EX-99.1 2 bepcq32023-991.htm EX-99.1 Document

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BROOKFIELD RENEWABLE CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
UNAUDITED
(MILLIONS)
NotesSeptember 30, 2023December 31, 2022
Assets 
Current assets   
Cash and cash equivalents12$513 $642 
Restricted cash1345 44 
Trade receivables and other current assets141,086 1,321 
Financial instrument assets4111 106 
Due from related parties17961 615 
Assets held for sale 698 
  2,716 3,426 
Financial instrument assets4342 481 
Equity-accounted investments11554 451 
Property, plant and equipment, at fair value739,205 37,828 
Intangible assets37 208 
Goodwill807 723 
Deferred income tax assets656 70 
Other long-term assets 114 101 
Total Assets $43,801 $43,288 
Liabilities 
Current liabilities 
Accounts payable and accrued liabilities15$628 $621 
Financial instrument liabilities4207 270 
Due to related parties17304 464 
Non-recourse borrowings81,027 1,299 
Provisions14 16 
Liabilities directly associated with assets held for sale 217 
BEPC exchangeable and class B shares103,905 4,364 
  6,085 7,251 
Financial instrument liabilities4496 578 
Non-recourse borrowings812,743 12,416 
Deferred income tax liabilities65,740 5,263 
Provisions371 341 
Other long-term liabilities 608 615 
Equity 
Non-controlling interests 
Participating non-controlling interests – in operating subsidiaries910,809 10,680 
Participating non-controlling interests – in a holding subsidiary held by the partnership9273 271 
The partnership106,676 5,873 
Total Equity 17,758 16,824 
Total Liabilities and Equity $43,801 $43,288 

The accompanying notes are an integral part of these interim consolidated financial statements.
Approved on behalf of Brookfield Renewable Corporation:
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Patricia Zuccotti
Director
David Mann
Director
Brookfield Renewable CorporationInterim Consolidated Financial Statements and Notes
September 30, 2023
Page 2


BROOKFIELD RENEWABLE CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
UNAUDITED
(MILLIONS)
 Three months ended September 30Nine months ended September 30
Notes2023202220232022
Revenues17$934 $896 $2,901 $2,822 
Other income 95 147 79 
Direct operating costs(1)
 (388)(293)(1,000)(880)
Management service costs17(26)(37)(94)(132)
Interest expense8(308)(264)(929)(747)
Share of earnings (loss) from equity-accounted investments11(7)(7)
Foreign exchange and financial instruments (loss) gain421 (68)129 (98)
Depreciation7(320)(288)(953)(870)
Other 3 (28)14 (54)
Remeasurement of BEPC exchangeable and class B shares101,393 603 710 774 
Income tax (expense) recovery 
Current6(7)(31)(79)(98)
Deferred6(20)16 (29)(25)
  (27)(15)(108)(123)
Net income $1,370 $517 $810 $772 
Net income attributable to: 
Non-controlling interests 
Participating non-controlling interests – in operating subsidiaries9$29 $35 $240 $215 
Participating non-controlling interests – in a holding subsidiary held by the partnership91 4 
The partnership91,340 480 566 550 
  $1,370 $517 $810 $772 
The accompanying notes are an integral part of these interim consolidated financial statements.
(1) Direct operating costs exclude depreciation expense disclosed below.
Brookfield Renewable CorporationInterim Consolidated Financial Statements and Notes
September 30, 2023
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BROOKFIELD RENEWABLE CORPORATION
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
UNAUDITED
(MILLIONS)
 Three months ended September 30Nine months ended September 30
Notes2023202220232022
Net income $1,370 $517 $810 $772 
Other comprehensive income (loss) that will not be reclassified to net income: 
Revaluations of property, plant and equipment7 — (49)(2)
Actuarial (loss) gain on defined benefit plans (3)— (8)12 
Deferred income taxes on above items (8)— 5 (5)
Unrealized gain on investments in equity securities4  
Total items that will not be reclassified to net income (11)(52)
Other comprehensive income (loss) that may be reclassified to net income: 
Foreign currency translation (6)(476)826 (529)
Gains (losses) arising during the period on financial instruments designated as cash-flow hedges43 168 (42)
Unrealized gain (loss) on foreign exchange swap net investment hedges420 51 (21)66 
Reclassification adjustments for amounts recognized in net income4(7)38 (87)128 
Deferred income taxes on above items (7)(17)(17)(56)
Equity-accounted investments112 — 2 
Total items that may be reclassified subsequently to net income 5 (400)871 (432)
Other comprehensive income (loss) (6)(399)819 (426)
Comprehensive income $1,364 $118 $1,629 $346 
Comprehensive income attributable to: 
Non-controlling interests 
Participating non-controlling interests – in operating subsidiaries9$84 $(240)$818 $(163)
Participating non-controlling interests – in a holding subsidiary held by the partnership9(3)(8)21 
The partnership91,283 366 790 508 
  $1,364 $118 $1,629 $346 


