DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 25, 2018 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Bunge LTD | |
Entity Central Index Key | 1,144,519 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
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 | 140,945,157 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading symbol | bg |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||
Net sales | $ 10,641 | $ 11,121 |
Cost of goods sold | (10,257) | (10,661) |
Gross profit | 384 | 460 |
Selling, general and administrative expenses | (344) | (378) |
Interest income | 8 | 12 |
Interest expense | (70) | (65) |
Foreign exchange gains (losses) | 0 | 56 |
Other income (expense) – net | 24 | (3) |
Income (loss) from continuing operations before income tax | 2 | 82 |
Income tax (expense) benefit | (19) | (28) |
Income (loss) from continuing operations | (17) | 54 |
Income (loss) from discontinued operations, net of tax | (2) | (6) |
Net income (loss) | (19) | 48 |
Net (income) loss attributable to noncontrolling interests | (2) | (1) |
Net income (loss) attributable to Bunge | (21) | 47 |
Convertible preference share dividends | (8) | (8) |
Net income (loss) available to Bunge common shareholders | $ (29) | $ 39 |
Earnings per common share—basic (Note 18) | ||
Net income (loss) from continuing operations (in dollars per share) | $ (0.20) | $ 0.31 |
Net income (loss) from discontinued operations (in dollars per share) | (0.01) | (0.04) |
Net income (loss) to Bunge common shareholders—basic (in dollars per share) | (0.21) | 0.27 |
Earnings per common share—diluted (Note 18) | ||
Net income (loss) from continuing operations (in dollars per share) | (0.20) | 0.31 |
Net income (loss) from discontinued operations (in dollars per share) | (0.01) | (0.04) |
Net income (loss) to Bunge common shareholders—diluted (in dollars per share) | (0.21) | 0.27 |
Dividends declared per common share (in dollars per share) | $ 0.46 | $ 0.42 |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ (19) | $ 48 |
Other comprehensive income (loss): | ||
Foreign exchange translation adjustment | (12) | 266 |
Unrealized gains (losses) on designated cash flow and net investment hedges, net of tax (expense) benefit of $(1) in 2018 and nil in 2017 | 3 | (7) |
Reclassification of realized net losses (gains) to net income, net of tax expense (benefit) of nil in 2018 and nil in 2017 | (4) | (2) |
Pension adjustment, net of tax (expense) benefit of nil in 2018 and nil in 2017 | (1) | 0 |
Total other comprehensive income (loss) | (14) | 257 |
Total comprehensive income (loss) | (33) | 305 |
Less: comprehensive (income) loss attributable to noncontrolling interests | (5) | (6) |
Total comprehensive income (loss) attributable to Bunge | $ (38) | $ 299 |
CONDENSED CONSOLIDATED STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Unrealized gains (losses) on designated cash flow and net investment hedges, tax (expense) benefit | $ (1) | $ 0 |
Reclassification of realized net losses (gains) to net income, tax expense (benefit) | 0 | 0 |
Pension adjustment, tax (expense) benefit | $ 0 | $ 0 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 287 | $ 601 |
Trade accounts receivable (less allowances of $113 and $107) (Note 13) | 1,686 | 1,501 |
Inventories (Note 6) | 6,952 | 5,074 |
Other current assets (Note 7) | 4,451 | 3,227 |
Total current assets | 13,376 | 10,403 |
Property, plant and equipment, net | 5,735 | 5,310 |
Goodwill | 800 | 515 |
Other intangible assets, net | 801 | 323 |
Investments in affiliates | 462 | 461 |
Deferred income taxes | 513 | 516 |
Time deposits under trade structured finance program (Note 5) | 318 | 315 |
Other non-current assets (Note 8) | 1,079 | 1,028 |
Total assets | 23,084 | 18,871 |
Current liabilities: | ||
Short-term debt | 1,293 | 304 |
Current portion of long-term debt (Note 12) | 14 | 15 |
Letter of credit obligations under trade structured finance program (Note 5) | 318 | 315 |
Trade accounts payable (includes $719 and $583 carried at fair value) | 3,909 | 3,395 |
Other current liabilities (Note 10) | 3,016 | 2,186 |
Total current liabilities | 8,550 | 6,215 |
Long-term debt (Note 12) | 5,446 | 4,160 |
Deferred income taxes | 361 | 223 |
Other non-current liabilities | 980 | 916 |
Commitments and contingencies (Note 15) | ||
Redeemable noncontrolling interest (Note 16) | 470 | 0 |
Equity (Note 17): | ||
Convertible perpetual preference shares, par value $.01; authorized, issued and outstanding: 2018 and 2017 - 6,899,700 shares (liquidation preference $100 per share) | 690 | 690 |
Common shares, par value $.01; authorized – 400,000,000 shares; issued and outstanding: 2018 – 140,904,028 shares, 2017 – 140,646,829 shares | 1 | 1 |
Additional paid-in capital | 5,233 | 5,226 |
Retained earnings | 8,008 | 8,081 |
Accumulated other comprehensive income (loss) (Note 17) | (5,947) | (5,930) |
Treasury shares, at cost - 2018 and 2017 - 12,882,313 shares | (920) | (920) |
Total Bunge shareholders’ equity | 7,065 | 7,148 |
Noncontrolling interests | 212 | 209 |
Total equity | 7,277 | 7,357 |
Total liabilities, redeemable noncontrolling interest and equity | $ 23,084 | $ 18,871 |
CONDENSED CONSOLIDATED BALANCE6
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Trade accounts receivable, allowances (in dollars) | $ 113 | $ 107 |
Trade accounts payable at fair value | $ 719 | $ 583 |
Convertible perpetual preference shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Convertible perpetual preference shares, authorized (in shares) | 6,899,700 | 6,899,700 |
Convertible perpetual preference shares, issued (in shares) | 6,899,700 | 6,899,700 |
Convertible perpetual preference shares, outstanding (in shares) | 6,899,700 | 6,899,700 |
Convertible perpetual preference shares, liquid preference (in dollars per share) | $ 100 | $ 100 |
Common shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common shares, authorized (in shares) | 400,000,000 | 400,000,000 |
Common shares, issued (in shares) | 140,904,028 | 140,646,829 |
Common shares, outstanding (in shares) | 140,904,028 | 140,646,829 |
Common shares, at cost (in shares) | 12,882,313 | 12,882,313 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
OPERATING ACTIVITIES | ||
Net income (loss) | $ (19) | $ 48 |
Adjustments to reconcile net income (loss) to cash provided by (used for) operating activities: | ||
Impairment charges | 2 | 1 |
Foreign exchange (gain) loss on net debt | 33 | 14 |
Bad debt expense | 10 | 11 |
Depreciation, depletion and amortization | 142 | 130 |
Share-based compensation expense | 7 | 10 |
Deferred income tax (benefit) | (15) | (12) |
Other, net | 2 | 14 |
Changes in operating assets and liabilities, excluding the effects of acquisitions: | ||
Trade accounts receivable | 47 | 27 |
Inventories | (1,466) | (252) |
Secured advances to suppliers | (110) | 10 |
Trade accounts payable and accrued liabilities | 268 | 421 |
Advances on sales | (93) | (57) |
Net unrealized gain (loss) on derivative contracts | 435 | (259) |
Margin deposits | (187) | (83) |
Marketable securities | (153) | (47) |
Beneficial interest in securitized trade receivables | (432) | (564) |
Other, net | (13) | (15) |
Cash provided by (used for) operating activities | (1,542) | (603) |
INVESTING ACTIVITIES | ||
Payments made for capital expenditures | (105) | (182) |
Acquisitions of businesses (net of cash acquired) | (968) | (367) |
Proceeds from investments | 336 | 59 |
Payments for investments | (620) | (65) |
Settlement of net investment hedges | 10 | 0 |
Proceeds from beneficial interest in securitized trade receivables | 431 | 556 |
Payments for investments in affiliates | (16) | (45) |
Other, net | (6) | (7) |
Cash provided by (used for) investing activities | (938) | (51) |
FINANCING ACTIVITIES | ||
Net change in short-term debt with maturities of 90 days or less | 931 | 170 |
Proceeds from short-term debt with maturities greater than 90 days | 53 | 108 |
Repayments of short-term debt with maturities greater than 90 days | 0 | (50) |
Proceeds from long-term debt | 2,560 | 1,432 |
Repayments of long-term debt | (1,296) | (1,258) |
Proceeds from the exercise of options for common shares | 4 | 46 |
Dividends paid | (73) | (67) |
Other, net | (5) | (5) |
Cash provided by (used for) financing activities | 2,174 | 376 |
Effect of exchange rate changes on cash and cash equivalents, and restricted cash | (7) | 20 |
Net increase (decrease) in cash and cash equivalents, and restricted cash | (313) | (258) |
Cash and cash equivalents, and restricted cash - beginning of period | 605 | 938 |
Cash and cash equivalents, and restricted cash - end of period | $ 292 | $ 680 |
CONDENSED CONSOLIDATED STATEME8
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS - USD ($) $ in Millions | Total | Convertible Preference Shares | Common Shares | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Shares | Non- Controlling Interests | Redeemable Non- Controlling Interests | |
Balance at Dec. 31, 2016 | $ 0 | |||||||||
Balance (in shares) at Dec. 31, 2016 | 6,900,000 | 139,500,862 | ||||||||
Balance at Dec. 31, 2016 | $ 7,343 | $ 690 | $ 1 | $ 5,143 | $ 8,208 | $ (5,978) | $ (920) | $ 199 | ||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net income (loss) | 0 | |||||||||
Net income (loss) | 48 | 47 | 1 | |||||||
Other comprehensive income (loss) | 257 | 252 | 5 | 0 | ||||||
Dividends on common shares | (59) | (59) | ||||||||
Dividends on preference shares | (8) | (8) | ||||||||
Share-based compensation expense | 10 | 10 | ||||||||
Issuance of common shares (in shares) | (300) | 881,261 | ||||||||
Issuance of common shares | 42 | 42 | ||||||||
Balance at Mar. 31, 2017 | 0 | |||||||||
Balance (in shares) at Mar. 31, 2017 | 6,899,700 | 140,382,123 | ||||||||
Balance at Mar. 31, 2017 | 7,633 | $ 690 | $ 1 | 5,195 | 8,188 | (5,726) | (920) | 205 | ||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Impact of adoption of new accounting standards | [1] | 21 | 21 | |||||||
Balance at Dec. 31, 2017 | 0 | 0 | ||||||||
Balance (in shares) at Dec. 31, 2017 | 6,899,700 | 140,646,829 | ||||||||
Balance at Dec. 31, 2017 | 7,357 | $ 690 | $ 1 | 5,226 | 8,081 | (5,930) | (920) | 209 | ||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net income (loss) | 0 | |||||||||
Net income (loss) | (19) | (21) | 2 | |||||||
Other comprehensive income (loss) | (14) | (17) | 3 | 4 | ||||||
Dividends on common shares | (65) | (65) | ||||||||
Dividends on preference shares | (8) | (8) | ||||||||
Deconsolidation of a subsidiary | (2) | (2) | ||||||||
Acquisition of noncontrolling interest | 466 | |||||||||
Share-based compensation expense | 7 | 7 | ||||||||
Issuance of common shares (in shares) | 0 | 257,199 | ||||||||
Issuance of common shares | 0 | 0 | ||||||||
Balance at Mar. 31, 2018 | 470 | $ 470 | ||||||||
Balance (in shares) at Mar. 31, 2018 | 6,899,700 | 140,904,028 | ||||||||
Balance at Mar. 31, 2018 | $ 7,277 | $ 690 | $ 1 | $ 5,233 | $ 8,008 | $ (5,947) | $ (920) | $ 212 | ||
[1] | See Note 2 for further details. |
BASIS OF PRESENTATION AND PRINC
BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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 has a controlling financial interest. The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X under the Securities Exchange Act of 1934, as amended (“Exchange Act”). Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to Securities and Exchange Commission (“SEC”) rules. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation have been included. The condensed consolidated balance sheet at December 31, 2017 has been derived from Bunge’s audited consolidated financial statements at that date. Operating results for the three months ended March 31, 2018 are not necessarily indicative of the results to be expected for the year ending December 31, 2018 . The financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2017 , forming part of Bunge’s 2017 Annual Report on Form 10-K filed with the SEC on February 23, 2018 . |
