includes right-of-use assets of $906 million as at September 30, 2024 (December 31, 2023: $1,296 million).

NOTE 11. INTANGIBLE ASSETS

The following table presents the change in the balance of intangible assets for the nine-month period ended September 30, 2024 and twelve-month period ended December 31, 2023:

(US$ MILLIONS)	September 30, 2024		December 31, 2023
Gross carrying amount
Balance at beginning of period	$	25,242	$	27,568
Additions	261		588
Acquisitions through business combinations	20		74
Dispositions (1)	(576)		(3,485)
Foreign currency translation	(352)		497
Balance at end of period	$	24,595	$	25,242
Accumulated amortization and impairment
Balance at beginning of period	$	(4,396)	$	(3,615)
Amortization and impairment expense	(1,184)		(1,730)
Dispositions	261		1,038
Foreign currency translation	58		(89)
Balance at end of period	$	(5,261)	$	(4,396)
Net book value	$	19,334	$	20,846

____________________________________

(1)See Note 8 for additional information.

17

NOTES TO UNAUDITED INTERIM CONDENSED

CONSOLIDATED FINANCIAL STATEMENTS 

As at September 30, 2024 and December 31, 2023 and

for the three and nine months ended September 30, 2024 and2023

NOTE 12. GOODWILL

The following table presents the change in the balance of goodwill for the nine-month period ended September 30, 2024 and the twelve-month period ended December 31, 2023:

(US$ MILLIONS)	September 30, 2024		December 31, 2023
Balance at beginning of period	$	14,129	$	15,479
Acquisitions through business combinations (1)	36		189
Impairment	—		(605)
Dispositions (2)	(638)		(1,091)
Assets reclassified as held for sale	14		—
Foreign currency translation	(1)		157
Balance at end of period	$	13,540	$	14,129

____________________________________

(1)See Note 3 for additional information.

(2)See Note 8 for additional information.

NOTE 13. EQUITY ACCOUNTED INVESTMENTS

The following table presents the change in the balance of equity accounted investments for the nine-month period ended September 30, 2024 and twelve-month period ended December 31, 2023:

(US$ MILLIONS)	September 30, 2024		December 31, 2023
Balance at beginning of period	$	2,154	$	2,065
Additions	363		464
Dispositions	(12)		(354)
Share of net income (loss)	55		132
Share of other comprehensive income (loss)	(2)		1
Distributions received	(184)		(172)
Foreign currency translation	(10)		18
Balance at end of period	$	2,364	$	2,154

On September 17, 2024, the partnership completed an investment of $156 million of equity into Network. Following this transaction, the partnership combined its existing payment processing services operation with its recently acquired investment in Network. As a result, the partnership deconsolidated its payment processing services operation to account for its 11% ownership interest in the combined business as an equity accounted investment.

18

NOTES TO UNAUDITED INTERIM CONDENSED

CONSOLIDATED FINANCIAL STATEMENTS 

As at September 30, 2024 and December 31, 2023 and

for the three and nine months ended September 30, 2024 and2023

NOTE 14. ACCOUNTS PAYABLE AND OTHER

(US$ MILLIONS)	September 30, 2024		December 31, 2023
Current
Accounts payable	$	3,657	$	4,234
Accrued and other liabilities (1) (2)	4,101		5,194
Lease liabilities	200		266
Financial liabilities (3)	370		278
Insurance liabilities	406		433
Work in progress (4)	479		481
Provisions and decommissioning liabilities	607		689
Liabilities associated with assets held for sale	243		23
Total current (5)	$	10,063	$	11,598
Non-current
Accounts payable	$	89	$	94
Accrued and other liabilities (2)	1,814		1,692
Lease liabilities	779		1,104
Financial liabilities (3)	1,675		1,894
Insurance liabilities	1,532		1,501
Work in progress (4)	59		20
Provisions and decommissioning liabilities	449		475
Total non-current (5)	$	6,397	$	6,780

____________________________________

(1)Includes bank overdrafts of $19 million as at September 30, 2024 (December 31, 2023: $558 million).

