Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 31, 2014 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'Bunge LTD | ' |
Entity Central Index Key | '0001144519 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 145,195,396 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ' | ' | ' | ' |
Net sales | $13,676 | $14,701 | $43,930 | $44,972 |
Cost of goods sold | -12,957 | -14,013 | -42,004 | -43,022 |
Gross profit | 719 | 688 | 1,926 | 1,950 |
Selling, general and administrative expenses | -403 | -382 | -1,161 | -1,116 |
Interest income | 19 | 27 | 71 | 47 |
Interest expense | -70 | -103 | -225 | -264 |
Foreign exchange gains (losses) | 23 | 49 | 59 | 7 |
Other income (expense) - net | -2 | 16 | 5 | 61 |
Income (loss) from continuing operations before income tax | 286 | 295 | 675 | 685 |
Income tax (expense) benefit | -9 | -591 | -150 | -702 |
Income (loss) from continuing operations | 277 | -296 | 525 | -17 |
Income (loss) from discontinued operations, net of tax (including a net gain on disposal of $112 million in 2013) | 27 | 103 | 37 | 94 |
Net income (loss) | 304 | -193 | 562 | 77 |
Net loss (income) attributable to noncontrolling interests | -10 | 45 | 7 | 91 |
Net income (loss) attributable to Bunge | 294 | -148 | 569 | 168 |
Convertible preference share dividends and other obligations | -10 | -17 | -40 | -53 |
Net income (loss) available to Bunge common shareholders | $284 | ($165) | $529 | $115 |
Earnings per common share-basic (Note 16) | ' | ' | ' | ' |
Net income (loss) from continuing operations (in dollars per share) | $1.77 | ($1.82) | $3.36 | $0.14 |
Net income (loss) from discontinued operations (in dollars per share) | $0.19 | $0.69 | $0.25 | $0.64 |
Net income (loss) to Bunge common shareholders (in dollars per share) | $1.96 | ($1.13) | $3.61 | $0.78 |
Earnings per common share-diluted (Note 16) | ' | ' | ' | ' |
Net income (loss) from continuing operations (in dollars per share) | $1.73 | ($1.82) | $3.34 | $0.14 |
Net income (loss) from discontinued operations (in dollars per share) | $0.17 | $0.69 | $0.24 | $0.64 |
Net income (loss) to Bunge common shareholders (in dollars per share) | $1.90 | ($1.13) | $3.58 | $0.78 |
Dividends declared per common share (in dollars per share) | $0.34 | $0.30 | $0.98 | $0.87 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ' | ' |
Pre-tax gain on disposal | $112 | $112 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ' | ' | ' | ' |
Net income (loss) | $304 | ($193) | $562 | $77 |
Other comprehensive income (loss): | ' | ' | ' | ' |
Foreign exchange translation adjustment | -1,025 | -77 | -667 | -835 |
Unrealized gains (losses) on designated cash flow and net investment hedges, net of tax (expense) benefit of nil and nil in 2014 and nil and $6 in 2013 | 29 | -28 | 13 | -2 |
Unrealized gains (losses) on investments, net of tax (expense) benefit of $1 and $1 in 2014, nil and $(2) in 2013 | -2 | ' | -2 | 4 |
Reclassification of realized net losses (gains) to net income, net of tax expense (benefit) of nil and nil in 2014, $(6) and $(5) in 2013 | -7 | -37 | -11 | -40 |
Pension adjustment, net of tax (expense) benefit of nil and nil in 2014, nil and $(1) in 2013 | ' | -1 | -1 | 1 |
Total other comprehensive income (loss) | -1,005 | -143 | -668 | -872 |
Total comprehensive income (loss) | -701 | -336 | -106 | -795 |
Less: comprehensive (income) loss attributable to noncontrolling interest | 5 | 37 | 3 | 83 |
Total comprehensive income (loss) attributable to Bunge | ($696) | ($299) | ($103) | ($712) |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ' | ' | ' | ' |
Unrealized gains (losses) designated cash flow and net investment hedges, tax (expense) benefit | $0 | $0 | $0 | $6 |
Unrealized gains (losses) on investments, tax (expense) benefit | 1 | 0 | 1 | -2 |
Reclassification of realized net losses (gains) to net income, tax expense (benefit) | 0 | -6 | 0 | -5 |
Pension adjustment, tax (expense) benefit | $0 | $0 | $0 | ($1) |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $357 | $742 |
Time deposits under trade structured finance program (Note 4) | 2,915 | 4,470 |
Trade accounts receivable (less allowances of $137 and $123) (Note 12) | 2,442 | 2,144 |
Inventories (Note 5) | 4,987 | 5,796 |
Deferred income taxes | 373 | 183 |
Other current assets (Note 6) | 4,543 | 4,437 |
Total current assets | 15,617 | 17,772 |
Property, plant and equipment, net | 5,919 | 6,075 |
Goodwill | 372 | 392 |
Other intangible assets, net | 284 | 326 |
Investments in affiliates | 287 | 241 |
Deferred income taxes | 350 | 564 |
Other non-current assets (Note 7) | 1,316 | 1,411 |
Total assets | 24,145 | 26,781 |
Current liabilities: | ' | ' |
Short-term debt | 736 | 703 |
Current portion of long-term debt (Note 11) | 514 | 762 |
Letter of credit obligations under trade structured finance program (Note 4) | 2,915 | 4,470 |
Trade accounts payable | 3,831 | 3,522 |
Deferred income taxes | 74 | 60 |
Other current liabilities (Note 9) | 2,859 | 3,018 |
Total current liabilities | 10,929 | 12,535 |
Long-term debt (Note 11) | 2,720 | 3,179 |
Deferred income taxes | 210 | 185 |
Other non-current liabilities | 686 | 757 |
Commitments and contingencies (Note 14) | ' | ' |
Redeemable noncontrolling interests | 38 | 37 |
Equity (Note 15): | ' | ' |
Convertible perpetual preference shares, par value $.01; authorized, issued and outstanding: 2014 and 2013 - 6,900,000 shares (liquidation preference $100 per share) | 690 | 690 |
Common shares, par value $.01; authorized - 400,000,000 shares; issued and outstanding:2014 - 145,053,724 shares, 2013 - 147,796,784 shares | 1 | 1 |
Additional paid-in capital | 5,000 | 4,967 |
Retained earnings | 7,292 | 6,891 |
Accumulated other comprehensive income (loss) (Note 15) | -3,244 | -2,572 |
Treasury shares, at cost - 2014 - 5,714,273 and 2013 - 1,933,286 shares, respectively | -420 | -120 |
Total Bunge shareholders' equity | 9,319 | 9,857 |
Noncontrolling interests | 243 | 231 |
Total equity | 9,562 | 10,088 |
Total liabilities and equity | $24,145 | $26,781 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
CONDENSED CONSOLIDATED BALANCE SHEETS | ' | ' |
Trade accounts receivable, allowances (in dollars) | $137 | $123 |
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 | 145,053,724 | 147,796,784 |
Common shares, outstanding | 145,053,724 | 147,796,784 |
Treasury shares | 5,714,273 | 1,933,286 |
CONDENSED_CONSOLIDATED_STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
OPERATING ACTIVITIES | ' | ' |
Net income | $562 | $77 |
Adjustments to reconcile net income to cash provided by (used for) operating activities: | ' | ' |
Gain on sale of Brazilian fertilizer distribution business | ' | -148 |
Foreign exchange loss (gain) on debt | -61 | 43 |
Bad debt expense | 22 | 19 |
Depreciation, depletion and amortization | 448 | 423 |
Stock-based compensation expense | 36 | 34 |
Deferred income tax expense (benefit) | -17 | 533 |
Other, net | -82 | 22 |
Changes in operating assets and liabilities, excluding the effects of acquisitions: | ' | ' |
Trade accounts receivable | -424 | 35 |
Inventories | 590 | 182 |
Prepayments and advances to suppliers | -4 | -442 |
Trade accounts payable and accrued liabilities | 439 | 286 |
Net unrealized gain/loss on derivative contracts | -296 | -119 |
Margin deposits | 86 | -100 |
Other, net | -183 | 53 |
Cash provided by (used for) operating activities | 1,116 | 898 |
INVESTING ACTIVITIES | ' | ' |
Payments made for capital expenditures | -515 | -720 |
Acquisitions of businesses (net of cash acquired) | -14 | -11 |
Proceeds from the sale of Brazilian fertilizer distribution business | ' | 750 |
Proceeds from investments | 261 | 72 |
Payments for investments | -140 | -43 |
Payments for investments in affiliates | -40 | -26 |
Other, net | -5 | 120 |
Cash provided by (used for) investing activities | -453 | 142 |
FINANCING ACTIVITIES | ' | ' |
Net change in short-term debt with maturities of 90 days or less | -58 | 106 |
Proceeds from short-term debt with maturities greater than 90 days | 802 | 755 |
Repayments of short-term debt with maturities greater than 90 days | -630 | -630 |
Proceeds from long-term debt | 7,492 | 4,784 |
Repayments of long-term debt | -8,191 | -4,933 |
Proceeds from sale of common shares | 34 | 26 |
Repurchases of common shares | -300 | ' |
Dividends paid | -162 | -149 |
Capital contributions to noncontrolling interest | ' | -50 |
Other, net | -18 | -4 |
Cash provided by (used for) financing activities | -1,031 | -95 |
Effect of exchange rate changes on cash and cash equivalents | -17 | -32 |
Net increase (decrease) in cash and cash equivalents | -385 | 913 |
Cash and cash equivalents, beginning of period | 742 | 569 |
Cash and cash equivalents, end of period | $357 | $1,482 |
CONDENSED_CONSOLIDATED_STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS (USD $) | Total | Convertible Preference Shares | Common Shares | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Shares | Noncontrolling Interest | Redeemable Non-controlling Interest |
In Millions, except Share data, unless otherwise specified | |||||||||
Balance at Jun. 07, 2010 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase of common shares | ' | ' | ' | ' | ' | ' | ($774) | ' | ' |
Repurchase of common shares (in shares) | ' | ' | ' | ' | ' | ' | -12,428,846 | ' | ' |
Balance at Sep. 30, 2014 | ' | 690 | ' | ' | ' | ' | -420 | ' | ' |
Balance (in shares) at Sep. 30, 2014 | ' | 6,900,000 | ' | ' | ' | ' | ' | ' | ' |
Balance at Dec. 31, 2012 | ' | ' | ' | ' | ' | ' | ' | ' | 38 |
Balance at Dec. 31, 2012 | 11,255 | 690 | 1 | 4,909 | 6,792 | -1,410 | -120 | 393 | ' |
Balance (in shares) at Dec. 31, 2012 | ' | 6,900,000 | 146,348,499 | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 77 | ' | ' | ' | 168 | ' | ' | -91 | ' |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -33 |
Accretion of noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | ' | 28 |
Accretion of noncontrolling interests | -28 | ' | ' | -28 | ' | ' | ' | ' | ' |
Other comprehensive income (loss) | -872 | ' | ' | ' | ' | -880 | ' | 8 | ' |
Dividends on common shares | -128 | ' | ' | ' | -128 | ' | ' | ' | ' |
Dividends on preference shares | -25 | ' | ' | ' | -25 | ' | ' | ' | ' |
Dividends to noncontrolling interests on subsidiary common stock | -3 | ' | ' | ' | ' | ' | ' | -3 | ' |
Return of capital to noncontrolling interests | -50 | ' | ' | -8 | ' | ' | ' | -42 | ' |
Reversal of uncertain tax positions | 12 | ' | ' | 12 | ' | ' | ' | ' | ' |
Stock-based compensation expense | 34 | ' | ' | 34 | ' | ' | ' | ' | ' |
Issuance of common shares | 26 | ' | ' | 26 | ' | ' | ' | ' | ' |
Issuance of common shares (in shares) | ' | ' | 1,144,515 | ' | ' | ' | ' | ' | ' |
Balance at Sep. 30, 2013 | ' | ' | ' | ' | ' | ' | ' | ' | 33 |
Balance at Sep. 30, 2013 | 10,298 | 690 | 1 | 4,945 | 6,807 | -2,290 | -120 | 265 | ' |
Balance (in shares) at Sep. 30, 2013 | ' | 6,900,000 | 147,493,014 | ' | ' | ' | ' | ' | ' |
Balance at Dec. 31, 2013 | 37 | ' | ' | ' | ' | ' | ' | ' | 37 |
Balance at Dec. 31, 2013 | 10,088 | 690 | 1 | 4,967 | 6,891 | -2,572 | -120 | 231 | ' |
Balance (in shares) at Dec. 31, 2013 | ' | 6,900,000 | 147,796,784 | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 562 | ' | ' | ' | 569 | ' | ' | -7 | ' |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -11 |
Accretion of noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | ' | 15 |
Accretion of noncontrolling interests | -15 | ' | ' | -15 | ' | ' | ' | ' | ' |
Other comprehensive income (loss) | -668 | ' | ' | ' | ' | -672 | ' | 4 | -3 |
Dividends on common shares | -143 | ' | ' | ' | -143 | ' | ' | ' | ' |
Dividends on preference shares | -25 | ' | ' | ' | -25 | ' | ' | ' | ' |
Dividends to noncontrolling interests on subsidiary common stock | -8 | ' | ' | ' | ' | ' | ' | -8 | ' |
Acquisition of noncontrolling interests | ' | ' | ' | -23 | ' | ' | ' | 23 | ' |
Stock-based compensation expense | 36 | ' | ' | 36 | ' | ' | ' | ' | ' |
Repurchase of common shares | -300 | ' | -300 | ' | ' | ' | -300 | ' | ' |
Repurchase of common shares (in shares) | ' | ' | -3,780,987 | ' | ' | ' | ' | ' | ' |
Issuance of common shares | 35 | ' | ' | 35 | ' | ' | ' | ' | ' |
Issuance of common shares (in shares) | ' | ' | 1,037,927 | ' | ' | ' | ' | ' | ' |
Balance at Sep. 30, 2014 | 38 | ' | ' | ' | ' | ' | ' | ' | 38 |
Balance at Sep. 30, 2014 | $9,562 | $690 | $1 | $5,000 | $7,292 | ($3,244) | ($420) | $243 | ' |
Balance (in shares) at Sep. 30, 2014 | ' | 6,900,000 | 145,053,724 | ' | ' | ' | ' | ' | ' |
BASIS_OF_PRESENTATION_AND_PRIN
BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION | 9 Months Ended |
Sep. 30, 2014 | |
BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION | ' |
BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION | ' |
1. BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION | |
The accompanying unaudited condensed consolidated financial statements include the accounts of Bunge Limited (Bunge), its subsidiaries and variable interest entities (VIEs) in which Bunge is considered to be the primary beneficiary, and as a result, include the assets, liabilities, revenues and expenses of all entities over which Bunge exercises control. The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X under the Securities Exchange Act of 1934, as amended (Exchange Act). Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to Securities and Exchange Commission (SEC) rules. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation have been included. The condensed consolidated balance sheet at December 31, 2013 has been derived from Bunge’s audited consolidated financial statements at that date. Operating results for the nine months ended September 30, 2014 are not necessarily indicative of the results to be expected for the year ending December 31, 2014. The financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2013, forming part of Bunge’s 2013 Annual Report on Form 10-K filed with the SEC on February 28, 2014 | |
Discontinued Operations — On August 8, 2013, Yara International ASA (Yara) acquired Bunge’s Brazilian fertilizer distribution business, including blending facilities, brands and warehouses. Bunge received cash proceeds of the Brazilian real equivalent of $750 million upon closing the transaction, resulting in recognition of a gain of $148 million ($112 million net of tax) which is included in discontinued operations in Bunge’s condensed consolidated statements of income for the three and nine months ended September 30, 2013. | |
ACCOUNTING_PRONOUNCEMENTS
ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2014 | |
ACCOUNTING PRONOUNCEMENTS | ' |
ACCOUNTING PRONOUNCEMENTS | ' |
2. ACCOUNTING PRONOUNCEMENTS | |
Adoption of Accounting Pronouncements — In July 2013, the Financial Accounting Standards Board (FASB) issued guidance in ASC (Topic 740) Income Taxes. Topic 740 provides guidance regarding the presentation of an unrecognized tax benefit when a net operating loss carry forward, a similar tax loss, or a tax credit carry forward exists at the reporting date. The adoption of this amendment on January 1, 2014 did not have a significant impact on Bunge’s condensed consolidated financial statements. | |
In February 2013, the FASB issued guidance in ASC (Topic 405) Liabilities: Obligations Resulting from Joint and Several Liability Arrangements for which the Total Amount of the Obligation Is Fixed at the Reporting Date. The amended guidance addresses the recognition, measurement, and disclosure of certain obligations resulting from joint and several arrangements including debt arrangements, other contractual obligations, and settled litigation and judicial rulings. The adoption of this amendment on January 1, 2014 did not have a significant impact on Bunge’s condensed consolidated financial statements. | |
New Accounting Pronouncements — In August 2014, the FASB amended ASC (Topic 205) Presentation of Financial Statements-Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, to provide guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and to provide related footnote disclosures. This standard is effective for the annual period ending after December 15, 2016 and for annual periods and interim periods thereafter, with early adoption permitted. The adoption of this amendment is not expected to have any impact on Bunge’s condensed 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 standard is effective for interim and annual reporting periods beginning after December 15, 2016, including interim periods within that reporting. Early application is not permitted. Bunge is evaluating the expected impact of this standard on its condensed consolidated financial statements. | |
In April 2014, the FASB amended existing guidance in ASC (Topic 205) Presentation of Financial Statements and ASC (Topic 360) Property, Plant and Equipment: Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The amendments in this update improve the definition of discontinued operations by limiting discontinued operations reporting to disposals of components of an entity that represent strategic shifts that have (or will have) a major effect on an entity’s operations and financial results and requires expanded disclosures for such discontinued operations. The amendments in this update include several changes to Topic 360 to improve the organization and readability of Subtopic 205-20 and Subtopic 360-10, Property, Plant, and Equipment—Overall. The adoption of these amendments would potentially expand Bunge’s disclosures of any future discontinuance of operations. | |
BUSINESS_ACQUISITIONS
BUSINESS ACQUISITIONS | 9 Months Ended |
Sep. 30, 2014 | |
BUSINESS ACQUISITIONS | ' |
BUSINESS ACQUISITIONS | ' |
3. BUSINESS ACQUISITIONS | |
In February 2014, Bunge acquired the assets of Corn Flour Producers, LLC (CFP) for $12 million in cash. The purchase price allocation resulted in $12 million, primarily property, plant and equipment and working capital. CFP produces corn flour products and is located in Indiana in the United States. | |
TRADE_STRUCTURED_FINANCE_PROGR
TRADE STRUCTURED FINANCE PROGRAM | 9 Months Ended |
Sep. 30, 2014 | |
TRADE STRUCTURED FINANCE PROGRAM | ' |
TRADE STRUCTURED FINANCE PROGRAM | ' |
4. TRADE STRUCTURED FINANCE PROGRAM | |
Bunge engages in various trade structured finance activities to leverage the value of its trade flows across its operating regions. These activities include a Program under which a Bunge entity generally obtains U.S. dollar-denominated letters of credit (LCs) (each based on an underlying commodity trade flow) from financial institutions, as well as foreign exchange forward contracts, and time deposits denominated in the local currency of the financial institution counterparties, 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 condensed consolidated balance sheets as of September 30, 2014 and December 31, 2013. The net return from activities under this Program, including fair value changes, is included as a reduction of cost of goods sold in the accompanying condensed consolidated statements of income. | |
At September 30, 2014 and December 31, 2013, time deposits (with weighted-average interest rates of 8.70% and 8.36%, respectively) and LCs (including foreign exchange contracts) totaled $2,915 million and $4,470 million, respectively. In addition, at September 30, 2014 and December 31, 2013, the fair values of the time deposits (Level 2 measurements) totaled approximately $2,915 million and $4,470 million, respectively, and the fair values of the LCs (Level 2 measurements) totaled approximately $2,935 million and $4,360 million, respectively. The fair values approximated the carrying amount of the related financial instruments due to their short-term nature. The fair values of the foreign exchange forward contracts (Level 2 measurements) were gains of $20 million and losses of $110 million at September 30, 2014 and December 31, 2013, respectively. | |
For the nine months ended September 30, 2014 and 2013, total proceeds from issuances of LCs were $4,240 million and $7,702 million, respectively. These cash inflows are offset by the related cash outflows resulting from placement of the time deposits and repayment of the LCs. All cash flows related to the Program are included in operating activities in the condensed consolidated statements of cash flows. | |
INVENTORIES
INVENTORIES | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
INVENTORIES | ' | |||||||
INVENTORIES | ' | |||||||
5. INVENTORIES | ||||||||
Inventories by segment are presented below. Readily marketable inventories are agricultural commodity inventories, which are non-perishable with a high shelf life and exceptionally liquid due to their homogenous nature and widely available markets with international pricing mechanisms. Readily marketable inventories are carried at fair value. All other inventories are carried at lower of cost or market. | ||||||||
(US$ in millions) | 2014 | 2013 | ||||||
Agribusiness (1) | $ | 3,777 | $ | 4,498 | ||||
Edible Oil Products (2) | 388 | 487 | ||||||
