EX-99.2 3 bepq32019-ex992.htm EXHIBIT 99.2 Exhibit
a2019q3fscover.jpg





BROOKFIELD RENEWABLE PARTNERS L.P.
CONSOLIDATED STATEMENTS OF INCOME
UNAUDITED 
(MILLIONS, EXCEPT AS NOTED) 
 
 
Three months ended September 30
 
Nine months ended September 30
Notes
 
2019

 
2018

 
2019

 
2018

Revenues
19
 
$
642

 
$
674

 
$
2,254

 
$
2,202

Other income
 
 
25

 
7

 
50

 
26

Direct operating costs
 
 
(239
)
 
(257
)
 
(745
)
 
(760
)
Management service costs
19
 
(29
)
 
(22
)
 
(73
)
 
(64
)
Interest expense - borrowings
9
 
(164
)
 
(176
)
 
(515
)
 
(534
)
Share of earnings from equity-accounted investments
13
 
1

 
6

 
33

 
12

Foreign exchange and unrealized financial instrument loss
5
 
(10
)
 
(10
)
 
(40
)
 
(35
)
Depreciation
8
 
(200
)
 
(192
)
 
(600
)
 
(611
)
Other
 
 
(38
)
 
(18
)
 
(41
)
 
(72
)
Income tax expense
 
 
 
 
 
 
 
 
 
Current
7
 
(10
)
 
(6
)
 
(49
)
 
(20
)
Deferred
7
 
23

 
11

 
(11
)
 
(2
)
 
 
 
13

 
5

 
(60
)
 
(22
)
Net income
 
 
$
1

 
$
17

 
$
263

 
$
142

Net income attributable to:
 
 
 
 
 
 
 
 
 
Non-controlling interests
 
 
 
 
 
 
 
 
 
Participating non-controlling interests - in operating subsidiaries
10
 
$
36

 
$
55

 
$
204

 
$
142

General partnership interest in a holding subsidiary held by Brookfield
10
 
(1
)
 
(1
)
 
—

 
(1
)
Participating non-controlling interests - in a holding subsidiary - Redeemable/Exchangeable units held by Brookfield
10
 
(22
)
 
(22
)
 
3

 
(20
)
Preferred equity
10
 
6

 
7

 
19

 
20

Preferred limited partners' equity
11
 
12

 
10

 
33

 
29

Limited partners' equity
12
 
(30
)
 
(32
)
 
4

 
(28
)
 
 
 
$
1

 
$
17

 
$
263

 
$
142

Basic and diluted (loss) earnings per LP Unit
 
 
$
(0.17
)
 
$
(0.18
)
 
$
0.02

 
$
(0.16
)
The accompanying notes are an integral part of these interim consolidated financial statements.

Brookfield Renewable Partners L.P.
Q3 2019 Interim Consolidated Financial Statements and Notes

September 30, 2019
 
Page 2


BROOKFIELD RENEWABLE PARTNERS L.P.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
UNAUDITED 
(MILLIONS) 
 
 
Three months ended September 30
 
Nine months ended September 30
Notes
 
2019

 
2018

 
2019

 
2018

Net income
 
 
$
1

 
$
17

 
$
263

 
$
142

Other comprehensive loss that will not be reclassified to net income
 
 
 
 
 
 
 
 
 
Revaluations of property, plant and equipment
8
 
83

 
(13
)
 
83

 
163

Actuarial (loss) gain on defined benefit plans
 
 
—

 
4

 
(13
)
 
9

Deferred income taxes on above items
 
 
(16
)
 
2

 
(12
)
 
(49
)
Total items that will not be reclassified to net income
 
 
67

 
(7
)
 
58

 
123

Other comprehensive income (loss) that may be reclassified to net income
 
 
 
 
 
 
 
 
 
Foreign currency translation
 
 
(631
)
 
(126
)
 
(463
)
 
(534
)
(Losses) gains arising during the period on financial instruments designated as cash-flow hedges
5
 
(17
)
 
(12
)
 
(15
)
 
2

Unrealized gain (loss) on foreign exchange swaps net investment hedge
5
 
21

 
(11
)
 
22

 
50

Unrealized gain (loss) on investments in equity securities
5
 
14

 
10

 
37

 
(1
)
Reclassification adjustments for amounts recognized in net income
5
 
(1
)
 
3

 
(1
)
 
17

Deferred income taxes on above items
 
 
(1
)
 
4

 
—

 
(12
)
Total items that may be reclassified subsequently to net income
 
 
(615
)
 
(132
)
 
(420
)
 
(478
)
Other comprehensive loss
 
 
(548
)
 
(139
)
 
(362
)
 
(355
)
Comprehensive loss
 
 
$
(547
)
 
$
(122
)
 
$
(99
)
 
$
(213
)
Comprehensive loss attributable to:
 
 
 
 
 
 
 
 
 
Non-controlling interests
 
 
 
 
 
 
 
 
 
Participating non-controlling interests - in operating subsidiaries
10
 
(274
)
 
(21
)
 
(21
)
 
118

General partnership interest in a holding subsidiary held by Brookfield
10
 
(2
)
 
(1
)
 
(1
)
 
(3
)
Participating non-controlling interests - in a holding subsidiary - Redeemable/Exchangeable units held by Brookfield
10
 
(119
)
 
(53
)
 
(61
)
 
(151
)
Preferred equity
10
 
(1
)
 
17

 
35

 
4

Preferred limited partners' equity
11
 
12

 
10

 
33

 
29

Limited partners' equity
12
 
$
(163
)
 
$
(74
)
 
$
(84
)
 
$
(210
)
 
 
 
(547
)
 
(122
)
 
(99
)
 
(213
)
The accompanying notes are an integral part of these interim consolidated financial statements.

Brookfield Renewable Partners L.P.
Q3 2019 Interim Consolidated Financial Statements and Notes

September 30, 2019
 
Page 3


BROOKFIELD RENEWABLE PARTNERS L.P.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
UNAUDITED 
(MILLIONS) 
Notes
 
September 30, 2019

 
December 31, 2018

Assets
 
 
 
 
 
Current assets
 
 
 
 
 
Cash and cash equivalents
14
 
$
209

 
$
173

Restricted cash
15
 
166

 
136

Trade receivables and other current assets
16
 
635

 
607

Financial instrument assets
5
 
75

 
60

Due from related parties
19
 
75

 
65

Assets held for sale
4
 
782

 
920

 
 
 
1,942

 
1,961

Financial instrument assets
5
 
197

 
124

Equity-accounted investments
13
 
1,536

 
1,569

Property, plant and equipment
8
 
28,350

 
29,025

Goodwill
 
 
777

 
828

Deferred income tax assets
7
 
114

 
91

Other long-term assets
 
 
519

 
505

Total Assets
 
 
$
33,435

 
$
34,103

Liabilities
 
 
 
 
 
Current liabilities
 
 
 
 
 
Accounts payable and accrued liabilities
17
 
$
675

 
$
533

Financial instrument liabilities
5
 
21

 
27

Payables due to related parties
19
 
133

 
101

Non-recourse borrowings
9
 
384

 
495

Liabilities directly associated with assets held for sale
4
 
385

 
533

 
 
 
1,598

 
1,689

Financial instrument liabilities
5
 
146

 
111

Corporate borrowings
9
 
2,119

 
2,328

Non-recourse borrowings
9
 
8,122

 
7,895

Deferred income tax liabilities
7
 
4,096

 
4,140

Other long-term liabilities
 
 
956

 
734

Equity
 
 
 
 
 
Non-controlling interests
 
 
 
 
 
Participating non-controlling interests - in operating subsidiaries
10
 
7,841

 
8,129

General partnership interest in a holding subsidiary held by Brookfield
10
 
61

 
66

Participating non-controlling interests - in a holding subsidiary ‑ Redeemable/Exchangeable units held by Brookfield
10
 
2,974

 
3,252

Preferred equity
10
 
585

 
568

Preferred limited partners' equity
11
 
833

 
707

Limited partners' equity
12
 
4,104

 
4,484

Total Equity
 
 
16,398

 
17,206

Total Liabilities and Equity
 
 
$
33,435

 
$
34,103

The accompanying notes are an integral part of these interim consolidated financial statements.
Approved on behalf of Brookfield Renewable Partners L.P.:
patricasigna02.jpg
davidmannsigna03.jpg
Patricia Zuccotti
Director
David Mann
Director

Brookfield Renewable Partners L.P.
Q3 2019 Interim Consolidated Financial Statements and Notes

September 30, 2019
 
Page 4


BROOKFIELD RENEWABLE PARTNERS L.P.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
 
 
 
Accumulated other comprehensive income
 
 
 
 
 
Non-controlling interests
 
 
UNAUDITED
THREE MONTHS ENDED SEPTEMBER 30
(MILLIONS)
Limited
partners'
equity

 
Foreign
currency
translation

 
Revaluation
surplus

 
Actuarial losses on defined benefit plans

 
Cash flow
hedges

 
Investments in equity securities

 
Total
limited
partners'
equity

 
Preferred
limited
partners'
equity

 
Preferred
equity

 
Participating
non-controlling
interests - in
operating
subsidiaries

 
General
partnership
interest in
a holding
subsidiary
held by
Brookfield

 
Participating
non-controlling
interests - in a
holding subsidiary
- Redeemable
/Exchangeable
units held by
Brookfield

 
Total
equity

Balance, as at June 30, 2019
$
(882
)
 
$
(625
)
 
$
5,918

 
$
(9
)
 
$
(38
)
 
$
5

 
$
4,369

 
$
833

 
$
591

 
$
8,226

 
$
65

 
$
3,166

 
$
17,250

Net income
(30
)
 
—

 
—

 
—

 
—

 
—

 
(30
)
 
12

 
6

 
36

 
(1
)
 
(22
)
 
1

Other comprehensive income (loss)
—

 
(153
)
 
15

 
—

 
(4
)
 
9

 
(133
)
 
—

 
(7
)
 
(310
)
 
(1
)
 
(97
)
 
(548
)
Capital contributions (Note 10)
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
35

 
—

 
—

 
35

Disposals (Note 3)
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(30
)
 
—

 
—

 
(30
)
Distributions or dividends declared
(92
)
 
—

 
—

 
—

 
—

 
—

 
(92
)
 
(12
)
 
(6
)
 
(124
)
 
(13
)
 
(66
)
 
(313
)
Distribution reinvestment plan
2

 
—

 
—

 
—

 
—

 
—

 
2

 
—

 
—

 
—

 
—

 
—

 
2

Other
(9
)
 
1

 
(3
)
 
—

 
—

 
(1
)
 
(12
)
 
—

 
1

 
8

 
11

 
(7
)
 
1

Change in period
(129
)
 
(152
)
 
12

 
—

 
(4
)
 
8

 
(265
)
 
—

 
(6
)
 
(385
)
 
(4
)
 
(192
)
 
(852
)
Balance as at September 30, 2019
$
(1,011
)
 
$
(777
)
 
$
5,930

 
$
(9
)
 
$
(42
)
 
$
13

 
$
4,104

 
$
833

 
$
585

 
$
7,841

 
$
61

 
$
2,974

 
$
16,398

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, as at June 30, 2018
$
(448
)
 
$
(533
)
 
$
4,628

 
$
(7
)
 
$
(21
)
 
$
9

 
$
3,628

 
$
707

 
$
589

 
$
6,140

 
$
53

 
$
2,609

 
13,726

Net income (loss)
(32
)
 
—

 
—

 
—

 
—

 
—

 
(32
)
 
10

 
7

 
55

 
(1
)
 
(22
)
 
17

Other comprehensive income (loss)
—

 
(45
)
 
(2
)
 
1

 
(1
)
 
5

 
(42
)
 
—

 
10

 
(76
)
 
—

 
(31
)
 
(139
)
Capital contributions
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
9

 
—

 
—

 
9

Distributions or dividends declared
(88
)
 
—

 
—

 
—

 
—

 
—

 
(88
)
 
(10
)
 
(6
)
 
(81
)
 
(11
)
 
(64
)
 
(260
)
Distribution reinvestment plan
2

 
—

 
—

 
—

 
—

 
—

 
2

 
—

 
—

 
—

 
—

 
—

 
2

Other
(6
)
 
—

 
(1
)
 
—

 
—

 
—

 
(7
)
 
—

 
—

 
(1
)
 
10

 
(3
)
 
(1
)
Change in period
(124
)
 
(45
)
 
(3
)
 
1

 
(1
)
 
5

 
(167
)
 
—

 
11

 
(94
)
 
(2
)
 
(120
)
 
(372
)
Balance as at September 30, 2018
$
(572
)
 
$
(578
)
 
$
4,625

 
$
(6
)
 
$
(22
)
 
$
14

 
$
3,461

 
$
707

 
$
600

 
$
6,046

 
$
51

 
$
2,489

 
$
13,354

The accompanying notes are an integral part of these interim consolidated financial statements.