(2)Includes post-employment benefits of $247 million ($8 million current and $239 million non-current) as at September 30, 2024 and $250 million ($7 million current and $243 million non-current) as at December 31, 2023.

(3)Includes financial liabilities of $1,399 million ($79 million current and $1,320 million non-current) as at September 30, 2024 and $1,345 million ($64 million current and $1,281 million non-current) as at December 31, 2023 related to a failed sale and leaseback of hospitals.

(4)See Note 15 for additional information.

(5)The partnership completed the disposition of its road fuels operation during the third quarter of 2024 and accordingly deconsolidated $2,436 million of accounts payable and other liabilities. See Note 8 for additional information.

NOTE 15. CONTRACTS IN PROGRESS

(US$ MILLIONS)	September 30, 2024		December 31, 2023
Contract costs incurred to date	$	11,531	$	13,519
Profit recognized to date (less recognized losses)	203		170
	$	11,734	$	13,689
Less: progress billings	(12,066)		(13,990)
Contract work in progress (liability)	$	(332)	$	(301)
Comprising:
Amounts due from customers – work in progress	$	206	$	200
Amounts due to customers – creditors	(538)		(501)
Net work in progress	$	(332)	$	(301)

19

NOTES TO UNAUDITED INTERIM CONDENSED

CONSOLIDATED FINANCIAL STATEMENTS 

As at September 30, 2024 and December 31, 2023 and

for the three and nine months ended September 30, 2024 and2023

NOTE 16. BORROWINGS

(a)Corporate borrowings

The partnership has bilateral credit facilities backed by large global banks. The credit facilities are available in Euros, British pounds, Australian dollars, U.S. dollars and Canadian dollars. Advances under the credit facilities bear interest at the specified SOFR, SONIA, EURIBOR, CORRA, BBSY or bankers’ acceptance rate plus 2.50%, or the specified base rate or prime rate plus 1.50%. The credit facilities require the partnership to maintain a minimum tangible net worth and deconsolidated debt to capitalization ratio at the corporate level. The total capacity on the bilateral credit facilities is $2,350 million with a maturity date of June 29, 2029. The balance drawn on the bilateral credit facility, net of deferred financing costs, was $1,978 million as at September 30, 2024 (December 31, 2023: $1,440 million).

The partnership had $1 billion available on its revolving credit facility with Brookfield (the “Brookfield Credit Agreement”) as at September 30, 2024. The credit facility is guaranteed by the partnership, the Holding LP and certain of the partnership’s subsidiaries. The credit facility is available in U.S. dollars or Canadian dollars and advances are made by way of SOFR, base rate, bankers’ acceptance rate or prime rate loans. The credit facility bears interest at the specified SOFR or bankers’ acceptance rate plus 3.45%, or the specified base rate or prime rate plus 2.45%. The credit facility requires the partnership to maintain a minimum deconsolidated net worth and contains restrictions on the ability of the borrowers and the guarantors to, among other things, incur certain liens or enter into speculative hedging arrangements. Net proceeds above a specified threshold that are received by the borrowers from asset dispositions, debt incurrences or equity issuances by the borrowers or their subsidiaries must be used to pay down the credit facility (which can then be redrawn to fund future investments). The maturity date of the credit facility is April 27, 2028, which date will automatically extend for a one-year period on April 27 of each year unless Brookfield provides written notice of its intention not to further extend the then prevailing maturity date. The total available amount on the credit facility will decrease to $500 million on April 27, 2025. As at September 30, 2024, the credit facility remained undrawn.

The partnership is currently in compliance with covenant requirements of its corporate borrowings and continues to monitor performance against such covenant requirements.

As at September 30, 2024, there were no funds on deposit from Brookfield (December 31, 2023: $nil). Refer to Note 17 for further details on the Deposit Agreements (defined herein) with Brookfield.

