DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 17, 2017 | Jun. 30, 2016 | |
Document And Entity Information | |||
Entity Registrant Name | Bunge LTD | ||
Entity Central Index Key | 1,144,519 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 8,220 | ||
Entity Common Stock, Shares Outstanding | 139,508,796 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading symbol | bg |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
CONSOLIDATED STATEMENTS OF INCOME | |||
Net sales | $ 42,679 | $ 43,455 | $ 57,161 |
Cost of goods sold | (40,269) | (40,762) | (54,540) |
Gross profit | 2,410 | 2,693 | 2,621 |
Selling, general and administrative expenses | (1,286) | (1,435) | (1,691) |
Interest income | 51 | 43 | 87 |
Interest expense | (234) | (258) | (347) |
Foreign exchange gains (losses) | (8) | (8) | 47 |
Other income (expense) - net | 12 | (18) | 17 |
Gain on disposition of equity interests and sale of assets | 122 | 47 | |
Equity investment impairments | (59) | ||
Goodwill and intangible impairments | (12) | (13) | |
Income (loss) from continuing operations before income tax | 996 | 1,051 | 734 |
Income tax (expense) | (220) | (296) | (249) |
Income (loss) from continuing operations | 776 | 755 | 485 |
Income (loss) from discontinued operations, net of tax | (9) | 35 | 32 |
Net income (loss) | 767 | 790 | 517 |
Net loss (income) attributable to noncontrolling interests | (22) | 1 | (2) |
Net income (loss) attributable to Bunge | 745 | 791 | 515 |
Convertible preference share dividends and other obligations | (36) | (53) | (48) |
Net income (loss) available to Bunge common shareholders | $ 709 | $ 738 | $ 467 |
Earnings per common share-basic | |||
Net income (loss) from continuing operations (in dollars per share) | $ 5.13 | $ 4.90 | $ 2.98 |
Net income (loss) from discontinued operations (in dollars per share) | (0.06) | 0.24 | 0.22 |
Net income (loss) to Bunge common shareholders (in dollars per share) | 5.07 | 5.14 | 3.20 |
Earnings per common share-diluted | |||
Net income (loss) from continuing operations (in dollars per share) | 5.07 | 4.84 | 2.96 |
Net income (loss) from discontinued operations (in dollars per share) | (0.06) | 0.23 | 0.21 |
Net income (loss) to Bunge common shareholders (in dollars per share) | $ 5.01 | $ 5.07 | $ 3.17 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||
Net income (loss) | $ 767 | $ 790 | $ 517 |
Other comprehensive income (loss): | |||
Foreign exchange translation adjustment | 713 | (2,550) | (1,419) |
Unrealized gains (losses) on designated cash flow and net investment hedges, net of tax (expense) benefit of nil, nil and nil | (305) | 147 | 21 |
Unrealized gains (losses) on investments, net of tax (expense) benefit of nil, nil and $2 | (2) | ||
Reclassification of realized net losses (gains) to net income, net of tax expense (benefit) of nil, nil and nil | (11) | 77 | (9) |
Pension adjustment, net of tax (expense) benefit of $4, $1 and $32 | (11) | 20 | (85) |
Total other comprehensive income (loss) | 386 | (2,306) | (1,494) |
Total comprehensive income (loss) | 1,153 | (1,516) | (977) |
Less: comprehensive (income) loss attributable to noncontrolling interest | (26) | 5 | 6 |
Total comprehensive income (loss) attributable to Bunge | $ 1,127 | $ (1,511) | $ (971) |
CONSOLIDATED STATEMENTS OF COM4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (PARENTHETICAL) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||
Unrealized gains (losses) designated cash flow and net investment hedges, tax (expense) benefit | $ 0 | $ 0 | $ 0 |
Unrealized gains (losses) on investments, tax (expense) benefit | 0 | 0 | 2 |
Reclassification of realized net losses (gains) to net income, tax expense (benefit) | 0 | 0 | 0 |
Pension adjustment, tax (expense) benefit | $ 4 | $ 1 | $ 32 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 934 | $ 411 |
Time deposits under trade structured finance program (Note 3) | 64 | 325 |
Trade accounts receivable (less allowances of $122 and $125) (Note 17) | 1,676 | 1,607 |
Inventories (Note 4) | 4,773 | 4,466 |
Deferred income taxes (Note 13) | 208 | |
Other current assets (Note 5) | 3,645 | 3,899 |
Total current assets | 11,092 | 10,916 |
Property, plant and equipment, net (Note 6) | 5,099 | 4,736 |
Goodwill (Note 7) | 373 | 418 |
Other intangible assets, net (Note 8) | 336 | 326 |
Investments in affiliates (Note 10) | 373 | 329 |
Deferred income taxes (Note 13) | 524 | 417 |
Noncurrent Time Deposits Under Trade Structured Finance Program at Carrying Amount | 464 | |
Other non-current assets (Note 11) | 927 | 772 |
Total assets | 19,188 | 17,914 |
Current liabilities: | ||
Short-term debt (Note 15) | 257 | 648 |
Current portion of long-term debt (Note 16) | 938 | 869 |
Letter of credit obligations under trade structured finance program (Note 3) | 528 | 325 |
Trade accounts payable | 3,485 | 2,675 |
Deferred income taxes (Note 13) | 60 | |
Other current liabilities (Note 12) | 2,476 | 2,763 |
Total current liabilities | 7,684 | 7,340 |
Long-term debt (Note 16) | 3,069 | 2,926 |
Deferred income taxes (Note 13) | 239 | 209 |
Other non-current liabilities | 853 | 750 |
Commitments and contingencies (Note 20) | ||
Redeemable noncontrolling interests (Note 21) | 37 | |
Equity (Note 22): | ||
Convertible perpetual preference shares, par value $.01; authorized, issued and outstanding: 2016 and 2015 - 6,900,000 shares (liquidation preference $100 per share) | 690 | 690 |
Common shares, par value $.01; authorized - 400,000,000 shares; issued and outstanding: 2016 - 139,500,862 shares, 2015 - 142,483,467 shares | 1 | 1 |
Additional paid-in capital | 5,143 | 5,105 |
Retained earnings | 8,208 | 7,725 |
Accumulated other comprehensive income (loss) (Note 22) | (5,978) | (6,360) |
Treasury shares, at cost - 2016 - 12,882,313 and 2015 - 9,586,083 shares, respectively | (920) | (720) |
Total Bunge shareholders' equity | 7,144 | 6,441 |
Noncontrolling interests | 199 | 211 |
Total equity | 7,343 | 6,652 |
Total liabilities and equity | $ 19,188 | $ 17,914 |
CONSOLIDATED BALANCE SHEETS (PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
CONSOLIDATED BALANCE SHEETS | ||
Trade accounts receivable, allowances (in dollars) | $ 122 | $ 125 |
Convertible perpetual preference shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Convertible perpetual preference shares, authorized | 6,900,000 | 6,900,000 |
Convertible perpetual preference shares, issued | 6,900,000 | 6,900,000 |
Convertible perpetual preference shares, outstanding | 6,900,000 | 6,900,000 |
Convertible perpetual preference shares, liquidation preference (in dollars per share) | $ 100 | $ 100 |
Common shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common shares, authorized | 400,000,000 | 400,000,000 |
Common shares, issued | 139,500,862 | 142,483,467 |
Common shares, outstanding | 139,500,862 | 142,483,467 |
Treasury shares, at cost | 12,882,313 | 9,586,083 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
OPERATING ACTIVITIES | |||
Net income | $ 767 | $ 790 | $ 517 |
Adjustments to reconcile net income to cash provided by (used for) operating activities: | |||
Impairment charges | 87 | 57 | 130 |
Foreign exchange loss (gain) on debt | 80 | (213) | (215) |
Gain on disposition of equity interest of operations | (122) | (47) | |
Bad debt expense | 13 | 35 | 30 |
Depreciation, depletion and amortization | 547 | 545 | 607 |
Share-based compensation expense | 44 | 46 | 49 |
Deferred income tax expense/(benefit) | 126 | 16 | (90) |
Other, net | 15 | (26) | (76) |
Changes in operating assets and liabilities, excluding the effects of acquisitions: | |||
Trade accounts receivable | (131) | (97) | 108 |
Inventories | (269) | 314 | (161) |
Secured advances to suppliers | 38 | (397) | 21 |
Trade accounts payable | 708 | (88) | (100) |
Advances on sales | 36 | 22 | 78 |
Net unrealized gain/loss on derivative contracts | (84) | (16) | 237 |
Margin deposits | 199 | (154) | (22) |
Recoverable and income taxes, net | (178) | (36) | (59) |
Accrued liabilities | (148) | (7) | 367 |
Other, net | 176 | (134) | (22) |
Cash provided by (used for) operating activities | 1,904 | 610 | 1,399 |
INVESTING ACTIVITIES | |||
Payments made for capital expenditures | (784) | (649) | (839) |
Acquisitions of businesses (net of cash acquired) | (34) | (347) | (39) |
Proceeds from investments | 802 | 295 | 282 |
Payments for investments | (553) | (235) | (196) |
Settlement of net investment hedges | (375) | 203 | |
Proceeds from disposals of property, plant and equipment | 27 | 13 | 22 |
Change in restricted cash | (2) | 1 | 101 |
Proceeds from sale of grain assets in Canada and investments in affiliates | 88 | ||
Payments for investments in affiliates | (40) | (167) | (57) |
Other, net | 33 | (4) | 41 |
Cash provided by (used for) investing activities | (926) | (802) | (685) |
FINANCING ACTIVITIES | |||
Net change in short-term debt with maturities of 90 days or less | (206) | (176) | (134) |
Proceeds from short-term debt with maturities greater than 90 days | 428 | 713 | 863 |
Repayments of short-term debt with maturities greater than 90 days | (477) | (350) | (667) |
Proceeds from long-term debt | 10,396 | 9,354 | 13,014 |
Repayments of long-term debt | (10,080) | (8,659) | (13,667) |
Proceeds from sale of common shares | 25 | 74 | |
Repurchases of common shares | (200) | (300) | (300) |
Dividends paid to preference shareholders | (34) | (34) | (34) |
Dividends paid to common shareholders | (223) | (207) | (187) |
Dividends paid to noncontrolling interests | (25) | (8) | (9) |
Capital contributions (return of capital) from noncontrolling interests, net | (10) | (13) | 6 |
Acquisition of noncontrolling interest | (39) | ||
Other, net | (18) | 15 | (17) |
Cash provided by (used for) financing activities | (488) | 360 | (1,058) |
Effect of exchange rate changes on cash and cash equivalents | 33 | (119) | (36) |
Net increase (decrease) in cash and cash equivalents | 523 | 49 | (380) |
Cash and cash equivalents, beginning of period | 411 | 362 | 742 |
Cash and cash equivalents, end of period | $ 934 | $ 411 | $ 362 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS - USD ($) $ in Millions | Redeemable Non-Controlling Interests | Convertible Preference Shares | Common Shares | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Shares | Non-Controlling Interests | Total |
Balance at Dec. 31, 2013 | $ 690 | $ 1 | $ 4,967 | $ 6,891 | $ (2,572) | $ (120) | $ 231 | $ 10,088 | |
Balance at Dec. 31, 2013 | $ 37 | ||||||||
Balance (in shares) at Dec. 31, 2013 | 6,900,000 | 147,796,784 | |||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income (loss) | (9) | ||||||||
Net income (loss) | 515 | 2 | 517 | ||||||
Accretion of noncontrolling interests | 14 | (14) | (14) | ||||||
Other comprehensive income (loss) | (5) | (1,486) | (8) | (1,494) | |||||
Dividends on common shares | (192) | (192) | |||||||
Dividends on preference shares | (34) | (34) | |||||||
Dividends to noncontrolling interests on subsidiary common stock | (10) | (10) | |||||||
Acquisition of Noncontrolling interest | (23) | 29 | 6 | ||||||
Share-based compensation expense | 49 | 49 | |||||||
Repurchase of common shares | (300) | (300) | |||||||
Repurchase of common shares (in shares) | (3,780,987) | ||||||||
Issuance of common shares | 74 | 74 | |||||||
Issuance of common shares (in shares) | 1,687,401 | ||||||||
Balance at Dec. 31, 2014 | $ 690 | $ 1 | 5,053 | 7,180 | (4,058) | (420) | 244 | 8,690 | |
Balance at Dec. 31, 2014 | 37 | ||||||||
Balance (in shares) at Dec. 31, 2014 | 6,900,000 | 145,703,198 | |||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income (loss) | (14) | ||||||||
Net income (loss) | 791 | (1) | 790 | ||||||
Accretion of noncontrolling interests | 19 | (19) | (19) | ||||||
Other comprehensive income (loss) | (5) | (2,302) | (4) | (2,306) | |||||
Dividends on common shares | (212) | (212) | |||||||
Dividends on preference shares | (34) | (34) | |||||||
Dividends to noncontrolling interests on subsidiary common stock | (9) | (9) | |||||||
Return of capital to noncontrolling interest | (19) | (19) | |||||||
Share-based compensation expense | 46 | 46 | |||||||
Repurchase of common shares | (300) | (300) | |||||||
Repurchase of common shares (in shares) | (3,871,810) | ||||||||
Issuance of common shares | 25 | 25 | |||||||
Issuance of common shares (in shares) | 652,079 | ||||||||
Balance at Dec. 31, 2015 | $ 690 | $ 1 | 5,105 | 7,725 | (6,360) | (720) | 211 | 6,652 | |
Balance at Dec. 31, 2015 | 37 | 37 | |||||||
Balance (in shares) at Dec. 31, 2015 | 6,900,000 | 142,483,467 | |||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income (loss) | 1 | ||||||||
Net income (loss) | 745 | 22 | 767 | ||||||
Accretion of noncontrolling interests | 2 | (2) | (2) | ||||||
Other comprehensive income (loss) | (1) | 382 | 4 | 386 | |||||
Dividends on common shares | (228) | (228) | |||||||
Dividends on preference shares | (34) | (34) | |||||||
Dividends to noncontrolling interests on subsidiary common stock | (25) | (25) | |||||||
Noncontrolling decrease from redemption | (6) | (6) | |||||||
Acquisition of Noncontrolling interest | $ (39) | (2) | 19 | 17 | |||||
Deconsolidation of a subsidiary | (26) | (26) | |||||||
Share-based compensation expense | 44 | 44 | |||||||
Repurchase of common shares | (200) | (200) | |||||||
Repurchase of common shares (in shares) | (3,296,230) | ||||||||
Issuance of common shares | (2) | (2) | |||||||
Issuance of common shares (in shares) | 313,625 | ||||||||
Balance at Dec. 31, 2016 | $ 690 | $ 1 | $ 5,143 | $ 8,208 | $ (5,978) | $ (920) | $ 199 | $ 7,343 | |
Balance (in shares) at Dec. 31, 2016 | 6,900,000 | 139,500,862 |
NATURE OF BUSINESS, BASIS OF PR
NATURE OF BUSINESS, BASIS OF PRESENTATION, AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2016 | |
NATURE OF BUSINESS, BASIS OF PRESENTATION, AND SIGNIFICANT ACCOUNTING POLICIES | |
NATURE OF BUSINESS, BASIS OF PRESENTATION, AND SIGNIFICANT ACCOUNTING POLICIES | 1. NATURE OF BUSINESS, BASIS OF PRESENTATION, AND SIGNIFICANT ACCOUNTING POLICIES Description of Business —Bunge Limited, a Bermuda holding company, together with its consolidated subsidiaries and variable interest entities ("VIEs") in which it is considered the primary beneficiary, through which its businesses are conducted (collectively "Bunge"), is an integrated, global Agribusiness and Food company. Bunge's common shares trade on the New York Stock Exchange under the ticker symbol "BG." Bunge operates in four principal business areas, which include five reportable segments: Agribusiness, Edible Oil Products, Milling Products, Sugar and Bioenergy and Fertilizer. Agribusiness —Bunge's Agribusiness segment is an integrated business involved in the purchase, storage, transport, processing and sale of agricultural commodities and commodity products. Bunge's agribusiness operations and assets are located in North America, South America, Europe and Asia-Pacific with merchandising and distribution offices throughout the world. Bunge's Agribusiness segment also participates in related financial activities, such as offering trade structured finance, which leverages its international trade flows, providing risk management services to customers by assisting them with managing price exposure to agricultural commodities, proprietary trading of foreign exchange and other financial instruments and developing private investment vehicles to invest in businesses complementary to Bunge's commodities operations. Edible Oil products —Bunge's Edible Oil Products segment produces and sells edible oil products, such as packaged and bulk oils, shortenings, margarine, mayonnaise and other products derived from the vegetable oil refining process. Bunge's edible oil products operations are located in North America, South America, Europe and Asia-Pacific. Milling products —Bunge's Milling Products segment includes wheat, corn and rice milling businesses, which purchase wheat, corn and rice directly from farmers and dealers and process them into milled products for food processors, bakeries, brewers, snack food producers and other customers. Bunge's wheat milling activities are primarily in Mexico and Brazil. Corn and rice milling activities are in the United States and Mexico. Sugar and Bioenergy —Bunge's Sugar and Bioenergy segment includes its global sugar merchandising and distribution activities, sugar and ethanol production in Brazil, and ethanol production investments. This segment is an integrated business involved in the growing and harvesting of sugarcane from land owned or managed through agricultural partnership agreements and additional sourcing of sugarcane from third parties to be processed at its eight mills in Brazil to produce sugar, ethanol and electricity. The Sugar and Bioenergy segment is also a merchandiser and distributor of sugar and ethanol within Brazil and a global merchandiser and distributor of sugar through its global trading offices. In addition, the segment includes investments in corn-based ethanol producers in the United States and Argentina. Fertilizer —Bunge's Fertilizer segment operates primarily as a producer and blender of NPK (nitrogen, phosphate and potassium) fertilizer formulas, including phosphate-based liquid and solid nitrogen fertilizers through its operations in Argentina to farmers and distributors in Argentina. This segment also includes the operations of fertilizer ports in Brazil and Argentina. Basis of Presentation —The consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"). Discontinued Operations —In determining whether a disposal group should be presented as discontinued operations, Bunge makes a determination of whether such a group being disposed of comprises a component of the entity, or a group of components of the entity, that represents a strategic shift that has, or will have, a major effect on the reporting entity's operations and financial results. If these determinations are made affirmatively, the results of operations of the group being disposed of (as well as any gain or loss on the disposal transaction) are aggregated for separate presentation apart from the continuing operations of the Company for all periods presented in the consolidated financial statements. Principles of Consolidation —The accompanying consolidated financial statements include the accounts of Bunge, its subsidiaries and 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 exercises control. Equity investments in which Bunge has the ability to exercise significant influence but does not control are accounted for by the equity method of accounting. Investments in which Bunge does not exercise significant influence are accounted for by the cost method of accounting. Intercompany accounts and transactions are eliminated. Bunge consolidates VIEs in which it is considered to be the primary beneficiary and reconsiders such conclusion at each reporting period. An enterprise is determined to be the primary beneficiary if it has a controlling financial interest under U.S. GAAP, defined as (a) the power to direct the activities of a VIE that most significantly impact the VIE's business and (b) the obligation to absorb losses of or the right to receive benefits from the VIE that could potentially be significant to the VIE's operations. Performance of that analysis requires the exercise of judgment. Noncontrolling interests in subsidiaries related to Bunge's ownership interests of less than 100% are reported as noncontrolling interests in the consolidated balance sheets. The noncontrolling ownership interests in Bunge's earnings, net of tax, is reported as net (income) loss attributable to noncontrolling interests in the consolidated statements of income. Reclassifications —Certain prior year amounts have been reclassified to conform to current year presentation. Use of Estimates —The preparation of consolidated financial statements in conformity with U.S. GAAP requires the application of accounting policies that often require management to make substantial judgment or estimation in their application. These judgments and estimations may significantly affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. They may also affect reported amounts of revenues and expenses. Actual results could differ from those estimates. Translation of Foreign Currency Financial Statements —Bunge's reporting currency is the U.S. dollar. The functional currency of the majority of Bunge's foreign subsidiaries is their local currency and, as such, amounts included in the consolidated statements of income, comprehensive income (loss), cash flows and changes in equity are translated using average exchange rates during each period. Assets and liabilities are translated at period-end exchange rates and resulting foreign exchange translation adjustments are recorded in the consolidated balance sheets as a component of accumulated other comprehensive income (loss). Foreign Currency Transactions —Monetary assets and liabilities denominated in currencies other than the functional currency are remeasured into their respective functional currencies at exchange rates in effect at the balance sheet date. The resulting exchange gain or loss is included in Bunge's consolidated statements of income as foreign exchange gain (loss) unless the remeasurement gain or loss relates to an intercompany transaction that is of a long-term investment nature and for which settlement is not planned or anticipated in the foreseeable future. Gains or losses arising from translation of such transactions are reported as a component of accumulated other comprehensive income (loss) in Bunge's consolidated balance sheets. Cash and Cash Equivalents —Cash and cash equivalents include time deposits and readily marketable securities with original maturity dates of three months or less at the time of acquisition. Trade Accounts Receivable and Secured Advances to Suppliers —Trade accounts receivable and secured advances to suppliers are stated at their historical carrying amounts net of write-offs and allowances for uncollectible accounts. Bunge establishes an allowance for uncollectible trade accounts receivable and secured advances to farmers based on historical experience, farming economics and other market conditions as well as specific customer collection issues. Uncollectible accounts are written off when a settlement is reached for an amount below the outstanding historical balance or when Bunge has determined that collection is unlikely. Secured advances to suppliers bear interest at contractual rates which reflect current market interest rates at the time of the transaction. There are no deferred fees or costs associated with these receivables. As a result, there are no imputed interest amounts to be amortized under the interest method. Interest income is calculated based on the terms of the individual agreements and is recognized on an accrual basis. Bunge follows accounting guidance on the disclosure of the credit quality of financing receivables and the allowance for credit losses, which requires information to be disclosed at disaggregated levels, defined as portfolio segments and classes. Under this guidance, a class of receivables is considered impaired, based on current information and events, if Bunge determines it probable that all amounts due under the original terms of the receivable will not be collected. Recognition of interest income is suspended once the farmer defaults on the originally scheduled delivery of agricultural commodities as the collection of future income is determined not to be probable. No additional interest income is accrued from the point of default until ultimate recovery, at which time amounts collected are credited first against the receivable and then to any unrecognized interest income. Inventories —Readily marketable inventories ("RMI") are 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. All of Bunge's RMI are valued at fair value. These agricultural commodity inventories have quoted market prices in active markets, may be sold without significant further processing and have predictable and insignificant disposal costs. Changes in the fair values of merchandisable agricultural commodities inventories are recognized in earnings as a component of cost of goods sold. Inventories other than RMI are stated at the lower of cost or market by inventory product class. Cost is determined using primarily the weighted-average cost method. Derivative Instruments and Hedging Activities —Bunge enters into derivative instruments to manage its exposure to movements associated with agricultural commodity prices, transportation costs, foreign currency exchange rates, interest rates and energy costs. Bunge's use of these instruments is generally intended to mitigate the exposure to market variables (see Note 14). Generally, derivative instruments are recorded at fair value in other current assets or other current liabilities in Bunge's consolidated balance sheets. Bunge assesses, both at the inception of a hedge and on an ongoing basis, whether any derivatives designated as hedges are highly effective in offsetting changes in the hedged items. The effective and ineffective portions of changes in fair values of derivative instruments designated as fair value hedges, along with the gains or losses on the related hedged items are recorded in earnings in the consolidated statements of income in the same caption as the hedged items. The effective portion of changes in fair values of derivative instruments that are designated as cash flow hedges are recorded in accumulated other comprehensive income (loss) and are reclassified to earnings when the hedged cash flows affect earnings or when the hedge is no longer considered to be effective. The ineffective portion of cash flow hedges is recorded in earnings. In addition, Bunge may designate certain derivative instruments as net investment hedges to hedge the exposure associated with its equity investments in foreign operations. The effective portions of changes in the fair values of net investment hedges, which are evaluated based on forward rates, are recorded as a component of accumulated other comprehensive income (loss) in the consolidated balance sheets and the ineffective portions of such derivative instruments are recorded in foreign exchange gains (losses) in the consolidated statements of income. Marketable Securities and Other Short-Term Investments —Bunge classifies its marketable securities and short-term investments as held-to-maturity and trading. Available-for sale securities are reported at fair value with unrealized gains (losses) included in accumulated other comprehensive income (loss). Held-to-maturity securities and investments represent financial assets in which Bunge has the intent and ability to hold to maturity. Trading securities are bought and held principally for the purpose of selling them in the near term and therefore held for only a short period of time. Bunge values its marketable securities at fair value and monitors its held-to-maturity investments for impairment periodically, and recognizes an impairment charge when the decline in fair value of an investment is judged to be other than temporary. Recoverable Taxes —Recoverable taxes include value-added taxes paid upon the acquisition of raw materials and taxable services and other transactional taxes, which can be recovered in cash or as compensation against income taxes or other taxes owed by Bunge, primarily in Brazil and Europe. These recoverable tax payments are included in other current assets or other non-current assets based on their expected realization. In cases where Bunge determines that recovery is doubtful, recoverable taxes are reduced by allowances for the estimated unrecoverable amounts. Property, Plant and Equipment, Net —Property, plant and equipment, net is stated at cost less accumulated depreciation and depletion. Major improvements that extend the life, capacity or efficiency or improve the safety of an asset are capitalized, while maintenance and repairs are expensed as incurred. Costs related to legal obligations associated with the future retirement of capitalized assets are capitalized as part of the cost of the related asset. Bunge generally capitalizes eligible costs to acquire or develop internal-use software that are incurred during the application development stage. Interest costs on borrowings during construction/completion periods of major capital projects are also capitalized. Included in property, plant and equipment are biological assets, primarily sugarcane, that are stated at cost less accumulated depletion. Depletion is calculated using the estimated units of production based on the remaining useful life of the growing sugarcane. Depreciation is computed based on the straight-line method over the estimated useful lives of the assets. Useful lives for property, plant and equipment are as follows: Years Biological assets 5 - 7 Buildings 10 - 50 Machinery and equipment 7 - 25 Furniture, fixtures and other 3 - 20 Computer software 3 - 10 Goodwill —Goodwill represents the cost in excess of the fair value of net assets acquired in a business acquisition. Goodwill is not amortized but is tested annually for impairment or between annual tests if events or circumstances indicate potential impairment. Bunge's annual impairment testing is generally performed during the fourth quarter of its fiscal year. Goodwill is tested for impairment at the reporting unit level, which has been determined to be the Company's operating segments or one level below the operating segments in certain instances (see Note 7). Impairment of Property, Plant and Equipment and Finite Lived Intangible Assets —Finite lived intangible assets include primarily trademarks, customer lists and port facility usage rights and are amortized on a straight-line basis over their contractual or legal lives (see Note 8) or their estimated useful lives where such lives are not determined by law or contract. Bunge reviews its property, plant and equipment and finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. Bunge bases its evaluation of recoverability on such indicators as the nature, future economic benefits and geographic locations of the assets, historical or future profitability measures and other external market conditions. If these indicators result in the expected non-recoverability of the carrying amount of an asset or asset group, Bunge evaluates potential impairment using undiscounted estimated future cash flows. If such undiscounted future cash flows during the asset's remaining useful life are below its carrying value, a loss is recognized for the shortfall, measured by the present value of the estimated future cash flows or by third-party appraisals. Bunge records impairments related to property, plant and equipment and finite-lived intangible assets used in the processing of its products in cost of goods sold in its consolidated statements of income. Any impairment of marketing or brand assets is recognized in selling, general and administrative expenses in the consolidated statements of income (see Note 9). Property, plant and equipment and other finite-lived intangible assets to be sold or otherwise disposed of are reported at the lower of carrying amount or fair value less cost to sell. Impairment of Investments in Affiliates —Bunge reviews its investments annually or when an event or circumstances indicate that a potential decline in value may be other than temporary. Bunge considers various factors in determining whether to recognize an impairment charge, including the length of time that the fair value of the investment is expected to be below its carrying value, the financial condition, operating performance and near-term prospects of the affiliate and Bunge's intent and ability to hold the investment for a period of time sufficient to allow for recovery of the fair value. Impairment charges for investments in affiliates are included within selling, general and administrative expenses (see Note 9 and 10). Share-Based Compensation —Bunge maintains equity incentive plans for its employees and non-employee directors (see Note 24). Bunge accounts for share-based compensation based on the grant date fair value. Share-based compensation expense is recognized on a straight-line basis over the requisite service period. Income Taxes —Income tax expenses and benefits are recognized based on the tax laws and regulations in the jurisdictions in which Bunge's subsidiaries operate. Under Bermuda law, Bunge is not required to pay taxes in Bermuda on either income or capital gains. The provision for income taxes includes income taxes currently payable and deferred income taxes arising as a result of temporary differences between the carrying amounts of existing assets and liabilities in Bunge's financial statements and their respective tax bases. Deferred tax assets are reduced by valuation allowances if current evidence does not suggest that the deferred tax asset will be realized. Accrued interest and penalties related to unrecognized tax benefits are recognized in income tax (expense) benefit in the consolidated statements of income (see Note 13). The calculation of tax liabilities involves management's judgments concerning uncertainties in the application of complex tax regulations in the many jurisdictions in which Bunge operates. Investment tax credits are recorded in income tax expense in the period in which such credits are granted. Revenue Recognition —Sales of agricultural commodities, fertilizers and other products are recognized when persuasive evidence of an arrangement exists, the price is determinable, the product has been delivered, title to the product and risk of loss transfer to the customer, which is dependent on the agreed upon sales terms with the customer and when collection of the sale price is reasonably assured. Sales terms provide for passage of title either at the time and point of shipment or at the time and point of delivery of the product being sold. Net sales consist of gross sales less discounts related to promotional programs and sales taxes. Interest income on secured advances to suppliers is included in net sales due to its operational nature (see Note 5). Shipping and handling charges billed to customers are included in net sales and related costs are included in cost of goods sold. Research and Development —Research and development costs are expensed as incurred. Research and development expenses were $17 million, $16 million and $20 million for the years ended December 31, 2016, 2015 and 2014, respectively. New Accounting Pronouncements —In November 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-18, Statement of Cash Flows (Topic 230), Restricted Cash (a consensus of the Emerging Issues Task Force) . Similar to ASU 2016-15 as described below, this update attempts to reduce diversity in practice and provides guidance on the presentation of restricted cash or restricted cash equivalents in the statement of cash flows. The guidance will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. Bunge is evaluating the impact of this guidance on its consolidated financial statements. In October 2016, the FASB issued ASU 2016-17, Consolidation (Topic 810), Interests Held through Related Parties That Are under Common Control, which provides that a single decision maker is not required to consider indirect interests held through related parties that are under common control with the decision maker to be equivalents of direct interests in their entity. The new guidance will be effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on Bunge's consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740), Intra-Entity Transfers of Assets Other Than Inventory, which eliminates an exception in the current guidance prohibiting a reporting entity to recognize income taxes consequences of an intra-entity transfer of an asset other than inventory, such as transfers of intellectual property and property, plant, and equipment, until the asset has been sold to an outside party. The new guidance does not include new disclosure requirements; however, existing disclosure requirements might be applicable when accounting for the current and deferred income taxes for an intra-entity transfer. ASU 2016-16 will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. Bunge is evaluating the impact of this standard on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force). This update attempts to reduce diversity in practice by providing guidance on the classification of certain cash receipts and payments in the statement of cash flows. The new standard is effective for Bunge for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. Bunge is evaluating the impact of this standard on its consolidated financial statements. In June 2016, the FASB issued 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 new guidance will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. Bunge is evaluating the impact of this standard on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation—Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting . This update identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The adoption of this standard is not expected to have a material impact on Bunge's consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . Under the new provisions, all lessees will report on the balance sheet a right-of-use asset and a liability for the obligation to make payments with the exception of those leases with a term of 12 months or less. The new provisions will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. Bunge is evaluating the expected impact of this standard on its consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments —Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities , which amends the guidance relating to the classification and measurement of financial instruments. Changes to the current guidance primarily affect the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. The new standard is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is not permitted except for certain provisions. Bunge is evaluating the expected impact of this standard on its consolidated financial statements. In May 2014, the FASB amended ASC (Topic 605) Revenue Recognition and created ASC ( Topic 606 ) Revenue from Contracts with Customers . The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The initial effective date is for interim and annual periods beginning on or after December 15, 2016. However, in August 2015, the FASB issued an amendment effectively deferring the implementation date for all entities by one year but also permitting companies to early adopt the guidance as of the original effective date, but not before January 1, 2017. During 2016, the FASB issued additional implementation guidance and practical expedients in ASU 2016-08 Revenue from Contracts with Customers (Topic 606), Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , ASU 2016-10 Revenue from Contracts with Customers (Topic 606), Identifying Performance Obligations and Licensing , ASU 2016-12 Revenue from Contracts with Customers (Topic 606), Narrow-Scope Improvements and Practical Expedients, and ASU 2016-20 Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers, to improve the guidance. The new requirements may be implemented either retrospectively for all prior periods presented (i.e., the full retrospective approach), or retrospectively with a cumulative-effect adjustment at the date of initial application (i.e., the modified retrospective approach). The Company expects to adopt the standard under the modified retrospective approach upon its effective date with a cumulative-effect adjustment to opening retained earnings. The Company has substantially completed its adoption assessment and does not expect a material measurement impact on the Company's results of operations, financial position or cash flows. The adoption of the new guidance will require expanded disclosure which the Company is still evaluating. Recently Adopted Accounting Pronouncements —In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740), Balance Sheet Classification of Deferred Taxes . The amendments in this update require that deferred tax liabilities and assets be classified as noncurrent in a classified balance sheet. The update is effective for fiscal years beginning after December 15, 2016 on a prospective or retrospective basis, with earlier application permitted. Bunge early adopted this ASU on a prospective basis effective April 1, 2016 and the adoption did not have a material impact on Bunge's consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, Interest—Imputation of Interest (Subtopic 835-30), Simplifying the Presentation of Debt Issuance Costs. The amendments in this update require debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability, consistent with debt discounts, instead of being presented as an asset. Bunge adopted this ASU upon its effective date of January 1, 2016 and the adoption did not have a material impact on Bunge's consolidated financial statements. In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810), Amendments to the Consolidation Analysis. The standard makes targeted amendments to the current consolidation guidance and ends the deferral granted to investment companies from applying the VIE guidance and requires companies to reevaluate all legal entities under revised consolidation guidance. The revised consolidation rules provide guidance for evaluating: i) limited partnerships and similar entities for consolidation, ii) how decision maker or service provider fees affect the consolidation analysis, iii) how interests held by related parties affect the consolidation analysis and iv) the consolidation analysis required for certain investment funds. The standard was effective for interim and annual reporting periods beginning after December 15, 2015 and Bunge adopted ASU 2015-02 upon its effective date of January 1, 2016 using a modified retrospective approach. As a result of the initial application of ASU 2015-02, Bunge deconsolidated a Brazilian grain terminal and the remainder of its previously consolidated private equity and other investment funds. There was no cumulative effect to retained earnings as a result of the deconsolidation of these entities since there was no difference between the net amounts subtracted from Bunge's financial statements and the retained interest in those entities. |
BUSINESS ACQUISITIONS AND DISPO
BUSINESS ACQUISITIONS AND DISPOSITIONS | 12 Months Ended |
Dec. 31, 2016 | |
BUSINESS ACQUISITIONS AND DISPOSITIONS | |
