[PART I](index=9&type=section&id=PART%20I) [Key Information](index=9&type=section&id=ITEM%203.%20KEY%20INFORMATION) This section provides essential financial data, capitalization details, and a comprehensive overview of the company's risk factors and corporate structure [Selected Financial Data](index=9&type=section&id=3.A.%20SELECTED%20FINANCIAL%20DATA) Selected financial data from 2014 to 2018 indicates significant growth in revenues, total assets, and borrowings, with volatile but increasing net income Statements of Operating Results Data (2014-2018) | (US$ Millions) | 2018 | 2017 | 2016 | 2015 | 2014 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $37,168 | $22,823 | $7,960 | $6,753 | $4,622 | | **Net income (loss)** | $1,203 | $215 | $(202) | $269 | $145 | | **Attributable to Limited partners** | $74 | $(58) | $3 | — | — | | **Basic and diluted earnings per limited partner unit** | $1.11 | $(1.04) | $0.06 | N/A | N/A | Statements of Financial Position Data (2016-2018) | (US$ Millions) | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | | :--- | :--- | :--- | :--- | | **Total assets** | $27,318 | $15,804 | $8,193 | | **Non-recourse borrowings in subsidiaries** | $10,866 | $3,265 | $1,551 | | **Total equity** | $6,494 | $6,064 | $4,038 | [Risk Factors](index=10&type=section&id=3.D.%20RISK%20FACTORS) The company faces substantial operational, structural, and relationship-based risks, including competition, leverage, and potential conflicts of interest with Brookfield - The company has a limited operating history as a standalone entity since its spin-off in June 2016, making historical financial information potentially unreliable for predicting future performance[22](index=22&type=chunk)[23](index=23&type=chunk) - A key strategy involves acquiring businesses, including distressed companies, which carries risks such as integration difficulties, entering unfamiliar markets, and uncovering material risks during due diligence[25](index=25&type=chunk)[27](index=27&type=chunk)[28](index=28&type=chunk) - The company faces intense competition for acquisitions from larger entities with greater financial resources, which may limit opportunities or decrease rates of return[30](index=30&type=chunk)[31](index=31&type=chunk) - Significant leverage is used, making the company sensitive to revenue declines, rising interest rates, and adverse economic conditions. Credit facilities contain covenants that could restrict operations or distributions[36](index=36&type=chunk)[38](index=38&type=chunk)[39](index=39&type=chunk) - Brookfield exercises substantial influence over the company, and the company is highly dependent on Brookfield-affiliated Service Providers for management, administration, and sourcing acquisition opportunities, which may create conflicts of interest[147](index=147&type=chunk)[148](index=148&type=chunk)[160](index=160&type=chunk) - The company's structure as a partnership for tax purposes is critical. If it were treated as a corporation for U.S. federal income tax purposes, the value of its units could be adversely affected[199](index=199&type=chunk) [Information on Our Company](index=43&type=section&id=ITEM%204.%20INFORMATION%20ON%20OUR%20COMPANY) This section details the company's history, business operations across four segments, and organizational structure, highlighting its relationship with Brookfield [History and Development of Our Company](index=43&type=section&id=4.A.%20HISTORY%20AND%20DEVELOPMENT%20OF%20OUR%20COMPANY) Established in 2016 as a Brookfield spin-off, the company became its primary vehicle for business services and industrial operations, marked by significant acquisitions and divestitures in 2018 - The company was established by Brookfield Asset Management and spun off on June 20, 2016. Brookfield retained a controlling interest, currently owning approximately **68%** on a fully exchanged basis[246](index=246&type=chunk) Key Transactions in 2018 | Date | Segment | Event | | :--- | :--- | :--- | | **Feb 2018** | Industrial Operations | GrafTech obtained $1.5B financing and distributed ~$1.1B to shareholders | | **Apr 2018** | Industrial Operations | GrafTech completed an IPO, generating gross proceeds of $571 million | | **May 2018** | Industrial Operations | Acquired a 70% controlling interest in Schoeller Allibert, a plastic packaging manufacturer | | **Aug 2018** | Infrastructure Services | Acquired Westinghouse Electric Company for ~$4 billion | | **Nov 2018** | Industrial Operations | Agreed to acquire Johnson Control's Power Solutions business for ~$13.2 billion | | **Nov 2018** | Industrial Operations | Completed the sale of Quadrant Energy for US$2.15 billion | - In March 2019, the company announced an agreement to sell its facilities management business, BGIS, for approximately **$1 billion**[249](index=249&type=chunk) [Business Overview](index=45&type=section&id=4.B.