Milling Products | 215 | 210 | ||||||
Sugar and Bioenergy (3) | 507 | 549 | ||||||
Fertilizer | 100 | 52 | ||||||
Total | $ | 4,987 | $ | 5,796 | ||||
(1) Includes readily marketable inventories of $3,671 million and $4,325 million at September 30, 2014 and December 31, 2013, respectively. Of these amounts $2,688 million and $2,927 million can be attributable to merchandising activities at September 30, 2014 and December 31, 2013, respectively. | ||||||||
(2) Includes readily marketable inventories of bulk soybean and canola oil in the aggregate amount of $103 million and $138 million at September 30, 2014 and December 31, 2013, respectively. | ||||||||
(3) Includes readily marketable inventories of $179 million and $215 million at September 30, 2014 and December 31, 2013, respectively. Of these sugar inventories, $105 million and $137 million, respectively, can be attributable to trading and merchandising business. Sugar and ethanol inventories in Bunge’s industrial production business are carried at lower of cost or market. | ||||||||
OTHER_CURRENT_ASSETS
OTHER CURRENT ASSETS | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
OTHER CURRENT ASSETS | ' | |||||||
OTHER CURRENT ASSETS | ' | |||||||
6. OTHER CURRENT ASSETS | ||||||||
Other current assets consist of the following: | ||||||||
September 30, | December 31, | |||||||
(US$ in millions) | 2014 | 2013 | ||||||
Prepaid commodity purchase contracts (1) | $ | 265 | $ | 220 | ||||
Secured advances to suppliers, net (2) | 489 | 555 | ||||||
Unrealized gains on derivative contracts, at fair value | 2,033 | 1,561 | ||||||
Recoverable taxes, net | 452 | 442 | ||||||
Margin deposits (3) | 216 | 305 | ||||||
Marketable securities, at fair value | 108 | 162 | ||||||
Deferred purchase price receivable, at fair value (4) | 77 | 96 | ||||||
Prepaid expenses | 230 | 261 | ||||||
Other | 673 | 835 | ||||||
Total | $ | 4,543 | $ | 4,437 | ||||
(1) Prepaid commodity purchase contracts represent advance payments against fixed price 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 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 $9 million and $20 million at September 30, 2014 and December 31, 2013, respectively. | ||||||||
Interest earned on secured advances to suppliers of $8 million and $7 million for the three months ended September 30, 2014 and 2013, respectively, and $27 million and $22 million for the nine months ended September 30, 2014 and 2013, respectively, is included in net sales in the condensed consolidated statements of income. | ||||||||
(3) Margin deposits include U.S. treasury securities at fair value and cash. | ||||||||
(4) Deferred purchase price receivable represents additional credit support for the investment conduits in Bunge’s accounts receivables sales program (see Note 12). | ||||||||
OTHER_NONCURRENT_ASSETS
OTHER NON-CURRENT ASSETS | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
OTHER NON-CURRENT ASSETS | ' | |||||||||||||
OTHER NON-CURRENT ASSETS | ' | |||||||||||||
7. OTHER NON-CURRENT ASSETS | ||||||||||||||
Other non-current assets consist of the following: | ||||||||||||||
September 30, | December 31, | |||||||||||||
(US$ in millions) | 2014 | 2013 | ||||||||||||
Recoverable taxes, net (1) | $ | 268 | $ | 283 | ||||||||||
Judicial deposits (1) | 155 | 153 | ||||||||||||
Other long-term receivables | 36 | 40 | ||||||||||||
Income taxes receivable (1) | 254 | 304 | ||||||||||||
Long-term investments | 291 | 296 | ||||||||||||
Affiliate loans receivable, net | 54 | 25 | ||||||||||||
Long-term receivables from farmers in Brazil, net (1) | 105 | 134 | ||||||||||||
Other | 153 | 176 | ||||||||||||
Total | $ | 1,316 | $ | 1,411 | ||||||||||
(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 valuation allowances of $33 million and $57 million at September 30, 2014 and December 31, 2013, 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 (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. | ||||||||||||||
Long-term investments-Long-term investments represent primarily investments held by certain managed investment funds, which are included in Bunge’s condensed consolidated financial statements. The consolidated funds are, for GAAP purposes, investment companies and therefore are not required to consolidate their majority owned and controlled investments. Bunge reflects these investments at fair value. The fair value of these investments (a Level 3 measurement) is $230 million and $238 million at September 30, 2014 and December 31, 2013, respectively. | ||||||||||||||
Affiliate loans receivable, net-Affiliate loans receivable, net is primarily interest bearing receivables from unconsolidated affiliates with an initial maturity of greater than one year. | ||||||||||||||
Long-term receivables from farmers in Brazil, net-Bunge provides financing to farmers in Brazil, primarily through secured advances against farmer commitments to deliver agricultural commodities (primarily soybeans) upon harvest of the then-current year’s crop and through credit sales of fertilizer to farmers. | ||||||||||||||
The table below summarizes Bunge’s recorded investment in long-term receivables from farmers in Brazil for amounts in the legal collection process and renegotiated amounts. | ||||||||||||||
September 30, | December 31, | |||||||||||||
(US$ in millions) | 2014 | 2013 | ||||||||||||
Legal collection process (1) | $ | 186 | $ | 213 | ||||||||||
Renegotiated amounts (2) | 75 | 117 | ||||||||||||
Total | $ | 261 | $ | 330 | ||||||||||
(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 nine months ended September 30, 2014 and the year ended December 31, 2013 was $298 million and $363 million, respectively. The table below summarizes Bunge’s recorded investment in long-term receivables from farmers in Brazil and the related allowance amounts. | ||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||
Recorded | Recorded | |||||||||||||
(US$ in millions) | Investment | Allowance | Investment | Allowance | ||||||||||
For which an allowance has been provided: | ||||||||||||||
Legal collection process | $ | 110 | $ | 103 | $ | 139 | $ | 132 | ||||||
Renegotiated amounts | 54 | 53 | 84 | 64 | ||||||||||
For which no allowance has been provided: | — | |||||||||||||
Legal collection process | 76 | — | 74 | — | ||||||||||
Renegotiated amounts | 21 | — | 33 | — | ||||||||||
Total | $ | 261 | $ | 156 | $ | 330 | $ | 196 | ||||||
The table below summarizes the activity in the allowance for doubtful accounts related to long-term receivables from farmers in Brazil. | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
(US$ in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||
Beginning balance | $ | 176 | $ | 209 | $ | 196 | $ | 224 | ||||||
Bad debt provisions | 3 | 3 | 5 | 16 | ||||||||||
Recoveries | (6 | ) | (3 | ) | (21 | ) | (14 | ) | ||||||
Write-offs | — | (1 | ) | (21 | ) | (2 | ) | |||||||
Transfers | — | 3 | 4 | 5 | ||||||||||
Foreign exchange translation | (17 | ) | (1 | ) | (7 | ) | (19 | ) | ||||||
Ending balance | $ | 156 | $ | 210 | $ | 156 | $ | 210 | ||||||
INCOME_TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2014 | |
INCOME TAXES | ' |
INCOME TAXES | ' |
8. INCOME TAXES | |
Income tax expense is provided on an interim basis based on management’s estimate of the annual effective income tax rate and includes the tax effects of certain discrete items, such as changes in tax laws or tax rates or other unusual or nonrecurring tax adjustments in the interim period in which they occur. In addition, jurisdictions with a projected loss for the year or a year-to-date loss where no tax benefit can be recognized are excluded from the estimated annual effective tax rate. The effective tax rate is highly dependent on the geographic distribution of Bunge’s worldwide earnings or losses and tax regulations in each jurisdiction. Management regularly monitors the assumptions used in estimating its annual effective tax rate and adjusts estimates accordingly. If actual results differ from management’s estimates, reported income tax expense in future periods could be materially affected. | |
For the nine months ended September 30, 2014 and 2013, income tax expense related to continuing operations was $150 million and $702 million, respectively. The related effective tax rates were 22% and 103%, respectively, and included discrete tax gains of $53 million and losses of $32 million, respectively. The higher effective tax rate for the nine months ended September 30, 2013, resulted mainly from the 2013 recording of $464 million full valuation allowance for net deferred tax assets in Bunge’s industrial sugar business in Brazil as a result of cumulative net operating losses. | |
As a global enterprise, Bunge files income tax returns that are subject to periodic examination and challenge by federal, state and foreign tax authorities. In many jurisdictions, income tax examinations, including settlement negotiations or litigation, may take several years to finalize. While it is difficult to predict the final outcome or timing of resolution of any particular matter, management believes that the condensed consolidated financial statements reflect the largest amount of tax benefit that will be more likely than not realized. During the nine months ended September 30, 2014 Bunge decreased its liability for uncertain tax positions by $66 million, primarily in Brazil with $59 million resulting from a tax amnesty program. | |
As of September 30, 2014 and December 31, 2013 Bunge had received from the Brazilian tax authorities proposed adjustments totaling an aggregate amount of 1,410 million Brazilian reals ($575 million and $603 million, respectively) plus applicable interest and penalties, related to multiple examinations of income tax returns for certain subsidiaries for years up to 2009. Management, in consultation with external legal advisors, has reviewed and responded to the proposed adjustments and believes that it is more likely than not that Bunge will prevail on the majority of the proposed adjustments. As of September 30, 2014 and December 31, 2013, Bunge had recognized uncertain tax positions related to these tax assessments of 54 million and 192 million Brazilian reals ($22 million and $82 million, respectively). The Brazilian tax authorities commenced an audit of Bunge’s largest Brazilian subsidiary for the tax years 2010, 2011 and 2012 in July of 2014. | |
In addition, as of September 30, 2014 and December 31, 2013, Bunge’s Argentine subsidiary had received an income tax assessment relating to fiscal years 2006 and 2007 with a claim of approximately 436 million Argentine pesos (approximately $52 million and $67 million, respectively), plus applicable interest on the outstanding amount due of approximately 867 million and 750 million Argentine pesos as of September 30, 2014 and December 31, 2013, respectively (approximately $103 million and $115 million, respectively). Management, in consultation with external legal advisors, has received and responded to the proposed adjustments and believes that it is more likely than not that Bunge will prevail on the majority of the proposed adjustments. Fiscal years 2008 and 2009 are currently being audited by the tax authorities. It is likely that the tax authorities will also audit fiscal years 2010-2013, although no notice has been rendered to Bunge’s Argentine subsidiary (see also Note 14). | |
OTHER_CURRENT_LIABILITIES
OTHER CURRENT LIABILITIES | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
OTHER CURRENT LIABILITIES | ' | |||||||
OTHER CURRENT LIABILITIES | ' | |||||||
9. OTHER CURRENT LIABILITIES | ||||||||
Other current liabilities consist of the following: | ||||||||
September 30, | December 31, | |||||||
(US$ in millions) | 2014 | 2013 | ||||||
Accrued liabilities | $ | 743 | $ | 792 | ||||
Unrealized losses on derivative contracts at fair value | 1,567 | 1,401 | ||||||
Advances on sales | 212 | 330 | ||||||
Other | 337 | 495 | ||||||
Total | $ | 2,859 | $ | 3,018 |
FINANCIAL_INSTRUMENTS_AND_FAIR
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | ' | |||||||||||||||||||||||||
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | ' | |||||||||||||||||||||||||
10. 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 12 for deferred purchase price receivable (DPP) related to sales of trade receivables. See Note 7 for long-term receivables from farmers in Brazil, net and other long-term investments and Note 11 for long-term debt. 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 topic 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 | ||||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||
(US$ in millions) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Readily marketable inventories (Note 5) | $ | — | $ | 3,569 | $ | 310 | $ | 3,879 | $ | — | $ | 4,302 | $ | 298 | $ | 4,600 | ||||||||||
Trade accounts receivable(1) | — | 7 | — | 7 | — | 5 | 1 | 6 | ||||||||||||||||||
Unrealized gain on designated derivative contracts(2): | ||||||||||||||||||||||||||
Foreign exchange | — | 24 | — | 24 | — | 7 | — | 7 | ||||||||||||||||||
Unrealized gain on undesignated derivative contracts (2): | ||||||||||||||||||||||||||
Foreign exchange | 10 | 281 | — | 291 | 5 | 346 | — | 351 | ||||||||||||||||||
Commodities | 548 | 1,002 | 74 | 1,624 | 408 | 585 | 138 | 1,131 | ||||||||||||||||||
Freight | 75 | 2 | — | 77 | 59 | — | — | 59 | ||||||||||||||||||
Energy | 14 | — | 3 | 17 | 11 | — | 2 | 13 | ||||||||||||||||||
Deferred purchase price receivable (Note 12) | — | 77 | — | 77 | — | 96 | — | 96 | ||||||||||||||||||
Other (3) | 65 | 79 | — | 144 | 59 | 22 | — | 81 | ||||||||||||||||||
Total assets | $ | 712 | $ | 5,041 | $ | 387 | $ | 6,140 | $ | 542 | $ | 5,363 | $ | 439 | $ | 6,344 | ||||||||||
Fair Value Measurements at Reporting Date | ||||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Trade accounts payable(1) | $ | — | $ | 407 | $ | 60 | $ | 467 | $ | — | $ | 381 | $ | 76 | $ | 457 | ||||||||||
Unrealized loss on designated derivative contracts (4): | ||||||||||||||||||||||||||
Foreign exchange | — | 4 | — | 4 | — | 11 | — | 11 | ||||||||||||||||||
Unrealized loss on undesignated derivative contracts (4): | ||||||||||||||||||||||||||
Foreign exchange | 29 | 278 | — | 307 | 5 | 373 | — | 378 | ||||||||||||||||||
Commodities | 449 | 602 | 77 | 1,128 | 361 | 439 | 89 | 889 | ||||||||||||||||||
Freight | 77 | — | 6 | 83 | 81 | — | 14 | 95 | ||||||||||||||||||
Energy | 27 | — | 18 | 45 | 11 | — | 17 | 28 | ||||||||||||||||||
Total liabilities | $ | 582 | $ | 1,291 | $ | 161 | $ | 2,034 | $ | 458 | $ | 1,204 | $ | 196 | $ | 1,858 | ||||||||||
(1) Trade accounts receivable and payable are generally accounted for at amortized cost, with the exception of $7 million and $467 million, at September 30, 2014 and $6 million and $457 million at December 31, 2013, 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 are no such amounts included in other non-current assets at September 30, 2014 and December 31, 2013, 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 are no such amounts included in other non-current liabilities at September 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||||||||
Derivatives — Exchange traded futures and options 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 — Readily marketable inventories 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 readily marketable inventories at fair value in the condensed consolidated balance sheets and condensed consolidated statements of income could differ. Additionally, if market conditions change subsequent to the reporting date, amounts reported in future periods as unrealized gains and losses on derivative contracts and readily marketable inventories at fair value in the condensed consolidated balance sheets and condensed 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 over-the-counter 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 September 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||||||||
Level 3 Readily marketable inventories and other — The significant unobservable inputs resulting in Level 3 classification for readily marketable inventories, 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 three and nine months ended September 30, 2014 and 2013. 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 | ||||||||||||||||||||||||||
Three Months Ended September 30, 2014 | ||||||||||||||||||||||||||
Readily | Trade Accounts | |||||||||||||||||||||||||
Derivatives, | Marketable | Receivable/ | ||||||||||||||||||||||||
(US$ in millions) | Net (1) | Inventories | Payable, Net(2) | Total | ||||||||||||||||||||||
Balance, July 1, 2014 | $ | (13 | ) | $ | 873 | $ | (120 | ) | $ | 740 | ||||||||||||||||
Total gains and losses (realized/unrealized) included in cost of goods sold | (12 | ) | (39 | ) | 1 | (50 | ) | |||||||||||||||||||
Purchases | (8 | ) | 254 | (4 | ) | 242 | ||||||||||||||||||||
Sales | 4 | (943 | ) | — | (939 | ) | ||||||||||||||||||||
Issuances | 20 | — | (7 | ) | 13 | |||||||||||||||||||||
Settlements | (47 | ) | — | 84 | 37 | |||||||||||||||||||||
Transfers into Level 3 | 27 | 171 | (3 | ) | 195 | |||||||||||||||||||||
Transfers out of Level 3 | 5 | (6 | ) | (11 | ) | (12 | ) | |||||||||||||||||||
Balance, September 30, 2014 | $ | (24 | ) | $ | 310 | $ | (60 | ) | $ | 226 | ||||||||||||||||
(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 | ||||||||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||||||||
Trade | ||||||||||||||||||||||||||
Readily | Accounts | |||||||||||||||||||||||||
Derivatives, | Marketable | Receivable/ | ||||||||||||||||||||||||
(US$ in millions) | Net (1) | Inventories | Payable, Net (2) | Total | ||||||||||||||||||||||
Balance, July 1, 2013 | $ | 89 | $ | 1,220 | $ | (521 | ) | $ | 788 | |||||||||||||||||
Total gains and losses (realized/unrealized) included in cost of goods sold | (50 | ) | (103 | ) | 1 | (152 | ) | |||||||||||||||||||
Purchases | — | 385 | — | 385 | ||||||||||||||||||||||
Sales | — | (905 | ) | 6 | (899 | ) | ||||||||||||||||||||
Issuances | (2 | ) | — | — | (2 | ) | ||||||||||||||||||||
Settlements | (40 | ) | — | 526 | 486 | |||||||||||||||||||||
Transfers into Level 3 | 2 | 265 | — | 267 | ||||||||||||||||||||||
Transfers out of Level 3 | (24 | ) | (8 | ) | (119 | ) | (151 | ) | ||||||||||||||||||
Balance, September 30, 2013 | $ | (25 | ) | $ | 854 | $ | (107 | ) | $ | 722 | ||||||||||||||||
(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 | ||||||||||||||||||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||||||||
Readily | Trade Accounts | |||||||||||||||||||||||||
Derivatives, | Marketable | Receivable/ | ||||||||||||||||||||||||
(US$ in millions) | Net (1) | Inventories | Payable, Net(2) | Total | ||||||||||||||||||||||
Balance, January 1, 2014 | $ | 20 | $ | 298 | $ | (75 | ) | $ | 243 | |||||||||||||||||
Total gains and losses (realized/unrealized) included in cost of goods sold | 65 | 8 | 2 | 75 | ||||||||||||||||||||||
Purchases | 5 | 1,804 | (5 | ) | 1,804 | |||||||||||||||||||||
Sales | — | (2,176 | ) | 8 | (2,168 | ) | ||||||||||||||||||||
Issuances | 19 | — | (400 | ) | (381 | ) | ||||||||||||||||||||
Settlements | (189 | ) | — | 492 | 303 | |||||||||||||||||||||
Transfers into Level 3 | 21 | 534 | (11 | ) | 544 | |||||||||||||||||||||
Transfers out of Level 3 | 35 | (158 | ) | (71 | ) | (194 | ) | |||||||||||||||||||
Balance, September 30, 2014 | $ | (24 | ) | $ | 310 | $ | (60 | ) | $ | 226 | ||||||||||||||||
(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 | ||||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||
Readily | Trade Accounts | |||||||||||||||||||||||||
Derivatives, | Marketable | Receivable/ | ||||||||||||||||||||||||
(US$ in millions) | Net (1) | Inventories | Payable, Net (2) | Total | ||||||||||||||||||||||
Balance, January 1, 2013 | $ | 66 | $ | 436 | $ | (40 | ) | $ | 462 | |||||||||||||||||
Total gains and losses (realized/unrealized) included in cost of goods sold | 49 | (185 | ) | 69 | (67 | ) | ||||||||||||||||||||
Purchases | — | 1,598 | — | 1,598 | ||||||||||||||||||||||
Sales | 1 | (1,410 | ) | 9 | (1,400 | ) | ||||||||||||||||||||
Issuances | (4 | ) | — | (508 | ) | (512 | ) | |||||||||||||||||||
Settlements | (222 | ) | — | 545 | 323 | |||||||||||||||||||||
Transfers into Level 3 | 102 | 575 | (58 | ) | 619 | |||||||||||||||||||||
Transfers out of Level 3 | (17 | ) | (160 | ) | (124 | ) | (301 | ) | ||||||||||||||||||
Balance, September 30, 2013 | $ | (25 | ) | $ | 854 | $ | (107 | ) | $ | 722 | ||||||||||||||||
(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 three and nine months ended September 30, 2014 and 2013 for Level 3 assets and liabilities that were held at September 30, 2014 and 2013. | ||||||||||||||||||||||||||
Level 3 Instruments | ||||||||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||
Readily | Trade Accounts | |||||||||||||||||||||||||
Derivatives, | Marketable | Receivable and | ||||||||||||||||||||||||
(US$ in millions) | Net (1) | Inventories | Payable, Net(2) | Total | ||||||||||||||||||||||
Changes in unrealized gains and (losses) relating to assets and liabilities held at September 30, 2014 | ||||||||||||||||||||||||||