Brookfield Renewable Partners L.P.
Q3 2019 Interim Consolidated Financial Statements and Notes

September 30, 2019
 
Page 5


BROOKFIELD RENEWABLE PARTNERS L.P.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
 
 
 
Accumulated other comprehensive income
 
 
 
 
 
Non-controlling interests
 
 
UNAUDITED
NINE MONTHS ENDED SEPTEMBER 30
(MILLIONS)
Limited
partners'
equity

 
Foreign
currency
translation

 
Revaluation
surplus

 
Actuarial losses on defined benefit plans

 
Cash flow
hedges

 
Investments in equity securities

 
Total
limited
partners'
equity

 
Preferred
limited
partners'
equity

 
Preferred
equity

 
Participating
non-controlling
interests - in
operating
subsidiaries

 
General
partnership
interest in
a holding
subsidiary
held by
Brookfield

 
Participating
non-controlling
interests - in a
holding subsidiary
- Redeemable
/Exchangeable
units held by
Brookfield

 
Total
equity

Balance, as at December 31, 2018
$
(948
)
 
$
(652
)
 
$
6,120

 
$
(6
)
 
$
(34
)
 
$
4

 
$
4,484

 
$
707

 
$
568

 
$
8,129

 
$
66

 
$
3,252

 
$
17,206

Net income
4

 
—

 
—

 
—

 
—

 
—

 
4

 
33

 
19

 
204

 
—

 
3

 
263

Other comprehensive income (loss)
—

 
(112
)
 
16

 
(4
)
 
(8
)
 
20

 
(88
)
 
—

 
16

 
(225
)
 
(1
)
 
(64
)
 
(362
)
Preferred LP Units issued (Note 11)
—

 
—

 
—

 
—

 
—

 
—

 
—

 
126

 
—

 
—

 
—

 
—

 
126

LP Units purchased for cancellation (Note 12)
(1
)
 
—

 
—

 
—

 
—

 
—

 
(1
)
 
—

 
—

 
—

 
—

 
—

 
(1
)
Capital contributions (Note 10)
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
333

 
—

 
—

 
333

Disposals (Note 3)
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(83
)
 
—

 
—

 
(83
)
Distributions or dividends declared
(277
)
 
—

 
—

 
—

 
—

 
—

 
(277
)
 
(33
)
 
(19
)
 
(520
)
 
(41
)
 
(201
)
 
(1,091
)
Distribution reinvestment plan
5

 
—

 
—

 
—

 
—

 
—

 
5

 
—

 
—

 
—

 
—

 
—

 
5

Other
206

 
(13
)
 
(206
)
 
1

 
—

 
(11
)
 
(23
)
 
—

 
1

 
3

 
37

 
(16
)
 
2

Change in period
(63
)
 
(125
)
 
(190
)
 
(3
)
 
(8
)
 
9

 
(380
)
 
126

 
17

 
(288
)
 
(5
)
 
(278
)
 
(808
)
Balance as at September 30, 2019
$
(1,011
)
 
$
(777
)
 
$
5,930

 
$
(9
)
 
$
(42
)
 
$
13

 
$
4,104

 
$
833

 
$
585

 
$
7,841

 
$
61

 
$
2,974

 
$
16,398

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, as at December 31, 2017
(259
)
 
(378
)
 
4,616

 
(9
)
 
(29
)
 
15

 
3,956

 
511

 
616

 
6,298

 
58

 
2,843

 
14,282

Net income
(28
)
 
—

 
—

 
—

 
—

 
—

 
(28
)
 
29

 
20

 
142

 
(1
)
 
(20
)
 
142

Other comprehensive income (loss)
—

 
(200
)
 
9

 
3

 
7

 
(1
)
 
(182
)
 
—

 
(16
)
 
(24
)
 
(2
)
 
(131
)
 
(355
)
Preferred LP Units issued
—

 
—

 
—

 
—

 
—

 
—

 
—

 
196

 
—

 
—

 
—

 
—

 
196

LP Units purchased for cancellation
(8
)
 
—

 
—

 
—

 
—

 
—

 
(8
)
 
—

 
—

 
—

 
—


—

 
(8
)
Capital contributions
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
13

 
—

 
—

 
13

Acquisition
—

 
—

 
—

 
—

 
—

 
—

 
—


—

 
—

 
21

 
—


—

 
21

Distributions or dividends declared
(266
)
 
—

 
—

 
—

 
—

 
—

 
(266
)
 
(29
)
 
(20
)
 
(438
)
 
(34
)
 
(192
)
 
(979
)
Distribution reinvestment plan
7

 
—

 
—

 
—

 
—

 
—

 
7

 
—

 
—

 
—

 
—

 
—

 
7

Other
(18
)
 
—

 
—

 
—

 
—

 
—

 
(18
)
 
—

 
—

 
34

 
30

 
(11
)
 
35

Change in period
(313
)
 
(200
)
 
9

 
3

 
7

 
(1
)
 
(495
)
 
196

 
(16
)
 
(252
)
 
(7
)
 
(354
)
 
(928
)
Balance as at September 30, 2018
$
(572
)
 
$
(578
)
 
$
4,625

 
$
(6
)
 
$
(22
)
 
$
14

 
$
3,461

 
$
707

 
$
600

 
$
6,046

 
$
51

 
$
2,489

 
$
13,354

The accompanying notes are an integral part of these interim consolidated financial statements.

Brookfield Renewable Partners L.P.
Q3 2019 Interim Consolidated Financial Statements and Notes

September 30, 2019
 
Page 6


BROOKFIELD RENEWABLE PARTNERS L.P.
CONSOLIDATED STATEMENTS OF CASH FLOWS
UNAUDITED
 
 
Three months ended September 30
 
Nine months ended September 30
(MILLIONS)
Notes
 
2019

 
2018

 
2019

 
2018

Operating activities
 
 
 
 
 
 
 
 
 
Net income
 
 
$
1

 
$
17

 
$
263

 
$
142

Adjustments for the following non-cash items:
 
 
 
 
 
 
 
 
 
Depreciation
8
 
200

 
192

 
600

 
611

Unrealized foreign exchange and financial instruments loss
5
 
11

 
5

 
42

 
14

Share of earnings from equity-accounted investments
13
 
(1
)
 
(5
)
 
(33
)
 
(11
)
Deferred income tax expense
7
 
(23
)
 
(11
)
 
11

 
2

Other non-cash items
 
 
19

 
10

 
69

 
50

Dividends received from equity-accounted investments
13
 
16

 
13

 
44

 
27

Changes in due to or from related parties
 
 
56

 
16

 
20

 
28

Net change in working capital balances
 
 
(13
)
 
(1
)
 
(11
)
 
(46
)
 
 
 
266

 
236

 
1,005

 
817

Financing activities
 
 
 
 
 
 
 
 
 
Long-term debt - borrowings
9
 
$
449

 
$
231

 
$
449

 
$
231

Corporate credit facilities, net
9
 
12

 
174

 
(709
)
 
354

Proceeds from non-recourse borrowings
9
 
336

 
308

 
1,281

 
1,698

Repayment of non-recourse borrowings
9
 
(517
)
 
(316
)
 
(1,183
)
 
(2,156
)
Capital contributions from participating non-controlling interests - in operating subsidiaries
10
 
35

 
9

 
292

 
13

Issuance of preferred limited partnership units
11
 
—

 
—

 
126

 
196

Repurchase of LP Units
12
 
—

 
—

 
(1
)
 
(8
)
Distributions paid:
 
 
 

 
 

 
 

 
 

To participating non-controlling interests - in operating subsidiaries
10
 
(124
)
 
(81
)
 
(520
)
 
(438
)
To preferred shareholders
10
 
(6
)
 
(7
)
 
(19
)
 
(20
)
To preferred limited partners' unitholders
11
 
(11
)
 
(9
)
 
(31
)
 
(27
)
To unitholders of Brookfield Renewable or BRELP
10, 12
 
(171
)
 
(161
)
 
(513
)
 
(482
)
Borrowings from related party
19
 
14

 
—

 
936

 
200

Repayments to related party
19
 
(336
)
 
(200
)
 
(936
)
 
(200
)
 
 
 
(319
)
 
(52
)
 
(828
)
 
(639
)
Investing activities
 
 
 

 
 

 
 

 
 

Investment in equity-accounted investments
 
 
—

 
—

 
(4
)

(420
)
Acquisitions net of cash and cash equivalents in acquired entity
2
 
(55
)
 
—

 
(81
)
 
(12
)
Investment in property, plant and equipment
8
 
(52
)
 
(59
)
 
(115
)
 
(153
)
Proceeds from disposal of assets
3
 
16

 
—

 
98

 
—

(Investment in) disposal of securities
5
 
65

 
—

 
(9
)
 
25

Restricted cash and other
 
 
(23
)
 
(46
)
 
(12
)
 
(75
)
 
 
 
(49
)
 
(105
)
 
(123
)
 
(635
)
Foreign exchange gain (loss) on cash
 
 
(9
)
 
(6
)
 
(8
)
 
(14
)
Cash and cash equivalents
 
 
 

 
 

 
 

 
 

Increase (decrease)
 
 
(111
)
 
73

 
46

 
(471
)
Net change in cash classified within assets held for sale
 
 
(2
)
 
3

 
(10
)
 
(15
)
Balance, beginning of period
 
 
322

 
237

 
173

 
799

Balance, end of period
 
 
$
209

 
$
313

 
$
209

 
$
313

Supplemental cash flow information:
 
 
 

 
 

 
 

 
 

Interest paid
 
 
$
144

 
$
154

 
$
463

 
$
469

Interest received
 
 
$
6

 
$
5

 
$
16

 
$
17

Income taxes paid
 
 
$
16

 
$
10

 
$
53

 
$
33

The accompanying notes are an integral part of these interim consolidated financial statements.

Brookfield Renewable Partners L.P.
Q3 2019 Interim Consolidated Financial Statements and Notes

September 30, 2019
 
Page 7


BROOKFIELD RENEWABLE PARTNERS L.P.
NOTES TO THE UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
The business activities of Brookfield Renewable Partners L.P. ("Brookfield Renewable") consist of owning a portfolio of renewable power generating facilities primarily in North America, Colombia, Brazil, Europe, India and China.
Unless the context indicates or requires otherwise, the term "Brookfield Renewable" means Brookfield Renewable Partners L.P. and its controlled entities.
Brookfield Renewable is a publicly traded limited partnership established under the laws of Bermuda pursuant to an amended and restated limited partnership agreement dated November 20, 2011.
The registered office of Brookfield Renewable is 73 Front Street, Fifth Floor, Hamilton HM12, Bermuda.
The immediate parent of Brookfield Renewable is its general partner, Brookfield Renewable Partners Limited ("BRPL"). The ultimate parent of Brookfield Renewable is Brookfield Asset Management Inc. ("Brookfield Asset Management"). Brookfield Asset Management and its subsidiaries, other than Brookfield Renewable, are also individually and collectively referred to as "Brookfield" in these financial statements.
Brookfield Renewable's non-voting limited partnership units ("LP Units") are traded under the symbol "BEP" on the New York Stock Exchange and under the symbol "BEP.UN" on the Toronto Stock Exchange. Brookfield Renewable's Class A Series 5, Series 7, Series 9, Series 11, Series 13, and Series 15 preferred limited partners" equity are traded under the symbols "BEP.PR.E", "BEP.PR.G", "BEP.PR.I", "BEP.PR.K", "BEP.PR.M" and "BEP.PR.O" respectively, on the Toronto Stock Exchange.
 
Page
 
1.
Basis of preparation and significant accounting policies
2.
Acquisitions
3.
Disposal of assets
4.
Assets held for sale
5.
Risk management and financial instruments
6.
Segmented information
 
 
 
7.
Income taxes
 
 
 
 
8.
Property, plant and equipment
9.
Borrowings
10.
Non-controlling interests
11.
Preferred limited partners' equity
12.
Limited partners' equity
13.
Equity-accounted investments
14.
Cash and cash equivalents
15.
Restricted cash
16.
Trade receivables and other current assets
17.
Accounts payable and accrued liabilities
18.
Commitments, contingencies and guarantees
 
 
 
 
19.
Related party transactions
20.
Subsidiary public issuers
21.
Subsequent events


Brookfield Renewable Partners L.P.
Q3 2019 Interim Consolidated Financial Statements and Notes

September 30, 2019
 
Page 8



1. BASIS OF PREPARATION 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 Brookfield Renewable’s December 31, 2018 audited consolidated financial statements. Except for the recently adopted IFRS 16, Leases (“IFRS 16”) and the early adopted amendment to IFRS 3, Business combinations (“IFRS 3”), the interim consolidated statements have been prepared on a basis consistent with the accounting policies disclosed in the December 31, 2018 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 consolidated financial statements have been authorized for issuance by the Board of Directors of Brookfield Renewable’s general partner, BRPL, on November 11, 2019.
Certain comparative figures have been reclassified to conform to the current year’s presentation.
References to $, C$, €, R$, COP, INR, ZAR, CNY are to United States (“U.S.”) dollars, Canadian dollars, Euros, Brazilian reais, Colombian pesos, Indian Rupees, South African Rand and Chinese Yuan, respectively.
All figures are presented in millions of U.S. dollars unless otherwise noted.
(b) Basis of preparation
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.
Consolidation
These interim consolidated financial statements include the accounts of Brookfield Renewable and its subsidiaries, which are the entities over which Brookfield Renewable 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 Brookfield Renewable’s subsidiaries are shown separately in equity in the interim consolidated statements of financial position.
(c) Changes to lease accounting policy
Brookfield Renewable has applied IFRS 16 using the modified retrospective approach and therefore the comparative information has not been restated and continues to be reported under IAS 17 – Leases (“IAS 17”) and IFRIC 4 – Determining Whether an Arrangement Contains a Lease (“IFRIC 4”). The details of accounting policies under IAS 17 and IFRIC 4 are disclosed separately if they are different from those under IFRS 16 and the impact of changes is disclosed in Note 1(d).
Policy applicable from January 1, 2019
At inception of a contract, Brookfield Renewable assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, Brookfield Renewable assesses whether:
•
the contract specified explicitly or implicitly the use of an identified asset, and that is physically distinct or represents substantially all of the capacity of a physically distinct asset. If the supplier has a substantive substitution right, then the asset is not identified;

Brookfield Renewable Partners L.P.
Q3 2019 Interim Consolidated Financial Statements and Notes

September 30, 2019
 
Page 9


•
Brookfield Renewable has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use; and
•
Brookfield Renewable has the right to direct the use of the asset. Brookfield Renewable has this right when it has the decision-making rights that are most relevant to changing how and for what purpose the asset is used. In rare cases where the decisions about how and for what purpose the asset is used are predetermined, Brookfield Renewable has the right to direct the use of the asset if either:
◦
Brookfield Renewable has the right to operate the asset; or
◦
Brookfield Renewable designed the asset in a way that predetermines how and for what purpose it will be used.
This policy is applied to contracts entered into, or changed, on or after January 1, 2019.
At inception or on reassessment of a contract that contains a lease component, Brookfield Renewable allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices. However, for the leases of land and buildings in which it is a lessee, Brookfield Renewable has elected not to separate non-lease components and, therefore, accounts for the lease and non-lease components as a single lease component.
Accounting as a lessee under IFRS 16
Brookfield Renewable recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.
The right-of use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful lives of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of property, plant and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, Brookfield Renewable’s incremental borrowing rate. Generally, Brookfield Renewable uses its incremental borrowing rate as the discount rate.
Lease payments included in the measurement of the lease liability comprise the following:
•
Fixed payments, including in-substance fixed payments;
•
Variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;
•
Amounts expected to be payable under a residual value guarantee; and
•
The exercise price under a purchase option that Brookfield Renewable is reasonably certain to exercise, lease payments in an optional renewable period if Brookfield Renewable is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless Brookfield Renewable is reasonably certain not to terminate early.
The lease liability is measured at amortized cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in Brookfield Renewable’s estimate of the amount expected to be payable under a residual value guarantee, or if Brookfield Renewable changes its assessment of whether it will exercise a purchase, extension or termination option.
When the lease liability is remeasured in this way, a corresponding adjustment is made either to the carrying amount of the right-of-use asset or, when the adjustment is a reduction to the right-of-use asset, is recorded in the consolidated statements of income if the carrying amount of the right-of-use asset has been reduced to zero.
Brookfield Renewable presents right-of-use assets in Property, plant and equipment and lease liabilities in Other long-term liabilities in the consolidated statement of financial position as at September 30, 2019.