(b)Non-recourse subsidiary borrowings of the partnership

Current and non-current non-recourse subsidiary borrowings in subsidiaries of the partnership as at September 30, 2024, net of deferred financing costs, premiums and discounts, were $2,096 million and $37,475 million, respectively (December 31, 2023: $2,757 million and $38,052 million, respectively). Non-recourse borrowings in subsidiaries of the partnership include borrowings made under subscription facilities of Brookfield-sponsored private equity funds.

Some of the partnership’s operations have credit facilities in which they borrow and repay on a short-term basis. This movement has been shown on a net basis in the partnership’s unaudited interim condensed consolidated statements of cash flow.

The partnership has financing arrangements within its operating businesses that trade in public markets or are held at major financial institutions. The financing arrangements are primarily composed of term loans, securitization programs, credit facilities and notes and debentures which are subject to fixed or floating interest rates. The majority of borrowings drawn are not subject to financial maintenance covenants, however, some are subject to fixed charge coverage, leverage ratios and minimum equity or liquidity covenants.

The partnership principally finances assets at the subsidiary level with debt that is non-recourse to both the partnership and to its other subsidiaries and is generally secured against assets within the respective subsidiaries. Moreover, debt instruments at the partnership’s subsidiaries do not cross-accelerate or cross-default to debt at other subsidiaries. The partnership’s subsidiaries are currently in compliance with all material covenant requirements and the partnership continues to work with its businesses to monitor performance against such covenant requirements.

20

NOTES TO UNAUDITED INTERIM CONDENSED

CONSOLIDATED FINANCIAL STATEMENTS 

As at September 30, 2024 and December 31, 2023 and

for the three and nine months ended September 30, 2024 and2023

NOTE 17. RELATED PARTY TRANSACTIONS

In the normal course of operations, the partnership entered into the transactions below with related parties. These transactions have been measured at fair value and are recognized in the unaudited interim condensed consolidated financial statements.

(a)Transactions with Brookfield

The partnership is a party to the Brookfield Credit Agreement, which permits borrowings of up to $1 billion. As at September 30, 2024, $nil was drawn on the credit facilities under the Brookfield Credit Agreement (December 31, 2023: $nil). Refer to Note 16 for further details.

From time to time, each of Brookfield and the partnership may place funds on deposit with the other, on terms approved by the independent directors of the partnership’s General Partner, pursuant to deposit agreements entered into between Brookfield and the partnership (the “Deposit Agreements”). Interest earned or incurred on such deposits is at market terms. As at September 30, 2024, the net deposit from Brookfield was $nil (December 31, 2023: $nil) and the partnership incurred interest income (expense) of $nil for the three and nine months ended September 30, 2024 (September 30, 2023: $nil) on these deposits.

Pursuant to the Master Services Agreement (“Master Services Agreement”), Brookfield Business Partners L.P. and other service recipients (the “Service Recipients” as defined in the Master Services Agreement) pay a base management fee, referred to as the Base Management Fee, to certain service providers (the “Service Providers” as defined in the Master Services Agreement) equal to 0.3125% per quarter (1.25% annually) of the total capitalization of the partnership, which is reflected within general and administrative expenses. For purposes of calculating the base management fee, the total capitalization of the partnership is equal to the quarterly volume-weighted average trading price of an LP Unit on the principal stock exchange for the LP Units (based on trading volumes) multiplied by the number of LP Units outstanding at the end of the quarter (assuming full conversion of the Redemption-Exchange Units into LP Units of Brookfield Business Partners L.P.), plus the value of securities of the other Service Recipients (including the BBUC exchangeable shares) that are not held by the partnership, plus all outstanding debt with recourse to a Service Recipient, less all cash held by such entities. The base management fee for the three and nine months ended September 30, 2024 was $23 million and $67 million, respectively (September 30, 2023: $23 million and $69 million, respectively).