Cost of goods sold | $ | (7 | ) | $ | (19 | ) | $ | 1 | $ | (25 | ) | |||||||||||||||
Changes in unrealized gains and (losses) relating to assets and liabilities held at September 30, 2013 | ||||||||||||||||||||||||||
Cost of goods sold | $ | (55 | ) | $ | 145 | $ | 7 | $ | 97 | |||||||||||||||||
(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 | ||||||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||
Readily | Trade Accounts | |||||||||||||||||||||||||
Derivatives, | Marketable | Receivable and | ||||||||||||||||||||||||
(US$ in millions) | Net (1) | Inventories | Payable, Net(2) | Total | ||||||||||||||||||||||
Changes in unrealized gains and (losses) relating to assets and liabilities held at September 30, 2014 | ||||||||||||||||||||||||||
Cost of goods sold | $ | 48 | $ | (43 | ) | $ | 4 | $ | 9 | |||||||||||||||||
Changes in unrealized gains and (losses) relating to assets and liabilities held at September 30, 2013 | ||||||||||||||||||||||||||
Cost of goods sold | $ | 56 | $ | 548 | $ | 9 | $ | 613 | ||||||||||||||||||
(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 | ||||||||||||||||||||||||||
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. Interest rate derivatives used by Bunge as hedging instruments are recorded at fair value in the condensed consolidated balance sheets with changes in fair value recorded contemporaneously in earnings. Certain of these interest rate derivatives agreements may be designated as fair value hedges. The carrying amount of the associated hedged debt is also 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. Bunge may enter into interest rate derivatives agreements for the purpose of managing certain of its interest rate exposures. Bunge may also enter into interest rate derivatives agreements that do not qualify as hedges for accounting purposes. Changes in fair value of such interest rate basis derivatives agreements are recorded in earnings. | ||||||||||||||||||||||||||
Foreign exchange derivatives — 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. | ||||||||||||||||||||||||||
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 following table summarizes outstanding interest rate derivatives. | ||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||
Exchange Traded | ||||||||||||||||||||||||||
Net (Short) | ||||||||||||||||||||||||||
(US$ in millions) | & Long | |||||||||||||||||||||||||
Interest Rate Options | $ | 1 | ||||||||||||||||||||||||
Interest Rate Futures | $ | (5 | ) | |||||||||||||||||||||||
The table below summarizes the notional amounts of open foreign exchange positions. | ||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||
Exchange Traded | ||||||||||||||||||||||||||
Net (Short) | Non-exchange Traded | Unit of | ||||||||||||||||||||||||
(US$ in millions) | & Long (1) | (Short) (2) | Long (2) | Measure | ||||||||||||||||||||||
Foreign Exchange | ||||||||||||||||||||||||||
Options | $ | (12 | ) | $ | (531 | ) | $ | 310 | Delta | |||||||||||||||||
Forwards | 22 | (9,885 | ) | 10,850 | Notional | |||||||||||||||||||||
Futures | 1 | — | — | Notional | ||||||||||||||||||||||
Swaps | — | (11 | ) | 75 | Notional | |||||||||||||||||||||
(1) Exchange traded futures and options are presented on a net (short) and long position basis. | ||||||||||||||||||||||||||
(2) Non-exchange traded swaps, options and forwards are presented on a gross (short) and long position basis. | ||||||||||||||||||||||||||
Commodity derivatives — Bunge uses 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. | ||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||
Exchange Traded | ||||||||||||||||||||||||||
Net (Short) & | Non-exchange Traded | Unit of | ||||||||||||||||||||||||
Long (1) | (Short) (2) | Long (2) | Measure | |||||||||||||||||||||||
Agricultural Commodities | ||||||||||||||||||||||||||
Futures | (3,389,089 | ) | — | — | Metric Tons | |||||||||||||||||||||
Options | (797,015 | ) | — | — | Metric Tons | |||||||||||||||||||||
Forwards | — | (37,244,377 | ) | 24,593,861 | Metric Tons | |||||||||||||||||||||
Swaps | — | (203,843 | ) | 234,597 | Metric Tons | |||||||||||||||||||||
(1) Exchange traded futures and options are presented on a net (short) and long position basis. | ||||||||||||||||||||||||||
(2) Non-exchange traded swaps, options and forwards 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 September 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||||||||
The table below summarizes the open ocean freight positions. | ||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||
Exchange Cleared | ||||||||||||||||||||||||||
Net (Short) & | Non-exchange Cleared | Unit of | ||||||||||||||||||||||||
Long (1) | (Short) (2) | Long (2) | Measure | |||||||||||||||||||||||
Ocean Freight | ||||||||||||||||||||||||||
FFA | (941 | ) | — | — | Hire Days | |||||||||||||||||||||
FFA Options | (1,064 | ) | — | — | Hire Days | |||||||||||||||||||||
(1) Exchange cleared futures and options are presented on a net (short) and long position basis. | ||||||||||||||||||||||||||
(2) Non-exchange cleared options and forwards are presented on a gross (short) and long position basis. | ||||||||||||||||||||||||||
Energy derivatives — Bunge uses derivative instruments for various purposes including to manage its exposure to volatility in energy costs. Bunge’s operations use substantial amounts of energy, including natural gas, coal, and fuel oil, including bunker fuel. | ||||||||||||||||||||||||||
The table below summarizes the open energy positions. | ||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||
Exchange Traded | ||||||||||||||||||||||||||
Net (Short) & | Non-exchange Cleared | Unit of | ||||||||||||||||||||||||
Long (1) | (Short) (2) | Long (2) | Measure (3) | |||||||||||||||||||||||
Natural Gas (3) | ||||||||||||||||||||||||||
Futures | 3,940,000 | — | — | MMBtus | ||||||||||||||||||||||
Swaps | — | — | 749,763 | MMBtus | ||||||||||||||||||||||
Options | 4,574 | — | — | MMBtus | ||||||||||||||||||||||
Energy—Other | ||||||||||||||||||||||||||
Futures | 1,471,683 | — | — | Metric Tons | ||||||||||||||||||||||
Forwards | — | (577,000 | ) | 36,298,790 | Metric Tons | |||||||||||||||||||||
Swaps | 235,000 | — | — | Metric Tons | ||||||||||||||||||||||
Options | 204,954 | — | — | Metric Tons | ||||||||||||||||||||||
(1) Exchange traded and exchange cleared futures and options are presented on a net (short) and long position basis. | ||||||||||||||||||||||||||
(2) Non-exchange cleared swaps, options and forwards are presented on a gross (short) and long position basis. | ||||||||||||||||||||||||||
(3) Million British Thermal Units (MMBtus) is the standard unit of measurement used to denote an amount of natural gas. | ||||||||||||||||||||||||||
The Effect of Derivative Instruments on the Condensed 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 condensed consolidated statements of income for the nine months ended September 30, 2014 and 2013. | ||||||||||||||||||||||||||
Gain or (Loss) Recognized in | ||||||||||||||||||||||||||
Income on Derivative | ||||||||||||||||||||||||||
Instruments | ||||||||||||||||||||||||||
Nine Months Ended September | ||||||||||||||||||||||||||
30, | ||||||||||||||||||||||||||
(US$ in millions) | Location | 2014 | 2013 | |||||||||||||||||||||||
Undesignated Derivative Contracts: | ||||||||||||||||||||||||||
Foreign Exchange | Foreign exchange gains (losses) | $ | 28 | $ | (131 | ) | ||||||||||||||||||||
Foreign Exchange | Cost of goods sold | 113 | 156 | |||||||||||||||||||||||
Commodities | Cost of goods sold | 383 | 299 | |||||||||||||||||||||||
Freight | Cost of goods sold | (1 | ) | (31 | ) | |||||||||||||||||||||
Energy | Cost of goods sold | (15 | ) | 2 | ||||||||||||||||||||||
Total | $ | 508 | $ | 295 | ||||||||||||||||||||||
The table below summarizes the effect of derivative instruments that are designated and qualify as cash flow and net investment hedges on the condensed consolidated statement of income for the nine months ended September 30, 2014. | ||||||||||||||||||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||||||||
Gain or | Gain or (Loss) | |||||||||||||||||||||||||
(Loss) | Reclassified from | |||||||||||||||||||||||||
Recognized in | Accumulated OCI into | Gain or (Loss) Recognized | ||||||||||||||||||||||||
Notional | Accumulated | Income (1) | in Income on Derivatives | |||||||||||||||||||||||
(US$ in millions) | Amount | OCI (1) | Location | Amount | Location | Amount (2) | ||||||||||||||||||||
Cash Flow Hedge: | ||||||||||||||||||||||||||
Foreign Exchange (3) | $ | 148 | $ | 19 | Foreign exchange gains (losses) | $ | 11 | Cost of goods sold | $ | — | ||||||||||||||||
Total | $ | 148 | $ | 19 | $ | 11 | $ | — | ||||||||||||||||||
Net Investment Hedge: | ||||||||||||||||||||||||||
Foreign Exchange (3) | $ | 557 | $ | (7 | ) | Foreign exchange gains (losses) | $ | — | Foreign exchange gains (losses) | $ | — | |||||||||||||||
Total | $ | 557 | $ | (7 | ) | $ | — | $ | — | |||||||||||||||||
(1) The gain (loss) recognized relates to the effective portion of the hedging relationship. At September 30, 2014, Bunge expects to reclassify into income in the next 12 months $19 million after-tax gain (loss) related to its foreign exchange cash flow hedges. | ||||||||||||||||||||||||||
(2) There was no gain or loss recognized in income relating to the ineffective portion of the hedging relationships or relating to amounts excluded from the assessment of hedge effectiveness. | ||||||||||||||||||||||||||
(3) The foreign exchange contracts mature at various dates in 2014 and 2015. | ||||||||||||||||||||||||||
The table below summarizes the effect of derivative instruments that are designated and qualify as cash flow hedges on the condensed consolidated statement of income for the nine months ended September 30, 2013. | ||||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||
Gain or | Gain or (Loss) | |||||||||||||||||||||||||
(Loss) | Reclassified from | |||||||||||||||||||||||||
Recognized in | Accumulated OCI into | Gain or (Loss) Recognized | ||||||||||||||||||||||||
Notional | Accumulated | Income (1) | in Income on Derivatives | |||||||||||||||||||||||
(US$ in millions) | Amount | OCI (1) | Location | Amount | Location | Amount (2) | ||||||||||||||||||||
Cash Flow Hedge: | ||||||||||||||||||||||||||
Foreign Exchange (3) | $ | 323 | $ | (11 | ) | Cost of goods sold | $ | (10 | ) | Cost of goods sold | $ | — | ||||||||||||||
Total | $ | 323 | $ | (11 | ) | $ | (10 | ) | $ | — | ||||||||||||||||
Net Investment Hedge: | ||||||||||||||||||||||||||
Foreign Exchange (3) | $ | 885 | $ | 8 | Foreign exchange gains (losses) | $ | — | Foreign exchange gains (losses) | $ | — | ||||||||||||||||
Total | $ | 885 | $ | 8 | $ | — | $ | — | ||||||||||||||||||
(1) The gain or (loss) recognized relates to the effective portion of the hedging relationship. At September 30, 2013, Bunge expected to reclassify into income in the next 12 months approximately $1 million of after-tax gains related to its foreign exchange cash flow hedges. At September 30, 2013, 2013, Bunge expects to reclassify into income in the next 12 months $29 million after-tax losses related to its foreign exchange net investment hedge. | ||||||||||||||||||||||||||
(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 mature at various dates in 2013 and 2014. | ||||||||||||||||||||||||||
DEBT
DEBT | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
DEBT | ' | |||||||||||||||||||
DEBT | ' | |||||||||||||||||||
11. DEBT | ||||||||||||||||||||
On June 17, 2014, Bunge increased pursuant to an accordion provision, the $665 million five-year syndicated revolving credit agreement with CoBank, ACB, as administrative agent and certain lender party thereto to $865 million. Borrowings under the revolving credit agreement will bear interest at LIBOR plus a margin, which will vary between 1.050% and 1.675% per annum, based on the credit ratings of Bunge’s long-term senior unsecured debt. Amounts under the revolving credit agreement that remain undrawn are subject to a commitment fee at rates ranging from 0.125% to 0.275% per annum based likewise on the ratings of Bunge’s long-term senior unsecured debt. At September 30, 2014, there was $150 million outstanding under this facility. | ||||||||||||||||||||
On March 17, 2014, Bunge entered into an unsecured $1,750 million three-year syndicated revolving credit facility (Facility) with an option to request an extension of the maturity date for two additional one-year periods. Each lender in its sole discretion may agree to any such request. Borrowings under the Facility will bear interest at LIBOR plus a margin, which will vary from 0.70% to 1.70% per annum, based on the credit ratings of Bunge’s senior long-term unsecured debt. Bunge is also required to pay fees quarterly in arrears that vary from 0.10% to 0.40% per annum based on the utilization of the Facility. Amounts under the Facility that remain undrawn are subject to a commitment fee payable quarterly in arrears at a rate of 35% of the margin specified above, which will vary based on the rating level at each quarterly payment date. Bunge may, from time-to-time, with the consent of the Facility agent, request one or more of the existing lenders or new lenders to increase the total commitments under the Facility by up to $250 million pursuant to an accordion provision. At September 30, 2014, there were no borrowings outstanding under this Facility. | ||||||||||||||||||||
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. The Liquidity Facility, which matures in November 2016, permits Bunge, at its option, to set up direct borrowings or issue commercial paper. The cost of borrowing under the Liquidity Facility would typically be higher than the cost of issuing under Bunge’s commercial paper program. At September 30, 2014, there was $200 million outstanding under the commercial paper program and no borrowings under the Liquidity Facility. | ||||||||||||||||||||
At September 30, 2014, Bunge had $4,350 million of unused and available borrowing capacity under its committed credit facilities with a number of lending institutions. | ||||||||||||||||||||
The fair value of Bunge’s long-term debt is based on interest rates currently available on comparable maturities to companies with credit standing similar to that of Bunge. The carrying amounts and fair value of long-term debt are as follows: | ||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||
Carrying | Fair Value | Fair Value | Carrying | Fair Value | Fair Value | |||||||||||||||
(US$ in millions) | Value | (Level 2) | (Level 3) | Value | (Level 2) | (Level 3) | ||||||||||||||
Long-term debt, including current portion | $ | 3,234 | $ | 3,243 | $ | 215 | $ | 3,941 | $ | 3,917 | $ | 257 |
TRADE_RECEIVABLES_SECURITIZATI
TRADE RECEIVABLES SECURITIZATION PROGRAM | 9 Months Ended |
Sep. 30, 2014 | |
TRADE RECEIVABLES SECURITIZATION PROGRAM | ' |
TRADE RECEIVABLES SECURITIZATION PROGRAM | ' |
12. TRADE RECEIVABLESSECURITIZATION 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, Purchasers) that provides for funding up to $700 million against receivables sold into the Program. | |
As of September 30, 2014 and December 31, 2013, $570 million and $696 million, respectively, of receivables sold under the Program were derecognized from Bunge’s condensed consolidated balance sheets. Proceeds received in cash related to transfers of receivables under the Program totaled $8,837 million and $9,126 million for the nine months ended September 30, 2014 and 2013, respectively. In addition, cash collections from customers on receivables previously sold were $9,038 million and $9,240 million, respectively. As this is a revolving facility, cash collections from customers are reinvested to fund new receivable sales. Gross receivables sold under the Program for the nine months ended September 30, 2014 and 2013 were $8,966 million and $9,285 million, respectively. These sales resulted in discounts of $2 million for each of the three month periods ended September 30, 2014 and 2013, and of $6 million for each of the nine month periods ended September 30, 2014 and 2013, which were included in SG&A in the condensed consolidated statements of income. Servicing fees under the Program were not significant in any period. | |
Bunge’s risk of loss following the sale of the trade receivables is limited to the Deferred Purchase Price (DPP), which at September 30, 2014 and December 31, 2013 had a fair value of $77 million and $96 million, respectively, and is included in other current assets in the condensed consolidated balance sheets (see Note 6). 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 nine months ended September 30, 2014 and 2013 were insignificant. Bunge has reflected all cash flows under the Program as operating cash flows in the condensed consolidated statements of cash flows. | |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2014 | |
RELATED PARTY TRANSACTIONS | ' |
RELATED PARTY TRANSACTIONS | ' |
13. RELATED PARTY TRANSACTIONS | |
On September 5, 2014, Bunge agreed to acquire Itochu Corporation’s 20% interest in two sugar cane mills operating in the sugar and bioenergy segment in Brazil. Prior to this transaction, Bunge had an 80% interest in these entities which it consolidated. The acquisition of the minority interest resulted in a $23 million decrease to equity which represents the noncontrolling interests share. | |
Bunge purchased soybeans, other commodity products and received port services from certain of its unconsolidated investees, totaling $127 million and $128 million for the three months ended September 30, 2014 and 2013, respectively, and $523 million and $413 million for the nine months ended September 30, 2014 and 2013, respectively. Bunge also sold soybeans, other commodity products and provided port services to certain of its unconsolidated investees, totaling $66 million and $108 million for the three months ended September 30, 2014 and 2013, respectively, and $255 million and $463 million for the nine months ended September 30, 2014 and 2013, respectively. | |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
COMMITMENTS AND CONTINGENCIES | ' | |||||||
COMMITMENTS AND CONTINGENCIES | ' | |||||||
14. COMMITMENTS AND CONTINGENCIES | ||||||||
Bunge is party to a large number of claims and lawsuits, primarily tax and labor claims in Brazil and tax claims in Argentina, arising in the normal course of business. The ability to predict the ultimate outcome of such matters involves judgments, estimates and inherent uncertainties. Bunge records liabilities related to its general claims and lawsuits when the exposure item becomes probable and can be reasonably estimated. Bunge management does not expect these matters to have a material adverse effect on Bunge’s financial condition, results of operations or liquidity. However, these matters are subject to inherent uncertainties and there exists the remote possibility of an adverse impact on Bunge’s position in the period the uncertainties are resolved whereby the settlement of the identified contingencies could exceed the amount of provisions included in the condensed consolidated balance sheets. Included in other non-current liabilities at September 30, 2014 and December 31, 2013 are the following amounts related to these matters: | ||||||||
September 30, | December 31, | |||||||
(US$ in millions) | 2014 | 2013 | ||||||
Tax claims | $ | 58 | $ | 59 | ||||
Labor claims | 84 | 76 | ||||||
Civil and other claims | 102 | 101 | ||||||
Total | $ | 244 | $ | 236 | ||||
Tax Claims — These claims relate principally to claims against Bunge’s Brazilian subsidiaries, primarily value-added tax claims (ICMS, IPI, PIS and 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 in Note 18, 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 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. The Company 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 GAAP, no liability has been recorded in the condensed consolidated financial statements. | ||||||||
In May 2014, the Brazilian tax authorities concluded an examination of the ICMS tax returns of one of Bunge’s Brazilian subsidiaries for the years 2010-2011 and proposed adjustments totaling approximately 45 million Brazilian reals ($18 million) plus applicable interest and penalties. Management, in consultation with external legal advisors, has reviewed and responded to the proposed adjustments. In conjunction with this review, management has determined that no reserves are required. | ||||||||
In December, 2012, the Brazilian tax authorities concluded an examination of the PIS COFINS tax returns of one of Bunge’s Brazilian subsidiaries for the years 2004-2007 and proposed adjustments totaling approximately 287 million Brazilian reals ($117 million) plus applicable interest and penalties. Management, in consultation with external legal advisors, has reviewed and responded to the proposed adjustments. In conjunction with this review, management has established appropriate reserves for potential exposures. | ||||||||
