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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Financial assets classification

The following table provides the details of financial instruments and their associated financial instrument classifications as at December 31, 2025:


(US$ MILLIONS)							Total
MEASUREMENT BASIS	FVTPL		FVOCI		Amortized cost

Financial assets
Cash and cash equivalents	$	—	$	—	$	3,546	$	3,546
Accounts and other receivable, net (current and non-current) (1)	—		—		7,725		7,725

Financial assets (current and non-current) (2) (3)	879		5,072		6,532		12,483
Total (4)	$	879	$	5,072	$	17,803	$	23,754
Financial liabilities
Accounts payable and other (current and non-current) (2) (5)	$	144	$	57	$	7,046	$	7,247
Borrowings (current and non-current)	—		—		43,749		43,749
Total	$	144	$	57	$	50,795	$	50,996

____________________________________

(1)Includes a receivable of $2,412 million related to the tax benefits at the partnership’s advanced energy storage operation. Refer to Note 2(ad)(i) for additional details.

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

(3)FVOCI includes $584 million of units in a new evergreen private equity fund managed by Brookfield Asset Management. Refer to Note 25(a)(i) for additional information.

(4)Total financial assets include $3,284 million of assets pledged as collateral.

(5)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 $6,941 million.

The following table provides the details of financial instruments and their associated financial instrument classifications as at December 31, 2024:


(US$ MILLIONS)							Total
MEASUREMENT BASIS	FVTPL		FVOCI		Amortized cost
Financial assets
Cash and cash equivalents	$	—	$	—	$	3,239	$	3,239
Accounts and other receivable, net (current and non-current) (1)	—		—		6,279		6,279

Financial assets (current and non-current) (2)	937		4,767		6,667		12,371
Total (3)	$	937	$	4,767	$	16,185	$	21,889
Financial liabilities
Accounts payable and other (2) (4)	$	170	$	187	$	8,194	$	8,551
Borrowings (current and non-current)	—		—		38,862		38,862
Total	$	170	$	187	$	47,056	$	47,413

____________________________________

(1)Includes a receivable of $1,341 million related to the tax benefits at the partnership’s advanced energy storage operation. Refer to Note 2(ad)(i) for additional details.

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

(3)Total financial assets include $3,032 million of assets pledged as collateral.

(4)Includes derivative liabilities, and excludes provisions, decommissioning liabilities, deferred revenue, insurance contract liabilities, work in progress, post-employment benefits, liabilities associated with assets held for sale and various taxes and duties of $8,140 million.


(US$ MILLIONS)	2025		2024
Current
Marketable securities	$	544	$	571
Restricted cash	83		165
Derivative assets	95		185
Loans and notes receivable	328		396
Other financial assets (1)	180		220
Total current	$	1,230	$	1,537
Non-current
Marketable securities (2)	$	3,093	$	2,333
Restricted cash	68		63
Derivative assets	135		337
Loans and notes receivable (3)	5,774		5,734
Other financial assets (1)	2,183		2,367
Total non-current	$	11,253	$	10,834

____________________________________

(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)Marketable securities include $584 million of units in a new evergreen private equity fund managed by Brookfield Asset Management. Refer to Note 25(a)(i) for additional information.

(3)Loans and notes receivable includes $5,110 million (2024: $5,014 million) of mortgage receivables related to the partnership’s Australian asset manager and lender.


(US$ MILLIONS)	2025		2024
Current, net	$	6,550	$	5,178
Non-current, net
Accounts receivable	397		449
Retainer on customer contract	58		55
Billing rights	720		597
Total non-current, net	$	1,175	$	1,101
Total (1)	$	7,725	$	6,279

____________________________________

(1)Includes a receivable of $2,412 million (December 31, 2024: $1,341 million) related to the tax benefits at the partnership’s advanced energy storage operation. Refer to Note 2(ad)(i) for additional details.