ACCOUNTING PRONOUNCEMENTS
ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 31, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
ACCOUNTING PRONOUNCEMENTS | ACCOUNTING PRONOUNCEMENTS The below outlines new accounting pronouncements issued in 2018, as well as updates on certain previously disclosed Accounting Standard Updates (“ASU”). New Accounting Pronouncements In February 2018, the Financial Accounting Standards Board ("FASB") issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This ASU allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act ("Tax Act"). Consequently, the ASU eliminates the stranded tax effects resulting from the Tax Act and will improve the usefulness of information reported to financial statement users. However, because this ASU only relates to the reclassification of the income tax effects of the Tax Act, the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not affected. ASU 2018-02 will be effective for Bunge starting January 1, 2019. Bunge is currently evaluating the impact of this ASU. Recently Adopted Accounting Pronouncements 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. During 2016, the FASB issued additional implementation guidance and practical expedients in ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , ASU 2016-10, Revenue from Contracts with Customers (Topic 606), Identifying Performance Obligations and Licensing , ASU 2016-12, Revenue from Contracts with Customers (Topic 606) : Narrow-Scope Improvements and Practical Expedients , and ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers , to improve the guidance. The Company adopted the standard on January 1, 2018 under the modified retrospective approach, applying it only to contracts open as of that date. The impact of adopting the standard has not resulted in a change in accounting treatment for any of the Company’s revenue streams, with the exception of ocean freight voyage charter services. Under ASC 605, the Company recognized revenue and the related cost of goods sold upon loading of the goods onto the vessel, which generally coincides with receipt of payment by the customer. Under ASC 606, the revenue and the related cost of goods sold will instead be recognized over time as the voyages occur and the related expenses are incurred, respectively. As a result of this change in timing, the adoption of the standard resulted in a cumulative-effect credit adjustment to opening retained earnings that was not material. Upon the adoption of ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10); Recognition and Measurement of Financial Assets and Financial Liabilities, the Company has made a cumulative effect adjustment to reclassify the unrealized gains/(losses) of equity investments classified as available for sale from accumulated other comprehensive income (loss) to opening retained earnings that was not material. Upon the adoption of ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force), the Company has changed its presentation of cash flows in relation to the Company’s trade receivables securitization program. Particularly impacted are the cash receipts from payments on the deferred purchase price, which are now classified as cash inflows from investing activities, whereas previously they were classified as inflows from operating activities. This ASU has been applied retrospectively and as a result, $556 million has been reclassified from cash provided by (used for) operating activities to cash provided by (used for) investing activities in the condensed consolidated statement of cash flows for the three months ended March 31, 2017. See Note 13 for additional information on our trade receivables securitization program. Upon the adoption of ASU 2016-18, Statement of Cash Flows (Topic 230), Restricted Cash (a consensus of the Emerging issues Task Force), the Company has changed the way it presents restricted cash in the statement of cash flows. Effective for 2018, and all prior periods presented, restricted cash is included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheet that sums to the total of the same such amounts shown in the condensed consolidated statement of cash flows. (US$ in millions) March 31, 2018 March 31, 2017 Cash and cash equivalents $ 287 $ 676 Restricted cash included in other current assets 5 4 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 292 $ 680 |
GLOBAL COMPETITIVENESS PROGRAM
GLOBAL COMPETITIVENESS PROGRAM | 3 Months Ended |
Mar. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
GLOBAL COMPETITIVENESS PROGRAM | GLOBAL COMPETITIVENESS PROGRAM In July 2017, Bunge announced a comprehensive global competitiveness program to improve its cost position and deliver increased value to shareholders (the “Global Competitiveness Program”). When fully implemented, the Global Competitiveness Program is expected to reduce the Company’s overhead costs by approximately $250 million by the end of 2020. The Company identified key elements of its strategy to meet this goal, including adopting a zero-based budgeting process that will target excess costs in specific budget categories and improving efficiency and scalability by simplifying organizational structures, streamlining processes and consolidating back office functions globally. In conjunction with the Global Competitiveness Program, the Company has implemented other cost reduction and strategic initiatives to enhance the efficiency and performance of the Company’s business. The Company has approved several initiatives under the Global Competitiveness Program, including position eliminations, the re-leveling of certain positions, simplifying its organizational structure into three regions and establishing new zero-based budgeting procedures and governance on spending categories. As part of the Global Competitiveness Program, Bunge offered a voluntary early retirement program to certain U.S. based salaried employees. Costs associated with the early retirement program were recorded in 2017. In addition, the Company has also incurred third-party consulting fees and other costs associated with the Global Competitiveness Program. The table below sets forth, by segment, the types of costs recorded for the Global Competitiveness Program during the three months ended March 31, 2018 . (US$ in millions) Severance and Other Employee Benefit Costs Other Program Costs Total Program Costs Agribusiness Segment $ 5 $ 6 $ 11 Edible Oils Segment 1 1 2 Milling Segment 1 1 2 Sugar and Bioenergy Segment — 1 1 Fertilizer Segment — — — Total $ 7 $ 9 $ 16 In addition to the above charges, $1 million of severance and other employee benefit costs were recorded related to other industrial productivity initiatives. For the costs recorded above, $3 million were recorded in Cost of goods sold and $14 million were recorded in Selling, general and administrative expenses. Bunge's liability associated with the Global Competitiveness Program and other associated initiatives is primarily comprised of accruals for severance and other employee benefit costs. The following table sets forth the activity affecting the liability for severance and other employee benefit costs related to the Global Competitiveness Program and other associated initiatives, which is recorded in "Other current liabilities" on the condensed consolidated balance sheet. (US$ in millions) Severance and Other Employee Benefit Costs Balance at January 1, 2018 $ 45 Charges incurred 8 Cash payments (30 ) Balance at March 31, 2018 $ 23 In addition to the cash charges described above, the Company's restructuring initiatives may include the sale or disposal of long-lived assets and rationalization of certain investments. As Bunge continues to review its opportunities, certain gains and charges may be recorded in earnings, including those related to the disposal of assets or investments. For the three months ended March 31, 2018 , $1 million of such gains have been recognized. |
BUSINESS ACQUISITIONS
BUSINESS ACQUISITIONS | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
BUSINESS ACQUISITIONS | BUSINESS ACQUISITIONS On March 1, 2018 ("the acquisition date"), Bunge acquired a 70% ownership interest in IOI Loders Croklaan ("Loders") from IOI Corporation Berhad ("IOI") for approximately $988 million in cash. The transaction expands Bunge's value-added capabilities, reach, and scale across core geographies to establish Bunge as a global leader in B2B oil solutions. Loders' portfolio includes a full range of palm and tropical oil-derived products with strength in confectionery, bakery and infant nutrition applications. Loders serves global food industry customers in more than 100 countries around the world. The following table summarizes the preliminary allocation of the fair values of the assets acquired and liabilities assumed at the acquisition date, as included in Bunge's condensed consolidated balance sheet. Bunge is in the process of finalizing third-party valuations of certain acquired assets and tax items, and therefore, the measurements below are subject to change: (US$ in millions) Cash and cash equivalents $ 82 Accounts receivable 146 Inventories 409 Other current assets 64 Property, plant and equipment 411 Intangible assets 463 Other noncurrent assets 113 Goodwill 263 Total assets 1,951 Accounts payable (109 ) Other current liabilities (97 ) Deferred income taxes (256 ) Noncurrent liabilities (35 ) Total liabilities (497 ) Redeemable noncontrolling interest (466 ) Net assets acquired $ 988 The following table provides the details of intangible assets acquired, by major class and weighted average useful life: (US$ in millions) Useful life Customer relationships 15 years $ 265 Intellectual property 10 years 120 Trade names 15 years 51 Favorable leases 38 years 27 Total intangible assets $ 463 The $263 million of goodwill recognized was assigned to the Edible Oil Products segment. The goodwill recognized is primarily attributable to expected synergies and the assembled workforce of Loders. None of the goodwill is expected to be deductible for income tax purposes. The amounts of revenue and earnings of Loders included in Bunge's condensed consolidated statement of income from the acquisition date to the period ended March 31, 2018 are as follows: (US$ in millions) Net sales $ 137 Income (loss) from continuing operations $ — The following represents the supplemental pro forma results of the combined entity as if Loders was acquired on January 1, 2017: Three months ended March 31, (US$ in millions) 2018 2017 Net sales $ 10,945 $ 11,541 Income from continuing operations $ (11 ) $ 44 The supplemental pro forma amounts for income from continuing operations above have been adjusted to reflect additional depreciation and amortization that would have been charged assuming the fair value adjustments to property, plant and equipment and intangible assets had been applied on January 1, 2017. Additionally, these amounts were also adjusted to reflect additional interest expense on the $1 billion of senior notes issued in connection with the acquisition, as if such issuance occurred on January 1, 2017. 2018 supplemental pro forma income from continuing operations was also adjusted to exclude $5 million of acquisition and integration related costs incurred in 2018, while 2017 supplemental pro forma income from continuing operations was adjusted to include these charges. Supplemental pro forma financial information is not necessarily indicative of the Company's actual results of operations if the acquisition had been completed at the date indicated, nor is it necessarily an indication of future operating results. Amounts do not include any operating efficiencies or cost savings that the Company believes are achievable. The fair value of the 30% redeemable noncontrolling interest in Loders is estimated to be $466 million . The fair value was estimated based as 30% of the total equity value of Loders based on the transaction price for the 70% stake in Loders, considering the cash paid and the value of the put/call provisions. See Note 16 for more information related to this redeemable noncontrolling interest. Other acquisitions On January 30, 2018, Bunge acquired Minsa Corporation for an approximate initial purchase price of $75 million , subject to certain post-closing adjustments based on the net operating assets delivered on the closing date and the achievement of certain earnings targets based on results of the year ended December 31, 2017. As a result of the transaction, Bunge acquired two corn mills in the United States. The preliminary purchase price allocation resulted in $7 million of working capital, $38 million allocated to property, plant, and equipment, $20 million to finite-lived intangible assets, and $10 million to goodwill. Bunge anticipates finalizing the purchase price by the end of the third quarter of 2018. |