BUSINESS ACQUISITIONS AND DISPOSITIONS | 2. BUSINESS ACQUISITIONS AND DISPOSTIONS Acquisitions On October 4, 2016, Bunge acquired a 62.8% equity stake in Walter Rau Neusser Öl und Fett Aktiengesellschaft ("Walter Rau Neusser"), a vegetable oil blends producer for large-scale commercial customers based in Germany. Bunge paid approximately $33 million for its controlling interest in Walter Rau Neusser and has been consolidated in Bunge's financial statements. On August 30, 2016, Bunge announced it had reached an agreement to acquire a controlling interest in Grupo Minsa S.A.B. de C.V. ("Minsa"), a leading corn flour producer in North America. The transaction is expected to close in the first half of 2017, subject to certain closing conditions, including the resolution of pending litigation brought by a former shareholder of the parent company of Minsa challenging the proposed acquisition. As part of the transaction, Bunge will acquire control of four mills in Mexico and two mills in the United States. The purchase price is expected to be approximately $311 million, subject to working capital and other adjustments. On February 28, 2017, Bunge and Cargill, Inc. closed on the acquisition of two oilseed processing plants and operations in the Netherlands and France pursuant to an agreement on August 5, 2016. Bunge paid a total purchase price of approximately $225 million, plus working capital and other adjustments of approximately $120 million. Results of operations for this acquisition will be included in Bunge’s consolidated financial statements from the date of acquisition. In October 2015, Bunge Alimentos S.A., an indirect wholly owned subsidiary of Bunge, closed on the acquisition of 100% ownership interest in Moinho Pacifico, a Brazilian wheat mill and port terminal in Santos, Brazil. Bunge paid approximately 1,087 million Brazilian reais (approximately $282 million). The final allocation of the purchase price based on the fair values of assets and liabilities acquired resulted in $98 million in property, plant and equipment, $10 million in inventory, $9 million in other net assets and liabilities and $97 million of finite-lived intangible assets. The transaction also resulted in $68 million of goodwill allocated to Bunge's milling operations in Brazil. In October 2015, Bunge acquired Whole Harvest Foods ("WHF") for $27 million, including $25 million in cash and $2 million in a working capital adjustment. The purchase price allocation resulted in $4 million in property, plant and equipment, $2 million in inventory and $15 million of intangible assets. The transaction also resulted in $6 million of goodwill allocated to Bunge's edible oils operations in the United States. WHF refines expeller pressed soybean, canola, and cottonseed oil to produce extended life oil that is chemical solvent, trans fat and cholesterol free. WHF has operations in North Carolina and a packaging/distribution center in Nevada within the United States. In June 2015, Bunge entered into a transaction to acquire the 80% majority interest in a biodiesel entity operating a plant in Spain where Bunge had, prior to this transaction, a 20% interest accounted for under the equity method in its Agribusiness segment. The purchase price of the majority interest was $7 million, net of cash acquired including existing loans and other receivables totaling $3 million owed to Bunge by the entity were extinguished as part of the transaction. The preliminary purchase price of $7 million was allocated primarily to property, plant and equipment and $2 million to goodwill. In April 2015, Bunge and Saudi Agricultural and Livestock Investment Company ("SALIC"), formed a Canadian entity, G3. Bunge had a 51% ownership interest in G3. Bunge accounts for G3 under the equity method of accounting as the ownership interest does not provide Bunge with a controlling financial interest due to certain contractual restrictions. In July 2015, G3 closed on the acquisition of an approximate 61% ownership interest in G3 Canada Limited, formerly the Canadian Wheat Board ("CWB") for $368 million Canadian dollars (approximately $266 million, as of December 31, 2015). The remaining interest was acquired by the CWB Farmers Equity Trust. In order to fund the acquisition amount and future cash flow requirements, Bunge contributed capital to G3 of $130 million and SALIC contributed capital in the amount of $126 million and $115 million in the form of convertible debt. Simultaneously, the CWB acquired certain assets of Bunge's grain business in Canada for $88 million, which includes Bunge's export facility and grain elevators in Quebec for $54 million plus certain working capital of $34 million. The consolidated statement of income for the year ended December 31, 2015 includes a pre-tax gain of $47 million on the sale of the grain assets in Canada. In February 2016, SALIC completed the conversion of debt to equity under the promissory notes granted in favor of G3, thus reducing Bunge's ownership interest from 51% to 35%. Additionally, Bunge has exercised its right under a put option and sold an additional 10% ownership interest in G3 to SALIC for cash, which further reduced Bunge's ownership interest to 25%. In March 2015, Bunge acquired the assets of Heartland Harvest, Inc. ("HHI") for $47 million, including $40 million in cash and cash settlement of an existing third-party loan to HHI of $7 million. The purchase price allocation resulted in $18 million in property, plant and equipment, $2 million in inventory and $18 million of finite-lived intangible assets. The transaction also resulted in $9 million of goodwill allocated to Bunge's milling operations in the United State. HHI produces die cut pellets made of a variety of starches which are then expanded through popping, baking or frying in the production of certain lower fat snacks. HHI consists of one facility in the state of Illinois, United States. Dispositions On November 30, 2016, Bunge closed on the disposition of a 50% ownership interest in its Terfron port terminal Terminal Fronteira Norte Logistica S.A. ("TFN") in Brazil to Amaggi Exportaçao E Importaçao Ltda. for a total consideration in cash of approximately $145 million, which resulted in a gain of $90 million. As a result of this transaction Bunge will account for the TFN joint venture as an equity method investment. On November 30, 2016, Bunge and Wilmar International Limited ("Wilmar") completed the formation of a joint venture in Vietnam in which Wilmar will invest into Bunge's crush operations in Vietnam, creating a three-party joint venture with Bunge and Wilmar as equal 45% shareholders and Quang Dung, a leading soybean meal distributor in Vietnam, retaining its existing 10% stake in the operations. Bunge received $33 million cash in consideration for its 45% share of interest in Bunge's crush operations. This transaction resulted in a gain of $30 million. As a result of this transaction Bunge will account for the joint venture as an equity method investment. On February 1, 2016, SALIC Canada Limited ("SALIC Canada") converted two non-interest bearing convertible promissory notes issued to SALIC by G3 of $106 million into 148,323,000 common shares of G3, increasing SALIC Canada's ownership percentage in G3 from 49% to 65% and reducing Bunge Canada's ownership in G3 from 51% to 35%. On the same day, Bunge Canada and SALIC Canada transferred all of their common shares of G3 to G3 Global Holdings Limited Partnership in exchange for additional Class A limited partnership units in G3 Global Holdings Limited Partnership. As a result, as of February 1, 2016, G3 Global Holdings Limited Partnership became the holder of all of the issued and outstanding common shares in G3. On March 30, 2016, Bunge Canada, under the G3 Global Holdings Shareholders Agreement, exercised a contractual put right and sold 10% of its common shares to SALIC Canada in exchange for $37 million of cash so that Bunge Canada now holds 25% ownership of G3 Global Holdings Limited Partnership and SALIC Canada holds 75% ownership. |
TRADE STRUCTURED FINANCE PROGRA
TRADE STRUCTURED FINANCE PROGRAM | 12 Months Ended |
Dec. 31, 2016 | |
TRADE STRUCTURED FINANCE PROGRAM | |
TRADE STRUCTURED FINANCE PROGRAM | 3. TRADE STRUCTURED FINANCE PROGRAM Bunge engages in various trade structured finance activities to leverage the value of its trade flows across its operating regions. For the years ended December 31, 2016 and 2015, net return from these activities, were $57 million and $66 million, respectively, and were included as a reduction of cost of goods sold in the accompanying consolidated statements of income. These activities include programs under which Bunge generally obtains U.S. dollar-denominated letters of credit ("LCs") (each based on an underlying commodity trade flow) from financial institutions and time deposits denominated in either the local currency of the financial institutions counterparties or in U.S. dollars, as well as foreign exchange forward contracts, all of which are subject to legally enforceable set-off agreements. The LCs and foreign exchange contracts are presented within the line item letter of credit obligations under trade structured finance program on the consolidated balance sheets as of December 31, 2016 and December 31, 2015. The table below summarizes the assets and liabilities included in the condensed consolidated balance sheets and the associated fair value amounts at December 31, 2016 and December 31, 2015, related to the program. The fair values approximated the carrying amount of the related financial instruments. (US$ in millions) December 31, December 31, Current assets: Carrying value of time deposits $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value (Level 2 measurement) of time deposits $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-current assets: Carrying value of time deposits $ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value (Level 2 measurement) of time deposits $ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current liabilities: Carrying value of letters of credit obligations and foreign exchange contracts $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value (Level 2 measurement) of letters of credit obligations $ $ Fair value (Level 2 measurement) of foreign exchange forward contracts-(gains) losses — ​ ​ ​ ​ ​ ​ ​ ​ Total fair value (Level 2 measurement) of letters of credit obligations and foreign exchange contracts $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2016 and 2015, time deposits, LCs, and foreign exchange contracts of $5,732 million and $3,394 million, respectively, were presented net on the consolidated balance sheets as the criteria of ASC 210-20, Offsetting , had been met. At December 31, 2016 and 2015, time deposits, including those presented on a net basis, carried weighted-average interest rates of 2.36% and 2.21%, respectively. During the years ended December 31, 2016, 2015 and 2014, total net proceeds from issuances of LCs were $7,191 million, $5,563 million and $7,058 million, respectively. These cash inflows are offset by the related cash outflows resulting from placement of the time deposits and repayment of the LCs. All cash flows related to the programs are included in operating activities in the consolidated statements of cash flows. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2016 | |
INVENTORIES | |
INVENTORIES | 4. INVENTORIES Inventories by segment are presented below. RMI are agricultural commodity inventories, such as soybeans, soybean meal, soybean oil, corn and wheat, carried at fair value because of their commodity characteristics, widely available markets and international pricing mechanisms. All other inventories are carried at lower of cost or market. (US$ in millions) December 31, December 31, Agribusiness (1) $ $ Edible Oil Products (2) Milling Products Sugar and Bioenergy (3) Fertilizer ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Includes RMI of $3,593 million and $3,393 million at December 31, 2016 and 2015, respectively. Of these amounts $2,523 million and $2,513 million can be attributable to merchandising activities at December 31, 2016 and 2015, respectively. (2) Includes RMI of bulk soybean and canola oil in the aggregate amount of $123 million and $110 million at December 31, 2016 and 2015, respectively. (3) Includes sugar RMI, which can be attributable to Bunge's trading and merchandising business of $139 million and $163 million at December 31, 2016 and 2015, respectively. |
OTHER CURRENT ASSETS
OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2016 | |
OTHER CURRENT ASSETS | |
OTHER CURRENT ASSETS | 5. OTHER CURRENT ASSETS Other current assets consist of the following: (US$ in millions) December 31, December 31, Unrealized gains on derivative contracts, at fair value $ $ Prepaid commodity purchase contracts (1) Secured advances to suppliers, net (2) Recoverable taxes, net Margin deposits Marketable securities, at fair value and other short-term investments Deferred purchase price receivable, at fair value (3) Prepaid expenses Other ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Prepaid commodity purchase contracts represent advance payments against contracts for future delivery of specified quantities of agricultural commodities. (2) Bunge provides cash advances to suppliers, primarily Brazilian farmers of soybeans and sugarcane, to finance a portion of the suppliers' production costs. Bunge 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 farmer's crop is harvested and sold. The secured advances to farmers are reported net of allowances of $1 million and $2 million at December 31, 2016 and December 31, 2015, respectively. There were no significant changes in the allowance for 2016 and 2015, respectively. Interest earned on secured advances to suppliers of $38 million, $38 million and $37 million, respectively, for the years ended December 31, 2016, 2015 and 2014, respectively, is included in net sales in the consolidated statements of income. (3) Deferred purchase price receivable represents additional credit support for the investment conduits in Bunge's accounts receivables sales program (see Note 17). Marketable Securities and Other Short-Term Investments —The Company invests in foreign government securities, corporate debt securities, deposits, and other securities. The following is a summary of amounts recorded on the consolidated balance sheets for marketable securities and other short-term investments. (US$ in millions) December 31, December 31, Foreign government securities $ $ Corporate debt securities Certificate of deposits/time deposits Other ​ ​ ​ ​ ​ ​ ​ ​ Total marketable securities and other short-term investments $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2016, total marketable securities and other short-term investments includes $22 million of assets classified as available for sale, $63 million as trading and $9 million as other short-term investments. As of December 31, 2015, total marketable securities and other short-term investments includes $76 million of assets classified as held-to-maturity and $158 million as trading. Held-to-maturity foreign government and corporate debt securities and certificate of deposits/time deposits are expected to be converted to cash within a twelve month period and are therefore classified as current. Due to the short term nature of these investments, carrying value approximates fair value. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2016 | |
PROPERTY, PLANT AND EQUIPMENT | |
PROPERTY, PLANT AND EQUIPMENT | 6. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consist of the following: December 31, (US$ in millions) 2016 2015 Land $ $ Biological assets Buildings Machinery and equipment Furniture, fixtures and other Construction in progress ​ ​ ​ ​ ​ ​ ​ ​ Less: accumulated depreciation and depletion ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Bunge capitalized expenditures of $810 million, $592 million and $846 million during the years ended 2016, 2015 and 2014, respectively. Included in these capitalized expenditures was capitalized interest on construction in progress of $9 million, $7 million and $6 million for the years ended December 31, 2016, 2015 and 2014, respectively. Depreciation and depletion expense was $517 million, $518 million and $576 million for the years ended December 31, 2016, 2015 and 2014, respectively. |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2016 | |
GOODWILL | |
GOODWILL | 7. GOODWILL Bunge performs its annual goodwill impairment testing in the fourth quarter of each year. Step 1 of the goodwill impairment test compares the fair value of Bunge's reporting units to which goodwill has been allocated to the carrying values of those reporting units. The fair value of certain reporting units is determined using a combination of two methods: estimates based on market earnings multiples of peer companies identified for the reporting unit (the market approach) and a discounted cash flow model with estimates of future cash flows based on internal forecasts of revenues and expenses (the income approach). The market multiples are generally derived from public information related to comparable companies with operating and investing characteristics similar to those reporting units and from market transactions in the industry. The income approach estimates fair value by discounting a reporting unit's estimated future cash flows using a weighted-average cost of capital that reflects current market conditions and the risk profile of the respective business unit and includes, among other things, assumptions about variables such as commodity prices, crop and related throughput and production volumes, profitability, future capital expenditures and discount rates, all of which are subject to a high degree of judgment. For other reporting units, the estimated fair value of the reporting unit is determined utilizing a discounted cash flow analysis. Changes in the carrying value of goodwill by segment for the years ended December 31, 2016 and 2015 are as follows: (US$ in millions) Agribusiness Edible Oil Milling Sugar and Fertilizer Total Goodwill Accumulated impairment losses ) — ) ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance, December 31, 2014, net — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Goodwill acquired — — Impairment (3) — ) — — — ) Tax benefit on goodwill amortization (2) ) — — — — ) Foreign exchange translation ) ) ) — ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Goodwill, gross of impairments Accumulated impairment losses ) ) ) ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance, December 31, 2015, net — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Goodwill acquired (1) — — — — Measurement period adjustments — — ) — — ) Tax benefit on goodwill amortization (2) ) — — — — ) Foreign exchange translation — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Goodwill, gross of impairments Accumulated impairment losses ) ) ) ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance, December 31, 2016, net $ $ $ $ — $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Relates to the 2016 acquisition of Walter Rau Neusser. (2) Bunge's Brazilian subsidiary's tax deductible goodwill is in excess of its book goodwill. For financial reporting purposes for goodwill acquired prior to 2009, the tax benefits attributable to the excess tax goodwill are first used to reduce associated goodwill and then other intangible assets to zero, prior to recognizing any income tax benefit in the consolidated statements of income. (3) In 2015, goodwill impairment charge of $13 million represents all of the goodwill of the Brazilian tomato products business, recorded in the fourth quarter upon completion of Bunge's annual impairment analysis. This analysis was performed using discounted cash flow projections (the income approach) to determine the fair value of the business unit. The income approach estimates fair value by discounting the business unit's estimated future cash flows using a discount rate that reflects current market conditions and the risk profile of the business and includes, among other things, making assumptions about variables such as product pricing, future profitability and future capital expenditures that might be used by a market participant. All of these assumptions are subject to a high degree of judgment. |
OTHER INTANGIBLE ASSETS
OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2016 | |
OTHER INTANGIBLE ASSETS | |
OTHER INTANGIBLE ASSETS | 8. OTHER INTANGIBLE ASSETS Other intangible assets consist of the following: December 31, (US$ in millions) 2016 2015 Trademarks/brands, finite-lived $ $ Licenses Port rights Other ​ ​ ​ ​ ​ ​ ​ ​ Less accumulated amortization: Trademarks/brands (1) ) ) Licenses ) ) Port rights ) ) Other ) ) ​ ​ ​ ​ ​ ​ ​ ​ ) ) ​ ​ ​ ​ ​ ​ ​ ​ Intangible assets, net of accumulated amortization $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Bunge's Brazilian subsidiary's tax deductible goodwill in the Agribusiness segment is in excess of its book goodwill. For financial reporting purposes, for other intangible assets acquired prior to 2009, before recognizing any income tax benefit of tax deductible goodwill in excess of its book goodwill in the consolidated statements of income and after the related book goodwill has been reduced to zero, any such remaining tax deductible goodwill in excess of its book goodwill is used to reduce other intangible assets to zero. In 2016, Bunge acquired $9 million of port rights, $4 million of brands and trademarks, and $8 million other intangible assets. Bunge allocated $12 million to the Edible Oils segment and $9 million to the Agribusiness segment. Finite lives of these intangibles range from 10 to 27 years. In 2015, Bunge acquired $73 million of port rights and $55 million other intangible assets including $36 million of customer lists. Bunge allocated $111 million to the Milling segment, $15 million to the Edible Oils segment and $2 million to the Agribusiness segment. Finite lives of these intangibles range from 10 to 27 years. Aggregate amortization expense was $31 million, $27 million and $32 million for the years ended December 31, 2016, 2015 and 2014, respectively. The estimated future aggregate amortization expense is $31 million for 2017 and approximately $31 million annually for 2018 through 2020. |
IMPAIRMENTS
IMPAIRMENTS | 12 Months Ended |
Dec. 31, 2016 | |
IMPAIRMENTS | |
IMPAIRMENTS | 9. IMPAIRMENTS For the year ended December 31, 2016, Bunge recorded pre-tax, impairment charges of $87 million, of which $9 million and $71 million are in cost of goods sold and other income (expense)—net, respectively, in its consolidated statement of income. These amounts are primarily made up of $44 million that relates to the impairment of an investment in affiliate and other investments in the Sugar and Bioenergy segment, $15 million that relates to the impairment of an investment in affiliate in the Agribusiness segment, $12 million that relates to an intangible asset impairment of aquaculture patents and $9 million that relates to a property, plant and equipment impairment of an Argentina fertilizer plant. The remaining impairment amounts recorded by Bunge for the year ended December 31, 2016 were individually insignificant. The fair values of the assets were determined utilizing discounted future expected cash flows, and in the case of the investment in affiliate in the Agribusiness segment, net market value based on quotes of similar assets. For the year ended December 31, 2015, Bunge recorded pre-tax, impairment charges of $57 million, of which $15 million, $14 million and $13 million are included in cost of goods sold, selling, general and administrative expenses and goodwill impairment, respectively, in its consolidated statement of income. These amounts are primarily made up of $15 million that relates to the announced closure of an oil packaging plant in the United States, $14 million that relates to the impairment of an equity method investment in a freight shipping company in Europe and $13 million that relates to a pre-tax goodwill impairment charge related to the tomato products business in Brazil. The remaining impairment amounts recorded by Bunge for the year ended December 31, 2015 were individually insignificant. The fair values of the assets were determined utilizing discounted future expected cash flows, and in the case of the equity method investment, net market value based on broker quotes of similar assets. For the year ended December 31, 2014, Bunge recorded pre-tax, non-cash impairment charges of $130 million, of which $103 million and $18 million are included in cost of goods sold and selling, general and administrative expenses, respectively, in its consolidated statement of income. These amounts are primarily made up of $114 million that relates to a Brazil sugarcane mill and a portion of the associated biological assets as well as agricultural machinery in the Sugar and Bioenergy segment, $5 million that relates to the impairment of an investment in a biodiesel company in Europe and $2 million in certain Agribusiness assets in Brazil. The remaining impairment amounts recorded by Bunge for the year ended December 31, 2014 were individually insignificant. The fair values of the assets were determined utilizing discounted future expected cash flows and, in the case of the agricultural machinery, bids from prospective buyers. Nonrecurring fair value measurements —The following table summarizes assets measured at fair value on a nonrecurring basis subsequent to initial recognition at December 31, 2016, 2015 and 2014, respectively. For additional information on Level 1, 2 and 3 inputs see Note 14. Fair Value Carrying Value Impairment Losses (US$ in millions) Level 1 Level 2 Level 3 Property, plant and equipment $ $ — $ — $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Intangibles $ — $ — $ — $ — $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Investment in affiliates and other investments $ $ — $ — $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Carrying Value Impairment Losses (US$ in millions) Level 1 Level 2 Level 3 Property, plant and equipment $ $ — $ — $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Goodwill (see Note 7) $ — $ — $ — $ — $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Investments in affiliates $ $ — $ — $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Carrying Value Impairment Losses (US$ in millions) Level 1 Level 2 Level 3 Non-current assets held for sale $ $ — $ — $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Investment in affiliates $ $ — $ — $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Property, plant and equipment $ $ — $ — $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
INVESTMENTS IN AFFILIATES
INVESTMENTS IN AFFILIATES | 12 Months Ended |
Dec. 31, 2016 | |
INVESTMENTS IN AFFILIATES | |
INVESTMENTS IN AFFILIATES | 10. INVESTMENTS IN AFFILIATES Bunge participates in various unconsolidated joint ventures and other investments accounted for using the equity method. Certain equity method investments at December 31, 2016 are described below. Bunge allocates equity in earnings of affiliates to its reporting segments. Agribusiness Vietnam Agribusiness Holdings Ptd. Ltd. —Bunge and Wilmar International Limited ("Wilmar") completed the formation of a joint venture in Vietnam in which Wilmar will invest into Bunge's crush operations in Vietnam, creating a three-party joint venture with Bunge and Wilmar as equal 45% shareholders and Quang Dung, a leading soybean meal distributor in Vietnam, retaining its existing 10% stake in the operations. Terminal Fronteira Norte LogÃstica S.A.("TFN") —Bunge has a 50% ownership interest in TFN, a joint venture with Amaggi located in Barcarena, Brazil. The TFN complex is mainly dedicated to exporting soybean and corn from the key Brazilian producing region of Mato Grosso. Terminais do Graneis do Guaruja("TGG") —Bunge has a 57% ownership interest in Terminais do Graneis do Guaruja, a joint venture with Amaggi International Ltd. located on the left bank of the Port of Santos, Brazil. TGG acts as a port terminal for reception, storage and shipment of solid bulk cargoes. G3 Global Holding GP Inc. —Bunge has a 25% ownership interest in G3 Global Holding GP Inc., a joint venture with SALIC that operates grain facilities in Canada. PT Bumiraya Investindo —Bunge has a 35% ownership interest in PT Bumiraya Investindo, an Indonesian palm plantation company. Caiasa—Paraguay Complejo Agroindustrial Angostura S.A —Bunge has a 33.33% ownership interest in an oilseed processing facility joint venture with Louis Dreyfus Company and Aceitera General Deheza S.A. ("AGD"), in Paraguay. Terminal 6 S.A. and Terminal 6 Industrial S.A —Bunge has a joint venture, Terminal 6 S.A., in Argentina with AGD for the operation of a port facility located in the Santa Fe province of Argentina. Bunge is also a party to a second joint venture with AGD, Terminal 6 Industrial S.A., that operates a crushing facility located adjacent to the port facility. Bunge owns 40% and 50%, respectively, of these joint ventures. Sugar and Bioenergy Solazyme Bunge Produtos Renovaveis Ltda. —In April 2012, Bunge entered into a joint venture with TerraVia Holdings Inc. (formerly Solazyme Inc.) for the production of renewable oils in Brazil, using sugar supplied by one of Bunge's mills. Bunge owns a 49.9% interest in this entity. ProMaiz —Bunge has a joint venture in Argentina with AGD for the operation of a corn wet milling facility. Bunge is a 50% owner in this joint venture. Southwest Iowa Renewable Energy, LLC ("SIRE") —Bunge is a 25% owner of SIRE. The other owners are primarily agricultural producers located in Southwest Iowa. SIRE operates an ethanol plant near Bunge's oilseed processing facility in Council Bluffs, Iowa. |
OTHER NON-CURRENT ASSETS
OTHER NON-CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2016 | |
OTHER NON-CURRENT ASSETS | |
OTHER NON-CURRENT ASSETS | 11. OTHER NON-CURRENT ASSETS Other non-current assets consist of the following: (US$ in millions) December 31, December 31, Recoverable taxes, net (1) $ $ Judicial deposits (1) Other long-term receivables Income taxes receivable (1) Long-term investments Affiliate loans receivable Long-term receivables from farmers in Brazil, net (1) Other ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) These non-current assets arise primarily from Bunge's Brazilian operations and their realization could take in excess of five years. Recoverable taxes, net —Recoverable taxes are reported net of allowances of $32 million and $20 million at December 31, 2016 and 2015, respectively. Judicial deposits —Judicial deposits are funds that Bunge has placed on deposit with the courts in Brazil. These funds are held in judicial escrow relating to certain legal proceedings pending legal resolution and bear interest at the SELIC rate, which is the benchmark rate of the Brazilian central bank. Income taxes receivable —Income taxes receivable includes overpayments of current income taxes plus accrued interest. These income tax prepayments are expected to be utilized for settlement of future income tax obligations. Income taxes receivable in Brazil bear interest at the SELIC rate. Affiliate loans receivable —Affiliate loans receivable, are primarily interest bearing receivables from unconsolidated affiliates with a remaining maturity of greater than one year. Long-term receivables from farmers in Brazil, net of reserves —Bunge provides financing to farmers in Brazil, primarily through secured advances against farmer commitments to deliver agricultural commodities (primarily soybeans) upon harvest of the then-current year's crop and through credit sales of fertilizer to farmers. The table below summarizes Bunge's recorded investment in long-term receivables from farmers in Brazil. December 31, (US$ in millions) 2016 2015 Legal collection process (1) $ $ Renegotiated amounts (2) Other long-term receivables ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) All amounts in legal process are considered past due upon initiation of legal action. (2) All renegotiated amounts are current on repayment terms. The average recorded investment in long-term receivables from farmers in Brazil for the years ended December 31, 2016 and 2015 was $235 million and $214 million, respectively. The table below summarizes Bunge's recorded investment in long-term receivables from farmers in Brazil and the related allowance amounts. December 31, 2016 December 31, 2015 (US$ in millions) Recorded Allowance Recorded Allowance For which an allowance has been provided: Legal collection process $ $ $ Renegotiated amounts For which no allowance has been provided: Legal collection process — — Renegotiated amounts — — Other long-term receivables — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The table below summarizes the activity in the allowance for doubtful accounts related to long-term receivables from farmers in Brazil. December 31, (US$ in millions) 2016 2015 Beginning balance $ $ Bad debt provisions Recoveries ) ) Write-offs ) ) Transfers (1) — Foreign exchange translation ) ​ ​ ​ ​ ​ ​ ​ ​ Ending balance $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Represents reclassifications from allowance for doubtful accounts-current for secured advances to suppliers. |
OTHER CURRENT LIABILITIES
OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2016 | |
OTHER CURRENT LIABILITIES | |
OTHER CURRENT LIABILITIES | 12. OTHER CURRENT LIABILITIES Other current liabilities consist of the following: (US$ in millions) December 31, December 31, Accrued liabilities $ $ Unrealized losses on derivative contracts at fair value Advances on sales Other ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2016 | |
INCOME TAXES | |
INCOME TAXES | 13. INCOME TAXES Bunge operates globally and is subject to the tax laws and regulations of numerous tax jurisdictions and authorities, as well as tax agreements and treaties among these jurisdictions. Bunge's tax provision is impacted by, among other factors, changes in tax laws, regulations, agreements and treaties, currency exchange rates and Bunge's profitability in each taxing jurisdiction. Bunge has elected to use the U.S. federal income tax rate to reconcile the actual provision for income taxes. The components of income from operations before income tax are as follows: Year Ended December 31, (US$ in millions) 2016 2015 2014 United States $ $ $ Non-United States ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The components of the income tax expense (benefit) are: Year Ended (US$ in millions) 2016 2015 2014 Current: United States $ ) $ $ Non-United States ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deferred: United States Non-United States ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Reconciliation of the income tax expense (benefit) if computed at the U.S. Federal income tax rate to Bunge's reported income tax expense (benefit) is as follows: Year Ended December 31, (US$ in millions) 2016 2015 2014 Income from operations before income tax $ $ $ Income tax rate % % % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income tax expense at the U.S. Federal tax rate Adjustments to derive effective tax rate: Foreign earnings taxed at different statutory rates ) ) ) Valuation allowances ) Fiscal incentives (1) ) ) ) Foreign exchange on monetary items ) ) Tax rate changes Non-deductible expenses Uncertain tax positions ) Deferred balance adjustments — ) Equity distributions — ) ) Foreign income taxed in Brazil — — ) Tax credits ) — — Other ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income tax (benefit) expense $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Fiscal incentives predominantly relate to investment incentives in Brazil that are exempt from Brazilian income tax. The primary components of the deferred tax assets and liabilities and the related valuation allowances are as follows: December 31, (US$ in millions) 2016 2015 Deferred income tax assets: (1) Net operating loss carryforwards $ $ Employee benefits Tax credit carryforwards Inventories — Intangibles Accrued expenses and other ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax assets Less valuation allowances ) ) ​ ​ ​ ​ ​ ​ ​ ​ Deferred tax assets, net of valuation allowance ​ ​ ​ ​ ​ ​ ​ ​ Deferred income tax liabilities: (1) Property, plant and equipment Undistributed earnings of affiliates Investments Inventories — ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax liabilities ​ ​ ​ ​ ​ ​ ​ ​ Net deferred tax assets $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Bunge has changed its presentation of the composition of deferred tax assets and liabilities to a net approach, where a net deferred tax asset or liability is disclosed for each primary component of the deferred tax assets and liabilities. The change in presentation did not impact the consolidated balance sheet presentation of deferred tax assets and liabilities. Bunge has provided a deferred tax liability totaling $13 million and $11 million as of December 31, 2016 and 2015, respectively for unremitted earnings that are not considered to be permanently reinvested. As of December 31, 2016, Bunge has determined it has unremitted earnings that are considered to be indefinitely reinvested of approximately $1,120 million and accordingly, no provision for income taxes has been made. If these earnings were distributed in the form of dividends or otherwise, Bunge would be subject to income taxes either in the form of withholding taxes or income taxes to the recipient; however, it is not practicable to estimate the amount of taxes that would be payable upon remittance of these earnings. At December 31, 2016, Bunge's net operating loss carryforwards totaled $3,350 million, of which $ 2,709 million have no expiration, including loss carryforwards of $1,705 million in Brazil. While loss carryforwards in Brazil can be carried forward indefinitely, annual utilization is limited to 30% of taxable income calculated on an entity by entity basis as Brazil tax law does not provide for a consolidated return concept. As a result, realization of these carryforwards may take in excess of five years. The remaining tax loss carryforwards expire at various periods beginning in 2016 through the year 2033. Income Tax Valuation Allowances —Bunge records valuation allowances when current evidence does not suggest that some portion or all of its deferred tax assets will be realized. The ultimate realization of deferred tax assets depends primarily on Bunge's ability to generate sufficient timely future income of the appropriate character in the appropriate taxing jurisdiction. As of December 31, 2016 and 2015, Bunge has recorded valuation allowances of $839 million and $798 million, respectively. The net increase of $41 million results primarily from cumulative translation adjustments for Brazil offset by the release of valuation allowances from sugar mills in Brazil. Unrecognized Tax Benefits —ASC Topic 740 requires applying a "more likely than not" threshold to the recognition and de-recognition of tax benefits. Accordingly, Bunge recognizes the amount of tax benefit that has a greater than 50 percent likelihood of being ultimately realized upon settlement. At December 31, 2016 and 2015, respectively, Bunge had recorded unrecognized tax benefits of $81 million and $63 million in other non-current liabilities and $49 million and $1 million in current liabilities in its consolidated balance sheets. During 2016, 2015 and 2014, respectively, Bunge recognized $10 million, $1million and $16 million of interest and penalty charges in income tax (expense) benefit in the consolidated statements of income. At December 31, 2016 and 2015, respectively, Bunge had included accrued interest and penalties of $36 million and $26 million within the related tax liability line in the consolidated balance sheets. A reconciliation of the beginning and ending amount of unrecognized tax benefits follows: (US$ in millions) 2016 2015 2014 Balance at January 1, $ $ $ Additions based on tax positions related to the current year Additions based on acquisitions — Additions based on tax positions related to prior years Reductions for tax positions of prior years — ) ) Settlement or clarification from tax authorities ) ) ) Expiration of statute of limitations ) ) ) Foreign currency translation ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at December 31, $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The majority of the additions based on tax positions related to prior years relates to three events recognized during 2016. During the second quarter of 2016, one of Bunge's European subsidiaries amended a tax position for the 2010-2015 tax years as a result of the receipt of a tax ruling, and filed refund claims. However, given the unique factual circumstances and the uncertain state of the applicable tax regulations, Bunge has recorded an unrecognized tax benefit of $240 million as of December 31, 2016. In addition, the Company recorded additional unrecognized tax benefits of $30 million and $26 million for tax positions in Asia in the first and fourth quarters of 2016. Except for a $24 million unrecognized tax benefit for temporary differences, substantially all of the unrecognized tax benefits balance, if recognized, would affect Bunge's effective tax rate. A significant portion of the unrecognized tax benefits, if recognized, would result in additional deferred tax assets that would be assessed for recoverability. It is anticipated that approximately $213 million of the unrecognized tax benefits, if recognized, would be fully offset by a valuation allowance as it is more likely than not that Bunge would not realize a tax benefit from the deferred tax assets. Bunge believes that it is reasonably possible that approximately $50 million of its unrecognized tax benefits may be recognized by the end of 2017 as a result of a lapse of the statute of limitations or settlement with the tax authorities. Bunge, through its subsidiaries, files income tax returns in the United States (federal and various states) and non-United States jurisdictions. The table below reflects the tax years for which Bunge is subject to income tax examinations by tax authorities: Open Tax Years North America 2009 - 2016 South America 2010 - 2016 Europe 2004 - 2016 Asia-Pacific 2003 - 2016 As of December 31, 2016, Bunge's Brazilian subsidiaries have received income tax and penalty assessments through 2012 of approximately 4,453 million Brazilian reais (approximately $1,366 million), plus applicable interest on the outstanding amount. Bunge has recorded unrecognized tax benefits related to these assessments of 23 million Brazilian reais (approximately $7 million) as of December 31, 2016. In addition, as of December 31, 2016, Bunge's Argentine subsidiary had received income tax assessments relating to 2006 through 2009 of approximately 1,275 million Argentine pesos (approximately $80 million), plus applicable interest on the outstanding amount of approximately 3,327 million Argentine pesos (approximately $209 million). Bunge anticipates that the tax authorities will examine subsequent fiscal years, although no notice has been rendered to Bunge's Argentine subsidiary. Management, in consultation with external legal advisors, believes that it is more likely than not that Bunge will prevail on the proposed assessments (with exception of unrecognized tax benefit discussed above) in Brazil and Argentina and intends to vigorously defend its position against these assessments. Bunge made cash income tax payments, net of refunds received, of $144 million, $271 million and $303 million during the years ended December 31, 2016, 2015, and 2014, respectively. |
FINANCIAL INSTRUMENTS AND FAIR