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, in October 2010, the Argentine tax authorities carried out inspections at several of Bunge’s locations in Argentina relating to allegations of income tax evasion covering the periods from 2007 to 2009. In December 2012, Bunge’s Argentine subsidiary received an income tax assessment relating to fiscal years 2006 and 2007 with a claim of approximately 436 million Argentine pesos (approximately $52 million as of September 30, 2014), plus previously accrued interest on the outstanding amount due of approximately 867 million Argentine pesos (approximately $103 million as of September 30, 2014). Bunge’s Argentine subsidiary has appealed this assessment before the National Tax Court. Fiscal years 2008 and 2009 are currently being audited by the tax authorities and it is likely that the tax authorities will also audit fiscal years 2010-2013, although no notice has been rendered to Bunge’s Argentine subsidiary. Additionally, in April 2011, the Argentine tax authorities conducted inspections of Bunge’s locations and those of several other grain exporters with respect to allegations of evasion of liability for value-added taxes and an inquest proceeding was initiated in the first quarter of 2012 to determine whether there is any potential criminal culpability relating to these matters. Also during 2011, Bunge paid $112 million of accrued export tax obligations in Argentina under protest while reserving all of its rights in respect of such payment. In the first quarter of 2012, the Argentine tax authorities assessed interest on these paid export taxes, which as of September 30, 2014, totaled approximately $169 million. In April 2012, the Argentine government suspended Bunge’s Argentine subsidiary from a registry of grain traders and, in October 2012, the government excluded Bunge’s subsidiary from this registry in connection with the income tax allegations discussed above. While the suspension and exclusion have not had a material adverse effect on Bunge’s business in Argentina, there actions primarily result in additional administrative requirements and increased logistical costs on domestic grain shipments within Argentina. Bunge is challenging these actions in the Argentine courts. Management believes that these tax-related allegations and claims are without merit and intends to vigorously defend against them. However, management is, at this time, unable to predict their outcome. | ||||||||
Labor claims — The labor claims are principally claims against Bunge’s Brazilian subsidiaries. The labor claims primarily relate to dismissals, severance, health and safety, salary adjustments and supplementary retirement benefits. | ||||||||
Civil and other — The civil and other claims relate to various disputes with third parties, including suppliers and customers. | ||||||||
Guarantees — Bunge has issued or was a party to the following guarantees at September 30, 2014: | ||||||||
Maximum | ||||||||
Potential | ||||||||
Future | ||||||||
(US$ in millions) | Payments | |||||||
Unconsolidated affiliates financing (1) | $ | 125 | ||||||
Residual value guarantee (2) | 121 | |||||||
Total | $ | 246 | ||||||
(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 2014 through 2021. There are no recourse provisions or collateral that would enable Bunge to recover any amounts paid under these guarantees. At September 30, 2014, Bunge had no outstanding recorded obligation related to these guarantees. | ||||||||
(2) 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 2016 through 2019. At September 30, 2014, Bunge’s recorded obligation related to these guarantees was $5 million. | ||||||||
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 September 30, 2014, Bunge’s condensed consolidated balance sheet includes debt with a carrying amount of $3,248 million related to these guarantees. This debt includes the senior notes issued by two of Bunge’s 100% owned finance subsidiaries, Bunge Limited Finance Corp. and Bunge N.A. Finance L.P. There are no significant restrictions on the ability of Bunge Limited Finance Corp., Bunge N.A. Finance L.P. or any other Bunge subsidiary to transfer funds to Bunge Limited. | ||||||||
EQUITY
EQUITY | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
EQUITY | ' | ||||||||||||||||
EQUITY | ' | ||||||||||||||||
15. EQUITY | |||||||||||||||||
Share repurchase program — Bunge has established a program for the repurchase of up to $975 million of Bunge’s issued and outstanding common shares. The program runs indefinitely. Bunge repurchased 3,780,987 common shares for $300 million during the nine months ended September 30, 2014. Total repurchases under the program from its inception on June 8, 2010 through September 30, 2014 were 12,428,846 shares for a total amount of $774 million. | |||||||||||||||||
Accumulated other comprehensive income (loss) attributable to Bunge — The following table summarizes the balances of related after-tax components of accumulated other comprehensive income (loss) attributable to Bunge: | |||||||||||||||||
Deferred | Pension and Other | Unrealized | Accumulated | ||||||||||||||
Foreign Exchange | Gains (Losses) | Postretirement | Gains (Losses) | Other | |||||||||||||
Translation | on Hedging | Liability | on | Comprehensive | |||||||||||||
(US$ in millions) | Adjustment | Activities | Adjustments | Investments | Income (Loss) | ||||||||||||
Balance July 1, 2014 | $ | (2,147 | ) | $ | (42 | ) | $ | (70 | ) | $ | 5 | $ | (2,254 | ) | |||
Other comprehensive income (loss) before reclassifications | (1,010 | ) | 29 | — | (2 | ) | (983 | ) | |||||||||
Amount reclassified from accumulated other comprehensive income | — | (7 | ) | — | — | (7 | ) | ||||||||||
Balance, September 30, 2014 | $ | (3,157 | ) | $ | (20 | ) | $ | (70 | ) | $ | 3 | $ | (3,244 | ) | |||
Deferred | Pension and Other | Unrealized | Accumulated | ||||||||||||||
Foreign Exchange | Gains (Losses) | Postretirement | Gains (Losses) | Other | |||||||||||||
Translation | on Hedging | Liability | on | Comprehensive | |||||||||||||
(US$ in millions) | Adjustment | Activities | Adjustments | Investments | Income (Loss) | ||||||||||||
Balance July 1, 2013 | $ | (2,023 | ) | $ | 29 | $ | (155 | ) | $ | 10 | $ | (2,139 | ) | ||||
Other comprehensive income (loss) before reclassifications | (85 | ) | (28 | ) | (1 | ) | — | (114 | ) | ||||||||
Amount reclassified from accumulated other comprehensive income (1) | (4 | ) | (27 | ) | — | (6 | ) | (37 | ) | ||||||||
Balance, September 30, 2013 | $ | (2,112 | ) | $ | (26 | ) | $ | (156 | ) | $ | 4 | $ | (2,290 | ) | |||
Deferred | Pension and Other | Unrealized | Accumulated | ||||||||||||||
Foreign Exchange | Gains (Losses) | Postretirement | Gains (Losses) | Other | |||||||||||||
Translation | on Hedging | Liability | on | Comprehensive | |||||||||||||
(US$ in millions) | Adjustment | Activities | Adjustments | Investments | Income (Loss) | ||||||||||||
Balance, January 1, 2014 | $ | (2,486 | ) | $ | (22 | ) | $ | (69 | ) | $ | 5 | $ | (2,572 | ) | |||
Other comprehensive income (loss) before reclassifications | (671 | ) | 13 | (1 | ) | (2 | ) | (661 | ) | ||||||||
Amount reclassified from accumulated other comprehensive income | — | (11 | ) | — | — | (11 | ) | ||||||||||
Balance, September 30, 2014 | $ | (3,157 | ) | $ | (20 | ) | $ | (70 | ) | $ | 3 | $ | (3,244 | ) | |||
Deferred | Pension and Other | Unrealized | Accumulated | ||||||||||||||
Foreign Exchange | Gains (Losses) | Postretirement | Gains (Losses) | Other | |||||||||||||
Translation | on Hedging | Liability | on | Comprehensive | |||||||||||||
(US$ in millions) | Adjustment | Activities | Adjustments | Investments | Income (Loss) | ||||||||||||
Balance, January 1, 2013 | $ | (1,265 | ) | $ | 3 | $ | (157 | ) | $ | 9 | $ | (1,410 | ) | ||||
Other comprehensive income (loss) before reclassifications | (843 | ) | (2 | ) | 1 | 4 | (840 | ) | |||||||||
Amount reclassified from accumulated other comprehensive income (1) | (4 | ) | (27 | ) | — | (9 | ) | (40 | ) | ||||||||
Balance, September 30, 2013 | $ | (2,112 | ) | $ | (26 | ) | $ | (156 | ) | $ | 4 | $ | (2,290 | ) | |||
(1) Certain items were reclassified to gain on sale of the Brazilian fertilizer distribution business in the condensed consolidated statements of income as a result of the substantial liquidation arising from the sale of that business during the three months ended September 30, 2013. Such items included $4 million of cumulative translation adjustments related to that business as well as $37 million of gains related to net investment hedges related to that business. | |||||||||||||||||
EARNINGS_PER_COMMON_SHARE
EARNINGS PER COMMON SHARE | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
EARNINGS PER COMMON SHARE | ' | |||||||||||||
EARNINGS PER COMMON SHARE | ' | |||||||||||||
16. EARNINGS PER COMMON SHARE | ||||||||||||||
The following table sets forth the computation of basic and diluted earnings per common share. | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
(US$ in millions, except for share data) | 2014 | 2013 | 2014 | 2013 | ||||||||||
Income from continuing operations | $ | 277 | $ | (296 | ) | $ | 525 | $ | (17 | ) | ||||
Net (income) loss attributable to noncontrolling interests | (10 | ) | 45 | 7 | 91 | |||||||||
Income (loss) from continuing operations attributable to Bunge | 267 | (251 | ) | 532 | 74 | |||||||||
Other redeemable obligations (1) | (2 | ) | (9 | ) | (15 | ) | (28 | ) | ||||||
Convertible preference share dividends | (8 | ) | (8 | ) | (25 | ) | (25 | ) | ||||||
Income (loss) from discontinued operations, net of tax | 27 | 103 | 37 | 94 | ||||||||||
Net income (loss) available to Bunge common shareholders | $ | 284 | $ | (165 | ) | $ | 529 | $ | 115 | |||||
Weighted-average number of common shares outstanding: | ||||||||||||||
Basic | 145,528,313 | 147,349,175 | 146,493,870 | 147,044,232 | ||||||||||
Effect of dilutive shares: | ||||||||||||||
—stock options and awards | 981,122 | — | 958,505 | 981,920 | ||||||||||
—convertible preference shares | 7,680,390 | — | 7,680,390 | — | ||||||||||
Diluted (2) | 154,189,825 | 147,349,175 | 155,132,765 | 148,026,152 | ||||||||||
Basic earnings per common share: | ||||||||||||||
Net income (loss) from continuing operations | $ | 1.77 | $ | (1.82 | ) | $ | 3.36 | $ | 0.14 | |||||
Net income (loss) from discontinued operations | 0.19 | 0.69 | 0.25 | 0.64 | ||||||||||
Net income (loss) to Bunge common shareholders—basic | $ | 1.96 | $ | (1.13 | ) | $ | 3.61 | $ | 0.78 | |||||
Diluted earnings per common share: | ||||||||||||||
Net income (loss) from continuing operations | $ | 1.73 | $ | (1.82 | ) | $ | 3.34 | $ | 0.14 | |||||
Net income (loss) from discontinued operations | 0.17 | 0.69 | 0.24 | 0.64 | ||||||||||
Net income (loss) to Bunge common shareholders—diluted | $ | 1.9 | $ | (1.13 | ) | $ | 3.58 | $ | 0.78 | |||||
(1) Accretion of redeemable noncontrolling interest of $2 million and $9 million for the three months ended September 30, 2014 and 2013, respectively, and $15 million and $28 million for the nine months ended September 30, 2014 and 2013, respectively, relates to a non-fair value variable put arrangement whereby the noncontrolling interest holder may require Bunge to purchase the remaining shares of an oilseed processing operation in Central and Eastern Europe. Accretion for the respective periods includes the effect of losses incurred by the operations for the three and nine months ended September 30, 2014, and 2013, respectively. | ||||||||||||||
(2) Approximately 3 million and 3 million outstanding stock options and contingently issuable restricted stock units were not dilutive and not included in the weighted-average number of common shares outstanding for the three and nine months ended September 30, 2013, respectively. The three months ended September 30, 2013 excludes the dilutive effect of approximately 1 million incremental common shares and for the three and nine months ended September 30, 2013 excludes 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. Approximately 2 million and 3 million outstanding stock options and contingently issuable restricted stock units were not dilutive and not included in the weighted-average number of common shares outstanding for the three and nine months ended September 30, 2014, respectively. | ||||||||||||||
SEGMENT_INFORMATION
SEGMENT INFORMATION | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||
SEGMENT INFORMATION | ' | ||||||||||||||||||||||
SEGMENT INFORMATION | ' | ||||||||||||||||||||||
17. 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, 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 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 revenues generated from these transfers are shown in the following table as “Inter-segment revenues” segments. | |||||||||||||||||||||||
(US$ in millions) | |||||||||||||||||||||||
Edible | Discontinued | ||||||||||||||||||||||
Three Months Ended | Oil | Milling | Sugar and | Operations & | |||||||||||||||||||
September 30, 2014 | Agribusiness | Products | Products | Bioenergy | Fertilizer | Unallocated (1) | Total | ||||||||||||||||
Net sales to external customers | $ | 9,835 | $ | 2,016 | $ | 516 | $ | 1,154 | $ | 155 | $ | — | $ | 13,676 | |||||||||
Inter—segment revenues | 1,205 | 37 | 36 | — | 1 | (1,279 | ) | — | |||||||||||||||
Gross profit | 423 | 135 | 78 | 64 | 19 | — | 719 | ||||||||||||||||
Foreign exchange gains (losses) | 13 | (3 | ) | (2 | ) | 13 | 2 | — | 23 | ||||||||||||||
Noncontrolling interests (1) | (14 | ) | (3 | ) | — | (2 | ) | (2 | ) | 11 | (10 | ) | |||||||||||
Other income (expense) — net | (5 | ) | (1 | ) | — | 6 | (2 | ) | — | (2 | ) | ||||||||||||
Segment EBIT (2) | 186 | 37 | 37 | 44 | 12 | — | 316 | ||||||||||||||||
Discontinued operations (3) | — | — | — | — | — | 27 | 27 | ||||||||||||||||
Depreciation, depletion and amortization | (63 | ) | (24 | ) | (12 | ) | (59 | ) | (4 | ) | — | (162 | ) | ||||||||||
Total assets | $ | 16,487 | $ | 2,317 | $ | 1,258 | $ | 3,424 | $ | 385 | $ | 274 | $ | 24,145 | |||||||||
Three Months Ended | |||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||
Net sales to external customers | $ | 10,718 | $ | 2,225 | $ | 487 | $ | 1,133 | $ | 138 | $ | — | $ | 14,701 | |||||||||
Inter—segment revenues | 1,230 | 37 | — | 28 | 4 | (1,299 | ) | — | |||||||||||||||
Gross profit | 484 | 127 | 61 | (2 | ) | 18 | — | 688 | |||||||||||||||
Foreign exchange gains (losses) | 38 | 7 | (1 | ) | 2 | 3 | — | 49 | |||||||||||||||
Noncontrolling interests (1) | 2 | (2 | ) | — | 2 | (2 | ) | 45 | 45 | ||||||||||||||
Other income (expense) — net | 10 | 1 | — | 1 | 4 | — | 16 | ||||||||||||||||
Segment EBIT (2) | 326 | 43 | 24 | (37 | ) | 15 | — | 371 | |||||||||||||||
Discontinued operations (3) | — | — | — | — | — | 103 | 103 | ||||||||||||||||
Depreciation, depletion and amortization | (63 | ) | (25 | ) | (6 | ) | (54 | ) | (5 | ) | — | (153 | ) | ||||||||||
Total assets | $ | 19,904 | $ | 2,514 | $ | 875 | $ | 3,695 | $ | 513 | $ | 999 | $ | 28,500 | |||||||||
Edible | Discontinued | ||||||||||||||||||||||
Nine Months Ended | Oil | Milling | Sugar and | Operations & | |||||||||||||||||||
September 30, 2014 | Agribusiness | Products | Products | Bioenergy | Fertilizer | Unallocated (1) | Total | ||||||||||||||||
Net sales to external customers | $ | 32,783 | $ | 6,043 | $ | 1,604 | $ | 3,184 | $ | 316 | $ | — | $ | 43,930 | |||||||||
Inter—segment revenues | 2,935 | 115 | 40 | — | 2 | (3,092 | ) | — | |||||||||||||||
Gross profit | 1,198 | 399 | 235 | 54 | 40 | — | 1,926 | ||||||||||||||||
Foreign exchange gains (losses) | 32 | (3 | ) | (2 | ) | 31 | 1 | — | 59 | ||||||||||||||
Noncontrolling interests (1) | (11 | ) | (5 | ) | — | — | (4 | ) | 27 | 7 | |||||||||||||
Other income (expense) — net | (6 | ) | — | (2 | ) | 14 | (1 | ) | — | 5 | |||||||||||||
Segment EBIT (2) | 576 | 105 | 113 | (14 | ) | 29 | — | 809 | |||||||||||||||
Discontinued operations (3) | — | — | — | — | — | 37 | 37 | ||||||||||||||||
Depreciation, depletion and amortization | (177 | ) | (73 | ) | (36 | ) | (150 | ) | (12 | ) | — | (448 | ) | ||||||||||
Total assets | $ | 16,487 | $ | 2,317 | $ | 1,258 | $ | 3,424 | $ | 385 | $ | 274 | $ | 24,145 | |||||||||
Nine Months Ended | |||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||
Net sales to external customers | $ | 33,058 | $ | 6,898 | $ | 1,531 | $ | 3,185 | $ | 300 | $ | — | $ | 44,972 | |||||||||
Inter—segment revenues | 3,886 | 96 | 9 | 28 | 42 | (4,061 | ) | — | |||||||||||||||
Gross profit | 1,252 | 380 | 185 | 89 | 44 | — | 1,950 | ||||||||||||||||
Foreign exchange gains (losses) | (5 | ) | 6 | (1 | ) | 2 | 5 | — | 7 | ||||||||||||||
Noncontrolling interests (1) | 32 | (3 | ) | — | 5 | (3 | ) | 60 | 91 | ||||||||||||||
Other income (expense) — net | 7 | 9 | 5 | 3 | 37 | — | 61 | ||||||||||||||||
Segment EBIT (2) | 686 | 115 | 89 | (17 | ) | 60 | — | 933 | |||||||||||||||
Discontinued operations (3) | — | — | — | — | — | 94 | 94 | ||||||||||||||||
Depreciation, depletion and amortization | (181 | ) | (74 | ) | (21 | ) | (133 | ) | (14 | ) | — | (423 | ) | ||||||||||
Total assets | $ | 19,904 | $ | 2,514 | $ | 875 | $ | 3,695 | $ | 513 | $ | 999 | $ | 28,500 | |||||||||
(1) Includes noncontrolling interests share of interest and tax to reconcile to consolidated noncontrolling interest. | |||||||||||||||||||||||
(2) Total segment earnings before interest and taxes (EBIT) is an operating performance measure used by Bunge’s management to evaluate segment operating activities. Bunge’s management believes total segment EBIT is a useful measure of operating profitability, since the measure allows for an evaluation of the performance of its segments without regard to its financing methods or capital structure. In addition, EBIT is a financial measure that is widely used by analysts and investors in Bunge’s industries. | |||||||||||||||||||||||
(3) Represents net income (loss) from discontinued operations. | |||||||||||||||||||||||
A reconciliation of total segment EBIT to net income attributable to Bunge follows: | |||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
(US$ in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
Total segment EBIT from continuing operations | $ | 316 | $ | 371 | $ | 809 | $ | 933 | |||||||||||||||
Interest income | 19 | 27 | 71 | 47 | |||||||||||||||||||
Interest expense | (70 | ) | (103 | ) | (225 | ) | (264 | ) | |||||||||||||||
Income tax (expense) benefit | (9 | ) | (591 | ) | (150 | ) | (702 | ) | |||||||||||||||
Income (loss) from discontinued operations, net of tax | 27 | 103 | 37 | 94 | |||||||||||||||||||
Noncontrolling interests’ share of interest and tax | 11 | 45 | 27 | 60 | |||||||||||||||||||
Net income (loss) attributable to Bunge | $ | 294 | $ | (148 | ) | $ | 569 | $ | 168 | ||||||||||||||
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2014 | |
SUBSEQUENT EVENTS | ' |
SUBSEQUENT EVENTS | ' |
18. SUBSEQUENT EVENT | |
On October 16, 2014, Brazil’s Supreme Federal Court (the Court) ruled that certain state ICMS tax credits related to staple foods, including soy oil, margarine, mayonnaise and wheat flours, are unconstitutional. The products and their inputs that are relevant to this legal position are those that are acquired at a certain ICMS tax rate from one state and sold at an effective lower ICMS tax rate in a different state. Companies have historically taken a tax credit for the difference of the ICMS rates in the different states. Bunge is, like other companies in the Brazilian food industry, involved in several administrative and judicial disputes with Brazilian states regarding these tax credits. The total amount currently in dispute is approximately 400 million Brazilian reals ($163 million at September 30, 2014). The Court has not yet published its opinion in the case, which is expected within thirty to sixty days after the ruling. Management, along with external legal advisers, had previously categorized these various state cases as possible losses, not reaching a threshold of probable. Management and its external legal advisors recognize that Bunge’s facts may differ from the aforementioned case and that state laws may differ. As a result, the published opinion of the Court, when rendered, must be analyzed for its implications on all of Bunge’s various state proceedings. Based on its analysis, management continues to assess the risk of loss as possible and will reassess the risk upon examination of the Court’s forthcoming ruling. If the outcome of such analysis is that it is probable that the Company's positions will not prevail, Bunge will record a liability and a charge to earnings for an appropriate amount. | |
BASIS_OF_PRESENTATION_AND_PRIN1
BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION | ' |
Basis of Presentation and Principles of Consolidation | ' |
BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION | |
The accompanying unaudited condensed consolidated financial statements include the accounts of Bunge Limited (Bunge), its subsidiaries and variable interest entities (VIEs) in which Bunge is considered to be the primary beneficiary, and as a result, include the assets, liabilities, revenues and expenses of all entities over which Bunge exercises control. The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X under the Securities Exchange Act of 1934, as amended (Exchange Act). Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to Securities and Exchange Commission (SEC) rules. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation have been included. The condensed consolidated balance sheet at December 31, 2013 has been derived from Bunge’s audited consolidated financial statements at that date. Operating results for the nine months ended September 30, 2014 are not necessarily indicative of the results to be expected for the year ending December 31, 2014. The financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2013, forming part of Bunge’s 2013 Annual Report on Form 10-K filed with the SEC on February 28, 2014 |
ACCOUNTING_PRONOUNCEMENTS_Poli
ACCOUNTING PRONOUNCEMENTS (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
ACCOUNTING PRONOUNCEMENTS | ' |
Adoption of Accounting Pronouncements | ' |
ACCOUNTING PRONOUNCEMENTS | |
Adoption of Accounting Pronouncements — In July 2013, the Financial Accounting Standards Board (FASB) issued guidance in ASC (Topic 740) Income Taxes. Topic 740 provides guidance regarding the presentation of an unrecognized tax benefit when a net operating loss carry forward, a similar tax loss, or a tax credit carry forward exists at the reporting date. The adoption of this amendment on January 1, 2014 did not have a significant impact on Bunge’s condensed consolidated financial statements. | |
In February 2013, the FASB issued guidance in ASC (Topic 405) Liabilities: Obligations Resulting from Joint and Several Liability Arrangements for which the Total Amount of the Obligation Is Fixed at the Reporting Date. The amended guidance addresses the recognition, measurement, and disclosure of certain obligations resulting from joint and several arrangements including debt arrangements, other contractual obligations, and settled litigation and judicial rulings. The adoption of this amendment on January 1, 2014 did not have a significant impact on Bunge’s condensed consolidated financial statements. | |
New Accounting Pronouncements — In August 2014, the FASB amended ASC (Topic 205) Presentation of Financial Statements-Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, to provide guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and to provide related footnote disclosures. This standard is effective for the annual period ending after December 15, 2016 and for annual periods and interim periods thereafter, with early adoption permitted. The adoption of this amendment is not expected to have any impact on Bunge’s condensed 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 standard is effective for interim and annual reporting periods beginning after December 15, 2016, including interim periods within that reporting. Early application is not permitted. Bunge is evaluating the expected impact of this standard on its condensed consolidated financial statements. | |
In April 2014, the FASB amended existing guidance in ASC (Topic 205) Presentation of Financial Statements and ASC (Topic 360) Property, Plant and Equipment: Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The amendments in this update improve the definition of discontinued operations by limiting discontinued operations reporting to disposals of components of an entity that represent strategic shifts that have (or will have) a major effect on an entity’s operations and financial results and requires expanded disclosures for such discontinued operations. The amendments in this update include several changes to Topic 360 to improve the organization and readability of Subtopic 205-20 and Subtopic 360-10, Property, Plant, and Equipment—Overall. The adoption of these amendments would potentially expand Bunge’s disclosures of any future discontinuance of operations. | |
INVENTORIES_Tables
INVENTORIES (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
INVENTORIES | ' | |||||||
Inventories by segment | ' | |||||||
(US$ in millions) | 2014 | 2013 | ||||||
Agribusiness (1) | $ | 3,777 | $ | 4,498 | ||||
Edible Oil Products (2) | 388 | 487 | ||||||
Milling Products | 215 | 210 | ||||||
Sugar and Bioenergy (3) | 507 | 549 | ||||||
Fertilizer | 100 | 52 | ||||||
Total | $ | 4,987 | $ | 5,796 | ||||
(1) Includes readily marketable inventories of $3,671 million and $4,325 million at September 30, 2014 and December 31, 2013, respectively. Of these amounts $2,688 million and $2,927 million can be attributable to merchandising activities at September 30, 2014 and December 31, 2013, respectively. | ||||||||
(2) Includes readily marketable inventories of bulk soybean and canola oil in the aggregate amount of $103 million and $138 million at September 30, 2014 and December 31, 2013, respectively. | ||||||||
(3) Includes readily marketable inventories of $179 million and $215 million at September 30, 2014 and December 31, 2013, respectively. Of these sugar inventories, $105 million and $137 million, respectively, can be attributable to trading and merchandising business. Sugar and ethanol inventories in Bunge’s industrial production business are carried at lower of cost or market. | ||||||||
OTHER_CURRENT_ASSETS_Tables
OTHER CURRENT ASSETS (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
OTHER CURRENT ASSETS | ' | |||||||
Other current assets | ' | |||||||
September 30, | December 31, | |||||||
(US$ in millions) | 2014 | 2013 | ||||||
Prepaid commodity purchase contracts (1) | $ | 265 | $ | 220 | ||||
Secured advances to suppliers, net (2) | 489 | 555 | ||||||
Unrealized gains on derivative contracts, at fair value | 2,033 | 1,561 | ||||||
Recoverable taxes, net | 452 | 442 | ||||||
Margin deposits (3) | 216 | 305 | ||||||
Marketable securities, at fair value | 108 | 162 | ||||||
Deferred purchase price receivable, at fair value (4) | 77 | 96 | ||||||
Prepaid expenses | 230 | 261 | ||||||
Other | 673 | 835 | ||||||
Total | $ | 4,543 | $ | 4,437 | ||||
(1) Prepaid commodity purchase contracts represent advance payments against fixed price 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 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 $9 million and $20 million at September 30, 2014 and December 31, 2013, respectively. | ||||||||
Interest earned on secured advances to suppliers of $8 million and $7 million for the three months ended September 30, 2014 and 2013, respectively, and $27 million and $22 million for the nine months ended September 30, 2014 and 2013, respectively, is included in net sales in the condensed consolidated statements of income. | ||||||||
(3) Margin deposits include U.S. treasury securities at fair value and cash. | ||||||||
(4) Deferred purchase price receivable represents additional credit support for the investment conduits in Bunge’s accounts receivables sales program (see Note 12). | ||||||||
OTHER_NONCURRENT_ASSETS_Tables
OTHER NON-CURRENT ASSETS (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
OTHER NON-CURRENT ASSETS | ' | |||||||||||||
Schedule of other non-current assets | ' | |||||||||||||
September 30, | December 31, | |||||||||||||
(US$ in millions) | 2014 | 2013 | ||||||||||||
Recoverable taxes, net (1) | $ | 268 | $ | 283 | ||||||||||
Judicial deposits (1) | 155 | 153 | ||||||||||||
Other long-term receivables | 36 | 40 | ||||||||||||
Income taxes receivable (1) | 254 | 304 | ||||||||||||
Long-term investments | 291 | 296 | ||||||||||||
Affiliate loans receivable, net | 54 | 25 | ||||||||||||
Long-term receivables from farmers in Brazil, net (1) | 105 | 134 | ||||||||||||
Other | 153 | 176 | ||||||||||||
Total | $ | 1,316 | $ | 1,411 | ||||||||||
(1) These non-current assets arise primarily from our Brazilian operations and their realization could take in excess of five years. | ||||||||||||||
Long-term receivables from Brazilian farmers | ' | |||||||||||||
September 30, | December 31, | |||||||||||||
(US$ in millions) | 2014 | 2013 | ||||||||||||
Legal collection process (1) | $ | 186 | $ | 213 | ||||||||||
Renegotiated amounts (2) | 75 | 117 | ||||||||||||
Total | $ | 261 | $ | 330 | ||||||||||
(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 | ' | |||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||
Recorded | Recorded | |||||||||||||
(US$ in millions) | Investment | Allowance | Investment | Allowance | ||||||||||
For which an allowance has been provided: | ||||||||||||||
Legal collection process | $ | 110 | $ | 103 | $ | 139 | $ | 132 | ||||||
Renegotiated amounts | 54 | 53 | 84 | 64 | ||||||||||
For which no allowance has been provided: | — | |||||||||||||
Legal collection process | 76 | — | 74 | — | ||||||||||
Renegotiated amounts | 21 | — | 33 | — | ||||||||||
Total | $ | 261 | $ | 156 | $ | 330 | $ | 196 | ||||||
Summary of the activity in the allowance for doubtful accounts related to long-term receivables from Brazilian farmers | ' | |||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
(US$ in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||
Beginning balance | $ | 176 | $ | 209 | $ | 196 | $ | 224 | ||||||
Bad debt provisions | 3 | 3 | 5 | 16 | ||||||||||
Recoveries | (6 | ) | (3 | ) | (21 | ) | (14 | ) | ||||||
Write-offs | — | (1 | ) | (21 | ) | (2 | ) | |||||||
Transfers | — | 3 | 4 | 5 | ||||||||||
Foreign exchange translation | (17 | ) | (1 | ) | (7 | ) | (19 | ) | ||||||
Ending balance | $ | 156 | $ | 210 | $ | 156 | $ | 210 | ||||||
OTHER_CURRENT_LIABILITIES_Tabl
OTHER CURRENT LIABILITIES (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
OTHER CURRENT LIABILITIES | ' | |||||||
Other current liabilities | ' | |||||||
September 30, | December 31, | |||||||
(US$ in millions) | 2014 | 2013 | ||||||
Accrued liabilities | $ | 743 | $ | 792 | ||||
Unrealized losses on derivative contracts at fair value | 1,567 | 1,401 | ||||||
Advances on sales | 212 | 330 | ||||||
Other | 337 | 495 | ||||||
Total | $ | 2,859 | $ | 3,018 | ||||
FINANCIAL_INSTRUMENTS_AND_FAIR1
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||
(US$ in millions) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Readily marketable inventories (Note 5) | $ | — | $ | 3,569 | $ | 310 | $ | 3,879 | $ | — | $ | 4,302 | $ | 298 | $ | 4,600 | ||||||||||
Trade accounts receivable(1) | — | 7 | — | 7 | — | 5 | 1 | 6 | ||||||||||||||||||
Unrealized gain on designated derivative contracts(2): | ||||||||||||||||||||||||||
Foreign exchange | — | 24 | — | 24 | — | 7 | — | 7 | ||||||||||||||||||
Unrealized gain on undesignated derivative contracts (2): | ||||||||||||||||||||||||||
Foreign exchange | 10 | 281 | — | 291 | 5 | 346 | — | 351 | ||||||||||||||||||
Commodities | 548 | 1,002 | 74 | 1,624 | 408 | 585 | 138 | 1,131 | ||||||||||||||||||
Freight | 75 | 2 | — | 77 | 59 | — | — | 59 | ||||||||||||||||||
Energy | 14 | — | 3 | 17 | 11 | — | 2 | 13 | ||||||||||||||||||
Deferred purchase price receivable (Note 12) | — | 77 | — | 77 | — | 96 | — | 96 | ||||||||||||||||||
Other (3) | 65 | 79 | — | 144 | 59 | 22 | — | 81 | ||||||||||||||||||
Total assets | $ | 712 | $ | 5,041 | $ | 387 | $ | 6,140 | $ | 542 | $ | 5,363 | $ | 439 | $ | 6,344 | ||||||||||
Fair Value Measurements at Reporting Date | ||||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Trade accounts payable(1) | $ | — | $ | 407 | $ | 60 | $ | 467 | $ | — | $ | 381 | $ | 76 | $ | 457 | ||||||||||
Unrealized loss on designated derivative contracts (4): | ||||||||||||||||||||||||||
Foreign exchange | — | 4 | — | 4 | — | 11 | — | 11 | ||||||||||||||||||
Unrealized loss on undesignated derivative contracts (4): | ||||||||||||||||||||||||||
Foreign exchange | 29 | 278 | — | 307 | 5 | 373 | — | 378 | ||||||||||||||||||
Commodities | 449 | 602 | 77 | 1,128 | 361 | 439 | 89 | 889 | ||||||||||||||||||
Freight | 77 | — | 6 | 83 | 81 | — | 14 | 95 | ||||||||||||||||||
Energy | 27 | — | 18 | 45 | 11 | — | 17 | 28 | ||||||||||||||||||
Total liabilities | $ | 582 | $ | 1,291 | $ | 161 | $ | 2,034 | $ | 458 | $ | 1,204 | $ | 196 | $ | 1,858 | ||||||||||
(1) Trade accounts receivable and payable are generally accounted for at amortized cost, with the exception of $7 million and $467 million, at September 30, 2014 and $6 million and $457 million at December 31, 2013, respectively, related to certain delivered inventory for which the receivable and payable, respectively, fluctuate based on changes in commodity prices. These receivables and payables are hybrid financial instruments for which Bunge has elected the fair value option. | ||||||||||||||||||||||||||
(2) Unrealized gains on designated and undesignated derivative contracts are generally included in other current assets. There are no such amounts included in other non-current assets at September 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||||||||
(3) Other includes the fair values of marketable securities and investments in other current assets and other non-current assets. | ||||||||||||||||||||||||||
(4) Unrealized losses on designated and undesignated derivative contracts are generally included in other current liabilities. There are no such amounts included in other non-current liabilities at September 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||||||||
Reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | ' | |||||||||||||||||||||||||
Level 3 Instruments | ||||||||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||||||||
Three Months Ended September 30, 2014 | ||||||||||||||||||||||||||
Readily | Trade Accounts | |||||||||||||||||||||||||
Derivatives, | Marketable | Receivable/ | ||||||||||||||||||||||||
(US$ in millions) | Net (1) | Inventories | Payable, Net(2) | Total | ||||||||||||||||||||||
Balance, July 1, 2014 | $ | (13 | ) | $ | 873 | $ | (120 | ) | $ | 740 | ||||||||||||||||
Total gains and losses (realized/unrealized) included in cost of goods sold | (12 | ) | (39 | ) | 1 | (50 | ) | |||||||||||||||||||
Purchases | (8 | ) | 254 | (4 | ) | 242 | ||||||||||||||||||||
Sales | 4 | (943 | ) | — | (939 | ) | ||||||||||||||||||||
Issuances | 20 | — | (7 | ) | 13 | |||||||||||||||||||||
Settlements | (47 | ) | — | 84 | 37 | |||||||||||||||||||||
Transfers into Level 3 | 27 | 171 | (3 | ) | 195 | |||||||||||||||||||||
Transfers out of Level 3 | 5 | (6 | ) | (11 | ) | (12 | ) | |||||||||||||||||||
Balance, September 30, 2014 | $ | (24 | ) | $ | 310 | $ | (60 | ) | $ | 226 | ||||||||||||||||
(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 | ||||||||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||||||||
Trade | ||||||||||||||||||||||||||
Readily | Accounts | |||||||||||||||||||||||||
Derivatives, | Marketable | Receivable/ | ||||||||||||||||||||||||
(US$ in millions) | Net (1) | Inventories | Payable, Net (2) | Total | ||||||||||||||||||||||
Balance, July 1, 2013 | $ | 89 | $ | 1,220 | $ | (521 | ) | $ | 788 | |||||||||||||||||
Total gains and losses (realized/unrealized) included in cost of goods sold | (50 | ) | (103 | ) | 1 | (152 | ) | |||||||||||||||||||
Purchases | — | 385 | — | 385 | ||||||||||||||||||||||
Sales | — | (905 | ) | 6 | (899 | ) | ||||||||||||||||||||
Issuances | (2 | ) | — | — | (2 | ) | ||||||||||||||||||||
Settlements | (40 | ) | — | 526 | 486 | |||||||||||||||||||||
Transfers into Level 3 | 2 | 265 | — | 267 | ||||||||||||||||||||||
Transfers out of Level 3 | (24 | ) | (8 | ) | (119 | ) | (151 | ) | ||||||||||||||||||
Balance, September 30, 2013 | $ | (25 | ) | $ | 854 | $ | (107 | ) | $ | 722 | ||||||||||||||||
(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 | ||||||||||||||||||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||||||||
Readily | Trade Accounts | |||||||||||||||||||||||||
Derivatives, | Marketable | Receivable/ | ||||||||||||||||||||||||
(US$ in millions) | Net (1) | Inventories | Payable, Net(2) | Total | ||||||||||||||||||||||
Balance, January 1, 2014 | $ | 20 | $ | 298 | $ | (75 | ) | $ | 243 | |||||||||||||||||
Total gains and losses (realized/unrealized) included in cost of goods sold | 65 | 8 | 2 | 75 | ||||||||||||||||||||||
Purchases | 5 | 1,804 | (5 | ) | 1,804 | |||||||||||||||||||||
Sales | — | (2,176 | ) | 8 | (2,168 | ) | ||||||||||||||||||||
Issuances | 19 | — | (400 | ) | (381 | ) | ||||||||||||||||||||
Settlements | (189 | ) | — | 492 | 303 | |||||||||||||||||||||
Transfers into Level 3 | 21 | 534 | (11 | ) | 544 | |||||||||||||||||||||
Transfers out of Level 3 | 35 | (158 | ) | (71 | ) | (194 | ) | |||||||||||||||||||
Balance, September 30, 2014 | $ | (24 | ) | $ | 310 | $ | (60 | ) | $ | 226 | ||||||||||||||||
(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 | ||||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||
Readily | Trade Accounts | |||||||||||||||||||||||||
Derivatives, | Marketable | Receivable/ | ||||||||||||||||||||||||
(US$ in millions) | Net (1) | Inventories | Payable, Net (2) | Total | ||||||||||||||||||||||
Balance, January 1, 2013 | $ | 66 | $ | 436 | $ | (40 | ) | $ | 462 | |||||||||||||||||
Total gains and losses (realized/unrealized) included in cost of goods sold | 49 | (185 | ) | 69 | (67 | ) | ||||||||||||||||||||
Purchases | — | 1,598 | — | 1,598 | ||||||||||||||||||||||
Sales | 1 | (1,410 | ) | 9 | (1,400 | ) | ||||||||||||||||||||
Issuances | (4 | ) | — | (508 | ) | (512 | ) | |||||||||||||||||||
Settlements | (222 | ) | — | 545 | 323 | |||||||||||||||||||||
Transfers into Level 3 | 102 | 575 | (58 | ) | 619 | |||||||||||||||||||||
Transfers out of Level 3 | (17 | ) | (160 | ) | (124 | ) | (301 | ) | ||||||||||||||||||
Balance, September 30, 2013 | $ | (25 | ) | $ | 854 | $ | (107 | ) | $ | 722 | ||||||||||||||||
(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 | ||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||
Readily | Trade Accounts | |||||||||||||||||||||||||
Derivatives, | Marketable | Receivable and | ||||||||||||||||||||||||
(US$ in millions) | Net (1) | Inventories | Payable, Net(2) | Total | ||||||||||||||||||||||
Changes in unrealized gains and (losses) relating to assets and liabilities held at September 30, 2014 | ||||||||||||||||||||||||||
Cost of goods sold | $ | (7 | ) | $ | (19 | ) | $ | 1 | $ | (25 | ) | |||||||||||||||
Changes in unrealized gains and (losses) relating to assets and liabilities held at September 30, 2013 | ||||||||||||||||||||||||||
Cost of goods sold | $ | (55 | ) | $ | 145 | $ | 7 | $ | 97 | |||||||||||||||||
(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 | ||||||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||
Readily | Trade Accounts | |||||||||||||||||||||||||
Derivatives, | Marketable | Receivable and | ||||||||||||||||||||||||
(US$ in millions) | Net (1) | Inventories | Payable, Net(2) | Total | ||||||||||||||||||||||
Changes in unrealized gains and (losses) relating to assets and liabilities held at September 30, 2014 | ||||||||||||||||||||||||||
Cost of goods sold | $ | 48 | $ | (43 | ) | $ | 4 | $ | 9 | |||||||||||||||||
Changes in unrealized gains and (losses) relating to assets and liabilities held at September 30, 2013 | ||||||||||||||||||||||||||
Cost of goods sold | $ | 56 | $ | 548 | $ | 9 | $ | 613 | ||||||||||||||||||
(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 condensed consolidated statements of income | ' | |||||||||||||||||||||||||
Gain or (Loss) Recognized in | ||||||||||||||||||||||||||
Income on Derivative | ||||||||||||||||||||||||||
Instruments | ||||||||||||||||||||||||||
Nine Months Ended September | ||||||||||||||||||||||||||
30, | ||||||||||||||||||||||||||
(US$ in millions) | Location | 2014 | 2013 | |||||||||||||||||||||||
Undesignated Derivative Contracts: | ||||||||||||||||||||||||||
Foreign Exchange | Foreign exchange gains (losses) | $ | 28 | $ | (131 | ) | ||||||||||||||||||||
Foreign Exchange | Cost of goods sold | 113 | 156 | |||||||||||||||||||||||
Commodities | Cost of goods sold | 383 | 299 | |||||||||||||||||||||||
Freight | Cost of goods sold | (1 | ) | (31 | ) | |||||||||||||||||||||
Energy | Cost of goods sold | (15 | ) | 2 | ||||||||||||||||||||||
Total | $ | 508 | $ | 295 | ||||||||||||||||||||||
Summary of effect of derivative instruments designated as cash flow and net investment hedges | ' | |||||||||||||||||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||||||||
Gain or | Gain or (Loss) | |||||||||||||||||||||||||
(Loss) | Reclassified from | |||||||||||||||||||||||||
Recognized in | Accumulated OCI into | Gain or (Loss) Recognized | ||||||||||||||||||||||||
Notional | Accumulated | Income (1) | in Income on Derivatives | |||||||||||||||||||||||
(US$ in millions) | Amount | OCI (1) | Location | Amount | Location | Amount (2) | ||||||||||||||||||||
Cash Flow Hedge: | ||||||||||||||||||||||||||
Foreign Exchange (3) | $ | 148 | $ | 19 | Foreign exchange gains (losses) | $ | 11 | Cost of goods sold | $ | — | ||||||||||||||||
Total | $ | 148 | $ | 19 | $ | 11 | $ | — | ||||||||||||||||||
Net Investment Hedge: | ||||||||||||||||||||||||||