TRADE STRUCTURED FINANCE PROGRA
TRADE STRUCTURED FINANCE PROGRAM | 3 Months Ended |
Mar. 31, 2018 | |
Trade Structured Finance Program [Abstract] | |
TRADE STRUCTURED FINANCE PROGRAM | TRADE STRUCTURED FINANCE PROGRAM Bunge engages in various trade structured finance activities to leverage the value of its trade flows across its operating regions. For the three months ended March 31, 2018 and 2017 , the net returns from these activities were $8 million and $11 million , respectively, and were included as a reduction of cost of goods sold in the accompanying condensed consolidated statements of income. These activities include programs under which Bunge generally obtains U.S. dollar-denominated letters of credit (“LCs”) (each based on an underlying commodity trade flow) from financial institutions and time deposits denominated in either the local currency of the financial institutions' counterparties or in U.S. dollars, as well as foreign exchange forward contracts, and other programs in which trade related payables are set-off against receivables, all of which are subject to legally enforceable set-off agreements. The assets and liabilities related to the program are reflected in the condensed consolidated balance sheets as Time deposits under trade structured finance program and Letter of credit obligations under trade structured finance program, respectively. The fair values approximated the carrying amount of the related financial instruments and are all Level 2 measurements. As of March 31, 2018 and December 31, 2017 , receivables and trade payables of $300 million and $1,196 million, respectively, and time deposits and LCs of $6,347 million and $6,321 million , respectively, were presented net on the condensed consolidated balance sheets as the criteria of ASC 210-20, Offsetting , had been met. At March 31, 2018 and December 31, 2017 , time deposits, including those presented on a net basis, carried weighted-average interest rates of 3.01% and 2.98% , respectively. During the three months ended March 31, 2018 and 2017 , total net proceeds from issuances of LCs were $1,488 million and $1,604 million , respectively. These cash inflows are offset by the related cash outflows resulting from placement of the time deposits and repayment of the LCs. All cash flows related to the programs are included in operating activities in the condensed consolidated statements of cash flows. |
INVENTORIES
INVENTORIES | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories by segment are presented below. Readily marketable inventories (“RMI”) are agricultural commodity inventories, such as soybeans, soybean meal, soybean oil, corn, and wheat carried at fair value because of their commodity characteristics, widely available markets, and international pricing mechanisms. All other inventories are carried at lower of cost or net realizable value. (US$ in millions) March 31, December 31, Agribusiness (1) $ 5,453 $ 4,022 Edible Oil Products (2) 885 458 Milling Products 213 196 Sugar and Bioenergy (3) 337 333 Fertilizer 64 65 Total $ 6,952 $ 5,074 (1) Includes RMI of $5,255 million and $3,865 million at March 31, 2018 and December 31, 2017 , respectively. Of these amounts, $4,043 million and $2,694 million can be attributable to merchandising activities at March 31, 2018 and December 31, 2017 , respectively. (2) Includes RMI of bulk soybean and canola oil in the aggregate amount of $97 million and $115 million at March 31, 2018 and December 31, 2017 , respectively. (3) Includes sugar RMI of $58 million and $76 million at March 31, 2018 and December 31, 2017 , respectively. Of these amounts, $52 million and $73 million can be attributable to merchandising activities at March 31, 2018 and December 31, 2017 , respectively. |
OTHER CURRENT ASSETS
OTHER CURRENT ASSETS | 3 Months Ended |
Mar. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER CURRENT ASSETS | OTHER CURRENT ASSETS Other current assets consist of the following: (US$ in millions) March 31, December 31, Unrealized gains on derivative contracts, at fair value $ 1,352 $ 910 Prepaid commodity purchase contracts (1) 395 282 Secured advances to suppliers, net (2) 403 412 Recoverable taxes, net 472 488 Margin deposits 450 258 Marketable securities, at fair value, and other short-term investments 632 213 Deferred purchase price receivable, at fair value (3) 108 107 Income taxes receivable 201 192 Prepaid expenses 174 125 Other 264 240 Total $ 4,451 $ 3,227 (1) Prepaid commodity purchase contracts represent advance payments against contracts for future delivery of specified quantities of agricultural commodities. (2) Bunge provides cash advances to suppliers, primarily Brazilian farmers of soybeans and sugarcane, to finance a portion of the suppliers’ production costs. Bunge does not bear any of the costs or operational risks associated with the related growing crops. The advances are largely collateralized by future crops and physical assets of the suppliers, carry a local market interest rate, and settle when the farmer’s crop is harvested and sold. The secured advances to farmers are reported net of allowances of $1 million at March 31, 2018 and $1 million at December 31, 2017 . Interest earned on secured advances to suppliers of $10 million and $16 million for the three months ended March 31, 2018 and 2017 , respectively, is included in net sales in the condensed consolidated statements of income. (3) Deferred purchase price receivable represents additional credit support for the investment conduits in Bunge’s accounts receivables sales program (see Note 13). Marketable Securities and Other Short-Term Investments - Bunge invests in foreign government securities, corporate debt securities, deposits, and other securities. The following is a summary of amounts recorded in the condensed consolidated balance sheets for marketable securities and other short-term investments. (US$ in millions) March 31, December 31, Foreign government securities $ 536 $ 145 Corporate debt securities 70 59 Certificates of deposit/time deposits 26 — Other — 9 Total marketable securities and other short-term investments $ 632 $ 213 As of March 31, 2018 , total marketable securities and other short-term investments includes $603 million that are recorded at fair value and $29 million of other short-term investments. As of December 31, 2017 , total marketable securities and other short-term investments includes $3 million of assets classified as available for sale, $209 million as trading and $1 million as other short-term investments. Due to the short term nature of these investments, carrying value approximates fair value. |
OTHER NON-CURRENT ASSETS
OTHER NON-CURRENT ASSETS | 3 Months Ended |
Mar. 31, 2018 | |
Other Assets, Noncurrent [Abstract] | |
OTHER NON-CURRENT ASSETS | OTHER NON-CURRENT ASSETS Other non-current assets consist of the following: (US$ in millions) March 31, December 31, Recoverable taxes, net (1) $ 192 $ 155 Judicial deposits (1) 139 140 Other long-term receivables 12 12 Income taxes receivable (1) 296 307 Long-term investments 84 66 Affiliate loans receivable 24 24 Long-term receivables from farmers in Brazil, net (1) 133 131 Other 199 193 Total $ 1,079 $ 1,028 (1) These non-current assets arise primarily from Bunge’s Brazilian operations and their realization could take several years. Recoverable taxes, net - Recoverable taxes are reported net of allowances of $31 million and $28 million at March 31, 2018 and December 31, 2017 , respectively. Judicial deposits - Judicial deposits are funds that Bunge has placed on deposit with the courts in Brazil. These funds are held in judicial escrow relating to certain legal proceedings pending legal resolution and bear interest at the SELIC rate, which is the benchmark rate of the Brazilian central bank. Income taxes receivable - Income taxes receivable includes overpayments of current income taxes plus accrued interest. These income tax prepayments are expected to be primarily utilized for settlement of future income tax obligations. Income taxes receivable in Brazil bear interest at the SELIC rate. Affiliate loans receivable - Affiliate loans receivable are primarily interest bearing receivables from unconsolidated affiliates with a remaining maturity of greater than one year. Long-term receivables from farmers in Brazil, net of reserves - Bunge provides financing to farmers in Brazil, primarily through secured advances against farmer commitments to deliver agricultural commodities (primarily soybeans) upon harvest of the then-current year’s crop and through credit sales of fertilizer to farmers. The average recorded investment in long-term receivables from farmers in Brazil for the three months ended March 31, 2018 and the year ended December 31, 2017 was $252 million and $253 million , respectively. The table below summarizes Bunge’s recorded investment in long-term receivables from farmers in Brazil and the related allowance amounts. March 31, 2018 December 31, 2017 (US$ in millions) Recorded Investment Allowance Recorded Investment Allowance For which an allowance has been provided: Legal collection process (1) $ 108 $ 96 $ 98 $ 91 Renegotiated amounts (2) 22 20 25 22 For which no allowance has been provided: Legal collection process (1) 75 — 76 — Renegotiated amounts (2) 17 — 17 — Other long-term receivables 27 — 28 — Total $ 249 $ 116 $ 244 $ 113 (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 table below summarizes the activity in the allowance for doubtful accounts related to long-term receivables from farmers in Brazil. Three Months Ended (US$ in millions) 2018 2017 Beginning balance $ 113 $ 109 Bad debt provisions 4 19 Recoveries (1 ) (12 ) Write-offs — (1 ) Foreign exchange translation — (2 ) Ending balance $ 116 $ 113 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income tax expense is provided on an interim basis based on management’s estimate of the annual effective income tax rate and includes the tax effects of certain discrete items, such as changes in tax laws or tax rates or other unusual or non-recurring tax adjustments in the interim period in which they occur. In addition, 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, including the realizability of deferred tax assets. Volatility in earnings within a taxing jurisdiction could result in a determination that additional valuation allowance adjustments may be warranted. While management does not currently believe any future valuation allowance adjustments will be significant, the actual results may be different and the impact of such amounts will be recorded in the period