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ACQUISITIONS OF CONSOLIDATED ENTITIES | 12 Months Ended
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Dec. 31, 2021
Disclosure of detailed information about business combination [abstract] |
ACQUISITIONS OF CONSOLIDATED ENTITIES | ACQUISITIONS OF CONSOLIDATED ENTITIES a) Completed During 2021 The following table summarizes the balance sheet impact as a result of business combinations that occurred in the year ended December 31, 2021. The valuations of the assets acquired are still under evaluation and as such the business combinations have been accounted for on a provisional basis:
(MILLIONS) | Private Equity |  | Infrastructure |  | Real Estate |  | Renewable Power and Transition and Other |  | Total
Cash and cash equivalents | $ | 288 |  |  | $ | 217 |  |  | $ | 78 |  |  | $ | 3 |  |  | $ | 586 |
Accounts receivable and other | 826 |  |  | 455 |  |  | 104 |  |  | 100 |  |  | 1,485 |
Inventory | 690 |  |  | 23 |  |  | 2 |  |  | 6 |  |  | 721 |
Equity accounted investments | 20 |  |  | — |  |  | 7 |  |  | 45 |  |  | 72 |
Investment properties | — |  |  | — |  |  | 988 |  |  | — |  |  | 988 |
Property, plant and equipment | 2,518 |  |  | 10,179 |  |  | 2,172 |  |  | 2,366 |  |  | 17,235 |
Intangible assets | 4,535 |  |  | 3,734 |  |  | 67 |  |  | — |  |  | 8,336 |
Goodwill | 3,960 |  |  | 2,400 |  |  | 113 |  |  | 118 |  |  | 6,591 |
Deferred income tax assets | 6 |  |  | 9 |  |  | — |  |  | — |  |  | 15 |
Total assets | 12,843 |  |  | 17,017 |  |  | 3,531 |  |  | 2,638 |  |  | 36,029 |
Less: |  |  |  |  |  |  |  |  |
Accounts payable and other | (1,811) |  |  | (3,271) |  |  | (131) |  |  | (188) |  |  | (5,401) |
Non-recourse borrowings | (132) |  |  | (6,698) |  |  | (1,452) |  |  | (975) |  |  | (9,257) |
Deferred income tax liabilities | (1,215) |  |  | (1,430) |  |  | (113) |  |  | — |  |  | (2,758) |
Non-controlling interests 1 | (22) |  |  | (156) |  |  | (3) |  |  | (2) |  |  | (183) |
| (3,180) |  |  | (11,555) |  |  | (1,699) |  |  | (1,165) |  |  | (17,599) |
Net assets acquired | $ | 9,663 |  |  | $ | 5,462 |  |  | $ | 1,832 |  |  | $ | 1,473 |  |  | $ | 18,430 |
Consideration 2 | $ | 9,663 |  |  | $ | 5,462 |  |  | $ | 1,832 |  |  | $ | 1,473 |  |  | $ | 18,430 |
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. Total consideration, including amounts paid by non-controlling interests that participated in the acquisition as investors in Brookfield-sponsored private funds or as co-investors. Brookfield recorded $2.8 billion of revenue and $3 million of net income in 2021 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 $8.6 billion and $351 million to total revenues and net income, respectively. The following table summarizes the balance sheet impact as a result of significant business combinations that occurred in 2021. The valuations of the assets acquired are still under evaluation and as such the business combinations have been accounted for on a provisional basis.