Foreign Exchange (3) | $ | 557 | $ | (7 | ) | Foreign exchange gains (losses) | $ | — | Foreign exchange gains (losses) | $ | — | |||||||||||||||
Total | $ | 557 | $ | (7 | ) | $ | — | $ | — | |||||||||||||||||
(1) The gain (loss) recognized relates to the effective portion of the hedging relationship. At September 30, 2014, Bunge expects to reclassify into income in the next 12 months $19 million after-tax gain (loss) related to its foreign exchange cash flow hedges. | ||||||||||||||||||||||||||
(2) There was no gain or loss recognized in income relating to the ineffective portion of the hedging relationships or relating to amounts excluded from the assessment of hedge effectiveness. | ||||||||||||||||||||||||||
(3) The foreign exchange contracts mature at various dates in 2014 and 2015. | ||||||||||||||||||||||||||
The table below summarizes the effect of derivative instruments that are designated and qualify as cash flow hedges on the condensed consolidated statement of income for the nine months ended September 30, 2013. | ||||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||
Gain or | Gain or (Loss) | |||||||||||||||||||||||||
(Loss) | Reclassified from | |||||||||||||||||||||||||
Recognized in | Accumulated OCI into | Gain or (Loss) Recognized | ||||||||||||||||||||||||
Notional | Accumulated | Income (1) | in Income on Derivatives | |||||||||||||||||||||||
(US$ in millions) | Amount | OCI (1) | Location | Amount | Location | Amount (2) | ||||||||||||||||||||
Cash Flow Hedge: | ||||||||||||||||||||||||||
Foreign Exchange (3) | $ | 323 | $ | (11 | ) | Cost of goods sold | $ | (10 | ) | Cost of goods sold | $ | — | ||||||||||||||
Total | $ | 323 | $ | (11 | ) | $ | (10 | ) | $ | — | ||||||||||||||||
Net Investment Hedge: | ||||||||||||||||||||||||||
Foreign Exchange (3) | $ | 885 | $ | 8 | Foreign exchange gains (losses) | $ | — | Foreign exchange gains (losses) | $ | — | ||||||||||||||||
Total | $ | 885 | $ | 8 | $ | — | $ | — | ||||||||||||||||||
(1) The gain or (loss) recognized relates to the effective portion of the hedging relationship. At September 30, 2013, Bunge expected to reclassify into income in the next 12 months approximately $1 million of after-tax gains related to its foreign exchange cash flow hedges. At September 30, 2013, 2013, Bunge expects to reclassify into income in the next 12 months $29 million after-tax losses related to its foreign exchange net investment hedge. | ||||||||||||||||||||||||||
(2) There was no gain or loss recognized in income relating to the ineffective portion of the hedging relationships or to amounts excluded from the assessment of hedge effectiveness. | ||||||||||||||||||||||||||
(3) The foreign exchange contracts mature at various dates in 2013 and 2014. | ||||||||||||||||||||||||||
Interest rate derivative | ' | |||||||||||||||||||||||||
Derivative Instruments | ' | |||||||||||||||||||||||||
Summary of outstanding derivative instruments | ' | |||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||
Exchange Traded | ||||||||||||||||||||||||||
Net (Short) | ||||||||||||||||||||||||||
(US$ in millions) | & Long | |||||||||||||||||||||||||
Interest Rate Options | $ | 1 | ||||||||||||||||||||||||
Interest Rate Futures | $ | (5 | ) | |||||||||||||||||||||||
Foreign Exchange Derivatives | ' | |||||||||||||||||||||||||
Derivative Instruments | ' | |||||||||||||||||||||||||
Summary of outstanding derivative instruments | ' | |||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||
Exchange Traded | ||||||||||||||||||||||||||
Net (Short) | Non-exchange Traded | Unit of | ||||||||||||||||||||||||
(US$ in millions) | & Long (1) | (Short) (2) | Long (2) | Measure | ||||||||||||||||||||||
Foreign Exchange | ||||||||||||||||||||||||||
Options | $ | (12 | ) | $ | (531 | ) | $ | 310 | Delta | |||||||||||||||||
Forwards | 22 | (9,885 | ) | 10,850 | Notional | |||||||||||||||||||||
Futures | 1 | — | — | Notional | ||||||||||||||||||||||
Swaps | — | (11 | ) | 75 | Notional | |||||||||||||||||||||
(1) Exchange traded futures and options are presented on a net (short) and long position basis. | ||||||||||||||||||||||||||
(2) Non-exchange traded swaps, options and forwards are presented on a gross (short) and long position basis. | ||||||||||||||||||||||||||
Agricultural Commodity Derivatives | ' | |||||||||||||||||||||||||
Derivative Instruments | ' | |||||||||||||||||||||||||
Summary of outstanding derivative instruments | ' | |||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||
Exchange Traded | ||||||||||||||||||||||||||
Net (Short) & | Non-exchange Traded | Unit of | ||||||||||||||||||||||||
Long (1) | (Short) (2) | Long (2) | Measure | |||||||||||||||||||||||
Agricultural Commodities | ||||||||||||||||||||||||||
Futures | (3,389,089 | ) | — | — | Metric Tons | |||||||||||||||||||||
Options | (797,015 | ) | — | — | Metric Tons | |||||||||||||||||||||
Forwards | — | (37,244,377 | ) | 24,593,861 | Metric Tons | |||||||||||||||||||||
Swaps | — | (203,843 | ) | 234,597 | Metric Tons | |||||||||||||||||||||
(1) Exchange traded futures and options are presented on a net (short) and long position basis. | ||||||||||||||||||||||||||
(2) Non-exchange traded swaps, options and forwards are presented on a gross (short) and long position basis. | ||||||||||||||||||||||||||
Ocean Freight Derivatives | ' | |||||||||||||||||||||||||
Derivative Instruments | ' | |||||||||||||||||||||||||
Summary of outstanding derivative instruments | ' | |||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||
Exchange Cleared | ||||||||||||||||||||||||||
Net (Short) & | Non-exchange Cleared | Unit of | ||||||||||||||||||||||||
Long (1) | (Short) (2) | Long (2) | Measure | |||||||||||||||||||||||
Ocean Freight | ||||||||||||||||||||||||||
FFA | (941 | ) | — | — | Hire Days | |||||||||||||||||||||
FFA Options | (1,064 | ) | — | — | Hire Days | |||||||||||||||||||||
(1) Exchange cleared futures and options are presented on a net (short) and long position basis. | ||||||||||||||||||||||||||
(2) Non-exchange cleared options and forwards are presented on a gross (short) and long position basis. | ||||||||||||||||||||||||||
Energy Derivatives | ' | |||||||||||||||||||||||||
Derivative Instruments | ' | |||||||||||||||||||||||||
Summary of outstanding derivative instruments | ' | |||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||
Exchange Traded | ||||||||||||||||||||||||||
Net (Short) & | Non-exchange Cleared | Unit of | ||||||||||||||||||||||||
Long (1) | (Short) (2) | Long (2) | Measure (3) | |||||||||||||||||||||||
Natural Gas (3) | ||||||||||||||||||||||||||
Futures | 3,940,000 | — | — | MMBtus | ||||||||||||||||||||||
Swaps | — | — | 749,763 | MMBtus | ||||||||||||||||||||||
Options | 4,574 | — | — | MMBtus | ||||||||||||||||||||||
Energy—Other | ||||||||||||||||||||||||||
Futures | 1,471,683 | — | — | Metric Tons | ||||||||||||||||||||||
Forwards | — | (577,000 | ) | 36,298,790 | Metric Tons | |||||||||||||||||||||
Swaps | 235,000 | — | — | Metric Tons | ||||||||||||||||||||||
Options | 204,954 | — | — | Metric Tons | ||||||||||||||||||||||
(1) Exchange traded and exchange cleared futures and options are presented on a net (short) and long position basis. | ||||||||||||||||||||||||||
(2) Non-exchange cleared swaps, options and forwards are presented on a gross (short) and long position basis. | ||||||||||||||||||||||||||
(3) Million British Thermal Units (MMBtus) is the standard unit of measurement used to denote an amount of natural gas. | ||||||||||||||||||||||||||
DEBT_Tables
DEBT (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
DEBT | ' | |||||||||||||||||||
Schedule of carrying amounts and fair values of long-term debt | ' | |||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||
Carrying | Fair Value | Fair Value | Carrying | Fair Value | Fair Value | |||||||||||||||
(US$ in millions) | Value | (Level 2) | (Level 3) | Value | (Level 2) | (Level 3) | ||||||||||||||
Long-term debt, including current portion | $ | 3,234 | $ | 3,243 | $ | 215 | $ | 3,941 | $ | 3,917 | $ | 257 | ||||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
COMMITMENTS AND CONTINGENCIES | ' | |||||||
Liabilities related to general claims and lawsuits included in other non-current liabilities | ' | |||||||
September 30, | December 31, | |||||||
(US$ in millions) | 2014 | 2013 | ||||||
Tax claims | $ | 58 | $ | 59 | ||||
Labor claims | 84 | 76 | ||||||
Civil and other claims | 102 | 101 | ||||||
Total | $ | 244 | $ | 236 | ||||
Maximum potential future payments related to guarantees | ' | |||||||
Maximum | ||||||||
Potential | ||||||||
Future | ||||||||
(US$ in millions) | Payments | |||||||
Unconsolidated affiliates financing (1) | $ | 125 | ||||||
Residual value guarantee (2) | 121 | |||||||
Total | $ | 246 | ||||||
(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 2014 through 2021. There are no recourse provisions or collateral that would enable Bunge to recover any amounts paid under these guarantees. At September 30, 2014, Bunge had no outstanding recorded obligation related to these guarantees. | ||||||||
(2) 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 2016 through 2019. At September 30, 2014, Bunge’s recorded obligation related to these guarantees was $5 million. | ||||||||
EQUITY_Tables
EQUITY (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
EQUITY | ' | ||||||||||||||||
Schedule of after-tax components of accumulated other comprehensive income (loss) attributable to Bunge | ' | ||||||||||||||||
Deferred | Pension and Other | Unrealized | Accumulated | ||||||||||||||
Foreign Exchange | Gains (Losses) | Postretirement | Gains (Losses) | Other | |||||||||||||
Translation | on Hedging | Liability | on | Comprehensive | |||||||||||||
(US$ in millions) | Adjustment | Activities | Adjustments | Investments | Income (Loss) | ||||||||||||
Balance July 1, 2014 | $ | (2,147 | ) | $ | (42 | ) | $ | (70 | ) | $ | 5 | $ | (2,254 | ) | |||
Other comprehensive income (loss) before reclassifications | (1,010 | ) | 29 | — | (2 | ) | (983 | ) | |||||||||
Amount reclassified from accumulated other comprehensive income | — | (7 | ) | — | — | (7 | ) | ||||||||||
Balance, September 30, 2014 | $ | (3,157 | ) | $ | (20 | ) | $ | (70 | ) | $ | 3 | $ | (3,244 | ) | |||
Deferred | Pension and Other | Unrealized | Accumulated | ||||||||||||||
Foreign Exchange | Gains (Losses) | Postretirement | Gains (Losses) | Other | |||||||||||||
Translation | on Hedging | Liability | on | Comprehensive | |||||||||||||
(US$ in millions) | Adjustment | Activities | Adjustments | Investments | Income (Loss) | ||||||||||||
Balance July 1, 2013 | $ | (2,023 | ) | $ | 29 | $ | (155 | ) | $ | 10 | $ | (2,139 | ) | ||||
Other comprehensive income (loss) before reclassifications | (85 | ) | (28 | ) | (1 | ) | — | (114 | ) | ||||||||
Amount reclassified from accumulated other comprehensive income (1) | (4 | ) | (27 | ) | — | (6 | ) | (37 | ) | ||||||||
Balance, September 30, 2013 | $ | (2,112 | ) | $ | (26 | ) | $ | (156 | ) | $ | 4 | $ | (2,290 | ) | |||
Deferred | Pension and Other | Unrealized | Accumulated | ||||||||||||||
Foreign Exchange | Gains (Losses) | Postretirement | Gains (Losses) | Other | |||||||||||||
Translation | on Hedging | Liability | on | Comprehensive | |||||||||||||
(US$ in millions) | Adjustment | Activities | Adjustments | Investments | Income (Loss) | ||||||||||||
Balance, January 1, 2014 | $ | (2,486 | ) | $ | (22 | ) | $ | (69 | ) | $ | 5 | $ | (2,572 | ) | |||
Other comprehensive income (loss) before reclassifications | (671 | ) | 13 | (1 | ) | (2 | ) | (661 | ) | ||||||||
Amount reclassified from accumulated other comprehensive income | — | (11 | ) | — | — | (11 | ) | ||||||||||
Balance, September 30, 2014 | $ | (3,157 | ) | $ | (20 | ) | $ | (70 | ) | $ | 3 | $ | (3,244 | ) | |||
Deferred | Pension and Other | Unrealized | Accumulated | ||||||||||||||
Foreign Exchange | Gains (Losses) | Postretirement | Gains (Losses) | Other | |||||||||||||
Translation | on Hedging | Liability | on | Comprehensive | |||||||||||||
(US$ in millions) | Adjustment | Activities | Adjustments | Investments | Income (Loss) | ||||||||||||
Balance, January 1, 2013 | $ | (1,265 | ) | $ | 3 | $ | (157 | ) | $ | 9 | $ | (1,410 | ) | ||||
Other comprehensive income (loss) before reclassifications | (843 | ) | (2 | ) | 1 | 4 | (840 | ) | |||||||||
Amount reclassified from accumulated other comprehensive income (1) | (4 | ) | (27 | ) | — | (9 | ) | (40 | ) | ||||||||
Balance, September 30, 2013 | $ | (2,112 | ) | $ | (26 | ) | $ | (156 | ) | $ | 4 | $ | (2,290 | ) | |||
(1) Certain items were reclassified to gain on sale of the Brazilian fertilizer distribution business in the condensed consolidated statements of income as a result of the substantial liquidation arising from the sale of that business during the three months ended September 30, 2013. Such items included $4 million of cumulative translation adjustments related to that business as well as $37 million of gains related to net investment hedges related to that business. | |||||||||||||||||
EARNINGS_PER_COMMON_SHARE_Tabl
EARNINGS PER COMMON SHARE (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
EARNINGS PER COMMON SHARE | ' | |||||||||||||
Computation of basic and diluted earnings per common share | ' | |||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
(US$ in millions, except for share data) | 2014 | 2013 | 2014 | 2013 | ||||||||||
Income from continuing operations | $ | 277 | $ | (296 | ) | $ | 525 | $ | (17 | ) | ||||
Net (income) loss attributable to noncontrolling interests | (10 | ) | 45 | 7 | 91 | |||||||||
Income (loss) from continuing operations attributable to Bunge | 267 | (251 | ) | 532 | 74 | |||||||||
Other redeemable obligations (1) | (2 | ) | (9 | ) | (15 | ) | (28 | ) | ||||||
Convertible preference share dividends | (8 | ) | (8 | ) | (25 | ) | (25 | ) | ||||||
Income (loss) from discontinued operations, net of tax | 27 | 103 | 37 | 94 | ||||||||||
Net income (loss) available to Bunge common shareholders | $ | 284 | $ | (165 | ) | $ | 529 | $ | 115 | |||||
Weighted-average number of common shares outstanding: | ||||||||||||||
Basic | 145,528,313 | 147,349,175 | 146,493,870 | 147,044,232 | ||||||||||
Effect of dilutive shares: | ||||||||||||||
—stock options and awards | 981,122 | — | 958,505 | 981,920 | ||||||||||
—convertible preference shares | 7,680,390 | — | 7,680,390 | — | ||||||||||
Diluted (2) | 154,189,825 | 147,349,175 | 155,132,765 | 148,026,152 | ||||||||||
Basic earnings per common share: | ||||||||||||||
Net income (loss) from continuing operations | $ | 1.77 | $ | (1.82 | ) | $ | 3.36 | $ | 0.14 | |||||
Net income (loss) from discontinued operations | 0.19 | 0.69 | 0.25 | 0.64 | ||||||||||
Net income (loss) to Bunge common shareholders—basic | $ | 1.96 | $ | (1.13 | ) | $ | 3.61 | $ | 0.78 | |||||
Diluted earnings per common share: | ||||||||||||||
Net income (loss) from continuing operations | $ | 1.73 | $ | (1.82 | ) | $ | 3.34 | $ | 0.14 | |||||
Net income (loss) from discontinued operations | 0.17 | 0.69 | 0.24 | 0.64 | ||||||||||
Net income (loss) to Bunge common shareholders—diluted | $ | 1.9 | $ | (1.13 | ) | $ | 3.58 | $ | 0.78 | |||||
(1) Accretion of redeemable noncontrolling interest of $2 million and $9 million for the three months ended September 30, 2014 and 2013, respectively, and $15 million and $28 million for the nine months ended September 30, 2014 and 2013, respectively, relates to a non-fair value variable put arrangement whereby the noncontrolling interest holder may require Bunge to purchase the remaining shares of an oilseed processing operation in Central and Eastern Europe. Accretion for the respective periods includes the effect of losses incurred by the operations for the three and nine months ended September 30, 2014, and 2013, respectively. | ||||||||||||||
(2) Approximately 3 million and 3 million outstanding stock options and contingently issuable restricted stock units were not dilutive and not included in the weighted-average number of common shares outstanding for the three and nine months ended September 30, 2013, respectively. The three months ended September 30, 2013 excludes the dilutive effect of approximately 1 million incremental common shares and for the three and nine months ended September 30, 2013 excludes 8 million weighted-average common shares that are issuable upon conversion of the convertible preference shares that were not dilutive and not included in the weighted-average number of common shares outstanding. Approximately 2 million and 3 million outstanding stock options and contingently issuable restricted stock units were not dilutive and not included in the weighted-average number of common shares outstanding for the three and nine months ended September 30, 2014, respectively. | ||||||||||||||
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||
SEGMENT INFORMATION | ' | ||||||||||||||||||||||
Operating Segment Information | ' | ||||||||||||||||||||||
(US$ in millions) | |||||||||||||||||||||||
Edible | Discontinued | ||||||||||||||||||||||
Three Months Ended | Oil | Milling | Sugar and | Operations & | |||||||||||||||||||
September 30, 2014 | Agribusiness | Products | Products | Bioenergy | Fertilizer | Unallocated (1) | Total | ||||||||||||||||
Net sales to external customers | $ | 9,835 | $ | 2,016 | $ | 516 | $ | 1,154 | $ | 155 | $ | — | $ | 13,676 | |||||||||
Inter—segment revenues | 1,205 | 37 | 36 | — | 1 | (1,279 | ) | — | |||||||||||||||
Gross profit | 423 | 135 | 78 | 64 | 19 | — | 719 | ||||||||||||||||
Foreign exchange gains (losses) | 13 | (3 | ) | (2 | ) | 13 | 2 | — | 23 | ||||||||||||||
Noncontrolling interests (1) | (14 | ) | (3 | ) | — | (2 | ) | (2 | ) | 11 | (10 | ) | |||||||||||
Other income (expense) — net | (5 | ) | (1 | ) | — | 6 | (2 | ) | — | (2 | ) | ||||||||||||
Segment EBIT (2) | 186 | 37 | 37 | 44 | 12 | — | 316 | ||||||||||||||||
Discontinued operations (3) | — | — | — | — | — | 27 | 27 | ||||||||||||||||
Depreciation, depletion and amortization | (63 | ) | (24 | ) | (12 | ) | (59 | ) | (4 | ) | — | (162 | ) | ||||||||||
Total assets | $ | 16,487 | $ | 2,317 | $ | 1,258 | $ | 3,424 | $ | 385 | $ | 274 | $ | 24,145 | |||||||||
Three Months Ended | |||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||
Net sales to external customers | $ | 10,718 | $ | 2,225 | $ | 487 | $ | 1,133 | $ | 138 | $ | — | $ | 14,701 | |||||||||
Inter—segment revenues | 1,230 | 37 | — | 28 | 4 | (1,299 | ) | — | |||||||||||||||
Gross profit | 484 | 127 | 61 | (2 | ) | 18 | — | 688 | |||||||||||||||
Foreign exchange gains (losses) | 38 | 7 | (1 | ) | 2 | 3 | — | 49 | |||||||||||||||
Noncontrolling interests (1) | 2 | (2 | ) | — | 2 | (2 | ) | 45 | 45 | ||||||||||||||
Other income (expense) — net | 10 | 1 | — | 1 | 4 | — | 16 | ||||||||||||||||
Segment EBIT (2) | 326 | 43 | 24 | (37 | ) | 15 | — | 371 | |||||||||||||||
Discontinued operations (3) | — | — | — | — | — | 103 | 103 | ||||||||||||||||
Depreciation, depletion and amortization | (63 | ) | (25 | ) | (6 | ) | (54 | ) | (5 | ) | — | (153 | ) | ||||||||||
Total assets | $ | 19,904 | $ | 2,514 | $ | 875 | $ | 3,695 | $ | 513 | $ | 999 | $ | 28,500 | |||||||||
Edible | Discontinued | ||||||||||||||||||||||
Nine Months Ended | Oil | Milling | Sugar and | Operations & | |||||||||||||||||||
September 30, 2014 | Agribusiness | Products | Products | Bioenergy | Fertilizer | Unallocated (1) | Total | ||||||||||||||||
Net sales to external customers | $ | 32,783 | $ | 6,043 | $ | 1,604 | $ | 3,184 | $ | 316 | $ | — | $ | 43,930 | |||||||||
Inter—segment revenues | 2,935 | 115 | 40 | — | 2 | (3,092 | ) | — | |||||||||||||||
Gross profit | 1,198 | 399 | 235 | 54 | 40 | — | 1,926 | ||||||||||||||||
Foreign exchange gains (losses) | 32 | (3 | ) | (2 | ) | 31 | 1 | — | 59 | ||||||||||||||
Noncontrolling interests (1) | (11 | ) | (5 | ) | — | — | (4 | ) | 27 | 7 | |||||||||||||
Other income (expense) — net | (6 | ) | — | (2 | ) | 14 | (1 | ) | — | 5 | |||||||||||||
Segment EBIT (2) | 576 | 105 | 113 | (14 | ) | 29 | — | 809 | |||||||||||||||
Discontinued operations (3) | — | — | — | — | — | 37 | 37 | ||||||||||||||||
Depreciation, depletion and amortization | (177 | ) | (73 | ) | (36 | ) | (150 | ) | (12 | ) | — | (448 | ) | ||||||||||
Total assets | $ | 16,487 | $ | 2,317 | $ | 1,258 | $ | 3,424 | $ | 385 | $ | 274 | $ | 24,145 | |||||||||
Nine Months Ended | |||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||
Net sales to external customers | $ | 33,058 | $ | 6,898 | $ | 1,531 | $ | 3,185 | $ | 300 | $ | — | $ | 44,972 | |||||||||
Inter—segment revenues | 3,886 | 96 | 9 | 28 | 42 | (4,061 | ) | — | |||||||||||||||
Gross profit | 1,252 | 380 | 185 | 89 | 44 | — | 1,950 | ||||||||||||||||
Foreign exchange gains (losses) | (5 | ) | 6 | (1 | ) | 2 | 5 | — | 7 | ||||||||||||||
Noncontrolling interests (1) | 32 | (3 | ) | — | 5 | (3 | ) | 60 | 91 | ||||||||||||||
Other income (expense) — net | 7 | 9 | 5 | 3 | 37 | — | 61 | ||||||||||||||||
Segment EBIT (2) | 686 | 115 | 89 | (17 | ) | 60 | — | 933 | |||||||||||||||