%20BUSINESS%20OVERVIEW) The company operates globally across four segments: Business Services, Infrastructure Services, Industrial Operations, and Corporate, focusing on operations-oriented acquisitions and capital recycling - The company operates through four segments: Business Services, Infrastructure Services, Industrial Operations, and Corporate and other[252](index=252&type=chunk) Assets and Revenue by Segment (FY 2018) | Operating Segments | Assets (US$ Millions) | Revenue (US$ Millions) | | :--- | :--- | :--- | | Business Services | $7,613 | $30,847 | | Infrastructure Services | $11,640 | $2,418 | | Industrial Operations | $7,650 | $3,896 | | Corporate and Other | $415 | $7 | | **Total** | **$27,318** | **$37,168** | - The growth strategy focuses on acquiring control or significant influence in businesses at attractive valuations, enhancing their earnings, and opportunistically recycling capital[257](index=257&type=chunk)[313](index=313&type=chunk) - The company has a licensing agreement with Brookfield to use the "Brookfield" name and logo, which is terminable under certain conditions, such as the termination of the Master Services Agreement[319](index=319&type=chunk)[320](index=320&type=chunk) [Organizational Structure](index=56&type=section&id=4.C.%20ORGANIZATIONAL%20STRUCTURE) The company is a Bermuda limited partnership managed by its general partner, a Brookfield subsidiary, which maintains a 68% interest and provides management services - The company is structured as a limited partnership with public unitholders and Brookfield Asset Management as the primary owners. Brookfield holds approximately **68%** of the company on a fully exchanged basis[333](index=333&type=chunk)[336](index=336&type=chunk)[337](index=337&type=chunk) Economic Interest in Significant Subsidiaries | Significant Subsidiaries | Economic Interest | | :--- | :--- | | **Business Services** | | | Multiplex | 100% | | Greenergy Fuels Holdings Limited | 14% | | BGIS | 26% | | **Infrastructure Services** | | | Westinghouse Electric Company | 44% | | Teekay Offshore Partners L.P. | 25% | | **Industrial Operations** | | | BRK Ambiental | 26% | | GrafTech International Ltd. | 27% | | Schoeller Allibert Group B.V. | 14% | - Management services are provided by wholly-owned subsidiaries of Brookfield Asset Management under a Master Services Agreement[338](index=338&type=chunk) [Operating and Financial Review and Prospects](index=59&type=section&id=ITEM%205.%20OPERATING%20AND%20FINANCIAL%20REVIEW%20AND%20PROSPECTS) This section provides management's discussion and analysis of the company's financial condition and operating results from 2016-2018, covering segment performance, liquidity, capital resources, and market risks [Operating Results](index=59&type=section&id=5.A.%20OPERATING%20RESULTS) Net income grew to **$1,203 million** in 2018, driven by industrial operations and acquisitions, with revenues reaching **$37.2 billion** Consolidated Results of Operations (2016-2018) | (US$ Millions) | 2018 | 2017 | 2016 | | :--- | :--- | :--- | :--- | | **Revenues** | $37,168 | $22,823 | $7,960 | | **Net income (loss)** | $1,203 | $215 | $(202) | | **Net income attributable to unitholders** | $422 | $24 | $(29) | - The increase in 2018 net income was primarily due to stronger results in the graphite electrode manufacturing business, a step-up gain from consolidating Teekay Offshore, and gains on the sale of Western Australian energy operations and a real estate brokerage business[391](index=391&type=chunk) Company FFO and EBITDA (2016-2018) | (US$ Millions) | 2018 | 2017 | 2016 | | :--- | :--- | :--- | :--- | | **Company EBITDA** | $843 | $240 | $240 | | **Company FFO** | $733 | $252 | $200 | - The company realigned its operating segments in 2018, combining construction and business services, creating a new infrastructure services segment (including Westinghouse and Teekay Offshore), and moving remaining energy businesses into industrial operations[350](index=350&type=chunk)[351](index=351&type=chunk) [Liquidity and Capital Resources](index=85&type=section&id=5.B.