in which management's assessment changes. For the three months ended March 31, 2018 and 2017 , income tax expense related to continuing operations was $19 million and $28 million . The high tax rates for the first quarter of 2018 and 2017 were primarily due to unfavorable earnings mix associated with lower overall pretax income for the period and pretax losses in certain jurisdictions. As a global enterprise, Bunge files income tax returns that are subject to periodic examination and challenged 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 is more likely than not to be realized. On December 22, 2017 , H.R. 1, commonly known as the “Tax Cuts and Jobs Act” (the “Tax Act”) was signed into U.S. law. The Tax Act lowers the U.S. statutory corporate tax rate from 35% to 21% starting in 2018 , introduces further limitations on the deductibility of interest expense, and imposes a one-time transition tax (“Transition Tax”) on deemed repatriated earnings of certain foreign subsidiaries (non-United States subsidiaries owned by Bunge U.S. affiliates). In addition, the Tax Act introduces additional base-broadening measures, including Global Intangible Low-Taxed Income (“GILTI”) and the Base-Erosion Anti-Abuse Tax (“BEAT”). Bunge recognized the income tax effects of the Tax Act in accordance with Staff Accounting Bulletin No. 118, which provides SEC staff guidance for the application of ASC 740, Income Taxes, in the reporting period in which the Tax Act was signed into law. As such, our financial results reflect the income tax effects of the Tax Act for which the accounting under ASC Topic 740 is complete and provisional amounts for those specific income tax effects of the Tax Legislation for which the accounting under ASC Topic 740 is incomplete but a reasonable estimate could be determined. Pursuant to SAB 118, adjustments to the provisional amounts recorded by us as of December 31, 2017 that are identified within a subsequent measurement period of up to one year from the enactment date will be included as an adjustment to the tax expense from continuing operations in the period the amounts are determined. Bunge recognized a provisional charge of $60 million in the fourth quarter of 2017 , associated with revaluing deferred tax assets and liabilities at the new statutory rate, accruing the Transition Tax, and accruing incremental withholding taxes on future repatriation of earnings to the United States. During the first quarter of 2018, Bunge continued to analyze and refine its assessment of the Tax Act, which involves evaluating guidance from the U.S. taxing authorities and refining tax return positions. While Bunge has evaluated provisional amounts recorded in 2017, Bunge did not record any adjustments to the provisional amounts in the first quarter of 2018. Bunge expects to complete its analysis during 2018 , and record an adjustment to tax expense if applicable. Bunge also expects to conclude on the policy election to be made in connection with the accounting for GILTI later in 2018. |
OTHER CURRENT LIABILITIES
OTHER CURRENT LIABILITIES | 3 Months Ended |
Mar. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
OTHER CURRENT LIABILITIES | OTHER CURRENT LIABILITIES Other current liabilities consist of the following: (US$ in millions) March 31, December 31, Unrealized losses on derivative contracts, at fair value $ 1,773 $ 897 Accrued liabilities 602 606 Advances on sales 310 406 Other 331 277 Total $ 3,016 $ 2,186 |
FINANCIAL INSTRUMENTS AND FAIR
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2018 | |
Financial Instruments And Fair Value Measurements [Abstract] | |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | 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 5 for trade structured finance program, Note 13 for deferred purchase price receivable related to sales of trade receivables, Note 8 for long-term receivables from farmers in Brazil, net and other long-term investments, and Note 12 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 fair value standard describes three levels within its hierarchy that may be used to measure fair value. Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 1 assets and liabilities include exchange traded derivative contracts. Level 2: Observable inputs, including Level 1 prices (adjusted), quoted prices for similar assets or liabilities, quoted prices in markets that are less active than traded exchanges and other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include readily marketable inventories and over-the-counter ("OTC") commodity purchase and sale contracts and other OTC derivatives whose value is determined using pricing models with inputs that are generally based on exchange traded prices, adjusted for location specific inputs that are primarily observable in the market or can be derived principally from or corroborated by observable market data. Level 3: Unobservable inputs that are supported by little or no market activity and that are a significant component of the fair value of the assets or liabilities. In evaluating the significance of fair value inputs, Bunge gives consideration to items that individually or when aggregated with other inputs, generally represent more than 10% of the fair value of the assets or liabilities. For such identified inputs, judgments are required when evaluating both quantitative and qualitative factors in the determination of significance for purposes of fair value level classification and disclosure. Level 3 assets and liabilities include assets and liabilities whose value is determined using proprietary pricing models, discounted cash flow methodologies or similar techniques; as well as, assets and liabilities for which the determination of fair value requires significant management judgment or estimation. Bunge believes a change in these inputs would not result in a significant change in the fair values. The majority of Bunge's exchange traded agricultural commodity futures are settled daily generally through its clearing subsidiary and, therefore, such futures are not included in the table below. Assets and liabilities are classified in their entirety based on the lowest level of input that is a significant component of the fair value measurement. The lowest level of input is considered Level 3. The following table sets forth, by level, Bunge’s assets and liabilities that were accounted for at fair value on a recurring basis. Fair Value Measurements at Reporting Date March 31, 2018 December 31, 2017 (US$ in millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Readily marketable inventories (Note 6) $ — $ 4,550 $ 860 $ 5,410 $ — $ 3,691 $ 365 $ 4,056 Trade accounts receivable (1) — 1 — 1 — 5 — 5 Unrealized gain on designated derivative contracts (2) : Interest rate — 1 — 1 — — — — Foreign exchange — 34 — 34 — 18 — 18 Unrealized gain on undesignated derivative contracts (2): Interest rate — 6 — 6 — 4 — 4 Foreign exchange 4 464 — 468 — 321 — 321 Commodities 146 634 26 806 115 389 19 523 Freight 19 — 11 30 18 — 8 26 Energy 10 — — 10 18 — — 18 Deferred purchase price receivable (Note 13 ) — 108 — 108 — 107 — 107 Other (3) 30 644 — 674 15 234 — 249 Total assets $ 209 $ 6,442 $ 897 $ 7,548 $ 166 $ 4,769 $ 392 $ 5,327 Liabilities: Trade accounts payable (1) $ — $ 402 $ 317 $ 719 $ — $ 467 $ 116 $ 583 Unrealized loss on designated derivative contracts (4): Interest rate — 55 — 55 — 31 — 31 Foreign exchange — 1 — 1 — 2 — 2 Unrealized loss on undesignated derivative contracts (4): Interest rate — 1 — 1 — 1 — 1 Foreign exchange 2 580 — 582 1 430 — 431 Commodities 199 925 22 1,146 141 271 20 432 Freight 25 — 9 34 15 — 3 18 Energy 8 1 1 10 9 2 2 13 Total liabilities $ 234 $ 1,965 $ 349 $ 2,548 $ 166 $ 1,204 $ 141 $ 1,511 (1) 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 $3 million and $0 million included in other non-current assets at March 31, 2018 and December 31, 2017 , 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 $55 million and $31 million included in other non-current liabilities at March 31, 2018 and December 31, 2017 , respectively. Derivatives —Exchange traded futures and options contracts and exchange cleared contracts are valued based on unadjusted quoted prices in active markets and are classified within Level 1. Bunge's forward commodity purchase and sale contracts are classified as derivatives along with other OTC derivative instruments relating primarily to freight, energy, foreign exchange and interest rates, and are classified within Level 2 or Level 3 as described below. Bunge estimates fair values based on exchange quoted prices, adjusted as appropriate for differences in local markets. These differences are generally valued using inputs from broker or dealer quotations, or market transactions in either the listed or OTC markets. In such cases, these derivative contracts are classified within Level 2. OTC derivative contracts include swaps, options and structured transactions that are fair valued are generally determined using quantitative models that require the use of multiple market inputs including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets which are not highly active, other observable inputs relevant to the asset or liability, and market inputs corroborated by correlation or other means. These valuation models include inputs such as interest rates, prices and indices to generate continuous yield or pricing curves and volatility factors. Where observable inputs are available for substantially the full term of the asset or liability, the instrument is categorized in Level 2. Certain OTC derivatives trade in less active markets with less availability of pricing information and certain structured transactions can require internally developed model inputs that might not be observable in or corroborated by the market. When unobservable inputs have a significant impact on the measurement of fair value, the instrument is categorized in Level 3. Exchange traded or cleared derivative contracts are classified in Level 1, thus transfers of assets and liabilities into and/or out of Level 1 occur infrequently. Transfers into Level 1 would generally only be expected to occur when an exchange cleared derivative contract historically valued using a valuation model as the result of a lack of observable inputs becomes sufficiently observable, resulting in the valuation price being essentially the exchange traded price. There were no significant transfers into or out of Level 1 during the periods presented. Readily marketable inventories —RMI reported at fair value are valued based on commodity futures exchange quotations, broker or dealer quotations, or market transactions in either listed or OTC markets with appropriate adjustments for differences in local markets where Bunge's inventories are located. In such cases, the inventory is classified within Level 2. Certain inventories may utilize significant unobservable data related to local market adjustments to determine fair value. In such cases, the inventory is classified as Level 3. If Bunge used different methods or factors to determine fair values, amounts reported as unrealized gains and losses on derivative contracts and RMI at fair value in the condensed consolidated balance sheets and condensed consolidated statements of income could differ. Additionally, if market conditions change subsequent to the reporting date, amounts reported in future periods as unrealized gains and losses on derivative contracts and RMI at fair value in the condensed consolidated balance sheets and condensed consolidated statements of income could differ. Level 3 Measurements —Transfers in and/or out of Level 3 represent existing assets or liabilities that were either previously categorized as a higher level for which the inputs to the model became unobservable or