Company: BBU
Filing Date: 2025-04-10
Form Type: 20-F
Source: 0001628280-25-017216
Chunk: 484

Company: Brookfield Business Partners L.P.
Filing Date: 2025-04-10
Form: 20-F
Item: Item 19
Chunk 484
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 CONSOLIDATED FINANCIAL STATEMENTS

As at December 31, 2024 and 2023 and for the years ended December 31, 2024, 2023 and 2022

(a) Hedging activities

Derivative instruments not designated in a hedging relationship are classified as FVTPL, with changes in fair value recognized in the consolidated statements of operating results.

Net Investment hedge

The partnership uses foreign exchange derivative contracts and foreign currency denominated debt instruments to manage foreign currency exposures arising from net investments in foreign operations. For the year ended December 31, 2024, a pre-tax net gain of $ 257 165 298 177 4 135 259

Cash Flow hedge

The partnership uses commodity swap contracts to hedge the sale price of its natural gas contracts, purchase price of lead, polypropylene, and tin, foreign exchange contracts and option contracts to hedge highly probable future transactions, and interest rate contracts to hedge the cash flows on its floating rate borrowings. For the year ended December 31, 2024, a pre-tax net gain of $ 227 73 376 220 205 52 72

Fair Value hedge

The partnership uses cross currency interest rate swap contracts to hedge its fair value exposure on certain foreign currency borrowings resulting from changes in foreign currency. As at December 31, 2024, there was a derivative asset balance of $ 71 28

(b)Fair value hierarchical levels - financial instruments

The following table categorizes financial assets and liabilities, which are carried at fair value, based upon the level of input as at December 31, 2024 and 2023:

                                      2024                                              2023                               
  (US$ MILLIONS)                      Level 1      Level 2                 Level 3      Level 1      Level 2      Level 3  
 ───────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Financial assets                                                                                                         
  Common shares                       $            $                —      $            $            $            $        
  Corporate and government bonds      21                        3,033      249          25                        85       
  Derivative assets                   —            522                     —            6            404          —        
  Other financial assets (1)          441          634                     744          399          719          743      
                                      $            $            4,189      $            $            $