The accompanying notes are an integral part of these interim consolidated financial statements.
Brookfield Renewable CorporationInterim Consolidated Financial Statements and Notes
September 30, 2023
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BROOKFIELD RENEWABLE CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Accumulated other comprehensive incomeNon-controlling interests
UNAUDITED
THREE MONTHS ENDED SEPTEMBER 30
(MILLIONS)
The partnershipForeign
currency
translation
Revaluation
surplus
OtherTotal
Participating non-controlling interests in a holding subsidiary held by the partnership
Participating non-controlling interests in operating subsidiaries
Total
equity
Balance, as at June 30, 2023$(3,930)$(1,335)$10,587 $62 $5,384 $289 $10,821 $16,494 
Net income 1,340    1,340 1 29 1,370 
Other comprehensive income (loss) (42)(8)(7)(57)(4)55 (6)
Capital contributions      32 32 
Disposals (Note 3)
      (30)(30)
Dividends declared     (13)(103)(116)
Other1 (1)7 2 9  5 14 
Change in period1,341 (43)(1)(5)1,292 (16)(12)1,264 
Balance, as at September 30, 2023$(2,589)$(1,378)$10,586 $57 $6,676 $273 $10,809 $17,758 
Balance, as at June 30, 2022$(4,738)$(1,507)$10,101 $(44)$3,812 $261 $9,755 $13,828 
Net income480 — — — 480 35 517 
Other comprehensive income (loss)— (129)— 15 (114)(10)(275)(399)
Capital contributions— — — — — — 88 88 
Disposal— — — — — (2)(54)(56)
Dividends declared— — — — — (7)(244)(251)
Other(1)(1)— (1)
Change in period481 (130)(1)16 366 (15)(451)(100)
Balance, as at September 30, 2022$(4,257)$(1,637)$10,100 $(28)$4,178 $246 $9,304 $13,728 
The accompanying notes are an integral part of these interim consolidated financial statements.
Brookfield Renewable CorporationInterim Consolidated Financial Statements and Notes
September 30, 2023
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BROOKFIELD RENEWABLE CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Accumulated other comprehensive incomeNon-controlling interests
UNAUDITED
NINE MONTHS ENDED SEPTEMBER 30
(MILLIONS)
The partnershipForeign
currency
translation
Revaluation
surplus
OtherTotalParticipating non-controlling interests – in a holding subsidiary held by the partnershipParticipating non-controlling interests – in operating subsidiariesTotal
equity
Balance, as at December 31, 2022$(3,186)$(1,582)$10,615 $26 $5,873 $271 $10,680 $16,824 
Net income566    566 4 240 810 
Other comprehensive income 201 (8)31 224 17 578 819 
Capital contributions      135 135 
Disposal (Note 3)
34  (34)   (418)(418)
Dividends declared     (17)(420)(437)
Other(3)3 13  13 (2)14 25 
Change in period597 204 (29)31 803 2 129 934 
Balance, as at September 30, 2023$(2,589)$(1,378)$10,586 $57 $6,676 $273 $10,809 $17,758 
Balance, as at December 31, 2021$(4,834)$(1,568)$10,125 $(56)$3,667 $261 $10,297 $14,225 
Net income550 — — — 550 215 772 
Other comprehensive income (loss)— (69)(1)28 (42)(6)(378)(426)
Capital contributions— — — — — — 284 284 
Disposal27 — (27)— — (2)(54)(56)
Dividends declared— — — — — (16)(1,042)(1,058)
Other— — — (18)(13)
Change in period577 (69)(25)28 511 (15)(993)(497)
Balance, as at September 30, 2022$(4,257)$(1,637)$10,100 $(28)$4,178 $246 $9,304 $13,728 
The accompanying notes are an integral part of these interim consolidated financial statements.
Brookfield Renewable CorporationInterim Consolidated Financial Statements and Notes
September 30, 2023
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BROOKFIELD RENEWABLE CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
UNAUDITED Three months ended September 30Nine months ended September 30
(MILLIONS)Notes2023202220232022
Operating activities   
Net income $1,370 $517 $810 $772 
Adjustments for the following non-cash items:
 