|  |  |  | Private Equity |  | Infrastructure |  | Real Estate |  | Renewable Power and Transition
(MILLIONS) |  |  |  | Modulaire |  | DexKo |  | Aldo |  | IPL |  | Life Sciences Assets |  | U.S. Wind |  | U.S. Distributed Generation
Cash and cash equivalents |  |  |  | $ | 100 |  |  | $ | 106 |  |  | $ | 59 |  |  | $ | 121 |  |  | $ | 6 |  |  | $ | 1 |  |  | $ | 1 |
Accounts receivable and other |  |  |  | 418 |  |  | 278 |  |  | 31 |  |  | 420 |  |  | 1 |  |  | 71 |  |  | 28 |
Inventory |  |  |  | 104 |  |  | 436 |  |  | 48 |  |  | 20 |  |  | — |  |  | 6 |  |  | — |
Equity accounted investments |  |  |  | — |  |  | 19 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Investment properties |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 988 |  |  | — |  |  | — |
Property, plant and equipment |  |  |  | 1,963 |  |  | 462 |  |  | 5 |  |  | 9,865 |  |  | — |  |  | 1,643 |  |  | 723 |
Intangible assets |  |  |  | 1,941 |  |  | 2,212 |  |  | 295 |  |  | 2,569 |  |  | 2 |  |  | — |  |  | — |
Goodwill |  |  |  | 1,667 |  |  | 1,408 |  |  | 421 |  |  | 2,096 |  |  | 36 |  |  | — |  |  | 117 |
Deferred income tax assets |  |  |  | — |  |  | 6 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total assets |  |  |  | 6,193 |  |  | 4,927 |  |  | 859 |  |  | 15,091 |  |  | 1,033 |  |  | 1,721 |  |  | 869 |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable and other |  |  |  | (817) |  |  | (637) |  |  | (136) |  |  | (3,012) |  |  | (7) |  |  | (142) |  |  | (45) |
Non-recourse borrowings |  |  |  | (27) |  |  | (2) |  |  | — |  |  | (6,185) |  |  | — |  |  | (835) |  |  | (140) |
Deferred income tax liabilities |  |  |  | (590) |  |  | (504) |  |  | (100) |  |  | (1,229) |  |  | (36) |  |  | — |  |  | — |
Non-controlling interests 1 |  |  |  | — |  |  | (10) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
|  |  |  | (1,434) |  |  | (1,153) |  |  | (236) |  |  | (10,426) |  |  | (43) |  |  | (977) |  |  | (185) |
Net assets acquired |  |  |  | $ | 4,759 |  |  | $ | 3,774 |  |  | $ | 623 |  |  | $ | 4,665 |  |  | $ | 990 |  |  | $ | 744 |  |  | $ | 684 |
Consideration 2 |  |  |  | $ | 4,759 |  |  | $ | 3,774 |  |  | $ | 623 |  |  | $ | 4,665 |  |  | $ | 990 |  |  | $ | 744 |  |  | $ | 684 |
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. Total consideration, including amounts paid by non-controlling interests that participated in the acquisition as investors in Brookfield-sponsored private funds or as co-investors. Private Equity On August 31, 2021, a subsidiary of the company, alongside institutional partners, acquired a 100% interest in Aldo Componentes Eletrônicos LTDA (“Aldo”), a leading distributor of solar power solutions for the distributed generation market in Brazil. The total consideration paid for the business was $623 million, comprising of $295 million of cash consideration and $328 million of contingent consideration payable to the former shareholder if certain performance targets are met. Goodwill of $421 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 $553 million and $68 million, respectively. On October 4, 2021, a subsidiary of the company, alongside institutional partners, acquired a 100% interest in DexKo Global Inc. (“DexKo”), a leading global manufacturer of highly engineered components primarily for industrial trailers and other towable-equipment providers. The total consideration paid for the business was $3.8 billion, comprising of $1.1 billion of cash, $2.6 billion of debt raised for the acquisition and $30 million of contingent consideration. Goodwill of $1.4 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 $2.5 billion and $139 million, respectively. On December 15, 2021, a subsidiary of the company, alongside institutional partners, acquired a 100% interest in Modulaire Investments 2 S.