Brookfield Renewable Partners L.P.
Q3 2019 Interim Consolidated Financial Statements and Notes

September 30, 2019
 
Page 10


Short-term leases and leases of low-value assets
Brookfield Renewable has elected not to recognize right-of-use assets and lease liabilities for short-term leases that have a lease term of twelve months or less and leases of low-value assets. Brookfield Renewable recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.
Policy applicable before January 1, 2019
For contracts entered into before January 1, 2019, Brookfield Renewable determined whether that arrangement was or contained a lease based on the assessment of whether:
•
Fulfillment of the arrangement was dependent on the use of a specific asset or assets; and
•
The arrangement had conveyed a right to use the asset. An arrangement conveyed a right to use the asset if one of the following was met:
◦
The purchaser had the ability or right to operate the asset while obtaining or controlling more than an insignificant amount of the output;
◦
The purchaser had the ability or right to control physical access to the asset while obtaining or controlling more than an insignificant amount of the output; or
◦
Facts and circumstances indicated that it was remote that other parties would take more than an insignificant amount of the output, and the price per unit was neither fixed per unit of output nor equal to the market price per unit of output.
Accounting as a lessee under IAS 17
In the comparative period, as a lessee Brookfield Renewable classified leases that transfer substantially all of the risks and rewards of ownership as finance leases. When this was the case, the lease assets were measured initially at an amount equal to the lower of their fair value and the present value of the minimum lease payments. Minimum lease payments were the payments over the lease term that the lessee was required to make, excluding any contingent rent.
Subsequently, the assets were accounted for in accordance with the accounting policy applicable to that asset.
Assets held under other leases were classified as operating leases and were not recognized in Brookfield Renewable’s consolidated statements of financial position. Payments made under operating leases were recognized in the consolidated statements of income on a straight-line basis over the term of the lease. Lease incentives received were recognized as an integral part of the total lease expense, over the term of the lease.
(d) Recently adopted accounting standards
Except for the changes below, Brookfield Renewable has consistently applied the accounting policies to all periods presented in these consolidated financial statements.
IFRS 3 – Business Combinations
In October 2018, the IASB issued an amendment to IFRS 3, effective for annual periods beginning on or after January 1, 2020 with early adoption permitted. The amendment clarifies that a business must include, at minimum, an input and a substantive process that together contribute to the ability to create outputs, and assists companies in determining whether an acquisition is a business combination or an acquisition of a group of assets by providing supplemental guidance for assessing whether an acquired process is substantive. Brookfield Renewable has decided to early adopt the amendments to IFRS 3 effective January 1, 2019 and shall apply the amended standard in assessing business combinations on a prospective basis. For acquisitions that are determined to be acquisitions of assets as opposed to business combinations, Brookfield Renewable will allocate the transaction price and transaction costs to the individual identified assets acquired and liabilities assumed on the basis of their relative fair values, and no goodwill will be recognized. Acquisitions that continue to meet the definition of a business combination will be accounted for under the acquisition method, without any changes to Brookfield Renewable’s accounting policy.
IFRS 16 – Leases
On January 1, 2019 Brookfield Renewable adopted IFRS 16 using the modified retrospective approach, under which the cumulative effect of initial application is recognized in retained earnings at that date. As a result, Brookfield Renewable has changed its accounting policy for lease contracts as detailed below.

Brookfield Renewable Partners L.P.
Q3 2019 Interim Consolidated Financial Statements and Notes

September 30, 2019
 
Page 11


Definition of a lease
Previously, Brookfield Renewable determined at contract inception whether an arrangement is or contains a lease under IFRIC 4. Under IFRS 16, Brookfield Renewable assesses whether a contract is or contains a lease based on the definition of a lease, as explained in Note 1(c).
On transition to IFRS 16, Brookfield Renewable elected to apply the practical expedient to grandfather the assessment of which transactions are leases. Brookfield Renewable applied IFRS 16 only to contracts that were previously identified as leases. Contracts that were not identified as leases under IAS 17 and IFRIC 4 were not reassessed to determine whether there is a lease. Therefore, the definition of a lease under IFRS 16 was applied only to contracts entered into or changed on or after January 1, 2019.
Leases classified as operating leases under IAS 17
At transition, lease liabilities were measured at the present value of the remaining lease payments, discounted at Brookfield Renewable’s incremental borrowing rate as at January 1, 2019. Right-of-use assets are measured at an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments.
Brookfield Renewable used the following practical expedients when applying IFRS 16 to leases previously classified as operating leases under IAS 17:
•
Applied the exemption not to recognize right-of-use asset and liabilities for leases with less than twelve months of lease term; and
•
Excluded initial direct costs from measuring the right-of-use asset at the date of initial application.
Leases classified as finance leases under IAS 17
For leases that were classified as finance leases under IAS 17, the carrying amount of the right-of-use asset and the lease liability at January 1, 2019 are determined at the carrying amount of the lease asset and lease liability under IAS 17 immediately before that date.
Impacts on financial statements
On transition to IFRS 16, Brookfield Renewable recognized an additional $145 million of right-of-use assets and $147 million of lease liabilities, recognizing the difference in retained earnings.
When measuring lease liabilities, Brookfield Renewable discounted lease payments using its incremental borrowing rate at January 1, 2019. The weighted-average rate applied was 5.5%. The difference between the operating lease commitments disclosed at December 31, 2018 of $250 million and leases liabilities recognized at January 1, 2019 of $147 million is primarily due to the time value of money.
2. ACQUISITIONS
India Wind Portfolio
Brookfield Renewable, along with its institutional partners, completed a transaction in India to acquire a 105 MW operating wind facility on June 7, 2019 and a 105 MW operating wind facility on July 8, 2019 (collectively, the "India Wind Portfolio").
Brookfield Renewable acquired the India Wind Portfolio for a total consideration of INR 4.6 billion ($67 million), plus a contingent payment expected to be INR 0.8 billion ($12 million). Brookfield Renewable expects to hold a 25% economic interest. The total acquisition costs of less than $1 million were expensed as incurred and have been classified under Other in the consolidated statement of income.
Brookfield Renewable has a voting agreement with an affiliate of Brookfield that ultimately controls the India Wind Portfolio. Pursuant to this voting agreement, Brookfield Renewable is entitled to direct the election of the directors of the Brookfield affiliate that ultimately controls and operates the India Wind Portfolio.
This investment was accounted for using the acquisition method, and the results of operations have been included in the unaudited interim consolidated financial statements since the date of the acquisition. If the acquisition had taken place at the beginning of the year, the revenue from India Wind Portfolio would have been $34 million for the nine months ended September 30, 2019.

Brookfield Renewable Partners L.P.
Q3 2019 Interim Consolidated Financial Statements and Notes

September 30, 2019
 
Page 12


China Wind Facility
On September 30, 2019, Brookfield Renewable, along with its institutional partners, completed the acquisition of a 200 MW operating wind facility in China ("China Wind Facility") for a total consideration of CNY 1,140 million ($160 million). Brookfield Renewable expects to hold a 25% economic interest. The total acquisition costs of less than $1 million were expensed as incurred and have been classified under Other in the consolidated statement of income.
Brookfield Renewable has a voting agreement with an affiliate of Brookfield that ultimately controls the China Wind Facility. Pursuant to this voting agreement, Brookfield Renewable is entitled to direct the election of the directors of the Brookfield affiliate that ultimately controls and operates the China Wind Facility.
This investment was accounted for using the acquisition method, and the results of operations have been included in the unaudited interim consolidated financial statements since the date of the acquisition. If the acquisition had taken place at the beginning of the year, the revenue from the China Wind Facility would have been $30 million for the for the nine months ended September 30, 2019.
The purchase price allocation, at fair value, with respect to the acquisitions are as follows:
(MILLIONS)
India Wind

 
China Wind

 
Total

Restricted cash
$
4

 
$
2

 
$
6

Trade receivables and other current assets
14

 
51

 
65

Property, plant and equipment
243

 
307

 
550

Other non-current assets
10

 
—

 
10

Current liabilities
(1
)
 
(23
)
 
(24
)
Current portion of non-recourse borrowings
(12
)
 
(18
)
 
(30
)
Financial instruments
(4
)
 
—

 
(4
)
Non-recourse borrowings
(158
)
 
(131
)
 
(289
)
Deferred income tax liabilities
(8
)
 
(28
)
 
(36
)
Other long-term liabilities
(9
)
 
—

 
(9
)
Fair value of net assets acquired
$
79

 
$
160

 
$
239

3. DISPOSAL OF ASSETS
In May and August 2019, Brookfield Renewable, along with its institutional partners, completed the partial sale of its South African Portfolio, corresponding to 146 MW of wind and solar assets. The total consideration was ZAR 1,651 million ($112 million). This resulted in a loss on disposition of $8 million recognized in the consolidated statements of income under Other. The total proceeds, net of foreign exchange contract settlements, was $135 million ($42 million net to Brookfield Renewable). Immediately prior to the classification of the portfolio as held for sale in 2018, Brookfield Renewable performed a revaluation of the property, plant and equipment and recorded a fair value uplift of $42 million, in line with its election to apply the revaluation method. Brookfield Renewable’s interest in the portfolio was approximately 31%. As a result of the disposition, Brookfield Renewable's portion of the accumulated revaluation surplus of $13 million post-tax was reclassified from other comprehensive income directly to equity and noted as an Other item in the consolidated statements of changes in equity.
Summarized financial information relating to the disposal of the South Africa portfolio is shown below:
(MILLIONS)
 
South Africa

Proceeds
 
$
112

Carrying value of net assets held for sale
 
 
Assets
 
616

Liabilities
 
(410
)
Non-controlling interests
 
(86
)
 
 
120

Loss on disposal
 
$
(8
)

Brookfield Renewable Partners L.P.
Q3 2019 Interim Consolidated Financial Statements and Notes

September 30, 2019
 
Page 13


4.  ASSETS HELD FOR SALE
As at September 30, 2019, assets held for sale within Brookfield Renewable's operating segments include portfolios of wind and solar assets in Thailand, Malaysia, South Africa, Northern Ireland and Portugal.
The following is a summary of the major items of assets and liabilities classified as held for sale:
(MILLIONS)
 
September 30, 2019

 
December 31, 2018

Assets
 
 
 
 
Cash and cash equivalents
 
$
19

 
$
8

Restricted cash
 
20

 
47

Trade receivables and other current assets
 
24

 
28

Property, plant and equipment
 
716

 
749

Goodwill
 
—

 
22

Other long-term assets
 
3

 
66

Assets held for sale
 
$
782

 
$
920

Liabilities
 
 
 
 
Current liabilities
 
$
15

 
$
23

Long-term debt
 
255

 
360

Other long-term liabilities
 
115

 
150

Liabilities directly associated with assets held for sale
 
$
385

 
$
533

Northern Ireland Portfolio
The proportionate amount of consideration attributable to the institutional partners upon the closing of the transaction approximates their economic interest in the Northern Ireland Portfolio. The carrying amounts of the assets and directly associated liabilities classified as held for sale are $239 million and $140 million, respectively, as at September 30, 2019. These carrying amounts have been presented separately in the consolidated statement of financial position. A revaluation of the Northern Ireland Portfolio was performed in accordance with Brookfield Renewable's accounting policy election to apply the revaluation method.
Portugal Portfolio
The proportionate amount of consideration attributable to the institutional partners upon the closing of the transaction approximates their economic interest in the Portugal Portfolio. The carrying amounts of the assets and directly associated liabilities classified as held for sale are $212 million and $130 million, respectively, as at September 30, 2019. These carrying amounts have been presented separately in the consolidated statement of financial position. A revaluation of the Portugal Portfolio was performed in accordance with Brookfield Renewable's accounting policy election to apply the revaluation method.
Completed Asset Sales
In May and August 2019, Brookfield Renewable, along with its institutional partners, completed the partial sale of its South African portfolio, corresponding to 146 MW of wind and solar assets. See Note 3 - Disposal of assets.
Subsequent to quarter-end, Brookfield Renewable completed the sale of a wind portfolio in Northern Ireland and a wind portfolio in Portugal for total proceeds of $186 million ($74 million net to Brookfield Renewable).