Depreciation
7320 288 953 870 
 Unrealized financial instruments (gain) loss4(27)128 (119)212 
Share of (earnings) loss from equity-accounted investments117 (2)7 (1)
Deferred income tax (recovery) expense620 (16)29 25 
Other non-cash items
 (56)15 (27)10 
Remeasurement of BEPC exchangeable shares and class B shares 10(1,393)(603)(710)(774)
Dividends received from equity-accounted investments114 — 6 
245 327 949 1,116 
Changes in due to or from related parties25 20 28 35 
Net change in working capital balances 18 (57)155 (286)
  288 290 1,132 865 
Financing activities 
Proceeds from non-recourse borrowings516 258 1,212 2,591 
Repayment of non-recourse borrowings
8
(483)(229)(1,485)(1,906)
Capital contributions from non-controlling interests932 88 135 284 
Return of capital to non-controlling interests(30)(54)(30)(54)
Exchangeable share issuance — 251 — 
Distributions paid:    
To participating non-controlling interests9(116)(251)(437)(1,058)
Related party borrowings, net(229)172 (549)181 
  (310)(16)(903)38 
Investing activities     
Acquisitions, net of cash and cash equivalents, in acquired entity — (81)— 
Acquisition in equity-accounted investments(4)(48)(7)(48)
Investment in property, plant and equipment7(185)(210)(505)(624)
Proceeds from disposal of assets106 109 92 
Proceeds from disposal of securities31 — 134 — 
Restricted cash and other(1)33 (25)12 
(53)(221)(375)(568)
Foreign exchange gain (loss) on cash(10)(21)17 (38)
Cash and cash equivalents
Increase (decrease)(85)32 (129)297 
Net change in cash classified within assets held for sale3 —  — 
Balance, beginning of period595 790 642 525 
Balance, end of period$513 $822 $513 $822 
Supplemental cash flow information:
Interest paid
$272 $234 $872 $709 
Interest received
$42 $$71 $18 
Income taxes paid$25 $14 $138 $47 
The accompanying notes are an integral part of these interim consolidated financial statements.
Brookfield Renewable CorporationInterim Consolidated Financial Statements and Notes
September 30, 2023
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BROOKFIELD RENEWABLE CORPORATION
NOTES TO THE UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
Brookfield Renewable Corporation (“BEPC” or the “company) and its subsidiaries, own and operate a portfolio of renewable power and sustainable solution assets primarily in North America, South America and Europe. BEPC was formed as a corporation established under the British Columbia Business Corporation Act on September 9, 2019 and is a subsidiary of Brookfield Renewable Partners L.P. (“BEP”), or, collectively with its controlled subsidiaries, including BEPC (“Brookfield Renewable”, or, collectively with its controlled subsidiaries, excluding BEPC, (the “partnership”). Brookfield Corporation (“Brookfield Corporation” or together with its controlled subsidiaries, other than Brookfield Renewable, and unless the context otherwise requires, includes Brookfield Corporation, “Brookfield”) is our company’s ultimate parent.
The class A exchangeable subordinate voting shares (“BEPC exchangeable shares”) of Brookfield Renewable Corporation are listed on the New York Stock Exchange and the Toronto Stock Exchange under the symbol “BEPC”.
The registered head office of Brookfield Renewable Corporation is 250 Vesey Street, New York, NY, United States.
Notes to the consolidated financial statementsPage
1.Basis of presentation and significant accounting policies
2.Acquisitions
3.Disposal of assets
4.Risk management and financial instruments
5.Segmented information
6.Income taxes
7.Property, plant and equipment
8.Borrowings
9.Non-controlling interests
10.BEPC Exchangeable shares, BEPC Class B shares and BEPC Class C shares
11.Equity-accounted investments
12.Cash and cash equivalents
13.Restricted cash
14.Trade receivables and other current assets
15.Accounts payable and accrued liabilities
16.Commitments, contingencies and guarantees
17.Related party transactions
18.Subsequent events