assets and liabilities that were previously classified as Level 3 for which the lowest significant input became observable during the period. Bunge's policy regarding the timing of transfers between levels is to record the transfers at the beginning of the reporting period. Level 3 Derivatives —Level 3 derivative instruments utilize both market observable and unobservable inputs within the fair value measurements. These inputs include commodity prices, price volatility, interest rates, volumes and locations. In addition, with the exception of the exchange cleared instruments, Bunge is exposed to loss in the event of the non-performance by counterparties on OTC derivative instruments and forward purchase and sale contracts. Adjustments are made to fair values on occasions when non-performance risk is determined to represent a significant input in Bunge's fair value determination. These adjustments are based on Bunge's estimate of the potential loss in the event of counterparty non-performance. Bunge did not have significant adjustments related to non-performance by counterparties at March 31, 2018 or December 31, 2017 . Level 3 Readily marketable inventories and other —The significant unobservable inputs resulting in Level 3 classification for RMI, physically settled forward purchase and sale contracts, and trade accounts receivable and payable, net, relate to certain management estimations regarding costs of transportation and other local market or location-related adjustments, primarily freight related adjustments in the interior of Brazil and the lack of market corroborated information in Canada. In both situations, Bunge uses proprietary information such as purchase and sale contracts and contracted prices to value freight, premiums and discounts in 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 months ended March 31, 2018 and 2017 . These instruments were valued using pricing models that management believes reflect the assumptions that would be used by a marketplace participant. Three Months Ended March 31, 2018 (US$ in millions) Derivatives, Net Readily Marketable Inventories Trade Accounts Receivable/ Payable, Net Total Balance, January 1, 2018 $ 2 $ 365 $ (116 ) $ 251 Total gains and (losses), realized/unrealized included in cost of goods sold (3 ) 63 10 70 Purchases 9 613 (248 ) 374 Sales — (279 ) — (279 ) Issuances (9 ) — — (9 ) Settlements 8 — 40 48 Transfers into Level 3 (2 ) 124 (3 ) 119 Transfers out of Level 3 — (26 ) — (26 ) Balance, March 31, 2018 $ 5 $ 860 $ (317 ) $ 548 1) Derivatives, net, readily marketable inventories, and trade accounts receivable/payable net, include gains/(losses) of $(12) million , $(3) million and $0 million , respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at March 31, 2018 . Three Months Ended March 31, 2017 (US$ in millions) Derivatives, Net Readily Marketable Inventories Trade Accounts Receivable/ Payable, Net Total Balance, January 1, 2017 $ (51 ) $ 237 $ (44 ) $ 142 Total gains and (losses), realized/unrealized included in cost of goods sold (59 ) (14 ) 7 (66 ) Purchases 4 764 (331 ) 437 Sales — (372 ) — (372 ) Issuances (2 ) — — (2 ) Settlements 17 — — 17 Transfers into Level 3 (4 ) 184 (3 ) 177 Transfers out of Level 3 23 (56 ) (1 ) (34 ) Balance, March 31, 2017 $ (72 ) $ 743 $ (372 ) $ 299 1) Derivatives, net, readily marketable inventories, and trade accounts receivable/payable net, includes gains/(losses) of $(54) million , $(13) million and $2 million , respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at March 31, 2017 . Derivative Instruments and Hedging Activities Hedge accounting derivatives - Bunge uses derivatives in qualifying hedge accounting relationships to manage certain of its interest rate and foreign currency risks. In executing these hedge strategies, Bunge primarily relies on the shortcut and critical terms match methods in designing its hedge accounting strategy, which results in little to no net earnings impact for these hedge relationships. Bunge monitors these relationships on a quarterly basis and will perform a quantitative analysis to validate the assertion that the hedges are highly effective if there are changes to the hedged item or hedging derivative. Fair value hedges of interest rate risk - For certain long term debt that is issued at a fixed rate, Bunge enters into interest rate swaps to effectively convert the fixed interest rate to a variable interest rate. These swaps may be for the full term of the debt or for only a part of the term. As Bunge applies the shortcut method for all of its interest rate hedges on long term debt, the notional amount of the swap is equal to the amortized cost basis of the hedged debt. Fair value hedges of currency risk - For certain loans that are not in the functional currency of the reporting entity holding them, Bunge enters into cross currency swaps to convert the risk to the functional currency of the entity. The changes in currency risk on the derivative go to Other income (expense), whereas, the coupon on the swap goes to interest income. Changes in basis risk are held in OCI until realized through the coupon. Cash flow hedges of currency risk - Bunge manages currency risk on certain forecasted purchases and sales with currency forwards. The change in the value of the forward is classified in accumulated other comprehensive income (loss) until the transaction affects earnings, at which time the change in value of the currency forward is reclassified to sales or cost of goods sold. These hedges mature September 2018 . Of the amount currently in accumulated other comprehensive income (loss), $3 million is expected to be reclassified to earnings in the next twelve months. Net investment hedges - Bunge hedges the currency risk of certain of its foreign subsidiaries with currency forwards and intercompany loans for which the currency risk is remeasured through accumulated other comprehensive income (loss). The table below provides information about the balance sheet values of hedged items and the notional amount of derivatives used in hedging strategies. (US$ in millions) March 31, 2018 December 31, 2017 Hedging instrument type: Fair value hedges of interest rate risk Carrying value of hedged debt $ 2,272 $ 2,071 Cumulative adjustment to long-term debt from application of hedge accounting $ (54 ) $ (31 ) Interest rate swap - notional amount $ 2,336 $ 2,109 Fair value hedges of currency risk Carrying value of hedged debt $ 324 $ — Cumulative adjustment to long-term debt from application of hedge accounting $ — $ — Cross currency swap - notional amount $ 322 $ — Cash flow hedges of currency risk Foreign currency forward - notional amount $ 155 $ 237 Net investment hedges Foreign currency forward - notional amount $ 340 $ 1,000 Carrying value of non-derivative hedging instrument $ 982 $ 725 In addition to using derivatives in qualifying hedge relationships, Bunge enters into derivatives to economically hedge its exposure to a variety of market risks it incurs in the normal course of operations. Interest rate derivatives are used to hedge exposures to our financial instrument portfolios and debt issuances. The impact of changes in fair value of these instruments is presented in interest expense. Currency derivatives are used to hedge the balance sheet and commercial exposures that arise from our global operations. The impact of changes in fair value of these instruments is presented in Cost of goods sold when hedging commercial exposures and Foreign currency gains (losses) when hedging monetary exposures. Agricultural commodity derivatives are used to manage our inventory and forward purchase and sales contracts. Contracts to purchase agricultural commodities generally relate to current or future crop years for delivery periods quoted by regulated commodity exchanges. Contracts for the sale of agricultural commodities generally do not extend beyond one future crop cycle. The impact of changes in fair value of these instruments is presented in Cost of goods sold. Bunge uses derivative instruments referred to as freight forward agreements ("FFA") and FFA options to hedge portions of its current and anticipated ocean freight costs. The impact of changes in fair value of these instruments is presented in Cost of goods sold. Bunge uses energy derivative instruments to manage its exposure to volatility in energy costs. Hedges may be entered into for natural gas, electricity, coal and fuel oil, including bunker fuel. The impact of changes in fair value of these instruments is presented in Cost of goods sold. The table below summarizes the volume of economic derivatives as of March 31, 2018 and 2017 . For those contracts traded bilaterally through the over-the-counter markets (forwards and swaps), the gross position is provided. For exchange traded (futures, FRAs, FFAs and options) and cleared positions (energy swaps), the net position is provided. March 31, 2018 2017 Unit of Measure (US$ in millions) Long (Short) Long (Short) Interest rate Swaps $ 251 $ (1,967 ) $ 1,476 $ (2,048 ) $ Notional Futures $ — $ (2 ) $ — $ — $ Notional FRAs $ 338 $ (423 ) $ 825 $ — $ Notional Currency Forwards $ 12,351 $ (11,948 ) $ 8,341 $ (9,515 ) $ Notional Swaps $ 124 $ (360 ) $ 389 $ (265 ) $ Notional Futures $ — $ (59 ) $ — $ (90 ) $ Notional Options $ 868 $ (761 ) $ 157 $ (230 ) Delta Agricultural commodities Forwards 34,369,156 (33,458,373 ) 26,296,335 (35,909,050 ) Metric Tons Swaps 689,796 (10,663,868 ) 1,768,321 (6,932,933 ) Metric Tons Futures 5,707,101 — 768,446 — Metric Tons Options 505,421 — — (968,475 ) Metric Tons Ocean freight FFA — (7,469 ) 1,264 — Hire Days FFA options 719 — — (985 ) Hire Days Natural gas Swaps 3,852,305 — 1,236,469 — MMBtus Futures 1,553,303 — 5,167,500 — MMBtus Energy - other Forwards 5,535,248 — 6,255,869 — Metric Tons Futures 35,743 — — (4,454 ) Metric Tons Options — — — (403 ) Metric Tons Swaps 221,500 — 271,900 — Metric Tons The Effect of Financial Instruments on the Condensed Consolidated Statements of Income The table below summarizes the net effect of derivative instruments on the condensed consolidated statements of income for the three months ended March 31, 2018 and 2017 . Gain (Loss) Recognized in Income on Derivative Instruments Three Months Ended March 31, (US$ in millions) 2018 2017 Income statement classification Type of derivative Cost of goods sold Economic hedges Foreign currency $ (35 ) $ 92 Commodities (260 ) 270 Freight (5 ) (8 ) Energy (2 ) (10 ) Total Cost of goods sold $ (302 ) $ 344 Interest expense Hedge accounting Interest rate $ 2 $ 5 Foreign currency gains (losses) Hedge accounting Foreign currency $ 3 $ — Economic hedges Foreign currency (3 ) 77 Total Foreign currency gains (losses) $ — $ 77 Other comprehensive income (loss) Gains and losses on derivatives used as cash flow hedges of foreign currency risk included in other comprehensive income (loss) during the period $ 2 $ 5 Gains and losses on derivatives used as net investment hedges included in other comprehensive income (loss) during the period $ 19 $ — Foreign currency gains and losses on intercompany loans used as net investment hedges included in other comprehensive income (loss) during the period $ (17 ) $ (12 ) Gains and losses on derivatives used as fair value hedges of foreign currency risk included in other comprehensive income (loss) during the period (1 ) — Amounts released from accumulated other comprehensive income (loss) during the period Cash flow hedge of foreign currency risk 3 2 |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT 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 cost of borrowing under the Liquidity Facility would typically be higher than the cost of issuing under Bunge’s commercial paper program. At March 31, 2018 , there were $458 million borrowings outstanding under the commercial paper program and no borrowings under the Liquidity Facility. At March 31, 2018 , Bunge had $3,296 million of unused and available borrowing capacity under its committed credit facilities totaling $ 5,015 million with a number of lending institutions. The fair value of Bunge’s long-term debt is based on interest rates currently available on comparable maturities to companies with credit standing similar to that of Bunge. The carrying amounts and fair value of long-term debt are as follows: March 31, 2018 December 31, 2017 (US$ in millions) Carrying Value Fair Value (Level 2) Carrying Fair Value Long-term debt, including current portion $ 5,460 $ 5,567 $ 4,175 $ 4,337 On May 1, 2018, in connection with Bunge's previously announced strategy to reduce its exposure to the sugar milling business in Brazil, Bunge has entered into an unsecured $700 million , 5 year revolving credit facility, which upon fulfillment of certain conditions is convertible into a non-recourse secured term loan facility with the Company's sugar milling business as the borrower. This will provide future financial flexibility to the Company's sugar milling business on a stand-alone basis. Additionally, subject to lender approval, Bunge may request an increase, in an amount not to exceed $100 million , to the revolving credit facility commitments pursuant to an accordion provision set forth in the revolving credit facility. |