In its capacity as the holder of the Special LP Units, Brookfield is entitled to incentive distribution rights. The incentive distribution for the three and nine months ended September 30, 2024 was $nil (September 30, 2023: $nil).

An integral part of the partnership’s strategy is to participate with institutional investors in Brookfield-sponsored private equity funds that target acquisitions that suit the partnership’s investment mandate. In the normal course of business, the partnership and institutional investors have made commitments to Brookfield-sponsored private equity funds, and in connection therewith, the partnership, together with institutional investors, has access to short-term financing using the private equity funds’ credit facilities to facilitate investments that Brookfield has determined to be in the partnership’s best interests.

In addition, at the time of spin-off of the partnership from Brookfield in 2016, the partnership entered into indemnity agreements with Brookfield that relate to certain contracts that were in place prior to the spin-off. Under these indemnity agreements, Brookfield has agreed to indemnify the partnership for payments relating to such contracts.

(b)Other

Inclusive of those described above, the following table summarizes the transactions the partnership has entered into with related parties for the three and nine month periods ended September 30, 2024 and 2023:

	Three Months Ended September 30,				Nine Months Ended September 30,
(US$ MILLIONS)	2024		2023		2024		2023
Transactions during the period
Business services revenues (1)	$	73	$	42	$	183	$	115

____________________________________

(1)Within its business services segment, the partnership provides construction services to affiliates of Brookfield.

21

NOTES TO UNAUDITED INTERIM CONDENSED

CONSOLIDATED FINANCIAL STATEMENTS 

As at September 30, 2024 and December 31, 2023 and

for the three and nine months ended September 30, 2024 and2023

Inclusive of those described above, the following table summarizes balances with related parties as at September 30, 2024 and December 31, 2023:

(US$ MILLIONS)	September 30, 2024		December 31, 2023
Balances at end of period
Accounts and other receivable, net	$	443	$	182
Accounts payable and other (1)	348		346
Non-recourse borrowings in subsidiaries of the partnership	151		146
Interest of others in operating subsidiaries	4		4

____________________________________

(1)Includes $270 million related to a tax receivable agreement payable to related parties by the partnership’s advanced energy storage operation (December 31, 2023: $245 million).

NOTE 18. DERIVATIVE FINANCIAL INSTRUMENTS

The partnership’s activities expose it to a variety of financial risks, including market risk (currency risk, interest rate risk, commodity risk and other price risks), credit risk and liquidity risk. The partnership selectively uses derivative financial instruments principally to manage these risks.

The aggregate fair values of the partnership’s derivative financial instrument positions as at September 30, 2024 and December 31, 2023 were as follows:

	September 30, 2024				December 31, 2023
(US$ MILLIONS)	Financial Assets		Financial Liabilities		Financial Assets		Financial Liabilities
Foreign exchange contracts	$	90	$	(191)	$	75	$	(291)
Cross currency swaps	55		(50)		12		(58)
Interest rate derivatives	86		(94)		248		(123)
Commodities contracts	54		(13)		75		(36)
Total	$	285	$	(348)	$	410	$	(508)
Total current	$	162	$	(213)	$	120	$	(139)
Total non-current	$	123	$	(135)	$	290	$	(369)

NOTE 19. EQUITY

The partnership’s consolidated equity interests include LP Units held by the public and Brookfield, GP Units held by Brookfield, Redemption-Exchange Units held by Brookfield, Special LP Units held by Brookfield and BBUC exchangeable shares held by the public and Brookfield Holders, collectively, “Units” or “Unitholders” as described in Note 1, and $740 million of preferred securities held by Brookfield. As at September 30, 2024, Brookfield Holders owned approximately 66% of the partnership on a fully exchanged basis, assuming the exchange of all of the Redemption-Exchange Units and BBUC exchangeable shares. The partnership’s sole direct investment consists of 74,281,770 Managing General Partner Units of Holding LP (December 31, 2023: 74,281,767), through which the partnership holds all of its interests in its operating businesses.