%20LIQUIDITY%20AND%20CAPITAL%20RESOURCES) Liquidity is managed through cash flow, asset monetization, and credit facilities, with borrowings increasing to **$10.9 billion** in 2018 - Principal sources of liquidity are cash flow from operations, undrawn credit facilities, and access to capital markets. The company aims to maintain sufficient liquidity for ongoing operations and a modest distribution[490](index=490&type=chunk)[492](index=492&type=chunk) Borrowings Summary (as of Dec 31) | (US$ Millions) | 2018 | 2017 | | :--- | :--- | :--- | | **Total Borrowings** | $10,866 | $3,265 | | **Net Debt** | $8,917 | $2,159 | | **Net Debt to Capitalization Ratio** | 58% | 26% | - The company has a **$500 million** revolving acquisition credit facility with Brookfield and an **$825 million** bilateral credit facility with a group of banks, both of which were undrawn as of December 31, 2018[498](index=498&type=chunk)[499](index=499&type=chunk) Consolidated Cash Flow Summary | (US$ Millions) | 2018 | 2017 | 2016 | | :--- | :--- | :--- | :--- | | **Cash flows from operating activities** | $1,341 | $(70) | $229 | | **Cash flows used in investing activities** | $(3,999) | $(1,595) | $(96) | | **Cash flows from financing activities** | $3,561 | $1,713 | $586 | [Off-Balance Sheet Arrangements](index=93&type=section&id=5.E.%20OFF-BALANCE%20SHEET%20ARRANGEMENTS) Off-balance sheet arrangements include **$1.7 billion** in bank guarantees and foreign currency hedging strategies - In the normal course of business, the company had approximately **$1.7 billion** in outstanding bank guarantees, insurance bonds, and letters of credit as of December 31, 2018[542](index=542&type=chunk) - The company's strategy is to hedge a portion of its equity investments and cash flows exposed to foreign currencies, utilizing natural hedges, local currency debt, and derivative contracts[545](index=545&type=chunk) - As of December 31, 2018, approximately **27%** of the company's net equity investment in foreign currencies was hedged[546](index=546&type=chunk) [Tabular Disclosure of Contractual Obligations](index=93&type=section&id=5.F.%20TABULAR%20DISCLOSURE%20OF%20CONTRACTUAL%20OBLIGATIONS) Total contractual obligations reached **$18.0 billion** as of December 31, 2018, primarily from borrowings and interest expense Contractual Obligations as at December 31, 2018 | (US$ Millions) | Total | Less than 1 Year | 1-2 Years | 3-5 Years | Thereafter | | :--- | :--- | :--- | :--- | :--- | :--- | | **Borrowings** | $10,904 | $1,825 | $1,014 | $2,623 | $5,442 | | **Interest expense** | $2,718 | $545 | $503 | $1,206 | $464 | | **Operating leases** | $1,245 | $225 | $143 | $341 | $536 | | **Decommissioning liabilities** | $1,033 | $5 | $2 | $7 | $1,019 | | **Pension obligations** | $1,006 | $84 | $88 | $292 | $542 | | **Total** | **$18,017** | **$3,072** | **$2,180** | **$4,632** | **$8,133** | - The company has made commitments to participate in future acquisitions through Brookfield-sponsored private equity funds[547](index=547&type=chunk) [Directors, Senior Management and Employees](index=95&type=section&id=ITEM%206.%20DIRECTORS,%20SENIOR%20MANAGEMENT%20AND%20EMPLOYEES) This section details the company's governance, management structure, and employee information, highlighting the role of its general partner and Brookfield affiliates in daily operations [Directors and Senior Management](index=95&type=section&id=6.A.%20DIRECTORS%20AND%20SENIOR%20MANAGEMENT) The company is managed by its general partner, BBU General Partner, with an eight-member independent board and a senior management team provided by Brookfield affiliates - The company is managed by its general partner, BBU General Partner, which has a board of directors currently set at eight members, a majority of whom are independent[550](index=550&type=chunk)[572](index=572&type=chunk) - The core senior management team is provided by Brookfield affiliates and includes Cyrus Madon as Chief Executive Officer and Jaspreet Dehl as Chief Financial Officer[562](index=562&type=chunk)[563](index=563&type=chunk) [Compensation](index=97&type=section&id=6.B.%20COMPENSATION) Directors receive an annual retainer of **$125,000**, with management services and executive compensation provided by Brookfield affiliates - Directors receive an annual fee of **$125,000**, with additional compensation for the audit committee chair and lead independent director[567](index=567&type=chunk) - The company has no employees and does not directly compensate its senior management. Management services are provided by Brookfield affiliates (Service Providers) in exchange for a management fee under the Master Services Agreement[568](index=568&type=chunk)[569](index=569&type=chunk) [Board Practices](index=97&type=section&id=6.C.