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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
 
☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31,June 30, 2020
OR
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from        to       
Commission File Number 001-16625
BUNGE LIMITED
(Exact name of registrant as specified in its charter)
Bermuda98-0231912
(State or other jurisdiction of incorporation or

organization)
(I.R.S. Employer Identification No.)
1391 Timberlake Manor Parkway
St. Louis
Missouri63017
(Address of principal executive offices)(Zip Code)
(314) (314) 292-2000
(Registrant’s telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes  ý  No  o
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes  ý  No  o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filerýAccelerated filer☐
Non-accelerated filer

(Do not check if a smaller

reporting company)
☐Smaller reporting company☐Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Securities Exchange Act of 1934).  Yes    No  
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Securities Exchange Act of 1934).  Yes  ☐  No  ý
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Shares, $0.01 par value per shareBGNew York Stock Exchange
As of May 1,July 23, 2020, the number of shares issued of the registrant was:
Common shares, par value $.01 per share:142,150,879139,642,911


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PART I — FINANCIAL INFORMATION
ITEM 1.FINANCIAL STATEMENTS
ITEM 1. FINANCIAL STATEMENTS

BUNGE LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(Unaudited)
(U.S. dollars in millions, except per share data)
 Three Months Ended
March 31,		Three Months Ended
June 30,		Six Months Ended
June 30,
 2020 2019 2020201920202019
Net sales $9,173
 $9,938
Net sales$9,462  $10,096  $18,635  $20,034  
Cost of goods sold (8,999) (9,501)Cost of goods sold(8,357) (9,584) (17,356) (19,085) 
Gross profit 174
 437
Gross profit1,105  512  1,279  949  
Selling, general and administrative expenses (295) (305)Selling, general and administrative expenses(346) (335) (641) (640) 
Interest income 7
 7
Interest income6  7  13  14  
Interest expense (77) (75)Interest expense(62) (88) (139) (163) 
Foreign exchange gains (losses) (6) (7)Foreign exchange gains (losses)27  (11) 21  (18) 
Other income (expense) – net (51) 31
Other income (expense) – net27  181  20  205  
Income (loss) from affiliatesIncome (loss) from affiliates(67) 6  (111) 13  
Income (loss) before income tax (248) 88
Income (loss) before income tax690  272  442  360  
Income tax (expense) benefit 55
 (38)Income tax (expense) benefit(168) (60) (113) (98) 
Net income (loss) (193) 50
Net income (loss)522  212  329  262  
Net (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests 9

(5)Net (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests(6) 2  3  (3) 
Net income (loss) attributable to Bunge (184) 45
Net income (loss) attributable to Bunge516  214  332  259  
Convertible preference share dividends (8) (8)Convertible preference share dividends(9) (9) (17) (17) 
Adjustment of redeemable noncontrolling interest (15) —
Adjustment of redeemable noncontrolling interest5  —  (10) —  
Net income (loss) available to Bunge common shareholders $(207) $37
Net income (loss) available to Bunge common shareholders$512  $205  $305  $242  
    
Earnings per common share (Note 19)  
  
Earnings per common share—basic (Note 19)Earnings per common share—basic (Note 19)    
Net income (loss) attributable to Bunge common shareholders - basic $(1.46) $0.26
Net income (loss) attributable to Bunge common shareholders - basic$3.62  $1.46  $2.15  $1.72  
Earnings per common share—diluted (Note 19)Earnings per common share—diluted (Note 19)    
Net income (loss) attributable to Bunge common shareholders - diluted $(1.46) $0.26
Net income (loss) attributable to Bunge common shareholders - diluted$3.47  $1.43  $2.14  $1.71  
The accompanying notes are an integral part of these condensed consolidated financial statements.

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BUNGE LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)
(U.S. dollars in millions)
  Three Months Ended
March 31,
  2020 2019
Net income (loss) $(193) $50
Other comprehensive income (loss):  
  
Foreign exchange translation adjustment (852) (29)
  Unrealized gains (losses) on designated hedges, net of tax (expense) benefit of $(5) in 2020 and nil in 2019 51
 (23)
Reclassification of realized net (gains) losses to net income, net of tax (benefit) expense of $2 in 2020 and nil in 2019 (3) (1)
Total other comprehensive income (loss) (804) (53)
Total comprehensive income (loss) (997) (3)
Less: comprehensive (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests 25
 4
Total comprehensive income (loss) attributable to Bunge $(972) $1

Three Months Ended
June 30,		Six Months Ended
June 30,
 2020201920202019
Net income (loss)$522  $212  $329  $262  
Other comprehensive income (loss):    
Foreign exchange translation adjustment(98) 97  (950) 68  
Unrealized gains (losses) on designated hedges, net of tax benefit (expense) of $1 and $6 in 2020 and ($1) and ($1) in 20193  (8) 54  (31) 
Reclassification of realized net (gains) losses to net income, net of tax (benefit) expense of ($1) and nil in 2020 and $1 and $1 in 20194  (1) 1  (2) 
Total other comprehensive income (loss)(91) 88  (895) 35  
Total comprehensive income (loss)431  300  (566) 297  
Less: comprehensive (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests(18) (5) 7  (1) 
Total comprehensive income (loss) attributable to Bunge$413  $295  $(559) $296  
The accompanying notes are an integral part of these condensed consolidated financial statements.


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BUNGE LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(U.S. dollars in millions, except share data)
 March 31,
2020		 December 31,
2019		June 30,
2020		December 31,
2019
ASSETS  
  
ASSETS  
Current assets:  
  
Current assets:  
Cash and cash equivalents $193
 $320
Cash and cash equivalents$277  $320  
Trade accounts receivable (less allowances of $117 and $108) (Note 6) 1,616
 1,705
Trade accounts receivable (less allowances of $146 and $108) (Note 6)Trade accounts receivable (less allowances of $146 and $108) (Note 6)1,526  1,705  
Inventories (Note 7) 5,451
 5,038
Inventories (Note 7)6,007  5,038  
Assets held for sale (Note 3) 51
 72
Assets held for sale (Note 3)296  72  
Other current assets (Note 8) 3,789
 3,113
Other current assets (Note 8)3,362  3,113  
Total current assets 11,100
 10,248
Total current assets11,468  10,248  
Property, plant and equipment, net 3,830
 4,132
Property, plant and equipment, net3,714  4,132  
Operating lease assets (Note 4) 756
 796
Operating lease assets (Note 4)776  796  
Goodwill 553
 611
Goodwill550  611  
Other intangible assets, net 533
 583
Other intangible assets, net524  583  
Investments in affiliates 686
 827
Investments in affiliates565  827  
Deferred income taxes 416
 442
Deferred income taxes295  442  
Other non-current assets (Note 9) 722
 678
Other non-current assets (Note 9)667  678  
Total assets $18,596
 $18,317
Total assets$18,559  $18,317  
LIABILITIES AND EQUITY  
  
LIABILITIES AND EQUITY  
Current liabilities:  
  
Current liabilities:  
Short-term debt (Note 14) $736
 $771
Short-term debt (Note 14)$1,535  $771  
Current portion of long-term debt (Note 14) 509
 507
Current portion of long-term debt (Note 14)522  507  
Trade accounts payable (includes $644 and $378 carried at fair value) 3,368
 2,842
Trade accounts payable (includes $514 and $378 carried at fair value)Trade accounts payable (includes $514 and $378 carried at fair value)2,602  2,842  
Current operating lease obligations (Note 4) 217
 216
Current operating lease obligations (Note 4)220  216  
Liabilities held for sale (Note 3) 3
 4
Liabilities held for sale (Note 3)150  4  
Other current liabilities (Note 11) 3,189
 2,255
Other current liabilities (Note 11)2,467  2,255  
Total current liabilities 8,022
 6,595
Total current liabilities7,496  6,595  
Long-term debt (Note 14) 3,753
 3,716
Long-term debt (Note 14)3,980  3,716  
Deferred income taxes 294
 329
Deferred income taxes309  329  
Non-current operating lease obligations (Note 4) 494
 539
Non-current operating lease obligations (Note 4)503  539  
Other non-current liabilities 667
 711
Other non-current liabilities665  711  
Commitments and contingencies (Note 16) 


 


Redeemable noncontrolling interest (Note 17)
 394
 397
Redeemable noncontrolling interest (Note 17)
397  397  
Equity (Note 18):
  
  
Equity (Note 18):
  
Convertible perpetual preference shares, par value $.01; authorized – 21,000,000 shares, issued and outstanding: 2020 and 2019 - 6,899,683 shares (liquidation preference $100 per share) 690
 690
Convertible perpetual preference shares, par value $.01; authorized – 21,000,000 shares, issued and outstanding: 2020 and 2019 - 6,899,683 shares (liquidation preference $100 per share)690  690  
Common shares, par value $.01; authorized – 400,000,000 shares; issued and outstanding: 2020 – 142,146,260 shares, 2019 – 141,813,142 shares 1
 1
Common shares, par value $.01; authorized – 400,000,000 shares; issued and outstanding: 2020 – 139,640,018 shares, 2019 – 141,813,142 sharesCommon shares, par value $.01; authorized – 400,000,000 shares; issued and outstanding: 2020 – 139,640,018 shares, 2019 – 141,813,142 shares1  1  
Additional paid-in capital 5,344
 5,329
Additional paid-in capital5,356  5,329  
Retained earnings 6,158
 6,437
Retained earnings6,581  6,437  
Accumulated other comprehensive income (loss) (Note 18) (6,411) (5,624)Accumulated other comprehensive income (loss) (Note 18)(6,515) (5,624) 
Treasury shares, at cost - 2020 and 2019 - 12,882,313 shares (920) (920)
Treasury shares, at cost - 2020 - 15,428,313 and 2019 - 12,882,313 sharesTreasury shares, at cost - 2020 - 15,428,313 and 2019 - 12,882,313 shares(1,020) (920) 
Total Bunge shareholders’ equity 4,862
 5,913
Total Bunge shareholders’ equity5,093  5,913  
Noncontrolling interests 110
 117
Noncontrolling interests116  117  
Total equity 4,972
 6,030
Total equity5,209  6,030  
Total liabilities, redeemable noncontrolling interest and equity $18,596
 $18,317
Total liabilities, redeemable noncontrolling interest and equity$18,559  $18,317  
The accompanying notes are an integral part of these condensed consolidated financial statements.

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BUNGE LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(U.S. dollars in millions)
 Three Months Ended March 31,Six Months Ended June 30,
 2020 2019 20202019
OPERATING ACTIVITIES  
  
OPERATING ACTIVITIES  
Net income (loss) $(193) $50
Net income (loss)$329  $262  
Adjustments to reconcile net income (loss) to cash provided by (used for) operating activities:  
  
Adjustments to reconcile net income (loss) to cash provided by (used for) operating activities:  
Impairment charges 1
 9
Impairment charges1  22  
Foreign exchange (gain) loss on net debt (86) 37
Foreign exchange (gain) loss on net debt(107) 38  
Bad debt expense 13
 7
Bad debt expense65  4  
Depreciation, depletion and amortization 113
 139
Depreciation, depletion and amortization217  294  
Share-based compensation expense 15
 4
Share-based compensation expense27  17  
Deferred income tax benefit (68) (3)
Deferred income tax loss (benefit)Deferred income tax loss (benefit)50  3  
Other, net 44
 12
Other, net105  (13) 
Changes in operating assets and liabilities, excluding the effects of acquisitions and dispositions:  
  
Changes in operating assets and liabilities, excluding the effects of acquisitions and dispositions:  
Trade accounts receivable (94) (128)Trade accounts receivable(99) (106) 
Inventories (751) (94)Inventories(1,308) 5  
Secured advances to suppliers (105) (31)Secured advances to suppliers(218) (120) 
Trade accounts payable 722
 248
Trade accounts payable75  (503) 
Advances on sales (81) (97)Advances on sales(84) (169) 
Net unrealized (gains) losses on derivative contracts 589
 (370)Net unrealized (gains) losses on derivative contracts3  (214) 
Margin deposits (204) 102
Margin deposits(90) 121  
Marketable securities 121
 (36)Marketable securities62  (272) 
Beneficial interest in securitized trade receivables (430) (244)Beneficial interest in securitized trade receivables(761) (521) 
Other, net (45) (7)Other, net231  69  
Cash provided by (used for) operating activities (439) (402)Cash provided by (used for) operating activities(1,502) (1,083) 
INVESTING ACTIVITIES  
  
INVESTING ACTIVITIES  
Payments made for capital expenditures (55) (119)Payments made for capital expenditures(127) (265) 
Proceeds from investments 80
 37
Proceeds from investments238  213  
Payments for investments (104) (193)Payments for investments(226) (277) 
Settlements of net investment hedges —
 (51)Settlements of net investment hedges66  (39) 
Proceeds from beneficial interest in securitized trade receivables 423
 275
Proceeds from beneficial interest in securitized trade receivables748  547  
Payments for investments in affiliates (1) (4)Payments for investments in affiliates(2) (6) 
Other, net 51
 14
Other, net31  12  
Cash provided by (used for) investing activities 394
 (41)Cash provided by (used for) investing activities728  185  
FINANCING ACTIVITIES  
  
FINANCING ACTIVITIES  
Net change in short-term debt with maturities of 90 days or less (54) 1,193
Net change in short-term debt with maturities of 90 days or less719  1,198  
Proceeds from short-term debt with maturities greater than 90 days 66
 9
Proceeds from short-term debt with maturities greater than 90 days90  44  
Repayments of short-term debt with maturities greater than 90 days (7) (214)Repayments of short-term debt with maturities greater than 90 days(4) (104) 
Proceeds from long-term debt 78
 978
Proceeds from long-term debt1,762  3,262  
Repayments of long-term debt (81) (1,376)Repayments of long-term debt(1,567) (3,496) 
Proceeds from the exercise of options for common shares 2
 5
Proceeds from the exercise of options for common shares2  7  
Repurchases of common sharesRepurchases of common shares(100) —  
Dividends paid to common and preference shareholders (79) (79)Dividends paid to common and preference shareholders(159) (158) 
Other, net (9) (3)Other, net(17) (8) 
Cash provided by (used for) financing activities (84) 513
Cash provided by (used for) financing activities726  745  
Effect of exchange rate changes on cash and cash equivalents and restricted cash 2
 6
Effect of exchange rate changes on cash and cash equivalents and restricted cash5  8  
Net increase (decrease) in cash and cash equivalents and restricted cash (127) 76
Net increase (decrease) in cash and cash equivalents and restricted cash(43) (145) 
Cash and cash equivalents and restricted cash - beginning of period 322
 393
Cash and cash equivalents and restricted cash - beginning of period322  393  
Cash and cash equivalents and restricted cash - end of period $195
 $469
Cash and cash equivalents and restricted cash - end of period$279  $248  
The accompanying notes are an integral part of these condensed consolidated financial statements.

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BUNGE LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS
(Unaudited)
(U.S. dollars in millions, except share data)
   Convertible
Preference Shares		 Common Shares            
  Redeemable
Non-
Controlling
Interests		Shares Amount Shares Amount Additional
Paid-in
Capital		 Retained
Earnings		 Accumulated
Other
Comprehensive
Income (Loss)		 Treasury
Shares		 Non-
Controlling
Interests		 Total
Equity
Balance, January 1, 2020 $397
6,899,683
 $690
 141,813,142
 $1
 $5,329
 $6,437
 $(5,624) $(920) $117
 $6,030
Net income (loss) (8)—
 —
 —
 —
 —
 (184) —
 —
 (1) (185)
Other comprehensive income (loss) (10)—
 —
 —
 —
 —
 —
 (787) —
 (7) (794)
Redemption value adjustment 15
—
 —
 —
 —
 —
 (15) —
 —
 —
 (15)
Dividends on common shares, $0.50 per share —
—
 —
 —
 —
 —
 (71) —
 —
 —
 (71)
Dividends on preference shares, $1.21875 per share —
—
 —
 —
 —
 —
 (8) —
 —
 —
 (8)
Dividends to noncontrolling interests on subsidiary common stock —
—
 —
 —
 —
 —
 —
 —
 —
 (4) (4)
Acquisition of noncontrolling interest —
—
 —
 —
 —
 —
 1
 —
 —
 5
 6
Share-based compensation expense —
—
 —
 —
 —
 15
 —
 —
 —
 —
 15
Issuance of common shares, including stock dividends —
—
 —
 333,118
 —
 —
 (2) —
 —
 —
 (2)
Balance, March 31, 2020 $394
6,899,683
 $690
 142,146,260
 $1
 $5,344
 $6,158
 $(6,411) $(920) $110
 $4,972

Convertible Preference SharesCommon Shares
Redeemable Non- Controlling InterestsSharesAmountSharesAmountAdditional Paid-in CapitalRetained EarningsAccumulated Other Comprehensive Income (Loss)Treasury SharesNon- Controlling InterestsTotal Equity
Balance, April 1, 2020$394  6,899,683  $690  142,146,260  $1  $5,344  $6,158  $(6,411) $(920) $110  $4,972  
Net income (loss)(1) —  —  —  —  —  516  —  —  7  523  
Other comprehensive income (loss)9  —  —  —  —  —  —  (104) —  4  (100) 
Redemption value adjustment(5) —  —  —  —  —  5  —  —  —  5  
Dividends on common shares, $0.50 per share—  —  —  —  —  —  (71) —  —  —  (71) 
Dividends on preference shares, $1.21875 per share—  —  —  —  —  —  (9) —  —  —  (9) 
Dividends to noncontrolling interests on subsidiary common stock—  —  —  —  —  —  —  —  —  —  —  
Acquisition of noncontrolling interest—  —  —  —  —  —  (18) —  —  (5) (23) 
Share-based compensation expense—  —  —  —  —  12  —  —  —  —  12  
Repurchase of common shares—  —  —  (2,546,000) —  —  —  —  (100) —  (100) 
Issuance of common shares, including stock dividends—  —  —  39,758  —  —  —  —  —  —  —  
Balance, June 30, 2020$397  6,899,683  $690  139,640,018  $1  $5,356  $6,581  $(6,515) $(1,020) $116  $5,209  
 Convertible
Preference Shares		Common Shares
 Redeemable
Non-
Controlling
Interests		SharesAmountSharesAmountAdditional
Paid-in
Capital		Retained
Earnings		Accumulated
Other
Comprehensive
Income (Loss)		Treasury
Shares		Non-
Controlling
Interests		Total
Equity
Balance, April 1, 2019$421  6,899,683  $690  141,469,061  $1  $5,284  $8,045  $(7,000) $(920) $204  $6,304  
Net income (loss)(1) —  —  —  —  —  214  —  —  (1) 213  
Other comprehensive income (loss)5  —  —  —  —  —  —  81  —  2  83  
Dividends on common shares, $0.50 per share—  —  —  —  —  —  (71) —  —  —  (71) 
Dividends on preference shares, $1.21875 per share—  —  —  —  —  —  (9) —  —  —  (9) 
Dividends to noncontrolling interests on subsidiary common stock—  —  —  —  —  —  —  —  —  (11) (11) 
Share-based compensation expense—  —  —  —  —  13  —  —  —  —  13  
Issuance of common shares, including stock dividends—  —  —  64,661  —  3  —  —  —  —  3  
Balance, June 30, 2019$425  6,899,683  $690  141,533,722  $1  $5,300  $8,179  $(6,919) $(920) $194  $6,525  
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   Convertible
Preference Shares		 Common Shares            
  Redeemable
Non-
Controlling
Interests		Shares Amount Shares Amount Additional
Paid-in
Capital		 Retained
Earnings		 Accumulated
Other
Comprehensive
Income (Loss)		 Treasury
Shares		 Non-
Controlling
Interests		 Total
Equity
Balance, January 1, 2019 $424
6,899,683
 $690
 141,111,081
 $1
 $5,278
 $8,059
 $(6,935) $(920) $205
 $6,378
Net income (loss) 5
—
 —
 —
 —
 —
 45
 —
 —
 —
 45
Other comprehensive income (loss) (8)—
 —
 —
 —
 —
 —
 (44) —
 (1) (45)
Dividends on common shares, $0.50 per share —
—
 —
 —
 —
 —
 (71) —
 —
 —
 (71)
Dividends on preference shares, $1.21875 per share —
—
 —
 —
 —
 —
 (8) —
 —
 —
 (8)
Dividends to noncontrolling interests on subsidiary common stock —
—
 —
 —
 —
 —
 —
 —
 —
 (1) (1)
Contribution from noncontrolling interest —
—
 —
 —
 —
 —
 —
 —
 —
 1
 1
Share-based compensation expense —
—
 —
 —
 —
 4
 —
 —
 —
 —
 4
Impact of adoption of new accounting standards —
—
 —
 —
 —
 —
 21
 (21) —
 —
 —
Issuance of common shares, including stock dividends —
—
 —
 357,980
 —
 2
 (1) —
 —
 —
 1
Balance, March 31, 2019 $421
6,899,683
 $690
 141,469,061
 $1
 $5,284
 $8,045
 $(7,000) $(920) $204
 $6,304
 Convertible
Preference Shares		Common Shares
 Redeemable
Non-
Controlling
Interests		SharesAmountSharesAmountAdditional
Paid-in
Capital		Retained
Earnings		Accumulated
Other
Comprehensive
Income (Loss)		Treasury
Shares		Non-
Controlling
Interests		Total
Equity
Balance, January 1, 2020$397  6,899,683  $690  141,813,142  $1  $5,329  $6,437  $(5,624) $(920) $117  $6,030  
Net income (loss)(9) —  —  —  —  —  332  —  —  6  338  
Other comprehensive income (loss)(1) —  —  —  —  —  —  (891) —  (3) (894) 
Redemption value adjustment10  —  —  —  —  —  (10) —  —  —  (10) 
Dividends on common shares, $1.00 per share—  —  —  —  —  —  (142) —  —  —  (142) 
Dividends on preference shares, $2.4375 per share—  —  —  —  —  —  (17) —  —  —  (17) 
Dividends to noncontrolling interests on subsidiary common stock—  —  —  —  —  —  —  —  —  (4) (4) 
Acquisition of noncontrolling interest—  —  —  —  —  —  (17) —  —  —  (17) 
Share-based compensation expense—  —  —  —  —  27  —  —  —  —  27  
Repurchase of common shares—  —  —  (2,546,000) —  —  —  —  (100) —  (100) 
Issuance of common shares, including stock dividends—  —  —  372,876  —  —  (2) —  —  —  (2) 
Balance, June 30, 2020$397  6,899,683  $690  139,640,018  $1  $5,356  $6,581  $(6,515) $(1,020) $116  $5,209  

 Convertible
Preference Shares		Common Shares
 Redeemable
Non-
Controlling
Interests		SharesAmountSharesAmountAdditional
Paid-in
Capital		Retained
Earnings		Accumulated
Other
Comprehensive
Income (Loss)		Treasury
Shares		Non-
Controlling
Interests		Total
Equity
Balance, January 1, 2019$424  6,899,683  $690  141,111,081  $1  $5,278  $8,059  $(6,935) $(920) $205  $6,378  
Net income (loss)4  —  —  —  —  —  259  —  —  (1) 258  
Other comprehensive income (loss)(3) —  —  —  —  —  —  37  —  1  38  
Dividends on common shares, $1.00 per share—  —  —  —  —  —  (142) —  —  —  (142) 
Dividends on preference shares, $2.4375 per share—  —  —  —  —  —  (17) —  —  —  (17) 
Dividends to noncontrolling interests on subsidiary common stock—  —  —  —  —  —  —  —  —  (12) (12) 
Contribution from noncontrolling interest—  —  —  —  —  —  —  —  —  1  1  
Share-based compensation expense—  —  —  —  —  17  —  —  —  —  17  
Impact of adoption of new accounting standards—  —  —  —  —  —  21  (21) —  —  —  
Issuance of common shares, including stock dividends—  —  —  422,641  —  5  (1) —  —  —  4  
Balance, June 30, 2019$425  6,899,683  $690  141,533,722  $1  $5,300  $8,179  $(6,919) $(920) $194  $6,525  


The accompanying notes are an integral part of these condensed consolidated financial statements.

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BUNGE LIMITED AND SUBSIDIARIES
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1.BASIS OF PRESENTATION, PRINCIPLES OF CONSOLIDATION, AND SIGNIFICANT ACCOUNTING POLICIES
1. BASIS OF PRESENTATION, PRINCIPLES OF CONSOLIDATION, AND SIGNIFICANT ACCOUNTING POLICIES
The accompanying unaudited condensed consolidated financial statements include the accounts of Bunge Limited (“Bunge” or the "Company"), its subsidiaries and variable interest entities (“VIEs”) in which Bunge is considered to be the primary beneficiary, and as a result, include the assets, liabilities, revenues and expenses of all entities over which Bunge has a controlling financial interest. The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X under the Securities Exchange Act of 1934, as amended (“Exchange Act”). Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to Securities and Exchange Commission (“SEC”) rules. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation have been included. The condensed consolidated balance sheet at December 31, 2019 has been derived from Bunge’s audited consolidated financial statements at that date. Operating results for the threesix months ended March 31,June 30, 2020 are not necessarily indicative of the results to be expected for the year ending December 31, 2020. The financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2019, forming part of Bunge’s 2019 Annual Report on Form 10-K filed with the SEC on February 21, 2020.
Effective January 1, 2020, the Company changed its segment reporting to separately disclose Corporate and Other activities from its reporting segments, as further described in Note 20 - Segment Information. Certain reclassifications of prior period amounts within the reporting segments have been made to conform to current presentation.

Cash, Cash Equivalents, and Restricted Cash
Restricted cash is included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the condensed consolidated statement of cash flows. The following table provides a reconciliation of cash and cash equivalents, and restricted cash reported within the condensed consolidated balance sheet that sums to the total of the same such amounts shown in the condensed consolidated statements of cash flows.
(US$ in millions)June 30, 2020June 30, 2019
Cash and cash equivalents$277  $238  
Restricted cash included in other current assets2  10  
Total$279  $248  
(US$ in millions)March 31, 2020March 31, 2019
Cash and cash equivalents$193
$464
Restricted cash included in other current assets2
5
Total$195
$469

2. ACCOUNTING PRONOUNCEMENTS

2.ACCOUNTING PRONOUNCEMENTS
The below outlines new accounting pronouncements issued in 2020, as well updates on certain previously disclosed Accounting Standards Updates ("ASUs").
New Accounting Pronouncements
In March 2020, the Financial Accounting Standards Board ("FASB") issued ASU 2020-04, Reference Rate Reform (Topic 848)- Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burden related to the expected market transition from the London Interbank Offered Rate (LIBOR)("LIBOR") and other interbank offered rates to alternative reference rates. The guidance is effective upon issuance and to be applied prospectively from any date beginning March 12, 2020 through December 31, 2022. The Company is evaluating the impact of this standard on its consolidated financial statements.
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In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740)- Simplifying the Accounting for Income Taxes, which reduces complexity in the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify U.S. GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption of the amendments is permitted. The Company is evaluating the impact of this standard on its consolidated financial statements.
Recently Adopted Accounting Pronouncements
On January 1, 2020 the Company adopted ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), which introduces a new accounting model, referred to as the current expected credit losses ("CECL") model, for estimating credit losses on certain financial instruments and expands the disclosure requirements for estimating such credit losses. Under the new model, an entity is required to estimate the credit losses expected over the life of an exposure (or pool of exposures). The guidance also amends the current impairment model for debt securities classified as available-for-sale securities. The Company adopted the guidance under a modified-retrospective approach with a cumulative effect adjustment to opening retained earnings. The adoption of this standard did not have a material impact on Bunge's consolidated financial statements.