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2016 | |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | 14. FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS Bunge's various financial instruments include certain components of working capital such as cash and cash equivalents, trade accounts receivable and trade accounts payable. Additionally, Bunge uses short and long-term debt to fund operating requirements. Cash and cash equivalents, 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 3 for trade structured finance program, Note 17 for deferred purchase price receivable related to sales of trade receivables, Note 11 for long-term receivables from farmers in Brazil, net and other long-term investments, Note 16 for long-term debt, Note 9 for other non-recurring fair value measurements and Note 18 for employee benefit plans. Bunge's financial instruments also include derivative instruments and marketable securities, which are stated at fair value. Fair value is the expected price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Bunge determines the fair values of its readily marketable inventories, derivatives, and certain other assets based on the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs are inputs based on market data obtained from sources independent of Bunge that reflect the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are inputs that are developed based on the best information available in circumstances that reflect Bunge's own assumptions based on market data and on assumptions that market participants would use in pricing the asset or liability. The fair value standard describes three levels within its hierarchy that may be used to measure fair value. Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 1 assets and liabilities include exchange traded derivative contracts. Level 2: Observable inputs, including Level 1 prices (adjusted), 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. Level 2 assets and liabilities include readily marketable inventories and over-the-counter ("OTC") commodity purchase and sale contracts and other 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. Level 3: Unobservable 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. In evaluating the significance of fair value inputs, Bunge gives consideration to items that individually or when aggregated with other inputs, generally represent more than 10% of the fair value of the assets or liabilities. For such identified inputs, judgments are required when evaluating both quantitative and qualitative factors in the determination of significance for purposes of fair value level classification and disclosure. Level 3 assets and liabilities include assets and liabilities whose value is determined using proprietary pricing models, discounted cash flow methodologies or similar techniques; as well as, assets and liabilities for which the determination of fair value requires significant management judgment or estimation. Bunge believes a change in these inputs would not result in a significant change in the fair values. The majority of Bunge's exchange traded agricultural commodity futures are settled daily generally through its clearing subsidiary and, therefore, such futures are not included in the table below. Assets and liabilities are classified in their entirety based on the lowest level of input that is a significant component of the fair value measurement. The lowest level of input is considered Level 3. The following table sets forth, by level, Bunge's assets and liabilities that were accounted for at fair value on a recurring basis. Fair Value Measurements at Reporting Date December 31, 2016 December 31, 2015 (US$ in millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Readily marketable inventories (Note 4) $ — $ $ $ $ — $ $ $ Trade accounts receivable (1) — — — — Unrealized gain on designated derivative contracts (2) : Interest Rate — — — — — — Foreign exchange — — — — Unrealized gain on undesignated derivative contracts (2) : Interest rate — — — — — — Foreign exchange — — — Commodities Freight — — — — Energy — — Deferred purchase price receivable (Note 17) — — — — Other (3) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets $ $ $ $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities: Trade accounts payable (1) $ — $ $ $ $ — $ $ $ Unrealized loss on designated derivative contracts (4) : Interest rate — — — — Foreign exchange — — — — — — Unrealized loss on undesignated derivative contracts (4) : Foreign exchange — — — Commodities Freight — — — Energy — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities $ $ $ $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Trade accounts receivable and payable are generally stated at historical amounts, net of write-offs and allowances, with the exception of $6 million and $522 million, at December 31, 2016 and $6 million and $443 million at December 31, 2015, respectively, related to certain delivered inventory for which the receivable and payable, respectively, fluctuate based on changes in commodity prices. These receivables and payables are hybrid financial instruments for which Bunge has elected the fair value option. (2) Unrealized gains on designated and undesignated derivative contracts are generally included in other current assets. There were $5 million and nil included in other non-current assets at December 31, 2016 and December 31, 2015, respectively. (3) Other includes the fair values of marketable securities and investments in other current assets and other non-current assets. (4) Unrealized losses on designated and undesignated derivative contracts are generally included in other current liabilities. There were $18 million and nil included in other non-current liabilities at December 31, 2016 and December 31, 2015, respectively. Derivatives —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. Bunge'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. Bunge 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 valued at fair value generally determined 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. When unobservable inputs have a significant impact on the measurement of fair value, the instrument is categorized in Level 3. Exchange traded or cleared derivative contracts are classified in Level 1, thus transfers of assets and liabilities into and/or out of Level 1 occur infrequently. Transfers into Level 1 would generally only be expected to occur when an exchange cleared derivative contract historically valued using a valuation model as the result of a lack of observable inputs becomes sufficiently observable, resulting in the valuation price being essentially the exchange traded price. There were no significant transfers into or out of Level 1 during the periods presented. 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 Bunge'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 Bunge 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 consolidated balance sheets and 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 consolidated balance sheets and consolidated statements of income could differ. Level 3 Measurements —Transfers in and/or out of Level 3 represent existing assets or liabilities that were either previously categorized as a higher level for which the inputs to the model became unobservable or assets and liabilities that were previously classified as Level 3 for which the lowest significant input became observable during the period. Bunge's policy regarding the timing of transfers between levels is to record the transfers at the beginning of the reporting period. 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. In addition, with the exception of the exchange cleared instruments, Bunge is exposed to loss in the event of the non-performance by counterparties on OTC derivative instruments and forward purchase and sale contracts. Adjustments are made to fair values on occasions when non-performance risk is determined to represent a significant input in Bunge's fair value determination. These adjustments are based on Bunge's estimate of the potential loss in the event of counterparty non-performance. Bunge did not have significant adjustments related to non-performance by counterparties at December 31, 2016 and 2015, respectively. 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, and trade accounts receivable and payable, net, 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, Bunge uses proprietary information such as purchase and sale contracts and contracted prices for freight, premiums and discounts to value its contracts. Movements in the price of these unobservable inputs alone would not have a material effect on Bunge's financial statements as these contracts do not typically exceed one future crop cycle. 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 years ended December 31, 2016 and 2015. These instruments were valued using pricing models that management believes reflect the assumptions that would be used by a marketplace participant. Level 3 Instruments Fair Value Measurements (US$ in millions) Derivatives, (1) Readily Trade (2) Total Balance, January 1, 2016 $ $ $ ) $ Total gains and losses (realized/unrealized) included in cost of goods sold ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Purchases — ) Sales — ) — ) Issuances ) — — ) Settlements ) — Transfers into Level 3 ) ) Transfers out of Level 3 ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance, December 31, 2016 $ ) $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Derivatives, net include Level 3 derivative assets and liabilities. (2) Trade Accounts Receivable and Trade Accounts Payable, net, include Level 3 inventory related receivables and payables. Level 3 Instruments Fair Value Measurements (US$ in millions) Derivatives, (1) Readily Trade (2) Total Balance, January 1, 2015 $ ) $ $ ) $ Total gains and losses (realized/unrealized) included in cost of goods sold ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Purchases ) Sales — ) — ) Issuances ) — ) ) Settlements ) — Transfers into Level 3 ) Transfers out of Level 3 ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance, December 31, 2015 $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Derivatives, net include Level 3 derivative assets and liabilities. (2) Trade Accounts Receivable and Trade Accounts Payable, net, include Level 3 inventory related receivables and payables. The tables below summarize changes in unrealized gains or (losses) recorded in earnings during the years ended December 31, 2016 and 2015 for Level 3 assets and liabilities that were held at December 31, 2016 and 2015. Level 3 Instruments Fair Value Measurements (US$ in millions) Derivatives, (1) Readily Trade (2) Total Changes in unrealized gains and (losses) relating to assets and liabilities held at December 31, 2016 Cost of goods sold $ ) $ ) $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Changes in unrealized gains and (losses) relating to assets and liabilities held at December 31, 2015 Cost of goods sold $ $ ) $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Derivatives, net include Level 3 derivative assets and liabilities. (2) Trade Accounts Receivable and Trade Accounts Payable, net, include Level 3 inventory related receivables and payables. Derivative Instruments and Hedging Activities Interest rate derivatives —Bunge from time-to-time uses interest rate derivatives, including interest rate swaps, interest rate basis swaps, interest rate options or interest rate futures. Bunge has entered into interest rate swap agreements for the purpose of managing certain of its interest rate exposures. The interest rate swaps used by Bunge as hedging instruments have been recorded at fair value in the consolidated balance sheets with changes in fair value recorded contemporaneously in earnings. These swap agreements have been designated as fair value hedges. Additionally, the carrying amount of the associated hedged debt is adjusted through earnings for changes in the fair value arising from changes in benchmark interest rates. Ineffectiveness is recognized to the extent that these two adjustments do not offset. As of December 31, 2016, Bunge had fixed-to-variable interest rate swap agreements. Below is a summary of Bunge's current interest rate swap agreements designated as fair value hedge agreements as of December 31, 2016. Notional Amount of Hedged Notional Maturity Date Payment Weighted Fixed Rate $500 $ November 24, 2020 3 month LIBOR plus 1.91% % euro 800 euro June 16, 2023 6 month EURIBOR plus 1.64% % $550 $ August 15, 2026 3 month LIBOR plus 1.12% % Additionally, on various dates in 2016, Bunge entered into interest rate futures, one year interest rate swap agreements and forward rate agreements that do not qualify for hedge accounting, and therefore Bunge has not designated these as hedge instruments for accounting purposes. The interest rate futures, interest rate swaps and forward rate agreements have been recorded at fair value in the consolidated condensed balance sheets with changes in fair value recorded contemporaneously in earnings. Below is a summary of Bunge's outstanding interest rate swap agreements and forward rate agreements. December 31, 2016 Exchange Non-exchange Net (Short) & (1) Unit of (US$ in millions) (Short) (2) Long (2) Interest Rate Futures $ $ — $ — Notional Swaps — ) Notional Forward Rate Agreements — ) Notional (1) Exchange traded derivatives are presented on a net (short) and long position basis. (2) Non-exchange traded derivatives are presented on a gross (short) and long position basis. Foreign exchange derivatives and hedging activities —Bunge uses a combination of foreign exchange forward, swap and option contracts in certain of its operations to mitigate the risk from exchange rate fluctuations in connection with certain commercial and balance sheet exposures. The foreign exchange forward and option contracts may be designated as cash flow hedges. Bunge may also use net investment hedges to partially offset the translation adjustments arising from the remeasurement of its investment in certain of its foreign subsidiaries. Foreign exchange risk is also managed through the use of foreign currency debt. Bunge has 800 million euro senior unsecured euro-denominated notes of which 797 million euro is designated as, and effective as, a net investment hedge of euro denominated assets. Accordingly, foreign currency transaction gains or losses due to spot rate fluctuations on the euro-denominated debt instruments are included in foreign currency translation adjustment within OCI. Bunge assesses, both at the inception of the hedge and on an ongoing basis, whether the derivatives that are used in hedge transactions are highly effective in offsetting changes in the hedged items. The table below summarizes the notional amounts of open foreign exchange positions. December 31, 2016 Exchange Non-exchange Net (Short) & (1) Unit of (US$ in millions) (Short) (2) Long (2) Foreign Exchange Options $ — $ ) $ Delta Forwards — ) Notional Swaps — ) Notional (1) Exchange traded derivatives are presented on a net (short) and long position basis. (2) Non-exchange traded derivatives are presented on a gross (short) and long position basis. Commodity derivatives —Bunge uses commodity derivative instruments to manage its exposure to movements associated with agricultural commodity prices. Bunge generally uses exchange traded futures and options contracts to minimize the effects of changes in the prices of agricultural commodities on its agricultural commodity inventories and forward purchase and sale contracts, but may also from time-to-time enter into OTC commodity transactions, including swaps, which are settled in cash at maturity or termination based on exchange-quoted futures prices. Forward purchase and sale contracts are primarily settled through delivery of agricultural commodities. While Bunge considers these exchange traded futures and forward purchase and sale contracts to be effective economic hedges, Bunge does not designate or account for the majority of its commodity contracts as hedges. The forward contracts require performance of both Bunge and the contract counterparty in future periods. 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 table below summarizes the volumes of open agricultural commodities derivative positions. December 31, 2016 Exchange Non-exchange Traded Net (Short) & (1) Unit of (Short) (2) Long (2) Agricultural Commodities Futures ) — — Metric Tons Options ) — — Metric Tons Forwards — ) Metric Tons Swaps — ) Metric Tons (1) Exchange traded derivatives are presented on a net (short) and long position basis. (2) Non-exchange traded derivatives are presented on a gross (short) and long position basis. Ocean freight derivatives —Bunge uses derivative instruments referred to as freight forward agreements (FFAs) and FFA options to hedge portions of its current and anticipated ocean freight costs. Changes in the fair values of ocean freight derivatives that are not designated as hedges are recorded in earnings. There were no designated hedges at December 31, 2016 and 2015, respectively. The table below summarizes the open ocean freight positions. December 31, 2016 Exchange Non-exchange Net (Short) & (1) Unit of (Short) (2) Long (2) Ocean Freight FFA ) — — Hire Days FFA Options ) — — Hire Days (1) Exchange cleared derivatives are presented on a net (short) and long position basis. (2) Non-exchange cleared derivatives are presented on a gross (short) and long position basis. Energy derivatives —Bunge uses energy derivative instruments for various purposes including to manage its exposure to volatility in energy costs. Bunge's operations use energy, including electricity, natural gas, coal, and fuel oil, including bunker fuel. The table below summarizes the open energy positions. December 31, 2016 Exchange Non-exchange Cleared Net (Short) & (1) Unit of (3) (Short) (2) Long (2) Natural Gas (3) Futures — — MMBtus Swaps — — MMBtus Energy—Other Futures — — Metric Tons Forwards — — Metric Tons Swaps — — Metric Tons Options ) — — Metric Tons (1) Exchange traded and cleared derivatives are presented on a net (short) and long position basis. (2) Non-exchange cleared derivatives are presented on a gross (short) and long position basis. (3) Million British Thermal Units ("MMBtus") are standard units of measurement used to denote an amount of electricity and natural gas, respectively. The Effect of Financial Instruments on the Consolidated Statements of Income The table below summarizes the effect of derivative instruments that are designated as fair value hedges and also derivative instruments that are undesignated on the consolidated statements of income for the years ended December 31, 2016 and 2015. Gain or (Loss) December 31, (US$ in millions) Location 2016 2015 Designated Derivative Contracts: Interest Rate Interest income/Interest expense $ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Undesignated Derivative Contracts: Interest Rate Interest income/Interest expense $ ) $ — Interest Rate Other income (expense)-net — ) Foreign Exchange Foreign exchange gains (losses) ) Foreign Exchange Cost of goods sold ) Commodities Cost of goods sold ) Freight Cost of goods sold Energy Cost of goods sold ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The table below summarizes the effect of financial instruments that are designated and qualify as cash flow and net investment hedges on the consolidated statement of income. Year Ended December 31, 2016 Gain or (Loss) (1) Gain or (1) Gain or (Loss) Recognized Notional Amount (US$ in millions) Location Amount Location Amount (2) Cash Flow Hedge: Foreign Exchange (3) $ $ Foreign exchange gains (losses) $ Foreign exchange gains (losses) $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Investment Hedge: Foreign Currency denominated debt (4) $ $ Foreign currency denominated debt $ — Foreign currency denominated debt $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign Exchange (3) $ — $ ) Foreign exchange gains (losses) $ — Foreign exchange gains (losses) $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ) $ — $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) The gain (loss) recognized relates to the effective portion of the hedging relationship. At December 31, 2016, Bunge expects to reclassify into income in the next 12 months $44 million of after-tax loss related to its foreign exchange cash flow hedges and nil for net investment hedges. (2) There was no gain or loss recognized in income relating to the ineffective portion of the hedging relationships or relating to amounts excluded from the assessment of hedge effectiveness. (3) The foreign exchange contracts mature at various dates through January 2018. (4) The euro loans mature in 2023. The table below summarizes the effect of financial instruments that are designated and qualify as cash flow hedges on the condensed consolidated statement of income for the year ended December 31, 2015. Year Ended December 31, 2015 Gain or (Loss) (1) Gain or (1) Gain or (Loss) Recognized Notional Amount (US$ in millions) Location Amount Location Amount (2) Cash Flow Hedge: Foreign Exchange (3) $ $ Foreign exchange gains (losses) $ ) Foreign exchange gains (losses) $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ) $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Investment Hedge: Foreign Exchange (3) $ $ Foreign exchange gains (losses) $ — Foreign exchange gains (losses) $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ — $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) The gain or (loss) recognized relates to the effective portion of the hedging relationship. At December 31, 2015, Bunge expected to reclassify into income in the next 12 months approximately $76 million of after-tax gains (losses) related to its foreign exchange cash flow hedges and nil for net investment hedges. (2) There was no gain or loss recognized in income relating to the ineffective portion of the hedging relationships or to amounts excluded from the assessment of hedge effectiveness. (3) The foreign exchange contracts matured at various dates through November 2020. |
SHORT-TERM DEBT AND CREDIT FACI
SHORT-TERM DEBT AND CREDIT FACILITIES | 12 Months Ended |
Dec. 31, 2016 | |
SHORT-TERM DEBT AND CREDIT FACILITIES | |
SHORT-TERM DEBT AND CREDIT FACILITIES | 15. SHORT-TERM DEBT AND CREDIT FACILITIES Bunge's short-term borrowings are typically sourced from various banking institutions and the U.S. commercial paper market. Bunge also borrows from time to time in local currencies in various foreign jurisdictions. Interest expense includes facility commitment fees, amortization of deferred financing costs and charges on certain lending transactions, including certain intercompany loans and foreign currency conversions in Brazil. The weighted-average interest rate on short-term borrowings at December 31, 2016 and 2015 was 8.69% and 4.92%, respectively. December 31, (US$ in millions) 2016 2015 Lines of credit: Secured, variable interest rate of 2.33% $ — $ Unsecured, variable interest rates from 1.27% to 32.00% (1) ​ ​ ​ ​ ​ ​ ​ ​ Total short-term debt $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Includes $148 million and $137 million of local currency borrowings in certain Central and Eastern European, South American, South African and Asia-Pacific countries at a weighted-average interest rate of 13.63% and 15.54% as of December 31, 2016 and 2015, respectively. Bunge's commercial paper program is supported by an identical amount of committed back up bank credit lines (the "Liquidity Facility") provided by banks that are rated at least A-1 by Standard & Poor's Financial Services and P-1 by Moody's Investors Service. On November 20, 2014, Bunge entered into an unsecured $600 million five-year Liquidity Facility with certain lenders party thereto. The Liquidity Facility replaced the then existing $600 million five-year liquidity facility, dated as of November 17, 2011. The cost of borrowing under the Liquidity Facility would typically be higher than the cost of issuing under Bunge's commercial paper program. At December 31, 2016 and December 31, 2015, there were no borrowings outstanding under the commercial paper program and no borrowings under the Liquidity Facility. In addition to the committed facilities discussed above, 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 December 31, 2016 and 2015, nil and nil were outstanding under these bilateral short-term credit lines, respectively. Loans under such credit lines are non-callable by the respective lenders. In addition, Bunge's operating companies had $257 million in short-term borrowings outstanding from local bank lines of credit at December 31, 2016 to support working capital requirements. |
LONG-TERM DEBT AND CREDIT FACIL
LONG-TERM DEBT AND CREDIT FACILITIES | 12 Months Ended |
Dec. 31, 2016 | |
LONG-TERM DEBT AND CREDIT FACILITIES | |
LONG-TERM DEBT AND CREDIT FACILITIES | 16. LONG-TERM DEBT AND CREDIT FACILITIES Long-term debt obligations are summarized below. December 31, (US$ in millions) 2016 2015 Revolving credit facilities $ — $ Term loan due 2019—three-month Yen LIBOR plus 0.75% (Tranche A) Term loan due 2019—fixed Yen interest rate of 0.96% (Tranche B) Term loan due 2019—three-month LIBOR plus 1.30% (Tranche C) 4.10% Senior Notes due 2016 — 5.90% Senior Notes due 2017 3.20% Senior Notes due 2017 8.50% Senior Notes due 2019 3.50% Senior Notes due 2020 1.85% Senior Notes due 2023—Euro — 3.25% Senior Notes due 2026 — Consolidated investment fund debt (1) — Other ​ ​ ​ ​ ​ ​ ​ ​ Subtotal Less: Current portion of long-term debt ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total long-term debt $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) There is no consolidated investment fund debt as of December 31, 2016. Bunge elected to account for $53 million at fair value as of December 31, 2015. The fair values of long-term debt, including current portion, at December 31, 2016 and 2015 $4,163 million and $3,940 million, respectively, are calculated based on interest rates currently available on comparable maturities to companies with credit standing similar to that of Bunge. The carrying amounts and fair values of long-term debt are as follows: December 31, December 31, (US$ in millions) Carrying Fair Value Fair Value Carrying Fair Value Fair Value Long-term debt, including current portion $ $ $ — $ $ $ On August 15, 2016, Bunge completed the sale of $700 million aggregate principal amount of 3.25% senior notes due August 15, 2026. The unsecured senior notes were issued by Bunge's 100% owned finance subsidiary, Bunge Limited Finance Corp., and are fully and unconditionally guaranteed by Bunge. The offering was made pursuant to a registration statement filed with the U.S. Securities and Exchange Commission. The net proceeds of $695 million were used for general corporate purposes, including, but not limited to, the repayment of outstanding indebtedness, which includes indebtedness under revolving credit facilities. On June 24, 2016, Bunge completed the refinancing on a $200 million three-year committed unsecured bilateral revolving credit facility, to mature on June 24, 2019. A further $500 million of unsecured bilateral revolving credit facilities were refinanced on September 23, 2016 to mature on September 23, 2019. Borrowings under these facilities bear interest at LIBOR plus a margin, which will vary from 0.65% to 1.40% per annum based on the credit ratings on its senior long-term unsecured debt. Amounts under the Facilities that remain undrawn are subject to a commitment fee payable at a rate ranging from 0.20% to 0.25%. On June 16, 2016, Bunge completed the sale of 600 million euro (approximately $670 million) aggregate principal amount of 1.85% senior notes due June 16, 2023 ("Notes"). Additionally, on November 17, 2016 Bunge completed the sale of 200 million euro (approximately $214 million) of the Notes bringing the aggregate principal amount to 800 million euro. The Notes were issued by Bunge's 100% owned finance subsidiary, Bunge Finance Europe B.V., and are fully and unconditionally guaranteed by Bunge. The offering was made pursuant to a registration statement filed with the U.S. Securities and Exchange Commission. The aggregated net proceeds of 802 million euro (approximately $887 million) were used for general corporate purposes, including, but not limited to the repayment of outstanding indebtedness, which includes indebtedness under revolving credit facilities. At December 31, 2016, Bunge had $5,015 million of unused and available borrowing capacity under its committed long-term credit facilities with a number of lending institutions. Certain land, property, equipment and investments in consolidated subsidiaries having a net carrying value of approximately $63 million at December 31, 2016 have been mortgaged or otherwise collateralized against long-term debt of $41 million at December 31, 2016. Principal Maturities —Principal maturities of long-term debt at December 31, 2016 are as follows: (US$ in millions) 2017 $ 2018 2019 2020 2021 Thereafter ​ ​ ​ ​ ​ Total (1) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Excludes changes in long-term debt attributable to fair value hedge accounting of $17 million. Bunge's credit facilities and certain senior notes require it to comply with specified financial covenants related to minimum net worth, minimum current ratio, a maximum debt to capitalization ratio and limitations on secured indebtedness. Bunge was in compliance with these covenants at December 31, 2016. During the years ended December 31, 2016, 2015 and 2014, Bunge paid interest, net of interest capitalized, of $234 million, $227 million and $223 million, respectively. |
TRADE RECEIVABLES SECURITIZATIO
TRADE RECEIVABLES SECURITIZATION PROGRAM | 12 Months Ended |
Dec. 31, 2016 | |
TRADE RECEIVABLES SECURITIZATION PROGRAM | |
TRADE RECEIVABLES SECURITIZATION PROGRAM | 17. TRADE RECEIVABLES SECURITIZATION PROGRAM Bunge and certain of its subsidiaries participate in a trade receivables securitization program ("Program") with a financial institution, as administrative agent, and certain commercial paper conduit purchasers and committed purchasers (collectively, the Purchasers) that provides for funding of up to $700 million against receivables sold into the Program. The Program is designed to enhance Bunge's financial flexibility by providing an additional source of liquidity for its operations. In connection with the Program, certain of Bunge's U.S. and non-U.S. subsidiaries that originate trade receivables may sell eligible receivables in their entirety on a revolving basis to a consolidated bankruptcy remote special purpose entity, Bunge Securitization B.V. ("BSBV") formed under the laws of The Netherlands. BSBV in turn sells such purchased trade receivables to the administrative agent (acting on behalf of the Purchasers) pursuant to a receivables transfer agreement. In connection with these sales of accounts receivable, Bunge receives a portion of the proceeds up front and an additional amount upon the collection of the underlying receivables, which is expected to be generally between 10% and 15% of the aggregate amount of receivables sold through the Program. Koninklijke Bunge B.V., a wholly owned subsidiary of Bunge, acts as master servicer, responsible for servicing and collecting the accounts receivable for the Program. The Program terminates on May 26, 2021. The trade receivables sold under the program are subject to specified eligibility criteria, including eligible currencies, and country and obligor concentration limits. The table below summarizes the cash flows and discounts of Bunge's trade receivables associated with the Program. Servicing fees under the Program were not significant in any period. (US$ in millions) December 31, December 31, Receivables sold which were derecognized on Bunge balance sheet $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Proceeds received in cash related to transfer of receivables $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash collections from customers on receivables previously sold $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross receivables sold $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (US$ in millions) December 31, December 31, December 31, Discounts related to gross receivables sold included in SG&A $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (US$ in millions) December 31, December 31, Deferred purchase price included in other current assets $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Bunge's risk of loss following the sale of the trade receivables is limited to the deferred purchase price ("DPP"), and is included in other current assets in the consolidated balance sheets (see Note 5). The DPP will be repaid in cash as receivables are collected, generally within 30 days. Delinquencies and credit losses on trade receivables sold under the Program during the years ended December 31, 2016 and 2015 were insignificant. Bunge has reflected all cash flows under the Program as operating cash flows in the consolidated statements of cash flows for the years ended December 31, 2016, 2015 and 2014. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2016 | |
EMPLOYEE BENEFIT PLANS | |
EMPLOYEE BENEFIT PLANS | 18. EMPLOYEE BENEFIT PLANS Certain U.S., Canadian, European and Brazilian based subsidiaries of Bunge sponsor non-contributory defined benefit pension plans covering substantially all employees of the subsidiaries. The plans provide benefits based primarily on participants' salary and length of service. The funding policies for Bunge's defined benefit pension plans are determined in accordance with statutory funding requirements. The most significant defined benefit plan is in the United States. The U.S. funding policy requires at least those amounts required by the Pension Protection Act of 2006. Assets of the plans consist primarily of equity and fixed income investments. Certain United States and Brazil based subsidiaries of Bunge have benefit plans to provide certain postretirement healthcare benefits to eligible retired employees of those subsidiaries. The plans require minimum retiree contributions and define the maximum amount the subsidiaries will be obligated to pay under the plans. Bunge's policy is to fund these costs as they become payable. Plan Amendments and Transfers In and Out —There were no significant amendments, settlements or transfers into or out of Bunge's employee benefit plans during the years ended December 31, 2016 or 2015. The following table sets forth in aggregate the changes in the defined benefit pension and postretirement benefit plans' benefit obligations, assets and funded status at December 31, 2016 or 2015. A measurement date of December 31 was used for all plans. Pension Postretirement (US$ in millions) 2016 2015 2016 2015 Change in benefit obligations: Benefit obligation at the beginning of year $ $ $ $ Service cost — — Interest cost Plan curtailments ) ) — — Actuarial (gain) loss, net ) Employee contributions Net transfers in (out) — — — Plan settlements ) ) — — Benefits paid ) ) ) ) Expenses paid ) ) — — Impact of foreign exchange rates ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Benefit obligation at the end of year $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Change in plan assets: Fair value of plan assets at the beginning of year $ $ $ — $ — Actual return on plan assets ) — — Employer contributions Employee contributions Plan settlements ) ) — — Effect of plan combinations — — — Benefits paid ) ) ) ) Expenses paid ) ) — — Impact of foreign exchange rates ) ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value of plan assets at the end of year $ $ $ — $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Funded (unfunded) status and net amounts recognized: Plan assets (less than) in excess of benefit obligation $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net (liability) asset recognized in the balance sheet $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amounts recognized in the balance sheet consist of: Non-current assets $ $ $ — $ — Current liabilities ) ) ) ) Non-current liabilities ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net liability recognized $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Included in accumulated other comprehensive income for pension benefits at December 31, 2016 are the following amounts that have not yet been recognized in net periodic benefit costs: unrecognized prior service credit of $6 million ($4 million, net of tax) and unrecognized actuarial loss of $190 million ($124 million, net of tax). Expected prior service costs and unrecognized actuarial losses as a component of net periodic benefit costs included in accumulated other comprehensive income in 2016 is $10 million ($7 million, net of tax). Included in accumulated other comprehensive income for postretirement healthcare benefits at December 31, 2016 are the following amounts that have not yet been recognized in net periodic benefit costs: unrecognized prior service credit of $1 million ($1 million, net of tax), and unrecognized actuarial loss of $14 million ($9 million, net of tax). Bunge does not expect to recognize any unrecognized prior service credits or unrecognized actuarial losses as components of net periodic benefit costs for its postretirement benefit plans in 2016. Bunge has aggregated certain defined benefit pension plans with projected benefit obligations in excess of fair value of plan assets with pension plans that have fair value of plan assets in excess of projected benefit obligations. At December 31, 2016, $941 million projected benefit obligations includes plans with projected benefit obligations of $806 million which were in excess of the fair value of related plan assets of $589 million. At December 31, 2015, the $864 million projected benefit obligations include plans with projected benefit obligations of $758 million which were in excess of the fair value of related plan assets of $570 million. The accumulated benefit obligation for the defined pension benefit plans, respectively, was $850 million at December 31, 2016 and $786 million at December 31, 2015. The following table summarizes information relating to aggregated defined benefit pension plans with an accumulated benefit obligation in excess of plan assets: Pension (US$ in millions) 2016 2015 Projected benefit obligation $ $ Accumulated benefit obligation $ $ Fair value of plan assets $ $ At December 31, 2016, for measurement purposes related to postretirement benefit plans, an 8.8% annual rate of increase in the per capita cost of covered healthcare benefits was assumed for 2016, decreasing to 8.0% by 2038, remaining at that level thereafter. At December 31, 2015, for measurement purposes related to postretirement benefit plans, an 8.1% annual rate of increase in the per capita cost of covered healthcare benefits was assumed for 2015, decreasing to 7.4% by 2029, remaining at that level thereafter. A one-percentage point change in assumed healthcare cost trend rates would have the following effects: (US$ in millions) One-percentage One-percentage Effect on total service and interest cost $ $ — Effect on postretirement benefit obligation $ $ ) The components of net periodic benefit costs are as follows for defined benefit pension plans and postretirement benefit plans: Pension Benefits Postretirement (US$ in millions) 2016 2015 2014 2016 2015 2014 Service cost $ $ $ $ — $ — $ — Interest cost Expected return on plan assets ) ) ) — — — Amortization of prior service cost — — — — Amortization of net loss — — ) Curtailment loss — — — — ) Settlement loss recognized — — — — — Special termination benefit — — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net periodic benefit costs $ $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The weighted-average actuarial assumptions used in determining the benefit obligation under the defined benefit pension and postretirement benefit plans are as follows: Pension Postretirement 2016 2015 2016 2015 Discount rate % % % % Increase in future compensation levels % % N/A N/A The weighted-average actuarial assumptions used in determining the net periodic benefit cost under the defined benefit pension and postretirement benefit plans are as follows: Pension Benefits Postretirement 2016 2015 2014 2016 2015 2014 Discount rate % % % % % % Expected long-term rate of return on assets % % % N/A N/A N/A Increase in future compensation levels % % % N/A N/A N/A The sponsoring subsidiaries select the expected long-term rate of return on assets in consultation with their investment advisors and actuaries. These rates are intended to reflect the average rates of earnings expected on the funds invested or to be invested to provide required plan benefits. The plans are assumed to continue in effect as long as assets are expected to be invested. In estimating the expected long-term rate of return on assets, appropriate consideration is given to historical performance for the major asset classes held or anticipated to be held by the applicable plan trusts and to current forecasts of future rates of return for those asset classes. Cash flows and expenses are taken into consideration to the extent that the expected returns would be affected by them. As assets are generally held in qualified trusts, anticipated returns are not reduced for taxes. Pension Benefit Plan Assets —The objectives of the plans' trust funds are to sufficiently diversify plan assets to maintain a reasonable level of risk without imprudently sacrificing returns, with a target asset allocation of approximately 40% fixed income securities and approximately 60% equities. Bunge implements its investment strategy through a combination of indexed mutual funds and a proprietary portfolio of fixed income securities. Bunge's policy is not to invest plan assets in Bunge Limited shares. Plan investments are stated at fair value which is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Plan classifies its investments in Level 1, which refers to securities that are actively traded on a public exchange and valued using quoted prices from active markets for identical assets, Level 2, which refers to securities not traded in an active market but for which observable market inputs are readily available and Level 3, which refers to other assets valued based on significant unobservable inputs. The fair values of Bunge's defined benefit pension plans' assets at the measurement date, by category, are as follows: Fair Value Measurements at December 31, 2016 Pension Benefits (US$ in millions) Total Quoted Prices in Significant Significant Cash $ $ $ — $ — Equities: Mutual Funds (1) — Fixed income securities: Mutual Funds (2) — Others (3) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurements at December 31, 2015 Pension Benefits (US$ in millions) Total Quoted Prices in Significant Significant Cash $ $ $ — $ — Equities: Mutual Funds (1) — Fixed income securities: Mutual Funds (2) — Others (3) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) This category represents a portfolio of equity investments comprised of equity index funds that invest in U.S. equities and non-U.S. equities. The U.S. equities are comprised of investments focusing on large, mid and small cap companies and non-U.S. equities are comprised of international, emerging markets and real estate investment trusts. (2) This category represents a portfolio of fixed income investments in mutual funds comprised of investment grade U.S. government bonds and notes, foreign government bonds and corporate bonds from diverse industries. (3) This category represents a portfolio consisting of a mixture of equity, fixed income and cash. Bunge expects to contribute $13 million and $8 million, respectively, to its defined benefit pension and postretirement benefit plans in 2017. The following benefit payments, which reflect future service as appropriate, are expected to be paid related to defined benefit pension and postretirement benefit plans: (US$ in millions) Pension Postretirement 2017 $ $ 2018 2019 2020 2021 2022 and onwards Employee Defined Contribution Plans —Bunge also makes contributions to qualified defined contribution plans for eligible employees. Contributions to these plans amounted to $11 million, $11 million and $12 million during the years ended December 31, 2016, 2015 and 2014, respectively. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2016 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 19. RELATED PARTY TRANSACTIONS Notes receivable —Bunge holds a note receivable from Navegações Unidas Tapajós S.A., a 50% equity method investment in Brazil, having a carrying value of $20 million at December 31, 2016, which matures in June 2019, with interest based on CDI, the average one-day interbank deposit rate in Brazil. Bunge holds a note receivable from Solazyme Bunge Renewable Oils Cooperatief U.A., a 49.9% equity method investment in Brazil, having a carrying value of $10 million at December 31, 2016, which matures in April 2017, with an interest rate of 11.05%. In addition, Bunge held notes receivables from other related parties totaling $6 million at December 31, 2016, and 2015, respectively. Notes payable —Bunge holds a note payable with its joint venture Bunge SCF Grain LLC with a carrying value of $18 million at December 31, 2016. This note matures on March 31, 2019 with an interest rate based on LIBOR and is included in other long-term liabilities in Bunge's consolidated balance sheet. Other —Bunge purchased soybeans and other commodity products and received port services from certain of its unconsolidated ventures, totaling $1,054 million, $757 million and $746 million for the years ended December 31, 2016, 2015 and 2014, respectively. Bunge also sold soybeans and other commodity products and provided port services to certain of its unconsolidated ventures, totaling $326 million, $351 million and $345 million for the years ended December 31, 2016, 2015 and 2014, respectively. At December 31, 2016 and 2015, Bunge had approximately $33 million and $16 million of receivables from these ventures included in trade accounts receivable in the consolidated balance sheets as of those dates. In addition, at December 31, 2016 and 2015, Bunge had approximately $46 million and $25 million of payables to these ventures included in trade accounts payable in the consolidated balance sheets as of those dates. In addition, Bunge provided services during the years ended December 31, 2016, 2015 and 2014, to its unconsolidated ventures totaling $103 million, $106 million and $111 million, respectively, for services including primarily tolling and administrative support. Bunge believes all of these transaction values are similar to those that would be conducted with third parties. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2016 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 20. COMMITMENTS AND CONTINGENCIES Bunge is party to a large number of claims and lawsuits, primarily non-income tax and labor claims in Brazil and non-income tax claims in Argentina, arising in the normal course of business. The ability to predict the ultimate outcome of such matters involves judgments, estimates and inherent uncertainties. Bunge records liabilities related to its general claims and lawsuits when the exposure item becomes probable and can be reasonably estimated. Bunge management does not expect these matters to have a material adverse effect on Bunge's financial condition, results of operations or liquidity. However, these matters are subject to inherent uncertainties and there exists the remote possibility of an adverse impact on Bunge's position in the period the uncertainties are resolved whereby the settlement of the identified contingencies could exceed the amount of provisions included in the consolidated balance sheets. Included in other non-current liabilities at December 31, 2016 and 2015 are the following amounts related to these matters: (US$ in millions) December 31, December 31, Non-income tax claims $ $ Labor claims Civil and other claims ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-income Tax claims —These tax claims relate principally to claims against Bunge's Brazilian subsidiaries, primarily value added tax claims (ICMS, IPI, PIS/COFINS). The determination of the manner in which various Brazilian federal, state and municipal taxes apply to the operations of Bunge is subject to varying interpretations arising from the complex nature of Brazilian tax law. In addition to the matter discussed below, Bunge monitors other potential claims in Brazil regarding these value-added taxes. In particular, Bunge monitors the Brazilian federal and state governments' responses to recent Brazilian Supreme Court decisions invalidating on constitutional grounds certain ICMS incentives and benefits granted by various states. While Bunge was not a recipient of any of the incentives and benefits that were the subject of these Supreme Court decisions, it has received other similar tax incentives and benefits, which are being challenged before the Supreme Court. Bunge has not received any tax assessment from the states that granted these incentives or benefits related to their validity and, based on the Company's evaluation of this matter as required by U.S. GAAP, no liability has been recorded in the consolidated financial statements. On February 13, 2015, Brazil's Supreme Federal Court ruled in a leading case that certain state ICMS tax credits for staple foods (including soy oil, margarine, mayonnaise and wheat flours) are unconstitutional. Bunge, like other companies in the Brazilian food industry, is involved in several administrative and judicial disputes with Brazilian states regarding these tax credits. While the leading case does not involve Bunge and each case is unique in facts and circumstances and applicable state law, the ruling has general precedent authority on lower court cases. Based on management's review of the ruling (without considering the future success of any potential clarification or modulation of the ruling) and its general application to Bunge's pending cases, management recorded a liability of 468 million Brazilian reais (approximately $144 million and $120 million as of December 31, 2016 and 2015, respectively), plus applicable interest. During the fourth quarter of 2016, Bunge settled a portion of its outstanding liabilities in amnesty programs in certain Brazilian states. As of December 31, 2016, the accrued liability was 418 million Brazilian reais (approximately $128 million), plus applicable interest. As of December 31, 2016, the Brazilian state authorities have concluded examinations of the ICMS tax returns from 1990 to the present and have issued approximately 1,300 assessments totaling approximately 797 million Brazilian reais (approximately $245 million as of December 31, 2016), plus applicable interest and penalties on the outstanding amount. As of December 31, 2015, the claims were approximately 740 million Brazilian reais (approximately $228 million), plus applicable interest and penalties on the outstanding amount. Management intends to continue to vigorously defend against its pending state cases. Management, in consultation with external legal advisors, has established appropriate reserves for potential exposures. As of December 31, 2016 the Brazilian authorities have concluded examinations of the PIS COFINS tax returns and issued assessments relating to years 2004 through the first quarter of 2011. As of December 31, 2016, the cumulative claims for 2004 through 2011 were approximately 510 million Brazilian reais (approximately $156 million), plus applicable interest and penalties on the outstanding amount. As of December 31, 2015, the claims for 2004 through 2010 were approximately 500 million Brazilian reais (approximately $154 million as of December 31, 2016), plus applicable interest and penalties on the outstanding amount. Management, in consultation with external legal advisors, has established appropriate reserves for potential exposures. Since 2010, the Argentine tax authorities have been conducting a review of income and other taxes paid by exporters and processors of cereals and other agricultural commodities in the country. In that regard, the Company has been subject to a number of assessments, proceedings and claims related to its activities. In 2011, Bunge's subsidiary in Argentina paid $112 million of accrued export tax obligations under protest and preserved its rights with respect to such payment. In 2012, the Argentine tax authorities further assessed interest on these payments, which as of December 31, 2016, totaled approximately $234 million. In 2012, the Argentine government suspended Bunge's Argentine subsidiary from a registry of grain traders. While the suspension has not had a material adverse effect on Bunge's business in Argentina, these actions have resulted in additional administrative requirements and increased logistical costs on domestic grain shipments within Argentina. Bunge is challenging these actions in the Argentine courts. Labor claims —The labor claims are principally claims against Bunge's Brazilian subsidiaries. The labor claims primarily relate to dismissals, severance, health and safety, salary adjustments and supplementary retirement benefits. Civil and other claims —The civil and other claims relate to various disputes with third parties, including suppliers and customers. During the first quarter of 2016, Bunge received a notice from the Brazilian Administrative Council for Economic Defense initiating an administrative proceeding against its Brazilian subsidiary and two of its employees, certain of its former employees, several other companies in the Brazilian wheat milling industry and others for alleged anticompetitive activities in the north and northeast of Brazil. Bunge is defending against this action; however, the proceedings are at an early stage and Bunge cannot, at this time, reasonably predict the ultimate outcome of the proceedings or sanctions, if any, which may be imposed. Guarantees —Bunge has issued or was a party to the following guarantees at December 31, 2016: (US$ in millions) Maximum Unconsolidated affiliates guarantee (1)(2) $ Residual value guarantee (3) ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Bunge issued guarantees to certain financial institutions related to debt of certain of its unconsolidated joint ventures. The terms of the guarantees are equal to the terms of the related financings which have maturity dates in 2017 through 2022. There are no recourse provisions or collateral that would enable Bunge to recover any amounts paid under these guarantees. At December 31, 2016, Bunge recorded no obligation related to these guarantees. (2) Bunge issued guarantees to certain third parties related to performance of its unconsolidated joint ventures. There are no recourse provisions or collateral that would enable Bunge to recover any amounts paid under these guarantees. At December 31, 2016, Bunge recorded no obligation related to these guarantees. (3) Bunge issued guarantees to certain financial institutions which are party to certain operating lease arrangements for railcars and barges. These guarantees provide for a minimum residual value to be received by the lessor at conclusion of the lease term. These leases expire at various dates from 2018 through 2021. At December 31, 2016, Bunge's recorded obligation related to these guarantees was $4 million. Bunge Limited has provided a Guaranty 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, its subsidiaries. At December 31, 2016, Bunge's consolidated balance sheet includes debt with a carrying amount of $4,035 million related to these guarantees. This debt includes the senior notes issued by three of Bunge's 100% owned finance subsidiaries, Bunge Limited Finance Corp., Bunge Finance Europe B.V. and Bunge N.A. Finance L.P. There are largely no restrictions on the ability of Bunge Limited Finance Corp., Bunge Finance Europe B.V. and Bunge N.A. Finance L.P. or any other Bunge subsidiary to transfer funds to Bunge Limited. Freight Supply Agreements —In the ordinary course of business, Bunge enters into time charter agreements for the use of ocean freight vessels and freight service on railroad lines for the purpose of transporting agricultural commodities. In addition, Bunge sells the right to use these ocean freight vessels when excess freight capacity is available. These agreements generally range from two months to approximately seven years, in the case of ocean freight vessels, depending on market conditions, and five to nine years in the case of railroad services. Future minimum payment obligations due under these agreements are as follows: (US$ in millions) Ocean Railroad Minimum 2017 $ $ $ 2018 and 2019 2020 and 2021 2022 and thereafter ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Actual amounts paid under these contracts may differ due to the variable components of these agreements and the amount of income earned on the sales of excess capacity. The agreements for the freight service on railroad lines require a minimum monthly payment regardless of the actual level of freight services used by Bunge. The costs of Bunge's freight supply agreements are typically passed through to the customers as a component of the prices charged for its products. Also in the ordinary course of business, Bunge enters into relet agreements related to ocean freight vessels. Such relet agreements are similar to sub-leases. Bunge received approximately $60 million during the year ended December 31, 2016 and expects to receive payments of approximately $10 million in 2017 under such relet agreements. Commitments —At December 31, 2016, Bunge had approximately $16 million of purchase commitments related to its inventories, $109 million of power supply contracts and $72 million of contractual commitments related to construction in progress. |
REDEEMABLE NONCONTROLLING INTER
REDEEMABLE NONCONTROLLING INTERESTS | 12 Months Ended |
Dec. 31, 2016 | |
REDEEMABLE NONCONTROLLING INTERESTS | |
REDEEMABLE NONCONTROLLING INTERESTS | 21. REDEEMABLE NONCONTROLLING INTERESTS In July 2012, Bunge and Nutre Farming B.V. entered into a joint venture agreement whereby Bunge acquired a 55% interest in a newly formed oilseed processing venture in its agribusiness segment in Eastern Europe. Bunge consolidates the venture in its consolidated financial statements. In conjunction with the formation of the venture, Bunge entered into an agreement to acquire the remaining 45% interest at either Bunge's or the noncontrolling interest holder's option in the future. The exercise date and price of the option were reasonably determinable. As a result, Bunge had classified the noncontrolling interest as redeemable noncontrolling interest in its consolidated balance sheet as of December 31, 2012. During the second quarter of 2016, Bunge exercised its call option for the remaining 45% interest in the joint venture for approximately $39 million. The transaction has concluded in September 2016. |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2016 | |
EQUITY | |
EQUITY | 22. 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 did not repurchase any common shares during the fourth quarter ended December 31, 2016. Bunge repurchased 3,296,230 common shares for the nine months ended September 30, 2016 under this program for $200 million. Total repurchases under the program from its inception in May 2015 through December 31, 2016 were 4,707,440 shares for $300 million. Bunge completed the previous program of $975 million during the first quarter of 2015 with the repurchase of 2,460,600 common shares for $200 million. Cumulative Convertible Perpetual Preference Shares —Bunge has 6,900,000, 4.875% cumulative convertible perpetual preference shares (convertible preference shares), par value $0.01 outstanding at December 31, 2016. Each convertible preference share has an initial liquidation preference of $100 per share plus accumulated unpaid dividends up to a maximum of an additional $25 per share. 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 preference share is convertible at any time at the holder's option into approximately 1.1507 common shares based on a conversion price of $86.9010 per convertible preference share, subject in each case to certain specified anti-dilution adjustments (which represents 7,939,830 Bunge Limited common shares at December 31, 2016). At any time on or after December 1, 2011, if the closing market price of Bunge's common shares equals or exceeds 130% of the conversion price of the convertible preference shares, for 20 trading days within any period of 30 consecutive trading days (including the last trading day of such period), Bunge may elect to cause all outstanding convertible preference shares to be automatically converted into the number of common shares that are issuable at the conversion price. The convertible preference shares are not redeemable by Bunge at any time. The convertible preference shares accrue dividends at an annual rate of 4.875%. Dividends are cumulative from the date of issuance and are payable, quarterly in arrears, on each March 1, June 1, September 1 and December 1, commencing on March 1, 2007, when, as and if declared by Bunge's Board of Directors. The dividends may be paid in cash, common shares or a combination thereof. Accumulated but unpaid dividends on the convertible preference shares will not bear interest. In each of the years ended December 31, 2016, 2015 and 2014, Bunge recorded $34 million of dividends on its convertible preference shares. Accumulated Other Comprehensive Income (Loss) Attributable to Bunge —The following table summarizes the balances of related after-tax components of accumulated other comprehensive income (loss) attributable to Bunge: (US$ in millions) Foreign (1) Deferred Pension and Unrealized Accumulated Balance January 1, 2014 $ ) $ ) ) ) Other comprehensive income (loss) before reclassifications ) ) ) ) Amount reclassified from accumulated other comprehensive income — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net-current period other comprehensive income (loss) ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance, December 31, 2014 ) $ ) ) ) Other comprehensive income (loss) before reclassifications ) — ) Amount reclassified from accumulated other comprehensive income (loss) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net-current period other comprehensive income (loss) ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance, December 31, 2015 ) $ ) ) Other comprehensive income (loss) before reclassifications ) ) — Amount reclassified from accumulated other comprehensive income (loss) — ) — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net-current period other comprehensive income (loss) ) ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance, December 31, 2016 $ ) $ ) $ ) $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Bunge has significant operating subsidiaries in Brazil, Argentina, North America, Europe and Asia-Pacific. The functional currency of Bunge's subsidiaries is the local currency. The assets and liabilities of these subsidiaries are translated into U.S. dollars from local currency at month-end exchange rates, and the resulting foreign exchange translation gains (losses) are recorded in the consolidated balance sheets as a component of accumulated other comprehensive income (loss). |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 12 Months Ended |
Dec. 31, 2016 | |
EARNINGS PER COMMON SHARE | |
EARNINGS PER COMMON SHARE | 23. EARNINGS PER COMMON SHARE Basic earnings per share is computed by dividing net income available to Bunge common shareholders by the weighted-average number of common shares outstanding, excluding any dilutive effects of stock options, restricted stock unit awards, convertible preference shares and convertible notes during the reporting period. Diluted earnings per share is computed similar to basic earnings per share, except that the weighted-average number of common shares outstanding is increased to include additional shares from the assumed exercise of stock options, restricted stock unit awards and convertible securities and notes, if dilutive. The number of additional shares is calculated by assuming that outstanding stock options, except those which are not dilutive, were exercised and that the proceeds from such exercises were used to acquire common shares at the average market price during the reporting period. In addition, Bunge accounts for the effects of convertible securities and convertible notes, using the if-converted method. Under this method, the convertible securities and convertible notes are assumed to be converted and the related dividend or interest expense, net of tax, is added back to earnings, if dilutive. The following table sets forth the computation of basic and diluted earnings per common share: Year Ended December 31, (US$ in millions, except for share data) 2016 2015 2014 Income from continuing operations $ $ $ Net (income) loss attributable to noncontrolling interests ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) from continuing operations attributable to Bunge ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other redeemable obligations (1) ) ) ) Convertible preference share dividends ) ) ) Income (loss) from discontinued operations, net of tax ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) available to Bunge common shareholders $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average number of common shares outstanding: Basic Effect of dilutive shares: —stock options and awards (2) —convertible preference shares (3) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic earnings per common share: Net income (loss) from continuing operations $ $ $ Net income (loss) from discontinued operations ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) to Bunge common shareholders—basic $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted earnings per common share: Net income (loss) from continuing operations $ $ $ Net income (loss) from discontinued operations ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) to Bunge common shareholders—diluted $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Accretion of redeemable noncontrolling interest of $2 million, $19 million and $14 million for the years ended December 31, 2016, 2015 and 2014, respectively, relates to a non-fair value variable put arrangement whereby the noncontrolling interest holder may have required Bunge to purchase the remaining shares of an oilseed processing operation in Central and Eastern Europe. As further discussed in Note 21 Redeemable Noncontrolling Interest, during the second quarter of 2016 Bunge exercised its call option with Prio for their 45% interest in the joint venture for approximately $39 million. The transaction concluded in September 2016. Accretion for the respective periods includes the effect of losses incurred by the operations for the years ended December 31, 2016, 2015 and 2014, respectively. (2) The weighted-average common shares outstanding-diluted excludes approximately 4 million, 3 million and 2 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 years ended December 31, 2016, 2015 and 2014, respectively. (3) Weighted-average common share outstanding-diluted for the year ended December 31, 2014 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 outstanding. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2016 | |
SHARE-BASED COMPENSATION | |
SHARE-BASED COMPENSATION | 24. SHARE-BASED COMPENSATION For the years ended December 31, 2016, 2015 and 2014, Bunge recognized in additional paid-in capital approximately $44 million, $46 million and $49 million, respectively, of total compensation expense for awards classified as equity awards related to its stock option and restricted stock unit awards in additional paid-in capital. In 2016, Bunge granted equity awards under the 2016 Equity Incentive Plan (the "2016 EIP") and 2009 Equity Incentive Plan (the "2009 EIP"), both shareholder approved plans. Under the 2016 EIP and 2009 EIP, the Compensation Committee of Bunge's Board of Directors may grant equity based awards to officers, employees, consultants and independent contractors in the form of stock options, restricted stock units (performance based or time-vested) or other equity based awards. The 2016 EIP replaced the 2009 EIP, under which, beginning May 26, 2016, no further awards may be granted. Shares issued under the Plan may consist, in whole or in part, of authorized and unissued Shares, treasury Shares or Shares reacquired by the Company in any manner, or a combination thereof. (i) Stock Option Awards—Options to purchase Bunge Limited common shares are granted with an exercise price equal to the grant date fair market value of Bunge common stock, vest over service periods that generally range from one to three years, and expire 10 years from the date of grant. Vesting may be accelerated in certain circumstances as provided in the plans or associated Award Agreements. Grant date fair value is recognized as compensation expense on a straight-line basis for option grants beginning in 2006 and for options granted prior to 2006, compensation expense is recognized on an accelerated basis over the vesting period of each grant. (ii) Restricted Stock Units—Restricted stock units ("RSUs") give recipients the right to receive shares of Bunge common stock upon the lapse of related restrictions determined by the Compensation Committee. Restrictions on RSUs may be based on continued service by the recipient through the designated term and/or based on the achievement of certain performance targets. These targets may be financial or market-based, and the number of units actually earned varies based on the level of achievement of predefined goals. Compensation expense in recognized on a straight-line bases over the vesting period for restricted stock units. RSUs vest in various increments and at various dates, generally over periods ranging from one to three years. Vesting may be accelerated under certain circumstances as defined in the plans or associated Award Agreements. RSUs are generally settled in shares of Bunge common stock upon satisfaction of the applicable vesting terms. Where share settlement may be prohibited under local law, RSUs are settled in cash. At the time of settlement, a participant holding a vested restricted stock unit will also be entitled to receive corresponding accrued dividend equivalent share payments. Bunge has also established the Bunge Limited 2007 Non-Employee Directors' Equity Incentive Plan (the "2007 Directors' Plan"), a shareholder approved plan. Under the 2007 Directors' Plan, the Compensation Committee may grant equity based awards to non-employee directors of Bunge Limited. Awards may consist of restricted stock, restricted stock units, deferred restricted stock units and non-statutory stock options. The 2007 Directors' Plan replaced the Non-Employee Directors Equity Incentive Plan, under which no further awards may be granted. (i) Stock Option Awards—Options to purchase Bunge Limited common shares were historically granted with an exercise price equal to the grant date fair market value of Bunge Limited common stock. Options were set to expire ten years after the date of grant and generally vested and became exercisable on the third anniversary of the grant date. Bunge no longer makes grants of options under the 2007 Directors' Plan and there are no longer any options outstanding under the plan. (ii) Restricted Stock Units—Restricted stock units granted to non-employee directors generally vest on the first anniversary of the grant date, provided the director continues to serve on the Board until such date, and are settled in Bunge Limited common stock. RSUs granted as part of our Chairman's supplemental annual retainer have historically vested on December 31 of the year of grant. At the time of settlement, a participant holding a vested restricted stock unit or deferred restricted stock unit is also entitled to receive corresponding accrued dividend equivalent share payments. The fair value of each stock option granted under any of Bunge's equity incentive plans is estimated on the grant date using the Black Scholes Merton option pricing model. Assumptions for the prior three years are noted in the following table. The expected volatility of Bunge's common shares is a weighted average of historical volatility calculated using the daily closing price of Bunge's shares up to the grant date and implied volatilities on open option contracts on Bunge's stock as of the grant date. Bunge uses historical employee exercise behavior for valuation purposes. The expected option term of granted options represents the period of time that the granted options are expected to be outstanding based on historical experience and giving consideration for the contractual terms, vesting periods and expectations of future employee behavior. The risk-free interest rate is based on U.S. Treasury zero-coupon bonds with a term equal to the expected option term of the respective grants and grant dates. December 31, Assumptions: 2016 2015 2014 Expected option term (in years) Expected dividend yield % % % Expected volatility % % % Risk-free interest rate % % % A summary of option activity under the plans for the year ended December 31, 2016 is presented below: Options Shares Weighted-Average Weighted-Average Aggregate Outstanding at January 1, 2016 $ Granted $ Exercised ) $ Forfeited or expired ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding at December 31, 2016 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable at December 31, 2016 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The weighted-average grant date fair value of options granted during the years ended December 31, 2016, 2015 and 2014 was $8.86, $19.36 and $28.25, respectively. The total intrinsic value of options exercised during the years ended December 31, 2016, 2015 and 2014 was approximately $1 million, $11 million and $34 million, respectively. The excess tax benefit classified as a financing cash flow was not significant for any of the periods presented. At December 31, 2016, $17 million of total unrecognized compensation cost related to non-vested stock options granted under the equity incentive plan is expected to be recognized over the next two years. A summary of activity under Bunge's restricted stock unit plans for the year ended December 31, 2016 is presented below. Restricted Stock Units Shares Weighted-Average Restricted stock units at January 1, 2016 $ Granted Vested/issued (2) ) Forfeited/cancelled (2) ) ​ ​ ​ ​ ​ ​ ​ ​ Restricted stock units at December 31, 2016 (1) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Includes accrued unvested dividends, which are payable in Bunge's common shares upon vesting of underlying restricted stock units. (2) During the year ended December 31, 2016, Bunge issued 235,204 common shares, net of common shares withheld to cover taxes, including related common shares representing accrued dividends, with a weighted-average fair value of $57.91 per share. During the year ended December 31, 2016, 82,520 performance-based restricted stock units vested. During the year ended December 31, 2016, Bunge canceled approximately 135,948 shares related to performance-based restricted stock unit awards that did not vest due to non-achievement of performance targets and performance-based restricted stock unit awards that were withheld to cover payment of employee related taxes. The fair value of RSU and performance-based awards is determined based on the market value of the Company's shares on the grant date. The weighted-average grant date fair value of restricted stock units granted during the years ended December 31, 2016, 2015 and 2014 was $51.42, $81.97 and $79.26, respectively. At December 31, 2016, there was approximately $42 million of total unrecognized compensation cost related to restricted stock units share-based compensation arrangements under the equity incentive plans, which is expected to be recognized over the next two years. The total fair value of restricted stock units vested during the year ended December 31, 2016 was approximately $18 million. Common Shares Reserved for Share-Based Awards —The 2007 Directors' Plan, the 2009 EIP and the 2016 EIP provide that 600,000, 10,000,000 and 5,800,000 common shares, respectively, are to be reserved for grants of stock options, restricted stock units and other awards under the plans. At December 31, 2016, 113,732 and 5,766,487 common shares were available for future grants under the 2007 Directors' Plan and the 2016 EIP, respectively. Upon approval of the 2016 EIP, no shares were available for future grant under the 2009 EIP. |
LEASE COMMITMENTS
LEASE COMMITMENTS | 12 Months Ended |
Dec. 31, 2016 | |
LEASE COMMITMENTS | |
LEASE COMMITMENTS | 25. LEASE COMMITMENTS Bunge routinely leases storage facilities, transportation equipment and office facilities under operating leases. Future minimum lease payments by year and in the aggregate under non-cancelable operating leases with initial or remaining terms of one year or more at December 31, 2016 are as follows: (US$ in millions) Minimum 2017 $ 2018 2019 2020 2021 Thereafter ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net rent expense under non-cancelable operating leases is as follows: Year Ended (US$ in millions) 2016 2015 2014 Rent expense $ $ $ Sublease income ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net rent expense $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ In addition, Bunge enters into agricultural partnership agreements for the production of sugarcane. These agreements have an average remaining life of four years and cover approximately 211,017 hectares of land under cultivation. Amounts owed under these agreements are dependent on several variables including the quantity of sugarcane produced per hectare, the total recoverable sugar ("ATR") per ton of sugarcane produced and the price for each kilogram of ATR as determined by Consecana, the São Paulo state sugarcane, sugar and ethanol council. During the years ended December 31, 2016, 2015 and 2014, Bunge made payments related to these agreements of $154 million, $125 million and $162 million, respectively. Of these amounts $89 million, $75 million and $95 million, respectively, were payments for advances on future production and $65 million, $50 million and $67 million, respectively, were included in cost of goods sold in the consolidated statements of income for the years ended December 31, 2016, 2015 and 2014, respectively. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2016 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | 26. SEGMENT INFORMATION Bunge has five reportable segments—Agribusiness, Edible Oil Products, Milling Products, Sugar and Bioenergy, and Fertilizer—which are organized based upon similar economic characteristics and are similar in nature of products and services offered, the nature of production processes and the type and class of customer and distribution methods. 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. The Sugar and Bioenergy segment involves sugarcane growing and milling in Brazil, sugar merchandising in various countries, as well as sugarcane-based ethanol production and corn-based ethanol investments and related activities. Following the classification of the Brazilian fertilizer distribution and North American fertilizer businesses as discontinued operations, the activities of the Fertilizer segment include its port operations in Brazil and Argentina and its blending and retail operations in Argentina. The "Discontinued Operations & Unallocated" column in the following table contains the reconciliation between the totals for reportable segments and Bunge consolidated totals, which consist primarily of amounts attributable to discontinued operations, corporate items not allocated to the operating segments and inter-segment eliminations. 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." (US$ in millions) Agribusiness Edible Oil Milling Sugar and Fertilizer Discontinued (1) Total 2016 Net sales to external customers $ $ $ $ $ $ — $ Inter—segment revenues — ) — Foreign exchange gains (losses) ) ) ) ) — ) Noncontrolling interests (1) ) ) — — ) ) Other income (expense)—net ) ) — Segment EBIT (3) ) — Discontinued operations (2) — — — — — ) ) Depreciation, depletion and amortization ) ) ) ) ) — ) Investments in affiliates — — — — Total assets Capital expenditures 2015 Net sales to external customers $ $ $ $ $ $ — $ Inter—segment revenues — ) — Foreign exchange gains (losses) — ) ) — ) Noncontrolling interests (1) ) ) — — ) Other income (expense)—net ) ) ) ) — ) Segment EBIT (4) ) — Discontinued operations (2) — — — — — Depreciation, depletion and amortization ) ) ) ) ) — ) Investments in affiliates — — — — Total assets Capital expenditures 2014 Net sales to external customers $ $ $ $ $ $ — $ Inter—segment revenues — — ) — Foreign exchange gains (losses) ) ) — Noncontrolling interests (1) ) ) — ) ) ) Other income (expense)—net ) ) — Segment EBIT ) — Discontinued operations (2) — — — — — Depreciation, depletion and amortization ) ) ) ) ) — ) Investments in affiliates — — — — Total assets Capital expenditures (1) Includes the noncontrolling interests' share of interest and tax to reconcile to consolidated noncontrolling interests. (2) Represents net income (loss) from discontinued operations. (3) 2016 EBIT includes $122 million of gains related to disposition of equity interest in operations in Agribusiness, recorded in other income (expense)-net. In addition, Bunge recorded pre-tax impairment charges of $71 million and $9 million in other income (expense)-net and cost of goods sold, respectively. Of these pre-tax impairment charges, $44 million was allocated to Sugar and Bioenergy, $27 million to Agribusiness and $9 million to Fertilizer. (4) 2015 EBIT includes a $47 million gain on the sale of assets in Agribusiness. In addition, Bunge recorded pre-tax impairment charges of $57 million, of which $15 million, $14 million and $13 million are included in cost of goods sold, selling, general and administrative expenses and goodwill impairment, respectively. Of these pre-tax impairment charges, $14 million was allocated to Agribusiness and $28 million to Edible Oil Products. Total segment earnings before interest and taxes ("EBIT") is an operating performance measure used by Bunge's management to evaluate segment operating activities. Bunge's management believes total segment EBIT is a useful measure of operating profitability, since the measure allows for an evaluation of the performance of its segments without regard to its financing methods or capital structure. In addition, EBIT is a financial measure that is widely used by analysts and investors in Bunge's industries. A reconciliation of total segment EBIT to net income attributable to Bunge follows: Year Ended December 31, (US$ in millions) 2016 2015 2014 Total segment EBIT from continuing operations $ $ $ Interest income Interest expense ) ) ) Income tax (expense) benefit ) ) ) Income (loss) from discontinued operations, net of tax ) Noncontrolling interests' share of interest and tax ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income attributable to Bunge $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net sales by product group to external customers were as follows: Year Ended December 31, (US$ in millions) 2016 2015 2014 Agricultural Commodity Products $ $ $ Edible Oil Products Wheat Milling Products Corn Milling Products Sugar and Bioenergy Products Fertilizer Products ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Geographic area information for net sales to external customers, determined based on the location of the subsidiary making the sale, and long-lived assets follows: Year Ended December 31, (US$ in millions) 2016 2015 2014 Net sales to external customers: Europe $ $ $ United States Asia-Pacific Brazil Argentina Canada Rest of world ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, (US$ in millions) 2016 2015 2014 Long-lived assets (1) : Brazil $ $ $ United States Europe Asia-Pacific Canada Argentina Rest of world ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Long-lived assets include property, plant and equipment, net, goodwill and other intangible assets, net, investments in affiliates and non-current assets held for sale. |
QUARTERLY FINANCIAL INFORMATION
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended |
Dec. 31, 2016 | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 27. QUARTERLY FINANCIAL INFORMATION (UNAUDITED) Quarter (US$ in millions, except per share data) First Second Third Fourth Year End 2016 Net sales $ $ $ $ $ Gross profit Income (loss) from discontinued operations, net of tax ) ) ) ) Net income (loss) Net income (loss) attributable to Bunge Earnings per common share—basic (1) Net income (loss) $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) from continuing operations $ $ $ $ $ Net income (loss) from discontinued operations ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) to Bunge common shareholders $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings per common share—diluted (1) Net income (loss) $ $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) from continuing operations $ $ $ $ $ Net income (loss) from discontinued operations ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) to Bunge common shareholders $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average number of shares: Weighted-average number of shares outstanding—basic Weighted-average number of shares outstanding—diluted Market price: High $ $ $ $ Low $ $ $ $ 2015 Net sales $ $ $ $ $ Gross profit Income (loss) from discontinued operations, net of tax ) Net income (loss) Net income (loss) attributable to Bunge Earnings per common share—basic (1) Net income (loss) $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) from continuing operations $ $ $ $ $ Net income (loss) from discontinued operations ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) to Bunge common shareholders $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings per common share—diluted (1) Net income (loss) $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) from continuing operations $ $ $ $ $ Net income (loss) from discontinued operations — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) to Bunge common shareholders $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average number of shares: Weighted-average number of shares outstanding—basic Weighted-average number of shares outstanding—diluted Market price: High $ $ $ $ Low $ $ $ $ (1) Earnings per share to Bunge common shareholders for both basic and diluted is computed independently for each period presented. As a result, the sum of the quarterly earnings per share for the years ended December 31, 2016 and 2015 does not equal the total computed for the year. |
SCHEDULE II-VALUATION AND QUALI
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2016 | |
Schedule II-Valuation and Qualifying Accounts | |
Schedule II-Valuation and Qualifying Accounts | Schedule II—Valuation and Qualifying Accounts Description Balance at Charged to Charged to (b) Deductions Balance at FOR THE YEAR ENDED Allowances for doubtful accounts (a) $ ) (c) $ Allowances for secured advances to suppliers $ ) ) $ Allowances for recoverable taxes $ ) ) $ Income tax valuation allowances $ (d) — $ FOR THE YEAR ENDED Allowances for doubtful accounts (a) $ ) (c) $ Allowances for secured advances to suppliers $ ) ) $ Allowances for recoverable taxes $ ) ) $ Income tax valuation allowances $ (d) — $ FOR THE YEAR ENDED Allowances for doubtful accounts (a) $ (c) $ Allowances for secured advances to suppliers $ ) $ Allowances for recoverable taxes $ ) $ Income tax valuation allowances $ ) (d) — $ (a) This includes an allowance for doubtful accounts for current and non-current trade accounts receivables. (b) This consists primarily of foreign exchange translation adjustments. (c) Such amounts include write-offs of uncollectible accounts and recoveries. (d) Includes primarily cumulative translation adjustments. |
NATURE OF BUSINESS, BASIS OF 37
NATURE OF BUSINESS, BASIS OF PRESENTATION, AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
NATURE OF BUSINESS, BASIS OF PRESENTATION, AND SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation —The consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") Principles of Consolidation —The accompanying consolidated financial statements include the accounts of Bunge, its subsidiaries and 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 exercises control. Equity investments in which Bunge has the ability to exercise significant influence but does not control are accounted for by the equity method of accounting. Investments in which Bunge does not exercise significant influence are accounted for by the cost method of accounting. Intercompany accounts and transactions are eliminated. Bunge consolidates VIEs in which it is considered to be the primary beneficiary and reconsiders such conclusion at each reporting period. An enterprise is determined to be the primary beneficiary if it has a controlling financial interest under U.S. GAAP, defined as (a) the power to direct the activities of a VIE that most significantly impact the VIE's business and (b) the obligation to absorb losses of or the right to receive benefits from the VIE that could potentially be significant to the VIE's operations. Performance of that analysis requires the exercise of judgment. Noncontrolling interests in subsidiaries related to Bunge's ownership interests of less than 100% are reported as noncontrolling interests in the consolidated balance sheets. The noncontrolling ownership interests in Bunge's earnings, net of tax, is reported as net (income) loss attributable to noncontrolling interests in the consolidated statements of income. |