Discontinued operations (3) | — | — | — | — | — | 94 | 94 | ||||||||||||||||
Depreciation, depletion and amortization | (181 | ) | (74 | ) | (21 | ) | (133 | ) | (14 | ) | — | (423 | ) | ||||||||||
Total assets | $ | 19,904 | $ | 2,514 | $ | 875 | $ | 3,695 | $ | 513 | $ | 999 | $ | 28,500 | |||||||||
(1) Includes noncontrolling interests share of interest and tax to reconcile to consolidated noncontrolling interest. | |||||||||||||||||||||||
(2) Total segment earnings before interest and taxes (EBIT) is an operating performance measure used by Bunge’s management to evaluate segment operating activities. Bunge’s management believes total segment EBIT is a useful measure of operating profitability, since the measure allows for an evaluation of the performance of its segments without regard to its financing methods or capital structure. In addition, EBIT is a financial measure that is widely used by analysts and investors in Bunge’s industries. | |||||||||||||||||||||||
(3) Represents net income (loss) from discontinued operations. | |||||||||||||||||||||||
Reconciliation of total segment earnings before interest and tax to net income attributable to Bunge | ' | ||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
(US$ in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
Total segment EBIT from continuing operations | $ | 316 | $ | 371 | $ | 809 | $ | 933 | |||||||||||||||
Interest income | 19 | 27 | 71 | 47 | |||||||||||||||||||
Interest expense | (70 | ) | (103 | ) | (225 | ) | (264 | ) | |||||||||||||||
Income tax (expense) benefit | (9 | ) | (591 | ) | (150 | ) | (702 | ) | |||||||||||||||
Income (loss) from discontinued operations, net of tax | 27 | 103 | 37 | 94 | |||||||||||||||||||
Noncontrolling interests’ share of interest and tax | 11 | 45 | 27 | 60 | |||||||||||||||||||
Net income (loss) attributable to Bunge | $ | 294 | $ | (148 | ) | $ | 569 | $ | 168 | ||||||||||||||
BASIS_OF_PRESENTATION_AND_PRIN2
BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION (Details) (USD $) | 3 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Discontinued Operations | ' | ' |
Cash proceeds from divestiture of business | ' | $750 |
Brazilian fertilizer business | ' | ' |
Discontinued Operations | ' | ' |
Cash proceeds from divestiture of business | 750 | 750 |
Gain on divestiture | 148 | 148 |
Gain on divestiture, net of tax | $112 | $112 |
BUSINESS_ACQUISITIONS_Details
BUSINESS ACQUISITIONS (Details) (Corn Flour Producers LLC (CFP), Agribusiness, USD $) | 1 Months Ended |
In Millions, unless otherwise specified | Feb. 28, 2014 |
Corn Flour Producers LLC (CFP) | Agribusiness | ' |
Cost of acquired entity | ' |
Purchase price paid in cash | $12 |
Purchase price allocation | ' |
Property, plant and equipment | $12 |
TRADE_STRUCTURED_FINANCE_PROGR1
TRADE STRUCTURED FINANCE PROGRAM (Details) (USD $) | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Trade structured finance program | ' | ' | ' |
Time Deposits under Trade Structured Finance Program weighted-average interest rates (as a percent) | 8.70% | ' | 8.36% |
Letter of Credit Obligations under Trade Structured Finance Program Carrying Amounts | $2,915 | ' | $4,470 |
Total proceeds from issuances of LCs | 4,240 | 7,702 | ' |
Level 2 | ' | ' | ' |
Trade structured finance program | ' | ' | ' |
Time Deposits under Trade Structured Finance Program Fair Values | 2,915 | ' | 4,470 |
Letter of Credit Obligations under Trade Structured Finance Program Fair Values | 2,935 | ' | 4,360 |
Foreign Exchange Contract related to Trade Structured Finance Program Fair Values | $20 | ' | ($110) |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventories | ' | ' |
Inventories | $4,987 | $5,796 |
Agribusiness | ' | ' |
Inventories | ' | ' |
Inventories | 3,777 | 4,498 |
Readily marketable inventories at fair value | 3,671 | 4,325 |
Agribusiness | Merchandising Activities | ' | ' |
Inventories | ' | ' |
Readily marketable inventories at fair value | 2,688 | 2,927 |
Edible Oil Products | ' | ' |
Inventories | ' | ' |
Inventories | 388 | 487 |
Readily marketable inventories at fair value | 103 | 138 |
Milling products | ' | ' |
Inventories | ' | ' |
Inventories | 215 | 210 |
Sugar and Bioenergy | ' | ' |
Inventories | ' | ' |
Inventories | 507 | 549 |
Readily marketable inventories | 179 | 215 |
Sugar | Merchandising Activities | ' | ' |
Inventories | ' | ' |
Readily marketable inventories at fair value | 105 | 137 |
Fertilizer | ' | ' |
Inventories | ' | ' |
Inventories | $100 | $52 |
OTHER_CURRENT_ASSETS_Details
OTHER CURRENT ASSETS (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Other Current Assets: | ' | ' | ' | ' | ' |
Prepaid commodity purchase contracts | $265 | ' | $265 | ' | $220 |
Secured advances to suppliers, net | 489 | ' | 489 | ' | 555 |
Unrealized gains on derivative contracts, at fair value | 2,033 | ' | 2,033 | ' | 1,561 |
Recoverable taxes, net | 452 | ' | 452 | ' | 442 |
Margin deposits | 216 | ' | 216 | ' | 305 |
Marketable securities, at fair value | 108 | ' | 108 | ' | 162 |
Deferred purchase price receivable, at fair value | 77 | ' | 77 | ' | 96 |
Prepaid expenses | 230 | ' | 230 | ' | 261 |
Other | 673 | ' | 673 | ' | 835 |
Total | 4,543 | ' | 4,543 | ' | 4,437 |
Allowance on secured advance to farmers | 9 | ' | 9 | ' | 20 |
Interest earned on secured advances to suppliers | $8 | $7 | $27 | $22 | ' |
OTHER_NONCURRENT_ASSETS_Detail
OTHER NON-CURRENT ASSETS (Details) (USD $) | 9 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 |
OTHER NON-CURRENT ASSETS | ' | ' | ' | ' | ' | ' |
Recoverable taxes, net | $268 | $283 | ' | ' | ' | ' |
Judicial deposits | 155 | 153 | ' | ' | ' | ' |
Other long-term receivables | 36 | 40 | ' | ' | ' | ' |
Income taxes receivable | 254 | 304 | ' | ' | ' | ' |
Long-term investments | 291 | 296 | ' | ' | ' | ' |
Affiliate loans receivable, net | 54 | 25 | ' | ' | ' | ' |
Long-term receivables from farmers in Brazil, net | 105 | 134 | ' | ' | ' | ' |
Other | 153 | 176 | ' | ' | ' | ' |
Total | 1,316 | 1,411 | ' | ' | ' | ' |
Allowance for recoverable taxes | 33 | 57 | ' | ' | ' | ' |
Affiliate loans receivable, net | ' | ' | ' | ' | ' | ' |
Minimum initial maturity of affiliate loans receivable | '1 year | ' | ' | ' | ' | ' |
Minimum | ' | ' | ' | ' | ' | ' |
Aging of non-defaulted and renegotiated amounts | ' | ' | ' | ' | ' | ' |
Period of realization | '5 years | ' | ' | ' | ' | ' |
Level 3 | Assets management business in Europe | ' | ' | ' | ' | ' | ' |
Long-term investment | ' | ' | ' | ' | ' | ' |
Consolidated funds' investments | 230 | 238 | ' | ' | ' | ' |
Long-term receivables | ' | ' | ' | ' | ' | ' |
Recorded Investment | ' | ' | ' | ' | ' | ' |
Long-term receivables from farmers in Brazil | 261 | 330 | ' | ' | ' | ' |
Average recorded investment in long-term receivables | 298 | 363 | ' | ' | ' | ' |
Allowance | 156 | 196 | 176 | 210 | 209 | 224 |
Long-term receivables | Legal collection processes | ' | ' | ' | ' | ' | ' |
Recorded Investment | ' | ' | ' | ' | ' | ' |
For which an allowance has been provided: | 110 | 139 | ' | ' | ' | ' |
For which no allowance has been provided: | 76 | 74 | ' | ' | ' | ' |
Long-term receivables from farmers in Brazil | 186 | 213 | ' | ' | ' | ' |
Allowance | 103 | 132 | ' | ' | ' | ' |
Long-term receivables | Renegotiated amounts | ' | ' | ' | ' | ' | ' |
Recorded Investment | ' | ' | ' | ' | ' | ' |
For which an allowance has been provided: | 54 | 84 | ' | ' | ' | ' |
For which no allowance has been provided: | 21 | 33 | ' | ' | ' | ' |
Long-term receivables from farmers in Brazil | 75 | 117 | ' | ' | ' | ' |
Allowance | $53 | $64 | ' | ' | ' | ' |
OTHER_NONCURRENT_ASSETS_Detail1
OTHER NON-CURRENT ASSETS (Details 2) (Long-term receivables, USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Long-term receivables | ' | ' | ' | ' |
Allowance for Doubtful Accounts Related to Long Term Receivables | ' | ' | ' | ' |
Balance at the beginning of the period | $176 | $209 | $196 | $224 |
Bad debt provisions | 3 | 3 | 5 | 16 |
Recoveries | -6 | -3 | -21 | -14 |
Write-offs | ' | -1 | -21 | -2 |
Transfers | ' | 3 | 4 | 5 |
Foreign exchange translation | -17 | -1 | -7 | -19 |
Balance at the end of the period | $156 | $210 | $156 | $210 |
INCOME_TAXES_Details
INCOME TAXES (Details) | 3 Months Ended | 9 Months Ended | |||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 |
USD ($) | USD ($) | USD ($) | USD ($) | Continuing Operations | Continuing Operations | Brazil | Brazil | Brazil | Brazil | Brazil | Argentina | Argentina | Argentina | Argentina | |
USD ($) | USD ($) | USD ($) | Income tax examination 2009 | Income tax examination 2009 | Income tax examination 2009 | Income tax examination 2009 | Tax claims | Tax claims | Tax claims | Tax claims | |||||
USD ($) | BRL | USD ($) | BRL | USD ($) | ARS | USD ($) | ARS | ||||||||
Income Tax Examination | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax expense | $9 | $591 | $150 | $702 | $150 | $702 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effective tax rate (as a percent) | ' | ' | ' | ' | 22.00% | 103.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discrete tax gains (losses) included in effective tax rate | ' | ' | ' | ' | 53 | -32 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Decrease in liability for uncertain tax positions | ' | ' | ' | ' | ' | ' | 66 | ' | ' | ' | ' | ' | ' | ' | ' |
Liability for uncertain tax positions resulting from tax amnesty program | ' | ' | ' | ' | ' | ' | 59 | ' | ' | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in income tax expense due to change in deferred tax valuation allowances | ' | ' | ' | 464 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total proposed adjustments | ' | ' | ' | ' | ' | ' | ' | 575 | 1,410 | 603 | 1,410 | ' | ' | ' | ' |
Uncertain tax positions, current | ' | ' | ' | ' | ' | ' | ' | 22 | 54 | 82 | 192 | ' | ' | ' | ' |
Argentine estimated tax claim | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 52 | 436 | 67 | 436 |
Applicable interest on outstanding amount due | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $103 | 867 | $115 | 750 |
OTHER_CURRENT_LIABILITIES_Deta
OTHER CURRENT LIABILITIES (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
OTHER CURRENT LIABILITIES | ' | ' |
Accrued liabilities | $743 | $792 |
Unrealized losses on derivative contracts at fair value | 1,567 | 1,401 |
Advances on sales | 212 | 330 |
Other | 337 | 495 |
Total | $2,859 | $3,018 |
FINANCIAL_INSTRUMENTS_AND_FAIR2
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets | ' | ' |
Unrealized gain on derivative contracts | $2,033 | $1,561 |
Deferred purchase price receivable | 77 | 96 |
Liabilities | ' | ' |
Unrealized loss on derivative contracts | 1,567 | 1,401 |
Other non-current assets | ' | ' |
Unrealized gains (losses) on designated and undesignated derivative contracts | ' | ' |
Unrealized gains (losses) on derivative contracts | 0 | 0 |
Other non-current liabilities | ' | ' |
Unrealized gains (losses) on designated and undesignated derivative contracts | ' | ' |
Unrealized gains (losses) on derivative contracts | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Fair Value | ' | ' |
Assets | ' | ' |
Readily marketable inventories | 3,879 | 4,600 |
Trade accounts receivable | 7 | 6 |
Deferred purchase price receivable | 77 | 96 |
Other | 144 | 81 |
Total assets | 6,140 | 6,344 |
Liabilities | ' | ' |
Trade accounts payable | 467 | 457 |
Total liabilities | 2,035 | 1,858 |
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 | 7 | 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 | 467 | 457 |
Assets and liabilities measured at fair value on a recurring basis | Fair Value | Designated derivative contracts | Foreign Exchange | ' | ' |
Assets | ' | ' |
Unrealized gain on derivative contracts | 24 | 7 |
Liabilities | ' | ' |
Unrealized loss on derivative contracts | 4 | 11 |
Assets and liabilities measured at fair value on a recurring basis | Fair Value | Undesignated derivative contracts | Foreign Exchange | ' | ' |
Assets | ' | ' |
Unrealized gain on derivative contracts | 291 | 351 |
Liabilities | ' | ' |
Unrealized loss on derivative contracts | 307 | 378 |
Assets and liabilities measured at fair value on a recurring basis | Fair Value | Undesignated derivative contracts | Commodities | ' | ' |
Assets | ' | ' |
Unrealized gain on derivative contracts | 1,624 | 1,131 |
Liabilities | ' | ' |
Unrealized loss on derivative contracts | 1,129 | 889 |
Assets and liabilities measured at fair value on a recurring basis | Fair Value | Undesignated derivative contracts | Freight | ' | ' |
Assets | ' | ' |
Unrealized gain on derivative contracts | 77 | 59 |
Liabilities | ' | ' |
Unrealized loss on derivative contracts | 83 | 95 |
Assets and liabilities measured at fair value on a recurring basis | Fair Value | Undesignated derivative contracts | Energy Derivatives | ' | ' |
Assets | ' | ' |
Unrealized gain on derivative contracts | 17 | 13 |
Liabilities | ' | ' |
Unrealized loss on derivative contracts | 45 | 28 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | ' | ' |
Assets | ' | ' |
Other | 65 | 59 |
Total assets | 712 | 542 |
Liabilities | ' | ' |
Total liabilities | 582 | 458 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Undesignated derivative contracts | Foreign Exchange | ' | ' |
Assets | ' | ' |
Unrealized gain on derivative contracts | 10 | 5 |
Liabilities | ' | ' |
Unrealized loss on derivative contracts | 29 | 5 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Undesignated derivative contracts | Commodities | ' | ' |
Assets | ' | ' |
Unrealized gain on derivative contracts | 548 | 408 |
Liabilities | ' | ' |
Unrealized loss on derivative contracts | 449 | 361 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Undesignated derivative contracts | Freight | ' | ' |
Assets | ' | ' |
Unrealized gain on derivative contracts | 75 | 59 |
Liabilities | ' | ' |
Unrealized loss on derivative contracts | 77 | 81 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Undesignated derivative contracts | Energy Derivatives | ' | ' |
Assets | ' | ' |
Unrealized gain on derivative contracts | 14 | 11 |
Liabilities | ' | ' |
Unrealized loss on derivative contracts | 27 | 11 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | ' | ' |
Assets | ' | ' |
Readily marketable inventories | 3,569 | 4,302 |
Trade accounts receivable | 7 | 5 |
Deferred purchase price receivable | 77 | 96 |
Other | 79 | 22 |
Total assets | 5,041 | 5,363 |
Liabilities | ' | ' |
Trade accounts payable | 407 | 381 |
Total liabilities | 1,292 | 1,204 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Designated derivative contracts | Foreign Exchange | ' | ' |
Assets | ' | ' |
Unrealized gain on derivative contracts | 24 | 7 |
Liabilities | ' | ' |
Unrealized loss on derivative contracts | 4 | 11 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Undesignated derivative contracts | Foreign Exchange | ' | ' |
Assets | ' | ' |
Unrealized gain on derivative contracts | 281 | 346 |
Liabilities | ' | ' |
Unrealized loss on derivative contracts | 278 | 373 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Undesignated derivative contracts | Commodities | ' | ' |
Assets | ' | ' |
Unrealized gain on derivative contracts | 1,002 | 585 |
Liabilities | ' | ' |
Unrealized loss on derivative contracts | 602 | 439 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Undesignated derivative contracts | Freight | ' | ' |
Assets | ' | ' |
Unrealized gain on derivative contracts | 2 | ' |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | ' | ' |
Assets | ' | ' |
Readily marketable inventories | 310 | 298 |
Trade accounts receivable | ' | 1 |
Total assets | 387 | 439 |
Liabilities | ' | ' |
Trade accounts payable | 60 | 76 |
Total liabilities | 161 | 196 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Undesignated derivative contracts | Commodities | ' | ' |
Assets | ' | ' |
Unrealized gain on derivative contracts | 74 | 138 |
Liabilities | ' | ' |
Unrealized loss on derivative contracts | 77 | 89 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Undesignated derivative contracts | Freight | ' | ' |
Liabilities | ' | ' |
Unrealized loss on derivative contracts | 6 | 14 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Undesignated derivative contracts | Energy Derivatives | ' | ' |
Assets | ' | ' |
Unrealized gain on derivative contracts | 3 | 2 |
Liabilities | ' | ' |
Unrealized loss on derivative contracts | $18 | $17 |
FINANCIAL_INSTRUMENTS_AND_FAIR3
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Reconciliation of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) | ' | ' | ' | ' |
Balance at beginning of period | $740 | $788 | $243 | $462 |
Purchases | 242 | 385 | 1,804 | 1,598 |
Sales | -939 | -899 | -2,168 | -1,400 |
Issuances | 13 | -2 | -381 | -512 |
Settlements | -37 | 486 | 303 | -323 |
Transfers into Level 3 | 195 | 267 | 544 | 619 |
Transfers out of Level 3 | -12 | -151 | -194 | -301 |
Balance at end of period | 226 | 722 | 226 | 722 |
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) | -50 | -152 | 75 | -67 |
Changes in unrealized gains and (losses) relating to assets and liabilities | -25 | 97 | 9 | 613 |
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 | -13 | 89 | 20 | 66 |
Purchases | -8 | ' | 5 | ' |
Sales | 4 | ' | ' | 1 |
Issuances | 20 | -2 | 19 | -4 |
Settlements | -47 | -40 | -189 | -222 |
Transfers into Level 3 | 27 | 2 | 21 | 102 |
Transfers out of Level 3 | 5 | -24 | 35 | -17 |
Balance at end of period | -24 | -25 | -24 | -25 |
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) | -12 | -50 | 65 | 49 |
Changes in unrealized gains and (losses) relating to assets and liabilities | -7 | -55 | 48 | 56 |
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 | 873 | 1,220 | 298 | 436 |
Purchases | 254 | 385 | 1,804 | 1,598 |
Sales | -943 | -905 | -2,176 | -1,410 |
Transfers into Level 3 | 171 | 265 | 534 | 575 |
Transfers out of Level 3 | -6 | -8 | -158 | -160 |
Balance at end of period | 310 | 854 | 310 | 854 |
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) | -39 | -103 | 8 | -185 |
Changes in unrealized gains and (losses) relating to assets and liabilities | -19 | 145 | -43 | 548 |
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 | -120 | -521 | -75 | -40 |
Purchases | -4 | ' | -5 | ' |
Sales | ' | 6 | 8 | 9 |
Issuances | -7 | ' | -400 | -508 |
Settlements | 84 | 526 | 492 | 545 |
Transfers into Level 3 | -3 | ' | -11 | -58 |
Transfers out of Level 3 | -11 | -119 | -71 | -124 |
Balance at end of period | -60 | -107 | -60 | -107 |
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) | 1 | 1 | 2 | 69 |
Changes in unrealized gains and (losses) relating to assets and liabilities | $1 | $7 | $4 | $9 |
FINANCIAL_INSTRUMENTS_AND_FAIR4
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Details 3) (USD $) | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | Interest rate | Interest rate | Foreign Exchange | Foreign Exchange | Foreign Exchange | Foreign Exchange | Foreign Exchange | Foreign Exchange | Foreign Exchange | Foreign Exchange | Foreign Exchange | Commodities | Commodities | Commodities | Commodities | Commodities | Commodities | Commodities | Freight | Freight | Natural Gas | Natural Gas | Natural Gas | Energy - other | Energy - other | Energy - other | Energy - other | Energy - other | Designated hedges | Designated hedges |
Futures | Options | Futures | Options | Options | Options | Forwards | Forwards | Forwards | Swaps | Swaps | Futures | Options | Forwards | Forwards | Swaps | Swaps | Options | Forwards | Futures | Options | Swaps | Futures | Options | Forwards | Forwards | Swaps | Freight | Freight | ||
Exchange traded net short | Exchange traded net long | Exchange traded net long | Exchange traded net short | Non-exchange traded short position | Non-exchange traded long position | Exchange traded net long | Non-exchange traded short position | Non-exchange traded long position | Non-exchange traded short position | Non-exchange traded long position | Exchange traded net short | Exchange traded net short | Non-exchange traded short position | Non-exchange traded long position | Non-exchange traded short position | Non-exchange traded long position | Exchange cleared net short | Exchange cleared net short | Exchange traded net long | Exchange traded net long | Non-exchange cleared long position | Exchange traded net long | Exchange traded net long | Non-exchange cleared short position | Non-exchange cleared long position | Exchange traded net long | ||||
t | t | t | t | t | t | HireDays | HireDays | MMBTU | MMBTU | MMBTU | t | t | t | t | t | |||||||||||||||
Derivative | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Delta amount of open foreign exchange positions | ' | ' | ' | $12 | $531 | $310 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional amounts of open foreign exchange positions | $5 | $1 | $1 | ' | ' | ' | $22 | $9,885 | $10,850 | $11 | $75 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 |