3.PORTFOLIO RATIONALIZATION INITIATIVES
Business Dispositions3. PORTFOLIO RATIONALIZATION INITIATIVES
Brazilian Margarine and Mayonnaise Disposition
On December 20, 2019, Bunge announced that it has entered into an agreement to sell its margarine and mayonnaise assets in Brazil. The transaction includes 3 production plants and brands used for these 2 products.certain related brands. The completion of the sale is subject to regulatory approval and is expected to close in the second half of 2020. In connection with this agreement, the Company has classified the assets and liabilities to be sold, which are reported under the Edible Oil Products segment, as held for sale in its condensed consolidated financial statements as of March 31,June 30, 2020 and December 31, 2019. The following table presents the disposal group's major classes of assets and liabilities included in Assets held for sale and Liabilities held for sale, respectively, in the condensed consolidated balance sheets at June 30, 2020 and December 31, 2019:
(US$ in millions)June 30,
2020		December 31,
2019
Inventories$16  $19  
Property, plant, and equipment, net32  49  
Other intangible assets, net3  4  
Assets held for sale$51  $72  
Other current liabilities$4  $4  
Liabilities held for sale$4  $4  
US Grain Disposition
On April 21, 2020, Bunge announced that it has entered into an agreement to sell a portfolio of interior grain elevators located in the United States to Zen-Noh Grain Corporation in exchange for cash proceeds of $300 million, subject to customary closing adjustments. The completion of the sale is subject to customary closing conditions, including regulatory approval, and it is expected to close either in the last quarter of 2020 or the first quarter of 2021. In connection with this agreement, the Company has classified the assets and liabilities to be sold, which are reported under the Agribusiness segment, as held for sale in its condensed consolidated financial statements as of June 30, 2020. The following table presents the disposal group's major classes of assets and liabilities included in Assets held for sale and Liabilities held for sale, respectively, on the Condensed Consolidated Balance Sheetscondensed consolidated balance sheets at March 31, 2020 and December 31, 2019:June 30, 2020:
(US$ in millions)March 31,
2020		December 31,
2019
Inventories$15
$19
Property, plant, and equipment, net33
49
Other intangible assets, net3
4
Assets held for sale$51
$72
   
Other current liabilities$3
$4
Liabilities held for sale$3
$4
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(US$ in millions)June 30,
2020
Inventories$99 
Other current assets11 
Property, plant, and equipment, net124 
Operating lease assets6 
Goodwill5 
Assets held for sale$245 
Trade accounts payable$130 
Current operating lease obligations1 
Other current liabilities10 
Non-current operating lease obligations5 
Liabilities held for sale$146 


4.  LEASES
The Company routinely leases storage facilities, transportation equipment, land, and office facilities that are typically classified as operating leases. The accounting for some of the Company's leases may require significant judgment when determining whether a contract is or contains a lease, the lease term, and the likelihood of renewal or termination options. Leases with an initial term of more than 12 months are recognized on the balance sheet as right-of-use assets (Operating lease assets) and lease liabilities for the obligation to make payments under such leases (Current operating lease obligations and Non-current operating lease obligations). As of the lease commencement date, the lease liability is initially measured as the present value of lease payments not yet paid. The lease asset is initially measured equal to the lease liability and adjusted for lease payments made at or before lease commencement (e.g., prepaid rent), lease incentives, and any initial direct costs. Over time, the lease liability is reduced for lease payments made and the lease asset is reduced through expense, classified as either Cost of goods sold or Selling, general and administrative expense, depending upon the nature of the lease. Lease assets are subject to review for impairment in a manner consistent with Property, plant and equipment. Leases with an initial term of 12 months or less (“short-term leases”) are not recorded on the balance sheet, and lease expense for these short-term leases is recognized on a straight-line basis over the lease term.

The Company’s leases range in length of term, with an average remaining leaselease term of 5.14.9 years, but withwith certain land leases continuing for up to 92 years. Additionally, certain leases contain renewal options that can extend the lease term up to an additional 5 years. Renewal options are generally exercisable solely at the Company’s discretion. When a renewal option is reasonably certain to be exercised, such additional terms are considered when calculating the associated operating lease asset and liability. When determining the lease liability at commencement of the lease, the present value of lease payments is based on the Company’s incremental borrowing rate determined using a portfolio approach and the Company’s incremental cost of debt, adjusted to arrive toat the rate in the applicable countrycountry and for the applicable term of the lease, as the rate implicit in the lease is generally not readily determinable. As of March 31,June 30, 2020, this weighted average discount rate was 4.5%4.4%.
Certain of the Company’s freight supply agreements for ocean freight vessels and rail cars may include rental payments that are variable in nature. Variable payments on time charter agreements for ocean freight vessels under freight supply agreements are dependent on then-current market daily hire rates. Variable payments for certain rail cars can be based on volumes, and in some cases, benchmark interest rates. All such variable payments are not included in the calculation of the associated operating lease asset or liability subsequent to the inception date of the associated lease and are recorded as expense in the period in which the adjustment to the variable payment obligation is incurred. Certain of the Company’s lease agreements related to railcars and barges contain residual value guarantees (see Note 16 - Commitments Andand Contingencies). None of the Company’s lease agreements contain material restrictive covenants.



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The components of lease expense were as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
(US$ in millions)2020201920202019
Operating lease cost$67  $80  $131  $160  
Short-term lease cost142  149  291  301  
Variable lease cost2  5  6  8  
Sublease income(14) (20) (28) (50) 
Total lease cost$197  $214  $400  $419  
  Three Months Ended
March 31,
(US$ in millions) 2020 2019
Operating lease cost $64
 $80
Short-term lease cost 149
 152
Variable lease cost 4
 3
Sublease income (14) (30)
Total lease cost $203
 $205


Supplemental cash flow information related to leases was as follows:
  Three Months Ended
March 31,
(US$ in millions) 2020 2019
Cash paid for amounts included in the measurement of lease liabilities:    
       Operating lease liability principal payments $65
 $79
Supplemental non-cash information:    
       Right-of-use assets obtained in exchange for new lease obligations $29
 $70

Six Months Ended
June 30,
(US$ in millions)20202019
Cash paid for amounts included in the measurement of lease liabilities:
       Operating lease liability principal payments$133  $160  
Supplemental non-cash information:
       Right-of-use assets obtained in exchange for new lease obligations$111  $150  
        
Maturities of lease liabilities for operating leases as of March 31,June 30, 2020, are as follows:
(US$ in millions)
Remaining in 2020$130  
2021219  
2022165  
2023123  
202466  
Thereafter115  
Total lease payments (1)
818  
Less imputed interest(90) 
Present value of lease liabilities728  
Less present value of lease liabilities held for sale(5) 
Present value of lease liabilities, as separately presented on the condensed consolidated balance sheet$723  
(US$ in millions) 
Remaining in 2020 $183
2021 203
2022 152
2023 110
2024 55
Thereafter 99
Total lease payments (1)
 802
Less imputed interest 91
Present value of lease liabilities, as separately presented on the condensed consolidated balance sheet $711


(1)Minimum lease payments have not been reduced by minimum sublease income receipts of $24 million due in future periods under non-cancelable subleases. Non-cancelable subleases primarily relate to agreements with third parties for the use of portions of certain facilities with remaining sublease terms of approximately 5 years, as well as an agreement in which the Company subleases rail cars with remaining sublease terms of approximately three to four

(1)  Minimum lease payments have not been reduced by minimum sublease income receipts of $32 million due in future periods under non-cancelable subleases as of June 30, 2020. Non-cancelable subleases primarily relate to agreements with third parties for the use of portions of certain facilities with remaining sublease terms of approximately five years, as well as an agreement in which the Company subleases rail cars with remaining sublease terms of approximately threeyears. Subsequent to the balance sheet date, the majority of these rail car subleases were assigned to a third party, such that minimum sublease income receipts due in future periods under non-cancelable subleases were reduced by approximately $7 million, to $25 million. Additionally, from time to time the Company may enter intointo re-let agreements to sell the right to use ocean freight vessels under time charter agreements when excess capacity is available.

As of March 31,June 30, 2020, the CompanyCompany has additional operating leases for freight supply agreements on ocean freight vessels that have not yet commenced of $182$161 million. These operating leases will commence in 2020 with lease terms of up to eight years.

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5. TRADE STRUCTURED FINANCE PROGRAM
The Company engages in various trade structured finance activities to leverage the value of its global trade flows. These activities include programs under which the Company generally obtains U.S. dollar-denominated letters of credit (“LCs”), each based on an underlying commodity trade flow, from financial institutions and time deposits denominated in either the local currency of the financial institutions' counterparties or in U.S. dollars, as well as foreign exchange forward contracts, and other programs in which trade related payables are set-off against receivables, all of which are subject to legally enforceable set-off agreements.
            As of March 31,June 30, 2020 and December 31, 2019, time deposits and LCs of $3,847$4,301 million and $3,409 million, respectively, wereare presented net on the condensed consolidated balance sheets as the criteria of ASC 210-20, Offsetting, hadhave been met. The net losses and gains related to such activities are included as an adjustment to Cost of goods sold in the accompanying condensed consolidated statements of income. At March 31,June 30, 2020 and December 31, 2019, time deposits, including those presented on a net basis, carried weighted-average interest rates of 2.59%2.35% and 3.10%, respectively. During the threesix months ended March 31,June 30, 2020 and 2019, total net proceeds from issuances of LCs were $1,490$2,651 million and $1,117$2,030 million, respectively. These cash inflows are offset by the related cash outflows resulting from placement of the time deposits and repayment of the LCs. All cash flows related to the programs are included in operating activities in the condensed consolidated statements of cash flows.

6.TRADE ACCOUNTS RECEIVABLE AND TRADE RECEIVABLES SECURITIZATION PROGRAM
6. TRADE ACCOUNTS RECEIVABLE AND TRADE RECEIVABLES SECURITIZATION PROGRAM
Trade Accounts Receivable
Bunge establishes an allowance for lifetime expected credit losses utilizing an aging schedule for each pool of trade accounts receivable. The risk characteristics for each individual receivable were homogenous across the pool of trade accounts receivable and the determination of pools was sufficiently granular to address any differences in risk characteristics. Any receivables that did not share similar risk characteristics were separated into different pools for further analysis. Pools are determined based on risks characteristics such as the type of customer and geography. A default rate is derived using a provision matrix with data based on Bunge's historical receivables information. The default rate is then applied to the pool to determine the allowance for expected credit losses. Given the short term nature of the Company's trade accounts receivable, the default rate is only adjusted if significant changes in the credit profile of the portfolio are identified (e.g., poor crop years, credit issues at the country level, systematic risk), resulting in historic loss rates that are not representative of forecasted losses. Specifically, in establishing appropriate default rates as of March 31,June 30, 2020, the Company took into consideration expected impacts on its customers and other debtors in view of the COVID-19 pandemic, as well as other factors, which did not result in a material impact on the financial statements.

Bunge records and reports accrued interest receivable within the same line item as the related receivable. The allowance for expected credit losses is estimated on the amortized cost basis of the trade accounts receivable, including accrued interest receivable. Bunge recognizes credit loss expense when establishing an allowance for accrued interest receivable.

Changes to the allowance for lifetime expected credit losses related to trade account receivablesaccounts receivable are as follows:
Rollforward of the Allowance for Credit Losses (US$ in millions)Short-term
Long-term (1)
Total
Allowance as of January 1, 2020$108  $65  $173  
Current period provisions (2)
42  —  42  
Recoveries(21) (2) (23) 
Write-offs charged against the allowance(21) —  (21) 
Foreign exchange translation differences(13) (12) (25) 
Allowance as of June 30, 2020 (2)
$95  $51  $146  
Rollforward of the Allowance for Credit Losses (US$ in millions)Short-term
Long-term (1)
Total
Allowance as of January 1, 2020$108
$65
$173
Current period provisions13
—
13
Write-offs charged against the allowance(1)—
(1)
Foreign exchange translation differences(3)(10)(13)
Allowance as of March 31, 2020$117
$55
$172
(1)  Long-term portion of the allowance for credit losses included in Other non-current assets as of June 30, 2020.
(2) In addition to the above mentioned current period provisions associated with lifetime expected credit losses, at June 30, 2020 the Company was engaged in collection proceedings with a customer in relation to an outstanding account receivable dating from 2015. During the three months ended June 30, 2020, Bunge recorded a $51 million bad debt reserve, within Selling, general and administrative expenses, as well as a $15 million legal provision, within Other income/expense – net, in its condensed consolidated financial statements in relation to the matter. As the litigation is ongoing, it is at least reasonably possible that the estimated amount of the loss will change in the near term.


13
(1)Long-term portion of the allowance for credit losses included in Other non-current assets as of March 31, 2020.
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Trade Receivables Securitization Program
Bunge and certain of its subsidiaries participate in a trade receivables securitization program (the “Program”) with a financial institution, as administrative agent, and certain commercial paper conduit purchasers and committed purchasers that provides for funding of receivables sold into the Program. On February 19, 2019, Bunge exercised a portion of the $300 million accordion feature under the Program to increase the aggregate size of the facility by $100 million from $700 million to an aggregate of $800 million.

(US$ in millions) March 31,
2020		 December 31,
2019
Receivables sold which were derecognized from Bunge's balance sheet $818
 $801
Deferred purchase price included in other current assets $112
 $105

(US$ in millions)June 30,
2020		December 31,
2019
Receivables sold which were derecognized from Bunge's balance sheet$799  $801  
Deferred purchase price included in other current assets$118  $105  

The table below summarizes the cash flows and discounts of Bunge’s trade receivables associated with the Program. Servicing fees under the Program were not significant in any period.
 Three Months Ended
March 31,		Six Months Ended
June 30,
(US$ in millions) 2020 2019(US$ in millions)20202019
Gross receivables sold $2,634
 $2,258
Gross receivables sold$4,942  $4,663  
Proceeds received in cash related to transfer of receivables $2,485
 $2,101
Proceeds received in cash related to transfer of receivables$4,759  $4,469  
Cash collections from customers on receivables previously sold $2,341
 $1,875
Cash collections from customers on receivables previously sold$4,389  $3,846  
Discounts related to gross receivables sold included in SG&A $3
 $4
Discounts related to gross receivables sold included in SG&A$6  $8  


Non-cash activity for the program in the reporting period is represented by the difference between gross receivables sold and cash collections from customers on receivables previously sold.

7.INVENTORIES
7. INVENTORIES
Inventories by segment are presented below. Readily marketable inventories (“RMI”) are agricultural commodity inventories, such as soybeans, soybean meal, soybean oil, corn, and wheat carried at fair value because of their commodity characteristics, widely available markets, and international pricing mechanisms. The Company engages in trading and distribution, or merchandising activities, and part of RMI can be attributable to such activities and is not held for processing. All other inventories are carried at lower of cost or net realizable value.
(US$ in millions)June 30,
2020		December 31,
2019
Agribusiness (1)
$4,903  $4,002  
Edible Oil Products (2)
777  770  
Milling Products216  194  
Sugar and Bioenergy (3)
6  6  
Fertilizer105  66  
Total$6,007  $5,038  
(1)Includes RMI of $4,712 million and $3,796 million at June 30, 2020 and December 31, 2019, respectively.  Assets held for sale includes RMI of $99 million and 0 at June 30, 2020 and December 31, 2019, respectively (see Note 3 - Portfolio Rationalization Initiatives). Of these amounts, $3,841 million and $2,589 million can be attributable to merchandising activities at June 30, 2020 and December 31, 2019, respectively.
(2) Includes RMI of $89 million and $133 million at June 30, 2020 and December 31, 2019, respectively.
(3) Includes RMI of $6 million and $5 million at June 30, 2020 and December 31, 2019, respectively.
14
(US$ in millions) March 31,
2020		 December 31,
2019
Agribusiness (1)
 $4,411
 $4,002
Edible Oil Products (2)
 735
 770
Milling Products 209
 194
Sugar and Bioenergy (3)
 7
 6
Fertilizer 89
 66
Total $5,451
 $5,038
(1)Includes RMI of $4,170 million and $3,796 million at March 31, 2020 and December 31, 2019, respectively.  Of these amounts, $3,083 million and $2,589 million can be attributable to merchandising activities at March 31, 2020 and December 31, 2019, respectively.
(2)Includes RMI of $103 million and $133 million at March 31, 2020 and December 31, 2019, respectively.
(3)Includes RMI of $6 million and $5 million at March 31, 2020 and December 31, 2019, respectively.

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8.OTHER CURRENT ASSETS

8. OTHER CURRENT ASSETS
Other current assets consist of the following:
(US$ in millions)June 30,
2020		December 31,
2019
Unrealized gains on derivative contracts, at fair value$1,328  $927  
Prepaid commodity purchase contracts (1)
378  153  
Secured advances to suppliers, net (2)
202  346  
Recoverable taxes, net316  476  
Margin deposits372  285  
Marketable securities, at fair value, and other short-term investments321  393  
Deferred purchase price receivable(3)
118  105  
Income taxes receivable11  37  
Prepaid expenses127  221  
Other189  170  
Total$3,362  $3,113  
(US$ in millions) March 31,
2020		 December 31,
2019
Unrealized gains on derivative contracts, at fair value $1,639
 $927
Prepaid commodity purchase contracts (1)
 198
 153
Secured advances to suppliers, net (2)
 299
 346
Recoverable taxes, net 339
 476
Margin deposits 486
 285
Marketable securities, at fair value, and other short-term investments 284
 393
Deferred purchase price receivable(3)
 112
 105
Income taxes receivable 24
 37
Prepaid expenses 221
 221
Other 187
 170
Total $3,789
 $3,113
(1)Prepaid commodity purchase contracts represent advance payments against contracts for future delivery of specified quantities of agricultural commodities.
(1)Prepaid commodity purchase contracts represent advance payments against contracts for future delivery of specified quantities of agricultural commodities.
(2)The Company provides cash advances to suppliers, primarily Brazilian farmers of soybeans, to finance a portion of the suppliers’ production costs.  The Company does not bear any of the costs or operational risks associated with the related growing crops.  The advances are largely collateralized by future crops and physical assets of the suppliers, carry a local market interest rate, and settle when the farmers' crops are harvested and sold.  The secured advances to farmers are reported net of allowances of $1 million at March 31, 2020 and $1 million at December 31, 2019.
(2) The Company provides cash advances to suppliers, primarily Brazilian farmers of soybeans, to finance a portion of the suppliers’ production costs. The Company does not bear any of the costs or operational risks associated with the related growing crops. The advances are largely collateralized by future crops and physical assets of the suppliers, carry a local market interest rate, and settle when the farmers' crops are harvested and sold. The secured advances to farmers are reported net of allowances of $1 million at June 30, 2020 and $1 million at December 31, 2019.
Interest earned on secured advances to suppliers of $12$6 million and $7 million for each of the three months ended March 31,June 30, 2020 and 2019, and $18 million and $13 million for the six months ended June 30, 2020 and 2019, respectively, is included in netNet sales in the condensed consolidated statements of income.
(3)
(3) Deferred purchase price receivable represents additional credit support for the investment conduits in the Company’s trade receivables securitization program (see Note 6 - Trade Accounts Receivable and Trade Receivable Securitization Program).
Marketable Securities and Other Short-Term Investments - The Company invests in foreign government securities, corporate debt securities, deposits, equity securities, and other securities. The following is a summary of amounts recorded in the Company's condensed consolidated balance sheets as marketable securities and other short-term investments.
(US$ in millions) March 31,
2020		 December 31,
2019
Foreign government securities $145
 $212
Corporate debt securities 124
 161
Equity securities 9
 14
Other 6
 6
Total $284
 $393

(US$ in millions)June 30,
2020		December 31,
2019
Foreign government securities$190  $212  
Corporate debt securities130  161  
Equity securities—  14  
Other1  6  
Total$321  $393  
As of March 31,June 30, 2020 and December 31, 2019, $278$320 million and $387 million, respectively, of marketable securities and other short-term investments are recorded at fair value. All other investments are recorded at cost, and due to the short-term nature of these investments, their carrying values approximate fair values.value. For the three months ended March 31,June 30, 2020 and 2019, unrealized lossesgains of $16$21 million and $154 million, respectively have been recorded and recognized in Other income (expense) - net for investments still held at March 31, 2020.June 30, 2020 and 2019. For the six months ended June 30, 2020 and 2019, unrealized gains of $12 million and $159 million, respectively have been recorded and recognized in Other income (expense) - net for investments held at June 30, 2020 and 2019.

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9. OTHER NON-CURRENT ASSETS
Other non-current assets consist of the following:
(US$ in millions)June 30,
2020		December 31,
2019
Recoverable taxes, net (1)
$63  $48  
Judicial deposits (1)
68  106  
Other long-term receivables4  6  
Income taxes receivable
181  208  
Long-term investments99  83  
Affiliate loans receivable18  29  
Long-term receivables from farmers in Brazil, net (1)
46  69  
Other188  129  
Total$667  $678  
(US$ in millions) March 31,
2020		 December 31,
2019
Recoverable taxes, net (1)
 $68
 $48
Judicial deposits (1)
 85
 106
Other long-term receivables 4
 6
Income taxes receivable 
 187
 208
Long-term investments 88
 83
Affiliate loans receivable 18
 29
Long-term receivables from farmers in Brazil, net (1)
 87
 69
Other 185
 129
Total $722
 $678
(1) These non-current assets arise primarily from the Company’s Brazilian operations and their realization could take several years.
(1)These non-current assets arise primarily from the Company’s Brazilian operations and their realization could take several years.
Recoverable taxes, net - Recoverable taxes are reported net of allowancesallowances of $31$30 million and $41 million at March 31,June 30, 2020 and December 31, 2019, respectively.
Judicial deposits - Judicial deposits are funds the Company has placed on deposit with the courts in Brazil. These funds are held in judicial escrow relating to certain legal proceedings pending resolution and bear interest at the SELICSelic rate, which is the benchmark rate of the Brazilian central bank.
Income taxes receivable - Income taxes receivable include overpayments of current income taxes plus accrued interest. These income tax prepayments are expected to be primarily utilized for settlement of future income tax obligations. Income taxes receivable in Brazil bear interest at the SELICSelic rate.
Affiliate loans receivable - Affiliate loans receivable are primarily interest-bearing receivables from unconsolidated affiliates with a remaining maturity of greater than one year.
Long-term receivables from farmers in Brazil, net - The Company provides financing to farmers in Brazil, primarily through secured advances against farmer commitments to deliver agricultural commodities (primarily soybeans) upon harvest of the then-current year’s crop and through credit sales of fertilizer to farmers. Certain such long-term receivables from farmers are originally recorded in other current assets as prepaid commodity contracts or secured advances to suppliers (see Note 8 - Other Current Assets) and reclassified to other non-current assets when collection issues with farmers arise and amounts become past due with resolution of such matters expected to take more than one year.

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The average recorded investment in long-term receivables from farmers in Brazil for the threesix months ended March 31,June 30, 2020 and the year ended December 31, 2019 was $168was $159 million and and $186 million, respectively. The table below summarizes the Company’s recorded investment in long-term receivables from farmers in Brazil and the related allowance amounts.
 June 30, 2020December 31, 2019
(US$ in millions)Recorded
Investment		AllowanceRecorded
Investment		Allowance
For which an allowance has been provided:    
Legal collection process (1)
$65  $56  $95  $85  
Renegotiated amounts8  8  11  11  
For which no allowance has been provided:    
Legal collection process (1)
33  —  50  —  
Renegotiated amounts (2)
4  —  5  —  
Other long-term receivables—  —  4  —  
Total$110  $64  $165  $96  
  March 31, 2020 December 31, 2019
(US$ in millions) 
Recorded
Investment
 Allowance 
Recorded
Investment
 Allowance
For which an allowance has been provided:  
  
  
  
Legal collection process (1)
 $71
 $60
 $95
 $85
Renegotiated amounts 8
 8
 11
 11
For which no allowance has been provided:  
  
  
  
Legal collection process (1)
 37
 —
 50
 —
Renegotiated amounts (2)
 4
 —
 5
 —
Other long-term receivables 35
 —
 4
 —
Total $155
 $68
 $165
 $96

(1) All amounts in legal process are considered past due upon initiation of legal action.
(1)All amounts in legal process are considered past due upon initiation of legal action.
(2)All renegotiated amounts are current on repayment terms.
(2) These renegotiated amounts are current on repayment terms.
The table below summarizes the activity in the allowance for doubtful accounts related to long-term receivables from farmers in Brazil.
Three Months Ended
June 30,		Six Months Ended
June 30,
(US$ in millions)2020201920202019
Beginning balance$68  $105  $96  $106  
Bad debt provisions2  —  4  1  
Recoveries(1) (4) (9) (5) 
Foreign exchange translation(5) 2  (27) 1  
Ending balance$64  $103  $64  $103  
  Three Months Ended
March 31,
(US$ in millions) 2020 2019
Beginning balance $96
 $106
Bad debt provisions 2
 1
Recoveries (8) (1)
Foreign exchange translation (22) (1)
Ending balance $68
 $105


10. INCOME TAXES
10.INCOME TAXES
Income tax expense is provided on an interim basis based on management’s estimate of the annual effective income tax rate and includes the tax effects of certain discrete items, such as changes in tax laws or tax rates or other unusual or non-recurring tax adjustments in the interim period in which they occur. In addition, results from jurisdictions projecting a loss for the year where no tax benefit can be recognized are treated discretely in the interim period in which they occur. The effective tax rate is highly dependent on the geographic distribution of the Company’s worldwide earnings or losses and tax regulations in each jurisdiction. Management regularly monitors the assumptions used in estimating its annual effective tax rate and adjusts estimates accordingly, including the realizability of deferred tax assets. Volatility in earnings within a taxing jurisdiction could result in a determination that additional valuation allowance adjustments may be warranted.
Income tax benefit related to continuing operationsexpense was $168 million and $113 million for the three and six months ended March 31,June 30, 2020, was $55 million,respectively, and income tax expense related to continuing operationswas $60 million and $98 million for the three and six months ended March 31,June 30, 2019, was $38 million. The tax benefit for the three months ended March 31, 2020 is primarily due to an overall pretax loss.  respectively. The effective tax raterates for each of the three monthsand six month periods ended March 31, June 30, 2020 is materially consistent with the U.S. statutory rate of 21%. The effective tax rate for the three months ended March 31,and 2019 waswere higher than the U.S. statutory rate of 21% primarily due to an unfavorable earnings mix associated with pretax losses in certain jurisdictions.
As a global enterprise, the Company files income tax returns that are subject to periodic examination and challenge by federal, state and foreign tax authorities. In many jurisdictions, income tax examinations, including settlement negotiations or litigation, may take several years to finalize. The Company is currently under examination or litigation in various locations throughout the world. While it is difficult to predict the outcome or timing of resolution of any particular matter, management

believes that the condensed consolidated financial statements reflect the largest amount of tax benefit that is more likely than not to be realized.