Discontinued Operations | Discontinued Operations —In determining whether a disposal group should be presented as discontinued operations, Bunge makes a determination of whether such a group being disposed of comprises a component of the entity, or a group of components of the entity, that represents a strategic shift that has, or will have, a major effect on the reporting entity's operations and financial results. If these determinations are made affirmatively, the results of operations of the group being disposed of (as well as any gain or loss on the disposal transaction) are aggregated for separate presentation apart from the continuing operations of the Company for all periods presented in the consolidated financial statements. |
Reclassifications | Reclassifications —Certain prior year amounts have been reclassified to conform to current year presentation. |
Use of Estimates | Use of Estimates —The preparation of consolidated financial statements in conformity with U.S. GAAP requires the application of accounting policies that often require management to make substantial judgment or estimation in their application. These judgments and estimations may significantly affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. They may also affect reported amounts of revenues and expenses. Actual results could differ from those estimates. |
Translation of Foreign Currency Financial Statements and Foreign Currency Transactions | Translation of Foreign Currency Financial Statements —Bunge's reporting currency is the U.S. dollar. The functional currency of the majority of Bunge's foreign subsidiaries is their local currency and, as such, amounts included in the consolidated statements of income, comprehensive income (loss), cash flows and changes in equity are translated using average exchange rates during each period. Assets and liabilities are translated at period-end exchange rates and resulting foreign exchange translation adjustments are recorded in the consolidated balance sheets as a component of accumulated other comprehensive income (loss). Foreign Currency Transactions —Monetary assets and liabilities denominated in currencies other than the functional currency are remeasured into their respective functional currencies at exchange rates in effect at the balance sheet date. The resulting exchange gain or loss is included in Bunge's consolidated statements of income as foreign exchange gain (loss) unless the remeasurement gain or loss relates to an intercompany transaction that is of a long-term investment nature and for which settlement is not planned or anticipated in the foreseeable future. Gains or losses arising from translation of such transactions are reported as a component of accumulated other comprehensive income (loss) in Bunge's consolidated balance sheets. |
Cash and Cash Equivalents | Cash and Cash Equivalents —Cash and cash equivalents include time deposits and readily marketable securities with original maturity dates of three months or less at the time of acquisition. |
Trade Accounts Receivable and Secured Advances to Suppliers | Trade Accounts Receivable and Secured Advances to Suppliers —Trade accounts receivable and secured advances to suppliers are stated at their historical carrying amounts net of write-offs and allowances for uncollectible accounts. Bunge establishes an allowance for uncollectible trade accounts receivable and secured advances to farmers based on historical experience, farming economics and other market conditions as well as specific customer collection issues. Uncollectible accounts are written off when a settlement is reached for an amount below the outstanding historical balance or when Bunge has determined that collection is unlikely. Secured advances to suppliers bear interest at contractual rates which reflect current market interest rates at the time of the transaction. There are no deferred fees or costs associated with these receivables. As a result, there are no imputed interest amounts to be amortized under the interest method. Interest income is calculated based on the terms of the individual agreements and is recognized on an accrual basis. Bunge follows accounting guidance on the disclosure of the credit quality of financing receivables and the allowance for credit losses, which requires information to be disclosed at disaggregated levels, defined as portfolio segments and classes. Under this guidance, a class of receivables is considered impaired, based on current information and events, if Bunge determines it probable that all amounts due under the original terms of the receivable will not be collected. Recognition of interest income is suspended once the farmer defaults on the originally scheduled delivery of agricultural commodities as the collection of future income is determined not to be probable. No additional interest income is accrued from the point of default until ultimate recovery, at which time amounts collected are credited first against the receivable and then to any unrecognized interest income. |
Inventories | Inventories —Readily marketable inventories ("RMI") are 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. All of Bunge's RMI are valued at fair value. These agricultural commodity inventories have quoted market prices in active markets, may be sold without significant further processing and have predictable and insignificant disposal costs. Changes in the fair values of merchandisable agricultural commodities inventories are recognized in earnings as a component of cost of goods sold. Inventories other than RMI are stated at the lower of cost or market by inventory product class. Cost is determined using primarily the weighted-average cost method. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities —Bunge enters into derivative instruments to manage its exposure to movements associated with agricultural commodity prices, transportation costs, foreign currency exchange rates, interest rates and energy costs. Bunge's use of these instruments is generally intended to mitigate the exposure to market variables (see Note 14). Generally, derivative instruments are recorded at fair value in other current assets or other current liabilities in Bunge's consolidated balance sheets. Bunge assesses, both at the inception of a hedge and on an ongoing basis, whether any derivatives designated as hedges are highly effective in offsetting changes in the hedged items. The effective and ineffective portions of changes in fair values of derivative instruments designated as fair value hedges, along with the gains or losses on the related hedged items are recorded in earnings in the consolidated statements of income in the same caption as the hedged items. The effective portion of changes in fair values of derivative instruments that are designated as cash flow hedges are recorded in accumulated other comprehensive income (loss) and are reclassified to earnings when the hedged cash flows affect earnings or when the hedge is no longer considered to be effective. The ineffective portion of cash flow hedges is recorded in earnings. In addition, Bunge may designate certain derivative instruments as net investment hedges to hedge the exposure associated with its equity investments in foreign operations. The effective portions of changes in the fair values of net investment hedges, which are evaluated based on forward rates, are recorded as a component of accumulated other comprehensive income (loss) in the consolidated balance sheets and the ineffective portions of such derivative instruments are recorded in foreign exchange gains (losses) in the consolidated statements of income. |
Marketable Securities and Other Short-Term Investments | Marketable Securities and Other Short-Term Investments —Bunge classifies its marketable securities and short-term investments as held-to-maturity and trading. Available-for sale securities are reported at fair value with unrealized gains (losses) included in accumulated other comprehensive income (loss). Held-to-maturity securities and investments represent financial assets in which Bunge has the intent and ability to hold to maturity. Trading securities are bought and held principally for the purpose of selling them in the near term and therefore held for only a short period of time. Bunge values its marketable securities at fair value and monitors its held-to-maturity investments for impairment periodically, and recognizes an impairment charge when the decline in fair value of an investment is judged to be other than temporary. |
Recoverable Taxes | Recoverable Taxes —Recoverable taxes include value-added taxes paid upon the acquisition of raw materials and taxable services and other transactional taxes, which can be recovered in cash or as compensation against income taxes or other taxes owed by Bunge, primarily in Brazil and Europe. These recoverable tax payments are included in other current assets or other non-current assets based on their expected realization. In cases where Bunge determines that recovery is doubtful, recoverable taxes are reduced by allowances for the estimated unrecoverable amounts. |
Property, Plant and Equipment, Net | Property, Plant and Equipment, Net —Property, plant and equipment, net is stated at cost less accumulated depreciation and depletion. Major improvements that extend the life, capacity or efficiency or improve the safety of an asset are capitalized, while maintenance and repairs are expensed as incurred. Costs related to legal obligations associated with the future retirement of capitalized assets are capitalized as part of the cost of the related asset. Bunge generally capitalizes eligible costs to acquire or develop internal-use software that are incurred during the application development stage. Interest costs on borrowings during construction/completion periods of major capital projects are also capitalized. Included in property, plant and equipment are biological assets, primarily sugarcane, that are stated at cost less accumulated depletion. Depletion is calculated using the estimated units of production based on the remaining useful life of the growing sugarcane. Depreciation is computed based on the straight-line method over the estimated useful lives of the assets. Useful lives for property, plant and equipment are as follows: Years Biological assets 5 - 7 Buildings 10 - 50 Machinery and equipment 7 - 25 Furniture, fixtures and other 3 - 20 Computer software 3 - 10 |
Goodwill | Goodwill —Goodwill represents the cost in excess of the fair value of net assets acquired in a business acquisition. Goodwill is not amortized but is tested annually for impairment or between annual tests if events or circumstances indicate potential impairment. Bunge's annual impairment testing is generally performed during the fourth quarter of its fiscal year. Goodwill is tested for impairment at the reporting unit level, which has been determined to be the Company's operating segments or one level below the operating segments in certain instances (see Note 7). |
Impairment of Property, Plant and Equipment and Finite Lived Intangible Assets | Impairment of Property, Plant and Equipment and Finite Lived Intangible Assets —Finite lived intangible assets include primarily trademarks, customer lists and port facility usage rights and are amortized on a straight-line basis over their contractual or legal lives (see Note 8) or their estimated useful lives where such lives are not determined by law or contract. Bunge reviews its property, plant and equipment and finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. Bunge bases its evaluation of recoverability on such indicators as the nature, future economic benefits and geographic locations of the assets, historical or future profitability measures and other external market conditions. If these indicators result in the expected non-recoverability of the carrying amount of an asset or asset group, Bunge evaluates potential impairment using undiscounted estimated future cash flows. If such undiscounted future cash flows during the asset's remaining useful life are below its carrying value, a loss is recognized for the shortfall, measured by the present value of the estimated future cash flows or by third-party appraisals. Bunge records impairments related to property, plant and equipment and finite-lived intangible assets used in the processing of its products in cost of goods sold in its consolidated statements of income. Any impairment of marketing or brand assets is recognized in selling, general and administrative expenses in the consolidated statements of income (see Note 9). Property, plant and equipment and other finite-lived intangible assets to be sold or otherwise disposed of are reported at the lower of carrying amount or fair value less cost to sell. |
Impairment of Investments in Affiliates | Impairment of Investments in Affiliates —Bunge reviews its investments annually or when an event or circumstances indicate that a potential decline in value may be other than temporary. Bunge considers various factors in determining whether to recognize an impairment charge, including the length of time that the fair value of the investment is expected to be below its carrying value, the financial condition, operating performance and near-term prospects of the affiliate and Bunge's intent and ability to hold the investment for a period of time sufficient to allow for recovery of the fair value. Impairment charges for investments in affiliates are included within selling, general and administrative expenses (see Note 9 and 10). |
Share-Based Compensation | Share-Based Compensation —Bunge maintains equity incentive plans for its employees and non-employee directors (see Note 24). Bunge accounts for share-based compensation based on the grant date fair value. Share-based compensation expense is recognized on a straight-line basis over the requisite service period. |
Income Taxes | Income Taxes —Income tax expenses and benefits are recognized based on the tax laws and regulations in the jurisdictions in which Bunge's subsidiaries operate. Under Bermuda law, Bunge is not required to pay taxes in Bermuda on either income or capital gains. The provision for income taxes includes income taxes currently payable and deferred income taxes arising as a result of temporary differences between the carrying amounts of existing assets and liabilities in Bunge's financial statements and their respective tax bases. Deferred tax assets are reduced by valuation allowances if current evidence does not suggest that the deferred tax asset will be realized. Accrued interest and penalties related to unrecognized tax benefits are recognized in income tax (expense) benefit in the consolidated statements of income (see Note 13). The calculation of tax liabilities involves management's judgments concerning uncertainties in the application of complex tax regulations in the many jurisdictions in which Bunge operates. Investment tax credits are recorded in income tax expense in the period in which such credits are granted. |
Revenue Recognition | Revenue Recognition —Sales of agricultural commodities, fertilizers and other products are recognized when persuasive evidence of an arrangement exists, the price is determinable, the product has been delivered, title to the product and risk of loss transfer to the customer, which is dependent on the agreed upon sales terms with the customer and when collection of the sale price is reasonably assured. Sales terms provide for passage of title either at the time and point of shipment or at the time and point of delivery of the product being sold. Net sales consist of gross sales less discounts related to promotional programs and sales taxes. Interest income on secured advances to suppliers is included in net sales due to its operational nature (see Note 5). Shipping and handling charges billed to customers are included in net sales and related costs are included in cost of goods sold. |
Research and Development | Research and Development —Research and development costs are expensed as incurred. Research and development expenses were $17 million, $16 million and $20 million for the years ended December 31, 2016, 2015 and 2014, respectively. |
New Accounting Pronouncements | New Accounting Pronouncements —In November 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-18, Statement of Cash Flows (Topic 230), Restricted Cash (a consensus of the Emerging Issues Task Force) . Similar to ASU 2016-15 as described below, this update attempts to reduce diversity in practice and provides guidance on the presentation of restricted cash or restricted cash equivalents in the statement of cash flows. The guidance will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. Bunge is evaluating the impact of this guidance on its consolidated financial statements. In October 2016, the FASB issued ASU 2016-17, Consolidation (Topic 810), Interests Held through Related Parties That Are under Common Control, which provides that a single decision maker is not required to consider indirect interests held through related parties that are under common control with the decision maker to be equivalents of direct interests in their entity. The new guidance will be effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on Bunge's consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740), Intra-Entity Transfers of Assets Other Than Inventory, which eliminates an exception in the current guidance prohibiting a reporting entity to recognize income taxes consequences of an intra-entity transfer of an asset other than inventory, such as transfers of intellectual property and property, plant, and equipment, until the asset has been sold to an outside party. The new guidance does not include new disclosure requirements; however, existing disclosure requirements might be applicable when accounting for the current and deferred income taxes for an intra-entity transfer. ASU 2016-16 will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. Bunge is evaluating the impact of this standard on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force). This update attempts to reduce diversity in practice by providing guidance on the classification of certain cash receipts and payments in the statement of cash flows. The new standard is effective for Bunge for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. Bunge is evaluating the impact of this standard on its consolidated financial statements. In June 2016, the FASB issued 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 new guidance will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. Bunge is evaluating the impact of this standard on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation—Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting . This update identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The adoption of this standard is not expected to have a material impact on Bunge's consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . Under the new provisions, all lessees will report on the balance sheet a right-of-use asset and a liability for the obligation to make payments with the exception of those leases with a term of 12 months or less. The new provisions will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. Bunge is evaluating the expected impact of this standard on its consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments —Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities , which amends the guidance relating to the classification and measurement of financial instruments. Changes to the current guidance primarily affect the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. The new standard is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is not permitted except for certain provisions. Bunge is evaluating the expected impact of this standard on its consolidated financial statements. In May 2014, the FASB amended ASC (Topic 605) Revenue Recognition and created ASC ( Topic 606 ) Revenue from Contracts with Customers . The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The initial effective date is for interim and annual periods beginning on or after December 15, 2016. However, in August 2015, the FASB issued an amendment effectively deferring the implementation date for all entities by one year but also permitting companies to early adopt the guidance as of the original effective date, but not before January 1, 2017. During 2016, the FASB issued additional implementation guidance and practical expedients in ASU 2016-08 Revenue from Contracts with Customers (Topic 606), Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , ASU 2016-10 Revenue from Contracts with Customers (Topic 606), Identifying Performance Obligations and Licensing , ASU 2016-12 Revenue from Contracts with Customers (Topic 606), Narrow-Scope Improvements and Practical Expedients, and ASU 2016-20 Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers, to improve the guidance. The new requirements may be implemented either retrospectively for all prior periods presented (i.e., the full retrospective approach), or retrospectively with a cumulative-effect adjustment at the date of initial application (i.e., the modified retrospective approach). The Company expects to adopt the standard under the modified retrospective approach upon its effective date with a cumulative-effect adjustment to opening retained earnings. The Company has substantially completed its adoption assessment and does not expect a material measurement impact on the Company's results of operations, financial position or cash flows. The adoption of the new guidance will require expanded disclosure which the Company is still evaluating. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements —In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740), Balance Sheet Classification of Deferred Taxes . The amendments in this update require that deferred tax liabilities and assets be classified as noncurrent in a classified balance sheet. The update is effective for fiscal years beginning after December 15, 2016 on a prospective or retrospective basis, with earlier application permitted. Bunge early adopted this ASU on a prospective basis effective April 1, 2016 and the adoption did not have a material impact on Bunge's consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, Interest—Imputation of Interest (Subtopic 835-30), Simplifying the Presentation of Debt Issuance Costs. The amendments in this update require debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability, consistent with debt discounts, instead of being presented as an asset. Bunge adopted this ASU upon its effective date of January 1, 2016 and the adoption did not have a material impact on Bunge's consolidated financial statements. In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810), Amendments to the Consolidation Analysis. The standard makes targeted amendments to the current consolidation guidance and ends the deferral granted to investment companies from applying the VIE guidance and requires companies to reevaluate all legal entities under revised consolidation guidance. The revised consolidation rules provide guidance for evaluating: i) limited partnerships and similar entities for consolidation, ii) how decision maker or service provider fees affect the consolidation analysis, iii) how interests held by related parties affect the consolidation analysis and iv) the consolidation analysis required for certain investment funds. The standard was effective for interim and annual reporting periods beginning after December 15, 2015 and Bunge adopted ASU 2015-02 upon its effective date of January 1, 2016 using a modified retrospective approach. As a result of the initial application of ASU 2015-02, Bunge deconsolidated a Brazilian grain terminal and the remainder of its previously consolidated private equity and other investment funds. There was no cumulative effect to retained earnings as a result of the deconsolidation of these entities since there was no difference between the net amounts subtracted from Bunge's financial statements and the retained interest in those entities. |
NATURE OF BUSINESS, BASIS OF 38
NATURE OF BUSINESS, BASIS OF PRESENTATION, AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
NATURE OF BUSINESS, BASIS OF PRESENTATION, AND SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of useful lives for property, plant and equipment | Years Biological assets 5 - 7 Buildings 10 - 50 Machinery and equipment 7 - 25 Furniture, fixtures and other 3 - 20 Computer software 3 - 10 |
TRADE STRUCTURED FINANCE PROG39
TRADE STRUCTURED FINANCE PROGRAM (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
TRADE STRUCTURED FINANCE PROGRAM | |
Summary of assets and liabilities related to the trade structured finance program | (US$ in millions) December 31, December 31, Current assets: Carrying value of time deposits $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value (Level 2 measurement) of time deposits $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-current assets: Carrying value of time deposits $ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value (Level 2 measurement) of time deposits $ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current liabilities: Carrying value of letters of credit obligations and foreign exchange contracts $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value (Level 2 measurement) of letters of credit obligations $ $ Fair value (Level 2 measurement) of foreign exchange forward contracts-(gains) losses — ​ ​ ​ ​ ​ ​ ​ ​ Total fair value (Level 2 measurement) of letters of credit obligations and foreign exchange contracts $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
INVENTORIES | |
Schedule of inventories by segment | (US$ in millions) December 31, December 31, Agribusiness (1) $ $ Edible Oil Products (2) Milling Products Sugar and Bioenergy (3) Fertilizer ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Includes RMI of $3,593 million and $3,393 million at December 31, 2016 and 2015, respectively. Of these amounts $2,523 million and $2,513 million can be attributable to merchandising activities at December 31, 2016 and 2015, respectively. (2) Includes RMI of bulk soybean and canola oil in the aggregate amount of $123 million and $110 million at December 31, 2016 and 2015, respectively. (3) Includes sugar RMI, which can be attributable to Bunge's trading and merchandising business of $139 million and $163 million at December 31, 2016 and 2015, respectively. |
OTHER CURRENT ASSETS (Tables)
OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
OTHER CURRENT ASSETS | |
Schedule of other current assets | (US$ in millions) December 31, December 31, Unrealized gains on derivative contracts, at fair value $ $ Prepaid commodity purchase contracts (1) Secured advances to suppliers, net (2) Recoverable taxes, net Margin deposits Marketable securities, at fair value and other short-term investments Deferred purchase price receivable, at fair value (3) Prepaid expenses Other ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Prepaid commodity purchase contracts represent advance payments against contracts for future delivery of specified quantities of agricultural commodities. (2) Bunge provides cash advances to suppliers, primarily Brazilian farmers of soybeans and sugarcane, to finance a portion of the suppliers' production costs. Bunge 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 farmer's crop is harvested and sold. The secured advances to farmers are reported net of allowances of $1 million and $2 million at December 31, 2016 and December 31, 2015, respectively. There were no significant changes in the allowance for 2016 and 2015, respectively. Interest earned on secured advances to suppliers of $38 million, $38 million and $37 million, respectively, for the years ended December 31, 2016, 2015 and 2014, respectively, is included in net sales in the consolidated statements of income. ( 3 ) Deferred purchase price receivable represents additional credit support for the investment conduits in Bunge's accounts receivables sales program (see Note 17). |
Summary of marketable securities and other short-term investments | (US$ in millions) December 31, December 31, Foreign government securities $ $ Corporate debt securities Certificate of deposits/time deposits Other ​ ​ ​ ​ ​ ​ ​ ​ Total marketable securities and other short-term investments $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
PROPERTY, PLANT AND EQUIPMENT | |
Schedule of property, plant and equipment | December 31, (US$ in millions) 2016 2015 Land $ $ Biological assets Buildings Machinery and equipment Furniture, fixtures and other Construction in progress ​ ​ ​ ​ ​ ​ ​ ​ Less: accumulated depreciation and depletion ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
GOODWILL | |
Summary of changes in the carrying amount of goodwill by segment | (US$ in millions) Agribusiness Edible Oil Milling Sugar and Fertilizer Total Goodwill Accumulated impairment losses ) — ) ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance, December 31, 2014, net — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Goodwill acquired — — Impairment (3) — ) — — — ) Tax benefit on goodwill amortization (2) ) — — — — ) Foreign exchange translation ) ) ) — ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Goodwill, gross of impairments Accumulated impairment losses ) ) ) ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance, December 31, 2015, net — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Goodwill acquired (1) — — — — Measurement period adjustments — — ) — — ) Tax benefit on goodwill amortization (2) ) — — — — ) Foreign exchange translation — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Goodwill, gross of impairments Accumulated impairment losses ) ) ) ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance, December 31, 2016, net $ $ $ $ — $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Relates to the 2016 acquisition of Walter Rau Neusser. (2) Bunge's Brazilian subsidiary's tax deductible goodwill is in excess of its book goodwill. For financial reporting purposes for goodwill acquired prior to 2009, the tax benefits attributable to the excess tax goodwill are first used to reduce associated goodwill and then other intangible assets to zero, prior to recognizing any income tax benefit in the consolidated statements of income. (3) In 2015, goodwill impairment charge of $13 million represents all of the goodwill of the Brazilian tomato products business, recorded in the fourth quarter upon completion of Bunge's annual impairment analysis. This analysis was performed using discounted cash flow projections (the income approach) to determine the fair value of the business unit. The income approach estimates fair value by discounting the business unit's estimated future cash flows using a discount rate that reflects current market conditions and the risk profile of the business and includes, among other things, making assumptions about variables such as product pricing, future profitability and future capital expenditures that might be used by a market participant. All of these assumptions are subject to a high degree of judgment. |
OTHER INTANGIBLE ASSETS (Tables
OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
OTHER INTANGIBLE ASSETS | |
Schedule of other intangible assets | December 31, (US$ in millions) 2016 2015 Trademarks/brands, finite-lived $ $ Licenses Port rights Other ​ ​ ​ ​ ​ ​ ​ ​ Less accumulated amortization: Trademarks/brands (1) ) ) Licenses ) ) Port rights ) ) Other ) ) ​ ​ ​ ​ ​ ​ ​ ​ ) ) ​ ​ ​ ​ ​ ​ ​ ​ Intangible assets, net of accumulated amortization $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Bunge's Brazilian subsidiary's tax deductible goodwill in the Agribusiness segment is in excess of its book goodwill. For financial reporting purposes, for other intangible assets acquired prior to 2009, before recognizing any income tax benefit of tax deductible goodwill in excess of its book goodwill in the consolidated statements of income and after the related book goodwill has been reduced to zero, any such remaining tax deductible goodwill in excess of its book goodwill is used to reduce other intangible assets to zero. |
IMPAIRMENTS (Tables)
IMPAIRMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
IMPAIRMENTS | |
Assets measured at fair value on a nonrecurring basis | Fair Value Carrying Value Impairment Losses (US$ in millions) Level 1 Level 2 Level 3 Property, plant and equipment $ $ — $ — $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Intangibles $ — $ — $ — $ — $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Investment in affiliates and other investments $ $ — $ — $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Carrying Value Impairment Losses (US$ in millions) Level 1 Level 2 Level 3 Property, plant and equipment $ $ — $ — $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Goodwill (see Note 7) $ — $ — $ — $ — $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Investments in affiliates $ $ — $ — $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Carrying Value Impairment Losses (US$ in millions) Level 1 Level 2 Level 3 Non-current assets held for sale $ $ — $ — $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Investment in affiliates $ $ — $ — $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Property, plant and equipment $ $ — $ — $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
OTHER NON-CURRENT ASSETS (Table
OTHER NON-CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
OTHER NON-CURRENT ASSETS | |
Schedule of other non-current assets | (US$ in millions) December 31, December 31, Recoverable taxes, net (1) $ $ Judicial deposits (1) Other long-term receivables Income taxes receivable (1) Long-term investments Affiliate loans receivable Long-term receivables from farmers in Brazil, net (1) Other ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) These non-current assets arise primarily from Bunge's Brazilian operations and their realization could take in excess of five years. |
Summary of long-term receivables from Brazilian farmers | December 31, (US$ in millions) 2016 2015 Legal collection process (1) $ $ Renegotiated amounts (2) Other long-term receivables ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) All amounts in legal process are considered past due upon initiation of legal action. (2) All renegotiated amounts are current on repayment terms. |
Summary of recorded investment in long-term receivables and the related allowance amounts from Brazilian farmers | December 31, 2016 December 31, 2015 (US$ in millions) Recorded Allowance Recorded Allowance For which an allowance has been provided: Legal collection process $ $ $ Renegotiated amounts For which no allowance has been provided: Legal collection process — — Renegotiated amounts — — Other long-term receivables — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Summary of the activity in the allowance for doubtful accounts related to long-term receivables from Brazilian farmers | December 31, (US$ in millions) 2016 2015 Beginning balance $ $ Bad debt provisions Recoveries ) ) Write-offs ) ) Transfers (1) — Foreign exchange translation ) ​ ​ ​ ​ ​ ​ ​ ​ Ending balance $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Represents reclassifications from allowance for doubtful accounts-current for secured advances to suppliers. |
OTHER CURRENT LIABILITIES (Tabl
OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
OTHER CURRENT LIABILITIES | |
Schedule of other current liabilities | (US$ in millions) December 31, December 31, Accrued liabilities $ $ Unrealized losses on derivative contracts at fair value Advances on sales Other ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
INCOME TAXES | |
Components of income from continuing operations before income tax | Year Ended December 31, (US$ in millions) 2016 2015 2014 United States $ $ $ Non-United States ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Components of income tax expense (benefit) | Year Ended (US$ in millions) 2016 2015 2014 Current: United States $ ) $ $ Non-United States ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deferred: United States Non-United States ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Reconciliation of income tax expense (benefit) | Year Ended December 31, (US$ in millions) 2016 2015 2014 Income from operations before income tax $ $ $ Income tax rate % % % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income tax expense at the U.S. Federal tax rate Adjustments to derive effective tax rate: Foreign earnings taxed at different statutory rates ) ) ) Valuation allowances ) Fiscal incentives (1) ) ) ) Foreign exchange on monetary items ) ) Tax rate changes Non-deductible expenses Uncertain tax positions ) Deferred balance adjustments — ) Equity distributions — ) ) Foreign income taxed in Brazil — — ) Tax credits ) — — Other ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income tax (benefit) expense $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Fiscal incentives predominantly relate to investment incentives in Brazil that are exempt from Brazilian income tax. |
Components of deferred tax assets and liabilities and related valuation allowances | December 31, (US$ in millions) 2016 2015 Deferred income tax assets: (1) Net operating loss carryforwards $ $ Employee benefits Tax credit carryforwards Inventories — Intangibles Accrued expenses and other ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax assets Less valuation allowances ) ) ​ ​ ​ ​ ​ ​ ​ ​ Deferred tax assets, net of valuation allowance ​ ​ ​ ​ ​ ​ ​ ​ Deferred income tax liabilities: (1) Property, plant and equipment Undistributed earnings of affiliates Investments Inventories — ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax liabilities ​ ​ ​ ​ ​ ​ ​ ​ Net deferred tax assets $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Bunge has changed its presentation of the composition of deferred tax assets and liabilities to a net approach, where a net deferred tax asset or liability is disclosed for each primary component of the deferred tax assets and liabilities. The change in presentation did not impact the consolidated balance sheet presentation of deferred tax assets and liabilities. |
Reconciliation of unrecognized tax benefits | (US$ in millions) 2016 2015 2014 Balance at January 1, $ $ $ Additions based on tax positions related to the current year Additions based on acquisitions — Additions based on tax positions related to prior years Reductions for tax positions of prior years — ) ) Settlement or clarification from tax authorities ) ) ) Expiration of statute of limitations ) ) ) Foreign currency translation ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at December 31, $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Tax years subject to income tax examination by tax authorities | Open Tax Years North America 2009 - 2016 South America 2010 - 2016 Europe 2004 - 2016 Asia-Pacific 2003 - 2016 |
FINANCIAL INSTRUMENTS AND FAI49
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | |
Schedule of assets and liabilities accounted for at fair value on a recurring basis | Fair Value Measurements at Reporting Date December 31, 2016 December 31, 2015 (US$ in millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Readily marketable inventories (Note 4) $ — $ $ $ $ — $ $ $ Trade accounts receivable (1) — — — — Unrealized gain on designated derivative contracts (2) : Interest Rate — — — — — — Foreign exchange — — — — Unrealized gain on undesignated derivative contracts (2) : Interest rate — — — — — — Foreign exchange — — — Commodities Freight — — — — Energy — — Deferred purchase price receivable (Note 17) — — — — Other (3) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets $ $ $ $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities: Trade accounts payable (1) $ — $ $ $ $ — $ $ $ Unrealized loss on designated derivative contracts (4) : Interest rate — — — — Foreign exchange — — — — — — Unrealized loss on undesignated derivative contracts (4) : Foreign exchange — — — Commodities Freight — — — Energy — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities $ $ $ $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Trade accounts receivable and payable are generally stated at historical amounts, net of write-offs and allowances, with the exception of $6 million and $522 million, at December 31, 2016 and $6 million and $443 million at December 31, 2015, respectively, related to certain delivered inventory for which the receivable and payable, respectively, fluctuate based on changes in commodity prices. These receivables and payables are hybrid financial instruments for which Bunge has elected the fair value option. (2) Unrealized gains on designated and undesignated derivative contracts are generally included in other current assets. There were $5 million and nil included in other non-current assets at December 31, 2016 and December 31, 2015, respectively. (3) Other includes the fair values of marketable securities and investments in other current assets and other non-current assets. (4) Unrealized losses on designated and undesignated derivative contracts are generally included in other current liabilities. There were $18 million and nil included in other non-current liabilities at December 31, 2016 and December 31, 2015, respectively. |
Reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | Level 3 Instruments Fair Value Measurements (US$ in millions) Derivatives, (1) Readily Trade (2) Total Balance, January 1, 2016 $ $ $ ) $ Total gains and losses (realized/unrealized) included in cost of goods sold ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Purchases — ) Sales — ) — ) Issuances ) — — ) Settlements ) — Transfers into Level 3 ) ) Transfers out of Level 3 ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance, December 31, 2016 $ ) $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Derivatives, net include Level 3 derivative assets and liabilities. (2) Trade Accounts Receivable and Trade Accounts Payable, net, include Level 3 inventory related receivables and payables. Level 3 Instruments Fair Value Measurements (US$ in millions) Derivatives, (1) Readily Trade (2) Total Balance, January 1, 2015 $ ) $ $ ) $ Total gains and losses (realized/unrealized) included in cost of goods sold ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Purchases ) Sales — ) — ) Issuances ) — ) ) Settlements ) — Transfers into Level 3 ) Transfers out of Level 3 ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance, December 31, 2015 $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Derivatives, net include Level 3 derivative assets and liabilities. (2) Trade Accounts Receivable and Trade Accounts Payable, net, include Level 3 inventory related receivables and payables. |
Summary of changes in unrealized gains or (losses) recorded in earnings for Level 3 assets and liabilities | Level 3 Instruments Fair Value Measurements (US$ in millions) Derivatives, (1) Readily Trade (2) Total Changes in unrealized gains and (losses) relating to assets and liabilities held at December 31, 2016 Cost of goods sold $ ) $ ) $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Changes in unrealized gains and (losses) relating to assets and liabilities held at December 31, 2015 Cost of goods sold $ $ ) $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Derivatives, net include Level 3 derivative assets and liabilities. (2) Trade Accounts Receivable and Trade Accounts Payable, net, include Level 3 inventory related receivables and payables. |