à.r.l. (“Modulaire”), a provider of modular building leasing services in Europe and Asia-Pacific. The total consideration paid for the business was $4.8 billion, comprising of $1.6 billion of cash and $3.2 billion of debt raised for the acquisition. Goodwill of $1.7 billion 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 $1.7 billion and $135 million, respectively. Infrastructure During 2021, a subsidiary of the company, alongside institutional partners, acquired a 100% interest in Inter Pipeline Ltd. (“IPL”). The transaction was accounted for as a business combination as of the initial acquisition on August 20, 2021. The total consideration paid for the business was $4.7 billion, comprising of $1.9 billion of cash, $0.2 billion of BIPC exchangeable LP units, $1.1 billion of BIPC exchangeable shares, $0.9 billion of debt raised on closing, and an existing 10% interest valued at $0.6 billion on the initial acquisition date. Goodwill of $2.1 billion 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 $2.5 billion and $274 million, respectively. Real Estate On June 16, 2021, a subsidiary of the company, alongside institutional partners, acquired a portfolio of life sciences assets in the U.K., through our BSREP III fund. The total consideration paid for the portfolio was $990 million, comprising of $352 million of cash with the remainder funded through non-recourse borrowings raised concurrently on closing. Total revenues and net income that would have been recorded if the transaction had occurred at the beginning of the year are $34 million and $86 million, respectively. Renewable Power and Transition On March 24, 2021, a subsidiary of the company, alongside institutional partners, completed the acquisition of 100% of a portfolio of three wind generation facilities and development projects located in the U.S. The total consideration paid for the portfolio was $744 million. Total revenues and net income that would have been recorded if the transaction had occurred at the beginning of the year are $183 million and $12 million, respectively. On March 31, 2021, a subsidiary of the company, alongside institutional partners, completed the acquisition of 100% of a distributed generation business in the U.S. The total consideration paid for the business was $684 million. Total revenues and net income that would have been recorded if the transaction had occurred at the beginning of the year are $79 million and $6 million, respectively. b) Completed During 2020 The following table summarizes the balance sheet impact as a result of business combinations that occurred in the year ended December 31, 2020. No material changes were made to those allocations disclosed in the 2020 consolidated financial statements:
(MILLIONS) | Private Equity |  | Infrastructure |  |  |  | Real Estate, Renewable Power and Transition and Other |  | Total
Cash and cash equivalents | $ | 105 |  |  | $ | — |  |  |  |  | $ | 38 |  |  | $ | 143 |
Accounts receivable and other | 1,441 |  |  | 408 |  |  |  |  | 76 |  |  | 1,925 |
Inventory | 12 |  |  | — |  |  |  |  | 55 |  |  | 67 |
Property, plant and equipment | 84 |  |  | 7,334 |  |  |  |  | 661 |  |  | 8,079 |
Intangible assets | 27 |  |  | 532 |  |  |  |  | 66 |  |  | 625 |
Goodwill | 63 |  |  | 27 |  |  |  |  | 55 |  |  | 145 |
Deferred income tax assets | 31 |  |  | — |  |  |  |  | 15 |  |  | 46 |
Total assets | 1,763 |  |  | 8,301 |  |  |  |  | 966 |  |  | 11,030 |
Less: |  |  |  |  |  |  |  |  |
Accounts payable and other | (55) |  |  | (2,518) |  |  |  |  | (227) |  |  | (2,800) |
Non-recourse borrowings | (1,016) |  |  | (2,356) |  |  |  |  | (470) |  |  | (3,842) |
Deferred income tax liabilities | — |  |  | (22) |  |  |  |  | (12) |  |  | (34) |
Non-controlling interests 1 | (227) |  |  | — |  |  |  |  | (47) |  |  | (274) |
| (1,298) |  |  | (4,896) |  |  |  |  | (756) |  |  | (6,950) |
Net assets acquired | $ | 465 |  |  | $ | 3,405 |  |  |  |  | $ | 210 |  |  | $ | 4,080 |
Consideration 2 | $ | 465 |  |  | $ | 3,405 |  |  |  |  | $ | 210 |  |  | $ | 4,080 |
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. Total consideration, including amounts paid by non-controlling interests that participated in the acquisition as investors in Brookfield-sponsored private funds or as co-investors. Brookfield recorded $621 million of revenue and $10 million of net income in 2020 from the acquired operations as a result of the acquisitions made in 2020. If the acquisitions had occurred at the beginning of 2020, they would have contributed $1.6 billion and $25 million to total revenue and net losses, respectively. The following table summarizes the balance sheet impact as a result of significant business combinations that occurred in 2020. No material changes were made to those allocations disclosed in the 2020 consolidated financial statements.