Brookfield Renewable CorporationInterim Consolidated Financial Statements and Notes
September 30, 2023
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1. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES
(a) Statement of compliance
The interim consolidated financial statements have been prepared in accordance with IAS 34, Interim Financial Reporting.
Certain information and footnote disclosures normally included in the annual audited consolidated financial statements prepared in accordance with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”), have been omitted or condensed. These interim consolidated financial statements should be read in conjunction with the company’s December 31, 2022 audited consolidated financial statements. The interim consolidated statements have been prepared on a basis consistent with the accounting policies disclosed in the December 31, 2022 audited consolidated financial statements.
The interim consolidated financial statements are unaudited and reflect adjustments (consisting of normal recurring adjustments) that are, in the opinion of management, necessary to provide a fair statement of results for the interim periods in accordance with IFRS.
The results reported in these interim consolidated financial statements should not be regarded as necessarily indicative of results that may be expected for an entire year. The policies set out below are consistently applied to all periods presented, unless otherwise noted. 
These interim financial statements were authorized for issuance by the Board of Directors of the company and authorized of issue on November 3, 2023.
Certain comparative figures have been reclassified to conform to the current year’s presentation.
References to $, €, R$, and COP are to United States (“U.S.”) dollars, Euros, Brazilian reais, and Colombian pesos, respectively.
All figures are presented in millions of U.S. dollars unless otherwise noted.
(b) Basis of presentation
The interim consolidated financial statements have been prepared on the basis of historical cost, except for the revaluation of property, plant and equipment and certain assets and liabilities which have been measured at fair value. Cost is recorded based on the fair value of the consideration given in exchange for assets.
(c) Consolidation
These interim consolidated financial statements include the accounts of the company and its subsidiaries, which are the entities over which the company has control. An investor controls an investee when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Non-controlling interests in the equity of the company’s subsidiaries are shown separately in equity in the interim consolidated statements of financial position.
(d) Recently adopted accounting standards
IFRS Interpretations Committee Agenda Decision - Demand Deposits with Restriction on Use Arising from a
Contract with a Third Party (IAS 7 Statement of Cash Flows)
In April 2022, the IFRS Interpretations Committee (“IFRS IC”) concluded that restrictions on the use of a demand deposit arising from a contract with a third party do not result in the deposit no longer being cash, unless those restrictions change the nature of the deposit in a way that it would no longer meet the definition of cash in IAS 7 Statement of Cash Flows. In the fact pattern described in the request, the contractual restrictions on the use of the amounts held in the demand deposit did not change the nature of the deposit — the entity can access those amounts on demand. Therefore, the entity should include the demand deposit as a component of “cash and cash equivalents” in its statement of financial position and in its statement of cash flows. The company has completed the assessment and implemented its transition plan that addresses the impact of this IFRS IC agenda decision. The effect on the consolidated statements of cash flows is an increase to the ending balance of Cash and cash equivalents by $257 million, and a decrease of $37 million and $141 million to cash used in investing activities, respectively, for the three and nine months ended September 30, 2022.
Brookfield Renewable CorporationInterim Consolidated Financial Statements and Notes
September 30, 2023
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International Tax Reform - Amendments to IAS 12 - Pillar Two model rules
In May 2023, the IASB issued amendments to IAS 12 “Income Taxes” to give entities temporary mandatory relief from accounting for deferred taxes arising from the Organization for Economic Co-operation and Developments (“OECD”) international tax reform. The amendments are effective immediately upon their issue and retrospectively in accordance with IAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors,” except for some targeted disclosure requirements which become effective for annual reporting periods on or after January 1, 2023. The Company has applied the temporary exception to recognizing and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes.
(e) Future changes in accounting policies
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 amendments to IAS 1 apply to annual reporting periods beginning on or after January 1, 2024. The company is currently assessing the impact of these amendments.
There are currently no other future changes to IFRS with potential impact on the company.
2. ACQUISITIONS
Brazil Wind Portfolio
On March 3, 2023, the company, together with its institutional partners, completed the acquisition of 100% interest in a 136 MW portfolio of wind assets in Brazil. The purchase price of this acquisition, including working capital and closing adjustments, was $95 million. The company holds an approximately 22.5% economic interest.
The preliminary purchase price allocations, at fair value, as at September 30, 2023, with respect to the acquisitions are as follows:
(MILLIONS)Brazil Wind Portfolio
Cash and cash equivalents$10 
Trade receivables and other current assets
Property, plant and equipment125 
Other non-current assets19 
Accounts payable and accrued liabilities(16)
Current portion of non-recourse borrowings(4)
Non-recourse borrowings(46)
Provisions(2)
Fair value of net assets acquired95 
Purchase price$95 

3. DISPOSAL OF ASSETS
On March 17, 2023, the company’s institutional partners completed the sale of a 78% interest in a 378 MW operating hydroelectric portfolio in the U.S., of which 28% was sold to affiliates of Brookfield Corporation. The company retained its 22% interest in the investment and accordingly, did not receive proceeds from the sale. Subsequent to the completion of the sale, the company no longer consolidates this investment and recognized its interest as an equity-accounted investment. As a result of the disposition, the company derecognized $667 million of total assets and $191 million of total liabilities from the consolidated statements of financial positions. The company’s post-tax portion of the accumulated revaluation surplus of $34 million was reclassified from accumulated other comprehensive income directly to equity and presented as a Disposals item in the consolidated statements of changes in equity.
Brookfield Renewable CorporationInterim Consolidated Financial Statements and Notes
September 30, 2023
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On September 20, 2023, the company completed the sale of its 100% interest in a 95 MW portfolio of wind assets in Uruguay for proceeds of approximately $112 million ($29 million net to the company) net of transaction fees. As a result of the disposition, the company derecognized $238 million of total assets and $193 million of total liabilities from the consolidated statements of financial position. This resulted in a gain on disposition of $72 million ($18 million net to the company) recognized within Other income in the consolidated statements of income.