Brookfield Renewable Partners L.P.
Q3 2019 Interim Consolidated Financial Statements and Notes

September 30, 2019
 
Page 14


5.  RISK MANAGEMENT AND FINANCIAL INSTRUMENTS
RISK MANAGEMENT
Brookfield Renewable`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. Brookfield Renewable uses financial instruments primarily to manage these risks.
There have been no material changes in exposure to these risks since the December 31, 2018 audited consolidated financial statements.
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 Partners L.P.
Q3 2019 Interim Consolidated Financial Statements and Notes

September 30, 2019
 
Page 15


The following table presents Brookfield Renewable's assets and liabilities measured and disclosed at fair value classified by the fair value hierarchy:
 
September 30, 2019
 
December 31, 2018
(MILLIONS)
Level 1

 
Level 2

 
Level 3

 
Total

 
Total

Assets measured at fair value:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
209

 
$
—

 
$
—

 
$
209

 
$
173

Restricted cash(1)
209

 
—

 
—

 
209

 
181

Financial instrument assets(2)
 
 
 
 
 
 


 
 
Energy derivative contracts
—

 
45

 
—

 
45

 
3

Interest rate swaps
—

 
1

 
—

 
1

 
9

Foreign exchange swaps
—

 
45

 
—

 
45

 
55

Investments in equity securities
72

 
63

 
46

 
181

 
117

Property, plant and equipment
—

 
—

 
28,350

 
28,350

 
29,025

Liabilities measured at fair value:
 
 
 
 
 
 


 
 
Financial instrument liabilities(3)
 
 
 
 
 
 


 
 
Energy derivative contracts
—

 
(3
)
 
—

 
(3
)
 
(22
)
Interest rate swaps
—

 
(155
)
 
—

 
(155
)
 
(116
)
Foreign exchange swaps
—

 
(9
)
 
—

 
(9
)
 
—

Contingent consideration(3)
—

 
—

 
(14
)
 
(14
)
 
(3
)
Assets for which fair value is disclosed:
 
 
 
 
 
 


 
 
Equity-accounted investments(4)
1,143

 
—

 
—

 
1,143

 
703

Liabilities for which fair value is disclosed:
 
 
 
 
 
 


 
 
Corporate borrowings
(2,237
)
 
(13
)
 
—

 
(2,250
)
 
(2,367
)
Non-recourse borrowing
(412
)
 
(8,867
)
 
—

 
(9,279
)
 
(8,696
)
Total
$
(1,016
)
 
$
(8,893
)
 
$
28,382

 
$
18,473

 
$
19,062

(1) 
Includes both the current amount and long-term amount included in Other long-term assets.
(2) 
Includes both current and long-term amounts.
(3) 
Amount relates to business combinations with obligations lapsing in 2019 to 2024.
(4) 
The fair value corresponds to Brookfield Renewable's investment in publicly-quoted common shares of TerraForm Power, Inc.
There were no transfers between levels during the nine months ended September 30, 2019.
Financial instruments disclosures
The aggregate amount of Brookfield Renewable's net financial instrument positions are as follows:
 
September 30, 2019
 
December 31, 2018
(MILLIONS)
Assets

 
Liabilities

 
Net Assets
(Liabilities)

 
Net Assets
(Liabilities)

Energy derivative contracts
$
45

 
$
3

 
$
42

 
$
(19
)
Interest rate swaps
1

 
155

 
(154
)
 
(107
)
Foreign exchange swaps
45

 
9

 
36

 
55

Investments in equity securities
181

 
—

 
181

 
117

Total
272

 
167

 
105

 
46

Less: current portion
75

 
21

 
54

 
33

Long-term portion
$
197

 
$
146

 
$
51

 
$
13


Brookfield Renewable Partners L.P.
Q3 2019 Interim Consolidated Financial Statements and Notes

September 30, 2019
 
Page 16


(a)   Energy derivative contracts
Brookfield Renewable 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 Brookfield Renewable'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.
(b)   Interest rate hedges
Brookfield Renewable 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.
(c)   Foreign exchange swaps
Brookfield Renewable 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.
(d)   Investments in equity securities
Brookfield Renewable's investments in equity securities consist of investments in publicly-quoted and non-publicly quoted securities which are recorded on the statement of financial position at fair value.  
The following table reflects the unrealized gains (losses) included in Foreign exchange and unrealized financial instrument loss in the interim consolidated statements of income:
 
Three months ended September 30
 
Nine months ended September 30
(MILLIONS)
2019

 
2018

 
2019

 
2018

Energy derivative contracts
$
(3
)
 
$
(3
)
 
$
9

 
$
(1
)
Interest rate swaps
(9
)
 
4

 
(41
)
 
24

Foreign exchange swaps - cash flow
20

 
10

 
1

 
56

Foreign exchange gain (loss)
(18
)
 
(21
)
 
(9
)
 
(114
)
 
$
(10
)
 
$
(10
)
 
$
(40
)
 
$
(35
)
The following table reflects the gains (losses) included in other comprehensive income in the interim consolidated statements of comprehensive loss:
 
Three months ended September 30
 
Nine months ended September 30
(MILLIONS)
2019

 
2018

 
2019

 
2018

Energy derivative contracts
$
(7
)
 
$
(14
)
 
$
31

 
$
(11
)
Interest rate swaps
(10
)
 
2

 
(46
)
 
13

 
(17
)
 
(12
)
 
(15
)
 
2

Foreign exchange swaps - net investment
21

 
(11
)
 
22

 
50

Investments in equity securities
14

 
10

 
37

 
(1
)
 
$
18

 
$
(13
)
 
$
44

 
$
51

The following table reflects the reclassification adjustments recognized in net income in the interim consolidated statements of comprehensive loss:
 
Three months ended September 30
 
Nine months ended September 30
(MILLIONS)
2019

 
2018

 
2019

 
2018

Energy derivative contracts
$
(4
)
 
$
—

 
$
(11
)
 
$
8

Interest rate swaps
3

 
3

 
10

 
9

 
$
(1
)
 
$
3

 
$
(1
)
 
$
17


Brookfield Renewable Partners L.P.
Q3 2019 Interim Consolidated Financial Statements and Notes

September 30, 2019
 
Page 17


6. SEGMENTED INFORMATION
Brookfield Renewable’s Chief Executive Officer and Chief Financial Officer (collectively, the chief operating decision maker or “CODM”) review the results of the business, manage operations, and allocate resources based on the type of technology.
Our operations are segmented by – 1) hydroelectric, 2) wind, 3) solar, 4) storage & other (cogeneration and biomass), and 5) corporate – with hydroelectric and wind further segmented by geography (i.e., North America, Colombia, Brazil, Europe and Asia). This best reflects the way in which the CODM reviews results, manages operations and allocates resources. The Colombia segment aggregates the financial results of its hydroelectric and cogeneration facilities. The Canada segment includes the financial results of our strategic investment in TransAlta Corporation ("TransAlta"). The corporate segment represents all activity performed above the individual segments for the business.
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 Brookfield Renewable’s share from facilities which it accounts for using consolidation and the equity method whereby Brookfield Renewable either controls or exercises significant influence or joint control over the investment, respectively. Proportionate information provides a Unitholder (holders of the GP interest, Redeemable/Exchangeable partnership units, and LP Units) perspective that the CODM considers important when performing internal analyses and making strategic and operating decisions. The CODM also believes that providing proportionate information helps investors understand the impacts of decisions made by management and financial results allocable to Brookfield Renewable’s Unitholders.
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. 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 Brookfield Renewable’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 us apportioned to each of the above-noted items.
Brookfield Renewable does not control those entities that have not been consolidated and as such, have been presented as equity-accounted investments in its financial statements. The presentation of the assets and liabilities and revenues and expenses does not represent Brookfield Renewable’s legal claim to such items, and the removal of financial statement amounts that are attributable to non-controlling interests does not extinguish Brookfield Renewable’s legal claims or exposures to such items.
Brookfield Renewable reports its results in accordance with these segments and presents prior period segmented information in a consistent manner.
In accordance with IFRS 8, Operating Segments, Brookfield Renewable discloses information about its reportable segments based upon the measures used by the CODM in assessing performance. Except as it relates to proportionate financial information discussed above, the accounting policies of the reportable segments are the same as those described in Note 1 – Basis of preparation and significant accounting policies. Brookfield Renewable analyzes the performance of its operating segments based on revenues, Adjusted EBITDA, and Funds From Operations.
Brookfield Renewable uses Adjusted EBITDA to assess the performance of its operations before the effects of interest expense, income taxes, depreciation, management service costs, non-controlling interests, unrealized gain or loss on financial instruments, non-cash gain or loss from equity-accounted investments, distributions to preferred shareholders and preferred limited partners and other typical non-recurring items.
Brookfield Renewable uses Funds From Operations to assess the performance of its operations and is defined as Adjusted EBITDA less management service costs, interest and current income taxes, which is then adjusted for the cash portion of non-controlling interests and distributions to preferred shareholders and preferred limited partners.  

Brookfield Renewable Partners L.P.
Q3 2019 Interim Consolidated Financial Statements and Notes

September 30, 2019
 
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 Brookfield Renewable's proportionate results to the consolidated statements of income on a line by line basis by aggregating the components comprising the earnings from Brookfield Renewable's investments in associates and reflecting the portion of each line item attributable to non-controlling interests for the three months ended September 30, 2019:
 
Attributable to Unitholders
 
Contribution from equity-accounted investments

 
Attributable
 to non-
 controlling
 interests

 
 As per
IFRS
financials(1) 

 
Hydroelectric
 
Wind
 
Solar

 
Storage
and
Other

 
Corporate

 
Total

 
(MILLIONS)
North
America

 
Brazil

 
Colombia

 
North
America

 
Europe

 
Brazil

 
Asia

 
 
Revenues
161

 
50

 
56

 
46

 
21

 
11

 
8

 
56

 
21

 
—

 
430

 
(97
)
 
309

 
642

Other income
2

 
17

 
—

 
—

 
2

 
—

 
—

 
3

 
—

 
4

 
28

 
(5
)
 
2

 
25

Direct operating costs
(68
)
 
(14
)
 
(22
)
 
(14
)
 
(8
)
 
(2
)
 
(1
)
 
(10
)
 
(12
)
 
(6
)
 
(157
)
 
26

 
(108
)
 
(239
)
Share of Adjusted EBITDA from equity-accounted investments
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
76

 
3

 
79

Adjusted EBITDA
95

 
53

 
34

 
32

 
15

 
9

 
7

 
49

 
9

 
(2
)
 
301

 
—

 
206

 
 
Management service costs
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(29
)
 
(29
)
 
—

 
—

 
(29
)
Interest expense - borrowings
(39
)
 
(4
)
 
(9
)
 
(16
)
 
(6
)
 
(2
)
 
(2
)
 
(13
)
 
(3
)
 
(21
)
 
(115
)
 
28

 
(77
)
 
(164
)
Current income taxes
(1
)
 
(3
)
 
(1
)
 
(1
)
 
—

 
—

 
—

 
—

 
—

 
—

 
(6
)
 
3

 
(7
)
 
(10
)
Distributions attributable to
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred limited partners equity
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(12
)
 
(12
)
 
—

 
—

 
(12
)
Preferred equity
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(6
)
 
(6
)
 
—

 
—

 
(6
)
Share of interest and cash taxes from equity accounted investments
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(31
)
 
2

 
(29
)
Share of Funds From Operations attributable to non-controlling interests
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(124
)
 
(124
)
Funds From Operations
55

 
46

 
24

 
15

 
9

 
7

 
5

 
36

 
6

 
(70
)
 
133

 
—

 
—

 
 
Depreciation
(57
)
 
(22
)
 
(5
)
 
(38
)
 
(11
)
 
(4
)
 
(1
)
 
(13
)
 
(6
)
 
(1
)
 
(158
)
 
35

 
(77
)
 
(200
)
Foreign exchange and unrealized financial instrument loss
(3
)
 
(2
)
 
2

 
3

 
(10
)
 
(2
)
 
—

 
(4
)
 
(1
)
 
3

 
(14
)
 
8

 
(4
)
 
(10
)
Deferred income tax expense
25

 
1

 
(1
)
 
(4
)
 
2

 
—

 
—

 
(1
)
 
—

 
4

 
26

 
1

 
(4
)
 
23

Other
(20
)
 
(1
)
 
(1
)
 
(2
)
 
3

 
(4
)
 
(3
)
 
(8
)
 
—

 
(4
)
 
(40
)
 
5

 
(3
)
 
(38
)
Share of earnings from equity-accounted investments
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(49
)
 
—

 
(49
)
Net loss attributable to non-controlling interests
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
88

 
88

Net income (loss) attributable to Unitholders(2)
—

 
22

 
19

 
(26
)
 
(7
)
 
(3
)
 
1

 
10

 
(1
)
 
(68
)
 
(53
)
 
—

 
—

 
(53
)
(1) 
Share of earnings from equity-accounted investments of $1 million is comprised of amounts found on the share of Adjusted EBITDA, share of interest and cash taxes and share of earnings lines. Net income attributable to participating non-controlling interests - in operating subsidiaries of $36 million is comprised of amounts found on Share of Funds From Operations attributable to non-controlling interests and Net loss attributable to non-controlling interests.
(2) 
Net income (loss) attributable to Unitholders includes net income (loss) attributable to GP interest, Redeemable/Exchangeable partnership units and LP Units. Total net income (loss) includes amounts attributable to Unitholders, non-controlling interests, preferred limited partners equity and preferred equity.