Summary of effect of derivative instruments designated as fair value hedges and undesignated derivative instruments on consolidated statements of income | Gain or (Loss) December 31, (US$ in millions) Location 2016 2015 Designated Derivative Contracts: Interest Rate Interest income/Interest expense $ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Undesignated Derivative Contracts: Interest Rate Interest income/Interest expense $ ) $ — Interest Rate Other income (expense)-net — ) Foreign Exchange Foreign exchange gains (losses) ) Foreign Exchange Cost of goods sold ) Commodities Cost of goods sold ) Freight Cost of goods sold Energy Cost of goods sold ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Summary of effect of financial instruments designated as cash flow and net investment hedges | Year Ended December 31, 2016 Gain or (Loss) (1) Gain or (1) Gain or (Loss) Recognized Notional Amount (US$ in millions) Location Amount Location Amount (2) Cash Flow Hedge: Foreign Exchange (3) $ $ Foreign exchange gains (losses) $ Foreign exchange gains (losses) $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Investment Hedge: Foreign Currency denominated debt (4) $ $ Foreign currency denominated debt $ — Foreign currency denominated debt $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign Exchange (3) $ — $ ) Foreign exchange gains (losses) $ — Foreign exchange gains (losses) $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ) $ — $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) The gain (loss) recognized relates to the effective portion of the hedging relationship. At December 31, 2016, Bunge expects to reclassify into income in the next 12 months $44 million of after-tax loss related to its foreign exchange cash flow hedges and nil for net investment hedges. (2) There was no gain or loss recognized in income relating to the ineffective portion of the hedging relationships or relating to amounts excluded from the assessment of hedge effectiveness. (3) The foreign exchange contracts mature at various dates through January 2018. (4) The euro loans mature in 2023. Year Ended December 31, 2015 Gain or (Loss) (1) Gain or (1) Gain or (Loss) Recognized Notional Amount (US$ in millions) Location Amount Location Amount (2) Cash Flow Hedge: Foreign Exchange (3) $ $ Foreign exchange gains (losses) $ ) Foreign exchange gains (losses) $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ) $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Investment Hedge: Foreign Exchange (3) $ $ Foreign exchange gains (losses) $ — Foreign exchange gains (losses) $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ — $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) The gain or (loss) recognized relates to the effective portion of the hedging relationship. At December 31, 2015, Bunge expected to reclassify into income in the next 12 months approximately $76 million of after-tax gains (losses) related to its foreign exchange cash flow hedges and nil for net investment hedges. (2) There was no gain or loss recognized in income relating to the ineffective portion of the hedging relationships or to amounts excluded from the assessment of hedge effectiveness. (3) The foreign exchange contracts matured at various dates through November 2020. |
Interest rate | |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | |
Summary of outstanding derivative instruments | Notional Amount of Hedged Notional Maturity Date Payment Weighted Fixed Rate $500 $ November 24, 2020 3 month LIBOR plus 1.91% % euro 800 euro June 16, 2023 6 month EURIBOR plus 1.64% % $550 $ August 15, 2026 3 month LIBOR plus 1.12% % December 31, 2016 Exchange Non-exchange Net (Short) & (1) Unit of (US$ in millions) (Short) (2) Long (2) Interest Rate Futures $ $ — $ — Notional Swaps — ) Notional Forward Rate Agreements — ) Notional (1) Exchange traded derivatives are presented on a net (short) and long position basis. (2) Non-exchange traded derivatives are presented on a gross (short) and long position basis. |
Foreign exchange | |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | |
Summary of outstanding derivative instruments | December 31, 2016 Exchange Non-exchange Net (Short) & (1) Unit of (US$ in millions) (Short) (2) Long (2) Foreign Exchange Options $ — $ ) $ Delta Forwards — ) Notional Swaps — ) Notional (1) Exchange traded derivatives are presented on a net (short) and long position basis. (2) Non-exchange traded derivatives are presented on a gross (short) and long position basis. |
Commodities | |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | |
Summary of outstanding derivative instruments | December 31, 2016 Exchange Non-exchange Traded Net (Short) & (1) Unit of (Short) (2) Long (2) Agricultural Commodities Futures ) — — Metric Tons Options ) — — Metric Tons Forwards — ) Metric Tons Swaps — ) Metric Tons (1) Exchange traded derivatives are presented on a net (short) and long position basis. (2) Non-exchange traded derivatives are presented on a gross (short) and long position basis. |
Freight | |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | |
Summary of outstanding derivative instruments | December 31, 2016 Exchange Non-exchange Net (Short) & (1) Unit of (Short) (2) Long (2) Ocean Freight FFA ) — — Hire Days FFA Options ) — — Hire Days (1) Exchange cleared derivatives are presented on a net (short) and long position basis. (2) Non-exchange cleared derivatives are presented on a gross (short) and long position basis. |
Energy | |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | |
Summary of outstanding derivative instruments | December 31, 2016 Exchange Non-exchange Cleared Net (Short) & (1) Unit of (3) (Short) (2) Long (2) Natural Gas (3) Futures — — MMBtus Swaps — — MMBtus Energy—Other Futures — — Metric Tons Forwards — — Metric Tons Swaps — — Metric Tons Options ) — — Metric Tons (1) Exchange traded and cleared derivatives are presented on a net (short) and long position basis. (2) Non-exchange cleared derivatives are presented on a gross (short) and long position basis. (3) Million British Thermal Units ("MMBtus") are standard units of measurement used to denote an amount of electricity and natural gas, respectively. |
SHORT-TERM DEBT AND CREDIT FA50
SHORT-TERM DEBT AND CREDIT FACILITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
SHORT-TERM DEBT AND CREDIT FACILITIES | |
Short-term debt | December 31, (US$ in millions) 2016 2015 Lines of credit: Secured, variable interest rate of 2.33% $ — $ Unsecured, variable interest rates from 1.27% to 32.00% (1) ​ ​ ​ ​ ​ ​ ​ ​ Total short-term debt $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Includes $148 million and $137 million of local currency borrowings in certain Central and Eastern European, South American, South African and Asia-Pacific countries at a weighted-average interest rate of 13.63% and 15.54% as of December 31, 2016 and 2015, respectively. |
LONG-TERM DEBT AND CREDIT FAC51
LONG-TERM DEBT AND CREDIT FACILITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
LONG-TERM DEBT AND CREDIT FACILITIES | |
Long-term debt | December 31, (US$ in millions) 2016 2015 Revolving credit facilities $ — $ Term loan due 2019—three-month Yen LIBOR plus 0.75% (Tranche A) Term loan due 2019—fixed Yen interest rate of 0.96% (Tranche B) Term loan due 2019—three-month LIBOR plus 1.30% (Tranche C) 4.10% Senior Notes due 2016 — 5.90% Senior Notes due 2017 3.20% Senior Notes due 2017 8.50% Senior Notes due 2019 3.50% Senior Notes due 2020 1.85% Senior Notes due 2023—Euro — 3.25% Senior Notes due 2026 — Consolidated investment fund debt (1) — Other ​ ​ ​ ​ ​ ​ ​ ​ Subtotal Less: Current portion of long-term debt ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total long-term debt $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) There is no consolidated investment fund debt as of December 31, 2016. Bunge elected to account for $53 million at fair value as of December 31, 2015. |
Schedule of carrying amounts and fair values of long-term debt | December 31, December 31, (US$ in millions) Carrying Fair Value Fair Value Carrying Fair Value Fair Value Long-term debt, including current portion $ $ $ — $ $ $ |
Principal maturities of long-term debt | (US$ in millions) 2017 $ 2018 2019 2020 2021 Thereafter ​ ​ ​ ​ ​ Total (1) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Excludes changes in long-term debt attributable to fair value hedge accounting of $17 million. |
TRADE RECEIVABLES SECURITIZAT52
TRADE RECEIVABLES SECURITIZATION PROGRAM (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
TRADE RECEIVABLES SECURITIZATION PROGRAM | |
Summary of cash flows and discounts of trade receivables securitization program | (US$ in millions) December 31, December 31, Receivables sold which were derecognized on Bunge balance sheet $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Proceeds received in cash related to transfer of receivables $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash collections from customers on receivables previously sold $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross receivables sold $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (US$ in millions) December 31, December 31, December 31, Discounts related to gross receivables sold included in SG&A $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (US$ in millions) December 31, December 31, Deferred purchase price included in other current assets $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
EMPLOYEE BENEFIT PLANS | |
Changes in the defined benefit pension and postretirement benefit plans' benefit obligations, assets and funded status of plans recognized in the balance sheet | Pension Postretirement (US$ in millions) 2016 2015 2016 2015 Change in benefit obligations: Benefit obligation at the beginning of year $ $ $ $ Service cost — — Interest cost Plan curtailments ) ) — — Actuarial (gain) loss, net ) Employee contributions Net transfers in (out) — — — Plan settlements ) ) — — Benefits paid ) ) ) ) Expenses paid ) ) — — Impact of foreign exchange rates ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Benefit obligation at the end of year $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Change in plan assets: Fair value of plan assets at the beginning of year $ $ $ — $ — Actual return on plan assets ) — — Employer contributions Employee contributions Plan settlements ) ) — — Effect of plan combinations — — — Benefits paid ) ) ) ) Expenses paid ) ) — — Impact of foreign exchange rates ) ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value of plan assets at the end of year $ $ $ — $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Funded (unfunded) status and net amounts recognized: Plan assets (less than) in excess of benefit obligation $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net (liability) asset recognized in the balance sheet $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amounts recognized in the balance sheet consist of: Non-current assets $ $ $ — $ — Current liabilities ) ) ) ) Non-current liabilities ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net liability recognized $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of effects of one-percentage point change in assumed healthcare cost trend rates | (US$ in millions) One-percentage One-percentage Effect on total service and interest cost $ $ — Effect on postretirement benefit obligation $ $ ) |
Components of net periodic benefit costs | Pension Benefits Postretirement (US$ in millions) 2016 2015 2014 2016 2015 2014 Service cost $ $ $ $ — $ — $ — Interest cost Expected return on plan assets ) ) ) — — — Amortization of prior service cost — — — — Amortization of net loss — — ) Curtailment loss — — — — ) Settlement loss recognized — — — — — Special termination benefit — — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net periodic benefit costs $ $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of weighted-average assumptions used in determining the benefit obligations | Pension Postretirement 2016 2015 2016 2015 Discount rate % % % % Increase in future compensation levels % % N/A N/A |
Schedule of weighted-average assumptions used in determining the net periodic benefit costs | Pension Benefits Postretirement 2016 2015 2014 2016 2015 2014 Discount rate % % % % % % Expected long-term rate of return on assets % % % N/A N/A N/A Increase in future compensation levels % % % N/A N/A N/A |
Estimated future benefit payments | (US$ in millions) Pension Postretirement 2017 $ $ 2018 2019 2020 2021 2022 and onwards |
Pension Benefits | |
EMPLOYEE BENEFIT PLANS | |
Schedule of accumulated benefit obligation in excess of plan assets | Pension (US$ in millions) 2016 2015 Projected benefit obligation $ $ Accumulated benefit obligation $ $ Fair value of plan assets $ $ |
Fair values of defined pension plan assets | Fair Value Measurements at December 31, 2016 Pension Benefits (US$ in millions) Total Quoted Prices in Significant Significant Cash $ $ $ — $ — Equities: Mutual Funds (1) — Fixed income securities: Mutual Funds (2) — Others (3) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurements at December 31, 2015 Pension Benefits (US$ in millions) Total Quoted Prices in Significant Significant Cash $ $ $ — $ — Equities: Mutual Funds (1) — Fixed income securities: Mutual Funds (2) — Others (3) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) This category represents a portfolio of equity investments comprised of equity index funds that invest in U.S. equities and non-U.S. equities. The U.S. equities are comprised of investments focusing on large, mid and small cap companies and non-U.S. equities are comprised of international, emerging markets and real estate investment trusts. (2) This category represents a portfolio of fixed income investments in mutual funds comprised of investment grade U.S. government bonds and notes, foreign government bonds and corporate bonds from diverse industries. (3) This category represents a portfolio consisting of a mixture of equity, fixed income and cash. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
COMMITMENTS AND CONTINGENCIES | |
Liabilities related to general claims and lawsuits included in other non-current liabilities | (US$ in millions) December 31, December 31, Non-income tax claims $ $ Labor claims Civil and other claims ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Maximum potential future payments related to guarantees | (US$ in millions) Maximum Unconsolidated affiliates guarantee (1)(2) $ Residual value guarantee (3) ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Bunge issued guarantees to certain financial institutions related to debt of certain of its unconsolidated joint ventures. The terms of the guarantees are equal to the terms of the related financings which have maturity dates in 2017 through 2022. There are no recourse provisions or collateral that would enable Bunge to recover any amounts paid under these guarantees. At December 31, 2016, Bunge recorded no obligation related to these guarantees. (2) Bunge issued guarantees to certain third parties related to performance of its unconsolidated joint ventures. There are no recourse provisions or collateral that would enable Bunge to recover any amounts paid under these guarantees. At December 31, 2016, Bunge recorded no obligation related to these guarantees. (3) Bunge issued guarantees to certain financial institutions which are party to certain operating lease arrangements for railcars and barges. These guarantees provide for a minimum residual value to be received by the lessor at conclusion of the lease term. These leases expire at various dates from 2018 through 2021. At December 31, 2016, Bunge's recorded obligation related to these guarantees was $4 million. |
Future minimum payment obligations under freight supply agreements | (US$ in millions) Ocean Railroad Minimum 2017 $ $ $ 2018 and 2019 2020 and 2021 2022 and thereafter ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
EQUITY | |
Schedule of after-tax components of accumulated other comprehensive income (loss) attributable to Bunge | (US$ in millions) Foreign (1) Deferred Pension and Unrealized Accumulated Balance January 1, 2014 $ ) $ ) ) ) Other comprehensive income (loss) before reclassifications ) ) ) ) Amount reclassified from accumulated other comprehensive income — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net-current period other comprehensive income (loss) ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance, December 31, 2014 ) $ ) ) ) Other comprehensive income (loss) before reclassifications ) — ) Amount reclassified from accumulated other comprehensive income (loss) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net-current period other comprehensive income (loss) ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance, December 31, 2015 ) $ ) ) Other comprehensive income (loss) before reclassifications ) ) — Amount reclassified from accumulated other comprehensive income (loss) — ) — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net-current period other comprehensive income (loss) ) ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance, December 31, 2016 $ ) $ ) $ ) $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Bunge has significant operating subsidiaries in Brazil, Argentina, North America, Europe and Asia-Pacific. The functional currency of Bunge's subsidiaries is the local currency. The assets and liabilities of these subsidiaries are translated into U.S. dollars from local currency at month-end exchange rates, and the resulting foreign exchange translation gains (losses) are recorded in the consolidated balance sheets as a component of accumulated other comprehensive income (loss). |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
EARNINGS PER COMMON SHARE | |
Computation of basic and diluted earnings per common share | Year Ended December 31, (US$ in millions, except for share data) 2016 2015 2014 Income from continuing operations $ $ $ Net (income) loss attributable to noncontrolling interests ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) from continuing operations attributable to Bunge ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other redeemable obligations (1) ) ) ) Convertible preference share dividends ) ) ) Income (loss) from discontinued operations, net of tax ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) available to Bunge common shareholders $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average number of common shares outstanding: Basic Effect of dilutive shares: —stock options and awards (2) —convertible preference shares (3) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic earnings per common share: Net income (loss) from continuing operations $ $ $ Net income (loss) from discontinued operations ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) to Bunge common shareholders—basic $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted earnings per common share: Net income (loss) from continuing operations $ $ $ Net income (loss) from discontinued operations ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) to Bunge common shareholders—diluted $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Accretion of redeemable noncontrolling interest of $2 million, $19 million and $14 million for the years ended December 31, 2016, 2015 and 2014, respectively, relates to a non-fair value variable put arrangement whereby the noncontrolling interest holder may have required Bunge to purchase the remaining shares of an oilseed processing operation in Central and Eastern Europe. As further discussed in Note 21 Redeemable Noncontrolling Interest, during the second quarter of 2016 Bunge exercised its call option with Prio for their 45% interest in the joint venture for approximately $39 million. The transaction concluded in September 2016. Accretion for the respective periods includes the effect of losses incurred by the operations for the years ended December 31, 2016, 2015 and 2014, respectively. (2) The weighted-average common shares outstanding-diluted excludes approximately 4 million, 3 million and 2 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 years ended December 31, 2016, 2015 and 2014, respectively. (3) Weighted-average common share outstanding-diluted for the year ended December 31, 2014 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 outstanding. |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
SHARE-BASED COMPENSATION | |
Assumptions used to estimate fair value of stock options | December 31, Assumptions: 2016 2015 2014 Expected option term (in years) Expected dividend yield % % % Expected volatility % % % Risk-free interest rate % % % |
Summary of stock option activity | Options Shares Weighted-Average Weighted-Average Aggregate Outstanding at January 1, 2016 $ Granted $ Exercised ) $ Forfeited or expired ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding at December 31, 2016 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable at December 31, 2016 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Summary of restricted stock unit activity | Restricted Stock Units Shares Weighted-Average Restricted stock units at January 1, 2016 $ Granted Vested/issued (2) ) Forfeited/cancelled (2) ) ​ ​ ​ ​ ​ ​ ​ ​ Restricted stock units at December 31, 2016 (1) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Includes accrued unvested dividends, which are payable in Bunge's common shares upon vesting of underlying restricted stock units. (2) During the year ended December 31, 2016, Bunge issued 235,204 common shares, net of common shares withheld to cover taxes, including related common shares representing accrued dividends, with a weighted-average fair value of $57.91 per share. During the year ended December 31, 2016, 82,520 performance-based restricted stock units vested. During the year ended December 31, 2016, Bunge canceled approximately 135,948 shares related to performance-based restricted stock unit awards that did not vest due to non-achievement of performance targets and performance-based restricted stock unit awards that were withheld to cover payment of employee related taxes. |
LEASE COMMITMENTS (Tables)
LEASE COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
LEASE COMMITMENTS | |
Minimum lease payments under non-cancelable operating leases | (US$ in millions) Minimum 2017 $ 2018 2019 2020 2021 Thereafter ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Net rent expense under non-cancelable operating leases | Year Ended (US$ in millions) 2016 2015 2014 Rent expense $ $ $ Sublease income ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net rent expense $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
SEGMENT INFORMATION | |
Operating Segment Information | (US$ in millions) Agribusiness Edible Oil Milling Sugar and Fertilizer Discontinued (1) Total 2016 Net sales to external customers $ $ $ $ $ $ — $ Inter—segment revenues — ) — Foreign exchange gains (losses) ) ) ) ) — ) Noncontrolling interests (1) ) ) — — ) ) Other income (expense)—net ) ) — Segment EBIT (3) ) — Discontinued operations (2) — — — — — ) ) Depreciation, depletion and amortization ) ) ) ) ) — ) Investments in affiliates — — — — Total assets Capital expenditures 2015 Net sales to external customers $ $ $ $ $ $ — $ Inter—segment revenues — ) — Foreign exchange gains (losses) — ) ) — ) Noncontrolling interests (1) ) ) — — ) Other income (expense)—net ) ) ) ) — ) Segment EBIT (4) ) — Discontinued operations (2) — — — — — Depreciation, depletion and amortization ) ) ) ) ) — ) Investments in affiliates — — — — Total assets Capital expenditures 2014 Net sales to external customers $ $ $ $ $ $ — $ Inter—segment revenues — — ) — Foreign exchange gains (losses) ) ) — Noncontrolling interests (1) ) ) — ) ) ) Other income (expense)—net ) ) — Segment EBIT ) — Discontinued operations (2) — — — — — Depreciation, depletion and amortization ) ) ) ) ) — ) Investments in affiliates — — — — Total assets Capital expenditures (1) Includes the noncontrolling interests' share of interest and tax to reconcile to consolidated noncontrolling interests. (2) Represents net income (loss) from discontinued operations. (3) 2016 EBIT includes $122 million of gains related to disposition of equity interest in operations in Agribusiness, recorded in other income (expense)-net. In addition, Bunge recorded pre-tax impairment charges of $71 million and $9 million in other income (expense)-net and cost of goods sold, respectively. Of these pre-tax impairment charges, $44 million was allocated to Sugar and Bioenergy, $27 million to Agribusiness and $9 million to Fertilizer. (4) 2015 EBIT includes a $47 million gain on the sale of assets in Agribusiness. In addition, Bunge recorded pre-tax impairment charges of $57 million, of which $15 million, $14 million and $13 million are included in cost of goods sold, selling, general and administrative expenses and goodwill impairment, respectively. Of these pre-tax impairment charges, $14 million was allocated to Agribusiness and $28 million to Edible Oil Products. |
Reconciliation of total segment EBIT to net income attributable to Bunge | Year Ended December 31, (US$ in millions) 2016 2015 2014 Total segment EBIT from continuing operations $ $ $ Interest income Interest expense ) ) ) Income tax (expense) benefit ) ) ) Income (loss) from discontinued operations, net of tax ) Noncontrolling interests' share of interest and tax ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income attributable to Bunge $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Net sales by product group to external customers | Year Ended December 31, (US$ in millions) 2016 2015 2014 Agricultural Commodity Products $ $ $ Edible Oil Products Wheat Milling Products Corn Milling Products Sugar and Bioenergy Products Fertilizer Products ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Geographic area information for net sales to external customers, determined based on the location of the subsidiary making the sale, and long-lived assets | Year Ended December 31, (US$ in millions) 2016 2015 2014 Net sales to external customers: Europe $ $ $ United States Asia-Pacific Brazil Argentina Canada Rest of world ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, (US$ in millions) 2016 2015 2014 Long-lived assets (1) : Brazil $ $ $ United States Europe Asia-Pacific Canada Argentina Rest of world ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Long-lived assets include property, plant and equipment, net, goodwill and other intangible assets, net, investments in affiliates and non-current assets held for sale. |
QUARTERLY FINANCIAL INFORMATI60
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | |
Quarterly Financial Information (Unaudited) | Quarter (US$ in millions, except per share data) First Second Third Fourth Year End 2016 Net sales $ $ $ $ $ Gross profit Income (loss) from discontinued operations, net of tax ) ) ) ) Net income (loss) Net income (loss) attributable to Bunge Earnings per common share—basic (1) Net income (loss) $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) from continuing operations $ $ $ $ $ Net income (loss) from discontinued operations ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) to Bunge common shareholders $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings per common share—diluted (1) Net income (loss) $ $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) from continuing operations $ $ $ $ $ Net income (loss) from discontinued operations ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) to Bunge common shareholders $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average number of shares: Weighted-average number of shares outstanding—basic Weighted-average number of shares outstanding—diluted Market price: High $ $ $ $ Low $ $ $ $ 2015 Net sales $ $ $ $ $ Gross profit Income (loss) from discontinued operations, net of tax ) Net income (loss) Net income (loss) attributable to Bunge Earnings per common share—basic (1) Net income (loss) $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) from continuing operations $ $ $ $ $ Net income (loss) from discontinued operations ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) to Bunge common shareholders $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings per common share—diluted (1) Net income (loss) $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) from continuing operations $ $ $ $ $ Net income (loss) from discontinued operations — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) to Bunge common shareholders $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average number of shares: Weighted-average number of shares outstanding—basic Weighted-average number of shares outstanding—diluted Market price: High $ $ $ $ Low $ $ $ $ (1) Earnings per share to Bunge common shareholders for both basic and diluted is computed independently for each period presented. As a result, the sum of the quarterly earnings per share for the years ended December 31, 2016 and 2015 does not equal the total computed for the year. |
NATURE OF BUSINESS, BASIS OF 61
NATURE OF BUSINESS, BASIS OF PRESENTATION, AND SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)segmentitem | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Description of Business | |||
Number of principal business areas | item | 4 | ||
Number of reportable segments | segment | 5 | ||
Number of sugar mills in Brazil | item | 8 | ||
Principles of Consolidation | |||
Maximum percentage ownership for interests reported as noncontrolling interests in subsidiaries | 100.00% | ||
Trade Accounts Receivable and Secured Advances to Suppliers | |||
Deferred fees or costs related to secured advances to suppliers | $ 0 | ||
Imputed interest to be amortized | 0 | ||
Additional interest income accrued | 0 | ||
Research and Development | |||
Research and development expenses | $ 17 | $ 16 | $ 20 |
Biological assets | Minimum | |||
Trade Accounts Receivable and Secured Advances to Suppliers | |||
Useful lives for property, plant and equipment | 5 years | ||
Biological assets | Maximum | |||
Trade Accounts Receivable and Secured Advances to Suppliers | |||
Useful lives for property, plant and equipment | 7 years | ||
Buildings | Minimum | |||
Trade Accounts Receivable and Secured Advances to Suppliers | |||
Useful lives for property, plant and equipment | 10 years | ||
Buildings | Maximum | |||
Trade Accounts Receivable and Secured Advances to Suppliers | |||
Useful lives for property, plant and equipment | 50 years | ||
Machinery and equipment | Minimum | |||
Trade Accounts Receivable and Secured Advances to Suppliers | |||
Useful lives for property, plant and equipment | 7 years | ||
Machinery and equipment | Maximum | |||
Trade Accounts Receivable and Secured Advances to Suppliers | |||
Useful lives for property, plant and equipment | 25 years | ||
Furniture, fixtures and other | Minimum | |||
Trade Accounts Receivable and Secured Advances to Suppliers | |||
Useful lives for property, plant and equipment | 3 years | ||
Furniture, fixtures and other | Maximum | |||
Trade Accounts Receivable and Secured Advances to Suppliers | |||
Useful lives for property, plant and equipment | 20 years | ||
Computer software | Minimum | |||
Trade Accounts Receivable and Secured Advances to Suppliers | |||
Useful lives for property, plant and equipment | 3 years | ||
Computer software | Maximum | |||
Trade Accounts Receivable and Secured Advances to Suppliers | |||
Useful lives for property, plant and equipment | 10 years |
NATURE OF BUSINESS, BASIS OF 62
NATURE OF BUSINESS, BASIS OF PRESENTATION, AND SIGNIFICANT ACCOUNTING POLICIES - RECENTLY ADOPTED PRONOUNCMENTS (Details) - Accounting Standards Update 2015-02 $ in Millions | Jan. 01, 2016USD ($) |
ASU 2015-02 Adoption | |
Difference between the net amounts subtracted from the financial statements and the retained interest in deconsolidated subsidiaries | $ 0 |
Retained Earnings | |
ASU 2015-02 Adoption | |
Cumulative effect adjustments | $ 0 |
BUSINESS ACQUISITIONS AND DIS63
BUSINESS ACQUISITIONS AND DISPOSITIONS (Details) CAD in Millions, BRL in Millions, $ in Millions | Feb. 28, 2017USD ($)item | Oct. 04, 2016USD ($) | Aug. 30, 2016USD ($)item | Dec. 31, 2015USD ($) | Oct. 31, 2015BRL | Oct. 31, 2015USD ($) | Jul. 31, 2015CAD | Jul. 31, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($)item | Mar. 31, 2016 | Dec. 31, 2015USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Feb. 29, 2016 | Feb. 28, 2016 | Apr. 30, 2015 | Dec. 31, 2014USD ($) |
Cost of acquired entity | ||||||||||||||||||
Gain on divestiture pre-tax | $ 47 | |||||||||||||||||
Purchase price allocation | ||||||||||||||||||
Goodwill | $ 418 | 418 | $ 373 | $ 349 | ||||||||||||||
Province of Quebec, Canada | ||||||||||||||||||
Cost of acquired entity | ||||||||||||||||||
Proceeds from the sale of Canadian grain assets | $ 54 | |||||||||||||||||
Certain working capital disposed | 34 | |||||||||||||||||
Grain business in Canada | ||||||||||||||||||
Cost of acquired entity | ||||||||||||||||||
Proceeds from the sale of Canadian grain assets | 88 | |||||||||||||||||
G3 | ||||||||||||||||||
Cost of acquired entity | ||||||||||||||||||
Ownership interest (as a percent) | 25.00% | 35.00% | 51.00% | 51.00% | ||||||||||||||
Ownership percentage sold | 10.00% | |||||||||||||||||
Agribusiness | ||||||||||||||||||
Purchase price allocation | ||||||||||||||||||
Goodwill | 121 | $ 121 | $ 126 | $ 153 | ||||||||||||||
Agribusiness | G3 | ||||||||||||||||||
Cost of acquired entity | ||||||||||||||||||
Ownership interest (as a percent) | 25.00% | |||||||||||||||||
Heartland Harvest, Inc. | ||||||||||||||||||
Cost of acquired entity | ||||||||||||||||||
Number of manufacturing facilities | item | 1 | |||||||||||||||||
Walter Rau Neusser | ||||||||||||||||||
Cost of acquired entity | ||||||||||||||||||
Interest acquired (as a percent) | 62.80% | |||||||||||||||||
Purchase price | $ 33 | |||||||||||||||||
Grupo Minsa | ||||||||||||||||||
Cost of acquired entity | ||||||||||||||||||
Purchase price | $ 311 | |||||||||||||||||
Grupo Minsa | Mexico | ||||||||||||||||||
Cost of acquired entity | ||||||||||||||||||
Number of mills | item | 4 | |||||||||||||||||
Grupo Minsa | United States | ||||||||||||||||||
Cost of acquired entity | ||||||||||||||||||
Number of mills | item | 2 | |||||||||||||||||
Cargill's two oilseed processing plants | Netherlands and France | ||||||||||||||||||
Cost of acquired entity | ||||||||||||||||||
Purchase price | $ 225 | |||||||||||||||||
Number of oilseed processing plants and operations | item | 2 | |||||||||||||||||
Consideration transferred through working capital adjustment | $ 120 | |||||||||||||||||
Moinho Pacifico | Bunge Alimentos S .A. | ||||||||||||||||||
Cost of acquired entity | ||||||||||||||||||
Interest acquired (as a percent) | 100.00% | |||||||||||||||||
Purchase price | BRL 1,087 | $ 282 | ||||||||||||||||
Purchase price allocation | ||||||||||||||||||
Property, plant and equipment | $ 98 | |||||||||||||||||
Inventory | 10 | |||||||||||||||||
Other net assets and liabilities | 9 | |||||||||||||||||
Finite-lived intangible assets | 97 | |||||||||||||||||
Goodwill | $ 68 | |||||||||||||||||
WHF | ||||||||||||||||||
Cost of acquired entity | ||||||||||||||||||
Purchase price | 27 | |||||||||||||||||
Consideration transferred through working capital adjustment | 2 | |||||||||||||||||
Purchase price paid in cash | 25 | |||||||||||||||||
Purchase price allocation | ||||||||||||||||||
Property, plant and equipment | 4 | |||||||||||||||||
Inventory | 2 | |||||||||||||||||
Intangible assets | 15 | |||||||||||||||||
Goodwill | $ 6 | |||||||||||||||||
Spain biodiesel entity | ||||||||||||||||||
Cost of acquired entity | ||||||||||||||||||
Interest acquired (as a percent) | 80.00% | |||||||||||||||||
Purchase price | $ 7 | |||||||||||||||||
Purchase price allocation | ||||||||||||||||||
Property, plant and equipment | 7 | |||||||||||||||||
Goodwill | 2 | |||||||||||||||||
Non-settlement of loan and other receivables | $ 3 | |||||||||||||||||
Spain biodiesel entity | Agribusiness | ||||||||||||||||||
Cost of acquired entity | ||||||||||||||||||
Ownership interest immediately prior to acquisition (as a percent) | 20.00% | |||||||||||||||||
G3 | ||||||||||||||||||
Cost of acquired entity | ||||||||||||||||||
Contributed capital | 130 | |||||||||||||||||
G3 | SALIC | ||||||||||||||||||
Cost of acquired entity | ||||||||||||||||||
Contributed capital | 126 | |||||||||||||||||
Consideration in the form of convertible debt | $ 115 | |||||||||||||||||
CWB | G3 | ||||||||||||||||||
Cost of acquired entity | ||||||||||||||||||
Interest acquired (as a percent) | 61.00% | 61.00% | ||||||||||||||||
Purchase price | $ 266 | CAD 368 | ||||||||||||||||
Heartland Harvest, Inc. | ||||||||||||||||||
Cost of acquired entity | ||||||||||||||||||
Purchase price | $ 47 | |||||||||||||||||
Purchase price paid in cash | 40 | |||||||||||||||||
Purchase price allocation | ||||||||||||||||||
Property, plant and equipment | 18 | |||||||||||||||||
Inventory | 2 | |||||||||||||||||
Finite-lived intangible assets | 18 | |||||||||||||||||
Goodwill | 9 | |||||||||||||||||
Debt acquired | $ 7 |
BUSINESS ACQUISITIONS AND DIS64
BUSINESS ACQUISITIONS AND DISPOSITIONS - Dispositions (Details) - USD ($) $ in Millions | Nov. 30, 2016 | Mar. 30, 2016 | Feb. 01, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2016 | Feb. 29, 2016 | Feb. 28, 2016 | Jan. 31, 2016 | Apr. 30, 2015 |
Dispositions | ||||||||||
Gain on disposition of equity interests and sale of assets | $ 122 | $ 47 | ||||||||
Terminal Fronteira Norte Logstica S.A.("TFN") | Held for sale | ||||||||||
Dispositions | ||||||||||
Ownership interest sold as per agreement (as a percent) | 50.00% | |||||||||
Total consideration in cash | $ 145 | |||||||||
Gain on disposition of equity interests and sale of assets | $ 90 | |||||||||
Vietnam crush operations | ||||||||||
Dispositions | ||||||||||
Percentage of ownership after disposed | 45.00% | |||||||||
G3 | ||||||||||
Dispositions | ||||||||||
Ownership interest (as a percent) | 25.00% | 35.00% | 51.00% | 51.00% | ||||||
Promissory note amount converted | $ 106 | |||||||||
Number of shares issued for conversion of promissory note | 148,323,000 | |||||||||
SALIC Canada | G3 | ||||||||||
Dispositions | ||||||||||
Ownership interest acquired (as a percent) | 75.00% | 65.00% | 49.00% | |||||||
Bunge Canada | G3 | ||||||||||
Dispositions | ||||||||||
Ownership interest acquired (as a percent) | 25.00% | 35.00% | 51.00% | |||||||
Ownership interest sold (as a percent) | 10.00% | |||||||||
Cash proceeds from sale of ownership interest | $ 37 | |||||||||
Wilmar International Limited | Vietnam crush operations | ||||||||||
Dispositions | ||||||||||
Gain on disposition of equity interests and sale of assets | $ 30 | |||||||||
Percentage of ownership after disposed | 45.00% | |||||||||
Cash proceeds from sale of ownership interest | $ 33 | |||||||||
Quang Dung | Vietnam crush operations | ||||||||||
Dispositions | ||||||||||
Ownership interest (as a percent) | 10.00% |
TRADE STRUCTURED FINANCE PROG65
TRADE STRUCTURED FINANCE PROGRAM (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
TRADE STRUCTURED FINANCE PROGRAM | |||
Net return from activities including fair value changes | $ 57 | $ 66 | |
Weighted-average interest rate of time deposits (as a percent) | 2.36% | 2.21% | |
Total net proceeds from issuances of LCs | $ 7,191 | $ 5,563 | $ 7,058 |
Current assets: | |||
Carrying value of time deposits | 64 | 325 | |
Non-current assets: | |||
Carrying value of time deposits | 464 | ||
Current liabilities: | |||
Carrying value of letters of credit obligations and foreign exchange contracts | 528 | 325 | |
Total fair value (Level 2 measurement) of letters of credit obligations and foreign exchange contracts | 528 | 325 | |
Time deposits, LCs, foreign exchange contracts presented net on the consolidated balance sheets | |||
TRADE STRUCTURED FINANCE PROGRAM | |||
Face value of time deposits, LCs, and foreign exchange contracts | 5,732 | 3,394 | |
Level 2 | |||
Current assets: | |||
Fair value (Level 2 measurement) of time deposits | 64 | 325 | |
Non-current assets: | |||
Fair value (Level 2 measurement) of time deposits | 464 | ||
Current liabilities: | |||
Fair value (Level 2 measurement) of letters of credit obligations | 528 | 323 | |
Fair value (Level 2 measurement) of foreign exchange forward contracts-(gains) losses | 2 | ||
Total fair value (Level 2 measurement) of letters of credit obligations and foreign exchange contracts | $ 528 | $ 325 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
INVENTORIES | ||
Inventories | $ 4,773 | $ 4,466 |
Agribusiness | ||
INVENTORIES | ||
Inventories | 3,741 | 3,533 |
Readily marketable inventories at fair value | 3,593 | 3,393 |
Agribusiness | Merchandising Activities | ||
INVENTORIES | ||
Readily marketable inventories at fair value | 2,523 | 2,513 |
Edible Oil Products | ||
INVENTORIES | ||
Inventories | 404 | 356 |
Readily marketable inventories at fair value | 123 | 110 |
Milling Products | ||
INVENTORIES | ||
Inventories | 167 | 164 |
Sugar and Bioenergy | ||
INVENTORIES | ||
Inventories | 406 | 350 |
Sugar and Bioenergy | Trading and merchandising business | ||
INVENTORIES | ||
Readily marketable inventories at fair value | 139 | 163 |
Fertilizer | ||
INVENTORIES | ||
Inventories | $ 55 | $ 63 |
OTHER CURRENT ASSETS (Details)
OTHER CURRENT ASSETS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Current Assets: | |||
Unrealized gains on derivative contracts, at fair value | $ 1,327 | $ 1,456 | |
Prepaid commodity purchase contracts | 273 | 287 | |
Secured advances to suppliers, net | 601 | 521 | |
Recoverable taxes, net | 467 | 364 | |
Margin deposits | 251 | 467 | |
Marketable securities, at fair value and other short-term investments | 94 | 234 | |
Deferred purchase price receivable, at fair value | 87 | 79 | |
Prepaid expenses | 148 | 132 | |
Other | 397 | 359 | |
Total | 3,645 | 3,899 | |
Allowance on secured advance to farmers | 1 | 2 | |
Interest earned on secured advances to suppliers | $ 38 | $ 38 | $ 37 |
OTHER CURRENT ASSETS - MARKETAB
OTHER CURRENT ASSETS - MARKETABLE SECURITIES AND OTHER SHORT-TERM INVESTMENTS (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Marketable Securities and Other Short-Term Investments | ||
Total marketable securities and other short-term investments | $ 94 | $ 234 |
Available for sale securities | 22 | |
Trading | 63 | 158 |
Other short-term investments | $ 9 | |
Held-to-maturity | 76 | |
Maximum maturity period | 12 months | |
Net gain related to trading securities | $ 57 | 66 |
Foreign government securities | ||
Marketable Securities and Other Short-Term Investments | ||
Total marketable securities and other short-term investments | 28 | 61 |
Corporate debt securities | ||
Marketable Securities and Other Short-Term Investments | ||
Total marketable securities and other short-term investments | 57 | 92 |
Certificate of deposits/time deposits | ||
Marketable Securities and Other Short-Term Investments | ||
Total marketable securities and other short-term investments | 7 | 55 |
Other | ||
Marketable Securities and Other Short-Term Investments | ||
Total marketable securities and other short-term investments | $ 2 | $ 26 |
PROPERTY, PLANT AND EQUIPMENT69
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment | |||
Property, plant and equipment, gross | $ 9,237 | $ 8,279 | |
Less: accumulated depreciation and depletion | (4,138) | (3,543) | |
Total | 5,099 | 4,736 | |
Capitalized expenditures | 810 | 592 | $ 846 |
Capitalized interest on construction in progress | 9 | 7 | 6 |
Depreciation and depletion expense | 517 | 518 | $ 576 |
Land | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 356 | 339 | |
Biological assets | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 613 | 454 | |
Buildings | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 1,934 | 1,840 | |
Machinery and equipment | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 5,055 | 4,488 | |
Furniture, fixtures and other | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 514 | 437 | |
Construction in progress | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | $ 765 | $ 721 |
GOODWILL (Details)
GOODWILL (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill | |||