4. RISK MANAGEMENT AND FINANCIAL INSTRUMENTS
RISK MANAGEMENT
The company’s activities expose it to a variety of financial risks, including market risk (i.e., commodity price risk, interest rate risk, and foreign currency risk), credit risk and liquidity risk. The company uses financial instruments primarily to manage these risks.
Fair value disclosures
Fair value 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 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, management looks primarily to external readily observable market inputs such as interest rate yield curves, currency rates, commodity prices and, as applicable, credit spreads.
A fair value measurement of a non-financial asset is the consideration that would be received in an orderly transaction between market participants, considering the highest and best use of the asset.
Assets and liabilities measured at fair value are categorized into one of three hierarchy levels, described below. Each level is based on the transparency of the inputs used to measure the fair values of assets and liabilities.
Level 1 – inputs are based on unadjusted quoted prices in active markets for identical assets and liabilities;
Level 2 – inputs, other than quoted prices in Level 1, that are observable for the asset or liability, either directly or indirectly; and
Level 3 – inputs for the asset or liability that are not based on observable market data.
Brookfield Renewable CorporationInterim Consolidated Financial Statements and Notes
September 30, 2023
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The following table presents the company's assets and liabilities including energy derivative contracts, power purchase agreements accounted for under IFRS 9 (“IFRS 9 PPAs”), interest rate swaps, foreign exchange swaps and tax equity measured and disclosed at fair value classified by the fair value hierarchy:
September 30, 2023December 31, 2022
(MILLIONS)Level 1Level 2Level 3TotalTotal
Assets measured at fair value:
Cash and cash equivalents$513 $ $ $513 $642 
Restricted cash(1)
77   77 68 
Financial instrument assets(1)
IFRS 9 PPAs  5 5 
Energy derivative contracts 44  44 33 
Interest rate swaps 227  227 261 
Foreign exchange swaps 9  9 — 
Investments in equity securities  168 168 292 
Property, plant and equipment  39,205 39,205 37,828 
Liabilities measured at fair value:
Financial instrument liabilities(1)
IFRS 9 PPAs  (158)(158)(189)
Energy derivative contracts (138) (138)(231)
Interest rate swaps (14) (14)(14)
Foreign exchange swaps (99) (99)(61)
Tax equity  (294)(294)(353)
Liabilities for which fair value is disclosed:
BEPC exchangeable and class B shares(2)
(3,905)  (3,905)(4,364)
Non-recourse borrowing(1)
(1,685)(11,780) (13,465)(12,847)
Total$(5,000)$(11,751)$38,926 $22,175 $21,066 
(1)Includes both the current amount and long-term amounts.
(2)BEPC class C shares are also classified as financial liabilities due to their cash redemption feature. As discussed in Note 10 –BEPC Exchangeable shares, BEPC Class B shares and BEPC Class C shares, the BEPC class C shares meet certain qualifying criteria and are presented as equity.
There were no transfers between levels during the nine months ended September 30, 2023.
Brookfield Renewable CorporationInterim Consolidated Financial Statements and Notes
September 30, 2023
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Financial instruments disclosures
The aggregate amount of our company's net financial instrument positions are as follows:
September 30, 2023December 31, 2022
(MILLIONS)AssetsLiabilitiesNet Assets
(Liabilities)
Net Assets
(Liabilities)
Energy derivative contracts$44 $138 $(94)$(198)
IFRS 9 PPAs5 158 (153)(188)
Interest rate swaps227 14 213 247 
Foreign exchange swaps9 99 (90)(61)
Investments in equity securities168  168 292 
Tax equity 294 (294)(353)
Total453 703 (250)(261)
Less: current portion111 207 (96)(164)
Long-term portion$342 $496 $(154)$(97)
(a)   Tax equity
The company owns and operates certain projects in the United States under tax equity structures to finance the construction of utility-scale solar, distributed generation and wind projects. In accordance with the substance of the contractual agreements, the amounts paid by the tax equity investors for their equity stakes are classified as financial instrument liabilities on the interim consolidated statements of financial position.
Gain or loss on the tax equity liabilities are recognized within foreign exchange and financial instruments gain (loss) in the interim consolidated statements of income (loss).
(b)   Energy derivative contracts and IFRS 9 PPAs
The company has entered into long-term energy derivative contracts primarily to stabilize or eliminate the price risk on the sale of certain future power generation. Certain energy contracts are recorded in the company's interim consolidated financial statements at an amount equal to fair value, using quoted market prices or, in their absence, a valuation model using both internal and third-party evidence and forecasts.
(c)   Interest rate hedges
The company has entered into interest rate hedge contracts primarily to minimize exposure to interest rate fluctuations on its variable rate debt or to lock in interest rates on future debt refinancing. All interest rate hedge contracts are recorded in the interim consolidated financial statements at fair value.
(d)   Foreign exchange swaps
The company has entered into foreign exchange swaps to minimize its exposure to currency fluctuations impacting its investments and earnings in foreign operations, and to fix the exchange rate on certain anticipated transactions denominated in foreign currencies.
(e)   Investments in debt and equity securities
The company’s investments in debt and equity securities consist of investments in securities which are recorded on the statement of financial position at fair value.
The following table reflects the gains (losses) included in foreign exchange and financial instruments gain (loss) in the interim consolidated statements of income for the three and nine months ended September 30:
Brookfield Renewable CorporationInterim Consolidated Financial Statements and Notes
September 30, 2023
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Three months ended September 30Nine months ended September 30
(MILLIONS)2023202220232022
Energy derivative contracts$(45)$(109)$14 $(163)
IFRS 9 PPAs42 (16)42 (86)
Interest rate swaps8 12 15 32 
Foreign exchange swaps5 40 (2)75 
Tax equity19 30 43 92 
Investments in equity securities 2 — 9 — 
Foreign exchange gain (loss)(10)(25)8 (48)
$21 $(68)$129 $(98)
The following table reflects the gains (losses) included in other comprehensive income (loss) in the interim consolidated statements of comprehensive income (loss) for the three and nine months ended September 30:
Three months ended September 30Nine months ended September 30
(MILLIONS)2023202220232022
Energy derivative contracts$(26)$(41)$164 $(212)
IFRS 9 PPAs(5)(17)20 (70)
Interest rate swaps18 59 (12)238 
Foreign exchange swaps16 (4)
3 168 (42)
Foreign exchange swaps - net investment20 51 (21)66 
$23 $55 $147 $24 
The following table reflects the reclassification adjustments recognized in net income in the interim consolidated statements of comprehensive income (loss) for the three and nine months ended September 30:
Three months ended September 30Nine months ended September 30
(MILLIONS)2023202220232022
Energy derivative contracts$3 $37 $(86)$123 
IFRS 9 PPAs —  
Interest rate swaps  
Foreign exchange swaps(10)— (1)— 
$(7)$38 $(87)$128 
5. SEGMENTED INFORMATION
The company’s Chief Executive Officer and Chief Financial Officer (collectively, the chief operating decision maker or “CODM”) review the results of the operations, manage the operations, and allocate resources based on the type of technology, in conjunction with other segments of Brookfield Renewable.
The operations of the company are segmented by – 1) hydroelectric, 2) wind, 3) utility-scale solar, 4) distributed energy & sustainable solutions (distributed generation, pumped storage, carbon capture and storage, cogeneration and biomass) and 5) corporate. This best reflects the way in which the CODM reviews the results of the company.
In accordance with IFRS 8, Operating Segments, the company discloses information about its reportable segments based upon the measures used by the CODM in assessing performance. The accounting policies of the reportable segments are the same as those described in Note 1 – Basis of presentation and significant accounting policies.
Reporting to the CODM on the measures utilized to assess performance and allocate resources is provided on a proportionate basis. Information on a proportionate basis reflects the company’s share from facilities which it accounts for using consolidation and the equity method whereby the company either controls or exercises significant influence or joint control over the investment, respectively. Proportionate information provides shareholders perspective that the CODM considers important when performing internal analyses and making strategic and operating decisions. The CODM also
Brookfield Renewable CorporationInterim Consolidated Financial Statements and Notes
September 30, 2023
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believes that providing proportionate information helps investors understand the impacts of decisions made by management and financial results allocable to the company’s shareholders.
Proportionate financial information is not, and is not intended to be, presented in accordance with IFRS. Tables reconciling IFRS data with data presented on a proportionate consolidation basis have been disclosed below. Segment revenues, other income, direct operating costs, interest expense, depreciation, current and deferred income taxes, and other are items that will differ from results presented in accordance with IFRS as these items include the company’s proportionate share of earnings from equity-accounted investments attributable to each of the above-noted items, and exclude the proportionate share of earnings (loss) of consolidated investments not held by the company apportioned to each of the above-noted items.
The company does not control those entities that have not been consolidated and as such, have been presented as equity-accounted investments in its consolidated financial statements. The presentation of the assets and liabilities and revenues and expenses does not represent the company’s legal claim to such items, and the removal of financial statement amounts that are attributable to non-controlling interests does not extinguish the company’s legal claims or exposures to such items.
The company reports its results in accordance with these segments and presents prior period segmented information in a consistent manner.
The company analyzes the performance of its operating segments based on Funds From Operations. Funds From Operations is not a generally accepted accounting measure under IFRS and therefore may differ from definitions of Funds From Operations used by other entities, as well as the definition of funds from operations used by the Real Property Association of Canada (“REALPAC”) and the National Association of Real Estate Investment Trusts, Inc. (“NAREIT”).
The company uses Funds From Operations to assess the performance of the company before the effects of certain cash items (e.g., acquisition costs and other typical non-recurring cash items) and certain non-cash items (e.g., deferred income taxes, depreciation, non-cash portion of non-controlling interests, unrealized gain or loss on financial instruments, non-cash gain or loss from equity-accounted investments, and other non-cash items) as these are not reflective of the performance of the underlying business. The company includes realized disposition gains and losses on assets that we developed and/or did not intend to hold over the long-term within Funds From Operations in order to provide additional insight regarding the performance of investments on a cumulative realized basis, including any unrealized fair value adjustments that were recorded in equity and not otherwise reflected in current period net income.
Brookfield Renewable CorporationInterim Consolidated Financial Statements and Notes
September 30, 2023
Page 15


