Financial Performance - For the three months ended September 30, 2023, net income decreased by $24 million to $7 million, compared to $31 million for the same period in 2022[143]. - Revenues for the three months ended September 30, 2023, increased by $49 million to $2,954 million, compared to $2,905 million for the same period in 2022[146]. - For the nine months ended September 30, 2023, revenues increased by $1,315 million to $8,789 million, compared to $7,474 million for the same period in 2022[146]. - The company recognized a net loss of $20 million for the nine months ended September 30, 2023, compared to net income of $918 million for the same period in 2022[145]. - Total revenues for Q3 2023 were $2,954 million, compared to $2,905 million in Q3 2022, reflecting a year-over-year increase[156]. - Net income for Q3 2023 was $7 million, a decrease from a net income of $158 million in Q3 2022[156]. - Total revenues for the nine months ended September 30, 2023, were $41,663 million, down from $42,745 million in 2022, while net income increased to $293 million from $205 million[169]. Operating Costs and Expenses - Direct operating costs for the three months ended September 30, 2023, decreased by $1 million to $2,603 million, compared to $2,604 million for the same period in 2022[148]. - General and administrative expenses for the three months ended September 30, 2023, decreased by $5 million to $124 million, compared to $129 million for the same period in 2022[149]. - Interest expense, net for the three months ended September 30, 2023, increased by $54 million to $302 million, compared to $248 million for the same period in 2022[149]. - For the nine months ended September 30, 2023, interest expense increased by $400 million to $888 million compared to $488 million for the same period in 2022[150]. - Other expenses, net for the nine months ended September 30, 2023, decreased by $90 million to $20 million compared to $110 million for the same period in 2022[152]. - Current income tax expense for the nine months ended September 30, 2023, increased by $135 million to $195 million compared to $60 million for the same period in 2022[153]. Assets and Liabilities - Financial assets increased by $187 million to $684 million as of September 30, 2023, compared to $497 million as of December 31, 2022[160]. - Accounts receivable and other, net decreased by $205 million to $2,986 million as of September 30, 2023, compared to $3,191 million as of December 31, 2022[161]. - Property, plant, and equipment decreased by $158 million to $3,607 million as of September 30, 2023, compared to $3,765 million as of December 31, 2022[163]. - Intangible assets decreased by $388 million to $8,907 million as of September 30, 2023, compared to $9,295 million as of December 31, 2022[163]. - Goodwill decreased by $263 million to $6,651 million as of September 30, 2023, primarily due to the sale of a non-core division and foreign exchange impacts[165]. - Accounts payable decreased by $478 million to $7,161 million as of September 30, 2023, mainly due to lower liabilities in healthcare services[166]. Cash Flow and Investments - Cash and cash equivalents decreased to $646 million as of September 30, 2023, from $736 million at the end of 2022[178]. - Cash flow used in operating activities was $43 million for the nine months ended September 30, 2023, compared to cash provided of $60 million in 2022[180]. - Total cash flow used in financing activities was $266 million for the nine months ended September 30, 2023, compared to $9,000 million provided in 2022[181]. - Total cash flow provided by investing activities was $207 million for the nine months ended September 30, 2023, compared to cash used of $9,015 million in 2022[182]. Significant Transactions - The company completed the sale of its nuclear technology services operations on November 7, 2023, for proceeds of approximately $4 billion[147]. - Revenues from nuclear technology services operations for the three and nine months ended September 30, 2023, were $990 million and $3,052 million, respectively[147]. - Direct operating costs from nuclear technology services operations for the three and nine months ended September 30, 2023, were $843 million and $2,676 million, respectively[148]. Financial Obligations and Provisions - As of September 30, 2023, the company's total undiscounted contractual obligations amount to $26,752 million, with $3,701 million due within one year[189]. - The company has pension obligations totaling $3,775 million, with $88 million due within one year[189]. - The company has a total interest expense obligation of $6,927 million, with $949 million due within one year[189]. - The company has decommissioning liabilities amounting to $718 million, with $1 million due within one year[189]. - The company has recorded provisions for potential losses where estimable, but has not recorded provisions for claims that cannot be measured or are not probable at this time[186]. - The company has entered into indemnity agreements with Brookfield related to certain construction projects in the Middle East, which have been in place for several years[185]. - Historically, the company has made no significant payments under indemnification agreements, indicating a low risk of financial impact from such agreements[185]. Accounting Standards - The company adopted amendments to IAS 12 and IAS 1 on January 1, 2023, which did not have a material impact on its financial statements[194][196]. - The company is currently assessing the impact of future amendments to IAS 1, which clarify the classification of debt and other liabilities as current or non-current, effective January 1, 2024[197].
Brookfield Business (BBUC) - 2023 Q3 - Quarterly Report