For the three and nine months ended September 30, 2024, the partnership made distributions on the LP Units, GP Units, Redemption-Exchange Units and BBUC exchangeable shares of $14 million and $41 million, respectively or $0.0625 per Unit (September 30, 2023: $14 million and $41 million, respectively or $0.0625 per Unit). For the three and nine months ended September 30, 2024, the partnership declared distributions on the perpetual preferred equity securities held by Brookfield of $13 million and $39 million, respectively (September 30, 2023: $22 million and $66 million, respectively). For the three and nine months ended September 30, 2024, the partnership made distributions to others who have interests in operating subsidiaries of $235 million and $517 million, respectively (September 30, 2023: $345 million and $1,564 million, respectively). Distributions to others who have interests in operating subsidiaries were primarily related to the distribution of proceeds from the sale of the partnership’s road fuels operation and distributions from the partnership’s residential mortgage insurer.

22

NOTES TO UNAUDITED INTERIM CONDENSED

CONSOLIDATED FINANCIAL STATEMENTS 

As at September 30, 2024 and December 31, 2023 and

for the three and nine months ended September 30, 2024 and2023

(a)GP Units and LP Units

LP Units entitle the holder to their proportionate share of distributions. GP Units entitle the holder the right to govern the financial and operating policies of Brookfield Business Partners L.P. The GP Units are not quantitatively material to the financial statements and therefore have not been separately presented on the unaudited interim condensed consolidated statements of financial position.

The following table provides a continuity of GP Units and LP Units outstanding for the nine-month period ended September 30, 2024:

UNITS	GP Units	LP Units	Total
Authorized and issued
Opening balance	4	74,281,763	74,281,767
Conversion from BBUC exchangeable shares	—	3	3
Issued as at September 30, 2024	4	74,281,766	74,281,770

The weighted average number of LP Units outstanding for the three and nine months ended September 30, 2024 was 74.3 million (September 30, 2023: 74.6 million).

During the nine months ended September 30, 2024, the partnership did not repurchase any of its LP Units (September 30, 2023: 54,264 LP Units).

During the nine months ended September 30, 2024, Brookfield purchased 443,722 LP Units under the partnership’s normal course issuer bid (“NCIB”) (September 30, 2023: 374,533 LP Units).

Managing General Partner Units of the Holding LP are repurchased and canceled in connection with the repurchase and cancellation of LP Units. During the nine months ended September 30, 2024, nil Managing General Partner Units (September 30, 2023: 54,264) were repurchased and canceled as no LP Units were repurchased by the partnership.

Net income (loss) attributable to limited partners for the three and nine months ended September 30, 2024 was $103 million and $113 million, respectively (September 30, 2023: net income (loss) of $(15) million and $(6) million, respectively).

(b)Redemption-Exchange Units held by Brookfield

UNITS	Redemption-Exchange Units
Authorized and issued
Opening balance	69,705,497
Issued as at September 30, 2024	69,705,497

The weighted average number of Redemption-Exchange Units outstanding for the three and nine months ended September 30, 2024 was 69.7 million (September 30, 2023: 69.7 million).

As at September 30, 2024, the Holding LP had issued 69.7 million Redemption-Exchange Units to Brookfield (September 30, 2023: 69.7 million). Both the LP Units and GP Units issued by Brookfield Business Partners L.P. and the Redemption-Exchange Units issued by the Holding LP have the same economic attributes in all respects, except as noted below.