Brookfield Renewable Partners L.P.
Q3 2019 Interim Consolidated Financial Statements and Notes

September 30, 2019
 
Page 19


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 Brookfield Renewable's proportionate results to the consolidated statements of income on a line by line basis by aggregating the components comprising the earnings from Brookfield Renewable's investments in associates and reflecting the portion of each line item attributable to non-controlling interests for the three months ended September 30, 2018:
 
Attributable to Unitholders
 
Contribution from equity-accounted investments

 
Attributable
 to non-
 controlling
 interests

 
 As per
IFRS
financials(1) 

 
Hydroelectric
 
Wind
 
Solar

 
Storage
and
Other

 
Corporate

 
Total

 
(MILLIONS)
North
America

 
Brazil

 
Colombia

 
North
America

 
Europe

 
Brazil

 
Asia

 
 
Revenues
166

 
53

 
54

 
50

 
17

 
15

 
4

 
58

 
25

 
—

 
442

 
(100
)
 
332

 
674

Other income
1

 
1

 
—

 
—

 
—

 
—

 
—

 
1

 
—

 
1

 
4

 
(1
)
 
4

 
7

Direct operating costs
(68
)
 
(16
)
 
(25
)
 
(20
)
 
(8
)
 
(2
)
 
(1
)
 
(13
)
 
(11
)
 
(5
)
 
(169
)
 
31

 
(119
)
 
(257
)
Share of Adjusted EBITDA from equity-accounted investments
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
70

 
—

 
70

Adjusted EBITDA
99

 
38

 
29

 
30

 
9

 
13

 
3

 
46

 
14

 
(4
)
 
277

 
—

 
217

 
 
Management service costs
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(22
)
 
(22
)
 
—

 
—

 
(22
)
Interest expense - borrowings
(44
)
 
(5
)
 
(9
)
 
(16
)
 
(6
)
 
(2
)
 
(1
)
 
(15
)
 
(3
)
 
(27
)
 
(128
)
 
29

 
(77
)
 
(176
)
Current income taxes
(2
)
 
(2
)
 
—

 
—

 
(1
)
 
—

 
—

 
—

 
—

 
—

 
(5
)
 
2

 
(3
)
 
(6
)
Distributions attributable to
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred limited partners equity
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(10
)
 
(10
)
 
—

 
—

 
(10
)
Preferred equity
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(7
)
 
(7
)
 
—

 
—

 
(7
)
Share of interest and cash taxes from equity accounted investments
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(31
)
 
—

 
(31
)
Share of Funds From Operations attributable to non-controlling interests
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(137
)
 
(137
)
Funds From Operations
53

 
31

 
20

 
14

 
2

 
11

 
2

 
31

 
11

 
(70
)
 
105

 
—

 
—

 
 
Depreciation
(57
)
 
(32
)
 
(4
)
 
(34
)
 
(13
)
 
(3
)
 
—

 
(11
)
 
(5
)
 
(1
)
 
(160
)
 
32

 
(64
)
 
(192
)
Foreign exchange and unrealized financial instrument loss
(5
)
 
1

 
—

 
—

 
1

 
(3
)
 
(1
)
 
—

 
—

 
1

 
(6
)
 
—

 
(4
)
 
(10
)
Deferred income tax expense
7

 
—

 
(1
)
 
(4
)
 
1

 
—

 
—

 
(1
)
 
—

 
15

 
17

 
3

 
(9
)
 
11

Other
(1
)
 
2

 
(4
)
 
(3
)
 
—

 
—

 
—

 
—

 
(1
)
 
(4
)
 
(11
)
 
(2
)
 
(5
)
 
(18
)
Share of earnings from equity-accounted investments
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(33
)
 
—

 
(33
)
Net loss attributable to non-controlling interests
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
82

 
82

Net income (loss) attributable to Unitholders(2)
(3
)
 
2

 
11

 
(27
)
 
(9
)
 
5

 
1

 
19

 
5

 
(59
)
 
(55
)
 
—

 
—

 
(55
)
(1) 
Share of earnings from equity-accounted investments of $6 million is comprised of amounts found on the share of Adjusted EBITDA, share of interest and cash taxes and share of earnings lines. Net income attributable to participating non-controlling interests - in operating subsidiaries of $55 million is comprised of amounts found on Share of Funds From Operations attributable to non-controlling interests and Net loss attributable to non-controlling interests.
(2) 
Net income (loss) attributable to Unitholders includes net income (loss) attributable to GP interest, Redeemable/Exchangeable partnership units and LP Units. Total net income (loss) includes amounts attributable to Unitholders, non-controlling interests, preferred limited partners equity and preferred equity.

Brookfield Renewable Partners L.P.
Q3 2019 Interim Consolidated Financial Statements and Notes

September 30, 2019
 
Page 20


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 Brookfield Renewable's proportionate results to the consolidated statements of income on a line by line basis by aggregating the components comprising the earnings from Brookfield Renewable's investments in associates and reflecting the portion of each line item attributable to non-controlling interests for the nine months ended September 30, 2019:
 
Attributable to Unitholders
 
Contribution from equity-accounted investments

 
Attributable
 to non-
 controlling
 interests

 
As per
IFRS
financials(1)

 
Hydroelectric
 
Wind
 
Solar

 
Storage
and
Other

 
Corporate

 
Total

 
(MILLIONS)
North
America

 
Brazil

 
Colombia

 
North
America

 
Europe

 
Brazil

 
Asia

 
 
Revenues
700

 
173

 
174

 
167

 
71

 
27

 
13

 
145

 
66

 
—

 
1,536

 
(286
)
 
1,004

 
2,254

Other income
11

 
20

 
—

 
2

 
3

 
—

 
—

 
5

 
—

 
8

 
49

 
(11
)
 
12

 
50

Direct operating costs
(210
)
 
(49
)
 
(67
)
 
(49
)
 
(24
)
 
(7
)
 
(3
)
 
(27
)
 
(36
)
 
(17
)
 
(489
)
 
82

 
(338
)
 
(745
)
Share of Adjusted EBITDA from equity-accounted investments
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
215

 
15

 
230

Adjusted EBITDA
501

 
144

 
107

 
120

 
50

 
20

 
10

 
123

 
30

 
(9
)
 
1,096

 
—

 
693

 
 
Management service costs
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(73
)
 
(73
)
 
—

 
—

 
(73
)
Interest expense - borrowings
(119
)
 
(16
)
 
(25
)
 
(51
)
 
(13
)
 
(6
)
 
(3
)
 
(42
)
 
(10
)
 
(70
)
 
(355
)
 
78

 
(238
)
 
(515
)
Current income taxes
(7
)
 
(9
)
 
(7
)
 
(2
)
 
—

 
(1
)
 
—

 
—

 
—

 
—

 
(26
)
 
4

 
(27
)
 
(49
)
Distributions attributable to
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred limited partners equity
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(33
)
 
(33
)
 
—

 
—

 
(33
)
Preferred equity
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(19
)
 
(19
)
 
—

 
—

 
(19
)
Share of interest and cash taxes from equity accounted investments
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(82
)
 
(7
)
 
(89
)
Share of Funds From Operations attributable to non-controlling interests
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(421
)
 
(421
)
Funds From Operations
375

 
119

 
75

 
67

 
37

 
13

 
7

 
81

 
20

 
(204
)
 
590

 
—

 
—

 
 
Depreciation
(168
)
 
(66
)
 
(15
)
 
(117
)
 
(34
)
 
(13
)
 
(3
)
 
(41
)
 
(18
)
 
(3
)
 
(478
)
 
104

 
(226
)
 
(600
)
Foreign exchange and unrealized financial instrument loss
—

 
1

 
1

 
2

 
(19
)
 
(3
)
 
—

 
—

 
(2
)
 
(25
)
 
(45
)
 
13

 
(8
)
 
(40
)
Deferred income tax expense
(15
)
 
3

 
(5
)
 
13

 
8

 
—

 
(1
)
 
15

 
—

 
22

 
40

 
(35
)
 
(16
)
 
(11
)
Other
(46
)
 
(2
)
 
—

 
(9
)
 
1

 
1

 
(1
)
 
(32
)
 
—

 
(12
)
 
(100
)
 
26

 
33

 
(41
)
Share of earnings from equity-accounted investments
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(108
)
 
—

 
(108
)
Net loss attributable to non-controlling interests
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
217

 
217

Net income (loss) attributable to Unitholders(2)
146

 
55

 
56

 
(44
)
 
(7
)
 
(2
)
 
2

 
23

 
—

 
(222
)
 
7

 
—

 
—

 
7

(1) 
Share of earnings from equity-accounted investments of $33 million is comprised of amounts found on the share of Adjusted EBITDA, share of interest and cash taxes and share of earnings lines. Net income attributable to participating non-controlling interests - in operating subsidiaries of $204 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.
(2) 
Net income (loss) attributable to Unitholders includes net income (loss) attributable to GP interest, Redeemable/Exchangeable partnership units and LP Units. Total net income (loss) includes amounts attributable to Unitholders, non-controlling interests, preferred limited partners equity and preferred equity.

Brookfield Renewable Partners L.P.
Q3 2019 Interim Consolidated Financial Statements and Notes

September 30, 2019
 
Page 21


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 Brookfield Renewable's proportionate results to the consolidated statements of income on a line by line basis by aggregating the components comprising the earnings from Brookfield Renewable's investments in associates and reflecting the portion of each line item attributable to non-controlling interests for the nine months ended September 30, 2018:
 
Attributable to Unitholders
 
Contribution
from
equity
accounted
investments

 
Attributable
to non-
controlling
interests

 
As per
IFRS
financials(1)

 
Hydroelectric
 
Wind
 
Solar

 
Storage
and
Other

 
Corporate

 
Total

 
(MILLIONS)
North
America

 
Brazil

 
Colombia

 
North
America

 
Europe

 
Brazil

 
Asia

 
 
Revenues
655

 
185

 
160

 
158

 
46

 
33

 
9

 
106

 
62

 
—

 
1,414

 
(197
)
 
985

 
2,202

Other income
6

 
3

 
1

 
1

 
1

 
—

 
—

 
4

 
—

 
2

 
18

 
(5
)
 
13

 
26

Direct operating costs
(206
)
 
(55
)
 
(70
)
 
(50
)
 
(20
)
 
(7
)
 
(3
)
 
(23
)
 
(29
)
 
(17
)
 
(480
)
 
63

 
(343
)
 
(760
)
Share of Adjusted EBITDA from equity accounted investments
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
139

 
12

 
151

Adjusted EBITDA
455

 
133

 
91

 
109

 
27

 
26

 
6

 
87

 
33

 
(15
)
 
952

 
—

 
667

 


Management service costs
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(64
)
 
(64
)
 
—

 
—

 
(64
)
Interest expense - borrowings
(128
)
 
(17
)
 
(29
)
 
(44
)
 
(12
)
 
(6
)
 
(3
)
 
(30
)
 
(10
)
 
(75
)
 
(354
)
 
54

 
(234
)
 
(534
)
Current income taxes
(5
)
 
(7
)
 
—

 
(1
)
 
(2
)
 
—

 
—

 
—

 
—

 
—

 
(15
)
 
3

 
(8
)
 
(20
)
Distributions attributable to
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred limited partners equity
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(29
)
 
(29
)
 
—

 
—

 
(29
)
Preferred equity
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(20
)
 
(20
)
 
—

 
—

 
(20
)
Share of interest and cash taxes from equity accounted investments
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(57
)
 
(10
)
 
(67
)
Share of Funds From Operations attributable to non-controlling interests
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(415
)
 
(415
)
Funds From Operations
322

 
109

 
62

 
64

 
13

 
20

 
3

 
57

 
23

 
(203
)
 
470

 
—

 
—

 
 
Depreciation
(170
)
 
(103
)
 
(14
)
 
(89
)
 
(30
)
 
(10
)
 
(2
)
 
(24
)
 
(17
)
 
(1
)
 
(460
)
 
61

 
(212
)
 
(611
)
Foreign exchange and unrealized financial instrument loss
(4
)
 
—

 
1

 
3

 
6

 
(11
)
 
(2
)
 
(3
)
 
(2
)
 
14

 
2

 
(6
)
 
(31
)
 
(35
)
Deferred income tax expense
1

 
1

 
(4
)
 
(9
)
 
2

 
—

 
—

 
(1
)
 
—

 
24

 
14

 
2

 
(18
)
 
(2
)
Other
(19
)
 
(2
)
 
(4
)
 
(8
)
 
(3
)
 
—

 
(2
)
 
(10
)
 
(10
)
 
(17
)
 
(75
)
 
15

 
(12
)
 
(72
)
Share of earnings from equity accounted investments
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(72
)
 
—

 
(72
)
Net loss attributable to non-controlling interests
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
273

 
273

Net income (loss) attributable to Unitholders(2)
130

 
5

 
41

 
(39
)
 
(12
)
 
(1
)
 
(3
)
 
19

 
(6
)
 
(183
)
 
(49
)
 
—

 
—

 
(49
)
(1) 
Share of loss from equity-accounted investments of $12 million is comprised of amounts found on the share of Adjusted EBITDA, share of interest and cash taxes and share of earnings lines. Net income attributable to participating non-controlling interests - in operating subsidiaries of $142 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.
(2) 
Net income (loss) attributable to Unitholders includes net income (loss) attributable to GP interest, Redeemable/Exchangeable partnership units and LP Units. Total net income (loss) includes amounts attributable to Unitholders, non-controlling interests, preferred limited partners equity and preferred equity.



Brookfield Renewable Partners L.P.
Q3 2019 Interim Consolidated Financial Statements and Notes

September 30, 2019
 
Page 22


The following table presents information on a segmented basis about certain items in Brookfield Renewable's statements of financial position:
 
Attributable to Unitholders
 
Contribution
from
equity
accounted
investments

 
Attributable
to non-
controlling
interests

 
As per
IFRS
financials

 
Hydroelectric
 
Wind
 
Solar

 
Storage
and
Other

 
Corporate

 
Total

 
(MILLIONS)
North
America

 
Brazil

 
Colombia

 
North
America

 
Europe

 
Brazil

 
Asia

 
 
As at September 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
14

 
$
13

 
$
26

 
$
24

 
$
25

 
$
3

 
$
4

 
$
43

 
$
6

 
$
—

 
$
158

 
$
(76
)
 
$
127

 
$
209

Property, plant and equipment
11,075

 
1,737

 
1,502

 
2,449

 
624

 
313

 
189

 
1,547

 
669

 
—

 
20,105

 
(3,688
)
 
11,933

 
28,350

Total assets
11,793

 
1,903

 
1,762

 
2,579

 
912

 
335

 
230

 
1,751

 
714

 
128

 
22,107

 
(2,681
)
 
14,009

 
33,435

Total borrowings
2,899

 
177

 
437

 
1,278

 
312

 
72

 
136

 
1,151

 
231

 
2,128

 
8,821

 
(2,131
)
 
3,935

 
10,625

Other liabilities
2,823

 
135

 
414

 
476

 
217

 
8

 
62

 
343

 
27

 
—

 
4,505

 
(549
)
 
2,456

 
6,412

For the nine months ended September 30, 2019:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Additions to property, plant and equipment
78

 
26

 
11

 
109

 
16

 
3

 
—

 
—

 
17

 
2

 
262

 
(104
)
 
105

 
263

As at December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
6

 
$
37

 
$
7

 
$
30

 
$
29

 
$
5

 
$
2

 
$
41

 
$
9

 
$
3

 
$
169

 
$
(81
)
 
$
85

 
$
173

Property, plant and equipment
11,498

 
1,907

 
1,609

 
2,480

 
819

 
348

 
36

 
1,354

 
686

 
(9
)
 
20,728

 
(3,529
)
 