11.OTHER CURRENT LIABILITIES
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11. OTHER CURRENT LIABILITIES
Other current liabilities consist of the following:
(US$ in millions)June 30,
2020		December 31,
2019
Unrealized losses on derivative contracts, at fair value$1,115  $766  
Accrued liabilities464  602  
Advances on sales322  411  
Other566  476  
Total$2,467  $2,255  
(US$ in millions) March 31,
2020		 December 31,
2019
Unrealized losses on derivative contracts, at fair value $1,961
 $766
Accrued liabilities 400
 602
Advances on sales 325
 411
Other 503
 476
Total $3,189
 $2,255


12.FAIR VALUE MEASUREMENTS
12. FAIR VALUE MEASUREMENTS
Bunge's various financial instruments include certain components of working capital such as trade accounts receivable and trade accounts payable. Additionally, Bunge uses short and long-term debt to fund operating requirements. Trade accounts receivable, trade accounts payable, and short-term debt are stated at their carrying value, which is a reasonable estimate of fair value. See Note 5 - Trade Structured Finance Program for trade structured finance program, Note 9 - Other Non-Current Assets for long-term receivables from farmers in Brazil, net and other long-term investments, and Note 14 - Debt for long-term debt. Bunge's financial instruments also include derivative instruments and marketable securities, which are stated at fair value.
The fair value standard describes three levels within its hierarchy that may be used to measure fair value.
LevelDescriptionFinancial Instrument (Assets / Liabilities)
Level 1Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Exchange traded derivative contracts.


Marketable securities in active markets.
Level 2Observable inputs, including adjusted Level 1 quotes, quoted prices for similar assets or liabilities, quoted prices in markets that are less active than traded exchanges and other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Exchange traded derivative contracts (less liquid market).


Readily marketable inventories.


Over-the-counter (‘‘OTC’’) commodity purchase and sale contracts.


OTC derivatives whose value is determined using pricing models with inputs that are generally based on exchange traded prices, adjusted for location specific inputs that are primarily observable in the market or can be derived principally from or corroborated by observable market data.


Marketable securities in less active markets.
Level 3Unobservable inputs that are supported by little or no market activity and that are a significant component of the fair value of the assets or liabilities.
Assets and liabilities whose value is determined using proprietary pricing models, discounted cash flow methodologies or similar techniques.


Assets and liabilities for which the determination of fair value requires significant management judgment or estimation.

In many cases, a valuation technique used to measure fair value includes inputs from multiple levels of the fair value hierarchy. The lowest level of input that is a significant component of the fair value measurement determines the placement of the entire fair value measurement in the hierarchy. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the classification of fair value assets and liabilities within the fair value hierarchy levels.
For a further definition of fair value and the associated fair value levels, refer to Note 15 - Fair Value Measurements, included in the Company's 2019 Annual Report on Form 10-K.

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Table of Contents
The following table sets forth, by level, the Company’s assets and liabilities that were accounted for at fair value on a recurring basis.
 Fair Value Measurements at Reporting Date
 June 30, 2020December 31, 2019
(US$ in millions)Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets:        
Readily marketable inventories(1) (Note 7)
$—  $4,310  $596  $4,906  $—  $3,703  $231  $3,934  
Trade accounts receivable (2)
—  1  —  1  —  —  —  —  
Unrealized gain on derivative contracts (3):
1      
Interest rate—  110  —  110  —  45  —  45  
Foreign exchange—  376  —  376  —  331  —  331  
Commodities44  827  13  884  34  481  9  524  
Freight36  —  3  39  10  —  —  10  
Energy34  —  —  34  56  —  —  56  
Credit—  1  —  1  —  —  —  —  
Other (4)
24  307  —  331  47  370  —  417  
Total assets$138  $5,932  $612  $6,682  $147  $4,930  $240  $5,317  
Liabilities:        
Trade accounts payable (5)
$—  $427  $133  $560  $—  $347  $31  $378  
Unrealized loss on derivative contracts (6):
        
Interest rate—  16  —  16  —  4  —  4  
Foreign exchange—  629  —  629  —  257  —  257  
Commodities46  340  28  414  49  388  31  468  
Freight33  —  1  34  10  —  —  10  
Energy31  —  —  31  26  —  2  28  
Total liabilities$110  $1,412  $162  $1,684  $85  $996  $64  $1,145  
(1)  
 Fair Value Measurements at Reporting Date
 March 31, 2020 December 31, 2019
(US$ in millions)Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Assets: 
  
  
  
  
  
  
  
Readily marketable inventories (Note 7)$—
 $3,660
 $619
 $4,279
 $—
 $3,703
 $231
 $3,934
Trade accounts receivable (1)
—

19

—

19
 —

—

—

—
Unrealized gain on derivative contracts (2):
  1  
  
  
  
  
  
Interest rate—
 103
 —
 103
 —
 45
 —
 45
Foreign exchange—
 494
 —
 494
 —
 331
 —
 331
Commodities36
 1,019
 18
 1,073
 34
 481
 9
 524
Freight21
 —
 1
 22
 10
 —
 —
 10
Energy47
 —
 —
 47
 56
 —
 —
 56
Other (3)
51
 244
 —
 295
 47
 370
 —
 417
Total assets$155
 $5,539
 $638
 $6,332
 $147
 $4,930
 $240
 $5,317
Liabilities: 
  
  
  
  
  
  
  
Trade accounts payable (4)
$—
 $384
 $261
 $645
 $—
 $347
 $31
 $378
Unrealized loss on derivative contracts (5):
 
  
  
  
  
  
  
  
Interest rate—
 17
 —
 17
 —
 4
 —
 4
Foreign exchange—
 1,162
 —
 1,162
 —
 257
 —
 257
Commodities57
 590
 33
 680
 49
 388
 31
 468
Freight21
 —
 2
 23
 10
 —
 —
 10
Energy89
 1
 —
 90
 26
 —
 2
 28
Equity—

—

—

—
 —

—

—

—
Total liabilities$167
 $2,154
 $296
 $2,617
 $85
 $996
 $64
 $1,145

At June 30, 2020, there were RMI totaling $99 million included in Assets held for sale.
(1)These receivables are financial instruments for which Bunge has elected the fair value option.
(2)Unrealized gains on derivative contracts are generally included in other current assets. There were $100 million and $39 million included in other non-current assets at March 31, 2020 and December 31, 2019, respectively.
(3)Other includes the fair values of marketable securities and investments in other current assets and other non-current assets.
(4)These payables are hybrid financial instruments for which the Company has elected the fair value option.
(5)Unrealized losses on derivative contracts are generally included in other current liabilities. There are $12 million and $1 million included in other non-current liabilities at March 31, 2020 and December 31, 2019, respectively.
(2)  These receivables are hybrid financial instruments for which Bunge has elected the fair value option.
(3)  Unrealized gains on derivative contracts are generally included in Other current assets. There were $106 million and $39 million included in Other non-current assets at June 30, 2020 and December 31, 2019, respectively. At June 30, 2020 and December 31, 2019, there were $11 million and 0, respectively, included in Assets held for sale.
(4) Other includes the fair values of marketable securities and investments in Other current assets and Other non-current assets.
(5) These payables are hybrid financial instruments for which the Company has elected the fair value option. At June 30, 2020 and December 31, 2019, there were $46 million and 0, respectively, included in Assets held for sale.
(6) Unrealized losses on derivative contracts are generally included in Other current liabilities. There are $1 million included in Other non-current liabilities at both June 30, 2020 and December 31, 2019, respectively. At June 30, 2020 and December 31, 2019, there were $7 million and 0, respectively, included in Assets held for sale.
Readily marketable inventories—RMI reported at fair value are valued based on commodity futures exchange quotations, broker or dealer quotations, or market transactions in either listed or OTC markets with appropriate adjustments for differences in local markets where the Company's inventories are located. In such cases, the inventory is classified within Level 2. Certain inventories may utilize significant unobservable data related to local market adjustments to determine fair value. In such cases, the inventory is classified as Level 3.
If the Company used different methods or factors to determine fair values, amounts reported as unrealized gains and losses on derivative contracts and RMI at fair value in the condensed consolidated balance sheets and condensed consolidated statements of income could differ. Additionally, if market conditions change subsequent to the reporting date, amounts reported in future periods as unrealized gains and losses on derivative contracts and RMI at fair value in the condensed consolidated balance sheets and condensed consolidated statements of income could differ.
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Derivatives—The majority of exchange traded futures and options contracts and exchange cleared contracts are valued based on unadjusted quoted prices in active markets and are classified within Level 1. The majority of the Company’s exchange-traded agricultural commodity futures are cash-settled on a daily basis and, therefore, are not included in these tables. The Company's forward commodity purchase and sale contracts are classified as derivatives along with other OTC derivative

instruments relating primarily to freight, energy, foreign exchange and interest rates, and are classified within Level 2 or Level 3 as described below. The Company estimates fair values based on exchange quoted prices, adjusted as appropriate for differences in local markets. These differences are generally valued using inputs from broker or dealer quotations, or market transactions in either the listed or OTC markets. In such cases, these derivative contracts are classified within Level 2.
OTC derivative contracts include swaps, options and structured transactions that are generally fair valued using quantitative models that require the use of multiple market inputs including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets which are not highly active, other observable inputs relevant to the asset or liability, and market inputs corroborated by correlation or other means. These valuation models include inputs such as interest rates, prices and indices to generate continuous yield or pricing curves and volatility factors. Where observable inputs are available for substantially the full term of the asset or liability, the instrument is categorized in Level 2. Certain OTC derivatives trade in less active markets with less availability of pricing information and certain structured transactions can require internally developed model inputs that might not be observable in or corroborated by the market.
Level 3 Measurements
The following relates to Level 3 measurements. An instrument may transfer into or out of Level 3 due to inputs becoming either observable or unobservable.
Level 3 Readily marketable inventories and other—The significant unobservable inputs resulting in Level 3 classification for RMI, physically settled forward purchase and sale contracts, trade accounts receivable, and trade accounts payable, relate to certain management estimations regarding costs of transportation and other local market or location-related adjustments, primarily freight related adjustments in the interior of Brazil and the lack of market corroborated information in Canada. In both situations, the Company uses proprietary information such as purchase and sale contracts and contracted prices to value freight, premiums and discounts in its contracts. Movements in the priceprices of these unobservable inputs alone would not have a material effect on the Company's financial statements as these contracts do not typically exceed one future crop cycle.
Level 3 Derivatives—Level 3 derivative instruments utilize both market observable and unobservable inputs within the fair value measurements. These inputs include commodity prices, price volatility, interest rates, volumes and locations.
The tables below present reconciliations for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three and six months ended March 31,June 30, 2020 and 2019. These instruments were valued using pricing models that management believes reflect the assumptions that would be used by a marketplace participant.
 Three Months Ended March 31, 2020Three Months Ended June 30, 2020
(US$ in millions) Readily
Marketable
Inventories		 Derivatives,
Net		 Trade
Accounts
Payable		 Total(US$ in millions)Readily
Marketable
Inventories		Derivatives,
Net		Trade
Accounts
Payable		Total
Balance, January 1, 2020 $231
 $(24) $(31) $176
Balance, April 1, 2020Balance, April 1, 2020$619  $(16) $(261) $342  
Total gains and losses (realized/unrealized) included in cost of goods sold (1)
 164
 14
 4
 182
Total gains and losses (realized/unrealized) included in cost of goods sold (1)
150  (10) 9  149  
Purchases 678
 1
 (236) 443
Purchases668  —  (42) 626  
Sales (627) —
 —
 (627)Sales(970) —  —  (970) 
Issuances —
 (2) —
 (2)Issuances—  —  —  —  
Settlements —
 (18) 61
 43
Settlements—  18  107  125  
Transfers into Level 3 271
 3
 (59) 215
Transfers into Level 3277  7  (13) 271  
Transfers out of Level 3 (98) 10
 —
 (88)Transfers out of Level 3(148) (12) 67  (93) 
Balance, March 31, 2020 $619
 $(16) $(261) $342
Balance, June 30, 2020Balance, June 30, 2020$596  $(13) $(133) $450  
(1) Readily marketable inventories, derivatives, net and trade accounts payable, include gains/(losses) of $73$96 million, $13$(9) million and $5$8 million, respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at March 31,June 30, 2020.

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Table of Contents
Three Months Ended June 30, 2019
(US$ in millions)Readily
Marketable
Inventories		Derivatives,
Net		Trade
Accounts Payable		Total
Balance, April 1, 2019$633  $(2) $(397) $234  
Total gains and losses (realized/unrealized) included in cost of goods sold (1)
145  (9) 7  143  
Purchases626  —  (71) 555  
Sales(764) —  —  (764) 
Issuances—  (1) —  (1) 
Settlements—  —  113  113  
Transfers into Level 3189  (2) (2) 185  
Transfers out of Level 3(57) —  15  (42) 
Balance, June 30, 2019$772  $(14) $(335) $423  
(1) Readily marketable inventories, derivatives, net and trade accounts payable, includes gains/(losses) of $63 million, $(11) million and 0, respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at June 30, 2019.
Six Months Ended June 30, 2020
(US$ in millions)Readily
Marketable
Inventories		Derivatives,
Net		Trade
Accounts
Payable		Total
Balance, January 1, 2020$231  $(24) $(31) $176  
Total gains and losses (realized/unrealized) included in cost of goods sold (1)
314  3  14  331  
Purchases1,346  2  (278) 1,070  
Sales(1,596) —  —  (1,596) 
Issuances—  (2) —  (2) 
Settlements—  —  168  168  
Transfers into Level 3547  10  (73) 484  
Transfers out of Level 3(246) (2) 67  (181) 
Balance, June 30, 2020$596  $(13) $(133) $450  
(1) Readily marketable inventories, derivatives, net and trade accounts payable, include gains/(losses) of $169 million, $5 million and $13 million, respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at June 30, 2020.
Six Months Ended June 30, 2019
(US$ in millions)Readily
Marketable
Inventories		Derivatives,
Net		Trade
Accounts
Payable		Total
Balance, January 1, 2019$246  $(6) $(47) $193  
Total gains and losses (realized/unrealized) included in cost of goods sold (1)
183  (7) 12  188  
Purchases1,325  —  (432) 893  
Sales(1,334) —  —  (1,334) 
Issuances—  (1) —  (1) 
Settlements—  —  145  145  
Transfers into Level 3465  —  (28) 437  
Transfers out of Level 3(113) —  15  (98) 
Balance, June 30, 2019$772  $(14) $(335) $423  
  Three Months Ended March 31, 2019
(US$ in millions) Readily
Marketable
Inventories		 Derivatives,
Net		 
Trade
Accounts Payable
 Total
Balance, January 1, 2019 $246
 $(6) $(47) $193
Total gains and losses (realized/unrealized) included in cost of goods sold (1)
 37
 2
 5
 44
Purchases 699
 —
 (361) 338
Sales (570) —
 —
 (570)
Settlements —
 1
 (21) (20)
Transfers into Level 3 276
 1
 27
 304
Transfers out of Level 3 (55) —
 —
 (55)
Balance, March 31, 2019 $633
 $(2) $(397) $234
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(1) Readily marketable inventories, derivatives, net and trade accounts payable, include gains/(losses) of $99 million, $(6) million and 0, respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at June 30, 2019.

(1)Readily marketable inventories, derivatives, net and trade accounts payable, includes gains/(losses) of $37 million, $6 million and $5 million, respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at March 31, 2019.
13. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

13.DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
The Company uses derivative instruments to manage several market risks, such as interest rate, foreign currency, and commodity risk. Some of those hedges the Company enters into qualify for hedge accounting in the financial statements (Hedge Accounting Derivatives) and some, while intended as economic hedges, do not qualify or are not designated for hedge accounting (Economic Hedge Derivatives). As these derivatives impact the financial statements in different ways, they are discussed separately below.
Hedge Accounting Derivatives - The Company uses derivatives in qualifying hedge accounting relationships to manage certain of its interest rate, foreign currency, and commodity risks. In executing these hedge strategies, the Company primarily relies on the shortcut and critical terms match methods in designing its hedge accounting strategy, which results in little to no net earnings impact for these hedge relationships. The Company monitors these relationships on a quarterly basis and performs a quantitative analysis to validate the assertion that the hedges are highly effective if there are changes to the hedged item or hedging derivative.
Fair value hedges - These derivatives are used to hedge the effect of interest rate and currency exchange rate changes on certain long-term debt. Under fair value hedge accounting, the derivative is measured at fair value and the carrying value of hedged debt is adjusted for the change in value related to the exposure being hedged, with both adjustments offset to earnings. In other words, the earnings effect of an increase in the fair value of the derivative will be substantially offset by the earnings effect of the increase in the carrying value of the hedged debt. The net impact of fair value hedge accounting for interest rate swaps is recognized in Interest expense. For cross currency swaps the changes in currency risk on the derivative are recognized in Foreign exchange gains (losses), and the changes in interest rate risk are recognized in Interest expense. Changes in basis risk are held in Accumulated other comprehensive income (loss) until realized through the coupon.
Cash flow hedges of currency risk - The Company manages currency risk on certain forecasted purchases, sales, and selling, general and administrative expenses with currency forwards. The change in the value of the forward is held in Accumulated other comprehensive income (loss) until the transaction affects earnings, at which time the change in value of the currency forward is reclassified to Net sales, Cost of goods sold or Selling, general and administrative expenses. These hedges mature at various times through December 2020. Of the amount currently in Accumulated other comprehensive income (loss), $9$(7) million of deferred losses is expected to be reclassified to earnings in the next twelve months.
Net investment hedges - The Company hedges the currency risk of certain of its foreign subsidiaries with currency forwards and intercompany loans for which the currency risk is remeasured through Accumulated other comprehensive income (loss). For currency forwards, the forward method is used. The change in the value of the forward is classified in Accumulated other comprehensive income (loss) until the transaction affects earnings.
The table below provides information about the balance sheet values of hedged items and the notional amount of derivatives used in hedging strategies. The notional amount of the derivative is the number of units of the underlying (for example, the notional principal amount of the debt in an interest rate swap). The notional amount is used to compute interest or

other payment streams to be made under the contract and is a measure of the Company’s level of activity. The Company discloses derivative notional amounts on a gross basis.
(US$ in millions)March 31, 2020December 31, 2019Unit of
Measure
Hedging instrument type:   
Fair value hedges of interest rate risk   
 Carrying value of hedged debt$2,322
$2,279
$ Notional
 Cumulative adjustment to long-term debt from application of hedge accounting$102
$37
$ Notional
 Interest rate swap - notional amount$2,226
$2,249
$ Notional
     
Fair value hedges of currency risk   
 Carrying value of hedged debt$283
$281
$ Notional
 Cross currency swap - notional amount$283
$281
$ Notional
     
Cash flow hedges of currency risk   
 Foreign currency forward - notional amount$—
$99
$ Notional
 Foreign currency option - notional amount$75
$75
$ Notional
     
Net investment hedges   
 Foreign currency forward - notional amount$938
$928
$ Notional
 Carrying value of non-derivative hedging instrument$873
$895
$ Notional
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(US$ in millions)June 30, 2020December 31, 2019Unit of
Measure
Hedging instrument type:
Fair value hedges of interest rate risk
Carrying value of hedged debt$2,349  $2,279  $ Notional
Cumulative adjustment to long-term debt from application of hedge accounting$108  $37  $ Notional
Interest rate swap - notional amount$2,246  $2,249  $ Notional
Fair value hedges of currency risk
Carrying value of hedged debt$285  $281  $ Notional
Cross currency swap - notional amount$285  $281  $ Notional
Cash flow hedges of currency risk
Foreign currency forward - notional amount$201  $99  $ Notional
Foreign currency option - notional amount$50  $75  $ Notional
Net investment hedges
Foreign currency forward - notional amount$1,530  $928  $ Notional
Carrying value of non-derivative hedging instrument$892  $895  $ Notional
Economic Hedge Derivatives - In addition to using derivatives in qualifying hedge relationships, the Company enters into derivatives to economically hedge its exposure to a variety of market risks it incurs in the normal course of operations.
Interest rate derivatives are used to hedge exposures to the Company's financial instrument portfolios and debt issuances. The impact of changes in fair value of these instruments is primarily presented in Interest expense.
Currency derivatives are used to hedge the balance sheet and commercial exposures that arise from the Company's global operations. The impact of changes in fair value of these instruments is presented in Cost of goods sold when hedging commercial exposures and Foreign exchange gains (losses) when hedging monetary exposures.
Agricultural commodity derivatives are used primarily to manage the Company's inventory and forward purchase and sales contracts. Contracts to purchase agricultural commodities generally relate to current or future crop years for delivery periods quoted by regulated commodity exchanges. Contracts for the sale of agricultural commodities generally do not extend beyond one future crop cycle. The impact of changes in fair value of these instruments is presented in Cost of goods sold.
The Company uses derivative instruments referred to as forward freight agreements ("FFA") and FFA options to hedge portions of its current and anticipated ocean freight costs. The impact of changes in fair value of these instruments is presented in Cost of goods sold.
The Company uses energy derivative instruments to manage its exposure to volatility in energy costs. Hedges may be entered into for natural gas, electricity, coal and fuel oil, including bunker fuel. The impact of changes in fair value of these instruments is presented in Cost of goods sold.
The Company may also enter into other derivatives, including credit default swaps and equity derivatives to manage exposure to credit risk and broader macroeconomic risks, respectively. The impact of changes in fair value of these instruments is presented in Cost of goods sold.
The table below summarizes the volume of economic derivatives as of March 31,June 30, 2020 and December 31, 2019. For those contracts traded bilaterally through the OTC markets (e.g., forwards, forward rate agreements ("FRA") and swaps), the gross position is provided. For exchange traded (e.g., futures, FFAs and options) and cleared positions (e.g., energy swaps), the net position is provided.

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 June 30,December 31, 
 20202019Unit of
Measure
Long(Short)Long(Short)
Interest rate    
   Swaps$2,168  $(142) $4,062  $(39) $ Notional
   FRAs$346  $(173) $213  $(418) $ Notional
Currency
   Forwards$10,061  $(13,006) $7,164  $(9,983) $ Notional
   Swaps$393  $(483) $191  $(170) $ Notional
   Futures$—  $(22) $—  $(16) $ Notional
   Options$234  $(241) $132  $(157) Delta
Agricultural commodities
   Forwards33,752,261  (36,812,787) 27,914,141  (25,321,595) Metric Tons
   Swaps—  —  —  (1,114,704) Metric Tons
   Futures—  (8,663,129) —  (1,960,051) Metric Tons
   Options—  (409,554) —  (115,232) Metric Tons
Ocean freight
   FFA6,515  —  —  (133) Hire Days
   FFA options347  —  42  —  Hire Days
Natural gas
   Swaps699,526  —  215,640  —  MMBtus
   Futures10,317,500  —  2,802,500  —  MMBtus
Energy - other
   Forwards5,534,290  —  5,534,290  —  Metric Tons
   Futures933  —  —  —  Metric Tons
   Swaps341,281  —  239,836  —  Metric Tons
Other
Swaps and futures$20  $—  $50  $(14) $ Notional
 March 31,December 31, 
 20202019Unit of
Measure
 Long(Short)Long(Short)
Interest rate 
  
 
 
   Swaps$3,286
$(164)$4,062
$(39)$ Notional
   FRAs$169
$(169)$213
$(418)$ Notional
Currency     
   Forwards$10,187
$(14,926)$7,164
$(9,983)$ Notional
   Swaps$299
$(317)$191
$(170)$ Notional
   Futures$1
$—
$—
$(16)$ Notional
   Options$124
$(165)$132
$(157)Delta
Agricultural commodities     
   Forwards35,030,369
(32,400,559)27,914,141
(25,321,595)Metric Tons
   Swaps193,287
(543,493)—
(1,114,704)Metric Tons
   Futures—
(9,857,392)—
(1,960,051)Metric Tons
   Options110,536
—
—
(115,232)Metric Tons
Ocean freight     
   FFA5,033
—
—
(133)Hire Days
   FFA options397
—
42
—
Hire Days
Natural gas     
   Swaps811,374
—
215,640
—
MMBtus
   Futures9,740,000
—
2,802,500
—
MMBtus
Energy - other     
   Forwards5,534,290
—
5,534,290
—
Metric Tons
   Swaps370,979
—
239,836
—
Metric Tons
Other     
Swaps and futures$10
$—
$50
$(14)$ Notional
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The Effect of Derivative Instruments and Hedge Accounting on the Condensed Consolidated Statements of Income
The tables below summarize the net effect of derivative instruments and hedge accounting on the condensed consolidated statements of income for the three and six months ended March 31,June 30, 2020 and 2019.
  Gain (Loss) Recognized in
Income on Derivative Instruments
  Three Months Ended June 30,
(US$ in millions)20202019
Income statement classificationType of derivative
Net sales
Hedge accountingForeign currency$(5) $1  
Cost of goods sold
   Economic hedgesForeign currency(198) 91  
Commodities265  (244) 
Other (1)
39  —  
     Total Cost of goods sold $106  $(153) 
Interest expense
   Hedge accountingInterest rate$3  $(5) 
   Economic hedgesInterest rate—  (7) 
     Total Interest expense $3  $(12) 
Foreign exchange gains (losses)
   Hedge accountingForeign currency$3  $9  
   Economic hedgesForeign currency(53) (7) 
     Total Foreign exchange gains (losses)$(50) $2  
Other comprehensive income (loss)
Gains and losses on derivatives used as fair value hedges of foreign currency risk included in other comprehensive income (loss) during the period$(3) $3  
Gains and losses on derivatives used as cash flow hedges of foreign currency risk included in other comprehensive income (loss) during the period$(3) $8  
Gains and losses on derivatives used as net investment hedges included in other comprehensive income (loss) during the period$7  $(7) 
Foreign currency gains and losses on intercompany loans used as net investment hedges included in other comprehensive income (loss) during the period$(19) $(12) 
Amounts released from accumulated other comprehensive income (loss) during the period
   Cash flow hedge of foreign currency risk$(3) $1  
(1)  Other includes the results from freight, energy and other derivatives.