| Private Equity |  |  |  |  |  |  |  | Infrastructure |  |  |  |
(MILLIONS) | IndoStar |  |  |  |  |  |  |  | Summit DigiTel |  |  |  |  |  |
Cash and cash equivalents | $ | 78 |  |  |  |  |  |  |  |  | $ | — |  |  |  |  |  |  |
Accounts receivable and other | 1,391 |  |  |  |  |  |  |  |  | 408 |  |  |  |  |  |  |
Property, plant and equipment | 9 |  |  |  |  |  |  |  |  | 7,334 |  |  |  |  |  |  |
Intangible assets | 20 |  |  |  |  |  |  |  |  | 532 |  |  |  |  |  |  |
Goodwill | 21 |  |  |  |  |  |  |  |  | 27 |  |  |  |  |  |  |
Deferred income tax assets | 28 |  |  |  |  |  |  |  |  | — |  |  |  |  |  |  |
Total assets | 1,547 |  |  |  |  |  |  |  |  | 8,301 |  |  |  |  |  |  |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable and other | (30) |  |  |  |  |  |  |  |  | (2,518) |  |  |  |  |  |  |
Non-recourse borrowings | (1,003) |  |  |  |  |  |  |  |  | (2,356) |  |  |  |  |  |  |
Deferred income tax liabilities | — |  |  |  |  |  |  |  |  | (22) |  |  |  |  |  |  |
Non-controlling interests 1 | (219) |  |  |  |  |  |  |  |  | — |  |  |  |  |  |  |
| (1,252) |  |  |  |  |  |  |  |  | (4,896) |  |  |  |  |  |  |
Net assets acquired | $ | 295 |  |  |  |  |  |  |  |  | $ | 3,405 |  |  |  |  |  |  |
Consideration 2 | $ | 295 |  |  |  |  |  |  |  |  | $ | 3,405 |  |  |  |  |  |  |
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. Total consideration, including amounts paid by non-controlling interests that participated in the acquisition as investors in Brookfield-sponsored private funds or as co-investors. Private Equity During 2020, a subsidiary of the company, together with institutional partners, acquired a 57% ownership interest in IndoStar, an Indian financing company focused on commercial vehicle lending and affordable home finance. The transaction was accounted for as a business combination achieved in stages on May 27, July 8 and 9, 2020. The subsidiary’s previously held investment in IndoStar was remeasured to fair value prior to the acquisition of additional interests. The fair value approximated carrying value and no cumulative gain or loss arising from changes in the fair value of the investment was recognized. Total consideration of $295 million was comprised of an existing equity interest of $276 million and $19 million of cash on hand. Total revenues and net loss that would have been recorded during 2020 if the transaction had occurred at the beginning of 2020 are $175 million and $37 million, respectively. Infrastructure On August 31, 2020, a subsidiary of the company, alongside institutional partners, acquired a 100% interest in an Indian telecom tower operation for a total of approximately $3.4 billion. Consideration paid was funded fully by cash on hand. Goodwill in the amount of $27 million was recognized, which is not deductible for income tax purposes. Total revenues and net income that would have been recorded during 2020 if the transaction had occurred at the beginning of 2020 are $1.1 billion and $9 million, respectively.

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