PART 4 – CAPITALIZATION AND LIQUIDITY FINANCING STRATEGY CAPITALIZATION Overview The following are key elements of our capital strategy: Most of our borrowings are in the form of long-term, property-specific financings such as mortgages or project financings  secured only by the specific assets. We attempt to diversify our maturity schedule so that financing requirements in any given  year are manageable. Limiting recourse to specific assets or business units is intended to limit the impact of weak performance  by one asset or business unit on our ability to finance the balance of the operations. Most of our financings have investment-grade characteristics which is intended to ensure that debt levels on any particular asset  or business can typically be maintained throughout a business cycle, and to enable us to limit covenants and other performance  requirements, thereby reducing the risk of early payment requirements or restrictions on the distribution of cash from the assets  being financed. Furthermore, our ability to finance at the corporate, operating unit, and asset level on a private or public basis  is intended to lessen our dependence on any particular segment of the capital markets or the performance of any particular unit. To enable us to react to attractive investment opportunities and deal with contingencies when they arise, we typically maintain  sufficient liquidity at the corporate level and within our key operating platforms. Our primary sources of liquidity, which we  refer to as “core liquidity,” consist of our cash and financial assets, net of deposits and other associated liabilities, and undrawn  committed credit facilities. We historically generate substantial liquidity within our operations on an ongoing basis through our operating cash flow, as well  as from the turnover of assets with shorter investment horizons and periodic monetization of our longer-dated assets through  sales, refinancings or co-investor participations. Accordingly, we believe we have the necessary liquidity to manage our financial  commitments and to capitalize on opportunities to invest capital at attractive returns.  We review key components of our consolidated capitalization in the following sections. In several instances we have disaggregated  the balances into the amounts attributable to our operating segments in order to facilitate discussion and analysis.  The following table presents our capitalization on a corporate (i.e., deconsolidated), a proportionally consolidated and  consolidated basis.  1.  Represents interest rate swap contracts settled in August 2013 that was previously included in corporate subsidiary borrowings due to a corporate guarantee 50 BROOKFIELD ASSET MANAGEMENT  • Match our long-life assets with long-duration mortgage financings with a diversified maturity schedule; • Provide recourse only to the specific assets being financed, with limited cross collateralization or parental guarantees; • Limit borrowings to investment-grade levels based on anticipated performance throughout a business cycle; and • Structure our affairs to facilitate access to a broad range of capital and liquidity at multiple levels of the organization. Consolidated Corporate Proportionate AS AT DECEMBER 31  (MILLIONS) 2013 2012 2013 2012 2013 2012 Corporate borrowings  $ 3,975 $ 3,526 $ 3,975 $ 3,526 $ 3,975 $ 3,526 Non-recourse borrowings  Property-specific mortgages  35,495 33,720 — — 20,319 21,794 Subsidiary borrowings 1 7,392 7,585 — 1,130 3,998 4,928 46,862 44,831 3,975 4,656 28,292 30,248 Accounts payable and other  10,316 11,652 978 1,199 6,041 7,175 Deferred tax liabilities  6,164 6,425 24 — 3,737 3,753 Capital securities  791 1,191 163 325 655 758 Interests of others in consolidated funds  1,086 425 — — — — Equity Non-controlling interests  26,647 23,287 — — — — Preferred equity  3,098 2,901 3,098 2,901 3,098 2,901 Common equity  17,781 18,150 17,781 18,150 17,781 18,150 47,526 44,338 20,879 21,051 20,879 21,051 Total capitalization  $ 112,745 $ 108,862 $ 26,019 $  27,231 $ 59,604 $  62,985