%20BOARD%20PRACTICES) The BBU General Partner board, with a majority of independent directors, operates through Audit and Governance committees, overseeing a conflicts policy and requiring director unit ownership - The board of directors has an Audit Committee and a Governance and Nominating Committee, both consisting solely of independent directors[583](index=583&type=chunk)[586](index=586&type=chunk) - A conflicts policy, overseen by the Governance and Nominating Committee, requires approval for material transactions with Brookfield, co-investments, and material amendments to key agreements[577](index=577&type=chunk)[578](index=578&type=chunk) - Directors are required to hold units with an acquisition cost of at least two times their annual retainer, to be achieved within five years of joining the board[588](index=588&type=chunk)[589](index=589&type=chunk) [Employees](index=101&type=section&id=6.D.%20EMPLOYEES) As of December 31, 2018, consolidated operating companies employed approximately **46,651** people across Infrastructure, Business, and Industrial segments - As of December 31, 2018, the company's consolidated operating companies had approximately **46,651** employees[597](index=597&type=chunk) Employees by Segment (as of Dec 31, 2018) | Segment | Number of Employees | | :--- | :--- | | Infrastructure services | ~13,766 | | Business services | ~16,530 | | Industrial operations | ~16,355 | [Share Ownership](index=101&type=section&id=6.E.%20SHARE%20OWNERSHIP) Directors and officers own less than **1%** of units, and a Unit Option Plan allows for issuance of up to **5 million** units (**5%** of outstanding) - Directors and officers, as a group, own less than **1%** of the company's units on a fully exchanged basis[598](index=598&type=chunk) - The company has a Unit Option Plan allowing for the issuance of up to **5 million** units (approx. **5%** of outstanding units) to eligible officers and employees[599](index=599&type=chunk)[600](index=600&type=chunk) [Major Shareholders and Related Party Transactions](index=103&type=section&id=ITEM%207.%20MAJOR%20SHAREHOLDERS%20AND%20RELATED%20PARTY%20TRANSACTIONS) This section details the company's ownership structure and extensive related party transactions with Brookfield, including management agreements, deal flow, and incentive distributions, managed by a conflicts policy [Major Shareholders](index=103&type=section&id=7.A.%20MAJOR%20SHAREHOLDERS) Brookfield Asset Management Inc. is the principal shareholder, owning approximately **68.0%** of the company's units on a fully-exchanged basis Major Shareholder Ownership (Fully-Exchanged Basis) | Name | Units Owned | Percentage Outstanding | | :--- | :--- | :--- | | Brookfield Asset Management Inc. | 87,879,747 | 68.0% | | Partners Limited | 89,392,565 | 69.2% | [Related Party Transactions](index=104&type=section&id=7.B.%20RELATED%20PARTY%20TRANSACTIONS) Extensive related party transactions with Brookfield include a **1.25%** annual management fee, a Relationship Agreement, and incentive distributions - Under the Master Services Agreement, the company pays Brookfield affiliates a quarterly base management fee equal to **0.3125%** (**1.25%** annually) of the company's total capitalization[617](index=617&type=chunk)[623](index=623&type=chunk) - The Relationship Agreement designates the company as Brookfield's primary vehicle for business services and industrial operations, and governs how acquisition opportunities are offered[638](index=638&type=chunk)[639](index=639&type=chunk) - Brookfield is entitled to incentive distributions equal to **20%** of the quarterly growth in the unit's market value above a pre-defined, adjusting threshold. The aggregate incentive distribution for 2018 was approximately **$278 million**[652](index=652&type=chunk) - Significant potential conflicts of interest exist with Brookfield regarding the allocation of investment opportunities, co-investment terms, transaction pricing, and sharing of services and information. These are managed through a conflicts policy approved by independent directors[658](index=658&type=chunk)[660](index=660&type=chunk)[668](index=668&type=chunk) [Financial Information](index=122&type=section&id=ITEM%208.%20FINANCIAL%20INFORMATION) This section refers to the detailed financial statements in Item 18, noting no significant undisclosed changes since the annual statements - The consolidated financial statements and other related financial information are provided under Item 18 of this report[687](index=687&type=chunk) - There have been no significant changes since the date of the annual financial statements included in this report[688](index=688&type=chunk) [The Offer and Listing](index=122&type=section&id=ITEM%209.%20THE%20OFFER%20AND%20LISTING) The company's limited partnership units are listed on the NYSE under "BBU" and on the TSX under "BBU.UN" - The company's limited partnership units are listed on the New York Stock Exchange (NYSE) under the symbol "BBU" and on the Toronto Stock Exchange (TSX) under the symbol "BBU.UN"[688](index=688&type=chunk) [Additional Information](index=123&type=section&id=ITEM%2010.