TRADE RECEIVABLES SECURITIZATIO
TRADE RECEIVABLES SECURITIZATION PROGRAM | 3 Months Ended |
Mar. 31, 2018 | |
Transfers and Servicing [Abstract] | |
TRADE RECEIVABLES SECURITIZATION PROGRAM | TRADE RECEIVABLES SECURITIZATION PROGRAM Bunge and certain of its subsidiaries participate in a trade receivables securitization program (the “Program”) with a financial institution, as administrative agent, and certain commercial paper conduit purchasers and committed purchasers that provides for funding of up to $700 million against receivables sold into the Program. (US$ in millions) March 31, December 31, Receivables sold which were derecognized from Bunge's balance sheet $ 769 $ 810 Deferred purchase price included in other current assets $ 108 $ 107 The table below summarizes the cash flows and discounts of Bunge’s trade receivables associated with the Program. Servicing fees under the Program were not significant in any period. Three Months Ended (US$ in millions) 2018 2017 Gross receivables sold $ 2,322 $ 2,259 Proceeds received in cash related to transfer of receivables $ 2,311 $ 2,252 Cash collections from customers on receivables previously sold $ 2,462 $ 2,347 Discounts related to gross receivables sold included in SG&A $ 3 $ 2 Non-cash activity for the program in the reporting period is represented by the difference between gross receivables sold and cash collections from customers on receivables previously sold. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Notes receivable - Bunge holds a note receivable from Navegações Unidas Tapajós S.A., a 50% equity method investment in Brazil, having a carrying value of $22 million at March 31, 2018 , which matures in June 2019, with interest based on 80% of CDI, the average one‑day interbank deposit rate in Brazil. Bunge holds a note receivable from Solazyme Bunge Renewable Oils Cooperatief U.A., a 49.9% equity method investment in Brazil, having a carrying value of $9 million at March 31, 2018 , with an interest rate based on 100% of CDI, the average one-day interbank deposit rate in Brazil. Bunge holds a note receivable from its affiliate Bunge SCF Grain LLC, a 50% equity method investment, with a carrying value of $14 million at March 31, 2018 , which matures on March 31, 2019, with an interest rate based on LIBOR. In addition, Bunge held notes receivables from other related parties totaling $4 million at March 31, 2018 . Other - Bunge purchased soybeans and other commodity products and received port services from certain of its unconsolidated investees, totaling $271 million and $267 million for the three months ended March 31, 2018 and 2017 , respectively. Bunge also sold soybeans and other commodity products and provided port services to certain of its unconsolidated investees, totaling $94 million and $66 million for the three months ended March 31, 2018 and 2017 , re s pectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Bunge is party to a large number of claims and lawsuits, primarily non-income tax and labor claims in Brazil and non-income tax claims in Argentina, arising in the normal course of business. The ability to predict the ultimate outcome of such matters involves judgments, estimates and inherent uncertainties. Bunge records liabilities related to its general claims and lawsuits when the exposure item becomes probable and can be reasonably estimated. Bunge management does not expect these matters to have a material adverse effect on Bunge’s financial condition, results of operations or liquidity. However, these matters are subject to inherent uncertainties and there exists the remote possibility of an adverse impact on Bunge’s position in the period the uncertainties are resolved whereby the settlement of the identified contingencies could exceed the amount of provisions included in the condensed consolidated balance sheets. Included in other non-current liabilities at March 31, 2018 and December 31, 2017 are the following amounts related to these matters: (US$ in millions) March 31, December 31, Non-income tax claims $ 159 $ 161 Labor claims 89 92 Civil and other claims 104 103 Total $ 352 $ 356 Brazil Indirect Taxes Non-income tax claims - These tax claims relate principally to claims against Bunge’s Brazilian subsidiaries, primarily value-added tax claims (ICMS, ISS, IPI and PIS/COFINS). The determination of the manner in which various Brazilian federal, state and municipal taxes apply to the operations of Bunge is subject to varying interpretations arising from the complex nature of Brazilian tax law. In addition to the matter discussed below, Bunge monitors other potential claims in Brazil regarding these value-added taxes. In particular, Bunge monitors the Brazilian federal and state governments’ responses to recent Brazilian Supreme Court decisions invalidating on constitutional grounds certain ICMS incentives and benefits granted by various states. While Bunge was not a recipient of any of the incentives and benefits that were the subject of these Supreme Court decisions, it has received other similar tax incentives and benefits which are being challenged before the Supreme Court. In August 2017, Complementary Law 160/2017 (“LC 160/2017”) was published, authorizing the states, through an agreement to be reached within the framework of CONFAZ (National Council of Fiscal Policy), to grant amnesty for tax debts arising from existing tax benefits granted without previous CONFAZ authorization and to maintain such existing benefits still in force for up to 15 years. In December 2017, Interstate Agreement ICMS 190/2017 was published to regulate Complementary Law 160/2017, which provides for the remission of tax credits originated from tax benefits granted without the previous approval of a CONFAZ Interstate Agreement. Bunge has not received any tax assessment from the states that granted these incentives or benefits related to their validity and, based on Bunge's evaluation of this matter as required by U.S. GAAP, no liability has been recorded in the condensed consolidated financial statements. On February 13, 2015, Brazil’s Supreme Federal Court ruled in a leading case that certain state ICMS tax credits for staple foods (including soy oil, margarine, mayonnaise and wheat flours) are unconstitutional. Bunge, like other companies in the Brazilian food industry, is involved in several administrative and judicial disputes with Brazilian states regarding these tax credits. While the leading case does not involve Bunge and each case is unique in facts and circumstances and applicable state law, the ruling has general precedent authority in lower court cases. Based on management’s review of the ruling (without considering the future success of any potential clarification or modulation of the ruling) and its general application to Bunge’s pending cases, management recorded a liability in the fourth quarter of 2014. Since 2015, Bunge settled a portion of its outstanding liabilities in amnesty programs in certain Brazilian states. As of March 31, 2018 , the accrued liability was 406 million Brazilian reais (approximately $122 million ). As of March 31, 2018 , the Brazilian federal and state authorities have concluded examinations of the ICMS and PIS COFINS tax returns and have issued the outstanding claims as of: (US$ in millions) Years Examined March 31, 2018 December 31, 2017 ICMS 1990 to Present $ 275 $ 281 PIS/COFINS 2004 through 2012 $ 199 $ 200 Argentina Export Tax Since 2010, the Argentine tax authorities have been conducting a review of income and other taxes paid by exporters and processors of cereals and other agricultural commodities in the country. In that regard, the Company has been subject to a number of assessments, proceedings, and claims related to its activities. In 2011, Bunge’s subsidiary in Argentina paid $112 million of accrued export tax obligations under protest and preserved its rights with respect to such payment. In 2012, the Argentine tax authorities further assessed interest on these payments, which as of March 31, 2018 , totaled approximately $270 million . In 2012, the Argentine government suspended Bunge’s Argentine subsidiary from a registry of grain traders. While the suspension has not had a material adverse effect on Bunge’s business in Argentina, these actions have resulted in additional administrative requirements and increased logistical costs on domestic grain shipments within Argentina. Bunge is challenging these actions in the Argentine courts. Labor claims — The labor claims are principally claims against Bunge’s Brazilian subsidiaries. The labor claims primarily relate to dismissals, severance, health and safety, salary adjustments and supplementary retirement benefits. Civil and other claims — The civil and other claims relate to various disputes with third parties, including suppliers and customers. During the first quarter of 2016, Bunge received a notice from the Brazilian Administrative Council for Economic Defense initiating an administrative proceeding against its Brazilian subsidiary and two of its employees, certain of its former employees, several other companies in the Brazilian wheat milling industry, and others for alleged anticompetitive activities in the north and northeast of Brazil. Bunge is defending against this action; however, the proceedings are at an early stage and Bunge cannot, at this time, reasonably predict the ultimate outcome of the proceedings or sanctions, if any, which may be imposed. Guarantees — Bunge has issued or was a party to the following guarantees at March 31, 2018 : (US$ in millions) Maximum Potential Future Payments Unconsolidated affiliates financing (1) (2) $ 210 Residual value guarantee (3) 269 Total $ 479 (1) Bunge issued guarantees to certain financial institutions related to debt of certain of its unconsolidated affiliates. The terms of the guarantees are equal to the terms of the related financings which have maturity dates in 2018 through 2034 . There are no recourse provisions or collateral that would enable Bunge to recover any amounts paid under these guarantees. At March 31, 2018 , Bunge recorded no obligation related to these guarantees. (2) Bunge issued guarantees to certain third parties related to performance of its unconsolidated affiliates. The terms of the guarantees are equal to the completion date of a port terminal which is expected to be completed in 2020 . There are no recourse provisions or collateral that would enable Bunge to recover any amounts paid under these guarantees. At March 31, 2018 , Bunge recorded no obligation related to these guarantees. (3) Bunge issued guarantees to certain financial institutions which are party to certain operating lease arrangements for railcars and barges. These guarantees provide for a minimum residual value to be received by the lessor at conclusion of the lease term. These leases expire at various dates from 2019 through 2024 . At March 31, 2018 , Bunge’s recorded obligation related to these guarantees was $2 million . Bunge Limited has provided a Guaranty to the Director of the Illinois Department of Agriculture as Trustee for Bunge North America, Inc. (“BNA”), an indirect wholly‑owned subsidiary, which guarantees all amounts due and owing by BNA to grain producers and/or depositors in the State of Illinois who have delivered commodities to BNA’s Illinois facilities. In addition, Bunge Limited has provided full and unconditional parent level guarantees of the outstanding indebtedness under certain credit facilities entered into, and senior notes issued, by its subsidiaries. As of March 31, 2018 , Bunge’s condensed consolidated balance sheet includes debt with a carrying amount of $6,175 million related to these guarantees. This debt includes the senior notes issued by three of Bunge’s 100% owned finance subsidiaries, Bunge Limited Finance Corp., Bunge Finance Europe, B.V. and Bunge N.A. Finance L.P. There are largely no restrictions on the ability of Bunge Limited Finance Corp., Bunge Finance Europe B.V. and Bunge N.A. Finance L.P. or any other Bunge subsidiary to transfer funds to Bunge Limited. |