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 Gain (Loss) Recognized in
Income on Derivative Instruments		  Gain (Loss) Recognized in
Income on Derivative Instruments
 Three Months Ended March 31,  Six Months Ended June 30,
(US$ in millions) 20202019(US$ in millions)20202019
Income statement classificationType of derivative Income statement classificationType of derivative
Net sales  Net sales
Hedge accountingForeign currency$—
$1
Hedge accountingForeign currency$(5) $2  
  
Cost of goods sold  Cost of goods sold
Economic hedgesForeign currency(917)75
 Economic hedgesForeign currency(1,115) 166  
Commodities721
138
Commodities986  (106) 
Other (1)
(81)28
Other (1)
(42) 28  
Total Cost of goods sold $(277)$241
 Total Cost of goods sold $(171) $88  
  
Interest expense  Interest expense
Hedge accountingInterest rate$—
$(3) Hedge accountingInterest rate$2  $(8) 
Economic hedgesInterest rate—
(3) Economic hedgesInterest rate—  (10) 
Total Interest expense $—
$(6) Total Interest expense $2  $(18) 
  
Foreign exchange gains (losses)  Foreign exchange gains (losses)
Hedge accountingForeign currency$7
$(1) Hedge accountingForeign currency$10  $8  
Economic hedgesForeign currency(184)38
 Economic hedgesForeign currency(237) 31  
Total Foreign exchange gains (losses) $(177)$37
 Total Foreign exchange gains (losses)$(227) $39  
  
Other comprehensive income (loss)  Other comprehensive income (loss)
Gains and losses on derivatives used as fair value hedges of foreign currency risk included in other comprehensive income (loss) during the periodGains and losses on derivatives used as fair value hedges of foreign currency risk included in other comprehensive income (loss) during the period$3
$(2)Gains and losses on derivatives used as fair value hedges of foreign currency risk included in other comprehensive income (loss) during the period$—  $(2) 
Gains and losses on derivatives used as cash flow hedges of foreign currency risk included in other comprehensive income (loss) during the periodGains and losses on derivatives used as cash flow hedges of foreign currency risk included in other comprehensive income (loss) during the period$(14)$—
Gains and losses on derivatives used as cash flow hedges of foreign currency risk included in other comprehensive income (loss) during the period$(17) $3  
Gains and losses on derivatives used as cash flow hedges of commodity price risk included in other comprehensive income (loss) during the periodGains and losses on derivatives used as cash flow hedges of commodity price risk included in other comprehensive income (loss) during the period$—  $8  
Gains and losses on derivatives used as net investment hedges included in other comprehensive income (loss) during the periodGains and losses on derivatives used as net investment hedges included in other comprehensive income (loss) during the period$46
$(38)Gains and losses on derivatives used as net investment hedges included in other comprehensive income (loss) during the period$53  $(45) 
Foreign currency gains and losses on intercompany loans used as net investment hedges included in other comprehensive income (loss) during the periodForeign currency gains and losses on intercompany loans used as net investment hedges included in other comprehensive income (loss) during the period$22
$17
Foreign currency gains and losses on intercompany loans used as net investment hedges included in other comprehensive income (loss) during the period$3  $5  
 
Amounts released from accumulated other comprehensive income (loss) during the periodAmounts released from accumulated other comprehensive income (loss) during the period Amounts released from accumulated other comprehensive income (loss) during the period
Cash flow hedge of foreign currency risk Cash flow hedge of foreign currency risk$(6)$1
 Cash flow hedge of foreign currency risk$1  $2  
(1)  Other includes the results from freight, energy and other derivatives.

14.DEBT
(1)
Other includes the results from freight, energy and other derivatives.

14.DEBT
Bunge’s commercial paper program is supported by an identical amount of committed back-up bank credit lines (the “Liquidity Facility”) providedprovided by banks that are rated at least A-1 by Standard & Poor’s Financial Services and P-1 by Moody’s Investors Service. The cost of borrowing under the Liquidity Facility would typically be higher than the cost of issuing under Bunge’s commercial paper program. At MarchJune 30, 2020, there were $498 million of borrowings outstanding under the commercial paper program and 0 borrowings under the Liquidity Facility, and at December 31, 2020,2019, there were 0 borrowings outstanding under the commercial paper program and 0 borrowings outstanding under the Liquidity Facility.


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At June 30, 2020, Bunge had $3,617 million of unused and available borrowing capacity under its committed credit facilities totaling $4,315 million with a number of lending institutions. At December 31, 2019, Bunge had $4,315 million of unused and available borrowing capacity under its committed long-term credit facilities with a number of lending institutions.
In addition to committed facilities, from time to time, Bunge Limited and/or its financing subsidiaries enter into uncommitted bilateral short-term credit lines as necessary based on its financing requirements. At MarchJune 30, 2020 and December 31, 2020,2019 there were $451 million and 0 borrowingsborrowings, respectively, outstanding underunder these bilateral short-term credit lines. Loans under such credit lines are non-callable by the respective lenders. In addition, Bunge's operating companies had $736$586 million and $771 million in short-term borrowings outstanding under local bank lines of credit at MarchJune 30, 2020 and December 31, 20202019, respectively, to support working capital requirements.
At March 31, 2020, Bunge had $4,315 million of unused and available borrowing capacity under its committed credit facilities totaling $4,315 million with a number of lending institutions.
The fair value of Bunge’s long-term debt is based on interest rates currently available on comparable maturities to companies with credit standing similar to that of Bunge. The carrying amounts and fair value of long-term debt are as follows:
 June 30, 2020December 31, 2019
(US$ in millions)Carrying
Value		Fair Value
(Level 2)		Carrying
Value		Fair Value
(Level 2)
Long-term debt, including current portion$4,502  $4,548  $4,223  $4,319  
  March 31, 2020 December 31, 2019
(US$ in millions) 
Carrying
Value
 
Fair Value
(Level 2)
 Carrying
Value		 Fair Value
(Level 2)
Long-term debt, including current portion $4,262
 $4,201
 $4,223
 $4,319

15. RELATED PARTY TRANSACTIONS

15.RELATED PARTY TRANSACTIONS
Bunge annually purchases agricultural commodity products from certain of its unconsolidated investees and other related parties. Such related party purchases comprised less than 5%6% of totaltotal Cost of goods sold for the three and six months ended March 31,June 30, 2020 and 2019. Bunge also sells agriculturalagricultural commodity products to certain of its unconsolidated investees and other related parties. Such related party sales comprised less than 2%3% of total Net sales for the three and six months ended March 31,June 30, 2020 and 2019.
In addition, Bunge receives services from and provides services to its unconsolidated investees, including tolling, port handling, administrative support, and other services. For the three and six months ended March 31,June 30, 2020 and 2019, such services werewere not material to thethe Company's consolidated results.
At March 31,June 30, 2020 and December 31, 2019, receivables and payables related to the above related party transactions, and included in Trade accounts receivable and Trade accounts payable,payable, respectively, in the consolidated balance sheets were not material.
Bunge believes all transaction values to be similar to those that would be conducted with third parties.

16. COMMITMENTS AND CONTINGENCIES
Bunge is party to claims and lawsuits, primarily non-income tax and labor claims in South America, arising in the normal course of business. Bunge is also involved from time to time in various contract, antitrust, environmental litigation and remediation and other litigation, claims, government investigations and legal proceedings. The ability to predict the ultimate outcome of such matters involves judgments, estimates and inherent uncertainties. Bunge records liabilities related to legal matters when the exposure item becomes probable and can be reasonably estimated. Bunge management does not expect these matters to have a material adverse effect on Bunge’s financial condition, results of operations or liquidity. However, these matters are subject to inherent uncertainties and there exists the remote possibility that a liability arising from these matters could have a material adverse impact in the period the uncertainties are resolved should the liability substantially exceed the amount of provisions included in the consolidated balance sheets. Information regarding the claims appears in Bunge’s Report on Form 10-K for the year ended December 31, 2019. Included in otherOther non-current liabilities at March 31,June 30, 2020 and December 31, 2019 are the following amounts related to these matters:
(US$ in millions)June 30,
2020		December 31,
2019
Non-income tax claims$19  $23  
Labor claims41  50  
Civil and other claims74  88  
Total$134  $161  
(US$ in millions) March 31,
2020		 December 31,
2019
Non-income tax claims $20
 $23
Labor claims 39
 50
Civil and other claims 76
 88
Total $135
 $161
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Brazil Indirect Taxes
Non-income tax claims - These tax claims relate to ongoing claims against Bunge’s Brazilian subsidiaries, primarily value-added tax claims (ICMS, ISS, IPI and PIS/COFINS). Bunge expects to pay 5838 million Brazilian reais (approximately $11$7 million) in 2020 or 2021 to settle a portion of its outstanding liabilities in amnesty programs in certain Brazilian states regarding certain tax credits.
As of March 31,June 30, 2020, the Brazilian federal and state authorities have concluded examinations of the ICMS and PIS COFINS tax returns and have issued outstanding claims (including applicable interest and penalties).claims. The Company continues to evaluate the merits of each of these claims and will recognize them when loss is considered probable. The outstanding claims are comprised of the following:
(US$ in millions)Years ExaminedMarch 31, 2020December 31, 2019
ICMS1990 to Present$174
$221
PIS/COFINS2004 through 2016$208
$268

(US$ in millions)Years ExaminedJune 30, 2020December 31, 2019
ICMS1990 to Present$168  $221  
PIS/COFINS2004 through 2016$197  $268  
Labor claims — The labor claims are principally claims against Bunge’s Brazilian subsidiaries. The labor claims primarily relate to dismissals, severance, health and safety, salary adjustments and supplementary retirement benefits.
Civil and other claims — The civil and other claims relate to various disputes with third parties, including suppliers and customers.

During the first quarter of 2016, Bunge received a notice from the Brazilian Administrative Council for Economic Defense ("CADE") initiating an administrative proceeding against its Brazilian subsidiary and 2 of its employees, certain of its former employees, several other companies in the Brazilian wheat milling industry, and others for alleged anticompetitive activities in the north and northeast of Brazil. This proceeding was put on hold due to a Court injunction obtained by one of the defendants in a case related to the application of the statute of limitations. Additionally, in the second quarter of 2018, Bunge received a notification from CADE that it has extended the scope of an existing administrative proceeding relating to alleged anticompetitive practices in the Rio Grande port in Brazil to include certain of Bunge's Brazilian subsidiaries and certain former employees of those subsidiaries. Bunge is defending against these actions; however,administrative proceedings and, in case it is unsuccessful, the proceedings were put on hold due to a Court injunction obtained by one ofcan be further litigated in the defendants while the Courts determine whether the statute of limitations should be applied to the proceedings.judicial courts. Therefore, Bunge cannot at this time reasonably predict the ultimate outcome of the proceedingscases or sanctions, if any, that may be imposed.

Refer to Note 6 - Trade Accounts Receivable and Trade Receivable Securitization Program for additional information regarding contingencies in relation to outstanding customer claims at the balance sheet date.
Guarantees — Bunge has issued or was a party to the following guarantees at March 31,June 30, 2020:
(US$ in millions) 
Maximum
Potential
Future
Payments
Unconsolidated affiliates guarantee (1) (2)
 $276
Residual value guarantee (3)
 263
Total $539
(1)Bunge has issued financial and performance guarantees to certain financial institutions related to debt of certain of its unconsolidated affiliates. The terms of the guarantees are equal to the terms of the related financings that have maturity dates through 2034. There are no recourse provisions or collateral that would enable Bunge to recover any amounts paid under these guarantees. In addition, a Bunge subsidiary has guaranteed the obligations of two of its affiliates and(US$ in connection therewith has secured its guarantee obligations through a pledge of one of its affiliate's shares plus loans receivable from the affiliate to the financial institutions in the event that the guaranteed obligations are enforced. Based on the amounts drawn under such debt facilities at March 31, 2020, Bunge's potential liability was $176 million, and it has recorded a $14 million obligation related to these guarantees, inclusive of expected lifetime credit losses, which are determined based on historical financial information and are not expected to be material.millions)
Maximum
Potential
Future
Payments
Unconsolidated affiliates guarantee (1) (2)
Bunge has issued guarantees to certain third parties related to performance of its unconsolidated affiliates. The terms of the guarantees are equal to the completion date of a port terminal that is expected to be completed in 2020. There are no recourse provisions or collateral that would enable Bunge to recover any amounts paid under these guarantees. At March 31, 2020, Bunge's maximum potential future payments under these guarantees was $43 million, and 0 obligation has been recorded related to these guarantees.
$277 
Residual value guarantee (3)
Bunge has issued guarantees to certain financial institutions that are party to certain operating lease arrangements for railcars, barges, and buildings. These guarantees provide for a minimum residual value to be received by the lessor at270 
Total$547 

(1) Bunge has issued financial and performance guarantees to certain financial institutions related to debt of certain of its unconsolidated affiliates. The terms of the guarantees are equal to the terms of the related financings that have maturity dates through 2034. There are no recourse provisions or collateral that would enable Bunge to recover any amounts paid under these guarantees. In addition, a Bunge subsidiary has guaranteed the obligations of two of its affiliates and in connection therewith has secured its guarantee obligations through a pledge of one of its affiliate's shares plus loans receivable from the affiliate to the financial institutions in the event that the guaranteed obligations are enforced. Based on the amounts drawn under such debt facilities at June 30, 2020, Bunge's potential liability was $189 million, and it has recorded a $13 million obligation related to these guarantees, inclusive of expected lifetime credit losses, which are determined based on historical financial information and are not expected to be material.
(2) As of June 30, 2020, Bunge has issued guarantees to certain third parties related to performance of its unconsolidated affiliates. The terms of the guarantees are equal to the completion date of a port terminal that was substantially completed subsequent to June 30, 2020. There are no recourse provisions or collateral that would enable Bunge to recover any amounts paid under these guarantees. At June 30, 2020, Bunge's maximum potential future payments under these guarantees was $37 million, and 0 obligation has been recorded related to these guarantees.
(3) Bunge has issued guarantees to certain financial institutions that are party to certain operating lease arrangements for railcars, barges, and buildings. These guarantees provide for a minimum residual value to be received by the lessor at
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the conclusion of the lease term. These leases expire at various dates from 2020 through 2026. At March 31,June 30, 2020, 0 obligation has been recorded related to these guarantees. Any obligation recorded would be recognized in Current operating lease obligations or Non-current operating lease obligations (see Note 4 - Leases).
Bunge Limited has provided a guarantee to the Director of the Illinois Department of Agriculture as Trustee for Bunge North America, Inc. (“BNA”), an indirect wholly‑ownedwholly-owned subsidiary, which guarantees all amounts due and owing by BNA to grain producers and/or depositors in the State of Illinois who have delivered commodities to BNA’s Illinois facilities.
In addition, Bunge Limited has provided full and unconditional parent level guarantees of the outstanding indebtedness under certain credit facilities entered into, and senior notes issued, by its 100% owned subsidiaries. At March 31,June 30, 2020, Bunge’s condensed consolidated balance sheet includes debt with a carrying amountamount of $4,522$5,662 million related to these guarantees. This debt includes the senior notes issued by 2 of Bunge’s 100% owned financefinance subsidiaries, Bunge Limited Finance Corp. and Bunge Finance Europe, B.V. There are largely no restrictions on the ability of Bunge Limited Finance Corp. and Bunge Finance Europe B.V. or any other Bunge subsidiary to transfer funds to Bunge Limited.

17. REDEEMABLE NONCONTROLLING INTEREST
In connection with the acquisition of a 70% ownership interest in IOI Loders Croklaan ("Loders"), the Company has entered into a put/call arrangement with the Loders minority shareholder and may be required or elect to purchase the additional 30% ownership interest in Loders within a specified time frame.
The Company classifies these redeemable equity securities outside of permanent stockholders’ equity as the equity securities are redeemable at the option of the holder. The carrying amount of redeemable noncontrolling interests is the greater of: (i) the initial carrying amount, increased or decreased for the noncontrolling interests’ share of net income or loss, equity capital contributions and distributions or (ii) the redemption value. Any resulting increases in the redemption amount, in excess of the initial carrying amount, increased or decreased for the noncontrolling interests’ share of net income or loss and distributions, are affected by corresponding charges against retained earnings. Additionally, any such charges to retainedRetained earnings will affect Net income (loss) available to Bunge common shareholders as part of the Company's calculation of earnings per common share.

18.EQUITY
18. EQUITY
Share repurchase program - In May 2015, Bunge established a new program for the repurchase of up to $500 million of Bunge’s issued and outstanding common shares. The program has no expiration date. Bunge repurchased 2,546,000 common shares during the three and six months ended June 30, 2020 under this program, for $100 million. Total repurchases under the program from its inception in May 2015 through June 30, 2020 were 7,253,440 shares for $400 million.
Accumulated other comprehensive income (loss) attributable to Bunge — The following table summarizes the balances of related after-tax components of Accumulated other comprehensive income (loss) attributable to Bunge:
(US$ in millions)Foreign Exchange
Translation
Adjustment		Deferred
Gains (Losses)
on Hedging
Activities		Pension and Other
Postretirement
Liability
Adjustments		Accumulated
Other
Comprehensive
Income (Loss)
Balance, April 1, 2020$(6,098) $(123) $(190) $(6,411) 
Other comprehensive income (loss) before reclassifications(111) 3  —  (108) 
Amount reclassified from accumulated other comprehensive income (loss)—  3  1  4  
Balance, June 30, 2020$(6,209) $(117) $(189) $(6,515) 
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(US$ in millions) Foreign Exchange
Translation
Adjustment
Deferred
Gains (Losses)
on Hedging
Activities
Pension and Other
Postretirement
Liability
Adjustments
Accumulated
Other
Comprehensive
Income (Loss)
Balance, January 1, 2020 $(5,263) $(170) $(191) $(5,624)
Other comprehensive income (loss) before reclassifications (835) 51
 —
 (784)
Amount reclassified from accumulated other comprehensive income (loss) —
 (4) 1
 (3)
Balance, March 31, 2020 $(6,098) $(123) $(190) $(6,411)
(US$ in millions) Foreign Exchange
Translation
Adjustment		 Deferred
Gains (Losses)
on Hedging
Activities		 Pension and Other
Postretirement
Liability
Adjustments		 Accumulated
Other
Comprehensive
Income (Loss)
Balance, January 1, 2019 $(6,637) $(145) $(153) $(6,935)
Other comprehensive income (loss) before reclassifications (20) (23) —
 (43)
Amount reclassified from accumulated other comprehensive income (loss) —
 (1) (21) (22)
Balance, March 31, 2019 $(6,657) $(169) $(174) $(7,000)


(US$ in millions)Foreign Exchange
Translation
Adjustment		Deferred
Gains (Losses)
on Hedging
Activities		Pension and Other
Postretirement
Liability
Adjustments		Accumulated
Other
Comprehensive
Income (Loss)
Balance, April 1, 2019$(6,657) $(169) $(174) $(7,000) 
Other comprehensive income (loss) before reclassifications90  (8) —  82  
Amount reclassified from accumulated other comprehensive income (loss)—  (1) —  (1) 
Balance, June 30, 2019$(6,567) $(178) $(174) $(6,919) 

(US$ in millions)Foreign Exchange
Translation
Adjustment		Deferred
Gains (Losses)
on Hedging
Activities		Pension and Other
Postretirement
Liability
Adjustments		Accumulated
Other
Comprehensive
Income (Loss)
Balance, January 1, 2020$(5,263) $(170) $(191) $(5,624) 
Other comprehensive income (loss) before reclassifications(946) 54  —  (892) 
Amount reclassified from accumulated other comprehensive income (loss)—  (1) 2  1  
Balance, June 30, 2020$(6,209) $(117) $(189) $(6,515) 

(US$ in millions)Foreign Exchange
Translation
Adjustment		Deferred
Gains (Losses)
on Hedging
Activities		Pension and Other
Postretirement
Liability
Adjustments		Accumulated
Other
Comprehensive
Income (Loss)
Balance, January 1, 2019$(6,637) $(145) $(153) $(6,935) 
Other comprehensive income (loss) before reclassifications70  (31) —  39  
Amount reclassified from accumulated other comprehensive income (loss)—  (2) (21) (23) 
Balance, June 30, 2019$(6,567) $(178) $(174) $(6,919) 
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19. EARNINGS PER COMMON SHARE
The following table sets forth the computation of basic and diluted earnings per common share.
  Three Months Ended
March 31,
(US$ in millions, except for share data) 2020 2019
Net income (loss) $(193) $50
Net (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests 9
 (5)
Net income (loss) attributable to Bunge (184) 45
Convertible preference share dividends (8) (8)
Adjustment of redeemable noncontrolling interest (1)
 (15) —
Net income (loss) available to Bunge common shareholders - Basic and Diluted $(207) $37
     
Weighted-average number of common shares outstanding:  
Basic 141,899,104
 141,205,004
Effect of dilutive shares:  
  
—stock options and awards (2)
 —
 353,766
—convertible preference shares (3)
 —
 —
Diluted 141,899,104
 141,558,770
     
Earnings per common share:    
Net income (loss) attributable to Bunge common shareholders—basic $(1.46) $0.26
Net income (loss) attributable to Bunge common shareholders—diluted $(1.46) $0.26
Three Months Ended
June 30,		Six Months Ended
June 30,
(US$ in millions, except for share data)2020201920202019
Net income (loss)$522  $212  $329  $262  
Net (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests(6) 2  3  (3) 
Net income (loss) attributable to Bunge516  214  332  259  
Convertible preference share dividends(9) (9) (17) (17) 
Adjustment of redeemable noncontrolling interest (1)
5  —  (10) —  
Net income (loss) available to Bunge common shareholders - Basic and Diluted$512  $205  305  242  
Add back convertible preference share dividends9  9  17  —  
Net income (loss) available to Bunge common shareholders - Diluted$521  $214  $322  $242  
Weighted-average number of common shares outstanding:   
Basic141,565,298  141,497,071  141,734,488  141,351,844  
Effect of dilutive shares:    
—stock options and awards (2)
67,683  310,272  201,365  345,445  
—convertible preference shares (3)
8,570,096  8,329,297  8,570,096  —  
Diluted150,203,077  150,136,640  150,505,949  141,697,289  
Earnings per common share:
Net income (loss) attributable to Bunge common shareholders—basic$3.62  $1.46  $2.15  $1.72  
Net income (loss) attributable to Bunge common shareholders—diluted$3.47  $1.43  $2.14  $1.71  
(1)
(1) The redemption value adjustment of the Company's redeemable noncontrolling interest is added to or deducted from income (loss) as discussed further in Note 17 - Redeemable Noncontrolling Interest.
(2)The weighted-average common shares outstanding-diluted excludes approximately 7 million and 5 million stock options and contingently issuable restricted stock units, which were not dilutive and not included in the computation of earnings per share for the three months ended March 31, 2020 and 2019, respectively.
(3)Weighted-average common shares outstanding-diluted for the three months ended March 31, 2020 and 2019 excludes approximately 8 million and 8 million, respectively, weighted-average common shares that are issuable upon conversion of the convertible preference shares that were not dilutive and not included in the weighted-average number of common shares.
(2) The weighted-average common shares outstanding-diluted excludes approximately 7 million and 6 million stock options and contingently issuable restricted stock units, which were not dilutive and not included in the computation of earnings per share for the three months ended June 30, 2020 and 2019, respectively.
The weighted-average common shares outstanding-diluted excludes approximately 6 million and 5 million stock options and contingently issuable restricted stock units, which were not dilutive and not included in the computation of earnings per share for the six months ended June 30, 2020 and 2019, respectively.
(3) Weighted-average common shares outstanding-diluted for the six months ended June 30, 2019 excludes approximately 8 million weighted-average common shares that are issuable upon conversion of the convertible preference shares that were not dilutive and not included in the weighted-average number of common shares.