The following table summarizes the change in the loss allowance for bad debts on accounts and other receivables for the years ended December 31, 2025 and 2024:


(US$ MILLIONS)	2025		2024
Loss allowance - beginning	$	348	$	204
Add: increase in allowance	74		240
Deduct: bad debt write-offs	(52)		(50)
Foreign currency translation and other	45		(46)
Loss allowance - ending	$	415	$	348

Schedule of Financial liabilities classification

The following table provides the details of financial instruments and their associated financial instrument classifications as at December 31, 2025:


(US$ MILLIONS)							Total
MEASUREMENT BASIS	FVTPL		FVOCI		Amortized cost

Financial assets
Cash and cash equivalents	$	—	$	—	$	3,546	$	3,546
Accounts and other receivable, net (current and non-current) (1)	—		—		7,725		7,725

Financial assets (current and non-current) (2) (3)	879		5,072		6,532		12,483
Total (4)	$	879	$	5,072	$	17,803	$	23,754
Financial liabilities
Accounts payable and other (current and non-current) (2) (5)	$	144	$	57	$	7,046	$	7,247
Borrowings (current and non-current)	—		—		43,749		43,749
Total	$	144	$	57	$	50,795	$	50,996

____________________________________

(1)Includes a receivable of $2,412 million related to the tax benefits at the partnership’s advanced energy storage operation. Refer to Note 2(ad)(i) for additional details.

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

(3)FVOCI includes $584 million of units in a new evergreen private equity fund managed by Brookfield Asset Management. Refer to Note 25(a)(i) for additional information.

(4)Total financial assets include $3,284 million of assets pledged as collateral.

The following table provides the details of financial instruments and their associated financial instrument classifications as at December 31, 2024:


(US$ MILLIONS)							Total
MEASUREMENT BASIS	FVTPL		FVOCI		Amortized cost
Financial assets
Cash and cash equivalents	$	—	$	—	$	3,239	$	3,239
Accounts and other receivable, net (current and non-current) (1)	—		—		6,279		6,279

Financial assets (current and non-current) (2)	937		4,767		6,667		12,371
Total (3)	$	937	$	4,767	$	16,185	$	21,889
Financial liabilities
Accounts payable and other (2) (4)	$	170	$	187	$	8,194	$	8,551
Borrowings (current and non-current)	—		—		38,862		38,862
Total	$	170	$	187	$	47,056	$	47,413

____________________________________

(1)Includes a receivable of $1,341 million related to the tax benefits at the partnership’s advanced energy storage operation. Refer to Note 2(ad)(i) for additional details.

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

(3)Total financial assets include $3,032 million of assets pledged as collateral.

Schedule of 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, 2025 and 2024:


	2025						2024
(US$ MILLIONS)	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Financial assets
Common shares (1)	$	32	$	—	$	615	$	60	$	—	$	—
Corporate and government bonds	42		3,192		—		21		3,033		249


Derivative assets	—		230		—		—		522		—
Other financial assets (2)	211		666		963		441		634		744
	$	285	$	4,088	$	1,578	$	522	$	4,189	$	993
Financial liabilities
Derivative liabilities	$	—	$	176	$	—	$	—	$	332	$	—
Other financial liabilities	—		—		25		—		—		25
	$	—	$	176	$	25	$	—	$	332	$	25

____________________________________

(1)Level 3 common shares include $584 million of units in a new evergreen private equity fund managed by Brookfield Asset Management. Refer to Note 25(a)(i) for additional information.

(2)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 other financial assets are primarily convertible preferred securities in the partnership’s audience measurement operation and secured debentures.

There were no transfers between levels during the year ended December 31, 2025.

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/liability	Carrying value December 31, 2025		Carrying value December 31, 2024		Valuation technique(s) and key input(s)
Corporate and government bonds	$	3,192	$	3,033	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	$	230	$	522	Fair value of derivative contracts incorporate 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	$	666	$	634	Other financial assets primarily represent 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	$	176	$	332	Fair value of derivative contracts incorporate 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 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, 2025 and 2024:


	2025						2024
(US$ MILLIONS)	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Financial assets
Common shares (1)	$	32	$	—	$	615	$	60	$	—	$	—
Corporate and government bonds	42		3,192		—		21		3,033		249


Derivative assets	—		230		—		—		522		—
Other financial assets (2)	211		666		963		441		634		744
	$	285	$	4,088	$	1,578	$	522	$	4,189	$	993
Financial liabilities
Derivative liabilities	$	—	$	176	$	—	$	—	$	332	$	—
Other financial liabilities	—		—		25		—		—		25
	$	—	$	176	$	25	$	—	$	332	$	25

____________________________________

(1)Level 3 common shares include $584 million of units in a new evergreen private equity fund managed by Brookfield Asset Management. Refer to Note 25(a)(i) for additional information.