11,826

 
29,025

Total assets
12,125

 
2,105

 
1,868

 
2,554

 
939

 
379

 
56

 
1,650

 
746

 
161

 
22,583

 
(2,483
)
 
14,003

 
34,103

Total borrowings
2,995

 
198

 
419

 
1,210

 
463

 
75

 
31

 
1,021

 
249

 
2,328

 
8,989

 
(1,972
)
 
3,701

 
10,718

Other liabilities
2,764

 
150

 
434

 
536

 
124

 
7

 
3

 
255

 
31

 
211

 
4,515

 
(511
)
 
2,175

 
6,179

For the nine months ended September 30, 2018:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Additions to property, plant and equipment
55

 
22

 
4

 
9

 
10

 
—

 
—

 
9

 
2

 
6

 
117

 
(15
)
 
56

 
158


Brookfield Renewable Partners L.P.
Q3 2019 Interim Consolidated Financial Statements and Notes

September 30, 2019
 
Page 23


Geographical Information
The following table presents consolidated revenue split by geographical region for the three and nine months ended September 30:
 
Three months ended September 30
 
Nine months ended September 30
(MILLIONS)
2019

 
2018

 
2019

 
2018

United States
$
177

 
$
196

 
$
719

 
$
691

Colombia
230

 
222

 
718

 
664

Canada
64

 
76

 
299

 
302

Brazil
98

 
119

 
297

 
328

Europe
25

 
19

 
94

 
87

Asia
48

 
42

 
127

 
130

 
$
642

 
$
674

 
$
2,254

 
$
2,202

The following table presents consolidated property, plant and equipment and equity-accounted investments split by geographical region:
(MILLIONS)
Sep 30, 2019

 
Dec 31, 2018

United States
$
12,651

 
$
12,705

Colombia
6,234

 
6,665

Canada
5,759

 
5,705

Brazil
3,223

 
3,553

Europe
1,152

 
1,624

Asia
867

 
342

 
$
29,886

 
$
30,594

7. INCOME TAXES
Brookfield Renewable's effective income tax rate was 18.6% for the nine months ended September 30, 2019 (2018: 13.5%). The effective tax rate is different than the statutory rate primarily due to rate differentials and non-controlling interests' income not subject to tax.
8. PROPERTY, PLANT AND EQUIPMENT
The following table presents a reconciliation of property, plant and equipment at fair value:
(MILLIONS)
Notes
 
Hydro

 
Wind

 
Solar

 
Other(1)

 
Total(2)

As at December 31, 2018
 
 
$
24,679

 
$
3,860

 
$
228

 
$
258

 
$
29,025

IFRS 16 adoption (3)
1
 
79

 
62

 
—

 
4

 
145

Additions
 
 
99

 
16

 
—

 
3

 
118

Acquisitions through business combinations
2
 
—

 
550

 
—

 
—

 
550

Transfer to assets held for sale
4
 
—

 
(428
)
 
—

 
—

 
(428
)
Items recognized through OCI
 
 
 
 
 
 
 
 
 
 
 
Change in fair value

 
—

 
83

 
—

 
—

 
83

Foreign currency translation
 
 
(418
)
 
(107
)
 
(3
)
 
(15
)
 
(543
)
Items recognized through net income
 
 
 
 
 
 
 
 
 
 
 
Depreciation
 
 
(392
)
 
(184
)
 
(11
)
 
(13
)
 
(600
)
As at September 30, 2019
 
 
$
24,047

 
$
3,852

 
$
214

 
$
237

 
$
28,350

(1) 
Includes storage, biomass and cogeneration.
(2) 
Includes intangible assets of $10 million (2018: $11 million) and assets under construction of $382 million (2018: $388 million).
(3) 
On January 1, 2019 Brookfield Renewable adopted IFRS 16. See Note 1 - Basis of preparation and significant accounting policies for additional details regarding the impact of the new accounting standard adoption.

Brookfield Renewable Partners L.P.
Q3 2019 Interim Consolidated Financial Statements and Notes

September 30, 2019
 
Page 24


9. BORROWINGS
Corporate Borrowings
The composition of corporate borrowings are presented in the following table:
 
September 30, 2019
 
December 31, 2018
 
Weighted-average
 
 
 
 
 
Weighted- average
 
 
 
 
(MILLIONS EXCEPT AS NOTED)
Interest
rate (%)
 
Term
(years)

 
Carrying
value

 
Estimated fair value

 
Interest
rate (%)
 
Term
(years)

 
Carrying
value

 
Estimated fair value

Credit facilities
3.6
 
5

 
$
13

 
$
13

 
3.3
 
4

 
$
721

 
$
721

Medium Term Notes:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Series 4 (C$150)
5.8
 
17

 
113

 
$
138

 
5.8
 
18

 
$
110

 
$
124

Series 7 (C$450)
5.1
 
1

 
340

 
350

 
5.1
 
2

 
330

 
342

Series 8 (C$400)
4.8
 
2

 
302

 
319

 
4.8
 
3

 
293

 
309

Series 9 (C$400)
3.8
 
6

 
302

 
317

 
3.8
 
6

 
293

 
288

Series 10 (C$500)
3.6
 
7

 
377

 
395

 
3.6
 
8

 
367

 
357

Series 11 (C$300)
4.3
 
9

 
227

 
246

 
4.3
 
10

 
220

 
220

Series 12 (C$300)
3.4
 
10

 
227

 
229

 
—
 
—

 
—

 
—

Series 13 (C$300)
4.3
 
30

 
227

 
232

 
—
 
—

 
—

 
—

 
4.3
 
9

 
$
2,115

 
$
2,226

 
4.4
 
7

 
$
1,613

 
$
1,640

Total corporate borrowings
 
2,128

 
2,239

 
 
 
 
 
2,334

 
2,361

Less: Unamortized financing fees(1)
 
(9
)
 
 
 
 
 
 
 
(6
)
 
 
 
 
 
 
 
$
2,119

 
 
 
 
 
 
 
$
2,328

 
 
(1) 
Unamortized premiums and unamortized financing fees are amortized over the terms of the borrowing.
Brookfield Renewable issues letters of credit from its corporate credit facilities for general corporate purposes which include, but are not limited to, security deposits, performance bonds and guarantees for reserve accounts.
Brookfield Renewable and its subsidiaries issue letters of credit from some of their credit facilities for general corporate and operating purposes which include, but are not limited to, security deposits, performance bonds and guarantees for debt service reserve accounts. See Note 18 – Commitments, contingencies and guarantees for letters of credit issued by subsidiaries.
The following table summarizes the available portion of credit facilities:
(MILLIONS)
September 30, 2019

 
December 31, 2018

Authorized corporate credit facilities(1)
$
2,100

 
$
2,100

Draws on corporate credit facilities(1)
(13
)
 
(721
)
Authorized letter of credit facility
400

 
300

Issued letters of credit
(219
)
 
(209
)
Available portion of corporate credit facilities
$
2,268

 
$
1,470

(1) 
Amounts are guaranteed by Brookfield Renewable.
On June 12, 2019, Brookfield Renewable extended the maturity of $1.7 billion of its corporate credit facilities by one year to June 30, 2024. The credit facilities are used for general working capital purposes and issuing letters of credit. The credit facilities bear interest at the applicable base rate plus an applicable margin, which is tiered on the basis of Brookfield Renewable’s unsecured senior long-term debt rating and is currently 1.20% as at September 30, 2019.
In June 2019, Brookfield Renewable increased its letter of credit facility by $100 million to a total of $400 million.

Brookfield Renewable Partners L.P.
Q3 2019 Interim Consolidated Financial Statements and Notes

September 30, 2019
 
Page 25


Medium term notes
Medium term notes are obligations of a finance subsidiary of Brookfield Renewable, Brookfield Renewable Partners ULC (“Finco”) (Note 20 - Subsidiary public issuers). Finco may redeem some or all of the borrowings from time to time, pursuant to the terms of the indenture. The balance is payable upon maturity, and interest on corporate borrowings is paid semi-annually. The term notes payable by Finco are unconditionally guaranteed by Brookfield Renewable, Brookfield Renewable Energy L.P. (“BRELP”) and certain other subsidiaries.
On September 13, 2019, Brookfield Renewable completed the issuance of C$300 million ($227 million) Series 12 medium term notes and C$300 million ($227 million) Series 13 medium term notes. The medium term notes have fixed interest rates of 3.38% and 4.29%, respectively, and have maturity dates of January 2030 and November 2049, respectively. Both series were corporate-level green bonds.
Subsequent to quarter-end, Brookfield Renewable repaid C$450 million ($340 million) of Series 7 medium-term notes.
Non-recourse borrowings
Non-recourse borrowings are typically asset-specific, long-term, non-recourse borrowings denominated in the domestic currency of the subsidiary. Non-recourse borrowings in North America and Europe consist of both fixed and floating interest rate debt indexed to the London Interbank Offered Rate (“LIBOR”), the Euro Interbank Offered Rate ("EURIBOR") and the Canadian Dollar Offered Rate (“CDOR”). Brookfield Renewable uses interest rate swap agreements in North America and Europe to minimize its exposure to floating interest rates. Non-recourse borrowings in Brazil consist of floating interest rates of Taxa de Juros de Longo Prazo (“TJLP”), the Brazil National Bank for Economic Development’s long-term interest rate, or Interbank Deposit Certificate rate (“CDI”), plus a margin. Non-recourse borrowings in Colombia consist of both fixed and floating interest rates indexed to Indicador Bancario de Referencia rate (IBR), the Banco Central de Colombia short-term interest rate, and Colombian Consumer Price Index (IPC), Colombia inflation rate, plus a margin. Non-recourse borrowings in India consist of fixed interest rate debt. Non-recourse borrowings in China consist of floating interest rates of People's Bank of China ("PBOC").
The composition of non-recourse borrowings is presented in the following table:
 
September 30, 2019
 
December 31, 2018
 
Weighted-average
 
 
 
 
 
Weighted-average
 
 
 
 
(MILLIONS EXCEPT AS NOTED)
Interest
rate (%)
 
Term
(years)

 
Carrying
value

 
Estimated
fair value

 
Interest
rate (%)
 
Term
(years)

 
Carrying
value

 
Estimated
fair value

Non-recourse borrowings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hydroelectric
6.0
 
9

 
$
6,354

 
$
6,939

 
6.1
 
9

 
$
6,318

 
$
6,517

Wind
5.3
 
11

 
1,974

 
2,099

 
4.7
 
11

 
1,914

 
1,957

Solar
5.9
 
6

 
146

 
150

 
6.0
 
7

 
142

 
133

Storage and other
4.0
 
4

 
88

 
91

 
4.1
 
5

 
91

 
95

Total
5.8
 
9

 
$
8,562

 
$
9,279

 
5.7
 
10

 
$
8,465

 
$
8,702

Add: Unamortized premiums(1)
 
9

 
 
 
 
 
 
 
1

 
 
Less: Unamortized financing fees(1)
 
(65
)
 
 
 
 
 
 
 
(76
)
 
 
Less: Current portion
 
(384
)
 
 
 
 
 
 
 
(495
)
 
 
 
 
 
 
 
$
8,122

 
 
 
 
 
 
 
$
7,895

 
 
(1) 
Unamortized premiums and unamortized financing fees are amortized over the terms of the borrowing.
On February 25, 2019, Brookfield Renewable completed a C$70 million ($53 million) non-recourse financing associated with a 20 MW hydroelectric facility in Ontario. The debt bears an interest rate of 4.13% and matures in 2045.
On June 6, 2019, Brookfield Renewable completed a bond financing associated with the Colombian business. The financing consisted of COP 1.1 trillion ($333 million) in senior unsecured bonds with maturities of 4, 8, 15 and 30 years at rates of 6.09%, 6.98%, IPC + 3.68% and IPC + 3.97%, respectively.
On June 14, 2019, Brookfield Renewable completed a refinancing of €325 million ($365 million) of debt associated with the European business. The amortizing debt, including associated swaps, bears a fixed interest rate of 3.18% and matures in December 2032.

Brookfield Renewable Partners L.P.
Q3 2019 Interim Consolidated Financial Statements and Notes

September 30, 2019
 
Page 26


On June 21, 2019, Brookfield Renewable completed a refinancing of $30 million associated with a hydroelectric portfolio in the United States. The debt bears a fixed rate of 3.42% and matures in January 2022.
On August 15, 2019, Brookfield Renewable completed a refinancing of $45 million associated with the United States hydroelectric business. The debt bears interest at the applicable base rate plus a margin of 2.75% and matures in September 2022.
10. NON-CONTROLLING INTERESTS
Brookfield Renewable`s non-controlling interests are comprised of the following:
(MILLIONS)
September 30, 2019

 
December 31, 2018

Participating non-controlling interests - in operating subsidiaries
$
7,841

 
$
8,129

General partnership interest in a holding subsidiary held by Brookfield
61

 
66

Participating non-controlling interests - in a holding subsidiary - Redeemable/Exchangeable units held by Brookfield
2,974

 
3,252

Preferred equity
585

 
568

 
$
11,461

 
$
12,015

On February 24, 2019, Brookfield Renewable completed the sale of an additional 25% non-controlling, indirect interest in a portfolio of select Canadian hydroelectric assets to a consortium of buyers. This sale was for the same price as our initial 25% non-controlling interest sale of this portfolio disclosed in Note 31 of our 2018 annual audited consolidated financial statements, subject to an adjustment for dividend recapitalization completed in the fourth quarter of 2018. Cash consideration of C$331 million was received from the non-controlling shareholders on February 28, 2019. Upon completion of the sale, Brookfield Renewable recognized a $4 million gain directly in equity.
Subsequent to completion of the sale, Brookfield Renewable has continued to control and operate the assets and maintains a 50% economic interest in the portfolio.