20.SEGMENT INFORMATION
20. SEGMENT INFORMATION
The Company's operations are organized, managed and classified into 5 reportable segments - Agribusiness, Edible Oil Products, Milling Products, Sugar and Bioenergy, and Fertilizer, which are organized based upon their similar economic characteristics, and are similar in nature of products and services offered, the nature of production processes, types and the type and classclasses of customer, and distribution methods.
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The Company’s remaining operations are not reportable segments, as defined by the applicable accounting standard, and are classified as Corporate and Other. See Note 1 - Basis of Presentation, Principles Of Consolidation, And Significant Accounting Policies.
The Agribusiness segment is characterized by both inputs and outputs being agricultural commodities and thus high volume and low margin. The Edible Oil Products segment involves the processing, production and marketing of products derived from vegetable oils. The Milling Products segment involves the processing, production and marketing of products derived primarily from wheat and corn. Up until December 2019, when the Company contributed its Brazilian sugar and bioenergy operations forming the majority of its Sugar and Bioenergy segment into a joint venture with the Brazilian biofuels business of BP p.l.c,p.l.c., the Sugar and Bioenergy segment primarily involved sugarcane growing and milling in Brazil, as well as

sugarcane-based ethanol production and corn-based ethanol investments and related activities. The activities of the Fertilizer segment include port operations in Brazil and Argentina and blending and retail operations in Argentina.
Corporate & Other includes salaries and overhead for corporate functions that are not allocated to the Company’s individual reporting segments because operating performance of each reporting segment is evaluated by the Company's chief operating decision maker exclusive of these items, as well as certain other activities including Bunge Ventures, the Company's captive insurance, and securitization activities.
Transfers between the segments are generally valued at market. The segment revenues generated from these transfers are shown in the following table as “Inter-segment revenues”.revenues.”
Three Months Ended June 30, 2020
(US$ in millions)AgribusinessEdible
Oil
Products		Milling
Products		Sugar and
Bioenergy		Fertilizer
Corporate and Other (1)
EliminationsTotal
Net sales to external customers$6,810  $2,128  $381  $26  $117  $—  $—  $9,462  
Inter–segment revenues1,256  44  —  —  1  —  (1,301) —  
Foreign exchange gains (losses)30  (4) 1  —  —  —  —  27  
Noncontrolling interests (1)
(6) —  —  —  —  —  —  (6) 
Other income (expense) – net30  (1) —  —  —  (2) —  27  
Income (loss) from affiliates18  —  —  (85) —  —  —  (67) 
Segment EBIT (2)
843  51  30  (85) 19  (120) —  738  
Depreciation, depletion and amortization(50) (37) (11) —  (1) (5) —  (104) 
Total assets12,566  3,615  1,240  176  320  642  —  18,559  
Three Months Ended June 30, 2019
(US$ in millions)AgribusinessEdible
Oil
Products		Milling
Products		Sugar and
Bioenergy		Fertilizer
Corporate and Other (1)
EliminationsTotal
Net sales to external customers$7,068  $2,206  $430  $284  $108  $—  $—  $10,096  
Inter–segment revenues1,078  41  —  1  18  —  (1,138) —  
Foreign exchange gains (losses)(10) (3) 1  1  —  —  —  (11) 
Noncontrolling interests (1)
1  —  —  1  —  —  —  2  
Other income (expense) – net25  (2) 8  (2) (1) 153  —  181  
Income (loss) from affiliates7  —  —  (1) —  —  —  6  
Segment EBIT (2)
209  43  25  (5) 6  76  —  354  
Depreciation, depletion and amortization(62) (39) (13) (36) (1) (5) —  (156) 
Total assets12,010  3,914  1,508  1,922  345  725  —  20,424  

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Table of Contents
 Three Months Ended March 31, 2020Six Months Ended June 30, 2020
(US$ in millions) Agribusiness 
Edible
Oil
Products
 
Milling
Products
 
Sugar and
Bioenergy
 Fertilizer 
Corporate and Other (1)
 Eliminations Total(US$ in millions)AgribusinessEdible
Oil
Products		Milling
Products		Sugar and
Bioenergy		Fertilizer
Corporate and Other (1)
EliminationsTotal
Net sales to external customers $6,329
 $2,324
 $416
 $50
 $54
 $—
 $—
 $9,173
Net sales to external customers$13,139  $4,452  $797  $76  $171  $—  $—  $18,635  
Inter–segment revenues 1,207
 43
 —
 —
 —
 —
 (1,250) —
Inter–segment revenues2,463  87  —  —  1  —  (2,551) —  
Foreign exchange gains (losses) (13) 7
 (1) —
 —
 1
 —
 (6)Foreign exchange gains (losses)17  3  —  —  —  1  —  21  
Noncontrolling interests (1)
 2
 7
 —
 —
 —
 —
 —
 9
Noncontrolling interests (1)
(4) 7  —  —  —  —  —  3  
Other income (expense) – net 1
 (1) (1) (51) —
 1
 —
 (51)Other income (expense) – net24  (2) (1) —  —  (1) —  20  
Income (loss) from affiliatesIncome (loss) from affiliates25  —  —  (136) —  —  —  (111) 
Segment EBIT (2)
 (127) 46
 18
 (50) 5
 (62) —
 (170)
Segment EBIT (2)
716  97  48  (135) 24  (182) —  568  
Depreciation, depletion and amortization (57) (37) (12) —
 (2) (5) —
 (113)Depreciation, depletion and amortization(107) (74) (23) —  (3) (10) —  (217) 
Total assets 12,394
 3,604
 1,277
 323
 294
 704
 —
 18,596
Total assets12,566  3,615  1,240  176  320  642  —  18,559  
Six Months Ended June 30, 2019
(US$ in millions)AgribusinessEdible
Oil
Products		Milling
Products		Sugar and
Bioenergy		Fertilizer
Corporate and Other (1)
EliminationsTotal
Net sales to external customers$13,987  $4,445  $856  $569  $177  $—  $—  $20,034  
Inter–segment revenues2,246  73  —  1  20  —  (2,340) —  
Foreign exchange gains (losses)(19) (1) 3  (2) —  1  —  (18) 
Noncontrolling interests (1)
3  (6) —  —  —  —  —  (3) 
Other income (expense) – net49  (5) 6  (2) (1) 158  —  205  
Income (loss) from affiliates14  —  —  (1) —  —  —  13  
Segment EBIT (2)
350  102  47  (24) 8  22  —  505  
Depreciation, depletion and amortization(122) (78) (26) (55) (3) (10) —  (294) 
Total assets12,010  3,914  1,508  1,922  345  725  —  20,424  
  Three Months Ended March 31, 2019
(US$ in millions) Agribusiness Edible
Oil
Products		 Milling
Products		 Sugar and
Bioenergy		 Fertilizer 
Corporate and Other (1)
 Eliminations Total
Net sales to external customers $6,919
 $2,239
 $426
 $285
 $69
 $—
 $—
 $9,938
Inter–segment revenues 1,168
 32
 —
 —
 1
 —
 (1,201) —
Foreign exchange gains (losses) (9) 2
 2
 (3) —
 1
 —
 (7)
Noncontrolling interests (1)
 2
 (6) —
 (1) —
 —
 —
 (5)
Other income (expense) – net 29
 (1) (2) —
 —
 5
 —
 31
Segment EBIT (2)
 141
 59
 22
 (19) 2
 (54) —
 151
Depreciation, depletion and amortization (60) (39) (14) (19) (2) (5) —
 (139)
Total assets 12,118
 3,942
 1,542
 1,861
 315
 757
 —
 20,535
(1)Includes noncontrolling interests share of interest and tax to reconcile to consolidated Noncontrolling interests.
(2) Total segment earnings before interest and taxes (“EBIT”) is an operating performance measure used by Bunge’s management to evaluate segment operating activities. Bunge’s management believes total Segment EBIT is a useful measure of operating profitability, since the measure allows for an evaluation of the performance of its segments without regard to its financing methods or capital structure. In addition, total Segment EBIT is a financial measure that is widely used by analysts and investors in Bunge’s industry. However, total Segment EBIT is a non-GAAP financial measure and is not intended to replace Net income (loss) attributable to Bunge, the most directly comparable U.S. GAAP financial measure. Further, total Segment EBIT is not a measure of consolidated operating results under U.S. GAAP and should not be considered as an alternative to Net income (loss) or any other measure of consolidated operating results under U.S. GAAP. See the reconciliation of total Segment EBIT to Net income (loss) in the table below.

(1) Include noncontrolling interests share of interest and tax to reconcile to consolidated Noncontrolling interests.


(2) Total segment earnings before interest and taxes (“EBIT”) is an operating performance measure used by Bunge’s management to evaluate segment operating activities. Bunge’s management believes total Segment EBIT is a useful measure of operating profitability, since the measure allows for an evaluation of the performance of its segments without regard to its financing methods or capital structure. In addition, total Segment EBIT is a financial measure that is widely used by analysts and investors in Bunge’s industry. However, total Segment EBIT is a non-GAAP financial measure and is not intended to replace Net income (loss) attributable to Bunge, the most directly comparable U.S. GAAP financial measure. Further, total Segment EBIT is not a measure of consolidated operating results under U.S. GAAP and should not be considered as an alternative to Net income (loss) or any other measure of consolidated operating results under U.S. GAAP. See the reconciliation of total Segment EBIT to Net income (loss) in the table below.
A reconciliation of total Segment EBIT to Net income (loss) attributable to Bunge follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
(US$ in millions)2020201920202019
Net income (loss) attributable to Bunge$516  $214  $332  $259  
Interest income(6) (7) (13) (14) 
Interest expense62  88  139  163  
Income tax expense (benefit)168  60  113  98  
Noncontrolling interests' share of interest and tax(2) (1) (3) (1) 
Total Segment EBIT from continuing operations$738  $354  $568  $505  
  Three Months Ended
March 31,		 
(US$ in millions) 2020 2019 
Total Segment EBIT from continuing operations $(170) $151
 
Interest income 7
 7
 
Interest expense (77) (75) 
Income tax (expense) benefit 55
 (38) 
Noncontrolling interests' share of interest and tax 1
 —
 
Net income (loss) attributable to Bunge $(184) $45
 
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The Company’s revenue comprises sales from commodity contracts that are accounted for under ASC 815, Derivatives and Hedging (ASC 815) and sales of other products and services that are accounted for under ASC 606, Revenue from Contracts with Customers (ASC 606). The following tables provide a disaggregation of Net sales to external customers between Salessales from contracts with customers and Salessales from other arrangements:
Three Months Ended June 30, 2020
(US$ in millions)AgribusinessEdible
Oil
Products		Milling
Products		Sugar and
Bioenergy		FertilizerTotal
Sales from other arrangements$6,611  $498  $15  $23  $—  $7,147  
Sales from contracts with customers199  1,630  366  3  117  2,315  
Net sales to external customers$6,810  $2,128  $381  $26  $117  $9,462  
 Three Months Ended March 31, 2020Three Months Ended June 30, 2019
(US$ in millions) Agribusiness 
Edible
Oil
Products
 
Milling
Products
 
Sugar and
Bioenergy
 Fertilizer Total(US$ in millions)AgribusinessEdible
Oil
Products		Milling
Products		Sugar and
Bioenergy		FertilizerTotal
Sales from other arrangements $6,084
 $492
 $15
 $47
 $—
 $6,638
Sales from other arrangements$6,842  $453  $20  $151  $—  $7,466  
Sales from contracts with customers 245
 1,832
 401
 3
 54
 2,535
Sales from contracts with customers226  1,753  410  133  108  2,630  
Net sales to external customers $6,329
 $2,324
 $416
 $50
 $54
 $9,173
Net sales to external customers$7,068  $2,206  $430  $284  $108  $10,096  
Six Months Ended June 30, 2020
(US$ in millions)AgribusinessEdible
Oil
Products		Milling
Products		Sugar and
Bioenergy		FertilizerTotal
Sales from other arrangements$12,695  $990  $30  $70  $—  $13,785  
Sales from contracts with customers444  3,462  767  6  171  4,850  
Net sales to external customers$13,139  $4,452  $797  $76  $171  $18,635  
Six Months Ended June 30, 2019
(US$ in millions)AgribusinessEdible
Oil
Products		Milling
Products		Sugar and
Bioenergy		FertilizerTotal
Sales from other arrangements$13,559  $912  $35  $356  $—  $14,862  
Sales from contracts with customers428  3,533  821  213  177  5,172  
Net sales to external customers$13,987  $4,445  $856  $569  $177  $20,034  

  Three Months Ended March 31, 2019
(US$ in millions) Agribusiness Edible
Oil
Products		 Milling
Products		 Sugar and
Bioenergy		 Fertilizer Total
Sales from other arrangements $6,717
 $459
 $15
 $205
 $—
 $7,396
Sales from contracts with customers 202
 1,780
 411
 80
 69
 2,542
Net sales to external customers $6,919
 $2,239
 $426
 $285
 $69
 $9,938



21. SUBSEQUENT EVENTS
Business DispositionsEVENT
On April 21,July 22, 2020 the Company issued a press release announcing that it has entered intoapproved an agreement to sell a portfolio of interior grain elevators locatedincrease in the United Statesexpected contributions to Zen-Noh Grain Corporationits defined benefit pension plans to $65 million for the year, compared to the $19 million previously disclosed in exchange for cash proceeds of $300 million, subject to customary closing adjustments.the Company's 2019 Annual Report on Form 10-K, filed on February 21, 2020. The completionfull amount of the sale is subject to customary closing conditions, including regulatory approval and is expected to close either in the last quartercontribution was paid on July 24, 2020.
34
Table of 2020 or first quarter of 2021.

Investments in Affiliates

Results associated with the Company’s 50% interest in its equity method investee, BP Bunge Bioenergia, which comprises the majority of its Sugar and Bioenergy segment, are reported on a one-month lag. As such, included in Other income (expense) - net for the three months ended March 31, 2020 is the Company’s share of losses from the investee for the three months ended February 29, 2020. Such losses were impacted by foreign exchange losses on the remeasurement of US dollar denominated debt into Brazilian real, the functional currency of the investee.Contents
Subsequent to February 29, 2020, through the date of issuance of the Company’s financial statements, the Brazilian real has continued to depreciate versus the U.S. dollar. As such, the Company believes that additional foreign exchange losses in relation to its investment in BP Bunge Bioenergia may be material to the Company’s financial statements for the three and six months ended June 30, 2020.


Cautionary Statement Regarding Forward Looking Statements
This report contains both historical and forward looking statements. All statements, other than statements of historical fact are, or may be deemed to be, forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (Exchange Act). These forward looking statements are not based on historical facts, but rather reflect our current expectations and projections about our future results, performance, prospects and opportunities. We have tried to identify these forward looking statements by using words including “may,” “will,” “should,” “could,” “expect,” “anticipate,” “believe,” “plan,” “intend,” “estimate,” “continue” and similar expressions. These forward looking statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward looking statements. The following important factors, among others, could cause actual results to differ from these forward-looking statements: industry conditions, including fluctuations in supply, demand and prices for agricultural commodities and other raw materials and products used in our business, fluctuations in energy and freight costs; competitive developments in our industries; the effects of weather conditions and the outbreak of crop and animal disease on our business; global and regional economic, agricultural, financial and commodities market, political, social and health conditions; the impacts of pandemic outbreaks, including COVID-19; the outcome of pending regulatory and legal proceedings; our ability to complete, integrate and benefit from acquisitions, dispositions, joint ventures and strategic alliances; our ability to achieve the efficiencies, savings and other benefits anticipated from our cost reduction, margin improvement, operational excellence and other business optimization initiatives; changes in government policies, laws and regulations affecting our business, including agricultural and trade policies and environmental, tax and biofuels regulation; our capital allocation plans, funding needs and financing sources; changes in foreign exchange policy or rates; the outcome of our portfolio rationalization initiatives; the effectiveness of our risk management strategies; our ability to attract and retain executive management and key personnel; operational risks, including industrial accidents, natural disasters and cybersecurity incidents; and other factors affecting our business generally.
The forward looking statements included in this report are made only as of the date of this report, and except as otherwise required by federal securities law, we do not have any obligation to publicly update or revise any forward looking statements to reflect subsequent events or circumstances.
You should refer to “Item 1A.  Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC on February 21, 2020, and “Part II — Item 1A. Risk Factors” in this Quarterly Report on Form 10-Q for a more detailed discussion of these factors.

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ITEM 2.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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ITEM 2.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Second Quarter 2020 Overview

You should refer to “Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations - Factors Affecting Operating Results" in our Annual Report on Form 10-K for the year ended December 31, 2019 for a discussion of key factors affecting operating results in each of our business segments. In addition, you should refer to “Item 9A, Controls and Procedures” in our Annual Report on Form 10-K for the year ended December 31, 2019 and to “Item 4, Controls and Procedures” in this Quarterly Report on Form 10-Q for the period ended March 31,June 30, 2020 for a discussion of our internal controls over financial reporting.

Non-U.S. GAAP Financial Measures

Total segment earnings before interest and taxes (“EBIT”) is an operating performance measure used by Bunge’s management to evaluate segment operating activities. Bunge’s management believes total Segment EBIT is a useful measure of operating profitability, since the measure allows for an evaluation of the performance of its segments without regard to its financing methods or capital structure. In addition, EBIT is a financial measure that is widely used by analysts and investors in Bunge’s industry. Total Segment EBIT is a non-U.S. GAAP financial measure and is not intended to replace Net income (loss) attributable to Bunge, the most directly comparable U.S. GAAP financial measure. Further, total Segment EBIT excludes EBIT attributable to noncontrolling interests and is not a measure of consolidated operating results under U.S. GAAP and should not be considered as an alternative to Net income (loss) or any other measure of consolidated operating results under U.S. GAAP. See the reconciliation of total Segment EBIT to Net income (loss) attributable to Bunge to Total Segment EBIT below.

Three Months Ended March 31, 2020 Compared to Three Months Ended March 31, 2019

Executive Summary
Net Income (Loss) Attributable to Bunge - For the quarter ended March 31,June 30, 2020, net income attributable to Bunge decreased by $229was $516 million, an increase of $302 million compared to a lossnet income attributable to Bunge of $184 million from income of $45$214 million for the quarter ended March 31,June 30, 2019. This decrease resultedFor the six months ended June 30, 2020, net income attributable to Bunge was $332 million, an increase of $73 million, compared to net income attributable to Bunge of $259 million for the six months ended June 30, 2019. The increase for the three months ended June 30, 2020 was primarily from lower totaldue to higher Segment EBIT in our Agribusiness, Edible Oils Products, Milling Products and Fertilizer segments, partially offset by lower Segment EBIT in our Sugar and Bioenergy segment and Corporate and Other activities. The increase for the six months ended June 30, 2020 was primarily due to higher Segment EBIT in our Agribusiness and Fertilizer segments, partially offset by lower Segment in our Edible Oils Products and Sugar and Bioenergy segments, and Corporate and Other activities.
Earnings Per Common Share - Diluted - For the quarter ended June 30, 2020, net income attributable to Bunge common shareholders, diluted, was $3.47 per share, an increase of $321$2.04 per share, compared to $1.43 per share for the quarter ended June 30, 2019. For the six months ended June 30, 2020, net income attributable to Bunge common shareholders, diluted, was $2.14 per share, an increase of $0.43 per share, compared to $1.71 per share for the six months ended June 30, 2019.
EBIT - For the quarter ended June 30, 2020, EBIT was $738 million, predominantlyan increase of $384 million compared to EBIT of $354 million for the quarter ended June 30, 2019. For the six months ended June 30, 2020, EBIT was $568 million, an increase of $63 million compared to EBIT of $505 million for the six months ended June 30, 2019. The increase for the three months ended June 30, 2020 was primarily due to higher Segment EBIT in our Agribusiness, whichEdible Oils Products, Milling Products and Fertilizer segments, partially offset by lower Segment EBIT in our Sugar and Bioenergy segment and Corporate and Other activities. The increase for the six months ended June 30, 2020 was primarily due to higher Segment EBIT in our Agribusiness and Fertilizer segments, partially offset by lower by $268 million.Segment in our Edible Oils Products and Sugar and Bioenergy segments, and Corporate and Other activities.
Income Tax (Expense) Benefit - Income tax benefit related to continuing operationsexpense for the three months ended March 31,June 30, 2020 was $55$168 million andcompared to income tax expense related to continuing operations for the three months ended March 31,June 30, 2019 of $60 million. Income tax expense for the six months ended June 30, 2020 was $38$113 million compared to income tax expense for the six months ended June 30, 2019 of $98 million. The increase in income tax benefitexpense for the three monthsand six month periods ended MarchJune 30, 2020 was primarily due to higher pretax income, associated with higher EBIT, as noted above.
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Liquidity and capital resources – At June 30, 2020, working capital, which equals total current assets less total current liabilities, was $3,972 million, an increase of $322 million, compared to working capital of $3,650 million at June 30, 2019, and an increase of $319 million compared to working capital of $3,653 million at December 31, 20202019. The increase in working capital is primarily due to an overall pretax loss. The effective tax rate forincreased RMI purchases associated with the threetiming of the South American harvest period and strong farmer selling activity during the six months ended March 31, 2020 is materially consistent with the U.S. statutory rate of 21%. The effective tax rate for the three months ended March 31, 2019 was higher than the U.S. statutory rate of 21% primarily due to an unfavorable earnings mix associated with pretax losses in certain jurisdictions.June 30, 2020.
Segment Overview & Results of Operations
The Company's operations are organized, managed and classified into five reportable segments - Agribusiness, Edible Oil Products, Milling Products, Sugar and Bioenergy, and Fertilizer, which are organized based upon their similar economic characteristics, and are similar in the nature of their products and services offered, production processes, types and classes of customer, and distribution methods.
In December 2019, the Company contributed its Brazilian sugar and bioenergy operations, comprising the majority of its Sugar and Bioenergy segment, into a joint venture with the Brazilian biofuels business of BP p.l.c. ("BP") in exchange for cash and a 50% equity interest in the combined entity, BP Bunge Bioenergia (the “Joint Venture”). The Company’s reported Sugar and Bioenergy results for the first quarter of 2020 therefore include its share of the net earnings in the joint venture for the quarter,Joint Venture, whereas the Company’s Sugar and Bioenergy results for the first quarter of 2019 reflect its 100% ownership interest in the Brazilian sugar and bioenergy operations contributed to the Joint Venture.
The Company’s remaining operations are not reportable segments, as defined by the applicable accounting standard, and are classified as Corporate and Other. Effective January 1, 2020, the Company changed its segment reporting to separately disclose Corporate and Other activities from its reporting segments, as further described in Note 20 - Segment Information. Certain reclassifications of prior period amounts within the reporting segments have been made to conform to current presentation.

Agribusiness - EBIT for the first quarter of 2020 was a loss of $127 million compared to income of $141 million in the first quarter of 2019.
In Oilseeds, lower results in soy primarily stemmed from lower structural margins as well as negative mark-to-market impacts in most regions. In softseeds, higher structural margins were more than offset by negative mark-to-market results in most regions.
In Grains, improved origination results in North America, following adverse weather conditions in the prior year, and South America, due to improved farmer selling due to depreciation of the Brazilian real were more than offset by negative mark-to-market results in ocean freight.

Edible Oil Products - EBIT for the first quarter of 2020 was $46 million compared to $59 million in the first quarter of 2019. The decrease was largely driven by unfavorable mark-to-market results on hedges of palm oil purchases in Asia. Increased North American demand prior to COVID-19, and higher European demand related to accelerated-buying in advance of COVID-19 restrictions, was partially offset by lower demand in Asia following COVID-19 restrictions earlier in the quarter.
Milling Products - EBIT for the first quarter of 2020 was $18 million compared to $22 million in the first quarter of 2019. The decrease was primarily due to lower prices across all regions, which more than offset higher volumes in all regions except Mexico.
Sugar and Bioenergy - EBIT for the first quarter of 2020 was a loss of $50 million compared to a loss of $19 million in the first quarter of 2019. As discussed above, the current quarter result relates to our share of net income of the Joint Venture, which includes $25 million in foreign exchange losses on US dollar denominated debt of the Joint Venture due to depreciation of the Brazilian real during the quarter, whereas results for the first quarter of 2019 reflect our 100% ownership interest in the Brazilian sugar and bioenergy operations contributed to the Joint Venture in late 2019.
Fertilizer - EBIT for the first quarter of 2020 was $5 million compared to $2 million in the first quarter of 2019. The increased results in the quarter were primarily driven by higher margins, which were partially offset by lower volumes.
Corporate and Other - EBIT for the first quarter of 2020 was a loss of $62 million compared to a loss of $54 million in the first quarter of 2019. The decrease is primarily driven by lower results from our captive insurance and securitization activities, partially offset by lower SG&A due to ongoing savings captured during the global competitiveness program (GCP), which concluded at the end of 2019.
Segment Results
A summary of certain items in our condensed consolidated statements of income and volumes by reportable segment for the periods indicated is set forth below.
  Three Months Ended
March 31,
(US$ in millions, except volumes) 2020 2019
Volumes (in thousands of metric tons):  
  
Agribusiness 33,300
 34,429
Edible Oil Products 2,349
 2,309
Milling Products 1,148
 1,105
Sugar and Bioenergy 86
 816
Fertilizer 176
 196
     
Net sales:  
  
Agribusiness $6,329
 $6,919
Edible Oil Products 2,324
 2,239
Milling Products 416
 426
Sugar and Bioenergy 50
 285

Fertilizer 54
 69
Total $9,173
 $9,938
     
Cost of goods sold:  
  
Agribusiness $(6,340) $(6,689)
Edible Oil Products (2,196) (2,091)
Milling Products (370) (378)
Sugar and Bioenergy (48) (287)
Fertilizer (45) (64)
Corporate and Other —
 8
Total $(8,999) $(9,501)
     
Gross profit:  
  
Agribusiness $(11) $230
Edible Oil Products 128
 148
Milling Products 46
 48
Sugar and Bioenergy 2
 (2)
Fertilizer 9
 5
Corporate and Other —
 8
Total $174
 $437
     
Selling, general and administrative expenses:  
  
Agribusiness $(106) $(112)
Edible Oil Products (94) (83)
Milling Products (26) (26)
Sugar and Bioenergy (1) (12)
Fertilizer (4) (3)
Corporate and Other (64) (69)
Total $(295) $(305)
     
Foreign exchange gains (losses):  
  
Agribusiness $(13) $(9)
Edible Oil Products 7
 2
Milling Products (1) 2
Sugar and Bioenergy —
 (3)
Fertilizer —
 —
Corporate and Other 1
 1
Total $(6) $(7)
     
EBIT attributable to noncontrolling interests:  
  
Agribusiness $2
 $2
Edible Oil Products 6
 (6)
Milling Products —
 —
Sugar and Bioenergy —
 (1)
Fertilizer —
 —
Total $8
 $(5)
     

Other income (expense) - net:  
  
Agribusiness $1
 $29
Edible Oil Products (1) (1)
Milling Products (1) (2)
Sugar and Bioenergy (51) —
Fertilizer —
 —
Corporate and Other 1
 5
Total $(51) $31
     
Segment EBIT:  
  
Agribusiness $(127) $141
Edible Oil Products 46
 59
Milling Products 18
 22
Sugar and Bioenergy (50) (19)
Fertilizer 5
 2
Corporate and Other (62) (54)
Total $(170) $151
A reconciliation of Net income (loss) attributable to Bunge to Total Segment EBIT follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
(US$ in millions)2020201920202019
Net income (loss) attributable to Bunge$516  $214  $332  $259  
Interest income(6) (7) (13) (14) 
Interest expense62  88  139  163  
Income tax expense (benefit)168  60  113  98  
Noncontrolling interests' share of interest and tax(2) (1) (3) (1) 
Total Segment EBIT$738  $354  $568  $505  
Agribusiness Segment EBIT843  209  716  350  
Edible Oil Products Segment EBIT51  43  97  102  
Milling Products Segment EBIT30  25  48  47  
Fertilizer Segment EBIT19  6  24  8  
Sugar and Bioenergy Segment EBIT(85) (5) (135) (24) 
Corporate and Other EBIT(120) 76  (182) 22  
Total Segment EBIT$738  $354  $568  $505  

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  Three Months Ended
March 31,
(US$ in millions) 2020 2019
Net income (loss) attributable to Bunge $(184) $45
Interest income (7) (7)
Interest expense 77
 75
Income tax expense (benefit) (55) 38
Noncontrolling interest's share of interest and tax (1) —
Total Segment EBIT $(170) $151
Agribusiness Segment

Three Months Ended
June 30,		Six Months Ended
June 30,
(US$ in millions, except volumes)2020201920202019
Volumes (in thousand metric tons)38,035  34,009  71,335  68,438  
Net sales$6,810  $7,068  $13,139  $13,987  
Cost of goods sold(5,925) (6,756) (12,265) (13,445) 
Gross profit885  312  874  542  
Selling, general and administrative expense(114) (125) (220) (238) 
Foreign exchange gains (losses)30  (10) 17  (19) 
EBIT attributable to noncontrolling interests(6) —  (4) 2  
Other income (expense) – net30  25  24  49  
Income (loss) from affiliates18  7  25  14
Total Agribusiness Segment EBIT$843  $209  $716  $350  
Agribusiness Segment -
Three Months Ended June 30, 2020 Compared to Three Months Ended June 30, 2019
Agribusiness segment net sales decreased by $590$258 million, or 9%4%, to $6.3 billion$6,810 million in the firstsecond quarter of 2020, compared to $6.9 billion$7,068 million in the firstsecond quarter of 2019. The net decrease was primarily due to the following:
•In Oilseeds, net sales increased $235 million due to higher soy volumes, primarily in our oilseedChina and Brazil, and higher overall softseed volumes.
•In Grains, net sales decreased $493 million due to lower overall commodity sales prices, which more than offset higher trading and distribution business, which suffered from lower sales volumes due to COVID-19. Additionally, lower sales prices in our grain origination business, and lower volumes in our grain trading and distribution businesses, contributed to the decrease.volumes.