23

NOTES TO UNAUDITED INTERIM CONDENSED

CONSOLIDATED FINANCIAL STATEMENTS 

As at September 30, 2024 and December 31, 2023 and

for the three and nine months ended September 30, 2024 and2023

The Redemption-Exchange Units may, at the request of Brookfield, be redeemed in whole or in part, for cash in an amount equal to the market value of one of the partnership’s LP Units multiplied by the number of units to be redeemed (subject to certain customary adjustments). This right is subject to the partnership’s right, at its sole discretion, to elect to acquire any unit presented for redemption in exchange for one of the partnership’s LP Units (subject to certain customary adjustments). If the partnership elects not to exchange the Redemption-Exchange Units for LP Units, the Redemption-Exchange Units are required to be redeemed for cash. The Redemption-Exchange Units are presented as non-controlling interests since they relate to equity in a subsidiary that is not attributable, directly or indirectly, to Brookfield Business Partners L.P. Since this redemption right is subject to the partnership’s right, at its sole discretion, to satisfy the redemption request with LP Units of Brookfield Business Partners L.P. on a one-for-one basis, the Redemption-Exchange Units are classified as equity instruments in accordance with IAS 32, Financial Instruments: Presentation (“IAS 32”).

(c)BBUC exchangeable shares

The table below provides a continuity of BBUC exchangeable shares outstanding for the nine-month period ended September 30, 2024:

SHARES	BBUC exchangeable shares
Balance as at January 1, 2024	72,954,450
Converted to LP Units	(3)
Issued as at September 30, 2024	72,954,447

During the nine months ended September 30, 2024, 3 BBUC exchangeable shares were exchanged into LP Units (September 30, 2023: 673).

An additional Managing General Partner Unit is issued to the partnership each time an LP Unit is issued, including when a BBUC exchangeable share is exchanged by the holder thereof for an LP Unit. During the nine months ended September 30, 2024, 3 Managing General Partner Units (September 30, 2023: 673) were issued to the partnership in connection with the exchange of 3 BBUC exchangeable shares into LP Units (September 30, 2023: 673).

As at September 30, 2024, Brookfield Holders owned approximately 65% of the issued and outstanding BBUC exchangeable shares. The Brookfield Holders have agreed that all decisions to be made with respect to the BBUC exchangeable shares will be made jointly among the Brookfield Holders.

(d)Special limited partner units held by Brookfield

UNITS	Special limited partner units held by Brookfield
Authorized and issued
Opening balance	4
Issued as at September 30, 2024	4

The weighted average number of special limited partner units outstanding for the three and nine months ended September 30, 2024 was 4 (September 30, 2023: 4).

In its capacity as the holder of the Special LP Units, the special limited partner is entitled to incentive distributions which are calculated as 20% of the increase in the market value of the LP Units on a fully exchanged basis (assuming the exchange of all of the Redemption-Exchange Units and BBUC exchangeable shares) over an initial threshold based on the volume-weighted average price of the LP Units, subject to a high-water mark.

During the three months ended September 30, 2024, the volume-weighted average price was $20.22 per LP Unit, which was below the current incentive distribution threshold of $31.53 per LP Unit, resulting in no incentive distribution declared during the period (September 30, 2023: $nil).

24

NOTES TO UNAUDITED INTERIM CONDENSED

CONSOLIDATED FINANCIAL STATEMENTS 

As at September 30, 2024 and December 31, 2023 and

for the three and nine months ended September 30, 2024 and2023

(e)Preferred securities held by Brookfield

($US MILLIONS)	Preferred securities held by Brookfield
Authorized and issued
Opening balance	$	740
Balance as at September 30, 2024	$	740

Brookfield has subscribed for an aggregate of $15 million of preferred shares of three subsidiaries of the partnership. The preferred shares are entitled to receive a cumulative preferential cash dividend equal to 5% of their redemption value per annum as and when declared by the board of directors of the applicable entity and are redeemable at the option of the applicable entity at any time after the twentieth anniversary of their issuance. The partnership is not obligated to redeem the preferred shares and accordingly, the preferred shares have been determined to be equity instruments of the applicable entities in accordance with IAS 32 and are reflected as a component of non-controlling interests in the unaudited interim condensed consolidated statements of financial position.