Goodwill, gross at beginning of period | $ 950 | $ 868 | |
Accumulated impairment losses | (532) | (532) | $ (519) |
Goodwill acquired | 13 | 149 | |
Impairment | (13) | ||
Measurement period adjustments | (76) | ||
Tax benefit on goodwill amortization | (3) | (3) | |
Foreign exchange translation | 21 | (64) | |
Goodwill, gross at end of period | 905 | 950 | |
Goodwill at end of year | 373 | 418 | 349 |
Tomato products company in Brazil | |||
Goodwill | |||
Impairment | (13) | ||
Subsidiaries | Brazil | |||
Goodwill | |||
Reduced goodwill after utilizing tax benefits attributable to the excess tax | 0 | ||
Reduced other intangible assets after utilizing tax benefits attributable to the excess tax | 0 | ||
Agribusiness | |||
Goodwill | |||
Goodwill, gross at beginning of period | 123 | 155 | |
Accumulated impairment losses | (2) | (2) | (2) |
Goodwill acquired | 2 | ||
Tax benefit on goodwill amortization | (3) | (3) | |
Foreign exchange translation | 8 | (31) | |
Goodwill, gross at end of period | 128 | 123 | |
Goodwill at end of year | 126 | 121 | 153 |
Edible Oil Products | |||
Goodwill | |||
Goodwill, gross at beginning of period | 78 | 86 | |
Accumulated impairment losses | (13) | (13) | |
Goodwill acquired | 13 | 6 | |
Impairment | (13) | ||
Foreign exchange translation | (14) | ||
Goodwill, gross at end of period | 91 | 78 | |
Goodwill at end of year | 78 | 65 | 86 |
Milling Products | |||
Goodwill | |||
Goodwill, gross at beginning of period | 234 | 111 | |
Accumulated impairment losses | (3) | (3) | (3) |
Goodwill acquired | 141 | ||
Measurement period adjustments | (76) | ||
Foreign exchange translation | 13 | (18) | |
Goodwill, gross at end of period | 171 | 234 | |
Goodwill at end of year | 168 | 231 | 108 |
Sugar and Bioenergy | |||
Goodwill | |||
Goodwill, gross at beginning of period | 514 | 514 | |
Accumulated impairment losses | (514) | (514) | (514) |
Goodwill, gross at end of period | 514 | 514 | |
Fertilizer | |||
Goodwill | |||
Goodwill, gross at beginning of period | 1 | 2 | |
Foreign exchange translation | (1) | ||
Goodwill, gross at end of period | 1 | 1 | |
Goodwill at end of year | $ 1 | $ 1 | $ 2 |
OTHER INTANGIBLE ASSETS (Detail
OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Intangible Assets, Net | |||
Finite-lived intangible assets, gross | $ 558 | $ 499 | |
Less accumulated amortization: | (222) | (173) | |
Intangible assets, net of accumulated amortization | 336 | 326 | |
Aggregate amortization expense | 31 | $ 27 | $ 32 |
Estimated future aggregate amortization expense, year one | 31 | ||
Estimated future aggregate amortization expense, year two | 31 | ||
Estimated future aggregate amortization expense, year three | 31 | ||
Estimated future aggregate amortization expense, year four | 31 | ||
Subsidiaries | Brazil | |||
Other Intangible Assets, Net | |||
Reduced goodwill after utilizing tax benefits attributable to the excess tax | 0 | ||
Reduced other intangible assets after utilizing tax benefits attributable to the excess tax | $ 0 | ||
Minimum | |||
Other Intangible Assets, Net | |||
Weighted-average amortization period | 10 years | 10 years | |
Maximum | |||
Other Intangible Assets, Net | |||
Weighted-average amortization period | 27 years | 27 years | |
Milling Products | |||
Other Intangible Assets, Net | |||
Finite-lived intangible assets acquired | $ 111 | ||
Edible Oil Products | |||
Other Intangible Assets, Net | |||
Finite-lived intangible assets acquired | $ 12 | 15 | |
Agribusiness | |||
Other Intangible Assets, Net | |||
Finite-lived intangible assets acquired | 9 | 2 | |
Trademarks/brands | |||
Other Intangible Assets, Net | |||
Finite-lived intangible assets, gross | 141 | 144 | |
Less accumulated amortization: | (64) | (53) | |
Finite-lived intangible assets acquired | 4 | ||
Licenses | |||
Other Intangible Assets, Net | |||
Finite-lived intangible assets, gross | 7 | 11 | |
Less accumulated amortization: | (5) | (6) | |
Port rights | |||
Other Intangible Assets, Net | |||
Finite-lived intangible assets, gross | 156 | 124 | |
Less accumulated amortization: | (23) | (16) | |
Finite-lived intangible assets acquired | 9 | 73 | |
Other | |||
Other Intangible Assets, Net | |||
Finite-lived intangible assets, gross | 254 | 220 | |
Less accumulated amortization: | (130) | (98) | |
Finite-lived intangible assets acquired | $ 8 | 55 | |
Customer lists | |||
Other Intangible Assets, Net | |||
Finite-lived intangible assets acquired | $ 36 |
IMPAIRMENTS - CHARGES (Details)
IMPAIRMENTS - CHARGES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Impairments | |||
Intangible asset impairment | $ 12 | ||
Property, plant and equipment impairment | 9 | $ 15 | $ 103 |
Pre-tax, impairment charges | 87 | 57 | 130 |
Impairment of other investments | 59 | ||
Impairment of investments | 14 | 5 | |
Pre-tax goodwill impairment charge | 13 | ||
Cost of goods sold | |||
Impairments | |||
Pre-tax, impairment charges | 9 | 15 | 103 |
Selling, general and administrative expenses | |||
Impairments | |||
Pre-tax, impairment charges | 14 | 18 | |
Goodwill impairment | |||
Impairments | |||
Pre-tax, impairment charges | 13 | ||
Other income (expense) | |||
Impairments | |||
Pre-tax, impairment charges | 71 | ||
Oil packaging plant in the United States | |||
Impairments | |||
Impairment of several agricultural, industrial assets and other fixed assets | 15 | ||
Tomato products company in Brazil | |||
Impairments | |||
Pre-tax goodwill impairment charge | 13 | ||
Freight shipping company in Europe | |||
Impairments | |||
Impairment of investments | 14 | ||
Biodiesel facilities in Europe | |||
Impairments | |||
Impairment of investments | 5 | ||
Agribusiness assets in Brazil | |||
Impairments | |||
Pre-tax, impairment charges | 2 | ||
Agriculture patents | |||
Impairments | |||
Intangible asset impairment | 12 | ||
Sugar and Bioenergy | |||
Impairments | |||
Pre-tax, impairment charges | 44 | ||
Impairment of other investments | 44 | ||
Sugar and Bioenergy | Sugarcane milling assets in Brazil | |||
Impairments | |||
Impairment of several agricultural, industrial assets and other fixed assets | $ 114 | ||
Agribusiness | |||
Impairments | |||
Pre-tax, impairment charges | 27 | $ 14 | |
Impairment of investments | 15 | ||
Fertilizer | |||
Impairments | |||
Pre-tax, impairment charges | 9 | ||
Fertilizer | Argentina | |||
Impairments | |||
Property, plant and equipment impairment | $ 9 |
IMPAIRMENTS - NONRECURRING FAIR
IMPAIRMENTS - NONRECURRING FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Impairment Losses | |||
Property, plant and equipment, impairment losses | $ (9) | $ (15) | $ (103) |
Intangibles | (12) | ||
Non-current assets held for sale, impairment losses | (13) | ||
Goodwill (see Note 7) | (13) | ||
Investment in affiliates and other investments, impairment losses | (59) | ||
Investment in affiliates, impairment losses | (14) | (5) | |
Level 3 | Non-recurring fair value measurements | |||
Carrying Value / Fair Value | |||
Property, plant and equipment | 7 | 12 | 165 |
Non-current assets held for sale | 33 | ||
Investment in affiliates and other investments | 13 | ||
Investment in affiliates | 3 | 17 | |
Carrying Value | |||
Carrying Value / Fair Value | |||
Property, plant and equipment | 7 | 12 | 165 |
Non-current assets held for sale | 33 | ||
Investment in affiliates and other investments | $ 13 | ||
Investment in affiliates | $ 3 | $ 17 |
INVESTMENTS IN AFFILIATES (Deta
INVESTMENTS IN AFFILIATES (Details) | Dec. 31, 2016 | Nov. 30, 2016 | Mar. 31, 2016 | Feb. 29, 2016 | Feb. 28, 2016 | Apr. 30, 2015 |
Vietnam crush operations | Wilmar International Limited | Agribusiness | ||||||
Investments in Affiliates | ||||||
Ownership interest (as a percent) | 45.00% | |||||
Vietnam crush operations | Quang Dung | ||||||
Investments in Affiliates | ||||||
Ownership interest (as a percent) | 10.00% | |||||
Vietnam crush operations | Quang Dung | Agribusiness | ||||||
Investments in Affiliates | ||||||
Ownership interest (as a percent) | 10.00% | |||||
Terminal Fronteira Norte Logstica S.A.("TFN") | Agribusiness | ||||||
Investments in Affiliates | ||||||
Ownership interest (as a percent) | 50.00% | |||||
Terminais do Graneis do Guaruja("TGG") | Agribusiness | ||||||
Investments in Affiliates | ||||||
Ownership interest (as a percent) | 57.00% | |||||
G3 | ||||||
Investments in Affiliates | ||||||
Ownership interest (as a percent) | 25.00% | 35.00% | 51.00% | 51.00% | ||
G3 | Agribusiness | ||||||
Investments in Affiliates | ||||||
Ownership interest (as a percent) | 25.00% | |||||
PT Bumiraya Investindo | Agribusiness | ||||||
Investments in Affiliates | ||||||
Ownership interest (as a percent) | 35.00% | |||||
Caiasa - Complejo Agroindustrial Angostura S.A | Agribusiness | ||||||
Investments in Affiliates | ||||||
Ownership interest (as a percent) | 33.33% | |||||
T6 port facility | Agribusiness | ||||||
Investments in Affiliates | ||||||
Ownership interest (as a percent) | 40.00% | |||||
T6 Industrial crushing facility | Agribusiness | ||||||
Investments in Affiliates | ||||||
Ownership interest (as a percent) | 50.00% | |||||
Solazyme | Sugar and Bioenergy | ||||||
Investments in Affiliates | ||||||
Ownership interest (as a percent) | 49.90% | |||||
ProMaiz | Sugar and Bioenergy | ||||||
Investments in Affiliates | ||||||
Ownership interest (as a percent) | 50.00% | |||||
Southwest Iowa Renewable Energy, LLC | Sugar and Bioenergy | ||||||
Investments in Affiliates | ||||||
Ownership interest (as a percent) | 25.00% |
OTHER NON-CURRENT ASSETS - COMP
OTHER NON-CURRENT ASSETS - COMPOSITION (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Other non-current assets | ||
Recoverable taxes, net | $ 139 | $ 133 |
Judicial deposits | 129 | 119 |
Other long-term receivables | 23 | 23 |
Income taxes receivable | 261 | 195 |
Long-term investments | 54 | 49 |
Affiliate loans receivable | 25 | 15 |
Long-term receivables from farmers in Brazil, net | 133 | 117 |
Other | 163 | 121 |
Total | 927 | 772 |
Allowance for recoverable taxes | $ 32 | $ 20 |
Minimum initial maturity of affiliate loans receivable | 1 year | |
Minimum | ||
Other non-current assets | ||
Period of realization | 5 years |
OTHER NON-CURRENT ASSETS - RECE
OTHER NON-CURRENT ASSETS - RECEIVABLES FROM FARMERS IN BRAZIL (Details) - Long-term receivables - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Recorded Investment | |||
Long-term receivables from farmers in Brazil | $ 242 | $ 217 | |
Average recorded investment in long-term receivables | 235 | 214 | |
Allowance | 109 | 100 | $ 153 |
Legal collection process | |||
Recorded Investment | |||
Long-term receivables from farmers in Brazil | 144 | 119 | |
For which an allowance has been provided: | 84 | 78 | |
For which no allowance has been provided: | 60 | 41 | |
Allowance | 78 | 69 | |
Renegotiated amounts | |||
Recorded Investment | |||
Long-term receivables from farmers in Brazil | 52 | 58 | |
For which an allowance has been provided: | 36 | 37 | |
For which no allowance has been provided: | 16 | 21 | |
Allowance | 31 | 31 | |
Other long-term receivables | |||
Recorded Investment | |||
Long-term receivables from farmers in Brazil | 46 | 40 | |
For which no allowance has been provided: | $ 46 | $ 40 |
OTHER NON-CURRENT ASSETS - ALLO
OTHER NON-CURRENT ASSETS - ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) - Long-term receivables - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for Doubtful Accounts Related to Long Term Receivables | ||
Beginning balance | $ 100 | $ 153 |
Bad debt provisions | 3 | 11 |
Recoveries | (12) | (20) |
Write-offs | (1) | (2) |
Transfers | 5 | |
Foreign exchange translation | 19 | (47) |
Ending balance | $ 109 | $ 100 |
OTHER CURRENT LIABILITIES (Deta
OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
OTHER CURRENT LIABILITIES | ||
Accrued liabilities | $ 548 | $ 688 |
Unrealized losses on derivative contracts at fair value | 1,203 | 1,471 |
Advances on sales | 395 | 371 |
Other | 330 | 233 |
Total | $ 2,476 | $ 2,763 |
INCOME TAXES - COMPONENTS (Deta
INCOME TAXES - COMPONENTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Components of Income From Operations Before Income Tax | |||
United States | $ 102 | $ 207 | $ 315 |
Non-United States | 894 | 844 | 419 |
Total | 996 | 1,051 | 734 |
Current: | |||
United States | (76) | 35 | 93 |
Non-United States | 170 | 245 | 246 |
Total | 94 | 280 | 339 |
Deferred: | |||
United States | 38 | 36 | 20 |
Non-United States | 88 | (20) | (110) |
Total | 126 | 16 | (90) |
Total income tax expense (benefit) | $ 220 | $ 296 | $ 249 |
INCOME TAXES - INCOME TAX RATE
INCOME TAXES - INCOME TAX RATE RECONCILIATION (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Income Tax (Expense) Benefit | |||
Income from operations before income tax | $ 996 | $ 1,051 | $ 734 |
Income tax rate (as a percent) | 35.00% | 35.00% | 35.00% |
Income tax expense at the U.S. Federal tax rate | $ 349 | $ 368 | $ 257 |
Adjustments to derive effective tax rate: | |||
Foreign earnings taxed at different statutory rates | (68) | (16) | (37) |
Valuation allowances | (44) | 44 | 112 |
Fiscal incentives | (34) | (41) | (41) |
Foreign exchange on monetary items | 5 | (5) | (24) |
Tax rate changes | 4 | 1 | 4 |
Non-deductible expenses | 3 | 16 | 38 |
Uncertain tax positions | 89 | (14) | 6 |
Deferred balance adjustments | (8) | 25 | |
Equity distributions | (64) | (32) | |
Foreign income taxed in Brazil | (93) | ||
Tax credits | (89) | ||
Other | 5 | 15 | 34 |
Total income tax expense (benefit) | $ 220 | $ 296 | $ 249 |
INCOME TAXES -DEFERRED TAX ASSE
INCOME TAXES -DEFERRED TAX ASSETS AND LIABILITIES (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Deferred income tax assets: | ||
Net operating loss carryforwards | $ 944 | $ 923 |
Employee benefits | 158 | 89 |
Tax credit carryforwards | 10 | 8 |
Inventories | 18 | |
Intangibles | 9 | 20 |
Accrued expenses and other | 231 | 378 |
Total deferred tax assets | 1,370 | 1,418 |
Less valuation allowances | (839) | (798) |
Deferred tax assets, net of valuation allowance | 531 | 620 |
Deferred income tax liabilities: | ||
Property, plant and equipment | 200 | 211 |
Undistributed earnings of affiliates | 13 | 11 |
Investments | 33 | 38 |
Inventories | 4 | |
Total deferred tax liabilities | 246 | 264 |
Net deferred tax assets | 285 | 356 |
Deferred tax liability related to unremitted earnings not considered indefinitely reinvested | 13 | $ 11 |
Foreign unremitted earnings indefinitely reinvested | 1,120 | |
Net operating loss carryforwards | 3,350 | |
Indefinite-lived loss carryforwards | 2,709 | |
Brazil | ||
Deferred income tax liabilities: | ||
Indefinite-lived loss carryforwards | $ 1,705 | |
Maximum percentage of annual utilization of carryforward of loss | 30.00% | |
Adjustment of deferred tax assets valuation allowance | $ 41 | |
Minimum | Brazil | ||
Deferred income tax liabilities: | ||
Period of realization loss carryforwards | 5 years |
INCOME TAXES - UNRECOGNIZED TAX
INCOME TAXES - UNRECOGNIZED TAX BENEFITS (Details) BRL in Millions, ARS in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2016USD ($) | Jun. 30, 2016subsidiary | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($)item | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2016ARS | Dec. 31, 2016BRL | Dec. 31, 2016USD ($) | Dec. 31, 2013USD ($) | |
Income Tax Examination | ||||||||||
Unrecognized tax benefit | $ 51 | $ 72 | $ 409 | $ 151 | ||||||
Interest and penalty charges in income tax (expense) benefit | $ 10 | 1 | 16 | |||||||
Accrued interest and penalties | 26 | 36 | ||||||||
Number of events considered for tax positions | item | 3 | |||||||||
Number of subsidiaries that amended tax position | subsidiary | 1 | |||||||||
Unrecognized tax benefit recorded | $ 9 | 6 | 9 | |||||||
Unrecognized tax benefits, not affecting tax rate if recognized | 24 | |||||||||
Unrecognized tax benefits offset by a valuation allowance | 213 | |||||||||
Unrecognized tax benefits, recognized by the end of 2017 | 50 | |||||||||
Cash income tax payments | $ 144 | 271 | $ 303 | |||||||
European | ||||||||||
Income Tax Examination | ||||||||||
Unrecognized tax benefit | 240 | |||||||||
Asia | ||||||||||
Income Tax Examination | ||||||||||
Unrecognized tax benefit recorded | $ 26 | $ 30 | ||||||||
Brazil | Income tax examination through year 2012 | ||||||||||
Income Tax Examination | ||||||||||
Unrecognized tax benefit | BRL 23 | 7 | ||||||||
Total proposed adjustments | BRL 4,453 | 1,366 | ||||||||
Argentina | Income tax examination 2006 to 2009 | ||||||||||
Income Tax Examination | ||||||||||
Total proposed adjustments | ARS 1,275 | 80 | ||||||||
Accrued interest | ARS 3,327 | 209 | ||||||||
Other non-current liabilities | ||||||||||
Income Tax Examination | ||||||||||
Unrecognized tax benefit | 63 | 81 | ||||||||
Current liabilities | ||||||||||
Income Tax Examination | ||||||||||
Unrecognized tax benefit | $ 1 | $ 49 |
INCOME TAXES - RECONCILIATION O
INCOME TAXES - RECONCILIATION OF UNRECOGNIZED TAX BENEFITS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Unrecognized Tax Benefits | |||
Balance at the beginning of the period | $ 51 | $ 72 | $ 151 |
Additions based on tax positions related to the current year | 9 | 6 | 9 |
Additions based on acquisitions | 2 | 10 | |
Additions based on tax positions related to prior years | 374 | 1 | 16 |
Reductions for tax positions of prior years | (14) | (12) | |
Settlement or clarification from tax authorities | (1) | (6) | (79) |
Expiration of statute of limitations | (9) | (5) | (1) |
Foreign currency translation | (17) | (13) | (12) |
Balance at the end of the period | $ 409 | $ 51 | $ 72 |
FINANCIAL INSTRUMENTS AND FAI84
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - ASSETS AND LIABILITIES AT FAIR VALUE (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Assets: | ||
Unrealized gain | $ 1,327 | $ 1,456 |
Deferred purchase price receivable (Note 17) | 87 | 79 |
Liabilities: | ||
Unrealized loss | 1,203 | 1,471 |
Other non-current assets | ||
Unrealized gains (losses) on designated and undesignated derivative contracts | ||
Unrealized gains (losses) on derivative contracts | 5 | 0 |
Other non-current liabilities | ||
Unrealized gains (losses) on designated and undesignated derivative contracts | ||
Unrealized gains (losses) on derivative contracts | 18 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | ||
Assets: | ||
Other | 18 | 68 |
Total assets | 478 | 401 |
Liabilities: | ||
Total liabilities | 379 | 490 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Undesignated derivative contracts | Foreign exchange | ||
Assets: | ||
Unrealized gain | 9 | |
Liabilities: | ||
Unrealized loss | 1 | |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Undesignated derivative contracts | Commodities | ||
Assets: | ||
Unrealized gain | 421 | 252 |
Liabilities: | ||
Unrealized loss | 356 | 402 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Undesignated derivative contracts | Freight | ||
Assets: | ||
Unrealized gain | 16 | 65 |
Liabilities: | ||
Unrealized loss | 14 | 56 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Undesignated derivative contracts | Energy | ||
Assets: | ||
Unrealized gain | 23 | 7 |
Liabilities: | ||
Unrealized loss | 9 | 31 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | ||
Assets: | ||
Readily marketable inventories (Note 4) | 3,618 | 3,421 |
Trade accounts receivable | 6 | 6 |
Deferred purchase price receivable (Note 17) | 87 | 79 |
Other | 108 | 176 |
Total assets | 4,594 | 4,584 |
Liabilities: | ||
Trade accounts payable | 478 | 399 |
Total liabilities | 1,173 | 1,326 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Designated derivative contracts | Interest rate swap | ||
Liabilities: | ||
Unrealized loss | 18 | 3 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Designated derivative contracts | Interest rate | ||
Assets: | ||
Unrealized gain | 1 | |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Designated derivative contracts | Foreign exchange | ||
Assets: | ||
Unrealized gain | 29 | 30 |
Liabilities: | ||
Unrealized loss | 15 | |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Undesignated derivative contracts | Interest rate | ||
Assets: | ||
Unrealized gain | 1 | |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Undesignated derivative contracts | Foreign exchange | ||
Assets: | ||
Unrealized gain | 312 | 176 |
Liabilities: | ||
Unrealized loss | 233 | 605 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Undesignated derivative contracts | Commodities | ||
Assets: | ||
Unrealized gain | 431 | 696 |
Liabilities: | ||
Unrealized loss | 444 | 304 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Undesignated derivative contracts | Energy | ||
Assets: | ||
Unrealized gain | 1 | |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | ||
Assets: | ||
Readily marketable inventories (Note 4) | 237 | 245 |
Total assets | 333 | 466 |
Liabilities: | ||
Trade accounts payable | 44 | 44 |
Total liabilities | 191 | 98 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Undesignated derivative contracts | Commodities | ||
Assets: | ||
Unrealized gain | 96 | 220 |
Liabilities: | ||
Unrealized loss | 144 | 52 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Undesignated derivative contracts | Freight | ||
Liabilities: | ||
Unrealized loss | 1 | |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Undesignated derivative contracts | Energy | ||
Assets: | ||
Unrealized gain | 1 | |
Liabilities: | ||
Unrealized loss | 2 | 2 |
Fair value | Assets and liabilities measured at fair value on a recurring basis | ||
Assets: | ||
Readily marketable inventories (Note 4) | 3,855 | 3,666 |
Trade accounts receivable | 6 | 6 |
Deferred purchase price receivable (Note 17) | 87 | 79 |
Other | 126 | 244 |
Total assets | 5,405 | 5,451 |
Liabilities: | ||
Trade accounts payable | 522 | 443 |
Total liabilities | 1,743 | 1,914 |
Trade accounts receivable related to certain delivered inventory accounted for at prices that fluctuate based on changes in commodity prices and for which no payments had been received | 6 | 6 |
Trade accounts payable related to certain delivered inventory accounted for at prices that fluctuate based on changes in commodity prices and for which no payments had been made | 522 | 443 |
Fair value | Assets and liabilities measured at fair value on a recurring basis | Designated derivative contracts | Interest rate swap | ||
Liabilities: | ||
Unrealized loss | 18 | 3 |
Fair value | Assets and liabilities measured at fair value on a recurring basis | Designated derivative contracts | Interest rate | ||
Assets: | ||
Unrealized gain | 1 | |
Fair value | Assets and liabilities measured at fair value on a recurring basis | Designated derivative contracts | Foreign exchange | ||
Assets: | ||
Unrealized gain | 29 | 30 |
Liabilities: | ||
Unrealized loss | 15 | |
Fair value | Assets and liabilities measured at fair value on a recurring basis | Undesignated derivative contracts | Interest rate | ||
Assets: | ||
Unrealized gain | 1 | |
Fair value | Assets and liabilities measured at fair value on a recurring basis | Undesignated derivative contracts | Foreign exchange | ||
Assets: | ||
Unrealized gain | 312 | 185 |
Liabilities: | ||
Unrealized loss | 233 | 606 |
Fair value | Assets and liabilities measured at fair value on a recurring basis | Undesignated derivative contracts | Commodities | ||
Assets: | ||
Unrealized gain | 948 | 1,168 |
Liabilities: | ||
Unrealized loss | 944 | 758 |
Fair value | Assets and liabilities measured at fair value on a recurring basis | Undesignated derivative contracts | Freight | ||
Assets: | ||
Unrealized gain | 16 | 65 |
Liabilities: | ||
Unrealized loss | 15 | 56 |
Fair value | Assets and liabilities measured at fair value on a recurring basis | Undesignated derivative contracts | Energy | ||
Assets: | ||
Unrealized gain | 24 | 8 |
Liabilities: | ||
Unrealized loss | $ 11 | $ 33 |
FINANCIAL INSTRUMENTS AND FAI85
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - RECONCILIATION FOR ASSETS AND LIABILITIES MEASURE AT FAIR VALUE USING LEVEL 3 (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) | ||
Balance at beginning of period | $ 368 | $ 220 |
Purchases | 885 | 1,318 |
Sales | (1,400) | (1,982) |
Issuances | (1) | (328) |
Settlements | 73 | 391 |
Transfers into Level 3 | 678 | 646 |
Transfers out of Level 3 | (559) | (415) |
Balance at end of period | 142 | 368 |
Cost of goods sold | ||
Reconciliation of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) | ||
Total gains and losses (realized/unrealized) included in cost of goods sold | 98 | 518 |
Changes in unrealized gains and (losses) relating to assets and liabilities | (48) | 22 |
Derivatives, Net | ||
Reconciliation of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) | ||
Balance at beginning of period | 167 | (2) |
Purchases | 1 | |
Issuances | (1) | (1) |
Settlements | (133) | (219) |
Transfers into Level 3 | (4) | 5 |
Transfers out of Level 3 | 8 | (6) |
Balance at end of period | (51) | 167 |
Derivatives, Net | Cost of goods sold | ||
Reconciliation of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) | ||
Total gains and losses (realized/unrealized) included in cost of goods sold | (88) | 389 |
Changes in unrealized gains and (losses) relating to assets and liabilities | (1) | 37 |
Readily Marketable Inventories | ||
Reconciliation of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) | ||
Balance at beginning of period | 245 | 255 |
Purchases | 1,107 | 1,329 |
Sales | (1,400) | (1,982) |
Transfers into Level 3 | 760 | 845 |
Transfers out of Level 3 | (637) | (337) |
Balance at end of period | 237 | 245 |
Readily Marketable Inventories | Cost of goods sold | ||
Reconciliation of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) | ||
Total gains and losses (realized/unrealized) included in cost of goods sold | 162 | 135 |
Changes in unrealized gains and (losses) relating to assets and liabilities | (41) | (13) |
Trade Accounts Receivable/Payable, Net | ||
Reconciliation of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) | ||
Balance at beginning of period | (44) | (33) |
Purchases | (222) | (12) |
Issuances | (327) | |
Settlements | 206 | 610 |
Transfers into Level 3 | (78) | (204) |
Transfers out of Level 3 | 70 | (72) |
Balance at end of period | (44) | (44) |
Trade Accounts Receivable/Payable, Net | Cost of goods sold | ||
Reconciliation of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) | ||
Total gains and losses (realized/unrealized) included in cost of goods sold | 24 | (6) |
Changes in unrealized gains and (losses) relating to assets and liabilities | $ 1 | $ (2) |
FINANCIAL INSTRUMENTS AND FAI86
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - DERIVATIVE POSITIONS (Details) € in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||
Feb. 29, 2016 | Dec. 31, 2016EUR (€)itemMMBTUTt | Dec. 31, 2016USD ($)item | Dec. 31, 2015USD ($) | |
Commodities | Maximum | ||||
Derivative | ||||
Maximum period of commodity contracts for sale of agricultural commodity | 1 year | |||
Designated derivative contracts | Freight | ||||
Derivative | ||||
Notional amount of derivative | $ 0 | $ 0 | ||
Undesignated derivative contracts | Interest rate swap | ||||
Derivative | ||||
Term of contract | 1 year | |||
LIBOR | Interest Rate Swap Maturity at November 24, 2020 | ||||
Derivative | ||||
Notional Amount of Hedged Obligation | $ 500 | |||
Weighted Average Rate Payable | 1.91% | |||
Weighted Average Rate Receivable | 3.50% | 3.50% | ||
Notional amount of derivative | $ 500 | |||
LIBOR | Interest Rate Swap Maturity at August 15, 2026 | ||||
Derivative | ||||
Notional Amount of Hedged Obligation | $ 550 | |||
Weighted Average Rate Payable | 1.12% | |||
Weighted Average Rate Receivable | 3.25% | 3.25% | ||
Notional amount of derivative | $ 550 | |||
EURIBOR | Interest Rate Swap Maturity at June 16, 2023 | ||||
Derivative | ||||
Notional Amount of Hedged Obligation | € | € 800 | |||
Weighted Average Rate Payable | 1.64% | |||
Weighted Average Rate Receivable | 1.85% | 1.85% | ||
Notional amount of derivative | € | € 800 | |||
Senior Notes Due 2023 | EURIBOR | ||||
Derivative | ||||
Aggregate principal amount | € | 800 | |||
Senior Notes Due 2023 | EURIBOR | Designated derivative contracts | ||||
Derivative | ||||
Notional Amount of Hedged Obligation | € | € 797 | |||
Exchange Traded | Futures | Long | ||||
Derivative | ||||
Notional amount of derivative | $ 5 | |||
Exchange Traded | Commodities | Futures | Short | ||||
Derivative | ||||
Nonmonetary notional amount of derivatives | t | 6,914,908 | |||
Exchange Traded | Commodities | Options | Short | ||||
Derivative | ||||
Nonmonetary notional amount of derivatives | t | 334,494 | |||
Exchange Traded | Natural Gas | Futures | Long | ||||
Derivative | ||||
Nonmonetary notional amount of derivatives | MMBTU | 3,930,000 | |||
Exchange Traded | Energy - other | Futures | Long | ||||
Derivative | ||||
Nonmonetary notional amount of derivatives | t | 1,777 | |||
Exchange Traded | Energy - other | Options | Short | ||||
Derivative | ||||
Nonmonetary notional amount of derivatives | t | 1,285 | |||
Exchange Traded | Energy - other | Swaps | Long | ||||
Derivative | ||||
Nonmonetary notional amount of derivatives | t | 215,100 | |||
Non-exchange Traded | Forward Rate Agreements | Short | ||||
Derivative | ||||
Notional amount of derivative | 68 | |||
Non-exchange Traded | Forward Rate Agreements | Long | ||||
Derivative | ||||
Notional amount of derivative | 979 | |||
Non-exchange Traded | Swaps | Short | ||||
Derivative | ||||
Notional amount of derivative | 500 | |||
Non-exchange Traded | Swaps | Long | ||||
Derivative | ||||
Notional amount of derivative | 569 | |||
Non-exchange Traded | Foreign exchange | Options | Short | ||||
Derivative | ||||
Delta amount of open foreign exchange positions | 126 | |||
Non-exchange Traded | Foreign exchange | Options | Long | ||||
Derivative | ||||
Delta amount of open foreign exchange positions | 268 | |||
Non-exchange Traded | Foreign exchange | Forwards | Short | ||||
Derivative | ||||
Notional amount of derivative | 8,889 | |||
Non-exchange Traded | Foreign exchange | Forwards | Long | ||||
Derivative | ||||
Notional amount of derivative | 6,126 | |||
Non-exchange Traded | Foreign exchange | Swaps | Short | ||||
Derivative | ||||
Notional amount of derivative | 129 | |||
Non-exchange Traded | Foreign exchange | Swaps | Long | ||||
Derivative | ||||
Notional amount of derivative | $ 157 | |||
Non-exchange Traded | Commodities | Forwards | Short | ||||
Derivative | ||||
Nonmonetary notional amount of derivatives | t | 35,672,883 | |||
Non-exchange Traded | Commodities | Forwards | Long | ||||
Derivative | ||||
Nonmonetary notional amount of derivatives | t | 25,960,476 | |||
Non-exchange Traded | Commodities | Swaps | Short | ||||
Derivative | ||||
Nonmonetary notional amount of derivatives | T | 3,326,874 | |||
Non-exchange Traded | Commodities | Swaps | Long | ||||
Derivative | ||||
Nonmonetary notional amount of derivatives | t | 1,442,144 | |||
Exchange Cleared | Freight | Options | Short | ||||
Derivative | ||||
Nonmonetary notional amount of derivatives | item | 467 | 467 | ||
Exchange Cleared | Freight | Forwards | Short | ||||
Derivative | ||||
Nonmonetary notional amount of derivatives | item | 3,165 | 3,165 | ||
Non Exchange Cleared | Natural Gas | Swaps | Long | ||||
Derivative | ||||
Nonmonetary notional amount of derivatives | MMBTU | 1,351,351 | |||
Non Exchange Cleared | Energy - other | Forwards | Long | ||||
Derivative | ||||
Nonmonetary notional amount of derivatives | t | 6,048,869 |
FINANCIAL INSTRUMENTS AND FAI87
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - EFFECT OF DERIVATIVE INSTRUMENTS (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Summary of Cash Flow and Net Investment Hedges | ||
Gain (loss) recognized in income which relates to the ineffective portion of the hedging relationships | $ 0 | $ 0 |
Amount of gain or loss excluded from the assessment of hedge effectiveness | 0 | 0 |
Cash Flow Hedges | ||
Summary of Cash Flow and Net Investment Hedges | ||
Notional Amount | 181 | 238 |
Gain or (Loss) Recognized in Accumulated OCI | 48 | 76 |
Gain or (Loss) Reclassified from Accumulated OCI into Income | 16 | (76) |
Cash Flow Hedges | Foreign exchange | ||
Summary of Cash Flow and Net Investment Hedges | ||
Notional Amount | 181 | 238 |
Gain or (Loss) Recognized in Accumulated OCI | 48 | 76 |
Gain(loss) expected to be reclassified from accumulated OCI into income in the next 12 months | 44 | 76 |
Cash Flow Hedges | Foreign exchange | Foreign exchange gains (losses) | ||
Summary of Cash Flow and Net Investment Hedges | ||
Gain or (Loss) Reclassified from Accumulated OCI into Income | 16 | (76) |
Net Investment Hedges | ||
Summary of Cash Flow and Net Investment Hedges | ||
Notional Amount | 881 | 1,878 |
Gain or (Loss) Recognized in Accumulated OCI | (353) | 223 |
Net Investment Hedges | Foreign exchange | ||
Summary of Cash Flow and Net Investment Hedges | ||
Notional Amount | 1,878 | |
Gain or (Loss) Recognized in Accumulated OCI | (394) | 223 |
Gain(loss) expected to be reclassified from accumulated OCI into income in the next 12 months | 0 | 0 |
Net Investment Hedges | Foreign currency denominated debt | ||
Summary of Cash Flow and Net Investment Hedges | ||
Notional Amount | 881 | |
Gain or (Loss) Recognized in Accumulated OCI | 41 | |
Designated derivative contracts | ||
Derivative Instruments, Gain (Loss) | ||
Gain or (Loss) Recognized in Income on Designated Derivative Contracts | 5 | |
Designated derivative contracts | Interest rate | Interest income/Interest expense | ||
Derivative Instruments, Gain (Loss) | ||
Gain or (Loss) Recognized in Income on Designated Derivative Contracts | 5 | |
Designated derivative contracts | Freight | ||
Summary of Cash Flow and Net Investment Hedges | ||
Notional Amount | 0 | 0 |
Undesignated derivative contracts | ||
Derivative Instruments, Gain (Loss) | ||
Gain or (Loss) Recognized in Income on Undesignated Derivative Contracts | 444 | 119 |
Undesignated derivative contracts | Interest rate | Interest income/Interest expense | ||
Derivative Instruments, Gain (Loss) | ||
Gain or (Loss) Recognized in Income on Undesignated Derivative Contracts | (4) | |
Undesignated derivative contracts | Interest rate | Other income (expenses)-net | ||
Derivative Instruments, Gain (Loss) | ||
Gain or (Loss) Recognized in Income on Undesignated Derivative Contracts | (2) | |
Undesignated derivative contracts | Foreign exchange | Foreign exchange gains (losses) | ||
Derivative Instruments, Gain (Loss) | ||
Gain or (Loss) Recognized in Income on Undesignated Derivative Contracts | 267 | (302) |
Undesignated derivative contracts | Foreign exchange | Cost of goods sold | ||
Derivative Instruments, Gain (Loss) | ||
Gain or (Loss) Recognized in Income on Undesignated Derivative Contracts | 772 | (620) |
Undesignated derivative contracts | Commodities | Cost of goods sold | ||
Derivative Instruments, Gain (Loss) | ||
Gain or (Loss) Recognized in Income on Undesignated Derivative Contracts | (618) | 1,062 |
Undesignated derivative contracts | Freight | Cost of goods sold | ||
Derivative Instruments, Gain (Loss) | ||
Gain or (Loss) Recognized in Income on Undesignated Derivative Contracts | 8 | 6 |
Undesignated derivative contracts | Energy | Cost of goods sold | ||
Derivative Instruments, Gain (Loss) | ||
Gain or (Loss) Recognized in Income on Undesignated Derivative Contracts | $ 19 | $ (25) |
SHORT-TERM DEBT AND CREDIT FA88
SHORT-TERM DEBT AND CREDIT FACILITIES (Details) - USD ($) $ in Millions | Nov. 20, 2014 | Nov. 17, 2011 | Dec. 31, 2016 | Dec. 31, 2015 |
Lines of Credit: | ||||
Short-term borrowings weighted-average interest rate (as a percent) | 8.69% | 4.92% | ||
Short-term Debt | $ 257 | $ 648 | ||
Secured, variable interest rate | ||||
Lines of Credit: | ||||
Short-term Debt | $ 25 | |||
Short-term line of credit percentage rate, variable | 2.33% | |||
Unsecured, variable interest rate | ||||
Lines of Credit: | ||||
Short-term Debt | $ 257 | $ 623 | ||
Unsecured, variable interest rate | Minimum | ||||
Lines of Credit: | ||||
Short-term line of credit percentage rate, variable | 1.27% | 1.27% | ||
Unsecured, variable interest rate | Maximum | ||||
Lines of Credit: | ||||
Short-term line of credit percentage rate, variable | 32.00% | 32.00% | ||
Unsecured Local Borrowings in High Interest Rate Jurisdictions | ||||
Lines of Credit: | ||||
Short-term borrowings weighted-average interest rate (as a percent) | 13.63% | 15.54% | ||
Short-term Debt | $ 148 | $ 137 | ||
2014 Liquidity facility | ||||
Lines of Credit: | ||||
Credit facility, borrowings outstanding | 0 | 0 | ||
Maximum borrowing capacity | $ 600 | |||
Term of credit agreement | 5 years | |||
2011 Liquidity facility | ||||
Lines of Credit: | ||||
Maximum borrowing capacity | $ 600 | |||
Term of credit agreement | 5 years | |||
Commercial paper program | ||||
Lines of Credit: | ||||
Commercial paper, outstanding issuances | 0 | 0 | ||
Bilateral short-term credit line | ||||
Lines of Credit: | ||||
Short-term Debt | 0 | $ 0 | ||
Local bank lines of credit | ||||
Lines of Credit: | ||||
Short-term Debt | $ 257 |
LONG-TERM DEBT AND CREDIT FAC89
LONG-TERM DEBT AND CREDIT FACILITIES - OUTSTANDING (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Long-term debt obligations | ||
Long-term debt, including current portion | $ 4,007 | $ 3,795 |
Less: Current portion of long-term debt | (938) | (869) |
Long-term debt (Note 16) | 3,069 | 2,926 |
Revolving credit facilities | ||
Long-term debt obligations | ||
Long-term debt, including current portion | 752 | |
Term loan due 2019-three-month Yen LIBOR plus 0.75% (Tranche A) | ||
Long-term debt obligations | ||
Long-term debt, including current portion | $ 243 | $ 237 |
Term loan due 2019-three-month Yen LIBOR plus 0.75% (Tranche A) | Yen LIBOR | ||
Long-term debt obligations | ||
Debt instrument, interest rate added to variable base rate (as a percent) | 0.75% | 0.75% |
Term loan due 2019-fixed Yen interest rate of 0.96% (Tranche B) | ||
Long-term debt obligations | ||
Fixed interest rate | 0.96% | 0.96% |
Long-term debt, including current portion | $ 51 | $ 50 |
Term loan due 2019-three-month LIBOR plus 1.30% (Tranche C) | ||
Long-term debt obligations | ||
Long-term debt, including current portion | $ 85 | $ 85 |
Term loan due 2019-three-month LIBOR plus 1.30% (Tranche C) | LIBOR | ||
Long-term debt obligations | ||
Debt instrument, interest rate added to variable base rate (as a percent) | 1.30% | 1.30% |
4.10% Senior Notes due 2016 | ||
Long-term debt obligations | ||
Interest rate (as a percent) | 4.10% | |
Long-term debt, including current portion | $ 500 | |
5.90% Senior Notes due 2017 | ||
Long-term debt obligations | ||
Interest rate (as a percent) | 5.90% | 5.90% |
Long-term debt, including current portion | $ 250 | $ 250 |
3.20% Senior Notes due 2017 | ||
Long-term debt obligations | ||
Interest rate (as a percent) | 3.20% | 3.20% |
Long-term debt, including current portion | $ 600 | $ 600 |
8.50% Senior Notes due 2019 | ||
Long-term debt obligations | ||
Interest rate (as a percent) | 8.50% | 8.50% |
Long-term debt, including current portion | $ 600 | $ 600 |
3.50% Senior Notes due 2020 | ||
Long-term debt obligations | ||
Interest rate (as a percent) | 3.50% | 3.50% |
Long-term debt, including current portion | $ 497 | $ 497 |
1.85% Senior Notes due 2023 | Euro | ||
Long-term debt obligations | ||
Interest rate (as a percent) | 1.85% | |
Long-term debt, including current portion | $ 843 | |
3.25% Senior Notes due 2026 | ||
Long-term debt obligations | ||
Interest rate (as a percent) | 3.25% | |
Long-term debt, including current portion | $ 694 | |
Consolidated investment fund debt | ||
Long-term debt obligations | ||
Long-term debt, including current portion | 0 | 53 |
Other | ||
Long-term debt obligations | ||
Long-term debt, including current portion | $ 144 | $ 171 |
LONG-TERM DEBT AND CREDIT FAC90
LONG-TERM DEBT AND CREDIT FACILITIES - FAIR VALUE (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Fair value | ||
Debt Disclosures | ||
Long-term debt, including current portion | $ 4,163 | $ 3,940 |
Carrying Value | ||
Debt Disclosures | ||
Long-term debt, including current portion | 4,007 | 3,795 |
Level 2 | Fair value | ||
Debt Disclosures | ||
Long-term debt, including current portion | $ 4,163 | 3,887 |
Level 3 | Fair value | ||
Debt Disclosures | ||
Long-term debt, including current portion | $ 53 |
LONG-TERM DEBT AND CREDIT FAC91
LONG-TERM DEBT AND CREDIT FACILITIES - ACTIVITY (Details) € in Millions, $ in Millions | Aug. 15, 2016USD ($) | Jun. 24, 2016USD ($) | Nov. 17, 2016EUR (€) | Nov. 17, 2016USD ($) | Dec. 31, 2016USD ($) | Nov. 17, 2016USD ($) | Jun. 16, 2016EUR (€) | Jun. 16, 2016USD ($) | Dec. 31, 2015USD ($) |
Debt | |||||||||
Debt instrument unused and available borrowing capacity amount | $ 5,015 | ||||||||
Long-term debt | 4,007 | $ 3,795 | |||||||
Subsidiaries | Collateralized debt obligations | |||||||||
Debt | |||||||||
Land, property, equipment and investments mortgaged, net carrying value | 63 | ||||||||
Long-term debt | $ 41 | ||||||||
Bunge Finance Europe B.V | |||||||||
Debt | |||||||||
Percentage of ownership interest | 100.00% | 100.00% | |||||||
Bunge Limited Finance Corp. | |||||||||
Debt | |||||||||
Percentage of ownership interest | 100.00% | ||||||||
Senior Notes Due August 15, 2026 | Bunge Limited Finance Corp. | |||||||||
Debt | |||||||||
Aggregate principal amount | $ 700 | ||||||||
Interest rate (as a percent) | 3.25% | ||||||||
Net proceeds from issuance of debt | $ 695 | ||||||||
Senior Notes Due 2023 | Bunge Finance Europe B.V | |||||||||
Debt | |||||||||
Aggregate principal amount | € | € 800 | ||||||||
Interest rate (as a percent) | 1.85% | 1.85% | |||||||
Net proceeds from issuance of debt | 802 | $ 887 | |||||||
Senior Notes Due 2023 | June 2016 | Bunge Finance Europe B.V | |||||||||
Debt | |||||||||
Aggregate principal amount | € 600 | $ 670 | |||||||
Senior Notes Due 2023 | November 2016 | Bunge Finance Europe B.V | |||||||||
Debt | |||||||||
Aggregate principal amount | € 200 | $ 214 | |||||||
Facilities | |||||||||
Debt | |||||||||
Term of credit agreement | 3 years | ||||||||
Facilities | Minimum | |||||||||
Debt | |||||||||
Commitment fee (as a percent) | 0.20% | ||||||||
Facilities | Minimum | LIBOR | |||||||||
Debt | |||||||||
Debt instrument, interest rate added to variable base rate (as a percent) | 0.65% | ||||||||
Facilities | Maximum | |||||||||
Debt | |||||||||
Commitment fee (as a percent) | 0.25% | ||||||||
Facilities | Maximum | LIBOR | |||||||||
Debt | |||||||||
Debt instrument, interest rate added to variable base rate (as a percent) | 1.40% | ||||||||
Facilities | Mature in June 2019 | |||||||||
Debt | |||||||||
Maximum borrowing capacity | $ 200 | ||||||||
Facilities | Mature in September 2019 | |||||||||
Debt | |||||||||
Maximum borrowing capacity | $ 500 |
LONG-TERM DEBT AND CREDIT FAC92
LONG-TERM DEBT AND CREDIT FACILITIES - PRINCIPAL MATURITIES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Principal Maturities of Long-Term Debt | |||
2,017 | $ 938 | ||
2,018 | 14 | ||
2,019 | 992 | ||
2,020 | 511 | ||
2,021 | 18 | ||
Thereafter | 1,551 | ||
Total | 4,024 | ||
Changes in long-term debt attributable to fair value hedge | 17 | ||
Interest paid, net of capitalization | $ 234 | $ 227 | $ 223 |
TRADE RECEIVABLES SECURITIZAT93
TRADE RECEIVABLES SECURITIZATION PROGRAM (Details) - Bunge Securitization B.V. - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounts Receivable Securitization Facilities Disclosures | |||
Maximum funding under trade receivables securitization program | $ 700 | ||
Receivables sold which were derecognized on Bunge balance sheet | 628 | $ 524 | |
Proceeds received in cash related to transfer of receivables | 9,197 | 10,396 | |
Cash collections from customers on receivables previously sold | 9,176 | 10,542 | |
Gross receivables sold | 9,405 | 10,601 | |
Discounts related to gross receivables sold included in SG&A | 6 | 5 | $ 7 |
Deferred purchase price included in other current assets | $ 87 | $ 79 | |
Payment term for receivables | 30 days | ||