Brookfield Renewable Partners L.P.
Q3 2019 Interim Consolidated Financial Statements and Notes

September 30, 2019
 
Page 27


Participating non-controlling interests -in operating subsidiaries
The net change in participating non-controlling interests - in operating subsidiaries is as follows:
(MILLIONS) 
Brookfield
Americas
Infrastructure Fund

 
Brookfield
Infrastructure Fund II

 
Brookfield
Infrastructure Fund III

 
Brookfield
Infrastructure Fund IV

 
Canadian Hydroelectric Portfolio

 
The
Catalyst Group

 
Isagen
institutional
investors

 
Isagen
public non-
controlling interests

 
Other

 
Total

As at December 31, 2017
$
850

 
$
1,682

 
$
1,852

 
$
—

 
$
—

 
$
134

 
$
1,701

 
$
9

 
$
70

 
$
6,298

Net income
1

 
9

 
86

 
—

 
4

 
14

 
174

 
1

 
8

 
297

OCI
66

 
298

 
805

 
—

 
(11
)
 
(18
)
 
504

 
5

 
58

 
1,707

Capital contributions
—

 
9

 
5

 
—

 
293

 
—

 
—

 
—

 
—

 
307

Acquisition
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
21

 
21

Distributions
(17
)
 
(81
)
 
(276
)
 
—

 
—

 
(6
)
 
(167
)
 
—

 
(6
)
 
(553
)
Other
—

 
12

 
(3
)
 
—

 
(10
)
 
—

 
—

 
—

 
53

 
52

As at December 31, 2018
$
900

 
$
1,929

 
$
2,469

 
$
—

 
$
276

 
$
124

 
$
2,212

 
$
15

 
$
204

 
$
8,129

Net income (loss)
4

 
(13
)
 
52

 
3

 
15

 
18

 
118

 
—

 
7

 
204

OCI
(10
)
 
11

 
(89
)
 
(1
)
 
6

 
—

 
(140
)
 
(1
)
 
(1
)
 
(225
)
Capital contributions
—

 
—

 
2

 
64

 
269

 
—

 
—

 
(2
)
 
—

 
333

Disposal
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(83
)
 
(83
)
Distributions
(16
)
 
(64
)
 
(224
)
 
—

 
(1
)
 
(11
)
 
(189
)
 
(1
)
 
(14
)
 
(520
)
Other
—

 
1

 
1

 
—

 
(6
)
 
—

 
3

 
(1
)
 
5

 
3

As at September 30, 2019
$
878

 
$
1,864

 
$
2,211

 
$
66

 
$
559

 
$
131

 
$
2,004

 
$
10

 
$
118

 
$
7,841

Interests held by third parties
75-80%

 
43-60%

 
23-71%

 
71
%
 
50
%
 
25
%
 
53
%
 
0.5
%
 
20-50%

 
 

Brookfield Renewable Partners L.P.
Q3 2019 Interim Consolidated Financial Statements and Notes

September 30, 2019
 
Page 28


General partnership interest in a holding subsidiary held by Brookfield and Participating non-controlling interests – in a holding subsidiary - Redeemable/Exchangeable units held by Brookfield
Brookfield, as the owner of the 1% general partnership interest in BRELP held by Brookfield (“GP interest”), is entitled to regular distributions plus an incentive distribution based on the amount by which quarterly distributions exceed specified target levels. To the extent that LP Unit distributions exceed $0.375 per LP Unit per quarter, the incentive is 15% of distributions above this threshold. To the extent that quarterly LP Unit distributions exceed $0.4225 per LP Unit, the incentive distribution is equal to 25% of distributions above this threshold.
As at September 30, 2019, general partnership units, and Redeemable/Exchangeable partnership units outstanding were 2,651,506 (December 31, 2018: 2,651,506) and 129,658,623 (December 31, 2018: 129,658,623), respectively.
Distributions
The composition of the distributions for the three and nine months ended September 30 is presented in the following table:
 
Three months ended September 30
 
Nine months ended September 30
(MILLIONS)
2019

 
2018

 
2019

 
2018

General partnership interest in a holding subsidiary held by Brookfield
$
1

 
$
1

 
$
4

 
$
4

Incentive distribution
12

 
10

 
37

 
30

 
13

 
11

 
41

 
34

Participating non-controlling interests - in a holding subsidiary - Redeemable/Exchangeable units held by Brookfield
66

 
64

 
201

 
192

 
$
79

 
$
75

 
$
242

 
$
226

Preferred equity
Brookfield Renewable`s preferred equity consists of Class A Preference Shares of Brookfield Renewable Power Preferred Equity Inc. ("BRP Equity") as follows:
 
Shares
outstanding

 
Cumulative
distribution
rate (%)
 
Earliest
permitted
redemption
date
 
Distributions declared for the nine months ended September 30
 
Carrying value as at
(MILLIONS EXCEPT AS NOTED)
 
 
2019

 
2018

 
September 30, 2019

 
December 31, 2018

Series 1 (C$136)
5.45

 
3.36
 
Apr 2020
 
$
2

 
$
3

 
$
104

 
$
100

Series 2 (C$113)(1)
4.51

 
4.27
 
Apr 2020
 
3

 
3

 
86

 
83

Series 3 (C$249)
9.96

 
4.40
 
Jul 2019
 
6

 
6

 
190

 
182

Series 5 (C$103)
4.11

 
5.00
 
Apr 2018
 
3

 
3

 
78

 
75

Series 6 (C$175)
7.00

 
5.00
 
Jul 2018
 
5

 
5

 
133

 
128

 
31.04

 
 
 
 
 
$
19

 
$
20

 
$
591

 
$
568

(1) 
Dividend rate represents annualized distribution based on the most recent quarterly floating rate.
The Class A Preference Shares do not have a fixed maturity date and are not redeemable at the option of the holders. As at September 30, 2019, none of the issued Class A Preference Shares have been redeemed by BRP Equity.
Class A Preference Shares – Normal Course Issuer Bid
In July 2019, the TSX accepted notice of BRP Equity’s intention to renew the normal course issuer bid in connection with its outstanding Class A Preference Shares for another year to July 8, 2020, or earlier should the repurchases be completed prior to such date. Under this normal course issuer bid, it is permitted to repurchase up to 10% of the total public float for each respective series of the Class A Preference Shares. Unitholders may receive a copy of the notice, free of charge, by contacting Brookfield Renewable. No shares were repurchased during the nine months ended September 30, 2019.

Brookfield Renewable Partners L.P.
Q3 2019 Interim Consolidated Financial Statements and Notes

September 30, 2019
 
Page 29


11. PREFERRED LIMITED PARTNERS' EQUITY
Brookfield Renewable’s preferred limited partners’ equity comprises of Class A Preferred LP Units as follows:
(MILLIONS, EXCEPT AS NOTED)
 
Shares outstanding

 
Cumulative distribution rate (%)
 
Earliest permitted redemption date
 
Distributions declared for the nine months ended September 30
 
Carrying value as at
 
 
2019

 
2018

 
September 30, 2019

 
December 31, 2018

Series 5 (C$72)
 
2.89

 
5.59
 
Apr 2018
 
$
2

 
$
3

 
$
49

 
$
49

Series 7 (C$175)
 
7.00

 
5.50
 
Jan 2021
 
6

 
6

 
128

 
128

Series 9 (C$200)
 
8.00

 
5.75
 
Jul 2021
 
7

 
6

 
147

 
147

Series 11 (C$250)
 
10.00

 
5.00
 
Apr 2022
 
7

 
7

 
187

 
187

Series 13 (C$250)
 
10.00

 
5.00
 
Apr 2023
 
7

 
7

 
196

 
196

Series 15 (C$175)
 
7.00

 
5.75
 
Apr 2024
 
4

 
—

 
126

 
—

 
 
44.89

 
 
 
 
 
$
33

 
$
29

 
$
833

 
$
707

On March 11, 2019, Brookfield Renewable issued 7,000,000 Class A Preferred Limited Partnership Units, Series 15 (the “Series 15 Preferred Units”) at a price of C$25 per unit for gross proceeds of C$175 million ($131 million). Brookfield Renewable incurred C$6 million ($5 million) in related transaction costs inclusive of fees paid to underwriters. The holders of the Series 15 Preferred Units are entitled to receive a cumulative quarterly fixed distribution yielding 5.75% for the initial period ending April 30, 2024. Thereafter, the distribution rate will be reset every five years at a rate equal to the greater of: (i) the 5-year Government of Canada bond yield plus 3.94%, and (ii) 5.75%.
The holders of the Series 15 Preferred Units will have the right, at their option, to convert their Series 15 Preferred Units into Class A Preferred Limited Partnership Units, Series 16 (the “Series 16 Preferred Units”), subject to certain conditions, on April 30, 2024 and on April 30 every five years thereafter. The holders of Series 16 Preferred Units will be entitled to receive floating rate cumulative preferential cash distributions equal to the sum of the three month Government of Canada Treasury Bill rate plus 3.94%.
As at September 30, 2019, none of the Class A, Series 5 Preferred Limited Partnership Units have been redeemed.
In July 2019, Brookfield Renewable announced that the Toronto Stock Exchange had accepted a notice of its intention to commence a normal course issuer bid in connection with the outstanding Class A Preferred Limited Partnership Units. Under this normal course issuer bid, Brookfield Renewable is permitted to repurchase up to 10% of the total public float for each respective series of its Class A Preference Units. Repurchases were authorized to commence on July 9, 2019 and will terminate on July 8, 2020, or earlier should Brookfield Renewable complete its repurchases prior to such date.
12. LIMITED PARTNERS' EQUITY
Limited partners’ equity
As at September 30, 2019, 178,945,449 LP Units were outstanding (December 31, 2018: 178,821,204 LP Units) including 56,068,944 LP Units (December 31, 2018: 56,068,944 LP Units) held by Brookfield. Brookfield owns all general partnership interests in Brookfield Renewable representing a 0.01% interest.
During the three and nine months ended September 30, 2019, 38,997 LP Units and 144,245 LP Units, respectively (2018: 63,653 LP Units and 221,342 LP Units) were issued under the distribution reinvestment plan at a total cost of $2 million and $5 million (2018: $2 million and $7 million).
As at September 30, 2019, Brookfield Asset Management’s direct and indirect interest of 185,727,567 LP Units and Redeemable/Exchangeable partnership units represents approximately 60% of Brookfield Renewable on a fully-exchanged basis and the remaining approximate 40% is held by public investors.
On an unexchanged basis, Brookfield holds a 31% direct limited partnership interest in Brookfield Renewable, a 42% direct interest in BRELP through the ownership of Redeemable/Exchangeable partnership units and a direct 1% GP interest in BRELP as at September 30, 2019.
In December 2018, Brookfield Renewable renewed its normal course issuer bid in connection with its LP Units. Under this normal course issuer bid Brookfield Renewable is permitted to repurchase up to 8.9 million LP Units, representing approximately 5% of the issued and outstanding LP Units, for capital management purposes. The bid will expire on December 30, 2019, or earlier should Brookfield Renewable complete its repurchases prior to such date. There were no LP units

Brookfield Renewable Partners L.P.
Q3 2019 Interim Consolidated Financial Statements and Notes

September 30, 2019
 
Page 30


repurchased during the three months ended September 30, 2019 and September 30, 2018. During the nine months ended September 30, 2019, Brookfield Renewable repurchased and cancelled 20,000 LP Units (2018: 281,359 LP Units) at a total cost of $1 million (2018: $8 million).
Distributions
The composition of the limited partners' equity distributions is presented in the following table:
 
Three months ended September 30
 
Nine months ended September 30
(MILLIONS)
2019

 
2018

 
2019

 
2018

Brookfield
$
29

 
$
27

 
$
87

 
$
82

External LP Unitholders
63

 
61

 
190

 
184

 
$
92

 
$
88

 
$
277

 
$
266

In February 2019, Unitholder distributions were increased to $2.06 per LP Unit on an annualized basis, an increase of $0.10 per LP Unit, which took effect with the distribution payable in March 2019.
13. EQUITY-ACCOUNTED INVESTMENTS
The following are Brookfield Renewable’s equity-accounted investments for the nine months ended September 30, 2019.
(MILLIONS)
 
Opening balance
$
1,569

Acquisition
4

Share of net income
33

Share of other comprehensive income
(15
)
Dividends received
(44
)
Foreign exchange translation and other
(11
)
Ending balance
$
1,536

The following table summarizes gross revenues and net income of equity-accounted investments in aggregate:
 
Three months ended September 30
 
Nine months ended September 30
(MILLIONS) 
2019

 
2018

 
2019

 
2018

Revenue
$
345

 
$
334

 
$
1,060

 
$
812

Net income
2

 
24

 
103

 
12

Share of net income(1)
1

 
6

 
33

 
12

(1) 
Brookfield Renewable's ownership interest in these entities ranges from 14% to 50%.
The following table summarizes gross assets and liabilities of equity-accounted investments in aggregate at 100% to Brookfield Renewable:
(MILLIONS) 
September 30, 2019

 
December 31, 2018

Current assets
$
713

 
$
682

Property, plant and equipment
12,508

 
11,999

Other assets
604

 
608

Current liabilities
1,530

 
1,080

Non-recourse borrowings
6,098

 
6,078

Other liabilities
1,442

 
1,197


Brookfield Renewable Partners L.P.
Q3 2019 Interim Consolidated Financial Statements and Notes

September 30, 2019
 
Page 31


14. CASH AND CASH EQUIVALENTS
Brookfield Renewable’s cash and cash equivalents are as follows:
(MILLIONS)
September 30, 2019

 
December 31, 2018

Cash
$
188

 
$
127

Short-term deposits
21

 
46

 
$
209

 
$
173

15. RESTRICTED CASH
Brookfield Renewable’s restricted cash is as follows:  
(MILLIONS)
September 30, 2019

 
December 31, 2018

Operations
$
94

 
$
119

Credit obligations
111

 
60

Development projects
4

 
2

Total
209

 
181

Less: non-current
(43
)
 
(45
)
Current
$
166

 
$
136

16. TRADE RECEIVABLES AND OTHER CURRENT ASSETS
Brookfield Renewable's trade receivables and other current assets are as follows:
(MILLIONS)
September 30, 2019

 
December 31, 2018

Trade receivables
$
359

 
$
339

Prepaids and others
103

 
114

Other short-term receivables
125

 
109

Current portion of contract asset
48

 
45

 
$
635

 
$
607

Brookfield Renewable receives payment monthly for invoiced PPA revenues and has no significant aged receivables as of the reporting date. Receivables from contracts with customers are reflected in Trade receivables.
17.  ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Brookfield Renewable's accounts payable and accrued liabilities are as follows:
(MILLIONS)
September 30, 2019

 
December 31, 2018

Operating accrued liabilities
$
234

 
$
263

Accounts payable
89

 
76

Interest payable on corporate and subsidiary borrowings
92

 
76

Deferred consideration
183

 
30

LP Unitholders distributions, preferred limited partnership unit distributions and preferred dividends payable(1)
33

 
30

Other
44

 
58

 
$
675

 
$
533

(1) 
Includes amounts payable only to external LP Unitholders. Amounts payable to Brookfield are included in due to related parties.