Cost of goods sold decreased by $349$831 million, or 5%12%, to $6,340$5,925 million in the firstsecond quarter of 2020 compared to $6,689$6,756 million in the firstsecond quarter of 2019. The net decrease is associated withwas primarily due to the decreases infollowing:
•In our Oilseeds business, the $104 million net sales discussed above, as well as unfavorabledecrease was primarily due to favorable mark-to-market results in our oilseed processing oilseed origination and distribution and ocean freight businesses, which more than offset by gainsthe increase in our grain originationcost of goods sold associated with higher net sales, as described above. Additionally, the business benefited from favorable translation impacts on industrial costs, as most currencies in North America, following adverse weather conditions inwhich such expenses are denominated depreciated versus the prior year, and in South America, due to improved farmer selling due to depreciation ofU.S. dollar during the Brazilian real.quarter.

Gross profit decreased by $241•In our Grains business, the $727 million or 105%, to a loss of $11 million in the first quarter of 2020, from income of $230 million in the first quarter of 2019. Thenet decrease was primarily due to a large unfavorablethe decrease in net sales above, as well as favorable mark-to-market impactresults in our oilseed processing, oilseed origination and distribution, and ocean freight businesses, partiallybusiness, primarily related to the reversal of bunker fuel hedges that negatively impacted the first quarter. Additionally the business benefited from favorable translation impacts on industrial costs, as most currencies in which such expenses are denominated depreciated versus the U.S. dollar during the quarter.
Gross profit increased by $573 million, or 184%, to $885 million in the second quarter of 2020, compared to $312 million in the second quarter of 2019. The net increase was primarily due to the following:
•In Oilseeds, the increase of $339 million was due to higher net sales and lower cost of goods sold, as described above.
•In Grains, the increase of $234 million was due to significantly lower cost of goods sold, which more than offset by gains in our North and South American grain origination businesses.

lower net sales, as described above.
SG&A expenses decreased $6$11 million, or 5%9%, to $106$114 million in the firstsecond quarter of 2020, from $112compared to $125 million in the firstsecond quarter of 2019. The decrease was mainly due to savings associated with ongoing savings captured during the GCP, which concluded at the end of 2019. Additionally,cost initiatives, lower expenses due to COVID-19 travel restrictions, and favorable translation impacts, as most currencies in which SG&A expenses are denominated depreciated versus the US dollar during the current quarter.

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Foreign exchange results decreased $4increased $40 million, or 44%, to lossesa gain of $13$30 million in the firstsecond quarter of 2020, compared to lossesa loss of $9$10 million in the firstsecond quarter of 2019. Foreign exchange results arewere primarily driven by fundinggains on U.S. dollar denominated loans receivable in non-U.S. functional currency operationsoperations.
Other income (expense) - net increased $5 million, or 20%, to income of $30 million in the second quarter of 2020, compared to income of $25 million in the second quarter of 2019. The increase was primarily due to higher income earned from financial services activities.
Segment EBIT increased $634 million, or 303%, to $843 million in the second quarter of 2020, compared to $209 million in the second quarter of 2019. The net increase was primarily due to the following:
•In Oilseeds, the increase of $371 million for the second quarter of 2020 was primarily due to higher gross profit, lower SG&A expenses, increased foreign exchange results and increased Other income (expense) - net, as described above.
•In Grains, the increase of $263 million for the second quarter of 2020 was primarily due to higher gross profit, lower SG&A expenses, increased foreign exchange results and increased Other income (expense) - net, as described above.
Six Months Ended June 30, 2020 Compared to Six Months Ended June 30, 2019
Agribusiness segment net sales decreased by $848 million, or 6%, to $13,139 million in the six months ended June 30, 2020, compared to $13,987 million in the six months ended June 30, 2019. The net decrease was primarily due to the following:
•In Oilseeds, the decrease of $94 million for the six months ended June 30, 2020 was primarily due to lower sales volumes in our oilseed trading and distribution businesses in the first quarter of the year, in part due to COVID-19, partially offset by higher volumes in our soy processing division, primarily in China and Brazil, and higher overall softseed volumes in the second quarter of the year.
•In Grains, the decrease of $754 million for the six months ended June 30, 2020 was due to lower commodity sales prices and lower volumes in our grain trading and distribution businesses.
Cost of goods sold decreased by $1,180 million, or 9%, to $12,265 million in the six months ended June 30, 2020, compared to $13,445 million in the six months ended June 30, 2019. The net decrease was primarily due to the following:
•In Oilseeds, the decrease of $210 million for the six months ended June 30, 2020 was due to the decrease in net sales noted above, as well as favorable translation impacts on industrial costs, as most currencies in which such expenses are denominated depreciated versus the U.S. dollar during the year.
•In Grains, the decrease of $970 million for the six months ended June 30, 2020 was due to the decrease in net sales noted above, as well as favorable translation impacts on industrial costs, as most currencies in which such expenses are denominated depreciated versus the U.S. dollar during the year.
Gross profit increased by $332 million, or 61%, to $874 million in the six months ended June 30, 2020, compared to $542 million in the six months ended June 30, 2019. The net increase was primarily due to the following:
•In Oilseeds, the increase of $116 million for the six months ended June 30, 2020 was due to lower cost of goods sold, which more than offset lower net sales, as described above.
•In Grains, the increase of $216 million for the six months ended June 30, 2020 was due to lower cost of goods sold, which more than offset lower net sales, as described above.
SG&A decreased by $18 million, or 8%, to $220 million in the six months ended June 30, 2020, compared to $238 million in the six months ended June 30, 2019. The decrease was mainly due to savings associated with ongoing cost initiatives, lower expenses due to COVID-19 travel restrictions, and favorable translation impacts, as most currencies in which SG&A expenses are denominated depreciated versus the U.S. dollar during the year.
Foreign exchange results increased $36 million, or 189%, to $17 million in the six months ended June 30, 2020, compared to a loss of $19 million in the six months ended June 30, 2019. Foreign exchange results were primarily USdriven by gains on U.S. dollar denominated debt.loans receivable in non-U.S. functional currency operations.

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Other income (expense) - net decreased $28by $25 million, or 97%51%, to income of $1$24 million in the first quarter ofsix months ended June 30, 2020, compared to income of $29$49 million in the first quarter ofsix months ended June 30, 2019. The decrease was primarily due to lower results from our financial services operationsactivities earlier in the current quarter, driven by global financial market declines associated with COVID-19.

year.
Segment EBIT decreased $268increased by $366 million, or 190%105%, to a loss of $127$716 million in the first quarter ofsix months ended June 30, 2020, from income of $141compared to $350 million in the first quarter ofsix months ended June 30, 2019. The decreaseincrease was primarily due to lowerthe following:
•In Oilseeds, the increase of $112 million for the six months ended June 30, 2020 was primarily due to higher gross profit, lower SG&A expenses, and otherhigher foreign exchange results, as described above.
•In Grains, the increase of $254 million for the six months ended June 30, 2020 was primarily due to higher gross profit, lower SG&A expenses, and higher foreign exchange results, partially offset by lower Other income (expense) - net, discussed above, partially offset by lower SG&A expenses.

as described above.
Edible Oil Products Segment -
Three Months Ended
June 30,		Six Months Ended
June 30,
(US$ in millions, except volumes)2020201920202019
Volumes (in thousand metric tons)2,279  2,328  4,628  4,637  
Net sales$2,128  $2,206  $4,452  $4,445  
Cost of goods sold(1,982) (2,065) (4,178) (4,155) 
Gross profit146  141  274  290  
Selling, general and administrative expense(88) (93) (182) (176) 
Foreign exchange gains (losses)(4) (3) 3(1) 
EBIT attributable to noncontrolling interests(2) —  4(6) 
Other income (expense) – net(1) (2) (2) (5) 
Income (loss) from affiliates—  —  —  —  
Total Edible Oils Products Segment EBIT$51  $43  $97  $102  
Three Months Ended June 30, 2020 Compared to Three Months Ended June 30, 2019
Edible Oil Products segment net sales increased $85decreased $78 million, or 4%, to $2.3 billion$2,128 million in the firstsecond quarter of 2020, compared to $2.2 billion$2,206 million in the firstsecond quarter of 2019, due to a combination of lower sales volumes and prices. Lower overall volumes and prices primarily relate to lower food services demand in North America and Europe and lower biofuel demand in Europe, due to local stay-at-home orders associated with COVID-19.
Cost of goods sold decreased $83 million, or 4%, to $1,982 million in the second quarter of 2020, compared to $2,065 million the second quarter of 2019. The decrease in cost of goods sold during the quarter was slightly higher than the decrease in net sales due to favorable translation impacts on industrial costs, as most currencies in which such expenses are denominated depreciated versus the U.S. dollar during the quarter.
Gross profit in the second quarter of 2020 increased $5 million, or 4%, to $146 million, compared to $141 million for the second quarter of 2019. The increase was primarily due to decreased cost of goods sold in excess of decreased net sales, as described above.
SG&A expenses decreased $5 million, or 5%, to $88 million in the second quarter of 2020, compared to $93 million in the second quarter of 2019, primarily due to lower expenses related to COVID-19 travel restrictions, as well as favorable translation impacts, as most currencies in which such expenses are denominated depreciated versus the U.S. dollar during the quarter.
Segment EBIT increased $8 million, or 19%, to $51 million for the second quarter of 2020, compared to $43 million in the second quarter of 2019. The increase was primarily due to higher business-to-business (B2B)gross profit and lower SG&A, as described above.
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Six Months Ended June 30, 2020 Compared to Six Months Ended June 30, 2019
Edible Oil Products segment net sales increased by only $7 million, less than one percent, to $4,452 million in the six months ended June 30, 2020, compared to $4,445 million in the six months ended June 30, 2019, due to relatively flat volumes and prices in North America prior to COVID-19 restrictions inbetween the region, higher business-to-consumer (B2C) demand in Europe related to accelerated-buying in advance of COVID-19 restrictions, partially offset by lower demand in Asia following COVID-19 restrictions earlier in the quarter.comparative periods.
Cost of goods sold increased $105by $23 million, or 5%1%, to $2.2 billion$4,178 million in the first quarter ofsix months ended June 30, 2020, compared to $2.1 billion$4,155 million in the first quarter ofsix months ended June 30, 2019. The increase was due to the increased sales mentioned above, as well as unfavorable mark-to-market results on hedges of palm oil purchases in Asia, offset by lower depreciation on our Brazilian margarine assets classified as held-for-sale since the fourth quarter of 2019.

Gross profit in the first quarter of 2020 decreased $20 million, or 14%, to $128 million compared to $148 million for the first quarter of 2019. The decrease was primarily due to increases cost of goods sold in excess of increased sales due to unfavorable mark-to-market results on hedges of palm oil purchases in Asia.Asia during the first quarter, which more than offset favorable translation impacts on industrial costs during the second quarter, as described above.

Gross profit in the six months ended June 30, 2020 decreased $16 million, or 6%, to $274 million, compared to $290 million for the six months ended June 30, 2019. The decrease was primarily the result of higher cost of goods sold, as described above.
SG&A expenses increased $11by $6 million, or 13%3%, to $94$182 million in the first quarter ofsix months ended June 30, 2020, compared to $83$176 million in the same period a year ago,six months ended June 30, 2019. The increase was primarily due to increased bad debt expense in the current quarter.first quarter, which more than offset favorable translation impacts on SG&A during the second quarter, as described above.

EBIT attributable to noncontrolling interests, an expense when subsidiaries with noncontrolling interests generate earnings before interest and tax, versus income when subsidiaries with noncontrolling interests generate loss before interest and tax, changed by $10 million, or 167%, to income of $4 million in the six months ended June 30, 2020, compared to expense of $6 million in the six months ended June 30, 2019. The change was primarily due to losses before interest and tax associated with our non-wholly-owned Bunge Loders Croklaan ("Loders") subsidiary in the six months ended June 30, 2020, primarily driven by factors mentioned above, compared to earnings before interest and tax in the same business during the six months ended June 30, 2019.
Segment EBIT decreased $13by $5 million, or 22%5%, to $46 million for the first quarter of 2020 from $59$97 million in the first quarter of 2019, primarily associated withsix months ended June 30, 2020, compared to $102 million in the six months ended June 30, 2019. The decrease was due to lower gross profit and increased SG&A, expenses mentioned above.

as noted above, partially offset by a lower share of EBIT attributable to noncontrolling interests.

Milling Products Segment -

Three Months Ended
June 30,		Six Months Ended
June 30,
(US$ in millions, except volumes)2020201920202019
Volumes (in thousand metric tons)1,127  1,113  2,275  2,218  
Net sales$381  $430  $797  $856  
Cost of goods sold(330) (389) (700) (767) 
Gross profit51  41  97  89  
Selling, general and administrative expense(22) (25) (48) (51) 
Foreign exchange gains (losses)1  1  —  3  
EBIT attributable to noncontrolling interests—  —  —  —  
Other income (expense) – net—  8  (1) 6  
Income (loss) from affiliates—  —  —  —  
Total Milling Products Segment EBIT$30  $25  $48  $47  
Three Months Ended June 30, 2020 Compared to Three Months Ended June 30, 2019

Milling Products segment net sales decreased $10$49 million, or 2%11%, to $416$381 million in the firstsecond quarter of 2020, compared to $426$430 million in the first quarter of 2019. The decrease was primarily driven by lower prices across all regions, which more than offset higher volumes in all regions except Mexico.

Cost of goods sold decreased $8 million, or 2%, to $370 million for the first quarter of 2020 compared to $378 million in the first quarter of 2019. The decrease was primarily was in line with the decrease in net sales above.

Gross profit decreased $2 million, or 4%, to $46 million in the first quarter of 2020 compared to $48 million in the firstsecond quarter of 2019. The decrease was primarily due to lower average wheat sales prices across all regions, which more than offset higherin Mexico and South America. Sales volumes in all regions except Mexico.were relatively flat.

SG&A expensesCost of $26goods sold decreased $59 million, or 15%, to $330 million in the first quarter of 2020 were flat compared to the first quarter of 2019.

Segment EBIT decreased $4 million, or 18%, to $18 million in the firstsecond quarter of 2020, compared to $22$389 million in the firstsecond quarter of 2019. The decrease was primarily due to lower average raw material commodity prices, across all regions,in line with the decrease in net sales above, as well as favorable translation impacts on industrial costs, as the Brazilian real and Mexican peso, in which many such costs are denominated, bothdepreciated versus the U.S. dollar
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during the quarter. Additionally, cost of goods sold in the prior year was negatively impacted by an impairment charge recorded in respect of our U.S. extrusion business, which was sold in the second quarter of 2020.

Gross profit increased $10 million, or 24%, to $51 million in the second quarter of 2020, compared to $41 million in the second quarter of 2019. The increase was primarily due to a decrease in cost of goods sold in excess of that in net sales, as described above.

SG&A expenses decreased $3 million, or 12%, to $22 million in the second quarter of 2020, compared to $25 million in the same period a year ago. The decrease was primarily due to favorable translation impacts, following the depreciation of the Brazilian real and Mexican peso versus the U.S. dollar in the quarter.

Other income (expense) - net decreased by $8 million, or 100%, to zero in the second quarter of 2020, compared to income of $8 million in the second quarter of 2019. The decrease is primarily due to a one-time gain recorded on the settlement of an arbitration case in the prior year.

Segment EBIT increased $5 million, or 20%, to $30 million in the second quarter of 2020,compared to $25 million in the second quarter of 2019. The increase was due to higher gross profit and lower SG&A expenses, as described above.

Six Months Ended June 30, 2020 Compared to Six Months Ended June 30, 2019

Milling Products segment net sales decreased by $59 million, or 7%, to $797 million in the six months ended June 30, 2020, compared to $856 million in the six months ended June 30, 2019. The decrease was primarily due to lower average wheat sales prices in Mexico and South America, which more than offset a slight volume increase.

Cost of goods sold decreased by $67 million, or 9%, to $700 million in the six months ended June 30, 2020, compared to $767 million in the six months ended June 30, 2019. The decrease was primarily due to lower average raw material commodity prices, in line with the decrease in net sales above, as well as favorable translation impacts on industrial costs, as the Brazilian real and Mexican peso, in which many such costs are denominated, bothdepreciated versus the U.S. dollar during the year. Additionally, cost of goods sold in the prior year was negatively impacted by an impairment charge associated with our U.S. extrusion business, which was sold in the second quarter of 2020.

Gross profit increased by $8 million, or 9%, to $97 million in the six months ended June 30, 2020, compared to $89 million in the six months ended June 30, 2019. The increase was primarily due to a decrease in cost of goods sold in excess of a decrease in net sales, as described above.

SG&A expenses decreased by $3 million, or 6%, to $48 million in the six months ended June 30, 2020, compared to $51 million in the six months ended June 30, 2019. The decrease is primarily due to lower expenses associated with COVID-19 travel restrictions, as well as favorable translation impacts following the depreciation of the Brazilian real and Mexican peso, versus the U.S. dollar during the quarter.

Other income (expense) - net decreased by $7 million, or 117%, to an expense of $1 million in the six months ended June 30, 2020, compared to income of $6 million in the six months ended June 30, 2019. The decrease is primarily due to a one-time gain on the settlement of an arbitration case in the prior year.

Segment EBIT increased by $1 million, or 2%, to $48 million in the six months ended June 30, 2020, compared to $47 million in the six months ended June 30, 2019. The slight increase was due to higher gross profit and lower SG&A expenses, offset by lower Other income (expense) - net, as described above.


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Fertilizer Segment

Three Months Ended
June 30,		Six Months Ended
June 30,
(US$ in millions, except volumes)2020201920202019
Volumes (in thousand metric tons)375  305  551  501  
Net sales$117  $108  $171  $177  
Cost of goods sold(95) (97) (140) (161) 
Gross profit22  11  31  16  
Selling, general and administrative expense(3) (4) (7) (7) 
Foreign exchange gains (losses)—  —  —  —  
EBIT attributable to noncontrolling interests—  —  —  —  
Other income (expense) – net—  (1) —  (1) 
Income (loss) from affiliates—  —  —  —  
Total Fertilizer Segment EBIT$19  $6  $24  $8  
Three Months Ended June 30, 2020 Compared to Three Months Ended June 30, 2019
Fertilizer segment net sales increased $9 million, or 8%, to $117 million in the second quarter of 2020, compared to $108 million in the second quarter of 2019. The increase was primarily due to higher sales volumes and average sales prices in Argentina, as farmers accelerated purchases in anticipation of higher local prices, as well as higher sales volumes in all regions except Mexico.

Brazil, partially offset by lower average sales prices in Brazil.
Cost of goods sold decreased $2 million, or 2%, to $95 million in the second quarter of 2020, compared to $97 million in the second quarter of 2019. The decrease was due to lower average raw material costs in Argentina and Brazil, as well as favorable translation impacts on industrial costs, as the Brazilian real and Argentinian peso, in which many such costs are denominated, bothdepreciated versus the U.S. dollar in the quarter.
Gross profit increased $11 million, or 100%, to $22 million in the second quarter of 2020, compared to $11 million in the second quarter of 2019. The increase was due to a combination of higher net sales and lower cost of goods sold, as described above.
SG&A expenses decreased $1 million, or 25%, to $3 million in the second quarter of 2020, compared to $4 million in the second quarter of 2019. The decrease was mainly due to favorable translation impacts following the depreciation of the Brazilian real and Argentinian peso versus the U.S. dollar in the quarter.
        Segment EBIT increased $13 million, or 217%, to $19 million in the second quarter of 2020, compared to $6 million in the second quarter of 2019. The increase was due to higher gross profits and lower SG&A expenses, as described above.
Six Months Ended June 30, 2020 Compared to Six Months Ended June 30, 2019
Fertilizer segment net sales decreased by $6 million, or 3%, to $171 million in the six months ended June 30, 2020, compared to $177 million in the six months ended June 30, 2019. The decrease was due to lower average prices in Argentina and Brazil, primarily during the first quarter, partially offset by higher sales volumes in Argentina, especially in the second quarter.
Cost of goods sold decreased by $21 million, or 13%, to $140 million in the six months ended June 30, 2020, compared to $161 million in the six months ended June 30, 2019. The decrease was primarily due to lower average raw material costs in Argentina and Brazil, as well as favorable translation impacts on industrial costs, as the Brazilian real and Argentinian peso, in which many such costs are denominated, bothdepreciated versus the U.S. dollar in the six month period.
Gross profit increased by $15 million, or 94%, to $31 million in the six months ended June 30, 2020, compared to $16 million in the six months ended June 30, 2019. The increase was primarily due to lower cost of goods sold in excess of lower net sales, as described above.
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SG&A expenses were flat at $7 million in the six months ended June 30, 2020 and $7 million in the six months ended June 30, 2019, as higher bad debt expenses in the first quarter of 2020 offset favorable translation impacts in the second quarter of 2020.
        Segment EBIT increased by $16 million, or 200%, to $24 million in the six months ended June 30, 2020, compared to $8 million in the six months ended June 30, 2019. The increase was due to higher gross profit and lower SG&A expenses, as described above.
Corporate and Other
Three Months Ended
June 30,		Six Months Ended
June 30,
(US$ in millions, except volumes)2020201920202019
Net sales$—  $—  $—  $—  
Cost of goods sold1  3  1  11  
Gross profit1  3  1  11  
Selling, general and administrative expense(119) (80) (183) (148) 
Foreign exchange gains (losses)—  —  1  1  
EBIT attributable to noncontrolling interests—  —  —  —  
Other income (expense) – net(2) 153  (1) 158  
Income (loss) from affiliates—  —  —  —  
Total Corporate and Other$(120) $76  $(182) $22  

Three Months Ended June 30, 2020 Compared to Three Months Ended June 30, 2019
Segment EBIT decreased $196 million, or 258%, to a loss of $120 million in the second quarter of 2020, compared to income of $76 million in the second quarter of 2019. The decrease is primarily due to lower results from our corporate venture capital unit, which benefited from the initial public offering of one of its investments, and subsequent mark-to-market gains, in the prior year, as well as a bad debt reserve and related legal provision in relation to a disputed account receivable balance stemming from an historical business dating back to 2015, which was deemed uncollectible in the current period.
Six Months Ended June 30, 2020 Compared to Six Months Ended June 30, 2019
Segment EBIT decreased by $204 million, or 927%, to a loss of $182 million in the six months ended June 30, 2020, compared to income of $22 million in the six months ended June 30, 2019. The decrease is primarily due to lower results from our corporate venture capital unit, which benefited from the initial public offering of one of its investments, and subsequent mark-to-market gains in the prior year period, as well as a bad debt reserve and related legal provision in relation to a disputed account receivable balance stemming from an historical business dating back to 2015, which deemed uncollectible in the current period.

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Sugar and Bioenergy Segment -
Three Months Ended
June 30,		Six Months Ended
June 30,
(US$ in millions, except volumes)2020201920202019
Volumes (in thousand metric tons)62  828  148  1,644  
Net sales$26  $284  $76  $569  
Cost of goods sold(26) (280) (74) (568) 
Gross profit—  4  2  1  
Selling, general and administrative expense—  (8) (1) (20) 
Foreign exchange gains (losses)—  1  —  (2) 
EBIT attributable to noncontrolling interests—  1  —  —  
Other income (expense) – net—  (2) —  (2) 
Income (loss) from affiliates(85) (1) (136) (1) 
Total Sugar and Bioenergy Segment EBIT$(85) $(5) $(135) $(24) 

Three Months Ended June 30, 2020 Compared to Three Months Ended June 30, 2019
Sugar and Bioenergy segment net sales decreased $235$258 million, or 82%91%, to $50$26 million in the firstsecond quarter of 2020, compared to $285$284 million in the firstsecond quarter of 2019. The decrease was primarily due to the contribution of our Brazilian sugar and bioenergy operations, comprising the majority of our Sugar and Bioenergy segment, into the Joint Venture during the fourth quarter of 2019. Remaining sales comprise corn-based ethanol distribution activities in North America.
Cost of goods sold decreased $254 million, or 91%, to $26 million in the second quarter of 2020, compared to $280 million in the second quarter of 2019. The decrease was in line with the decrease in net sales above, and is due to the contribution of our Brazilian sugar and bioenergy operations, comprising the majority of our Sugar and Bioenergy segment, into the Joint Venture during the fourth quarter of 2019. Remaining cost of goods sold comprise corn-based ethanol distribution activities in North America.
Gross profit decreased $4 million, or 100%, to zero in the second quarter of 2020, compared to income of $4 million in the second quarter of 2019. The decrease is due to lower net sales and cost of goods sold, as described above.
SG&A expenses decreased by $8 million, or 100%, to zero in the second quarter of 2020, compared to $8 million in the second quarter of 2019. The decrease was due to contribution of our Brazilian sugar and bioenergy operations, comprising the majority of our Sugar and Bioenergy segment, into the Joint Venture during the fourth quarter of 2019.
Income (loss) from affiliates decreased $84 million, to a loss of $85 million in the second quarter of 2020, compared to a loss of $1 million in the second quarter of 2019. The decrease is due to our share of losses associated with the Joint Venture. The main drivers of the loss of the Joint Venture were significant foreign exchange losses on U.S. dollar denominated debt, due to a large depreciation in the Brazilian real in the quarter, as well as operating losses driven by lower ethanol volumes and prices associated with lower global crude oil demand in the wake of COVID-19 travel restrictions.
Segment EBIT decreased $80 million, or 1,600%, to a loss of $85 million in the second quarter of 2020, compared to a loss of $5 million in the second quarter of 2019. The decrease is due to a large decrease in income (loss) from affiliates, as described above.
Six Months Ended June 30, 2020 Compared to Six Months Ended June 30, 2019
Sugar and Bioenergy segment net sales decreased by $493 million, or 87%, to $76 million in the six months ended June 30, 2020, compared to $569 million in the six months ended June 30, 2019. The decrease in sales was primarily due to the contribution of our Brazilian sugar and bioenergy operations, comprising the majority of our Sugar and Bioenergy segment, into a joint venture with the Brazilian biofuels business of BP inJoint Venture during the fourth quarter of 2019.

Cost of goods sold decreased $239by $494 million, or 83%87%, to $48$74 million in the first quarter ofsix months ended June 30, 2020, compared to $287$568 million in the first quarter ofsix months ended June 30, 2019. The decreaseddecrease was in line with the decrease in net sales
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above, and is due to the contribution of our Brazilian sugar and bioenergy operations, comprising the majority of our Sugar and Bioenergy segment, into a joint venture with the Brazilian biofuels business of BP inJoint Venture during the fourth quarter of 2019.