There were no transfers between levels during the year ended December 31, 2025.

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/liability	Carrying value December 31, 2025		Carrying value December 31, 2024		Valuation technique(s) and key input(s)
Corporate and government bonds	$	3,192	$	3,033	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	$	230	$	522	Fair value of derivative contracts incorporate 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	$	666	$	634	Other financial assets primarily represent 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	$	176	$	332	Fair value of derivative contracts incorporate 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 material Level 3 financial instruments:

(US$ MILLIONS)

Type of asset/liability

Carrying value December 31, 2025

Carrying value December 31, 2024

Valuation technique(s)

Significant unobservable input(s)

Relationship of unobservable input(s) to fair value

Other financial assets - secured debentures

Discounted cash flows

Future cash flows

Discount rate

Increases (decreases) in future cash flows increase (decrease) fair value

Increases (decreases) in discount rate decrease (increase) fair value

Common shares and other financial assets - equity instruments designated as measured at FVOCI

989

204

Discounted cash flows

Future cash flows

Discount rate

Increases (decreases) in future cash flows increase (decrease) fair value

Increases (decreases) in discount rate decrease (increase) fair value

Other financial assets - debt instruments measured at FVTPL

511

466

Discounted cash flows

Future cash flows

Discount rate

Increases (decreases) in future cash flows increase (decrease) fair value

Increases (decreases) in discount rate decrease (increase) fair value

The following table presents the change in the balance of financial assets classified as Level 3 for years ended December 31, 2025 and 2024:


(US$ MILLIONS)	2025		2024

Balance at beginning of year	$	993	$	828
Fair value change recorded in net income	22		14
Fair value change recorded in other comprehensive income	197		18
Additions	761		177
Disposals	(421)		(48)
Foreign currency translation and other	26		4
Balance at end of year	$	1,578	$	993

The following table presents the change in the balance of financial liabilities classified as Level 3 for the years ended December 31, 2025 and 2024:


(US$ MILLIONS)	2025		2024

Balance at beginning of year	$	25	$	284
Fair value change recorded in net income	—		(151)
Fair value change recorded in other comprehensive income	—		(1)
Additions	—		12
Disposals	—		(117)
Foreign currency translation and other	—		(2)
Balance at end of year	$	25	$	25

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 material Level 3 financial instruments:

(US$ MILLIONS)

Type of asset/liability

Carrying value December 31, 2025

Carrying value December 31, 2024

Valuation technique(s)

Significant unobservable input(s)

Relationship of unobservable input(s) to fair value

Other financial assets - secured debentures

Discounted cash flows

Future cash flows

Discount rate

Increases (decreases) in future cash flows increase (decrease) fair value

Increases (decreases) in discount rate decrease (increase) fair value

Common shares and other financial assets - equity instruments designated as measured at FVOCI

989

204

Discounted cash flows

Future cash flows

Discount rate

Increases (decreases) in future cash flows increase (decrease) fair value

Increases (decreases) in discount rate decrease (increase) fair value

Other financial assets - debt instruments measured at FVTPL

511

466

Discounted cash flows

Future cash flows

Discount rate

Increases (decreases) in future cash flows increase (decrease) fair value

Increases (decreases) in discount rate decrease (increase) fair value

The following table presents the change in the balance of financial assets classified as Level 3 for years ended December 31, 2025 and 2024:


(US$ MILLIONS)	2025		2024

Balance at beginning of year	$	993	$	828
Fair value change recorded in net income	22		14
Fair value change recorded in other comprehensive income	197		18
Additions	761		177
Disposals	(421)		(48)
Foreign currency translation and other	26		4
Balance at end of year	$	1,578	$	993

The following table presents the change in the balance of financial liabilities classified as Level 3 for the years ended December 31, 2025 and 2024:


(US$ MILLIONS)	2025		2024

Balance at beginning of year	$	25	$	284
Fair value change recorded in net income	—		(151)
Fair value change recorded in other comprehensive income	—		(1)
Additions	—		12
Disposals	—		(117)
Foreign currency translation and other	—		(2)
Balance at end of year	$	25	$	25