ACQUISITIONS OF CONSOLIDATED ENTITIES

12 Months Ended

Dec. 31, 2023

Disclosure of detailed information about business combination [abstract]

a) Completed During 2023

The following table summarizes the balance sheet impact as a result of business combinations that occurred in the year ended December 31, 2023. The valuations of the assets acquired are still under evaluation and as such the business combinations have been accounted for on a provisional basis:


AS AT DEC. 31, 2023 (MILLIONS)	Renewable Power and Transition		Infrastructure		Private Equity and Other		Total
Cash and cash equivalents	$	228	$	921	$	22	$	1,171
Accounts receivable and other	585		1,475		10		2,070
Other financial assets	47		1,519		1		1,567

Assets classified as held for sale	293		—		—		293

Investment properties	—		3,244		—		3,244
Property, plant and equipment	7,200		8,964		240		16,404
Intangible assets	8		4,020		83		4,111
Goodwill	1,674		5,334		203		7,211
Deferred income tax assets	97		—		—		97
Total assets	10,132		25,477		559		36,168
Less:
Accounts payable and other	(1,944)		(1,500)		(46)		(3,490)
Liabilities associated with assets classified as held for sale	(138)		—		—		(138)
Non-recourse borrowings	(2,868)		(9,084)		—		(11,952)
Deferred income tax liabilities	(333)		(1,558)		(47)		(1,938)
Non-controlling interests1	(414)		—		(1)		(415)
Preferred equity	—		(641)		—		(641)
	(5,697)		(12,783)		(94)		(18,574)
Net assets acquired2	$	4,435	$	12,694	$	465	$	17,594

1.Includes non-controlling interests recognized on business combinations measured as the proportionate share of fair value of the identifiable assets and liabilities on the date of acquisition.

2.Net assets acquired is typically equal to total consideration. Total consideration includes amounts paid by non-controlling interests that participated in the acquisition as investors in Brookfield-sponsored private funds or as co-investors.

Brookfield recorded $3.1 billion of revenue and $464 million of net income in 2023 from the acquired operations as a result of the acquisitions made during the year. If the acquisitions had occurred at the beginning of the year, they would have contributed $5.1 billion and $644 million to total revenues and net income, respectively.

The following table summarizes the balance sheet impact as a result of material business combinations that occurred in 2023. The valuations of the assets acquired are still under evaluation and as such the business combinations have been accounted for on a provisional basis.


	Infrastructure						Renewable Power and Transition
AS AT DEC. 31, 2023 (MILLIONS)	HomeServe		Triton		Data4		X-Elio		Deriva		Banks
Cash and cash equivalents	$	205	$	491	$	189	$	42	$	88	$	60
Accounts receivable and other	806		376		284		53		328		27
Other financial assets	21		1,495		3		1		38		8
Assets classified as held for sale	—		—		—		293		—		—
Investment properties	—		—		3,244		—		—		—
Property, plant and equipment	118		8,811		35		1,160		4,024		995
Intangible assets	2,827		710		6		—		—		—
Goodwill	3,337		1,163		808		1,333		—		159
Deferred income tax assets	—		—		—		75		—		—
Total assets	7,314		13,046		4,569		2,957		4,478		1,249
Less:
Accounts payable and other	(792)		(406)		(260)		(126)		(1,561)		(142)
Liabilities associated with assets classified as held for sale	—		—		—		(138)		—		—
Non-recourse borrowings	(1,006)		(7,041)		(845)		(795)		(1,092)		(297)
Deferred income tax liabilities	(613)		(446)		(416)		(105)		(29)		(151)
Non-controlling interests1	—		—		—		—		(343)		(34)
Preferred equity	—		(641)		—		—		—		—
	(2,411)		(8,534)		(1,521)		(1,164)		(3,025)		(624)
Net assets acquired2	$	4,903	$	4,512	$	3,048	$	1,793	$	1,453	$	625

1.Includes non-controlling interests recognized on business combinations measured as the proportionate share of fair value of the identifiable assets and liabilities on the date of acquisition.

Infrastructure

On January 4, 2023, a subsidiary of the company, alongside institutional partners, completed the acquisition of HomeServe PLC (“HomeServe”), a residential infrastructure business operating in North America and Europe. The subsidiary has an effective 26% and 25% interest in HomeServe’s North American and European businesses, respectively. The total consideration paid for the business was $4.9 billion. Goodwill of $3.3 billion was recognized, which is not deductible for tax purposes. Total revenues and net loss that would have been recorded if the transaction had occurred at the beginning of the year are $2.3 billion and $36 million, respectively.