Minimum | |||
Accounts Receivable Securitization Facilities Disclosures | |||
Percentage of receivables sold sale price whose collection is deferred | 10.00% | ||
Maximum | |||
Accounts Receivable Securitization Facilities Disclosures | |||
Percentage of receivables sold sale price whose collection is deferred | 15.00% |
EMPLOYEE BENEFIT PLANS - CHANGE
EMPLOYEE BENEFIT PLANS - CHANGES IN OBLIGATIONS, ASSETS AND FUNDED STATUS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Pension Benefits | |||
Change in benefit obligations: | |||
Benefit obligation at the beginning of year | $ 864 | $ 906 | |
Service cost | 32 | 35 | $ 30 |
Interest cost | 35 | 33 | 36 |
Plan curtailments | (3) | (6) | |
Actuarial (gain) loss, net | 31 | (54) | |
Employee contributions | 6 | 6 | |
Net transfers in (out) | 8 | ||
Plan settlements | (5) | (6) | |
Benefits paid | (21) | (30) | |
Expenses paid | (2) | (3) | |
Impact of foreign exchange rates | (4) | (17) | |
Benefit obligation at the end of year | 941 | 864 | 906 |
Change in plan assets: | |||
Fair value of plan assets at the beginning of year | 689 | 650 | |
Actual return on plan assets | 53 | (3) | |
Employer contributions | 20 | 90 | |
Employee contributions | 6 | 6 | |
Plan settlements | (4) | (6) | |
Effect of plan combinations | 1 | ||
Benefits paid | (21) | (30) | |
Expenses paid | (3) | (3) | |
Impact of foreign exchange rates | (1) | (15) | |
Fair value of plan assets at the end of year | 740 | 689 | 650 |
Funded (unfunded) status and net amounts recognized: | |||
Plan assets (less than) in excess of benefit obligation | (201) | (175) | |
Net (liability) asset recognized in the balance sheet | (201) | (175) | |
Amounts recognized in the balance sheet consist of: | |||
Non-current assets | 16 | 12 | |
Current liabilities | (5) | (5) | |
Non-current liabilities | (212) | (182) | |
Net liability recognized | (201) | (175) | |
Postretirement Benefits | |||
Change in benefit obligations: | |||
Benefit obligation at the beginning of year | 56 | 69 | |
Interest cost | 7 | 5 | 6 |
Actuarial (gain) loss, net | 8 | 8 | |
Employee contributions | 1 | 1 | |
Benefits paid | (7) | (8) | |
Impact of foreign exchange rates | 9 | (19) | |
Benefit obligation at the end of year | 74 | 56 | $ 69 |
Change in plan assets: | |||
Employer contributions | 6 | 7 | |
Employee contributions | 1 | 1 | |
Benefits paid | (7) | (8) | |
Funded (unfunded) status and net amounts recognized: | |||
Plan assets (less than) in excess of benefit obligation | (74) | (56) | |
Net (liability) asset recognized in the balance sheet | (74) | (56) | |
Amounts recognized in the balance sheet consist of: | |||
Current liabilities | (8) | (6) | |
Non-current liabilities | (66) | (50) | |
Net liability recognized | $ (74) | $ (56) |
EMPLOYEE BENEFIT PLANS - AMOUNT
EMPLOYEE BENEFIT PLANS - AMOUNTS IN ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Pension Benefits | |
EMPLOYEE BENEFIT PLANS | |
Unrecognized prior service credit | $ 6 |
Unrecognized prior service credit, net of tax | 4 |
Unrecognized actuarial loss | 190 |
Unrecognized actuarial gain (loss), net of tax | 124 |
Prior service cost and unrecognized actuarial losses included in accumulated other comprehensive income that is expected to be recognized in net periodic benefit costs in 2016 | 10 |
Prior service cost and unrecognized actuarial losses included in accumulated other comprehensive income that is expected to be recognized in net periodic benefit costs in 2016, net of tax | 7 |
Postretirement Benefits | |
EMPLOYEE BENEFIT PLANS | |
Unrecognized prior service credit | 1 |
Unrecognized prior service credit, net of tax | 1 |
Unrecognized actuarial loss | 14 |
Unrecognized actuarial gain (loss), net of tax | $ 9 |
EMPLOYEE BENEFIT PLANS - PROJEC
EMPLOYEE BENEFIT PLANS - PROJECTED AND ACCUMULATED BENEFIT OBLIGATIONS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Pension Benefits | |||
Defined Benefit Pension Plans with Projected Benefit Obligations in Excess of Fair Value of Plan Assets | |||
Projected benefit obligations | $ 941 | $ 864 | $ 906 |
Plans with projected benefit obligations | 806 | 758 | |
Excess of fair value of related plan assets | 589 | 570 | |
Accumulated benefit obligation | 850 | 786 | |
Information Relating to Aggregated Defined Benefit Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets | |||
Projected benefit obligation | 680 | 642 | |
Accumulated benefit obligation | 617 | 588 | |
Fair value of plan assets | 484 | 474 | |
Postretirement Benefits | |||
Defined Benefit Pension Plans with Projected Benefit Obligations in Excess of Fair Value of Plan Assets | |||
Projected benefit obligations | $ 74 | $ 56 | $ 69 |
Information Relating to Aggregated Defined Benefit Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets | |||
Annual rate of increase in the per capita cost of covered health care benefits assumed (as a percent) | 8.80% | 8.10% | |
Decreased annual rate of increase in the per capita cost of covered healthcare by 2038 and thereafter (as a percent) | 8.00% | 7.40% | |
One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | |||
Effect of a One-percentage point increase to total service and interest cost | $ 1 | ||
Effect of a One-percentage point increase to postretirement benefit obligation | 5 | ||
Effect of a One-percentage point decrease to postretirement benefit obligation | $ (5) |
EMPLOYEE BENEFIT PLANS - PERIOD
EMPLOYEE BENEFIT PLANS - PERIODIC BENEFIT COSTS AND ASSUMPTIONS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Pension Benefits | |||
Net Periodic Benefit Costs: | |||
Service cost | $ 32 | $ 35 | $ 30 |
Interest cost | 35 | 33 | 36 |
Expected return on plan assets | (44) | (42) | (39) |
Amortization of prior service cost | 1 | 1 | |
Amortization of net loss | 10 | 12 | 4 |
Curtailment loss | 1 | ||
Settlement loss recognized | 1 | ||
Special termination benefit | 1 | ||
Net periodic benefit costs | $ 34 | $ 41 | $ 32 |
Weighted-Average Assumptions to Determine Benefit Obligations | |||
Discount rate (as a percent) | 3.90% | 4.20% | |
Increase in future compensation levels (as a percent) | 3.20% | 3.30% | |
Weighted-Average Assumptions to Determine the Net Periodic Benefit Cost | |||
Discount rate (as a percent) | 4.20% | 3.80% | 4.90% |
Expected long-term rate of return on assets (as a percent) | 6.40% | 6.70% | 6.70% |
Increase in future compensation levels (as a percent) | 3.30% | 3.50% | 3.50% |
Postretirement Benefits | |||
Net Periodic Benefit Costs: | |||
Interest cost | $ 7 | $ 5 | $ 6 |
Amortization of net loss | (1) | ||
Curtailment loss | (2) | ||
Net periodic benefit costs | $ 7 | $ 5 | $ 3 |
Weighted-Average Assumptions to Determine Benefit Obligations | |||
Discount rate (as a percent) | 10.80% | 11.40% | |
Weighted-Average Assumptions to Determine the Net Periodic Benefit Cost | |||
Discount rate (as a percent) | 11.40% | 9.80% | 10.00% |
EMPLOYEE BENEFIT PLANS - PLAN A
EMPLOYEE BENEFIT PLANS - PLAN ASSETS AND FUTURE PAYMENTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Estimated Future Benefit Payments | |||
Employee defined contribution plans | $ 11 | $ 11 | $ 12 |
Pension Benefits | |||
Target Asset Allocation | |||
Fair value of plan assets | 740 | 689 | $ 650 |
Estimated contribution by employer, next fiscal year | 13 | ||
Estimated Future Benefit Payments | |||
2,017 | 42 | ||
2,018 | 42 | ||
2,019 | 44 | ||
2,020 | 46 | ||
2,021 | 48 | ||
2022 and onwards | 270 | ||
Pension Benefits | Fair value | |||
Target Asset Allocation | |||
Fair value of plan assets | 740 | 689 | |
Pension Benefits | Cash | Fair value | |||
Target Asset Allocation | |||
Fair value of plan assets | $ 8 | 81 | |
Pension Benefits | Equities Mutual Funds | |||
Target Asset Allocation | |||
Target asset allocation (as a percent) | 60.00% | ||
Pension Benefits | Equities Mutual Funds | Fair value | |||
Target Asset Allocation | |||
Fair value of plan assets | $ 406 | 354 | |
Pension Benefits | Fixed income securities Mutual Funds | |||
Target Asset Allocation | |||
Target asset allocation (as a percent) | 40.00% | ||
Pension Benefits | Fixed income securities Mutual Funds | Fair value | |||
Target Asset Allocation | |||
Fair value of plan assets | $ 299 | 242 | |
Pension Benefits | Others | Fair value | |||
Target Asset Allocation | |||
Fair value of plan assets | 27 | 12 | |
Pension Benefits | Level 1 | |||
Target Asset Allocation | |||
Fair value of plan assets | 573 | 467 | |
Pension Benefits | Level 1 | Cash | |||
Target Asset Allocation | |||
Fair value of plan assets | 8 | 81 | |
Pension Benefits | Level 1 | Equities Mutual Funds | |||
Target Asset Allocation | |||
Fair value of plan assets | 366 | 306 | |
Pension Benefits | Level 1 | Fixed income securities Mutual Funds | |||
Target Asset Allocation | |||
Fair value of plan assets | 199 | 80 | |
Pension Benefits | Level 2 | |||
Target Asset Allocation | |||
Fair value of plan assets | 163 | 222 | |
Pension Benefits | Level 2 | Equities Mutual Funds | |||
Target Asset Allocation | |||
Fair value of plan assets | 40 | 48 | |
Pension Benefits | Level 2 | Fixed income securities Mutual Funds | |||
Target Asset Allocation | |||
Fair value of plan assets | 100 | 162 | |
Pension Benefits | Level 2 | Others | |||
Target Asset Allocation | |||
Fair value of plan assets | 23 | $ 12 | |
Pension Benefits | Level 3 | |||
Target Asset Allocation | |||
Fair value of plan assets | 4 | ||
Pension Benefits | Level 3 | Others | |||
Target Asset Allocation | |||
Fair value of plan assets | 4 | ||
Postretirement Benefits | |||
Target Asset Allocation | |||
Estimated contribution by employer, next fiscal year | 8 | ||
Estimated Future Benefit Payments | |||
2,017 | 8 | ||
2,018 | 8 | ||
2,019 | 8 | ||
2,020 | 7 | ||
2,021 | 7 | ||
2022 and onwards | $ 30 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Tapajos | |||
Related Party Transactions | |||
Ownership interest (as a percent) | 50.00% | ||
Notes payable | $ 20 | ||
Solazyme | |||
Related Party Transactions | |||
Ownership interest (as a percent) | 49.90% | ||
Notes receivable | $ 10 | ||
Interest rate | 11.05% | ||
Bunge-SCF Grain, LLC | |||
Related Party Transactions | |||
Notes payable | $ 18 | ||
Other related party | |||
Related Party Transactions | |||
Notes receivable | 6 | $ 6 | |
Unconsolidated joint ventures | |||
Related Party Transactions | |||
Purchases of soybeans, other commodity products and received port services from certain unconsolidated ventures | 1,054 | 757 | $ 746 |
Sale of soybeans, other commodity products and provided port services to certain unconsolidated ventures | 326 | 351 | 345 |
Trade accounts receivable | 33 | 16 | |
Trade accounts payable | 46 | 25 | |
Unconsolidated joint ventures | Tolling services and administrative support | |||
Related Party Transactions | |||
Transaction amounts | $ 103 | $ 106 | $ 111 |
COMMITMENTS AND CONTINGENCIE100
COMMITMENTS AND CONTINGENCIES (Details) BRL in Millions, $ in Millions | 12 Months Ended | |||||||
Dec. 31, 2016BRLsubsidiaryitem | Dec. 31, 2016USD ($)subsidiaryitem | Dec. 31, 2015BRL | Dec. 31, 2015USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2016USD ($) | Mar. 31, 2016employee | Feb. 13, 2015BRL | |
Loss Contingencies and Guarantees | ||||||||
Loss contingency accrual, at carrying value | $ 316 | $ 350 | ||||||
Maximum potential future payments related to guarantees | 321 | |||||||
Future Minimum Payment Obligations Due Under Freight Supply Agreements | ||||||||
2,017 | 157 | |||||||
2018 and 2019 | 180 | |||||||
2020 and 2021 | 159 | |||||||
2022 and thereafter | 155 | |||||||
Total | 651 | |||||||
Freight supply agreements | ||||||||
Future Minimum Payment Obligations Due Under Freight Supply Agreements | ||||||||
Proceeds from relet agreements related to ocean freight vessels | $ 60 | |||||||
Relet proceeds expected to be received in 2017 | 10 | |||||||
Inventories | ||||||||
Future Minimum Payment Obligations Due Under Freight Supply Agreements | ||||||||
Purchase commitments | 16 | |||||||
Power supply contracts | ||||||||
Future Minimum Payment Obligations Due Under Freight Supply Agreements | ||||||||
Purchase commitments | 109 | |||||||
Construction in progress. | ||||||||
Future Minimum Payment Obligations Due Under Freight Supply Agreements | ||||||||
Purchase commitments | $ 72 | |||||||
Ocean Freight Vessels | ||||||||
Future Minimum Payment Obligations Due Under Freight Supply Agreements | ||||||||
2,017 | 114 | |||||||
2018 and 2019 | 112 | |||||||
2020 and 2021 | 91 | |||||||
2022 and thereafter | 53 | |||||||
Total | 370 | |||||||
Railroad Services | ||||||||
Future Minimum Payment Obligations Due Under Freight Supply Agreements | ||||||||
2,017 | 43 | |||||||
2018 and 2019 | 68 | |||||||
2020 and 2021 | 68 | |||||||
2022 and thereafter | 102 | |||||||
Total | 281 | |||||||
Minimum | Freight supply agreements | ||||||||
Loss Contingencies and Guarantees | ||||||||
Freight supply agreements term, ocean freight vessels | 2 months | 2 months | ||||||
Freight supply agreements term, railroad services | 5 years | 5 years | ||||||
Maximum | Freight supply agreements | ||||||||
Loss Contingencies and Guarantees | ||||||||
Freight supply agreements term, ocean freight vessels | 7 years | 7 years | ||||||
Freight supply agreements term, railroad services | 9 years | 9 years | ||||||
Brazil | ||||||||
Loss Contingencies and Guarantees | ||||||||
Number of employees under administrative proceedings | employee | 2 | |||||||
Argentina | ||||||||
Loss Contingencies and Guarantees | ||||||||
Payment of accrued export tax obligations | $ 112 | |||||||
Interest assessed on paid export tax obligations | 234 | |||||||
Non-income tax claims | ||||||||
Loss Contingencies and Guarantees | ||||||||
Loss contingency accrual, at carrying value | 163 | 170 | ||||||
Labor claims | ||||||||
Loss Contingencies and Guarantees | ||||||||
Loss contingency accrual, at carrying value | 75 | 82 | ||||||
Civil and other claims | ||||||||
Loss Contingencies and Guarantees | ||||||||
Loss contingency accrual, at carrying value | 78 | 98 | ||||||
Value added tax claims (ICMS, IPI, PIS and COFINS) | Brazil | ||||||||
Loss Contingencies and Guarantees | ||||||||
Income tax liability for ICMS incentives or benefits | 0 | |||||||
Unconstitutional ICMS tax credits | ||||||||
Loss Contingencies and Guarantees | ||||||||
Income tax liability for ICMS incentives or benefits | 120 | 144 | BRL 468 | |||||
Portion of outstanding liabilities | BRL 418 | 128 | ||||||
Unconsolidated affiliates guarantee | ||||||||
Loss Contingencies and Guarantees | ||||||||
Maximum potential future payments related to guarantees | 99 | |||||||
Obligation related to outstanding guarantees | 0 | |||||||
Residual value guarantee | ||||||||
Loss Contingencies and Guarantees | ||||||||
Maximum potential future payments related to guarantees | 222 | |||||||
Obligation related to outstanding guarantees | 4 | |||||||
Guarantee of indebtedness of subsidiaries | ||||||||
Loss Contingencies and Guarantees | ||||||||
Long-term debt including current portion, carrying value | $ 4,035 | |||||||
Tax return examination 2004 To 2011 | PIS COFINS liability | Brazil | ||||||||
Loss Contingencies and Guarantees | ||||||||
Total assessment | BRL 510 | $ 156 | ||||||
Tax return examination 1990 - 2016 | ICMS tax liability | Brazil | ||||||||
Loss Contingencies and Guarantees | ||||||||
Number of assessments | item | 1,300 | 1,300 | ||||||
Total assessment | BRL 797 | $ 245 | BRL 740 | $ 228 | ||||
Tax return examination, 2004 -2010 | PIS COFINS liability | Brazil | ||||||||
Loss Contingencies and Guarantees | ||||||||
Total assessment | $ 154 | BRL 500 | ||||||
100% owned subsidiaries | Bunge Limited Finance Corp., Bunge Finance Europe B.V. and Bunge N.A. Finance L.P. | Guarantee of indebtedness of subsidiaries | ||||||||
Loss Contingencies and Guarantees | ||||||||
Number of finance subsidiaries issuing senior notes | subsidiary | 3 | 3 | ||||||
Percentage of ownership interest | 100.00% | 100.00% |
REDEEMABLE NONCONTROLLING IN101
REDEEMABLE NONCONTROLLING INTERESTS (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2016 | Jul. 31, 2012 | |
REDEEMABLE NONCONTROLLING INTEREST | |||
Joint venture transaction costs | $ 39 | ||
Oilseed processing venture in Eastern Europe | |||
REDEEMABLE NONCONTROLLING INTEREST | |||
Interest acquired (as a percent) | 45.00% | 55.00% | |
Joint venture transaction costs | $ 39 | ||
Prio | Oilseed processing venture in Eastern Europe | |||
REDEEMABLE NONCONTROLLING INTEREST | |||
Ownership interest (as a percent) | 45.00% |
EQUITY - SHARE REPURCHASE PROGR
EQUITY - SHARE REPURCHASE PROGRAM (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | 20 Months Ended | |||
Mar. 31, 2015 | Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016 | May 31, 2015 | |
Equity Disclosures | |||||||
Repurchase of common shares for the period | $ 200 | $ 300 | $ 300 | ||||
Common Shares | |||||||
Equity Disclosures | |||||||
Authorized amount of issued and outstanding common shares available for repurchase | $ 975 | $ 500 | |||||
Repurchase of common shares (in shares) | 2,460,600 | 3,296,230 | 3,296,230 | 3,871,810 | 3,780,987 | 4,707,440 | |
Repurchase of common shares for the period | $ 200 | $ 200 | $ (300) |
EQUITY - CUMULATIVE CONVERTIBLE
EQUITY - CUMULATIVE CONVERTIBLE PERPETUAL PREFERENCE SHARES (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)item$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($) | |
Equity Disclosures | |||
Preferred Stock, Shares Outstanding | shares | 6,900,000 | 6,900,000 | |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | |
Preferred Stock, Liquidation Preference Per Share | $ 100 | $ 100 | |
Dividends on preference shares | $ | $ 34 | $ 34 | $ 34 |
Convertible perpetual preference shares | |||
Equity Disclosures | |||
Preferred Stock, Shares Outstanding | shares | 6,900,000 | ||
Convertible preference shares accrued dividends (as a percent) | 4.875% | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | ||
Preferred Stock, Liquidation Preference Per Share | 100 | ||
Accumulated unpaid dividends up to a maximum additional (in dollars per share) | $ 25 | ||
Convertible preference share, common shares issued upon conversion, at any time before mandatory conversion date | 1.1507 | ||
Conversion price, convertible preference share (in dollars per share) | $ 86.9010 | ||
Convertible preference shares, aggregate common shares issued if converted at current conversion rate | shares | 7,939,830 | ||
Target ratio of closing share price to conversion price as a condition for conversion or redemption of Convertible Notes (as a percent) | 130.00% | ||
Number of tradings that share price is over a specified threshold to trigger conversion of the notes | item | 20 | ||
The consecutive trading days which must occur to trigger the conversion of the notes | 30 days |
EQUITY - AOCI (Details)
EQUITY - AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | |||
Balance at beginning of period | $ (6,360) | ||
Total other comprehensive income (loss) | 386 | $ (2,306) | $ (1,494) |
Balance at end of period | (5,978) | (6,360) | |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | |||
Balance at beginning of period | (6,360) | (4,058) | (2,572) |
Other comprehensive income (loss) before reclassifications | 393 | (2,392) | (1,482) |
Amount reclassified from accumulated other comprehensive income | (11) | 90 | (4) |
Total other comprehensive income (loss) | 382 | (2,302) | (1,486) |
Balance at end of period | (5,978) | (6,360) | (4,058) |
Foreign Exchange Translation Adjustment | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | |||
Balance at beginning of period | (6,443) | (3,897) | (2,486) |
Other comprehensive income (loss) before reclassifications | 709 | (2,546) | (1,411) |
Total other comprehensive income (loss) | 709 | (2,546) | (1,411) |
Balance at end of period | (5,734) | (6,443) | (3,897) |
Deferred Gains (Losses) on Hedging Activities | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | |||
Balance at beginning of period | 214 | (10) | (22) |
Other comprehensive income (loss) before reclassifications | (305) | 147 | 21 |
Amount reclassified from accumulated other comprehensive income | (11) | 77 | (9) |
Total other comprehensive income (loss) | (316) | 224 | 12 |
Balance at end of period | (102) | 214 | (10) |
Pension and Other Postretirement Liability Adjustments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | |||
Balance at beginning of period | (134) | (154) | (69) |
Other comprehensive income (loss) before reclassifications | (11) | 7 | (90) |
Amount reclassified from accumulated other comprehensive income | 13 | 5 | |
Total other comprehensive income (loss) | (11) | 20 | (85) |
Balance at end of period | (145) | (134) | (154) |
Unrealized Gains (Losses) on Investments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | |||
Balance at beginning of period | 3 | 3 | 5 |
Other comprehensive income (loss) before reclassifications | (2) | ||
Total other comprehensive income (loss) | (2) | ||
Balance at end of period | $ 3 | $ 3 | $ 3 |
EARNINGS PER COMMON SHARE (Deta
EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Computation of basic and diluted earnings per common share | |||||||||||
Income from continuing operations | $ 776 | $ 755 | $ 485 | ||||||||
Net (income) loss attributable to noncontrolling interests | (22) | 1 | (2) | ||||||||
Income (loss) from continuing operations attributable to Bunge | 754 | 756 | 483 | ||||||||
Other redeemable obligations | (2) | (19) | (14) | ||||||||
Convertible preference share dividends | (34) | (34) | (34) | ||||||||
Income (loss) from discontinued operations, net of tax | $ (1) | $ 5 | $ (4) | $ (9) | $ (1) | $ 21 | $ 1 | $ 14 | (9) | 35 | 32 |
Net income (loss) available to Bunge common shareholders | $ 709 | $ 738 | $ 467 | ||||||||
Weighted-average number of common shares outstanding: | |||||||||||
Basic (in shares) | 139,475,593 | 139,444,320 | 139,406,634 | 141,062,415 | 142,466,906 | 143,361,057 | 143,726,689 | 145,164,587 | 139,845,124 | 143,671,546 | 146,209,508 |
Effect of dilutive shares: | |||||||||||
-stock options and awards (in shares) | 441,521 | 749,031 | 1,021,270 | ||||||||
-convertible preference shares (in shares) | 7,939,830 | 7,818,390 | |||||||||
Diluted (in shares) | 148,078,492 | 139,927,845 | 139,764,877 | 149,213,091 | 150,744,716 | 151,794,399 | 144,626,753 | 153,817,713 | 148,226,475 | 152,238,967 | 147,230,778 |
Basic earnings per common share: | |||||||||||
Net income (loss) from continuing operations (in dollars per share) | $ 1.89 | $ 0.80 | $ 0.81 | $ 1.64 | $ 1.33 | $ 1.45 | $ 0.50 | $ 1.61 | $ 5.13 | $ 4.90 | $ 2.98 |
Net income (loss) from discontinued operations (in dollars per share) | (0.01) | 0.03 | (0.03) | (0.07) | (0.01) | 0.14 | 0.01 | 0.10 | (0.06) | 0.24 | 0.22 |
Net income (loss) to Bunge common shareholders (in dollars per share) | 1.88 | 0.83 | 0.78 | 1.57 | 1.32 | 1.59 | 0.51 | 1.71 | 5.07 | 5.14 | 3.20 |
Diluted earnings per common share: | |||||||||||
Net income (loss) from continuing operations (in dollars per share) | 1.83 | 0.79 | 0.81 | 1.60 | 1.31 | 1.42 | 0.50 | 1.58 | 5.07 | 4.84 | 2.96 |
Net income (loss) from discontinued operations (in dollars per share) | (0.01) | 0.04 | (0.03) | (0.06) | (0.01) | 0.14 | 0.09 | (0.06) | 0.23 | 0.21 | |
Net income (loss) to Bunge common shareholders (in dollars per share) | $ 1.82 | $ 0.83 | $ 0.78 | $ 1.54 | $ 1.30 | $ 1.56 | $ 0.50 | $ 1.67 | $ 5.01 | $ 5.07 | $ 3.17 |
Joint venture transaction costs | $ 39 | ||||||||||
Oilseed processing venture in Eastern Europe | |||||||||||
Diluted earnings per common share: | |||||||||||
Interest acquired (as a percent) | 45.00% | ||||||||||
Joint venture transaction costs | $ 39 | ||||||||||
Stock options and contingently issuable restricted stock units | |||||||||||
Diluted earnings per common share: | |||||||||||
Antidilutive shares excluded from computation of EPS | 4,000,000 | 3,000,000 | 2,000,000 | ||||||||
Convertible Preference Shares | |||||||||||
Diluted earnings per common share: | |||||||||||
Antidilutive shares excluded from computation of EPS | 8,000,000 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-Based Compensation | |||
Share-based compensation expense | $ 44 | $ 46 | $ 49 |
Stock option awards | |||
Fair Value Assumptions | |||
Expected option term (in years) | 5 years 8 months 1 day | 5 years 10 months 13 days | 6 years 7 days |
Expected dividend yield (as a percent) | 3.04% | 1.67% | 1.51% |
Expected volatility (as a percent) | 26.06% | 27.47% | 40.91% |
Risk-free interest rate (as a percent) | 1.41% | 1.73% | 1.84% |
Options | |||
Outstanding at beginning of period (in shares) | 4,795,671 | ||
Granted (in shares) | 1,586,400 | ||
Exercised (in shares) | (78,189) | ||
Forfeited or expired (in shares) | (354,063) | ||
Outstanding at end of period (in shares) | 5,949,819 | 4,795,671 | |
Exercisable at end of period (in shares) | 3,635,613 | ||
Weighted- Exercise Price | |||
Outstanding balance at beginning of period (in dollars per share) | $ 75.64 | ||
Granted (in dollars per share) | 50.18 | ||
Exercised (in dollars per share) | 57.77 | ||
Forfeited or expired (in dollars per share) | 72.30 | ||
Outstanding balance at end of period (in dollars per share) | 69.35 | $ 75.64 | |
Exercisable balance at end of period (in dollars per share) | $ 75.19 | ||
Weighted-Average Remaining Contractual Term | |||
Outstanding , Weighted-Average Remaining Contractual Term | 6 years 3 months 4 days | ||
Exercisable, Weighted-Average Remaining Contractual Term | 4 years 8 months 1 day | ||
Aggregate Intrinsic Value | |||
Outstanding at end of period (in dollars) | $ 45 | ||
Exercisable at end of period (in dollars) | $ 10 | ||
Additional disclosures | |||
Weighted-average grant date fair value (in dollars per share) | $ 8.86 | $ 19.36 | $ 28.25 |
Total intrinsic value of options exercised (in dollars) | $ 1 | $ 11 | $ 34 |
Unrecognized Compensation Cost | |||
Total unrecognized compensation related to non-vested awards (in dollars) | $ 17 | ||
Period of recognition of total unrecognized compensation related to non-vested shares | 2 years | ||
Restricted stock units | |||
Unrecognized Compensation Cost | |||
Total unrecognized compensation related to non-vested awards (in dollars) | $ 42 | ||
Period of recognition of total unrecognized compensation related to non-vested shares | 2 years | ||
Restricted Stock Units | |||
Restricted stock units outstanding at beginning of period (in shares) | 1,160,628 | ||
Granted (in shares) | 866,790 | ||
Vested/issued (in shares) | (317,586) | ||
Forfeited/cancelled (in shares) | (165,567) | ||
Restricted stock units outstanding at end of period (in shares) | 1,544,265 | 1,160,628 | |
Weighted- Grant-Date Fair Value | |||
Restricted stock units outstanding at beginning of period (in dollars per share) | $ 79.16 | ||
Granted (in dollars per share) | 51.42 | $ 81.97 | $ 79.26 |
Vested/issued (in dollars per share) | 75.43 | ||
Forfeited/cancelled (in dollars per share) | 75.43 | ||
Restricted stock units outstanding at end of period (in dollars per share) | $ 64.85 | $ 79.16 | |
Restricted Stock Units, Additional Activity Information | |||
Common shares issued, net of common shares withheld to cover taxes | 235,204 | ||
Common shares issued, net of common shares withheld to cover taxes, weighted-average fair value (in dollars per share) | $ 57.91 | ||
Total fair value of restricted stock units vested (in dollars) | $ 18 | ||
Performance-based restricted stock units | |||
Restricted Stock Units | |||
Vested/issued (in shares) | (82,520) | ||
Forfeited/cancelled (in shares) | (135,948) | ||
2016 EIP and 2009 EIP | Stock option awards | |||
Additional disclosures | |||
Expiration period of award | 10 years | ||
2016 EIP and 2009 EIP | Stock option awards | Minimum | |||
Additional disclosures | |||
Vesting period | 1 year | ||
2016 EIP and 2009 EIP | Stock option awards | Maximum | |||
Additional disclosures | |||
Vesting period | 3 years | ||
2016 EIP and 2009 EIP | Restricted stock units | Minimum | |||
Additional disclosures | |||
Vesting period | 1 year | ||
2016 EIP and 2009 EIP | Restricted stock units | Maximum | |||
Additional disclosures | |||
Vesting period | 3 years | ||
2016 EIP | |||
Common Shares Reserved for Share-Based Awards | |||
Common shares reserved for grant of stock options, stock awards and other awards | 5,800,000 | ||
Common shares available for future grants | 5,766,487 | ||
2009 EIP | |||
Common Shares Reserved for Share-Based Awards | |||
Common shares reserved for grant of stock options, stock awards and other awards | 10,000,000 | ||
Available for future grant (in shares0 | 0 | ||
2007 Directors' Plan | |||
Common Shares Reserved for Share-Based Awards | |||
Common shares reserved for grant of stock options, stock awards and other awards | 600,000 | ||
Common shares available for future grants | 113,732 | ||
2007 Directors' Plan | Stock option awards | |||
Options | |||
Outstanding at end of period (in shares) | 0 | ||
Additional disclosures | |||
Expiration period of award | 10 years |
LEASE COMMITMENTS (Details)
LEASE COMMITMENTS (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)ha | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Minimum lease payments under non-cancelable operating leases | |||
2,017 | $ 152 | ||
2,018 | 115 | ||
2,019 | 99 | ||
2,020 | 72 | ||
2,021 | 59 | ||
Thereafter | 171 | ||
Total | 668 | ||
Rent expense under non-cancelable operating leases | |||
Rent expense | 213 | $ 182 | $ 259 |
Sublease income | (9) | (6) | (22) |
Net rent expense | $ 204 | 176 | 237 |
Minimum | |||
Lease Commitments | |||
Life of lease agreements | 1 year | ||
Sugarcane partnership agreements | |||
Rent expense under non-cancelable operating leases | |||
Hectares of land covered by the agricultural partnership agreement under cultivation | ha | 211,017 | ||
Payments related to agricultural partnership agreements | $ 154 | 125 | 162 |
Advances for future agricultural partnership expenses | 89 | 75 | 95 |
Agricultural partnership expense | $ 65 | $ 50 | $ 67 |
Sugarcane partnership agreements | Average | |||
Rent expense under non-cancelable operating leases | |||
Life of agricultural partnership agreements | 4 years |
SEGMENT INFORMATION - FINANCIAL
SEGMENT INFORMATION - FINANCIAL INFORMATION BY SEGMENT (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($)segment | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Segment Reporting Information | |||||||||||
Number of reportable segments | segment | 5 | ||||||||||
Operating Segment Information | |||||||||||
Net sales to external customers | $ 11,799 | $ 11,423 | $ 10,541 | $ 8,916 | $ 11,105 | $ 10,762 | $ 10,782 | $ 10,806 | $ 42,679 | $ 43,455 | $ 57,161 |
Foreign exchange gains (losses) | (8) | (8) | 47 | ||||||||
Noncontrolling interests | (22) | 1 | (2) | ||||||||
Other income (expense) - net | 12 | (18) | 17 | ||||||||
Segment EBIT | 1,143 | 1,248 | 956 | ||||||||
Discontinued operations | (1) | $ 5 | $ (4) | $ (9) | (1) | $ 21 | $ 1 | $ 14 | (9) | 35 | 32 |
Depreciation, depletion and amortization | (547) | (545) | (607) | ||||||||
Investments in affiliates | 373 | 329 | 373 | 329 | 294 | ||||||
Total assets | 19,188 | 17,914 | 19,188 | 17,914 | 21,425 | ||||||
Capital expenditures | 784 | 649 | 839 | ||||||||
Gain on sale of disposition of assets | 122 | 47 | |||||||||
Pre-tax, impairment charges | 87 | 57 | 130 | ||||||||
Other income (expenses)-net | |||||||||||
Operating Segment Information | |||||||||||
Pre-tax, impairment charges | 71 | ||||||||||
Cost of goods sold | |||||||||||
Operating Segment Information | |||||||||||
Pre-tax, impairment charges | 9 | 15 | 103 | ||||||||
Selling, general and administrative expenses | |||||||||||
Operating Segment Information | |||||||||||
Pre-tax, impairment charges | 14 | 18 | |||||||||
Goodwill impairment | |||||||||||
Operating Segment Information | |||||||||||
Pre-tax, impairment charges | 13 | ||||||||||
Agribusiness | |||||||||||
Operating Segment Information | |||||||||||
Net sales to external customers | 30,061 | 31,267 | 42,109 | ||||||||
Foreign exchange gains (losses) | (7) | 67 | 39 | ||||||||
Other income (expense) - net | 24 | (3) | 8 | ||||||||
Segment EBIT | 875 | 1,108 | 890 | ||||||||
Depreciation, depletion and amortization | (236) | (234) | (240) | ||||||||
Investments in affiliates | 325 | 249 | 325 | 249 | 178 | ||||||
Capital expenditures | 421 | 359 | 411 | ||||||||
Gain on sale of disposition of assets | 122 | 47 | |||||||||
Pre-tax, impairment charges | 27 | 14 | |||||||||
Edible Oil Products | |||||||||||
Operating Segment Information | |||||||||||
Net sales to external customers | 6,859 | 6,698 | 7,972 | ||||||||
Foreign exchange gains (losses) | (1) | (4) | |||||||||
Other income (expense) - net | 7 | 4 | 5 | ||||||||
Segment EBIT | 112 | 59 | 58 | ||||||||
Depreciation, depletion and amortization | (94) | (90) | (96) | ||||||||
Capital expenditures | 108 | 63 | 95 | ||||||||
Pre-tax, impairment charges | 28 | ||||||||||
Milling Products | |||||||||||
Operating Segment Information | |||||||||||
Net sales to external customers | 1,647 | 1,609 | 2,064 | ||||||||
Foreign exchange gains (losses) | (7) | (8) | (8) | ||||||||
Other income (expense) - net | (4) | (3) | (4) | ||||||||
Segment EBIT | 131 | 103 | 131 | ||||||||
Depreciation, depletion and amortization | (62) | (46) | (47) | ||||||||
Capital expenditures | 75 | 60 | 103 | ||||||||
Sugar and Bioenergy | |||||||||||
Operating Segment Information | |||||||||||
Net sales to external customers | 3,709 | 3,495 | 4,542 | ||||||||
Foreign exchange gains (losses) | 9 | (68) | 19 | ||||||||
Other income (expense) - net | (16) | (15) | 10 | ||||||||
Segment EBIT | (4) | (27) | (168) | ||||||||
Depreciation, depletion and amortization | (143) | (160) | (208) | ||||||||
Investments in affiliates | 48 | 80 | 48 | 80 | 116 | ||||||
Capital expenditures | 131 | 125 | 193 | ||||||||
Pre-tax, impairment charges | 44 | ||||||||||
Fertilizer | |||||||||||
Operating Segment Information | |||||||||||
Net sales to external customers | 403 | 386 | 474 | ||||||||
Foreign exchange gains (losses) | (2) | 1 | 1 | ||||||||
Other income (expense) - net | 1 | (1) | (2) | ||||||||
Segment EBIT | 29 | 5 | 45 | ||||||||
Depreciation, depletion and amortization | (12) | (15) | (16) | ||||||||
Capital expenditures | 16 | 17 | 16 | ||||||||
Pre-tax, impairment charges | 9 | ||||||||||
Operating | Agribusiness | |||||||||||
Operating Segment Information | |||||||||||
Noncontrolling interests | (21) | (9) | (23) | ||||||||
Total assets | 12,159 | 11,832 | 12,159 | 11,832 | 14,268 | ||||||
Operating | Edible Oil Products | |||||||||||
Operating Segment Information | |||||||||||
Noncontrolling interests | (13) | (8) | (9) | ||||||||
Total assets | 2,329 | 1,963 | 2,329 | 1,963 | 2,235 | ||||||
Operating | Milling Products | |||||||||||
Operating Segment Information | |||||||||||
Total assets | 1,444 | 1,343 | 1,444 | 1,343 | 1,174 | ||||||
Operating | Sugar and Bioenergy | |||||||||||
Operating Segment Information | |||||||||||
Noncontrolling interests | (1) | ||||||||||
Total assets | 2,754 | 2,318 | 2,754 | 2,318 | 3,143 | ||||||
Operating | Fertilizer | |||||||||||
Operating Segment Information | |||||||||||
Noncontrolling interests | (2) | (1) | (5) | ||||||||
Total assets | 318 | 299 | 318 | 299 | 356 | ||||||
Discontinued Operations and Unallocated | |||||||||||
Operating Segment Information | |||||||||||
Inter-segment revenues | 4,004 | 3,726 | 3,759 | ||||||||
Noncontrolling interests | 14 | 19 | 36 | ||||||||
Discontinued operations | (9) | 35 | 32 | ||||||||
Total assets | $ 184 | $ 159 | 184 | 159 | 249 | ||||||
Capital expenditures | 33 | 25 | 21 | ||||||||
Inter-segment Eliminations | Agribusiness | |||||||||||
Operating Segment Information | |||||||||||
Inter-segment revenues | 3,867 | 3,499 | 3,510 | ||||||||
Inter-segment Eliminations | Edible Oil Products | |||||||||||
Operating Segment Information | |||||||||||
Inter-segment revenues | 115 | 178 | 161 | ||||||||
Inter-segment Eliminations | Milling Products | |||||||||||
Operating Segment Information | |||||||||||
Inter-segment revenues | 9 | 37 | $ 88 | ||||||||
Inter-segment Eliminations | Sugar and Bioenergy | |||||||||||
Operating Segment Information | |||||||||||
Inter-segment revenues | $ 13 | $ 12 |
SEGMENT INFORMATION - NET INCOM
SEGMENT INFORMATION - NET INCOME TO SEGMENT EBIT (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of total segment EBIT: | |||||||||||
Total segment EBIT from continuing operations | $ 1,143 | $ 1,248 | $ 956 | ||||||||
Interest income | 51 | 43 | 87 | ||||||||
Interest expense | (234) | (258) | (347) | ||||||||
Income tax (expense) benefit | (220) | (296) | (249) | ||||||||
Income (loss) from discontinued operations, net of tax | $ (1) | $ 5 | $ (4) | $ (9) | $ (1) | $ 21 | $ 1 | $ 14 | (9) | 35 | 32 |
Noncontrolling interests' share of interest and tax | 14 | 19 | 36 | ||||||||
Net income (loss) attributable to Bunge | $ 271 | $ 118 | $ 121 | $ 235 | $ 203 | $ 239 | $ 86 | $ 263 | $ 745 | $ 791 | $ 515 |
SEGMENT INFORMATION - SALES BY
SEGMENT INFORMATION - SALES BY PRODUCT GROUP (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
External Customers Net Sales, Products and Services | |||||||||||
Net sales | $ 11,799 | $ 11,423 | $ 10,541 | $ 8,916 | $ 11,105 | $ 10,762 | $ 10,782 | $ 10,806 | $ 42,679 | $ 43,455 | $ 57,161 |
Agricultural Commodities Products | |||||||||||
External Customers Net Sales, Products and Services | |||||||||||
Net sales | 30,061 | 31,267 | 42,109 | ||||||||
Edible Oil Products | |||||||||||
External Customers Net Sales, Products and Services | |||||||||||
Net sales | 6,859 | 6,698 | 7,972 | ||||||||
Wheat Milling Products | |||||||||||
External Customers Net Sales, Products and Services | |||||||||||
Net sales | 1,079 | 1,054 | 1,462 | ||||||||
Corn Milling Products | |||||||||||
External Customers Net Sales, Products and Services | |||||||||||
Net sales | 568 | 555 | 602 | ||||||||
Sugar and Bioenergy Products | |||||||||||
External Customers Net Sales, Products and Services | |||||||||||
Net sales | 3,709 | 3,495 | 4,542 | ||||||||
Fertilizer Products | |||||||||||
External Customers Net Sales, Products and Services | |||||||||||
Net sales | $ 403 | $ 386 | $ 474 |
SEGMENT INFORMATION - GEOGRAPHI
SEGMENT INFORMATION - GEOGRAPHIC AREA INFORMATION (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
External Customers | |||||||||||
Net sales to external customers | $ 11,799 | $ 11,423 | $ 10,541 | $ 8,916 | $ 11,105 | $ 10,762 | $ 10,782 | $ 10,806 | $ 42,679 | $ 43,455 | $ 57,161 |
Long-lived Assets | |||||||||||
Long-lived assets | 6,200 | 5,829 | 6,200 | 5,829 | 6,570 | ||||||
Europe | |||||||||||
External Customers | |||||||||||
Net sales to external customers | 14,238 | 14,346 | 18,234 | ||||||||
Long-lived Assets | |||||||||||
Long-lived assets | 1,107 | 1,074 | 1,107 | 1,074 | 1,181 | ||||||
United States | |||||||||||
External Customers | |||||||||||
Net sales to external customers | 10,239 | 10,256 | 12,199 | ||||||||
Long-lived Assets | |||||||||||
Long-lived assets | 1,249 | 1,130 | 1,249 | 1,130 | 1,022 | ||||||
Brazil | |||||||||||
External Customers | |||||||||||
Net sales to external customers | 6,604 | 6,117 | 10,422 | ||||||||
Long-lived Assets | |||||||||||
Long-lived assets | 2,452 | 2,086 | 2,452 | 2,086 | 2,711 | ||||||
Asia-Pacific | |||||||||||
External Customers | |||||||||||
Net sales to external customers | 7,843 | 8,680 | 10,932 | ||||||||
Long-lived Assets | |||||||||||
Long-lived assets | 505 | 558 | 505 | 558 | 572 | ||||||
Argentina | |||||||||||
External Customers | |||||||||||
Net sales to external customers | 1,406 | 1,490 | 1,857 | ||||||||
Long-lived Assets | |||||||||||
Long-lived assets | 189 | 204 | 189 | 204 | 257 | ||||||
Canada | |||||||||||
External Customers | |||||||||||
Net sales to external customers | 1,120 | 1,245 | 1,784 | ||||||||
Long-lived Assets | |||||||||||
Long-lived assets | 378 | 400 | 378 | 400 | 347 | ||||||
Rest of world | |||||||||||
External Customers | |||||||||||
Net sales to external customers | 1,229 | 1,321 | 1,733 | ||||||||
Long-lived Assets | |||||||||||
Long-lived assets | $ 320 | $ 377 | $ 320 | $ 377 | $ 480 |
QUARTERLY FINANCIAL INFORMAT112
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | |||||||||||
Net sales | $ 11,799 | $ 11,423 | $ 10,541 | $ 8,916 | $ 11,105 | $ 10,762 | $ 10,782 | $ 10,806 | $ 42,679 | $ 43,455 | $ 57,161 |
Gross profit | 704 | 556 | 530 | 620 | 703 | 745 | 535 | 710 | 2,410 | 2,693 | 2,621 |
Income (loss) from discontinued operations, net of tax | (1) | 5 | (4) | (9) | (1) | 21 | 1 | 14 | (9) | 35 | 32 |
Net income (loss) | 285 | 130 | 120 | 232 | 203 | 234 | 93 | 260 | 767 | 790 | 517 |
Net income (loss) attributable to Bunge | $ 271 | $ 118 | $ 121 | $ 235 | $ 203 | $ 239 | $ 86 | $ 263 | $ 745 | $ 791 | $ 515 |
Earnings per common share-basic | |||||||||||
Net income (loss) (in dollars per share) | $ 2.04 | $ 0.93 | $ 0.86 | $ 1.64 | $ 1.42 | $ 1.63 | $ 0.65 | $ 1.79 | $ 5.48 | $ 5.50 | |
Net income (loss) from continuing operations (in dollars per share) | 1.89 | 0.80 | 0.81 | 1.64 | 1.33 | 1.45 | 0.50 | 1.61 | 5.13 | 4.90 | $ 2.98 |
Net income (loss) from discontinued operations (in dollars per share) | (0.01) | 0.03 | (0.03) | (0.07) | (0.01) | 0.14 | 0.01 | 0.10 | (0.06) | 0.24 | 0.22 |
Net income (loss) to Bunge common shareholders (in dollars per share) | 1.88 | 0.83 | 0.78 | 1.57 | 1.32 | 1.59 | 0.51 | 1.71 | 5.07 | 5.14 | 3.20 |
Earnings per common share-diluted | |||||||||||
Net income (loss) (in dollars per share) | 1.92 | 0.93 | 0.86 | 1.55 | 1.35 | 1.54 | 0.64 | 1.69 | 5.17 | 5.19 | |
Net income (loss) from continuing operations (in dollars per share) | 1.83 | 0.79 | 0.81 | 1.60 | 1.31 | 1.42 | 0.50 | 1.58 | 5.07 | 4.84 | 2.96 |
Net income (loss) from discontinued operations (in dollars per share) | (0.01) | 0.04 | (0.03) | (0.06) | (0.01) | 0.14 | 0.09 | (0.06) | 0.23 | 0.21 | |
Net income (loss) to Bunge common shareholders (in dollars per share) | $ 1.82 | $ 0.83 | $ 0.78 | $ 1.54 | $ 1.30 | $ 1.56 | $ 0.50 | $ 1.67 | $ 5.01 | $ 5.07 | $ 3.17 |
Weighted-average number of shares: | |||||||||||
Weighted-average number of shares outstanding-basic | 139,475,593 | 139,444,320 | 139,406,634 | 141,062,415 | 142,466,906 | 143,361,057 | 143,726,689 | 145,164,587 | 139,845,124 | 143,671,546 | 146,209,508 |
Weighted-average number of shares outstanding-diluted | 148,078,492 | 139,927,845 | 139,764,877 | 149,213,091 | 150,744,716 | 151,794,399 | 144,626,753 | 153,817,713 | 148,226,475 | 152,238,967 | 147,230,778 |
Market Price: | |||||||||||
High (in dollars per share) | $ 73.61 | $ 66.21 | $ 67.77 | $ 66.82 | $ 79.41 | $ 89.86 | $ 92.85 | $ 92.31 | |||
Low (in dollars per share) | $ 58.64 | $ 57.76 | $ 55.62 | $ 47.79 | $ 61.81 | $ 68.94 | $ 83.16 | $ 78.50 |
SCHEDULE II-VALUATION AND QU113
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Allowances for doubtful accounts | |||
Movement in Valuation Allowances and Reserves | |||
Balance at beginning of period | $ 210 | $ 247 | $ 283 |
Charged to costs and expenses | 45 | 64 | 71 |
Charged to other accounts | 15 | (47) | (23) |
Deductions from reserves | (58) | (54) | (84) |
Balance at end of period | 212 | 210 | 247 |
Allowances for secured advances to suppliers | |||
Movement in Valuation Allowances and Reserves | |||
Balance at beginning of period | 42 | 61 | 75 |
Charged to costs and expenses | 1 | 11 | 9 |
Charged to other accounts | 9 | (21) | (7) |
Deductions from reserves | (2) | (9) | (16) |
Balance at end of period | 50 | 42 | 61 |
Allowances for recoverable taxes | |||
Movement in Valuation Allowances and Reserves | |||
Balance at beginning of period | 32 | 43 | 70 |
Charged to costs and expenses | 162 | 7 | 7 |
Charged to other accounts | 1 | (16) | (14) |
Deductions from reserves | (160) | (2) | (20) |
Balance at end of period | 35 | 32 | 43 |
Income tax valuation allowances | |||
Movement in Valuation Allowances and Reserves | |||
Balance at beginning of period | 798 | 1,078 | 1,048 |
Charged to costs and expenses | (44) | 44 | 76 |
Charged to other accounts | 85 | (324) | (46) |
Balance at end of period | $ 839 | $ 798 | $ 1,078 |