The following table provides each segment's results in the format that management organizes its segments to make operating decisions and assess performance and reconciles the company's proportionate results to the consolidated statements of income on a line by line basis by aggregating the components comprising the earnings from the company's investments in associates and reflecting the portion of each line item attributable to non-controlling interests for the three months ended September 30, 2023:
Attributable to the partnershipContribution from equity-accounted investmentsAttributable
 to non-
controlling
 interests
As per
IFRS
financials(1)
(MILLIONS)HydroelectricWindUtility-scale solarDistributed energy & sustainable solutionsCorporateTotal
Revenues$291 $28 $33 $33 $— $385 $(12)$561 $934 
Other income (loss)28 — 36 — 59 95 
Direct operating costs(123)(12)(9)(11)(3)(158)(237)(388)
Share of revenue, other income and direct operating costs from equity-accounted investments— — — — — — — 
172 44 24 23 — 263 — 383 
Management service costs— — — — (26)(26)— — (26)
Interest expense(1)
(65)(8)(10)(7)(85)(164)(247)
Current income taxes(2)— — — (1)— (6)(7)
Share of interest and cash taxes from equity-accounted investments— — — — — — (2)— (2)
Share of Funds From Operations attributable to non-controlling interests— — — — — — — (213)(213)
Funds From Operations105 36 15 16 (21)151 — — 364 
Depreciation(320)
Foreign exchange and financial instrument gain21 
Deferred income tax expense (recovery)(20)
Other
Dividends on BEPC exchangeable shares(1)
(61)
Remeasurement of BEPC exchangeable and BEPC class B shares1,393 
Share of earnings from equity-accounted investments(10)
Net income attributable to non-controlling interests183 
Net income attributable to the partnership$1,340 
(1)Share of loss from equity-accounted investments of $7 million is comprised of amounts found on the Share of revenue, other income and direct operating costs, Share of interest and cash taxes and Share of earnings lines. Net income attributable to participating non-controlling interests of $30 million is comprised of amounts found on Share of Funds From Operations attributable to non-controlling interests and Net Income attributable to non-controlling interests. Total interest expense of $308 million is comprised of amounts on Interest expense and Dividends on BEPC exchangeable shares.