REDEEMABLE NONCONTROLLING INTER
REDEEMABLE NONCONTROLLING INTEREST | 3 Months Ended |
Mar. 31, 2018 | |
Redeemable Noncontrolling Interest, Equity, Carrying Amount [Abstract] | |
REDEEMABLE NONCONTROLLING INTEREST | REDEEMABLE NONCONTROLLING INTEREST In connection with the acquisition of a 70% ownership interest in Loders, the Company has entered into a put/call arrangement with the Loders' minority shareholder, and may be required or elect to purchase the additional 30% ownership interest in Loders within a specified timeframe. The Company classifies these redeemable equity securities outside of permanent stockholders’ equity as the equity securities are redeemable at the option of the holder. The carrying amount of redeemable noncontrolling interests is the greater of: (i) the initial carrying amount, increased or decreased for the noncontrolling interests’ share of net income or loss, equity capital contributions and distributions or (ii) the redemption value. Any resulting increases in the redemption amount, in excess of the initial carrying amount, increased or decreased for the noncontrolling interests’ share of net income or loss and distributions, are affected by corresponding charges against retained earnings. Additionally, any such charges to retained earnings will affect net income (loss) available to Bunge common shareholders as part of Bunge's calculation of earnings per common share. |
EQUITY
EQUITY | 3 Months Ended |
Mar. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
EQUITY | EQUITY Accumulated other comprehensive income (loss) attributable to Bunge — The following table summarizes the balances of related after-tax components of accumulated other comprehensive income (loss) attributable to Bunge. (US$ in millions) Foreign Exchange Translation Adjustment Deferred Gains (Losses) on Hedging Activities Pension and Other Postretirement Liability Adjustments Unrealized Gains (Losses) on Investments Accumulated Other Comprehensive Income (Loss) Balance, January 1, 2018 $ (5,547 ) $ (244 ) $ (140 ) $ 1 $ (5,930 ) Other comprehensive income (loss) before reclassifications (15 ) 3 (1 ) — (13 ) Amount reclassified from accumulated other comprehensive income — (3 ) — (1 ) (4 ) Balance, March 31, 2018 $ (5,562 ) $ (244 ) $ (141 ) $ — $ (5,947 ) (US$ in millions) Foreign Exchange Deferred Pension and Other Unrealized Accumulated Balance, January 1, 2017 $ (5,734 ) $ (102 ) $ (145 ) $ 3 $ (5,978 ) Other comprehensive income (loss) before reclassifications 261 (7 ) — — 254 Amount reclassified from accumulated other comprehensive income — (2 ) — — (2 ) Balance, March 31, 2017 $ (5,473 ) $ (111 ) $ (145 ) $ 3 $ (5,726 ) |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE The following table sets forth the computation of basic and diluted earnings per common share. Three Months Ended (US$ in millions, except for share data) 2018 2017 Income (loss) from continuing operations $ (17 ) $ 54 Net (income) loss attributable to noncontrolling interests (2 ) (1 ) Income (loss) from continuing operations attributable to Bunge (19 ) 53 Convertible preference share dividends (8 ) (8 ) Income (loss) from discontinued operations, net of tax (2 ) (6 ) Net income (loss) available to Bunge common shareholders $ (29 ) $ 39 Weighted-average number of common shares outstanding: Basic 140,736,907 139,752,305 Effect of dilutive shares: —stock options and awards (1) — 1,144,851 —convertible preference shares (2) — — Diluted 140,736,907 140,897,156 Basic earnings per common share: Net income (loss) from continuing operations $ (0.20 ) $ 0.31 Net income (loss) from discontinued operations (0.01 ) (0.04 ) Net income (loss) attributable to Bunge common shareholders—basic $ (0.21 ) $ 0.27 Diluted earnings per common share: Net income (loss) from continuing operations $ (0.20 ) $ 0.31 Net income (loss) from discontinued operations (0.01 ) (0.04 ) Net income (loss) attributable to Bunge common shareholders—diluted $ (0.21 ) $ 0.27 (1) Weighted-average common shares outstanding-diluted excludes approximately 7 million and 2 million outstanding stock options and contingently issuable restricted stock units, which were not dilutive and not included in the computation of earnings per share for the three months ended March 31, 2018 and 2017, respectively. (2) Weighted-average common shares outstanding-diluted excludes approximately 8 million and 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 computation of earnings per share for the three months ended March 31, 2018 and 2017, respectively. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION Bunge has five reportable segments - Agribusiness, Edible Oil Products, Milling Products, Sugar and Bioenergy, and Fertilizer, which are organized based upon similar economic characteristics and are similar in nature of products and services offered, the nature of production processes, and the type and class of customer and distribution methods. The Agribusiness segment is characterized by both inputs and outputs being agricultural commodities and thus high volume and low margin. The Edible Oil Products segment involves the processing, production and marketing of products derived from vegetable oils. The Milling Products segment involves the processing, production and marketing of products derived primarily from wheat and corn. The Sugar and Bioenergy segment involves sugarcane growing and milling in Brazil, sugar trading and merchandising in various countries, as well as sugarcane-based ethanol production and corn-based ethanol investments and related activities. Following the classification of the Brazilian fertilizer distribution and North American fertilizer businesses as discontinued operations, the activities of the Fertilizer segment include its port operations in Brazil and Argentina and its blending and retail operations in Argentina. The “Discontinued Operations & Unallocated” column in the following table contains the reconciliation between the totals for reportable segments and Bunge consolidated totals, which consist primarily of amounts attributable to discontinued operations, corporate items not allocated to the operating segments, and inter-segment eliminations. Transfers between the segments are generally valued at market. The segment revenues generated from these transfers are shown in the following table as “Inter-segment revenues”. Three Months Ended March 31, 2018 (US$ in millions) Agribusiness Edible Oil Products Milling Products Sugar and Bioenergy Fertilizer Discontinued Operations & Unallocated (1) Total Net sales to external customers $ 7,462 $ 2,149 $ 409 $ 563 $ 58 $ — $ 10,641 Inter–segment revenues 1,066 37 — 18 — (1,121 ) — Foreign exchange gains (losses) — (1 ) 2 1 (2 ) — — Noncontrolling interests (1) — (3 ) — 1 (1 ) 1 (2 ) Other income (expense) – net 24 (3 ) — 2 1 — 24 Segment EBIT (2) 42 28 17 (24 ) (2 ) — 61 Discontinued operations (3) — — — — — (2 ) (2 ) Depreciation, depletion and amortization (67 ) (32 ) (15 ) (26 ) (2 ) — (142 ) Total assets 14,531 4,346 1,608 2,124 297 178 23,084 Three Months Ended March 31, 2017 (US$ in millions) Agribusiness Edible Milling Sugar and Fertilizer Discontinued Operations & Unallocated (1) Total Net sales to external customers $ 7,819 $ 1,880 $ 382 $ 988 $ 52 $ — $ 11,121 Inter–segment revenues 1,012 38 5 — — (1,055 ) — Foreign exchange gains (losses) 49 3 — 5 (1 ) — 56 Noncontrolling interests (1) — (2 ) — — — 1 (1 ) Other income (expense) – net 3 (2 ) (2 ) (2 ) — — (3 ) Segment EBIT (2) 109 36 9 (17 ) (4 ) — 133 Discontinued operations (3) — — — — — (6 ) (6 ) Depreciation, depletion and amortization (61 ) (24 ) (15 ) (27 ) (3 ) — (130 ) Total assets 13,303 2,418 1,535 2,819 358 187 20,620 (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, total segment EBIT is a financial measure that is widely used by analysts and investors in Bunge’s industry. However, total segment EBIT is a non-GAAP financial measure and is not intended to replace net income (loss) attributable to Bunge, the most directly comparable U.S. GAAP financial measure. Further, total segment EBIT is not a measure of consolidated operating results under U.S.GAAP and should not be considered as an alternative to net income (loss) or any other measure of consolidated operating results under U.S. GAAP. See the reconciliation of total segment EBIT to net income (loss) in the table below. (3) Represents net income (loss) from discontinued operations. A reconciliation of total Segment EBIT to net income (loss) attributable to Bunge follows: Three Months Ended (US$ in millions) 2018 2017 Total Segment EBIT from continuing operations $ 61 $ 133 Interest income 8 12 Interest expense (70 ) (65 ) Income tax (expense) benefit (19 ) (28 ) Income (loss) from discontinued operations, net of tax (2 ) (6 ) Noncontrolling interests' share of interest and tax 1 1 Net income (loss) attributable to Bunge $ (21 ) $ 47 The following tables provides a disaggregation of net sales to external customers between sales from contracts with customers and revenue from other arrangements: Three Months Ended March 31, 2018 (US$ in millions) Agribusiness Edible Oil Products Milling Products Sugar and Bioenergy Fertilizer Total Sales from contracts with customers $ 324 $ 1,726 $ 397 $ 112 $ 58 $ 2,617 Revenue from other arrangements 7,138 423 12 451 — 8,024 Net sales to external customers 7,462 2,149 409 563 58 10,641 |
BASIS OF PRESENTATION AND PRI28
BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Principles of Consolidation | The condensed consolidated balance sheet at December 31, 2017 has been derived from Bunge’s audited consolidated financial statements at that date. Operating results for the three months ended March 31, 2018 are not necessarily indicative of the results to be expected for the year ending December 31, 2018 . The financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2017 , forming part of Bunge’s 2017 Annual Report on Form 10-K filed with the SEC on February 23, 2018 . |