%20ADDITIONAL%20INFORMATION) This section provides detailed legal and regulatory information, including unit rights, material contracts, and tax considerations for unitholders [Memorandum and Articles of Association](index=123&type=section&id=10.B.%20MEMORANDUM%20AND%20ARTICLES%20OF%20ASSOCIATION) This subsection details the material terms of the Limited Partnership Agreements for the company and Holding LP, covering unit rights, management, distributions, and redemption - The company's units are non-voting limited partnership interests, and unitholders do not have statutory rights typically associated with corporate shares, such as bringing oppression or derivative actions[694](index=694&type=chunk) - The Holding LP's distribution waterfall prioritizes company expenses, followed by payments to unitholders up to the regular quarterly distribution, then an incentive distribution to Brookfield, and finally any remaining cash is distributed pro rata[757](index=757&type=chunk) - Brookfield holds redemption-exchange units in the Holding LP, which it can redeem for cash. The company has the right to satisfy this redemption by issuing its own LP units on a one-for-one basis instead of paying cash[752](index=752&type=chunk)[753](index=753&type=chunk) [Taxation](index=140&type=section&id=10.E.%20TAXATION) This subsection summarizes material tax considerations for unitholders in the U.S., Canada, and Bermuda, focusing on partnership status and tax implications - The company intends to maintain its status as a partnership for U.S. federal income tax purposes by meeting the Qualifying Income Exception, which requires at least **90%** of its gross income to be "qualifying income"[808](index=808&type=chunk) - U.S. Holders are required to report their allocable share of the company's income, gain, loss, and deductions, regardless of whether cash distributions are received[813](index=813&type=chunk) - For Canadian tax purposes, the company is not expected to be a "SIFT partnership," which would otherwise subject it to entity-level tax similar to a corporation. Canadian Limited Partners must include their share of the company's income or loss in their own income calculations[221](index=221&type=chunk)[885](index=885&type=chunk) - Bermuda, the jurisdiction of the company's formation, imposes no taxes on profits, income, dividends, or capital gains[915](index=915&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=159&type=section&id=ITEM%2011.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This section refers to market risk disclosures provided in Item 5.B, under "Liquidity and Capital Resources—Market Risks" - Information regarding quantitative and qualitative disclosures about market risk is located in Item 5.B of this report[919](index=919&type=chunk) [PART II](index=159&type=section&id=PART%20II) [Controls and Procedures](index=159&type=section&id=ITEM%2015.%20CONTROLS%20AND%20PROCEDURES) Management concluded disclosure controls and internal control over financial reporting were effective as of December 31, 2018, excluding recent acquisitions (**45%** of assets) - Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2018[921](index=921&type=chunk) - Management concluded that internal control over financial reporting was effective as of December 31, 2018, based on the COSO framework (2013)[923](index=923&type=chunk) - The evaluation of internal controls excluded the recently acquired Schoeller Allibert, Teekay Offshore, and Westinghouse Electric Company, which together constituted **45%** of total assets[923](index=923&type=chunk) [Item 16](index=160&type=section&id=ITEM%2016.) This section covers governance and compliance, including the audit committee financial expert, Code of Conduct, principal accountant fees, and normal course issuer bid renewal - The board of directors has identified Patricia Zuccotti as an audit committee financial expert[927](index=927&type=chunk) Principal Accountant Fees (Deloitte LLP) | (US$ Millions) | 2018 | 2017 | | :--- | :--- | :--- | | Audit fees | $11.1 | $5.4 | | Audit-related fees | $11.8 | $4.4 | | Tax fees | $0.8 | $0.5 | | **Total** | **$23.7** | **$10.3** | - On August 10, 2018, the company renewed its normal course issuer bid (NCIB) and later amended it to allow for the repurchase of up to **3,309,289** units, or **5%** of total issued and outstanding units[932](index=932&type=chunk) [PART III](index=161&type=section&id=PART%20III) [Financial Statements](index=162&type=section&id=ITEM%2018.