On August 1, 2023, a subsidiary of the company, alongside institutional partners, completed the acquisition of Data4 Group (“Data4”), a high-quality European hyperscale data center platform. The subsidiary has an effective 19% interest in Data4. The total consideration paid for the business was $3.0 billion. Goodwill of $808 million was recognized, which is not deductible for income tax purposes. Total revenues and net loss that would have been recorded if the transaction had occurred at the beginning of the year are $364 million and $47 million, respectively.

On September 28, 2023, a subsidiary of the company, alongside institutional partners completed the acquisition of Triton International Limited (“Triton”), the world’s largest owner and lessor of intermodal shipping containers. The subsidiary has an effective 28% interest in Triton. The total consideration for the business was $4.5 billion. Goodwill of $1.2 billion was recognized, which is not deductible for tax purposes. Total revenues and net income that would have been recorded if the transaction had occurred at the beginning of the year are $1.6 billion and $407 million, respectively.

Renewable Power and Transition

On October 10, 2023, a subsidiary of the company, alongside institutional partners, completed the acquisition of a 100% interest in X-Elio Energy S.L. (“X-Elio”), a global solar development platform headquartered in Spain. The transaction was acquired in stages and was accounted for as a business combination as of the date on which control was attained. The total consideration paid for the business was $1.8 billion, comprising of $893 million of debt and an existing 50% interest valued at $900 million. Goodwill of $1.3 billion was recognized, which is not deductible for income tax purposes. Total revenues and net loss that would have been recorded if the transaction had occurred at the beginning of the year are $58 million and $77 million, respectively.

On October 25, 2023, a subsidiary of the company, alongside institutional partners, acquired a 100% interest in Deriva Energy (“Deriva”), a U.S. renewable portfolio. The total consideration paid for the business was $1.1 billion. Total revenues and net income that would have been recorded if the transaction had occurred at the beginning of the year are $401 million and $263 million, respectively.

On December 14, 2023, a subsidiary of the company, alongside institutional partners, acquired a 100% interest in Banks Renewables (“Banks”), a U.K. renewable developer. The total consideration paid for the business was $625 million. Goodwill of $159 million was recognized, which is not deductible for income tax purposes. Total revenues and net income that would have been recorded if the transaction had occurred at the beginning of the year are $100 million and $35 million, respectively.

b) Completed During 2022

The following table summarizes the balance sheet impact as a result of business combinations that occurred in 2022. No material changes were made to those allocations disclosed in the 2022 consolidated financial statements.


AS AT DEC. 31, 2022 (MILLIONS)	Private Equity		Real Estate (LP Investments)3		Renewable Power and Transition		Infrastructure and Other		Total
Cash and cash equivalents	$	953	$	605	$	85	$	7	$	1,650
Accounts receivable and other	1,446		302		379		10		2,137
Other financial assets	4,558		188		12		11		4,769
Inventory	485		5		31		2		523
Equity accounted investments	461		222				—		683
Investment properties	—		9,805		—		—		9,805
Property, plant and equipment	1,502		3,224		3,087		160		7,973
Intangible assets	11,594		82				302		11,978
Goodwill	8,155		456		691		279		9,581
Deferred income tax assets	62		—		10		1		73
Total assets	29,216		14,889		4,295		772		49,172
Less:
Accounts payable and other	(2,300)		(795)		(1,201)		(55)		(4,351)
Non-recourse borrowings	(4,924)		(3,707)		(424)		(52)		(9,107)
Deferred income tax liabilities	(1,911)		(878)		(50)		(18)		(2,857)
Non-controlling interests1	(96)		(1,788)		(32)		(64)		(1,980)

	(9,231)		(7,168)		(1,707)		(189)		(18,295)
Net assets acquired2	$	19,985	$	7,721	$	2,588	$	583	$	30,877

1.Includes non-controlling interests recognized on business combinations measured as the proportionate share of fair value of the identifiable assets and liabilities on the date of acquisition.

3.Real estate LP investments are included within our Asset Management segment as we include the discretionary capital that we invest directly into and alongside private funds managed by BAM and other investments within this segment.

Brookfield recorded $4.0 billion of revenue and $528 million of net loss in 2022 from the acquired operations as a result of the acquisitions made during the year. If the acquisitions had occurred at the beginning of the year, they would have contributed $8.1 billion and $344 million to total revenues and net loss, respectively.

The following table summarizes the balance sheet impact as a result of material business combinations that occurred in 2022. No material changes were made to those allocations disclosed in the 2022 consolidated financial statements.