Maximum period of commodity contracts for sale of agricultural commodity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Nonmonetary notional amount of derivatives | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,389,089 | 797,015 | 37,244,377 | 24,593,861 | 203,843 | 234,597 | 1,064 | 941 | 3,940,000 | 4,574 | 749,763 | 1,471,683 | 204,954 | 577,000 | 36,298,790 | 235,000 | ' | ' |
FINANCIAL_INSTRUMENTS_AND_FAIR5
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Details 4) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Derivative Instruments, Gain (Loss) | ' | ' |
Gain or (Loss) Recognized in Income on Undesignated Derivative Contracts | $508 | $295 |
Foreign Exchange | Foreign exchange gains (losses) | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' |
Gain or (Loss) Recognized in Income on Undesignated Derivative Contracts | 28 | -131 |
Foreign Exchange | Cost of goods sold | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' |
Gain or (Loss) Recognized in Income on Undesignated Derivative Contracts | 113 | 156 |
Commodities | Cost of goods sold | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' |
Gain or (Loss) Recognized in Income on Undesignated Derivative Contracts | 383 | 299 |
Freight | Cost of goods sold | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' |
Gain or (Loss) Recognized in Income on Undesignated Derivative Contracts | -1 | -31 |
Energy Derivatives | Cost of goods sold | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' |
Gain or (Loss) Recognized in Income on Undesignated Derivative Contracts | -15 | 2 |
Cash flow hedges | ' | ' |
Summary of Cash Flow and Net Investment Hedges | ' | ' |
Notional Amount | 148 | 323 |
Gain or (Loss) Recognized in Accumulated OCI | 19 | -11 |
Gain or (Loss) Reclassified from Accumulated OCI into Income | 11 | -10 |
Cash flow hedges | Foreign exchange gains (losses) | ' | ' |
Summary of Cash Flow and Net Investment Hedges | ' | ' |
Gain or (Loss) Reclassified from Accumulated OCI into Income | 11 | ' |
Cash flow hedges | Cost of goods sold | ' | ' |
Summary of Cash Flow and Net Investment Hedges | ' | ' |
Gain or (Loss) Reclassified from Accumulated OCI into Income | ' | -10 |
Cash flow hedges | Foreign Exchange | ' | ' |
Summary of Cash Flow and Net Investment Hedges | ' | ' |
Notional Amount | 148 | 323 |
Gain or (Loss) Recognized in Accumulated OCI | 19 | -11 |
Gains expected to be reclassified from accumulated OCI into income in the next 12 months | 19 | 1 |
Cash flow hedges | Foreign Exchange | Foreign exchange gains (losses) | ' | ' |
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 |
Net investment hedges | ' | ' |
Summary of Cash Flow and Net Investment Hedges | ' | ' |
Notional Amount | 557 | 885 |
Gain or (Loss) Recognized in Accumulated OCI | -7 | 8 |
Net investment hedges | Foreign Exchange | ' | ' |
Summary of Cash Flow and Net Investment Hedges | ' | ' |
Notional Amount | 557 | 885 |
Gain or (Loss) Recognized in Accumulated OCI | -7 | 8 |
Losses expected to be reclassified from accumulated OCI into income in the next 12 months | ' | $29 |
DEBT_Details
DEBT (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Jun. 17, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Jun. 17, 2014 | Jun. 17, 2014 | Jun. 17, 2014 | Jun. 17, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Mar. 17, 2014 | Sep. 30, 2014 | Mar. 17, 2014 | Mar. 17, 2014 | Sep. 30, 2014 |
In Millions, unless otherwise specified | Liquidity facility | Commercial paper program | Syndicated revolving credit agreement | Syndicated revolving credit agreement | Syndicated revolving credit agreement | Syndicated revolving credit agreement | Syndicated revolving credit agreement | Syndicated revolving credit agreement | Syndicated revolving credit agreement | Level 2 | Level 2 | Level 3 | Level 3 | Facility | Facility | Facility | Facility | $1,750 million revolving facility | ||
Applicable Margin | Minimum | Minimum | Maximum | Maximum | item | Minimum | Maximum | |||||||||||||
Applicable Margin | Applicable Margin | |||||||||||||||||||
Debt Issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Initial commitment | ' | ' | ' | ' | $665 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of credit agreement | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | 865 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,750 | ' | ' | ' | ' |
Number of extensions in term of revolving credit facility the holder can seek | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' |
Extension period per extension | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' |
Reference rate for variable rate basis | ' | ' | ' | ' | ' | ' | 'LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'LIBOR | ' | ' | ' |
Debt instrument, interest rate added to variable base rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 1.05% | ' | 1.68% | ' | ' | ' | ' | ' | ' | 0.70% | 1.70% | ' |
Commitment fee (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | ' | ' | ' | ' |
Commitment fee (as a percent) | ' | ' | ' | ' | ' | ' | ' | 0.13% | ' | 0.28% | ' | ' | ' | ' | ' | ' | ' | 0.10% | 0.40% | ' |
Increase in the total commitments under the revolving credit facility with the consent of the facility agent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250 | ' |
Credit facility, borrowings outstanding | ' | ' | 0 | 200 | ' | 150 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 |
Debt instrument unused and available borrowing capacity amount | 4,350 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt, including current portion, Carrying Value | 3,234 | 3,941 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt, including current portion, Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3,243 | $3,917 | $215 | $257 | ' | ' | ' | ' | ' |
TRADE_RECEIVABLES_SECURITIZATI1
TRADE RECEIVABLES SECURITIZATION PROGRAM (Details) (Bunge Securitization B.V., USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Bunge Securitization B.V. | ' | ' | ' | ' | ' |
Trade Receivable Securitization Facilities Disclosures | ' | ' | ' | ' | ' |
Trade receivables securitization program | $700 | ' | $700 | ' | ' |
Receivables sold under securitization facility derecognized during the period | 570 | ' | 570 | ' | 696 |
Proceeds received in cash from transfers of receivables to purchasers | ' | ' | 8,837 | 9,126 | ' |
Cash collections from customers on receivables previously sold | ' | ' | 9,038 | 9,240 | ' |
Sale of accounts receivable to securitization facility | ' | ' | 8,966 | 9,285 | ' |
Discount from sale of receivables | 2 | 2 | 6 | 6 | ' |
Risk of loss related to sale of receivables | $77 | ' | $77 | ' | $96 |
Payment term for receivables | ' | ' | '30 days | ' | ' |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details) (USD $) | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 05, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Itochu Corporation | Unconsolidated joint ventures | Unconsolidated joint ventures | Unconsolidated joint ventures | Unconsolidated joint ventures | ||
item | ||||||
Related Party Transactions Including Changes In Equity Method Investments | ' | ' | ' | ' | ' | ' |
Minority Interest Ownership Percentage Acquired by Parent | ' | 20.00% | ' | ' | ' | ' |
Number of sugarcane mills whose ownership interest is acquired | ' | 2 | ' | ' | ' | ' |
Percentage of voting power | ' | 80.00% | ' | ' | ' | ' |
Decrease in equity due to acquisition of minority interests | $50 | $23 | ' | ' | ' | ' |
Purchases of soybeans, other commodity products and phosphate-based products from unconsolidated investees | ' | ' | 127 | 128 | 523 | 413 |
Sales of soybeans and other products to unconsolidated investees | ' | ' | $66 | $108 | $255 | $463 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2011 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | 31-May-14 | 31-May-14 | Sep. 30, 2014 |
In Millions, unless otherwise specified | USD ($) | USD ($) | Tax claims | Tax claims | Tax claims | Tax claims | Tax claims | Tax claims | Tax claims | Tax claims | Tax claims | Labor claims | Labor claims | Civil and other claims | Civil and other claims | Unconsolidated affiliates financing | Residual value guarantee | Guarantee of indebtedness of subsidiaries | ICMS tax liability | ICMS tax liability | ICMS tax liability |
USD ($) | USD ($) | Argentina | Argentina | Argentina | Argentina | Argentina | Brazil | Brazil | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | 100% owned subsidiaries | Brazil | Brazil | Brazil | |||
USD ($) | USD ($) | ARS | USD ($) | ARS | USD ($) | BRL | USD ($) | USD ($) | BRL | USD ($) | |||||||||||
subsidiary | |||||||||||||||||||||
Loss Contingencies and Guarantees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss contingency accrual, at carrying value | $244 | $236 | $58 | $59 | ' | ' | ' | ' | ' | ' | ' | $84 | $76 | $102 | $101 | ' | ' | ' | ' | ' | ' |
Income tax liability for ICMS incentives or benefits | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 |
Proposed adjustments resulting from income tax examination | ' | ' | ' | ' | ' | ' | ' | ' | ' | 117 | 287 | ' | ' | ' | ' | ' | ' | ' | 18 | 45 | ' |
Argentine estimated tax claim for which no accrual exists at this time | ' | ' | ' | ' | 52 | ' | 436 | 67 | 436 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued interest | ' | ' | ' | ' | 103 | ' | 867 | 115 | 750 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment of accrued export tax obligations | ' | ' | ' | ' | ' | 112 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest assessed on paid export tax obligations | ' | ' | ' | ' | 169 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum potential future payments related to guarantees | 246 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 125 | 121 | ' | ' | ' | ' |
Obligation related to outstanding guarantees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 5 | ' | ' | ' | ' |
Percentage of ownership interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' |
Long-term debt including current portion, carrying value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3,248 | ' | ' | ' |
Number of finance subsidiaries issuing senior notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' |
EQUITY_Details
EQUITY (Details) (USD $) | 9 Months Ended | 52 Months Ended |
In Millions, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 |
Equity Disclosures | ' | ' |
Repurchase of common shares to date | $300 | ' |
Common Shares | ' | ' |
Equity Disclosures | ' | ' |
Authorized amount of issued and outstanding common shares available for repurchase | 975 | 975 |
Repurchase of common shares (in shares) | 3,780,987 | ' |
Repurchase of common shares to date | 300 | ' |
Treasury Shares | ' | ' |
Equity Disclosures | ' | ' |
Repurchase of common shares (in shares) | ' | 12,428,846 |
Repurchase of common shares to date | $300 | $774 |
EQUITY_Details_2
EQUITY (Details 2) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) | Foreign Exchange Translation Adjustment | Foreign Exchange Translation Adjustment | Foreign Exchange Translation Adjustment | Foreign Exchange Translation Adjustment | Foreign Exchange Translation Adjustment | Deferred Gain (Losses) on Hedging Activities | Deferred Gain (Losses) on Hedging Activities | Deferred Gain (Losses) on Hedging Activities | Deferred Gain (Losses) on Hedging Activities | Deferred Gain (Losses) on Hedging Activities | Pension and Other Postretirement Liability Adjustments | Pension and Other Postretirement Liability Adjustments | Pension and Other Postretirement Liability Adjustments | Pension and Other Postretirement Liability Adjustments | Unrealized Gains (Losses) on Investments | Unrealized Gains (Losses) on Investments | Unrealized Gains (Losses) on Investments | Unrealized Gains (Losses) on Investments | ||
Brazilian fertilizer business | Brazilian fertilizer business | |||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at beginning of period | ($3,244) | ($2,572) | ($2,254) | ($2,139) | ($2,572) | ($1,410) | ($2,147) | ($2,023) | ($2,486) | ($1,265) | $4 | ($42) | $29 | ($22) | $3 | ' | ($70) | ($155) | ($69) | ($157) | $5 | $10 | $5 | $9 |
Other comprehensive income (loss) before reclassifications | ' | ' | -983 | -114 | -661 | -840 | -1,010 | -85 | -671 | -843 | ' | 29 | -28 | 13 | -2 | ' | 0 | -1 | -1 | 1 | -2 | ' | -2 | 4 |
Amount reclassified from accumulated other comprehensive income | ' | ' | -7 | -37 | -11 | -40 | ' | -4 | ' | -4 | ' | -7 | -27 | -11 | -27 | 37 | ' | ' | ' | ' | ' | -6 | ' | -9 |
Balance at end of period | ($3,244) | ($2,572) | ($3,244) | ($2,290) | ($3,244) | ($2,290) | ($3,157) | ($2,112) | ($3,157) | ($2,112) | $4 | ($20) | ($26) | ($20) | ($26) | ' | ($70) | ($156) | ($70) | ($156) | $3 | $4 | $3 | $4 |
EARNINGS_PER_COMMON_SHARE_Deta
EARNINGS PER COMMON SHARE (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Computation of basic and diluted earnings per common share | ' | ' | ' | ' |
Income from continuing operations | $277 | ($296) | $525 | ($17) |
Net (income) loss attributable to noncontrolling interests | -10 | 45 | 7 | 91 |
Income (loss) from continuing operations attributable to Bunge | 267 | -251 | 532 | 74 |
Other redeemable obligations | -2 | -9 | -15 | -28 |
Convertible preference share dividends | -8 | -8 | -25 | -25 |
Income (loss) from discontinued operations, net of tax | 27 | 103 | 37 | 94 |
Net income (loss) available to Bunge common shareholders | 284 | -165 | 529 | 115 |
Weighted-average number of common shares outstanding: | ' | ' | ' | ' |
Basic (in shares) | 145,528,313 | 147,349,175 | 146,493,870 | 147,044,232 |
Effect of dilutive shares: | ' | ' | ' | ' |
-Stock options and awards (in shares) | 981,122 | ' | 958,505 | 981,920 |
-Convertible preference shares | 7,680,390 | ' | 7,680,390 | ' |
Diluted (in shares) | 154,189,825 | 147,349,175 | 155,132,765 | 148,026,152 |
Basic earnings per common share: | ' | ' | ' | ' |
Net income (loss) from continuing operations (in dollars per share) | $1.77 | ($1.82) | $3.36 | $0.14 |
Net income (loss) from discontinued operations (in dollars per share) | $0.19 | $0.69 | $0.25 | $0.64 |
Net income (loss) to Bunge common shareholders (in dollars per share) | $1.96 | ($1.13) | $3.61 | $0.78 |
Diluted earnings per common share: | ' | ' | ' | ' |
Net income (loss) from continuing operations (in dollars per share) | $1.73 | ($1.82) | $3.34 | $0.14 |
Net income (loss) from discontinued operations (in dollars per share) | $0.17 | $0.69 | $0.24 | $0.64 |
Net income (loss) to Bunge common shareholders (in dollars per share) | $1.90 | ($1.13) | $3.58 | $0.78 |
Dilutive incremental common shares excluded from computation of weighted-average number of common shares outstanding | ' | 1,000,000 | ' | 1,000,000 |
Oilseed processing operation in Eastern Europe | ' | ' | ' | ' |
Diluted earnings per common share: | ' | ' | ' | ' |
Accretion of redeemable noncontrolling interest | $2 | $9 | $15 | $28 |
Stock options and contingently issuable restricted stock units | ' | ' | ' | ' |
Diluted earnings per common share: | ' | ' | ' | ' |
Dilutive incremental common shares excluded from computation of weighted-average number of common shares outstanding | 2,000,000 | 3,000,000 | 3,000,000 | 3,000,000 |
Convertible Preference Shares | ' | ' | ' | ' |
Diluted earnings per common share: | ' | ' | ' | ' |
Dilutive incremental common shares excluded from computation of weighted-average number of common shares outstanding | ' | 8,000,000 | ' | 8,000,000 |
SEGMENT_INFORMATION_Details
SEGMENT INFORMATION (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
item | |||||
Segment Reporting Information | ' | ' | ' | ' | ' |
Number of reportable segments | ' | ' | 5 | ' | ' |
Operating Segment Information | ' | ' | ' | ' | ' |
Net sales to external customers | $13,676 | $14,701 | $43,930 | $44,972 | ' |
Gross profit | 719 | 688 | 1,926 | 1,950 | ' |
Foreign exchange gains (losses) | 23 | 49 | 59 | 7 | ' |
Noncontrolling interests | -10 | 45 | 7 | 91 | ' |
Other income (expense) - net | -2 | 16 | 5 | 61 | ' |
Segment EBIT | 316 | 371 | 809 | 933 | ' |
Discontinued operations | 27 | 103 | 37 | 94 | ' |
Depreciation, depletion and amortization | -162 | -153 | -448 | -423 | ' |
Total assets | 24,145 | 28,500 | 24,145 | 28,500 | 26,781 |
Agribusiness | ' | ' | ' | ' | ' |
Operating Segment Information | ' | ' | ' | ' | ' |
Net sales to external customers | 9,835 | 10,718 | 32,783 | 33,058 | ' |
Gross profit | 423 | 484 | 1,198 | 1,252 | ' |
Foreign exchange gains (losses) | 13 | 38 | 32 | -5 | ' |
Noncontrolling interests | -14 | 2 | -11 | 32 | ' |
Other income (expense) - net | -5 | 10 | -6 | 7 | ' |
Segment EBIT | 186 | 326 | 576 | 686 | ' |
Depreciation, depletion and amortization | -63 | -63 | -177 | -181 | ' |
Total assets | 16,487 | 19,904 | 16,487 | 19,904 | ' |
Edible Oil Products | ' | ' | ' | ' | ' |
Operating Segment Information | ' | ' | ' | ' | ' |
Net sales to external customers | 2,016 | 2,225 | 6,043 | 6,898 | ' |
Gross profit | 135 | 127 | 399 | 380 | ' |
Foreign exchange gains (losses) | -3 | 7 | -3 | 6 | ' |
Noncontrolling interests | -3 | -2 | -5 | -3 | ' |
Other income (expense) - net | -1 | 1 | ' | 9 | ' |
Segment EBIT | 37 | 43 | 105 | 115 | ' |
Depreciation, depletion and amortization | -24 | -25 | -73 | -74 | ' |
Total assets | 2,317 | 2,514 | 2,317 | 2,514 | ' |
Milling products | ' | ' | ' | ' | ' |
Operating Segment Information | ' | ' | ' | ' | ' |
Net sales to external customers | 516 | 487 | 1,604 | 1,531 | ' |
Gross profit | 78 | 61 | 235 | 185 | ' |
Foreign exchange gains (losses) | -2 | -1 | -2 | -1 | ' |
Other income (expense) - net | ' | ' | -2 | 5 | ' |
Segment EBIT | 37 | 24 | 113 | 89 | ' |
Depreciation, depletion and amortization | -12 | -6 | -36 | -21 | ' |
Total assets | 1,258 | 875 | 1,258 | 875 | ' |
Sugar and Bioenergy | ' | ' | ' | ' | ' |
Operating Segment Information | ' | ' | ' | ' | ' |
Net sales to external customers | 1,154 | 1,133 | 3,184 | 3,185 | ' |
Gross profit | 64 | -2 | 54 | 89 | ' |
Foreign exchange gains (losses) | 13 | 2 | 31 | 2 | ' |
Noncontrolling interests | -2 | 2 | ' | 5 | ' |
Other income (expense) - net | 6 | 1 | 14 | 3 | ' |
Segment EBIT | 44 | -37 | -14 | -17 | ' |
Depreciation, depletion and amortization | -59 | -54 | -150 | -133 | ' |
Total assets | 3,424 | 3,695 | 3,424 | 3,695 | ' |
Fertilizer | ' | ' | ' | ' | ' |
Operating Segment Information | ' | ' | ' | ' | ' |
Net sales to external customers | 155 | 138 | 316 | 300 | ' |
Gross profit | 19 | 18 | 40 | 44 | ' |
Foreign exchange gains (losses) | 2 | 3 | 1 | 5 | ' |
Noncontrolling interests | -2 | -2 | -4 | -3 | ' |
Other income (expense) - net | -2 | 4 | -1 | 37 | ' |
Segment EBIT | 12 | 15 | 29 | 60 | ' |
Depreciation, depletion and amortization | -4 | -5 | -12 | -14 | ' |
Total assets | 385 | 513 | 385 | 513 | ' |
Discontinued Operations and Unallocated | ' | ' | ' | ' | ' |
Operating Segment Information | ' | ' | ' | ' | ' |
Net sales to external customers | -1,279 | -1,299 | -3,092 | -4,061 | ' |
Noncontrolling interests | 11 | 45 | 27 | 60 | ' |
Discontinued operations | 27 | 103 | 37 | 94 | ' |
Total assets | 274 | 999 | 274 | 999 | ' |
Inter-segment Eliminations | Agribusiness | ' | ' | ' | ' | ' |
Operating Segment Information | ' | ' | ' | ' | ' |
Net sales to external customers | 1,205 | 1,230 | 2,935 | 3,886 | ' |
Inter-segment Eliminations | Edible Oil Products | ' | ' | ' | ' | ' |
Operating Segment Information | ' | ' | ' | ' | ' |
Net sales to external customers | 37 | 37 | 115 | 96 | ' |
Inter-segment Eliminations | Milling products | ' | ' | ' | ' | ' |
Operating Segment Information | ' | ' | ' | ' | ' |
Net sales to external customers | 36 | ' | 40 | 9 | ' |
Inter-segment Eliminations | Sugar and Bioenergy | ' | ' | ' | ' | ' |
Operating Segment Information | ' | ' | ' | ' | ' |
Net sales to external customers | ' | 28 | ' | 28 | ' |
Inter-segment Eliminations | Fertilizer | ' | ' | ' | ' | ' |
Operating Segment Information | ' | ' | ' | ' | ' |
Net sales to external customers | $1 | $4 | $2 | $42 | ' |
SEGMENT_INFORMATION_Details_2
SEGMENT INFORMATION (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Reconciliation of Total Segment Earnings Before Interest and Tax: | ' | ' | ' | ' |
Total segment EBIT from continuing operations | $316 | $371 | $809 | $933 |
Interest income | 19 | 27 | 71 | 47 |
Interest expense | -70 | -103 | -225 | -264 |
Income tax (expense) benefit | -9 | -591 | -150 | -702 |
Income (loss) from discontinued operations, net of tax (including a net gain on disposal of $112 million in 2013) | 27 | 103 | 37 | 94 |
Noncontrolling interests' share of interest and tax | 11 | 45 | 27 | 60 |
Net income (loss) attributable to Bunge | $294 | ($148) | $569 | $168 |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (Subsequent event, Brazil) | Oct. 16, 2014 | Oct. 16, 2014 | Oct. 16, 2014 | Oct. 16, 2014 |
In Millions, unless otherwise specified | USD ($) | BRL | Minimum | Maximum |
SUBSEQUENT EVENTS | ' | ' | ' | ' |
Amount in dispute, consisting of principal amount, interest and penalties, combined with potential additional disputes | $163 | 400 | ' | ' |
Expected term for publishing opinion in case | ' | ' | '30 days | '60 days |