Brookfield Renewable CorporationInterim Consolidated Financial Statements and Notes
September 30, 2023
Page 16


The following table provides each segment's results in the format that management organizes its segments to make operating decisions and assess performance and reconciles the company's proportionate results to the consolidated statements of income on a line by line basis by aggregating the components comprising the earnings from the company's investments in associates and reflecting the portion of each line item attributable to non-controlling interests for the three months ended September 30, 2022:
Attributable to the partnershipContribution from equity-accounted investmentsAttributable
 to non-
controlling
 interests
As per
IFRS
financials(1)
(MILLIONS)HydroelectricWindUtility-scale solarDistributed energy & sustainable solutionsCorporateTotal
Revenues$252 $36 $53 $43 $— $384 $(13)$525 $896 
Other income15 — (2)23 — (14)
Direct operating costs(102)(11)(15)(20)(1)(149)(152)(293)
Share of revenue, other income and direct operating costs from equity-accounted investments— — — — — — — 
156 29 53 23 (3)258 — 359 
Management service costs— — — — (37)(37)— — (37)
Interest expense(1)
(47)(8)(13)(6)— (74)(136)(209)
Current income taxes(8)— — — — (8)— (23)(31)
Share of interest and cash taxes from equity-accounted investments— — — — — — (1)— (1)
Share of Funds From Operations attributable to non-controlling interests— — — — — — — (200)(200)
Funds From Operations101 21 40 17 (40)139 — — 339 
Depreciation(288)
Foreign exchange and financial instrument gain (loss)(68)
Deferred income tax recovery (expense)16 
Other(28)
Dividends on BEPC exchangeable shares(1)
(55)
Remeasurement of BEPC exchangeable and BEPC class B shares603 
Share of earnings from equity-accounted investments(2)
Net income attributable to non-controlling interests163 
Net income attributable to the partnership$480 
(1)Share of earnings from equity-accounted investments of $2 million is comprised of amounts found on the Share of revenue, other income and direct operating costs, Share of interest and cash taxes and Share of earnings lines. Net income attributable to participating non-controlling interests of $37 million is comprised of amounts found on Share of Funds From Operations attributable to non-controlling interests and Net Income attributable to non-controlling interests. Total interest expense of $264 million is comprised of amounts on Interest expense and Dividends on BEPC exchangeable shares.


Brookfield Renewable CorporationInterim Consolidated Financial Statements and Notes
September 30, 2023
Page 17


The following table provides each segment's results in the format that management organizes its segments to make operating decisions and assess performance and reconciles the company's proportionate results to the consolidated statements of income (loss) on a line by line basis by aggregating the components comprising the earnings from the company's investments in associates and reflecting the portion of each line item attributable to non-controlling interests for the nine months ended September 30, 2023:
Attributable to the partnershipContribution from equity-accounted investmentsAttributable
 to non-
controlling
 interests
As per
IFRS
financials(1)
(MILLIONS)HydroelectricWindUtility-scale solarDistributed energy & sustainable solutionsCorporateTotal
Revenues939 107 122 102 — 1,270 (36)1,667 2,901 
Other income19 34 20 19 98 (3)52 147 
Direct operating costs(344)(32)(28)(31)(5)(440)17 (577)(1,000)
Share of revenue, other income and direct operating costs from equity-accounted investments— — — — — — 22 — 22 
614 109 114 77 14 928 — 1,142 
Management service costs— — — — (94)(94)— — (94)
Interest expense(1)
(195)(21)(38)(16)(265)(490)(749)
Current income taxes(18)(2)(1)— — (21)— (58)(79)
Share of interest and cash taxes from equity-accounted investments— — — — — — (6)— (6)
Share of Funds From Operations attributable to non-controlling interests— — — — — — — (594)(594)
Funds From Operations401 86 75 61 (75)548 — — 548 
Depreciation(953)
Foreign exchange and financial instrument gain129 
Deferred income tax expense (recovery)(29)
Other14 
Dividends on BEPC exchangeable shares(1)
(180)
Remeasurement of BEPC exchangeable and BEPC class B shares710 
Share of earnings from equity-accounted investments(23)
Net income attributable to non-controlling interests350 
Net income attributable to the partnership566 
(1)Share of earnings from equity-accounted investments of $7 million is comprised of amounts found on the Share of revenue, other income and direct operating costs, Share of interest and cash taxes and Share of earnings lines. Net loss attributable to participating non-controlling interests of $244 million is comprised of amounts found on Share of Funds From Operations attributable to non-controlling interests and Net Income attributable to non-controlling interests. Total interest expense of $929 million is comprised of amounts on Interest expense and Dividends on BEPC exchangeable shares.
Brookfield Renewable CorporationInterim Consolidated Financial Statements and Notes
September 30, 2023
Page 18