The partnership has an agreement with Brookfield to subscribe for up to $1.5 billion of perpetual preferred equity securities of subsidiaries of the partnership. The preferred securities are redeemable at the option of Brookfield to the extent the partnership completes asset sales, financings or equity issuances. These perpetual preferred securities are presented as equity instruments in accordance with IAS 32, and accordingly the partnership has classified them as a component of non-controlling interests in the unaudited interim condensed consolidated statements of financial position and changes in equity. As of September 30, 2024, the amount subscribed from subsidiaries of the partnership was $725 million with an annual dividend of 7% (December 31, 2023: $725 million). The remaining capacity available on the commitment agreement with Brookfield is $25 million.

NOTE 20. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

Attributable to Limited Partners

The following tables present the changes in accumulated other comprehensive income (loss) reserves attributable to limited partners for the nine months ended September 30, 2024 and 2023:

(US$ MILLIONS)	Foreign currency translation		FVOCI		Other (1)		Accumulated other comprehensive income (loss)
Balance as at January 1, 2024	$	(189)	$	5	$	54	$	(130)
Other comprehensive income (loss)	(41)		16		—		(25)
Balance as at September 30, 2024	$	(230)	$	21	$	54	$	(155)

____________________________________

(1)Represents net investment hedges, cash flow hedges and other reserves.

(US$ MILLIONS)	Foreign currency translation		FVOCI		Other (1)		Accumulated other comprehensive income (loss)
Balance as at January 1, 2023	$	(247)	$	(8)	$	112	$	(143)
Other comprehensive income (loss)	(17)		9		(6)		(14)
Ownership changes	—		—		(2)		(2)
Balance as at September 30, 2023	$	(264)	$	1	$	104	$	(159)

____________________________________

(1)Represents net investment hedges, cash flow hedges and other reserves.

25

NOTES TO UNAUDITED INTERIM CONDENSED

CONSOLIDATED FINANCIAL STATEMENTS 

As at September 30, 2024 and December 31, 2023 and

for the three and nine months ended September 30, 2024 and2023

NOTE 21. DIRECT OPERATING COSTS

The partnership has no key employees or directors and does not remunerate key management personnel. Key decision makers of the partnership are all employees of Brookfield or its subsidiaries, which provide management services under the Master Services Agreement with Brookfield. Refer to Note 17.

Direct operating costs are costs incurred to earn revenues and include all attributable expenses. The following table presents direct operating costs by nature for the three and nine months ended September 30, 2024 and 2023.

	Three Months Ended September 30,				Nine Months Ended September 30,
(US$ MILLIONS)	2024		2023		2024		2023
Inventory costs	$	3,421	$	8,777	$	18,190	$	25,198
Subcontractor and consultant costs	1,060		826		2,593		2,291
Concession construction materials and labor costs	35		76		113		236
Depreciation and amortization expense	808		894		2,425		2,701
Compensation	978		1,487		2,939		4,596
Other direct costs	767		956		2,615		2,790
Total	$	7,069	$	13,016	$	28,875	$	37,812

Other direct costs include freight, cost of construction expensed and expected credit loss provisions on financial assets.

In the three and nine months ended September 30, 2024, the partnership recorded a reduction in inventory costs of $1,069 million related to the IRA Credits. Refer to Note 2(b)(i) for additional details.

The change in inventory costs for the three and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023 is primarily due to the disposition of the partnership's road fuels operation in the third quarter of 2024.

NOTE 22. REVENUES

(a)Revenues by type

The tables below summarize the partnership’s segment revenues by type of revenue for the three and nine months ended September 30, 2024:

	Three Months Ended September 30, 2024
(US$ MILLIONS)	Business services		Infrastructure services		Industrials		Total
Revenues by type
Revenues from contracts with customers	$	4,147	$	566	$	3,676	$	8,389
Other revenues	479		360		4		843
Total revenues	$	4,626	$	926	$	3,680	$	9,232

26

NOTES TO UNAUDITED INTERIM CONDENSED

CONSOLIDATED FINANCIAL STATEMENTS 

As at September 30, 2024 and December 31, 2023 and

for the three and nine months ended September 30, 2024 and2023

	Nine Months Ended September 30, 2024
(US$ MILLIONS)	Business services		Infrastructure services		Industrials		Total
Revenues by type
Revenues from contracts with customers	$	18,311	$	1,704	$	10,756	$	30,771
Other revenues	1,362		1,050		10		2,422
Total revenues	$	19,673	$	2,754	$	10,766	$	33,193

The change in revenues in the partnership’s Business services segment for the three and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023 is primarily due to the disposition of the partnership's road fuels operation in the third quarter of 2024.

