Brookfield Business Partners L.P.(BBU) - 2024 Q4 - Annual Report

Performance Metrics - The company evaluates its performance using net income attributable to unitholders and Adjusted EFO, with Adjusted EFO being a key measure for assessing performance and resource allocation decisions [26]. - Adjusted EBITDA is defined as net income and equity accounted income at the company's economic ownership interest, excluding various expenses, and is critical for assessing overall operating performance [27]. - The company emphasizes the importance of understanding and evaluating core underlying financial performance through non-IFRS measures [28]. Financial Reporting - The financial information is presented in United States dollars and prepared in accordance with IFRS, with all figures being unaudited unless otherwise indicated [24]. Forward-Looking Statements - Forward-looking statements include expectations regarding operations, financial condition, and performance, with potential risks that could cause actual results to differ materially [32]. - The company cautions that forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ significantly [38]. - The company undertakes no obligation to publicly update or revise forward-looking statements except as required by law [38]. Risks and Uncertainties - Factors that could impact future results include economic conditions, competition, integration of acquisitions, and changes in laws or policies [34]. - The company is subject to various risks including labor disruptions, litigation, and cybersecurity incidents that could affect its operations [34]. - The company is subject to significant operational and business risks, including reliance on third-party service providers and potential catastrophic events such as earthquakes and pandemics [36]. - The company may face significant liabilities and penalties due to compliance with federal, state, and foreign anti-corruption and trade sanctions laws [36]. - Future sales or issuances of securities could result in dilution of existing holders, potentially depressing the trading price of LP Units or BBUC exchangeable shares [36]. - There is a risk of conflicts of interest between the company and its unitholders, particularly in relation to Brookfield's influence [36]. - The company may become regulated as an investment company under the Investment Company Act, which could impose additional operational constraints [36]. - Changes in tax law and practice could impact the company's financial performance and obligations [36]. - The lack of unitholder voting rights on management decisions may limit their influence over the company's operations [36]. Strategic Actions - The company has a diversified portfolio, including interests in business services, infrastructure services, and industrial operations [22]. - The company utilizes a Master Services Agreement with affiliates to provide various services, enhancing operational efficiency [25]. - The company has previously engaged in strategic actions such as spin-offs and special distributions to optimize its capital structure [25].