%20FINANCIAL%20STATEMENTS) This section indicates that the audited consolidated financial statements are filed as part of the annual report, beginning on page F-1 - The audited consolidated financial statements are included in the report, starting from page F-1[938](index=938&type=chunk) [Exhibits](index=162&type=section&id=ITEM%2019.%20EXHIBITS) This section lists all exhibits filed with the Form 20-F annual report, including key agreements like the Limited Partnership Agreements and Master Services Agreement with Brookfield - Key exhibits filed with the report include the Amended and Restated Limited Partnership Agreements for both the company and the Holding LP[939](index=939&type=chunk) - Material contracts filed as exhibits include the Master Services Agreement, Relationship Agreement, and Registration Rights Agreement with Brookfield Asset Management[939](index=939&type=chunk) [Index to Financial Statements](index=164&type=section&id=INDEX%20TO%20FINANCIAL%20STATEMENTS) [Report of the Independent Registered Public Accounting Firm](index=166&type=section&id=Report%20of%20the%20Independent%20Registered%20Public%20Accounting%20Firm) Deloitte LLP issued unqualified opinions on 2018 financial statements and internal control, noting exclusion of recent acquisitions and IFRS 15 adoption - Deloitte LLP provided an unqualified audit opinion on the financial statements for the three years ended December 31, 2018[944](index=944&type=chunk) - An unqualified opinion was also issued on the effectiveness of the company's internal control over financial reporting as of December 31, 2018[945](index=945&type=chunk)[949](index=949&type=chunk) - The audit of internal controls excluded Schoeller Allibert Group B.V., Teekay Offshore Partners L.P., and Westinghouse Electric Company, which were acquired in 2018[951](index=951&type=chunk) - The report highlights a change in accounting principle effective January 1, 2018, due to the adoption of IFRS 15, Revenue from Contracts with Customers[946](index=946&type=chunk) [Consolidated Financial Statements](index=169&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements present the company's financial position, operating results, and cash flows for 2016-2018, reflecting significant growth driven by acquisitions Consolidated Statement of Financial Position (Abridged) | (US$ Millions) | Dec 31, 2018 | Dec 31, 2017 | | :--- | :--- | :--- | | **Total Assets** | **$27,318** | **$15,804** | | Cash and cash equivalents | $1,949 | $1,106 | | Property, plant and equipment | $6,947 | $2,530 | | Goodwill | $2,411 | $1,554 | | **Total Liabilities** | **$20,824** | **$9,740** | | Non-recourse subsidiary borrowings | $10,866 | $3,265 | | **Total Equity** | **$6,494** | **$6,064** | Consolidated Statement of Operating Results (Abridged) | (US$ Millions) | 2018 | 2017 | 2016 | | :--- | :--- | :--- | :--- | | **Revenues** | $37,168 | $22,823 | $7,960 | | **Net income (loss)** | $1,203 | $215 | $(202) | | **Attributable to Limited partners** | $74 | $(58) | $3 | [Notes to Consolidated Financial Statements](index=175&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, major acquisitions, financial instruments, segment information, and related party transactions, including IFRS 15 and IFRS 9 adoption - The company adopted IFRS 15 (Revenue from Contracts with Customers) on January 1, 2018, using the modified retrospective approach, resulting in a **$260 million** reduction to opening retained earnings, mainly from the construction services business[1039](index=1039&type=chunk) - The company also adopted IFRS 9 (Financial Instruments) on January 1, 2018, which resulted in reclassifications of certain financial assets but had a **$nil** impact on opening retained earnings[1040](index=1040&type=chunk) - Major acquisitions in 2018 included Westinghouse for **$1.69 billion** in cash consideration, the consolidation of Teekay Offshore with **$275 million** in non-cash consideration, and Schoeller Allibert for **$45 million** in cash[1045](index=1045&type=chunk) - Related party transactions with Brookfield are extensive, including a base management fee of **$56 million** and an incentive distribution of **$278 million** paid to Brookfield in 2018[1179](index=1179&type=chunk)

Brookfield Business Partners L.P. (NYSE:BBU) Q4 2018 Results Earnings Conference Call February 8, 2019 11:00 AM ET Company Participants Jaspreet Dehl - CFO Peter Gordon - COO Cyrus Madon - CEO Conference Call Participants Devin Dodge - BMO Capital Markets Geoff Kwan - RBC Capital Markets Andrew Kuske - Credit Suisse Operator Welcome to the Brookfield Business Partners' 2018 Year-end Results Conference Call and Webcast. [Operator Instructions] Now I’d like to turn the call over to Jaspreet Dehl, Chief Financ ...