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PROPERTY, PLANT AND EQUIPMENT
 12 Months Ended
Dec. 31, 2021
Property, plant and equipment [abstract]  
PROPERTY, PLANT AND EQUIPMENT PROPERTY, PLANT AND EQUIPMENT
The company’s property, plant and equipment relates to the operating segments as shown below:
Renewable
Power and Transition (a) 		Infrastructure (b) Real Estate (c)
Private Equity
and Other (d)
Total
AS AT DEC. 31 (MILLIONS)2021202020212020202120202021202020212020
Costs$30,588 $28,838 $39,769 $31,212 $11,396 $9,251 $21,255 $18,770 $103,008 $88,071 
Accumulated fair value changes28,138 24,238 3,077 4,626 881 393 (1,022)(873)31,074 28,384 
Accumulated depreciation(8,409)(7,870)(4,191)(3,671)(1,413)(1,212)(4,580)(3,693)(18,593)(16,446)
Total1
$50,317 $45,206 $38,655 $32,167 $10,864 $8,432 $15,653 $14,204 $115,489 $100,009 
1.As at December 31, 2021, the total includes $5.8 billion (2020 – $3.9 billion) of property, plant and equipment leased to third parties as operating leases. Our ROU PP&E assets include $415 million (2020 – $393 million) in our Renewable Power and Transition segment, $4.0 billion (2020 – $4.1 billion) in our Infrastructure segment, $905 million (2020 – $856 million) in our Real Estate segment, and $1.7 billion (2020 – $1.3 billion) in our Private Equity and other segments, totaling $7.0 billion (2020 – $6.7 billion) of ROU assets.
For the year ended December 31, 2021, we recorded an impairment expense of $240 million (2020 – $284 million) primarily in our Private Equity segment.
Renewable Power and Transition, Infrastructure and Real Estate segments carry property, plant and equipment assets at fair value, classified as Level 3 in the fair value hierarchy due to the use of significant unobservable inputs when determining fair value. Private Equity and other segments carry property, plant and equipment assets at amortized cost. The carrying amount that would have been recognized had our assets been accounted for under the cost model is $72.0 billion (2020 – $59.0 billion). As at December 31, 2021, $66.2 billion (2020 – $80.2 billion) of property, plant and equipment, at cost, were pledged as collateral for the property debt at their respective properties.
a)    Renewable Power and Transition
Our renewable power and transition property, plant and equipment consists of the following:
HydroelectricWindSolar and OtherTotal
AS AT AND FOR THE YEARS ENDED DEC. 31 (MILLIONS)20212020202120202021202020212020
Cost, beginning of year$13,899 $14,074 $8,398 $8,459 $6,541 $5,287 $28,838 $27,820 
Additions, net of disposals and assets reclassified as held for sale734 425 (907)(9)648 284 475 700 
Acquisitions through business combinations— — 1,643 — 723 661 2,366 661 
Foreign currency translation(762)(600)(101)(52)(228)309 (1,091)(343)
Cost, end of year13,871 13,899 9,033 8,398 7,684 6,541 30,588 28,838 
Accumulated fair value changes, beginning of year19,865 16,927 2,908 2,588 1,465 950 24,238 20,465 
Fair value changes4,581 3,221 (44)402 282 530 4,819 4,153 
Dispositions and assets reclassified as held for sale— — (354)— — — (354)— 
Foreign currency translation(473)(283)(49)(82)(43)(15)(565)(380)
Accumulated fair value changes, end of year23,973 19,865 2,461 2,908 1,704 1,465 28,138 24,238 
Accumulated depreciation, beginning of year(4,731)(4,412)(2,293)(1,781)(846)(497)(7,870)(6,690)
Depreciation expenses(556)(517)(599)(546)(355)(302)(1,510)(1,365)
Dispositions and assets reclassified as held for sale22 17 792 25 1 9 815 51 
Foreign currency translation114 181 14 9 28 (56)156 134 
Accumulated depreciation, end of year(5,151)(4,731)(2,086)(2,293)(1,172)(846)(8,409)(7,870)
Balance, end of year$32,693 $29,033 $9,408 $9,013 $8,216 $7,160 $50,317 $45,206 
The following table presents our renewable power and transition property, plant and equipment measured at fair value by geography:
AS AT DEC. 31 (MILLIONS)20212020
North America$32,629 $28,044 
Colombia8,497 8,150 
Europe3,935 4,912 
Brazil3,547 3,005 
Other1
1,709 1,095 
$50,317 $45,206 
1. Other refers primarily to China, India and Chile.
Renewable power and transition assets are accounted for under the revaluation model and the most recent date of revaluation was December 31, 2021. Valuations utilize significant unobservable inputs (Level 3) when determining the fair value of renewable power and transition assets. The significant Level 3 inputs include:
Valuation TechniqueSignificant Unobservable InputsRelationship of Unobservable Inputs to Fair Value Mitigating Factors
Discounted cash flow analysis
•    Future cash flows – primarily impacted by future electricity price assumptions