Brookfield Renewable Partners L.P.
Q3 2019 Interim Consolidated Financial Statements and Notes

September 30, 2019
 
Page 32


18. COMMITMENTS, CONTINGENCIES AND GUARANTEES
Commitments
In the course of its operations, Brookfield Renewable and its subsidiaries have entered into agreements for the use of water, land and dams. Payment under those agreements varies with the amount of power generated. The various agreements can be renewed and are extendable up to 2091.
Together with institutional partners, Brookfield Renewable is committed to invest C$400 million in TransAlta's convertible securities in October 2020. We also agreed, subject to certain terms and conditions, to increase our ownership of TransAlta common shares to 9% up to a price ceiling.
During the quarter, Brookfield Renewable, alongside institutional partners, entered into a commitment to invest approximately $550 million to acquire a 50% interest in X-Elio, a global independent solar platform. The transaction is expected to close in the fourth quarter of 2019, subject to closing conditions, with Brookfield Renewable expected to hold a 25% interest.
Contingencies
Brookfield Renewable and its subsidiaries are subject to various legal proceedings, arbitrations and actions arising in the normal course of business. While the final outcome of such legal proceedings and actions cannot be predicted with certainty, it is the opinion of management that the resolution of such proceedings and actions will not have a material impact on Brookfield Renewable’s consolidated financial position or results of operations.
Brookfield Renewable, along with institutional investors, has provided letters of credit, which include, but are not limited to, guarantees for debt service reserves, capital reserves, construction completion and performance as it relates to interests in the Brookfield Americas Infrastructure Fund, the Brookfield Infrastructure Fund II, the Brookfield Infrastructure Fund III, and the Brookfield Infrastructure Fund IV. Brookfield Renewable’s subsidiaries have similarly provided letters of credit, which include, but are not limited to, guarantees for debt service reserves, capital reserves, construction completion and performance.
Letters of credit issued by Brookfield Renewable along with institutional investors and its subsidiaries were as at the following dates:  
(MILLIONS)
September 30, 2019

 
December 31, 2018

Brookfield Renewable along with institutional investors
$
52

 
$
51

Brookfield Renewable's subsidiaries
332

 
338

 
$
384

 
$
389

Guarantees
In the normal course of operations, Brookfield Renewable and its subsidiaries execute agreements that provide for indemnification and guarantees to third parties of transactions such as business dispositions, capital project purchases, business acquisitions, and sales and purchases of assets and services. Brookfield Renewable has also agreed to indemnify its directors and certain of its officers and employees. The nature of substantially all of the indemnification undertakings prevents Brookfield Renewable from making a reasonable estimate of the maximum potential amount that Brookfield Renewable could be required to pay third parties as the agreements do not always specify a maximum amount and the amounts are dependent upon the outcome of future contingent events, the nature and likelihood of which cannot be determined at this time. Historically, neither Brookfield Renewable nor its subsidiaries have made material payments under such indemnification agreements.

Brookfield Renewable Partners L.P.
Q3 2019 Interim Consolidated Financial Statements and Notes

September 30, 2019
 
Page 33


19. RELATED PARTY TRANSACTIONS
Brookfield Renewable`s related party transactions are recorded at the exchange amount. Brookfield Renewable`s related party transactions are primarily with Brookfield Asset Management.
Brookfield Renewable and Brookfield completed a transaction to internalize all energy marketing capabilities in North America into Brookfield Renewable. Refer to Note 27 - Related Party Transactions in our 2018 annual audited consolidated financial statements for additional details of the energy marketing internalization.
Brookfield Asset Management has provided a $400 million committed unsecured revolving credit facility maturing in December 2019 and the interest rate applicable on the draws is LIBOR plus up to 2%. As at September 30, 2019, there were no draws on the committed unsecured revolving credit facility provided by Brookfield Asset Management. During the year, Brookfield Asset Management also placed up to $600 million on deposit with Brookfield Renewable. The funds on deposit have since been paid back in full prior to September 30, 2019 including any interest that had been accrued. The interest expense on the deposit for the three and nine months ended September 30, 2019 totaled $2 million and $5 million, respectively (2018: $2 million and $7 million).
The following table reflects the related party agreements and transactions in the interim consolidated statements of income:
 
Three months ended September 30
 
Nine months ended September 30
(MILLIONS)
2019

 
2018

 
2019

 
2018

Revenues
 
 
 
 
 
 
 
Power purchase and revenue agreements
$
101

 
$
101

 
$
469

 
$
375

Wind levelization agreement
—

 
2

 
1

 
6

 
$
101

 
$
103

 
$
470

 
$
381

Direct operating costs
 
 
 
 
 
 
 
Energy purchases
$
(3
)
 
$
(3
)
 
$
(8
)
 
$
(8
)
Energy marketing fee
(6
)
 
(6
)
 
(18
)
 
(18
)
Insurance services(1)
(6
)
 
(6
)
 
(20
)
 
(19
)
 
$
(15
)
 
$
(15
)
 
$
(46
)
 
$
(45
)
Interest expense - borrowings
$
(2
)
 
$
(2
)
 
$
(5
)
 
$
(7
)
Management service costs
$
(29
)
 
$
(22
)
 
$
(73
)
 
$
(64
)
(1) 
Insurance services are paid to a subsidiary of Brookfield Asset Management that brokers external insurance providers on behalf of Brookfield Renewable. The fees paid to the subsidiary of Brookfield Asset Management for the three and nine months ended September 30, 2019 were less than $1 million (2018: less than $1 million).

Brookfield Renewable Partners L.P.
Q3 2019 Interim Consolidated Financial Statements and Notes

September 30, 2019
 
Page 34


20.  SUBSIDIARY PUBLIC ISSUERS
The following tables provide consolidated summary financial information for Brookfield Renewable, BRP Equity, and Finco:
(MILLIONS)
Brookfield
Renewable(1)

 
BRP
Equity

 
Finco

 
Holding
Entities(1)(2)

 
Other
Subsidiaries(1)(3)

 
Consolidating
adjustments(4)

 
Brookfield
Renewable
consolidated

As at September 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
Current assets
$
32

 
$
400

 
$
2,142

 
$
96

 
$
3,911

 
$
(4,639
)
 
$
1,942

Long-term assets
4,957

 
246

 
—

 
23,427

 
31,788

 
(28,925
)
 
31,493

Current liabilities
41

 
7

 
24

 
4,335

 
1,829

 
(4,638
)
 
1,598

Long-term liabilities
—

 
—

 
2,107

 
113

 
13,881

 
(662
)
 
15,439

Participating non-controlling interests - in operating subsidiaries
—

 
—

 
—

 
—

 
7,841

 
—

 
7,841

Participating non-controlling interests -in a holding subsidiary - Redeemable/Exchangeable units held by Brookfield
—

 
—

 
—

 
2,974

 
—

 
—

 
2,974

Preferred equity
—

 
585

 
—

 
—

 
—

 
—

 
585

Preferred limited partners' equity
833

 
—

 
—

 
844

 
—

 
(844
)
 
833

As at December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
Current assets
$
32

 
$
389

 
$
1,631

 
$
93

 
$
3,639

 
$
(3,823
)
 
$
1,961

Long-term assets
5,208

 
239

 
1

 
24,078

 
32,433

 
(29,817
)
 
32,142

Current liabilities
38

 
6

 
21

 
3,096

 
2,351

 
(3,823
)
 
1,689

Long-term liabilities
—

 
—

 
1,607

 
798

 
13,445

 
(642
)
 
15,208

Participating non-controlling interests - in operating subsidiaries
—

 
—

 
—

 
—

 
8,129

 
—

 
8,129

Participating non-controlling interests -in a holding subsidiary - Redeemable/Exchangeable units held by Brookfield
—

 
—

 
—

 
3,252

 
—

 
—

 
3,252

Preferred equity
—

 
568

 
—

 
—

 
—

 
—

 
568

Preferred limited partners' equity
707

 
—

 
—

 
718

 
—

 
(718
)
 
707

(1) 
Includes investments in subsidiaries under the equity method.
(2) 
Includes BRELP, BRP Bermuda Holdings I Limited, Brookfield BRP Holdings (Canada) Inc. and Brookfield BRP Europe Holdings Limited, together the "Holding Entities".
(3) 
Includes subsidiaries of Brookfield Renewable, other than BRP Equity, Finco and the Holding Entities.
(4) 
Includes elimination of intercompany transactions and balances necessary to present Brookfield Renewable on a consolidated basis.

Brookfield Renewable Partners L.P.
Q3 2019 Interim Consolidated Financial Statements and Notes

September 30, 2019
 
Page 35


(MILLIONS)
Brookfield
Renewable(1)

 
BRP
Equity

 
Finco

 
Holding
Entities(1)(2)

 
Other
Subsidiaries(1)(3)

 
Consolidating
adjustments(4)

 
Brookfield
Renewable
consolidated

Three months ended September 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
$
—

 
$
—

 
$
—

 
$
—

 
$
643

 
$
(1
)
 
$
642

Net income (loss)
(19
)
 
—

 
3

 
(158
)
 
211

 
(36
)
 
1

Three months ended September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
$
—

 
$
—

 
$
—

 
$
1

 
$
673

 
$
—

 
$
674

Net income (loss)
(22
)
 
—

 
—

 
(182
)
 
205

 
16

 
17

Nine months ended September 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
$
—

 
$
—

 
$
—

 
$
—

 
$
2,255

 
$
(1
)
 
$
2,254

Net income (loss)
37

 
—

 
5

 
(103
)
 
957

 
(633
)
 
263

Nine months ended September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
$
—

 
$
—

 
$
—

 
$
2

 
$
2,200

 
$
—

 
$
2,202

Net income (loss)
1

 
7

 
—

 
(172
)
 
644

 
(338
)
 
142

(1) 
Includes investments in subsidiaries under the equity method.
(2) 
Includes the Holding Entities.
(3) 
Includes subsidiaries of Brookfield Renewable, other than BRP Equity, Finco, and the Holding Entities.
(4) 
Includes elimination of intercompany transactions and balances necessary to present Brookfield Renewable on a consolidated basis.
See Note 9 - Borrowings for additional details regarding the medium-term borrowings issued by Finco. See Note 10 - Non-controlling interests for additional details regarding Class A Preference Shares issued by BRP Equity.
21. SUBSEQUENT EVENTS
Subsequent to quarter-end, we announced our intention to create a Canadian corporation (“BEPC”) with publicly-traded shares that we expect will be economically-equivalent to the limited partnership units of Brookfield Renewable. The class A shares of BEPC are expected to be distributed as a special distribution to Brookfield Renewable’s existing unitholders, other than preferred unitholders. The class A shares of BEPC will be structured with the intention of being economically equivalent to the limited partnership units of BEP and will be exchangeable, at the shareholder's option, for one BEP limited partnership unit. Subject to receiving required approvals, the BEPC class A shares will be publicly listed. A registration statement on Form F-1 in connection with this transaction was filed with the SEC on November 8, 2019 and a preliminary prospectus will be filed with the securities regulators in Canada (and available on the SEC's website at www.sec.gov or on SEDAR's website at www.sedar.com). This Interim Report does not constitute an offer to sell or the solicitation of an offer to buy any securities of BEPC or BEP, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

Brookfield Renewable Partners L.P.
Q3 2019 Interim Consolidated Financial Statements and Notes

September 30, 2019
 
Page 36


GENERAL INFORMATION 
 
 
Corporate Office
73 Front Street
Fifth Floor
Hamilton, HM12
Bermuda
Tel:  (441) 294-3304
Fax: (441) 516-1988
https://bep.brookfield.com
Officers of Brookfield Renewable Partners L.P.`s Service Provider,
BRP Energy Group L.P.
Sachin Shah
Chief Executive Officer
Wyatt Hartley
Chief Financial Officer
Transfer Agent & Registrar
Computershare Trust Company of Canada
100 University Avenue
9th floor
Toronto, Ontario, M5J 2Y1
Tel  Toll Free: (800) 564-6253
Fax Toll Free: (888) 453-0330
www.computershare.com
 
Directors of the General Partner of
Brookfield Renewable Partners L.P.
Jeffrey Blidner
Eleazar de Carvalho Filho
Nancy Dorn
David Mann
Lou Maroun
Patricia Zuccotti
Stephen Westwell
Exchange Listing
NYSE: BEP (LP Units)
TSX:    BEP.UN (LP Units)
TSX:    BEP.PR.E (Preferred LP Units - Series 5)
TSX:    BEP.PR.G (Preferred LP Units - Series 7)
TSX:    BEP.PR.I (Preferred LP Units - Series 9)
TSX:    BEP.PR.K (Preferred LP Units - Series 11)
TSX:    BEP.PR.M (Preferred LP Units - Series 13)
TSX: BRF.PR.O (Preferred LP Units - Series 15)
TSX:    BRF.PR.A (Preferred shares - Series 1)
TSX:    BRF.PR.B (Preferred shares - Series 2)
TSX:    BRF.PR.C (Preferred shares - Series 3)
TSX:    BRF.PR.E (Preferred shares - Series 5)
TSX:    BRF.PR.F (Preferred shares - Series 6)
Investor Information
Visit Brookfield Renewable online at
https://bep.brookfield.com for more information. The 2018 Annual Report and Form 20-F are also available online. For detailed and up-to-date news and information, please visit the News Release section.
Additional financial information is filed electronically with various securities regulators in United States and Canada through EDGAR at www.sec.gov and through SEDAR at www.sedar.com.
Shareholder enquiries should be directed to the Investor Relations Department at (416) 369-2616 or
enquiries@brookfieldrenewable.com  




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