The following table provides each segment's results in the format that management organizes its segments to make operating decisions and assess performance and reconciles the company's proportionate results to the consolidated statements of income on a line by line basis by aggregating the components comprising the earnings from the company's investments in associates and reflecting the portion of each line item attributable to non-controlling interests for the nine months ended September 30, 2022:
Attributable to the partnershipContribution from equity-accounted investmentsAttributable
 to non-
controlling
 interests
As per
IFRS
financials(1)
(MILLIONS)HydroelectricWindUtility-scale solarDistributed energy & sustainable solutionsCorporateTotal
Revenues825 131 143 110 — 1,209 (38)1,651 2,822 
Other income30 36 (2)80 — (1)79 
Direct operating costs(318)(38)(39)(53)(3)(451)23 (452)(880)
Share of revenue, other income and direct operating costs from equity-accounted investments— — — — — — 15 — 15 
537 102 140 64 (5)838 — 1,198 
Management service costs— — — — (127)(127)— (5)(132)
Interest expense(1)
(131)(22)(38)(15)(4)(210)(376)(582)
Current income taxes(27)(1)— — — (28)— (70)(98)
Share of interest and cash taxes from equity-accounted investments— — — — — — (4)— (4)
Share of Funds From Operations attributable to non-controlling interests— — — — — — — (747)(747)
Funds From Operations379 79 102 49 (136)473 — — — 
Depreciation(870)
Foreign exchange and financial instrument gain (loss)(98)
Deferred income tax recovery (expense)(25)
Other(54)
Dividends on BEPC exchangeable shares(1)
(165)
Remeasurement of BEPC exchangeable and BEPC class B shares774 
Share of earnings from equity-accounted investments(10)
Net income attributable to non-controlling interests525 
Net income attributable to the partnership550 
(1)Share of earnings from equity-accounted investments of $1 million is comprised of amounts found on the Share of revenue, other income and direct operating costs, Share of interest and cash taxes and Share of earnings lines. Net loss attributable to participating non-controlling interests of $222 million is comprised of amounts found on Share of Funds From Operations attributable to non-controlling interests and Net Income attributable to non-controlling interests. Total interest expense of $747 million is comprised of amounts on Interest expense and Dividends on BEPC exchangeable shares.


Brookfield Renewable CorporationInterim Consolidated Financial Statements and Notes
September 30, 2023
Page 19


The following table presents information on a segmented basis about certain items in our company's statements of financial position and reconciles the company's proportionate results to the consolidated statements of financial position by aggregating the components comprising the company's investments in associates and reflecting the portion of each line item attributable to non-controlling interests:
Attributable to the partnershipContribution
from equity-
accounted
investments
Attributable
 to non-
controlling
 interests
As per
 IFRS
financials
(MILLIONS)HydroelectricWindUtility-scale solarDistributed energy & sustainable solutionsCorporateTotal
As at September 30, 2023
Cash and cash equivalents$87 $23 $56 $9 $ $175 $(8)$346 513 
Property, plant and equipment, at fair value14,079 1,607 1,284 1,072  18,042 (702)21,865 39,205 
Total assets15,666 1,732 1,449 1,118 385 20,350 (220)23,671 43,801 
Total borrowings2,882 525 961 225  4,593 (38)9,215 13,770 
Other liabilities4,287 415 232 195 3,949 9,078 (220)3,415 12,273 
As at December 31, 2022
Cash and cash equivalents$70 $49 $60 $18 $— $197 $(7)$452 642 
Property, plant and equipment, at fair value13,709 1,400 1,310 1,084 — 17,503 (557)20,882 37,828 
Total assets15,604 1,595 1,447 1,138 307 20,091 (171)23,368 43,288 
Total borrowings2,894 613 1,025 371 — 4,903 (161)8,973 13,715 
Other liabilities4,363 342 138 38 4,436 9,317 (10)3,442 12,749 

Brookfield Renewable CorporationInterim Consolidated Financial Statements and Notes
September 30, 2023
Page 20


Additional Segment Information
The following table presents consolidated revenue split by technology for the three and nine months ended September 30:
Three months ended September 30Nine months ended September 30
(MILLIONS)2023202220232022
Hydroelectric$597 $520 $1,862 $1,697 
Wind111 130 406 470 
Utility-scale solar169 174 459 468 
Distributed energy & sustainable solutions