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

•    Increases (decreases) in cash flows tend to be accompanied by increases (decreases) in discount rates that may offset changes in fair value from cash flows
•    Discount rate
•    Increases (decreases) in discount rate decrease (increase) fair value
•    Increases (decreases) in discount rates tend to be accompanied by increases (decreases) in cash flows that may offset changes in fair value from discount rates

•    Terminal capitalization rate

•    Increases (decreases) in terminal capitalization rate decrease (increase) fair value

•    Increases (decreases) in terminal capitalization rates tend to be accompanied by increases (decreases) in cash flows that may offset changes in fair value from terminal capitalization rates
•    Exit date

•    Increases (decreases) in the exit date decrease (increase) fair value

•    Increases (decreases) in the exit date tend to be the result of changing cash flow profiles that may result in higher (lower) growth in cash flows prior to stabilizing in the terminal year
Key valuation metrics of the company’s hydroelectric, wind and solar generating facilities at the end of 2021 and 2020 are summarized below.
North AmericaBrazilColombiaEurope
AS AT DEC. 3120212020202120202021202020212020
Discount rate
Contracted
4.1 – 4.3%
4.1 – 4.5%
7.2 %7.3 %7.9 %8.1 %3.9 %
3.0 – 3.6%
Uncontracted
5.4 – 5.6%
5.6 – 6.0%
8.5 %8.6 %9.2 %9.4 %3.9 %
3.6 – 4.7%
Terminal capitalization rate1
4.8 – 5.1%
5.8 – 6.2%
n/an/a8.0 %8.9 %n/an/a
Exit date20422041204820482041204020362035
1.    Terminal capitalization rate applies only to hydroelectric assets in North America and Colombia.
Terminal values are included in the valuation of hydroelectric assets in the U.S., Canada and Colombia. For the hydroelectric assets in Brazil, cash flows have been included based on the duration of the authorization or useful life of a concession asset  without consideration of potential renewal value. The weighted-average remaining duration as at December 31, 2021, which includes a one-time 30-year renewal for applicable hydroelectric assets completed in the current year, is 31 years (2020 – 32 years). Consequently, there is no terminal value attributed to the hydroelectric assets in Brazil.
Key assumptions on contracted generation and future power pricing are summarized below:
AS AT DEC. 31, 2021 Total Generation Contracted under Power Purchase Agreements
Power Prices from Long-Term Power Purchase Agreements
(weighted average)
Estimates of Future Electricity Prices
(weighted average)
1 – 10 years11 – 20 years1 – 10 years11 – 20 years1 – 10 years11 – 20 years
North America (prices in US$/MWh)
48 %17 %82 71 77 114 
Brazil (prices in R$/MWh)83 %61 %306 358 282 345 
Colombia (prices in COP$/MWh)30 %1 %251,000 313,000 290,000 439,000 
Europe (prices in €/MWh)94 %66 %44 39 34 39 
The company’s estimate of future renewable power pricing is based on management’s estimate of the cost of securing new energy from renewable sources to meet future demand between 2025 and 2035 (2020 – between 2023 and 2035), which will maintain system reliability and provide adequate levels of reserve generation.
b)    Infrastructure
Our infrastructure property, plant and equipment consists of the following:
UtilitiesTransportMidstreamDataSustainable Resources and OtherTotal
AS AT AND FOR THE YEARS ENDED DEC. 31 (MILLIONS)202120202021202020212020202120202021202020212020
Cost, beginning of year$9,306 $8,654 $8,698 $8,309 $4,321 $3,971 $8,593 $1,131 $294 $389 $31,212 $22,454 
Additions, net of disposals and assets reclassified as held for sale(1,788)550 312 146 511 277 (103)51 (294)(16)(1,362)1,008 
Acquisitions through business combinations180 — 134 — 9,865 — — 7,334 — — 10,179 7,334 
Foreign currency translation(116)102 (145)243 165 73 (166)77 2 (79)(260)416 
Cost, end of year7,582 9,306 8,999 8,698 14,862 4,321 8,324 8,593 2 294 39,769 31,212 
Accumulated fair value changes, beginning of year2,917 2,187 1,047 857 338 317 — — 324 416 4,626 3,777 
Disposition and assets reclassified as held for sale(1,399)— — — — — — — (244)— (1,643)— 
Fair value changes134 652 48 113 70 21 — — (80)6 172 792 
Foreign currency translation(26)78 (50)77 — — — — (2)(98)(78)57 
Accumulated fair value changes, end of year1,626 2,917 1,045 1,047 408 338 — — (2)324 3,077 4,626 
Accumulated depreciation, beginning of year(1,613)(1,172)(1,404)(950)(356)(208)(263)(88)(35)(41)(3,671)(2,459)
Depreciation expenses(352)(419)(481)(498)(270)(141)(419)(189)(4)(10)(1,526)(1,257)
Dispositions and assets reclassified as held for sale682 12 161 134 20 — 45 17 38 7 946 170 
Foreign currency translation11 (34)56 (90)(16)(7)8 (3)1 9 60 (125)
Accumulated depreciation, end of year(1,272)(1,613)(1,668)(1,404)(622)(356)(629)(263)— (35)(4,191)(3,671)
Balance, end of year$7,936 $10,610 $8,376 $8,341 $14,648 $4,303 $7,695 $8,330 $— $583 $38,655 $32,167 
Infrastructure’s PP&E assets are accounted for under the revaluation model, and the most recent date of revaluation was December 31, 2021. The utilities assets consist of regulated transmission and regulated distribution networks, which are operated primarily under regulated rate base arrangements. In the transport operations, the PP&E assets consist of railroads, toll roads and ports. PP&E assets in the midstream operations are comprised of energy transmission, distribution and storage. Data PP&E include mainly telecommunications towers, fiber optic networks and data storage assets. PP&E within our sustainable resource operations include standing timber, land and roads.
Valuations utilize significant unobservable inputs (Level 3) when determining the fair value of infrastructure’s utilities, transport, midstream, data and sustainable resources assets. The significant Level 3 inputs include:
Valuation TechniqueSignificant Unobservable InputsRelationship of Unobservable Inputs to Fair Value Mitigating Factors
Discounted cash flow analysis
•Future cash flows
•Increases (decreases) in future cash flows increase (decrease) fair value