Gross profit increased $4by $1 million, or 200%100%, to income of $2 million in the first quarter ofsix months ended June 30, 2020, from a loss of $2compared to $1 million in the first quarter ofsix months ended June 30, 2019. The increasedecrease is driven by increased profits on marginal ethanol trading activitieslower cost of goods sold in North America.

excess of lower sales, as described above.
SG&A expenses decreased by $11$19 million, or 92%95%, to $1 million in the first quarter ofsix months ended June 30, 2020, compared to $12$20 million in the first quarter of 2019. The decrease was primarily associated with the contribution of our Brazilian sugar and bioenergy operations, comprising the majority of our Sugar and Bioenergy segment, into a joint venture with the Brazilian biofuels business of BP in the fourth quarter of 2019.

Other income (expense) - net was expense of $51 million of in the first quarter of 2020 compared to zero in the first quarter of 2019. The increase in expense is due to the contribution of our Brazilian sugar and bioenergy operations, comprising the majority of our Sugar and Bioenergy segment, into a joint venture with the Brazilian biofuels business of BP in the fourth quarter of 2019, for which our share of result is accounted for in Other income (expense) - net. The Joint Venture's net loss for the quarter includes $25 million in foreign exchange losses on US dollar denominated debt of the Joint Venture due to depreciation of the Brazilian real.

Segment EBIT decreased $31 million, or 163%, to a loss of $50 million in the first quarter of 2020 compared to a loss of $19 million in the first quarter ofsix months ended June 30, 2019. The decrease was primarily due to the contribution of our Brazilian sugar and bioenergy operations, comprising the majority of our Sugar and Bioenergy segment, into a joint venture with the Brazilian biofuels business of BP inJoint Venture during the fourth quarter of 2019, as discussed above.

2019.
Fertilizer Segment - Fertilizer segment net salesIncome (loss) from affiliates decreased $15$135 million, or 22%, to $54a loss of $136 million in the first quartersix months ended June 30, 2020, from a loss of 2020, compared to $69$1 million infor the first quarter ofsix months ended June 30, 2019. The decrease was primarilyis due to our share of losses associated with our investment in the Joint Venture. The main drivers of the loss of the joint venture were significant foreign exchange losses on U.S. dollar denominated debt, due to a large depreciation in the Brazilian real in the six months ended June 30, 2020, as well as operating losses driven by lower ethanol volumes and prices in Argentina.

Cost of goods sold decreased $19 million, or 30%, to $45 millionassociated with lower global crude oil demand in the first quarterwake of 2020, from $64 million in the first quarter of 2019 due to lower purchase prices in excess of lower sales prices in Argentina and Brazil, as well as lower industrial costs associated depreciation of the Brazilian COVID-19 travel restrictions.real in the current quarter.

Gross profit increased $4 million, or 80%, to $9 million in the first quarter of 2020 compared to $5 million in the first quarter of 2019. The increase was mainly due to lower costs of goods sold.

SG&A expenses increased $1 million, or 33%, to $4 million in the first quarter of 2020 compared to $3 million in the first quarter of 2019. The increase was mainly due to higher bad debt expense in the current quarter.
Segment EBIT increased $3decreased by $111 million, or 150%, to $5 million in the first quarter of 2020 compared to $2 million in the first quarter of 2019. The increase was primarily due to higher gross profit, partially offset by higher SG&A expenses.

Corporate and Other - EBIT decreased $8 million, or 15%463%, to a loss of $62$135 million in the first quarter ofsix months ended June 30, 2020, compared to a loss of $54$24 million in the same period a year ago.six months ended June 30, 2019. The decrease is primarily driven by lower results from our captive insurance and securitization activities, partially offset by lower SG&A expenses due to ongoing savings captured during the GCP, which concluded at the end of 2019.a large decrease in income (loss) from affiliates, as described above.
Interest - A summary of consolidated interest income and expense follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
(US$ in millions)2020201920202019
Interest income$6  $7  $13  $14  
Interest expense(62) (88) (139) (163) 
  Three Months Ended
March 31,
(US$ in millions) 2020 2019
Interest income $7
 $7
Interest expense (77) (75)

Interest income was $7$6 million in the firstsecond quarter of 2020, compared to $7 million in the firstsecond quarter of 2019. Interest expense increaseddecreased by $2$26 million, 3%or 30%, to $77$62 million in the firstsecond quarter of 2020, compared to $75$88 million in the firstsecond quarter of 20192019. The decrease in net interest expense was due to lower average debt levels following the contribution of our Brazilian sugar and bioenergy operations, comprising the majority of our Sugar and Bioenergy segment, into the Joint Venture during the fourth quarter of 2019.

Interest income was $13 million in the six months ended June 30, 2020, compared to $14 million in the six months ended June 30, 2019. Interest expense decreased by $24 million, or 15%, to $139 million in the six months ended June 30, 2020, compared to $163 million in the six months ended June 30, 2019. The decrease in net interest payable onexpense was due to lower variable interest rates in the settlement of an arbitration matter in Brazil,six months ended June 30, 2020, as well as foreign currency borrowings in certain locations with higher interest rates.lower average debt levels following the contribution of our Brazilian sugar and bioenergy operations, and related debt, to the Joint Venture, during the fourth quarter of 2019.
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Liquidity and Capital Resources
Liquidity
Our main financial objectives are to prudently manage financial risks, ensure consistent access to liquidity and minimize cost of capital in order to efficiently finance our business and maintain balance sheet strength. We generally finance our ongoing operations with cash flows generated from operations, issuance of commercial paper, borrowings under various bilateral and syndicated revolving credit facilities, term loans and proceeds from the issuance of senior notes. Acquisitions and long-lived assets are generally financed with a combination of equity and long-term debt.
OurWorking Capital
As of
US$ in millions, except current ratioJune 30, 2020June 30, 2019December 31, 2019
Cash and cash equivalents$277  $238  $320  
Trade accounts receivable, net1,526  1,711  1,705  
Inventories6,007  5,875  5,038  
Other current assets(1)
3,658  3,283  3,185  
Total current assets$11,468  $11,107  $10,248  
Short-term debt$1,535  $1,885  $771  
Current portion of long-term debt522  424  507  
Trade accounts payable2,602  3,053  2,842  
Current operating lease obligations220  231  216  
Other current liabilities(2)
2,617  1,864  2,259  
Total current liabilities$7,496  $7,457  $6,595  
Working capital(3)
$3,972  $3,650  $3,653  
Current ratio(3)
1.53  1.49  1.55  
(1) Includes assets held for sale and other current assets.
(2) Includes liabilities held for sale and other current liabilities.
(3) Working capital is total current assets less total current liabilities; current ratio which is a widely used measure of liquidity and is defined asrepresents total current assets divided by total current liabilities,liabilities.
Working capital was 1.38 and 1.55$3,972 million at March 31,June 30, 2020, andan increase of $319 million, or 9%, from working capital of $3,653 million at December 31, 2019, respectively.and an increase of $322 million, or 9% from working capital of $3,650 million at June 30, 2019.
Cash and Cash Equivalents - Cash and cash equivalents were $193$277 million andat June 30, 2020, a decrease of $43 million from $320 million at March 31, 2020 and December 31, 2019, respectively.and an increase of $39 million from $238 million at June 30, 2019. Cash balances are managed in accordance with our investment policy, the objectives of which are to preserve the principal value of our cash assets, maintain a high degree of liquidity and deliver competitive returns subject to prevailing market conditions. Cash balances are typically invested in short term deposits with highly-rated financial institutions and in U.S. government securities.
Readily Marketable Trade accounts receivable, net - Trade accounts receivable, net were $1,526 million at June 30, 2020, a decrease of $179 million from $1,705 million at December 31, 2019, and a decrease of $185 million from $1,711 million at June 30, 2019. The decreases from December 31, 2019 and June 30, 2019 are primarily due to negative foreign exchange impacts in Brazil, the recording of a bad debt reserve in relation to collection proceedings involving an historical outstanding account receivable due from a customer, and the timing of collections in our fertilizer business in South America.
Inventories (“RMI”) - Inventories were $6,007 million at June 30, 2020, an increase of $969 million from $5,038 million at December 31, 2019, and an increase of $132 million from inventory of $5,875 million at June 30, 2019. The increase from December 31, 2019 is primarily related to an increase in RMI arecoinciding with the timing of the South American harvest, and accelerated inventory purchases following a strong willingness of local farmers to sell agricultural commodity products priced in U.S. dollars, in response to a depreciation in local currencies versus the U.S. dollar.
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RMI comprises agricultural commodity inventories, such as soybeans, soybean meal, soybean oil, corn, and wheat that are readily convertible to cash because of their commodity characteristics, widely available markets and international pricing mechanisms. Total RMI reported at fair value were $4,279was $4,807 million andand $3,934 million at March 31,June 30, 2020 and December 31, 2019, respectively (see Note 7 - Inventories, to our condensed consolidated financial statements).
Other current assets - Other current assets were $3,658 million at June 30, 2020, an increase of $473 million from $3,185 million at December 31, 2019, and an increase of $375 million from $3,283 million at June 30, 2019. The increase in Other current assets at June 30, 2020 is primarily due to unrealized gains on derivative contracts and the reclassification of certain U.S. grain assets as held for sale (see Note 3 - Portfolio Rationalization Initiatives, to our condensed consolidated financial statements).
Short term debt - Short term debt was $1,535 million at June 30, 2020, an increase of $764 million from $771 million at December 31, 2019, and a decrease of $350 million from $1,885 million at June 30, 2019. The increase in short term debt from December 31, 2019 was primarily to fund higher average working capital levels, primarily increased RMI. The decrease from June 30, 2019 is primarily due to lower debt levels following the sale of the Company's Brazilian sugar and bioenergy assets, forming the majority of its Sugar and Bioenergy segment in late 2019, offset by higher average working capital funding requirements, as described above.
Trade accounts payable - Trade accounts payable were $2,602 million at June 30, 2020, a decrease of $240 million from $2,842 million at December 31, 2019, and a decrease of $451 million from $3,053 million at June 30, 2019. The decrease in Trade accounts payable from December 31, 2019 and June 30, 2019 is due to the reclassification of certain liabilities associated with U.S. grain liabilities as held for sale, as well as the timing of payments on account.
Other current liabilities - Other current liabilities were $2,617 million at June 30, 2020, a increase of $358 million from $2,259 million at December 31, 2019, and an increase of $753 million from $1,864 million at June 30, 2019. The increases from December 31, 2019 and June 30, 2019 are primarily due to unrealized losses on derivative contracts and liabilities held for sale (see Note 3 - Portfolio Rationalization Initiatives, to our condensed consolidated financial statements).
Debt
Financing Arrangements and Outstanding Indebtedness - We conduct most of our financing activities through a centralized financing structure that provides the companyCompany with efficient access to debt and capital markets. This structure includes a master trust, the primary assets of which consist of intercompany loans made to Bunge Limited and its subsidiaries. Certain of Bunge Limited’s 100% owned finance subsidiaries, Bunge Limited Finance Corp., Bunge Finance Europe B.V. and Bunge Asset Funding Corp., fund the master trust with short and long-term debt obtained from third parties, including through our commercial paper program and certain credit facilities, as well as the issuance of senior notes. Borrowings by these finance subsidiaries carry full, unconditional guarantees by Bunge Limited.
Revolving Credit Facilities - At March 31,June 30, 2020, we had approximately $4,315 million of aggregate committed borrowing capacity under our commercial paper program and various revolving bilateral and syndicated credit facilities, all of which $3,617 million was unused and available. The following table summarizes these facilities as of the periods presented:
(US$ in millions)   
Total Committed
Capacity
 Borrowings Outstanding
Commercial Paper Program
and Revolving Credit Facilities
 Maturities March 31,
2020		 March 31,
2020		 December 31,
2019
Commercial paper 2023 $600
 $—
 $—
Long-term revolving credit facilities (1)
 2022 - 2023 $3,715
 —
 —
Total   $4,315
 $—
 $—
(US$ in millions) Total Committed
Capacity		Borrowings Outstanding
Commercial Paper Program
and Revolving Credit Facilities		MaturitiesJune 30,
2020		June 30,
2020		December 31,
2019
Commercial paper2023$600  $498  $—  
Long-term revolving credit facilities (1)
2022 - 2023$3,715  200  —  
Total $4,315  $698  $—  
(1)
Borrowings under the revolving credit facilities that have maturities greater than one year from the date of the condensed consolidated balance sheets are classified as long-term debt, consistent with the long-term maturity of the underlying facilities. However, individual borrowings under the revolving credit facilities are generally short-term in nature, bear interest at variable rates and can be repaid or renewed as each such individual borrowing matures.
(1)Borrowings under the revolving credit facilities that have maturities greater than one year from the date of the condensed consolidated balance sheets are classified as long-term debt, consistent with the long-term maturity of the underlying facilities. However, individual borrowings under the revolving credit facilities are generally short-term in nature, bear interest at variable rates and can be repaid or renewed as each such individual borrowing matures.
We had no borrowings outstanding at March 31,June 30, 2020 under our unsecured $1,100 million five-year syndicated revolving credit agreement (the "Credit Agreement") with certain lenders party thereto maturing December 14, 2023. We have the option to request an extension of the maturity date of the Credit Agreement for two additional one-year periods,
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subject to the consent of the lenders. Borrowings under the Credit Agreement will bear interest at LIBOR plus a margin, which will vary from 1.00% to 1.625%, based on the credit ratings of our senior long-term unsecured debt ("Rating Level"). Amounts under the Credit Agreement that remain undrawn are subject to a commitment fee at rates ranging from 0.09% to 0.225%, varying based on the Rating Level. We may, from time to time, request one or more of the existing lenders or new lenders to increase the total commitments under the Credit Agreement by up to $200 million pursuant to an accordion provision.
We had no$200 million of borrowings outstanding at March 31,June 30, 2020 under our $1,750 million unsecured syndicated revolving credit facility with certain lenders party thereto maturing December 12, 2022 (the ‘‘$1.75 Billion 2022 Facility’’). Borrowings under

the $1.75 Billion 2022 Facility bear interest at LIBOR plus a margin, which will vary from 0.30% to 1.30% per annum, based on the credit ratings of our senior long-term unsecured debt. The applicable margin is also subject to certain premiums or discounts tied to criteria determined by certain sustainability targets. We also pay a fee that varies from 0.10% to 0.40% per annum, based on the utilization of the $1.75 Billion 2022 Facility. Amounts under the $1.75 Billion 2022 Facility that remain undrawn are subject to a commitment fee payable quarterly in arrears at a rate of 35% of the margin specified above, which varies based on the rating level at each quarterly payment date. We may, from time to time, with the consent of the facility agent, request one or more of the existing lenders or new lenders to increase the total commitments under the $1.75 Billion 2022 Facility by up to $250 million pursuant to an accordion provision.
We had no borrowings outstanding at March 31,June 30, 2020 under our unsecured $865 million revolving credit facility, maturing September 6, 2022 (the "$865 Million 2022 Facility"). Borrowings under the $865 Million 2022 Facility bear interest at LIBOR plus a margin, which will vary from 1.00% to 1.75% per annum, based on the credit ratings of our senior long-term unsecured debt. Amounts under the $865 Million 2022 Facility that remain undrawn are subject to a commitment fee payable quarterly based on the average undrawn portion of the $865 Million 2022 Facility at rates ranging from 0.125% to 0.275%, based on the credit ratings of our senior long-term unsecured debt.
Our commercial paper program is supported by committed back-up bank credit lines (the ‘‘Liquidity Facility’’) equal to the amount of the commercial paper program provided by lending institutions that are required to be rated at least A-1 by Standard & Poor’s and P-1 by Moody’s Investor Services. The cost of borrowing under the Liquidity Facility would typically be higher than the cost of issuance under our commercial paper program. At March 31,June 30, 2020, no$498 million of borrowings were outstanding under the commercial paper program and no borrowings were outstanding under the Liquidity Facility. The Liquidity Facility is our only revolving credit facility that requires lenders to maintain minimum credit ratings.
In addition to committed credit facilities, from time to time, through our financing subsidiaries, we enter into bilateral short-term credit lines as necessary based on our financing requirements. At March 31,June 30, 2020 there were no$451 million of borrowings outstanding under these bilateral short-term credit lines.
Short and long-term debt - Our short and long-term debt increased by $4$1,043 million, or 0.1%20.9%, to $4,998$6,037 million at March 31,June 30, 2020, from $4,994 million at December 31, 2019, primarily due to the funding of working capital requirements. For the threesix months ended March 31,June 30, 2020, our average short and long-term debt outstanding was approximately $4,975$5,395 million, compared to approximately $6,007$6,159 million for the threesix months ended at March 31,June 30, 2019. Our long-term debt balance was $4,262$4,502 million at March 31,June 30, 2020, compared to $4,223 million at December 31, 2019, an increase of $39$279 million, or 0.9%6.6%. The following table summarizes our short-term debt at March 31,June 30, 2020.
(US$ in millions) Outstanding
Balance at March 31, 2020		 Weighted Average
Interest Rate at
March 31, 2020		 Highest Balance
Outstanding During
Quarter Ended March 31, 2020		 Average Balance
During Quarter Ended March 31, 2020		 Weighted Average
Interest Rate
During Quarter Ended March 30, 2020		(US$ in millions)Outstanding
Balance at
June 30, 2020		Weighted Average
Interest Rate at
June 30, 2020		Highest Balance
Outstanding During
Quarter Ended June 30, 2020		Average Balance
During Quarter Ended
June 30, 2020		Weighted Average
Interest Rate
During Quarter Ended June 30, 2020
Bank borrowings (1)
 $736
 14.30% $771
 $733
 12.48%
Bank borrowings (1)
$1,037  6.44 %$1,069  $918  9.34 %
Commercial paper —
 —% —
 —
 —%Commercial paper498  1.04 %599  347  0.98 %
Total $736
 

 $771
 $733
 

Total$1,535  $1,668  $1,265  
(1)Includes $402 million of local currency bank borrowings in certain Central and Eastern European, South American, and Asia Pacific countries at a weighted average interest rate of 24.21% as of March 31, 2020.


(1) Includes $310 million of local currency bank borrowings in certain Central and Eastern European, South American, and Asia Pacific countries at a weighted average interest rate of 18.55% as of June 30, 2020.

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The following table summarizes our short and long-term indebtedness:
(US$ in millions) March 31,
2020
December 31,
2019
Short-term debt: (1)
    
Short-term debt (2)
 $736
 $771
Current portion of long-term debt 509
 507
Total short-term debt 1,245
 1,278
     
Long-term debt (3):
  
  
Term loan due 2024 - three-month Yen LIBOR plus 0.75% (Tranche A)

 283
 281
Term loan due 2024 - three-month LIBOR plus 1.30% (Tranche B)

 89
 89
3.50% Senior Notes due 2020 499
 499
3.00% Senior Notes due 2022 398
 398
1.85% Senior Notes due 2023 - Euro
 876
 899
4.35% Senior Notes due 2024 596
 596
3.25% Senior Notes due 2026 696
 696
3.75% Senior Notes due 2027 595
 595
Other 230
 170
Subtotal 4,262
 4,223
Less: Current portion of long-term debt (509) (507)
Total long-term debt 3,753
 3,716
Total debt $4,998
 $4,994
(US$ in millions)June 30,
2020		December 31,
2019
Short-term debt: (1)
 
Short-term debt (2)
$1,535  $771  
Current portion of long-term debt522  507  
Total short-term debt2,057  1,278  
Long-term debt (3):
  
Revolving credit facility expiry 2022200  —  
Term loan due 2024 - three-month Yen LIBOR plus 0.75% (Tranche A)285  281  
Term loan due 2024 - three-month LIBOR plus 1.30% (Tranche B)89  89  
3.50% Senior Notes due 2020500  499  
3.00% Senior Notes due 2022398  398  
1.85% Senior Notes due 2023 - Euro
896  899  
4.35% Senior Notes due 2024596  596  
3.25% Senior Notes due 2026696  696  
3.75% Senior Notes due 2027595  595  
Other247  170  
Subtotal4,502  4,223  
Less: Current portion of long-term debt(522) (507) 
Total long-term debt3,980  3,716  
Total debt$6,037  $4,994  
(1)
(1) Includes secured debt of $13 million and $1 million at June 30, 2020 and December 31, 2019, respectively.
(2) Includes $310 million and $348 million of local currency bank borrowings in certain Central and Eastern European, South American and Asia-Pacific countries at a weighted average interest rate of 18.55% and 27.16% as of June 30, 2020 and December 31, 2019, respectively.
(3) Includes secured debt of $9 million and $15 million at June 30, 2020 and December 31, 2019, respectively.
Includes secured debt of $1 million and $1 million at March 31, 2020 and December 31, 2019, respectively.
(2)
Includes $402 million and $348 million of local currency bank borrowings in certain Central and Eastern European, South American and Asia-Pacific countries at a weighted average interest rate of 24.21% and 27.16% as of March 31, 2020 and December 31, 2019, respectively.
(3)
Includes secured debt of $11 million and $15 million at March 31, 2020 and December 31, 2019, respectively.

Credit Ratings — Bunge’s debt ratings and outlook by major credit rating agencies at March 31,June 30, 2020 waswere as follows:
Short-term
Debt (1)
Long-term

Debt
Outlook
Standard & Poor’sA-1BBBNegative
Moody’sP-1Baa3Stable
FitchF1BBB-Stable
(1)Short-term debt rating applies only to Bunge Asset Funding Corp., the issuer under our commercial paper program.
(1) Short-term debt rating applies only to Bunge Asset Funding Corp., the issuer under our commercial paper program.
Our debt agreements do not have any credit rating downgrade triggers that would accelerate maturity of our debt. However, credit rating downgrades would increase our borrowing costs under our syndicated credit facilities and, depending on their severity, could impede our ability to obtain credit facilities or access the capital markets in the future on competitive terms. A significant increase in our borrowing costs could impair our ability to compete effectively in our business relative to competitors with higher credit ratings.
Our credit facilities and certain senior notes require us to comply with specified financial covenants including minimum net worth, minimum current ratio, a maximum debt to capitalization ratio and limitations on secured indebtedness. We were in compliance with these covenants as of March 31,June 30, 2020.

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Trade Receivable Securitization Program - We participate in an $800 million trade receivable securitization program (the "Program"), which provides us with an additional sourceTable of liquidity. The Program terminates on May 26, 2021, however, each committed purchaser's commitment to fund trade receivables sold under the Program will terminate on May 26, 2020 unless extended in accordance with the terms of the receivables transfer agreement.Contents
Equity
Total equity is set forth in the following table:
(US$ in millions) March 31,
2020
December 31, 2019(US$ in millions)June 30,
2020		December 31, 2019
Equity:  
  
Equity:  
Convertible perpetual preference shares $690
 $690
Convertible perpetual preference shares$690  $690  
Common shares 1
 1
Common shares1  1  
Additional paid-in capital 5,344
 5,329
Additional paid-in capital5,356  5,329  
Retained earnings 6,158
 6,437
Retained earnings6,581  6,437  
Accumulated other comprehensive income (loss) (6,411) (5,624)Accumulated other comprehensive income (loss)(6,515) (5,624) 
Treasury shares, at cost - 2020 and 2019 - 12,882,313 shares (920) (920)
Treasury shares, at cost - 2020 - 15,428,313 and 2019 - 12,882,313 sharesTreasury shares, at cost - 2020 - 15,428,313 and 2019 - 12,882,313 shares(1,020) (920) 
Total Bunge shareholders’ equity 4,862
 5,913
Total Bunge shareholders’ equity5,093  5,913  
Noncontrolling interest 110
 117
Noncontrolling interest116  117  
Total equity $4,972
 $6,030
Total equity$5,209  $6,030  
Total Bunge shareholders’ equity was $4,862$5,093 million at March 31,June 30, 2020, compared to $5,913 million at December 31, 2019.2019, a decrease of $820 million. The decrease during the threesix months ended March 31,June 30, 2020 was primarily due to $184 million of net loss attributable to Bunge, $787$891 million translation losses, and $71$142 million and $8$17 million of declared dividends to common and preferred shareholders, respectively.
Noncontrolling interest decreasedrespectively, and $100 million of common share repurchases, partially offset by $332 million of net income attributable to $110 million at March 31, 2020 from $117 million at December 31, 2019. The decrease during the three months ended March 31, 2020 was primarily due to translation adjustments and dividends paid to noncontrolling interest entities.Bunge.
As of March 31,June 30, 2020, we had 6,899,683 of 4.875% cumulative convertible perpetual preference shares outstanding with an aggregate liquidation preference of $690 million. Each convertible perpetual preference share has an initial liquidation preference of $100, which will be adjusted for any accumulated and unpaid dividends. The convertible perpetual preference shares carry an annual dividend of $4.875 per share, payable quarterly. As a result of adjustments made to the initial conversion price because cash dividends paid on Bunge Limited’s common shares exceeded certain specified thresholds, each convertible perpetual preference share is convertible, at the holder’s option, at any time into 1.23001.2421 Bunge Limited common shares, based on the conversion price of $81.2982$80.5082 per share, subject to certain additional anti-dilution adjustments (which represents 8,486,6108,570,096 Bunge Limited common shares at March 31,June 30, 2020). At any time, if the closing price of our common shares equals or exceeds 130% of the conversion price for 20 trading days during any consecutive 30 trading days (including the last trading day of such period), we may elect to cause the convertible perpetual preference shares to be automatically converted into Bunge Limited common shares at the then-prevailing conversion price. The convertible perpetual preference shares are not redeemable by us at any time.
Share repurchase program - In May 2015, we established a new program for the repurchase of up to $500 million of our issued and outstanding common shares. The program has no expiration date. We repurchased 2,546,000 common shares during the three and six months ended June 30, 2020 under this program for $100 million. Total repurchases under the program from its inception in May 2015 through June 30, 2020 were 7,253,440 shares for $400 million.

Cash Flows
As of
US$ in millionsJune 30, 2020June 30, 2019
Cash provided by (used for) operating activities$(1,502) $(1,083) 
Cash provided by (used for) investing activities728  185  
Cash provided by (used for) financing activities726  745  
Effect of exchange rate changes on cash and cash equivalents and restricted cash5  8  
Net increase (decrease) in cash and cash equivalents and restricted cash$(43) $(145) 
Our cash flows from operations vary depending on, among other items, the market prices and timing of the purchase and sale of our inventories. Generally, during periods when commodity prices are rising, our Agribusiness operations require increased use of cash to support working capital to acquire inventories and fund daily settlement
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requirements on exchange traded futures that we use to minimize price risk related to the purchase and sale of our inventories.
For the threesix months ended March 31,June 30, 2020, our cash and cash equivalents and restricted cash decreased by $127$43 million, compared to a decrease of $145 million for the six months ended June 30, 2019.
Operating: Cash used for operating activities was $1,502 million for the six months ended June 30, 2020, an increase of $76$419 million, in cash and cash equivalents and restricted cashcompared to $1,083 million for the threesix months ended March 31,June 30, 2019. The increase was due to higher net working capital requirements, primarily driven by higher RMI, as well as increased beneficial interest in securitized trade receivables, partially offset by higher net income during the six months ended June 30, 2020.
As of
US$ in millionsJune 30, 2020June 30, 2019
Cash provided by (used for) operating activities$(1,502) $(1,083) 
Proceeds from beneficial interest in securitized trade receivables748  547  
Cash provided by (used for) operating activities, adjusted$(754) $(536) 

Cash used for operating activities, adjusted for the proceeds from beneficial interest in securitized trade receivables was $439$754 million for the threesix months ended March 31,June 30, 2020, compared to $402$536 million for the threesix months ended March 31,June 30, 2019. Net cash used for operating activitiesThe increase was higher for the three months ended March 31, 2020, due to the net loss incurred during the the period,higher RMI purchases, partially offset by lower working capital requirements compared tohigher net income during the threesix months ended March 31, 2019.June 30, 2020.