The tables below summarize the partnership’s segment revenues by type of revenue for the three and nine months ended September 30, 2023:

	Three Months Ended September 30, 2023
(US$ MILLIONS)	Business services		Infrastructure services		Industrials		Total
Revenues by type
Revenues from contracts with customers	$	8,095	$	1,640	$	3,893	$	13,628
Other revenues	420		346		5		771
Total revenues	$	8,515	$	1,986	$	3,898	$	14,399

	Nine Months Ended September 30, 2023
(US$ MILLIONS)	Business services		Infrastructure services		Industrials		Total
Revenues by type
Revenues from contracts with customers	$	23,211	$	4,942	$	11,316	$	39,469
Other revenues	1,116		1,061		17		2,194
Total revenues	$	24,327	$	6,003	$	11,333	$	41,663

(b)Timing of recognition of revenues from contracts with customers

The tables below summarize the partnership’s segment revenues by timing of revenue recognition for the total revenues from contracts with customers for the three and nine months ended September 30, 2024:

	Three Months Ended September 30, 2024
(US$ MILLIONS)	Business services		Infrastructure services		Industrials		Total
Timing of revenue recognition
Goods and services provided at a point in time	$	2,445	$	198	$	3,623	$	6,266
Services transferred over a period of time	1,702		368		53		2,123
Total revenues from contracts with customers	$	4,147	$	566	$	3,676	$	8,389

27

NOTES TO UNAUDITED INTERIM CONDENSED

CONSOLIDATED FINANCIAL STATEMENTS 

As at September 30, 2024 and December 31, 2023 and

for the three and nine months ended September 30, 2024 and2023

	Nine Months Ended September 30, 2024
(US$ MILLIONS)	Business services		Infrastructure services		Industrials		Total
Timing of revenue recognition
Goods and services provided at a point in time	$	13,835	$	575	$	10,592	$	25,002
Services transferred over a period of time	4,476		1,129		164		5,769
Total revenues from contracts with customers	$	18,311	$	1,704	$	10,756	$	30,771

The tables below summarize the partnership’s segment revenues by timing of revenue recognition for the total revenues from contracts with customers for the three and nine months ended September 30, 2023:

	Three Months Ended September 30, 2023
(US$ MILLIONS)	Business services		Infrastructure services		Industrials		Total
Timing of revenue recognition
Goods and services provided at a point in time	$	6,587	$	645	$	3,799	$	11,031
Services transferred over a period of time	1,508		995		94		2,597
Total revenues from contracts with customers	$	8,095	$	1,640	$	3,893	$	13,628

	Nine Months Ended September 30, 2023
(US$ MILLIONS)	Business services		Infrastructure services		Industrials		Total
Timing of revenue recognition
Goods and services provided at a point in time	$	18,938	$	1,695	$	11,027	$	31,660
Services transferred over a period of time	4,273		3,247		289		7,809
Total revenues from contracts with customers	$	23,211	$	4,942	$	11,316	$	39,469

(c)Revenues by geography

The tables below summarize the partnership’s segment revenues by geography for the three and nine months ended September 30, 2024:

	Three Months Ended September 30, 2024
(US$ MILLIONS)	Business services		Infrastructure services		Industrials		Total
United States of America	$	394	$	185	$	1,561	$	2,140
United Kingdom	1,703		77		78		1,858
Australia	1,356		38		36		1,430
Europe	170		200		892		1,262
Brazil	254		21		303		578
Mexico	—		—		339		339
Canada	149		25		101		275