•Increases (decreases) in cash flows tend to be accompanied by increases (decreases) in discount rates that may offset changes in fair value from cash flows
•Discount rate
•Increases (decreases) in discount rate decrease (increase) fair value
•Increases (decreases) in discount rates tend to be accompanied by increases (decreases) in cash flows that may offset changes in fair value from discount rates
•Terminal capitalization multiple
•Increases (decreases) in terminal capitalization multiple increases (decreases) fair value
•Increases (decreases) in terminal capitalization multiple tend to be accompanied by increases (decreases) in cash flows that may offset changes in fair value from terminal capitalization multiple
•Investment horizon
•Increases (decreases) in the investment horizon decrease (increase) fair value
•Increases (decreases) in the investment horizon tend to be the result of changing cash flow profiles that may result in higher (lower) growth in cash flows prior to stabilizing in the terminal year
Key valuation metrics of the company’s utilities, transport, midstream and sustainable resources assets at the end of 2021 and 2020 are summarized below.
UtilitiesTransportMidstreamSustainable Resources
AS AT DEC. 3120212020202120202021202020212020
Discount rates
7 – 11%
7 – 14%
7 – 14%
7 – 13%
15 %15 %n/a6 %
Terminal capitalization multiples
20x
7x – 23x
9x – 15x
9x – 14x
10x
10x
n/a
6x
Investment horizon/Exit date (years)
10 – 20
1010 10
5 – 10
5 – 10
n/a10
c)    Real Estate
CostAccumulated Fair Value ChangesAccumulated DepreciationTotal
AS AT AND FOR THE YEARS ENDED DEC. 31 (MILLIONS)20212020202120202021202020212020
Balance, beginning of year$9,251 $9,890 $393 $1,366 $(1,212)$(1,527)$8,432 $9,729 
Changes in basis of accounting(38)(1,895)8 (681)1 786 (29)(1,790)
Additions/(dispositions)1, net of assets reclassified as held for sale
203 1,023 (631)(135)262 27 (166)915 
Acquisitions through business combinations2,172 — — — — — 2,172 — 
Foreign currency translation(192)233 (2)2 35 (41)(159)194 
Fair value changes— — 1,113 (159)— — 1,113 (159)
Depreciation expenses— — — — (499)(457)(499)(457)
Balance, end of year$11,396 $9,251 $881 $393 $(1,413)$(1,212)$10,864 $8,432 
1.    For accumulated depreciation, (additions)/dispositions.
The company’s real estate PP&E assets include hospitality assets accounted for under the revaluation model, with the most recent revaluation as at December 31, 2021. The company determined fair value for these assets by using the depreciated replacement cost method. Valuations utilize significant unobservable inputs (Level 3) when determining the fair value of real estate assets. The significant Level 3 inputs include estimates of assets’ replacement cost and remaining economic life.
d)    Private Equity and Other
Private equity and other PP&E includes assets owned by the company’s private equity and residential development businesses. These assets are accounted for under the cost model, which requires the assets to be carried at cost less accumulated depreciation and any accumulated impairment losses. The following table presents the changes to the carrying value of the company’s PP&E assets included in these businesses:
CostAccumulated ImpairmentAccumulated DepreciationTotal
AS AT AND FOR THE YEARS ENDED DEC. 31 (MILLIONS)20212020202120202021202020212020
Balance, beginning of year$18,770 $17,269 $(873)$(643)$(3,693)$(2,458)$14,204 $14,168 
Changes in basis of accounting
(820)— (3)— 301 — (522)— 
Additions/(dispositions)1, net of assets reclassified as held for sale
1,124 874 97 57 277 290 1,498 1,221 
Acquisitions through business combinations2,518 84 — — — — 2,518 84 
Foreign currency translation
(337)543 (3)(3)36 (61)(304)479 
Depreciation expenses— — — — (1,501)(1,464)(1,501)(1,464)
Impairment charges
— — (240)(284)— — (240)(284)
Balance, end of year$21,255 $18,770 $(1,022)$(873)$(4,580)$(3,693)$15,653 $14,204 
1. For accumulated depreciation, (additions)/dispositions.