Certain of our non-U.S. operating subsidiaries are primarily funded with U.S. dollar-denominated debt, while currency risk is hedged with U.S. dollar-denominated assets. The functional currency of our operating subsidiaries is generally the local currency. The financial statements of our subsidiaries are calculated in the functional currency, and when the local currency is the functional currency, translated into U.S. dollar. U.S. dollar-denominated loans are remeasured into their respective functional currencies at exchange rates at the applicable balance sheet date. Also, certain of our U.S. dollar functional operating subsidiaries outside the U.S. are partially funded with local currency borrowings, while the currency risk is hedged with local currency denominated assets. Local currency loans in U.S. dollar functional currency subsidiaries outside the U.S. are remeasured into U.S. dollars at the exchange rate on the applicable balance sheet date. The resulting gain or loss is included in our condensed consolidated statements of income as foreign exchange gains or losses. For the threesix months ended March 31,June 30, 2020, we recorded a foreign currency gain on our debt of $86$107 million and, and for threesix months ended March 31,June 30, 2019, we recorded a foreign currency loss on our debt of $37$38 million, which were included as adjustments to reconcile net income to cash used for operating activities in the line item “Foreign exchange (gains) loss on net debt” in our condensed consolidated statements of cash flows. This adjustment isThese adjustments are required as thesethe gains and losses are non-cash items that arise from financing activities and therefore will have no impact on cash flows from operations.
Investing: Cash provided by investing activities was $394$728 million infor the threesix months ended March 31,June 30, 2020, an increase of $543 million, compared to cash used for investing activities of $41 million in the three months ended March 31, 2019. For the three months ended March 31, 2020, cash provided by investing activities of $185 million for the six months ended June 30, 2019. The increase was primarily associated withdue to higher proceeds of $423 million from beneficial interests in securitized trade receivables.receivables, lower capital expenditures, higher cash inflows from settlements of net investment hedges, and higher net proceeds from investments for the six months ended June 30, 2020.
For the six months ended June 30, 2020, cash from beneficial interests in securitized trade receivables was $748 million. In addition, payments were made forwe received proceeds from investments of $104$238 million, primarily related to deposits in South America and promissory notes related to financial services investments, which were partially offset by proceeds frompayments of $226 million made for such investments of $80 million.investments. We also made payments for capital expenditures of $55$127 million related to capital projects at various facilities,facilities. For the six months ended June 30, 2019, cash from beneficial interests in securitized trade receivables was $547 million. In addition, we received proceeds from investments of $213 million, primarily from promissory notes related to financial services investments, which decreased fromwere more than offset by payments of $277 million made for such investments. We also made payments for capital expenditures of $119$265 million, for the three months ended March 31, 2019 due to the 2019 formation of BP Bunge Bioenergia, as 2019 paymentswhich primarily related to replanting of sugarcane for our industrialBrazilian sugar and biofuels business comprising the majority of our Sugar and Bioenergy segment, that was contributed to the Joint Venture in Brazil,late 2019, as well as other capital projects at various facilities. In addition, payments were made for investments of $193 million, primarily related to deposits in South America related to financial services, which were partially offset
Financing: Cash provided by proceeds from such investments of $37 million. Additionally, cash outflows of $51 million occurred in the three months ended March 31, 2019, primarily due to the settlement of Brazilian real denominated net investment hedges. These payments were offset by proceeds of $275 million from beneficial interests in securitized trade receivables.
Cash used for financing activities was $84$726 million infor the threesix months ended March 31,June 30, 2020, a $19 million decrease, compared to cash provided by financing activities of $513$745 million infor the threesix months ended March 31,June 30, 2019.
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In the threesix months ended March 31,June 30, 2020, we had a net increase in short-term and long-term debt of $1,000 million, which was primarily used to fund seasonal working capital requirements, mostly comprising RMI, in South America. We also paid dividends of $79$159 million to our common shareholders and holders of our convertible preference shares.shares, and repurchased $100 million of common shares in the six months ended June 30, 2020. In the threesix months ended March 31,June 30, 2019, the net increase of $590$904 million in borrowings was primarily related to the funding of working capital funding needs payments for investments and to finance capital expenditures. In addition, we paid dividends of $79$158 million to our common shareholders and holders of our convertible preference shares.

Off-Balance Sheet Arrangements
Guarantees - We have issued or were a party to the following guarantees at March 31,June 30, 2020:
(US$ in millions) 
Maximum
Potential
Future
Payments
Unconsolidated affiliates guarantee (1)(2)
 $276
Residual value guarantee (3)
 263
Total $539
(US$ in millions)Maximum
Potential
Future
Payments
Unconsolidated affiliates guarantee (1)(2)
$277 
Residual value guarantee (3)
270 
Total$547 
(1)
We have issued financial and performance guarantees to certain financial institutions related to debt of certain of our unconsolidated affiliates. The terms of the guarantees are equal to the terms of the related financings which have maturity dates through 2034. There are no recourse provisions or collateral that would enable us to recover any amounts paid under these guarantees. In addition, one of our subsidiaries has guaranteed the obligations of two of its affiliates and in connection therewith has secured its guarantee obligations through a pledge of one of its affiliate's shares plus loans receivable from the affiliate to the financial institutions in the event that the guaranteed obligations are enforced. Based on the amounts drawn under such debt facilities at March 31, 2020, our potential liability was $176 million, and we have recorded a $14 million obligation related to these guarantees inclusive of expected lifetime credit losses which are determined based on historical financial information and are not expected to be material.

(1) We have issued financial and performance guarantees to certain financial institutions related to debt of certain of our unconsolidated affiliates. The terms of the guarantees are equal to the terms of the related financings which have maturity dates through 2034. There are no recourse provisions or collateral that would enable us to recover any amounts paid under these guarantees. In addition, one of our subsidiaries has guaranteed the obligations of two of its affiliates and in connection therewith has secured its guarantee obligations through a pledge of one of its affiliate's shares plus loans receivable from the affiliate to the financial institutions in the event that the guaranteed obligations are enforced. Based on the amounts drawn under such debt facilities at June 30, 2020, our potential liability was $189 million, and we have recorded a $13 million obligation related to these guarantees inclusive of expected lifetime credit losses which are determined based on historical financial information and are not expected to be material.
(2)
We have issued guarantees to certain third parties related to the performance of our unconsolidated affiliates. The terms of the guarantees are equal to the completion date of a port terminal which is expected to be completed in 2020. There are no recourse provisions or collateral that would enable us to recover any amounts paid under these guarantees. At March 31, 2020, Bunge's maximum potential future payments under these guarantees was $43 million, and no obligation has been recorded related to these guarantees.
(3)
We have issued guarantees to certain financial institutions which are party to certain operating lease arrangements for railcars, barges, and buildings. These guarantees provide for a minimum residual value to be received by the lessor at the conclusion of the lease term. These leases expire at various dates from 2020 through 2026. At March 31,
(2) At the June 30, 2020 balance sheet date we had issued guarantees to certain third parties related to the performance of our unconsolidated affiliates. The terms of the guarantees are equal to the completion date of a port terminal, which was substantially completed subsequent to the June 30, 2020 balance sheet date. There are no recourse provisions or collateral that would enable us to recover any amounts paid under these guarantees. At June 30, 2020, Bunge's maximum potential future payments under these guarantees was $37 million, and no obligation has been recorded related to these guarantees.
(3) We have issued guarantees to certain financial institutions which are party to certain operating lease arrangements for railcars, barges, and buildings. These guarantees provide for a minimum residual value to be received by the lessor at the conclusion of the lease term. These leases expire at various dates from 2020 through 2026. At June 30, 2020, no obligation has been recorded related to these guarantees. Any obligation recorded would be recognized in Current operating lease obligations or Non-current operating lease obligations (see Note 4 - Leases to our condensed consolidated financial statements).
We have provided a guarantee to the Director of the Illinois Department of Agriculture as Trustee for Bunge North America, Inc. (“BNA”), an indirect wholly-owned subsidiary, which guarantees all amounts due and owing by BNA to grain producers and/or depositors in the State of Illinois who have delivered commodities to BNA’s Illinois facilities.
In addition, Bunge Limited has provided full and unconditional parent level guarantees of the outstanding indebtedness under certain credit facilities entered into and senior notes issued by our 100% owned subsidiaries. At March 31,June 30, 2020, debt with a carrying amount of $4,522$5,662 million related to these guarantees is included in our condensed consolidated balance sheet. This debt includes the senior notes issued by two of our 100% owned finance subsidiaries, Bunge Limited Finance Corp. and Bunge Finance Europe B.V. There are largely no restrictions on the ability of Bunge Limited Finance Corp. and Bunge Finance Europe B.V. or any other of our subsidiaries to transfer funds to Bunge Limited.

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Dividends
We paid a regular quarterly cash dividend of $0.50 per share on March 2,June 1, 2020 to common shareholders of record on February 17,May 18, 2020. In addition, we paid a quarterly dividend of $1.21875 per share on our cumulative convertible perpetual preference shares on MarchJune 1, 2020 to shareholders of record on FebruaryMay 15, 2020. On March 11,May 22, 2020, we announced that our Board of Directors had approved a regular quarterly cash dividend of $0.50 per common share. The dividend will be payable on JuneSeptember 1, 2020 to common shareholders of record on May 18,August 17, 2020. We also announced on March 11,May 22, 2020 that we will pay a quarterly cash dividend of $1.21875 per share on our cumulative convertible perpetual preference shares on JuneSeptember 1, 2020 to shareholders of record on MayAugust 15, 2020.

Critical Accounting Policies and Estimates
Critical accounting policies are defined as those policies that are significant to our financial condition and results of operations and require management to exercise significant judgment. For a complete discussion of our accounting policies, see Note 1 to our Annual Report on Form 10-K for the year ended December 31, 2019, filed with the Securities and Exchange Commission on February 22, 2019.21, 2020. Following is a material changeschange to our critical accounting policies during the threesix months ended March 31,June 30, 2020. For recent accounting pronouncements refer to Note 2 - Accounting Pronouncements, to the condensed consolidated financial statements in this Quarterly Report on Form 10-Q.
Effective January 1, 2020, we changed our segment reporting policy to separately disclose Corporate and Other activities from individual business segments, as further described in Note 20 - Segment Information. Certain reclassifications of prior period amounts within the reporting segments have been made to conform to current presentation.


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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Risk Management
As a result of our global activities, we are exposed to changes in, among other things, agricultural commodity prices, transportation costs, foreign currency exchange rates, interest rates and energy costs which may directly or indirectly affect our results of operations and financial position. We actively monitor and manage these various market risks associated with our business activities. Our risk management decisions take place in various locations, but exposure limits are centrally set and monitored, operating under a global governance framework. Additionally, our Board of Directors' Enterprise Risk Management Committee oversees our global market risk governance framework, including risk management policies and limits.
We use derivative instruments for the purpose of managing the exposures associated with commodity prices, transportation costs, foreign currency exchange rates, interest rates and energy costs and for positioning our overall portfolio relative to expected market movements in accordance with established policies, limits and procedures. We enter into derivative instruments primarily with commodity exchanges in the case of commodity futures and options, major financial institutions in the case of foreign currency and interest rate derivatives, or approved exchange clearing shipping companies in the case of ocean freight. While these derivative instruments are subject to fluctuations in value, for hedged exposures those fluctuations are generally offset by the changes in fair value of the underlying exposures. The derivative instruments that we use for hedging purposes are intended to reduce the volatility onof our results of operations, however, they can occasionally result in earnings volatility, which may be material. See Note 13 - Derivative Instruments And Hedging Activities, to the condensed consolidated financial statements in this Quarterly Report on Form 10-Q for a more detailed discussion of our use of derivative instruments.
Credit and Counterparty Risk
Through our normal business activities, we are subject to significant credit and counterparty risks that arise through normal commercial sales and purchases, including forward commitments to buy or sell, and through various other over-the-counter ("OTC") derivative instruments that we use to manage risks inherent in our business activities. We define credit and counterparty risk as a potential financial loss due to the failure of a counterparty to honor its obligations. The exposure is measured based upon several factors, including unpaid accounts receivable from counterparties and unrealized gains from forward cash contracts, as well as OTC derivative instruments. Credit and counterparty risk also includes sovereign credit risk. We actively monitor credit and counterparty risk through regular reviews of exposures and credit analysis by regional credit teams, as well as reviews by our Management Credit Committee that monitors counterparty exposures. We record provisions for counterparty losses from time to time as a result of our credit and counterparty analysis.
During periods of tight conditions in global credit markets, downturns in regional or global economic conditions, low levels of available (funding) liquidity and/or significant price volatility, credit and counterparty risks are heightened. This increased risk is monitored through, among other things, exposure reporting, increased communication with key counterparties, management reviews and specific focus on counterparties or groups of counterparties that we may determine as high risk. In addition, we have limited exposures and limits in certain cases and reduced our use of non-exchange cleared derivative instruments.
Commodities Risk
We operate in many areas of the food industry, from agricultural raw materials to the production and sale of branded food and other specialty products via Bunge’s majority ownership in Loders. As a result, we purchase and produce various materials, many of which are agricultural commodities, including: soybeans, soybean oil, soybean meal, palm oil, softseeds (including sunflower seed, rapeseed and canola) and related oil and meal derived from them, wheat, barley, shea nut, and corn. In addition, we produce bioenergy products as a consequence of our production of soybean oil and other oil feedstocks. Agricultural and energy commodities are subject to price fluctuations due to a number of unpredictable factors that may create price risk. As described above, we are also subject to the risk of counterparty non-performance under forward purchase or sale contracts. From time to time, we have experienced instances of counterparty non-performance as a result of significant declines in counterparty profitability under these contracts due to significant movements in commodity and energy prices between the time the contracts were executed and the contractual forward delivery period.
We enter into various derivative contracts with the primary objective of managing our exposure to adverse price movements in the agricultural and energy commodities used and produced in our business operations. We have established policies that limit the amount of unhedged fixed price agricultural commodity positions permissible for our operating companies, which are generally a combination of volumetric and value-at-risk (VaR) limits. We measure and review our net commodities position on a daily basis. We also employ stress testing techniques, , including stressed VaR techniques in order to quantify our exposures to price and liquidity risks under non-normal or event driven market conditions.

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Our daily net agricultural commodity position consists of inventory, forward purchase and sale contracts, and OTC and exchange traded derivative instruments, including those used to hedge portions of our production requirements. The fair value of that position is a summation of the fair values calculated for each agricultural commodity by valuing all of our commodity positions at quoted market prices for the period where available, or utilizingusing a close proxy. VaR is calculated on the net position and monitored at the 95% confidence interval. In addition, scenario analysis and custom stress testing are regularly performed. For example, one measure of market risk is estimated as the potential loss in fair value resulting from a hypothetical 10% adverse change in prices. The results of this analysis, which may differ from actual results, are as follows:
 Three Months Ended
March 31, 2020		 Year Ended
December 31, 2019		Six Months Ended
June 30, 2020		Year Ended
December 31, 2019
(US$ in millions) Value 
Market
Risk
 Value 
Market
Risk
(US$ in millions)ValueMarket
Risk		ValueMarket
Risk
Highest daily aggregated position value $751
 $(75) $852
 $(85)Highest daily aggregated position value$751  $(75) $852  $(85) 
Lowest daily aggregated position value $89
 $(9) $(724) $(72)Lowest daily aggregated position value$54  $(5) $(724) $(72) 
Ocean Freight Risk
Ocean freight and bunker fuel represent a significant portion of our operating costs. Market prices for ocean freight andnd bunker fuel vary depending on the supply and demand for ocean vessels, global economic conditions, the price of crude petroleum oil and other factors. We enter into time charter agreements for time on ocean freight vessels based on forecasted requirements for the purpose of transporting agricultural commodities. Our time charter agreements generally have terms ranging from two months to approximately seven years. We use financial derivatives to hedge portions of our ocean freight costs (generally freight forward agreements) and bunker fuel costs. The ocean freight derivatives are included in other current assets and other current liabilities on the condensed consolidated balance sheets at fair value.
Energy Risk
We purchase various energy commodities such as electricity, natural gas and bunker fuel, that are used to operate our manufacturing facilities and ocean freight vessels. We also refine and produce biofuels. The energy commodities are subject to price risk. We use financial derivatives, including exchange traded and OTC swaps and options for various purposes to manage our exposure to volatility in energy costs and market prices. These energy derivatives are included in other current assets and other current liabilities on the condensed consolidated balance sheets at fair value.
Currency Risk
Our global operations require active participation in foreign exchange markets. Our primary foreign currency exposures are the Brazilian real, Canadian dollar, the Euro and the Chinese yuan/renminbi. To reduce the risk arising from foreign exchange rate fluctuations, we enter into derivative instruments, such as foreign currency forward contracts, swaps and options. The changes in market value of such contracts have a high correlation to the price changes in the related currency exposures. The potential loss in fair value for such net currency position resulting from a hypothetical 10% adverse change in foreign currency exchange rates as of March 31,June 30, 2020 was not material.
When determining our exposure, we exclude intercompany loans that are deemed to be permanently invested. The repayments of permanently invested intercompany loans are neither planned nor anticipated in the foreseeable future and therefore, are treated as analogous to equity for accounting purposes. As a result, the foreign exchange gains and losses on these borrowings are excluded from the determination of net income and recorded as a component of accumulated other comprehensive income (loss) in the condensed consolidated balance sheets. Included in other comprehensive income (loss) are foreign exchange losses of $200$216 million for the threesix months ended March 31,June 30, 2020 and foreign exchange lossesgains of $929 million for the year ended December 31, 2019 related to permanently invested intercompany loans.
Interest Rate Risk
We have debt in fixed and floating rate instruments. We are exposed to market risk due to changes in interest rates. We may enter into interest rate swap agreements to manage our interest rate exposure related to our debt portfolio.
The aggregate fair value of our short and long-term debt based on market yields at March 31,June 30, 2020, was $4,937$6,084 million with a carrying value of $4,998$6,037 million. There was no significant change in our interest rate risk at March 31,June 30, 2020.
A hypothetical 100 basis point increase in the interest yields on our senior note debt at March 31,June 30, 2020 would result in a decrease of approximately $49$55 million in the fair value of our debt. Similarly, a decrease of 100 basis points in the interest yields on our debt at March 31,June 30, 2020 would cause an increase of approximately $57$62 million in the fair value of our debt.

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A hypothetical 100 basis point change in LIBOR would result in a change of approximately $34$45 million in our interest expense on our variable rate debt at March 31,June 30, 2020. Some of our variable rate debt is denominated in currencies other than in U.S. dollars and is indexed to non-U.S. dollar-based interest rate indices, such as EURIBOR and TJLP and certain benchmark rates in local bank markets. As such, the hypothetical 100 basis point change in interest rate ignores the potential impact of any currency movements.

ITEM 4.CONTROLS AND PROCEDURES
ITEM 4.CONTROLS AND PROCEDURES
Disclosure Controls and Procedures - Disclosure controls and procedures are the controls and other procedures that are designed to provide reasonable assurance that information required to be disclosed by thean issuer in the reports that it files or submits under the Exchange Act of 1934, as amended (the “Exchange Act”) is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including the principal executive and principal financial officer, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure.
As of March 31,June 30, 2020, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures, as that term is defined in Exchange Act Rules 13a-15(e) and 15d-15(e), as of the end of the period covered by this Quarterly Report on Form 10-Q. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were effective at the reasonable assurance level as of the end of the period covered by this Quarterly Report on Form 10-Q.
Internal Control Over Financial Reporting - There have been no changes in the Company’s internal control over financial reporting during the firstsecond quarter ended March 31,June 30, 2020, that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
As part of the Company’s ongoing portfolio rationalization initiatives (see Note 3 - Portfolio Rationalization Initiatives, to our condensed consolidated financial statements), the Company is simplifying organizational structures, streamlining processes and consolidating back office functions globally. In connection with this initiative, the Company has and will continue to align and streamline the design and operation of its internal controls over financial reporting. These initiatives are not in response to any identified deficiency or weakness in the Company’s internal controls over financial reporting, but isare expected, over time, to result in changes to the Company'ssuch internal controls over financial reporting.


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PART II.
INFORMATION
ITEM 1.LEGAL PROCEEDINGS
ITEM 1.LEGAL PROCEEDINGS
From time to time, we are involved in litigation and other claims, investigations and proceedings incidental to our business. While the outcome of these matters cannot be predicted with certainty, we believe the outcome of these proceedings, net of established reserves, will not have a material adverse effect on our consolidated financial position, results of operations or liquidity.
For a discussion of certain legal and tax matters, relating to Argentina and Brazil, see Note 16 - Commitments Andand Contingencies, to our condensed consolidated financial statements included as part of this Quarterly Report on Form 10-Q. Additionally, we are a party to a large number of labor and civil and other claims, primarily relating to our Brazilian operations. We have reserved an aggregate of $33 million and $52$62 million, for labor and civil claims, respectively, as of March 31,June 30, 2020. The labor claims primarily relate to dismissals, severance, health and safety, salary adjustments and supplementary retirement benefits. The civil claims relate to various legal proceedings and disputes, including disputes with suppliers and customers and include approximately 135137 million Brazilian reais (approximately $26$25 million as of March 31,June 30, 2020) related to a legacy environmental claim in Brazil.

ITEM 1A.RISK FACTORS
ITEM 1A. RISK FACTORS
In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, “Item 1A. Risk Factors” in our 2019 Annual Report on Form 10-K, which could materially affect our business, financial condition or future results. The risks described in our Annual Report on Form 10-K are not the only risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results. Following is a material update to the risk factors previously disclosed in our 2019 Annual Report on Form 10-K.

Our operations may be adversely impacted as a result of pandemic outbreaks, including COVID-19.

In December 2019, a strain of novel coronavirus, or COVID-19, was first reported in Wuhan, China, resulting in millions of confirmed cases of the disease globally. By January, the Chinese government implemented a quarantine protocol for Wuhan and additional restrictions for other major Chinese cities, including mandatory business closures, social distancing measures, and various travel restrictions.China. On March 11, 2020, as COVID-19 spread outside of China, the World Health Organization designated the outbreak as a global pandemic. ThisTo date, millions of cases have been confirmed globally, and the number of reported cases continues to increase, including in all major geographies in which we operate. The ongoing pandemic could adversely affect our operations, major facilities, or employees’ and consumers’ health. Government officials in numerous countries around the world have implemented quarantines and significant restrictions on travel as well as work restrictions that prohibit many employees from going to work. As millions of cases have been confirmed globally, including in China, Europe, the U.S. and South America, we expect COVID-19 tohealth, which could interfere with general commercial activity related to our supply chain and customer base, whichand in turn could have a material adverse effect on our business, financial condition, or results of operations. To

Throughout the extentsecond quarter of 2020, government officials in numerous countries around the world implemented quarantines and significant restrictions that prohibit many employees from travelling and entering their place of work. Many of these restrictions remain in place today.

Additionally, in recent weeks, as many European countries and US states started to ease certain travel and workplace restrictions, the number of observed COVID-19 continues or worsens,cases in such locations again began to increase, which may lead to governments may impose additionalre-imposing previous travel and work restrictions, or imposing additional governments may impose restrictions. The result of COVID-19 and those restrictions could result in additional businesses being shut down, additional work restrictions and supply chains being interrupted, slowed, or rendered inoperable. As a result, it may be challenging to obtain and process raw materials to support our business needs, and individuals could become ill, quarantined or otherwise unable to work and/or travel due to health reasons or governmental restrictions. Also, governments may impose other laws, regulations or taxes whichthat could adversely impact our business, financial condition or results of operations. Further, if our customers’ businesses are similarly affected, they might delay or reduce purchases from us, which could adversely affect our business, financial condition or results of operations.

The potential effects of COVID-19 also could impact many of our risk factors included in Part 1, Item A of our 2019 Form 10-K, including, but not limited to our profitability, laws and regulations affecting our business, fluctuations in foreign currency markets, the availability of future borrowings, the costs of current and future borrowings, valuation of our pension assets and obligations, credit risks of our customers and counterparties, our business transformation initiatives and an impairment of the carrying value of goodwill or other indefinite-lived intangible assets. However, given the evolving health, economic, social, and governmental environments, the potential impact that COVID-19 could have on our risk factors that are further described in our 2019 Form 10-K remainremains uncertain.


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ITEM 2.UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Issuer Purchases of Equity Securities

The following table is a summary of any purchases of equity securities during the second quarter of 2020 by Bunge and any affiliated purchasers, pursuant to SEC rules.
PeriodTotal Number of Shares (or Units) PurchasedAverage Price Paid per Share (or Unit)Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or ProgramsMaximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs
April 1, 2020 - April 30, 2020—$—  —$200,000,000  
May 1, 2020 - May 31, 2020545,000$37.98  545,000$179,302,900  
June 1, 2020 - June 30, 20202,001,000$39.63  2,001,000$100,001,230  
Total2,546,000$39.28  2,546,000

ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.

ITEM 3.DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. MINE SAFETY DISCLOSURES

ITEM 4.MINE SAFETY DISCLOSURES
Not applicable.

ITEM 5.OTHER INFORMATION
ITEM 5. OTHER INFORMATION
None.

ITEM 6.EXHIBITS
ITEM 6.EXHIBITS
(a) The exhibits in the accompanying Exhibit Index on page E-1 are filed or furnished as part of this Quarterly Report.

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EXHIBIT INDEX
Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes Oxley Act of 2002
Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes Oxley Act of 2002
Certification of Chief Executive Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002
Certification of Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002
101 SCHXBRL Taxonomy Extension Schema Document
101 CALXBRL Taxonomy Extension Calculation Linkbase Document
101 LABXBRL Taxonomy Extension Labels Linkbase Document
101 PREXBRL Taxonomy Extension Presentation Linkbase Document
101 DEFXBRL Taxonomy Extension Definition Linkbase Document
101 INSXBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
*Filed herewith.
*Filed herewith.
E-1

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
BUNGE LIMITED
Date: May 6,July 29, 2020By:/s/ John W. Neppl
John W. Neppl
Executive Vice President, Chief Financial Officer
/s/ J. Matt Simmons, Jr.
J. Matt Simmons, Jr.
Controller and Principal Accounting Officer

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