Company: BBU
Filing Date: 2025-04-10
Form Type: 20-F
Source: 0001628280-25-017216
Chunk: 511

Company: Brookfield Business Partners L.P.
Filing Date: 2025-04-10
Form: 20-F
Item: Item 19
Chunk 511
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      Brookfield Business Partners  

Table of Contents

BROOKFIELD BUSINESS PARTNERS L. P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

Direct operating costs are costs incurred to earn revenues and include all attributable expenses. The following table presents direct operating costs by nature for the years ended December 31, 2024, 2023 and 2022:

                                                         Year ended December 31,                                                          
  (US$ MILLIONS)                                         2024                                     2023                  2022              
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Inventory costs                                        $                            20,640      $         33,450      $         36,736  
  Subcontractor and consultant costs                                                   3,562                 3,059                 3,163  
  Concession construction materials and labor costs      163                                      299                   323               
  Depreciation and amortization expense                                                3,204                 3,592                 3,223  
  Compensation                                                                         3,854                 5,827                 5,562  
  Other direct costs                                                                   3,460                 3,794                 4,103  
  Total                                                  $                            34,883      $         50,021      $         53,110  

Other direct costs include freight, cost of construction expensed and expected credit loss provisions on financial assets.

The partnership recorded a reduction in inventory costs of $ 1,341

The decrease in inventory costs for the year ended December 31, 2024 compared to the year ended December 31, 2023 is primarily due to the disposition of the partnership’s road fuels operation in the third quarter of 2024.

Total lease expenses relating to short-term and low-value leases included in other direct operating costs for the year ended December 31, 2024 were $ 33 37 10 18

NOTE 23. GUARANTEES AND CONTINGENCIES

In the normal course of operations, the partnership’s operating subsidiaries have bank guarantees, insurance bonds, and letters of credit outstanding to third parties. As at December 31, 2024, the total outstanding amount was approximately $ 2.0 1.7

The partnership is contingently liable with