New Accounting Pronouncements | New Accounting Pronouncements In February 2018, the Financial Accounting Standards Board ("FASB") issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This ASU allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act ("Tax Act"). Consequently, the ASU eliminates the stranded tax effects resulting from the Tax Act and will improve the usefulness of information reported to financial statement users. However, because this ASU only relates to the reclassification of the income tax effects of the Tax Act, the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not affected. ASU 2018-02 will be effective for Bunge starting January 1, 2019. Bunge is currently evaluating the impact of this ASU. Recently Adopted Accounting Pronouncements 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. During 2016, the FASB issued additional implementation guidance and practical expedients in ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , ASU 2016-10, Revenue from Contracts with Customers (Topic 606), Identifying Performance Obligations and Licensing , ASU 2016-12, Revenue from Contracts with Customers (Topic 606) : Narrow-Scope Improvements and Practical Expedients , and ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers , to improve the guidance. The Company adopted the standard on January 1, 2018 under the modified retrospective approach, applying it only to contracts open as of that date. The impact of adopting the standard has not resulted in a change in accounting treatment for any of the Company’s revenue streams, with the exception of ocean freight voyage charter services. Under ASC 605, the Company recognized revenue and the related cost of goods sold upon loading of the goods onto the vessel, which generally coincides with receipt of payment by the customer. Under ASC 606, the revenue and the related cost of goods sold will instead be recognized over time as the voyages occur and the related expenses are incurred, respectively. As a result of this change in timing, the adoption of the standard resulted in a cumulative-effect credit adjustment to opening retained earnings that was not material. Upon the adoption of ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10); Recognition and Measurement of Financial Assets and Financial Liabilities, the Company has made a cumulative effect adjustment to reclassify the unrealized gains/(losses) of equity investments classified as available for sale from accumulated other comprehensive income (loss) to opening retained earnings that was not material. Upon the adoption of ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force), the Company has changed its presentation of cash flows in relation to the Company’s trade receivables securitization program. Particularly impacted are the cash receipts from payments on the deferred purchase price, which are now classified as cash inflows from investing activities, whereas previously they were classified as inflows from operating activities. This ASU has been applied retrospectively and as a result, $556 million has been reclassified from cash provided by (used for) operating activities to cash provided by (used for) investing activities in the condensed consolidated statement of cash flows for the three months ended March 31, 2017. See Note 13 for additional information on our trade receivables securitization program. Upon the adoption of ASU 2016-18, Statement of Cash Flows (Topic 230), Restricted Cash (a consensus of the Emerging issues Task Force), the Company has changed the way it presents restricted cash in the statement of cash flows. Effective for 2018, and all prior periods presented, restricted cash is included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheet that sums to the total of the same such amounts shown in the condensed consolidated statement of cash flows. (US$ in millions) March 31, 2018 March 31, 2017 Cash and cash equivalents $ 287 $ 676 Restricted cash included in other current assets 5 4 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 292 $ 680 |
ACCOUNTING PRONOUNCEMENTS (Tabl
ACCOUNTING PRONOUNCEMENTS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Schedule of cash and cash equivalents | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheet that sums to the total of the same such amounts shown in the condensed consolidated statement of cash flows. (US$ in millions) March 31, 2018 March 31, 2017 Cash and cash equivalents $ 287 $ 676 Restricted cash included in other current assets 5 4 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 292 $ 680 |
Schedule of restricted cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheet that sums to the total of the same such amounts shown in the condensed consolidated statement of cash flows. (US$ in millions) March 31, 2018 March 31, 2017 Cash and cash equivalents $ 287 $ 676 Restricted cash included in other current assets 5 4 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 292 $ 680 |
GLOBAL COMPETITIVENESS PROGRAM
GLOBAL COMPETITIVENESS PROGRAM (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Schedule of global competitiveness program | The table below sets forth, by segment, the types of costs recorded for the Global Competitiveness Program during the three months ended March 31, 2018 . (US$ in millions) Severance and Other Employee Benefit Costs Other Program Costs Total Program Costs Agribusiness Segment $ 5 $ 6 $ 11 Edible Oils Segment 1 1 2 Milling Segment 1 1 2 Sugar and Bioenergy Segment — 1 1 Fertilizer Segment — — — Total $ 7 $ 9 $ 16 |
Schedule of restructuring reserve | The following table sets forth the activity affecting the liability for severance and other employee benefit costs related to the Global Competitiveness Program and other associated initiatives, which is recorded in "Other current liabilities" on the condensed consolidated balance sheet. (US$ in millions) Severance and Other Employee Benefit Costs Balance at January 1, 2018 $ 45 Charges incurred 8 Cash payments (30 ) Balance at March 31, 2018 $ 23 |
BUSINESS ACQUISITIONS (Tables)
BUSINESS ACQUISITIONS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Summary of the estimated fair values of the assets acquired and liabilities assumed | The following table summarizes the preliminary allocation of the fair values of the assets acquired and liabilities assumed at the acquisition date, as included in Bunge's condensed consolidated balance sheet. Bunge is in the process of finalizing third-party valuations of certain acquired assets and tax items, and therefore, the measurements below are subject to change: (US$ in millions) Cash and cash equivalents $ 82 Accounts receivable 146 Inventories 409 Other current assets 64 Property, plant and equipment 411 Intangible assets 463 Other noncurrent assets 113 Goodwill 263 Total assets 1,951 Accounts payable (109 ) Other current liabilities (97 ) Deferred income taxes (256 ) Noncurrent liabilities (35 ) Total liabilities (497 ) Redeemable noncontrolling interest (466 ) Net assets acquired $ 988 |
Summary of intangible assets acquired | The following table provides the details of intangible assets acquired, by major class and weighted average useful life: (US$ in millions) Useful life Customer relationships 15 years $ 265 Intellectual property 10 years 120 Trade names 15 years 51 Favorable leases 38 years 27 Total intangible assets $ 463 |
Summary of pro forma information | The amounts of revenue and earnings of Loders included in Bunge's condensed consolidated statement of income from the acquisition date to the period ended March 31, 2018 are as follows: (US$ in millions) Net sales $ 137 Income (loss) from continuing operations $ — The following represents the supplemental pro forma results of the combined entity as if Loders was acquired on January 1, 2017: Three months ended March 31, (US$ in millions) 2018 2017 Net sales $ 10,945 $ 11,541 Income from continuing operations $ (11 ) $ 44 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories by segment | Inventories by segment are presented below. Readily marketable inventories (“RMI”) are agricultural commodity inventories, such as soybeans, soybean meal, soybean oil, corn, and wheat carried at fair value because of their commodity characteristics, widely available markets, and international pricing mechanisms. All other inventories are carried at lower of cost or net realizable value. (US$ in millions) March 31, December 31, Agribusiness (1) $ 5,453 $ 4,022 Edible Oil Products (2) 885 458 Milling Products 213 196 Sugar and Bioenergy (3) 337 333 Fertilizer 64 65 Total $ 6,952 $ 5,074 (1) Includes RMI of $5,255 million and $3,865 million at March 31, 2018 and December 31, 2017 , respectively. Of these amounts, $4,043 million and $2,694 million can be attributable to merchandising activities at March 31, 2018 and December 31, 2017 , respectively. (2) Includes RMI of bulk soybean and canola oil in the aggregate amount of $97 million and $115 million at March 31, 2018 and December 31, 2017 , respectively. (3) Includes sugar RMI of $58 million and $76 million at March 31, 2018 and December 31, 2017 , respectively. Of these amounts, $52 million and $73 million can be attributable to merchandising activities at March 31, 2018 and December 31, 2017 , respectively. |
OTHER CURRENT ASSETS (Tables)
OTHER CURRENT ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of other current assets | Other current assets consist of the following: (US$ in millions) March 31, December 31, Unrealized gains on derivative contracts, at fair value $ 1,352 $ 910 Prepaid commodity purchase contracts (1) 395 282 Secured advances to suppliers, net (2) 403 412 Recoverable taxes, net 472 488 Margin deposits 450 258 Marketable securities, at fair value, and other short-term investments 632 213 Deferred purchase price receivable, at fair value (3) 108 107 Income taxes receivable 201 192 Prepaid expenses 174 125 Other 264 240 Total $ 4,451 $ 3,227 (1) Prepaid commodity purchase contracts represent advance payments against contracts for future delivery of specified quantities of agricultural commodities. (2) Bunge provides cash advances to suppliers, primarily Brazilian farmers of soybeans and sugarcane, to finance a portion of the suppliers’ production costs. Bunge does not bear any of the costs or operational risks associated with the related growing crops. The advances are largely collateralized by future crops and physical assets of the suppliers, carry a local market interest rate, and settle when the farmer’s crop is harvested and sold. The secured advances to farmers are reported net of allowances of $1 million at March 31, 2018 and $1 million at December 31, 2017 . Interest earned on secured advances to suppliers of $10 million and $16 million for the three months ended March 31, 2018 and 2017 , respectively, is included in net sales in the condensed consolidated statements of income. (3) Deferred purchase price receivable represents additional credit support for the investment conduits in Bunge’s accounts receivables sales program (see Note 13). |
Summary of marketable securities and other short-term investments | The following is a summary of amounts recorded in the condensed consolidated balance sheets for marketable securities and other short-term investments. (US$ in millions) March 31, December 31, Foreign government securities $ 536 $ 145 Corporate debt securities 70 59 Certificates of deposit/time deposits 26 — Other — 9 Total marketable securities and other short-term investments $ 632 $ 213 |
OTHER NON-CURRENT ASSETS (Table
OTHER NON-CURRENT ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Other Assets, Noncurrent [Abstract] | |
Schedule of other non-current assets | Other non-current assets consist of the following: (US$ in millions) March 31, December 31, Recoverable taxes, net (1) $ 192 $ 155 Judicial deposits (1) 139 140 Other long-term receivables 12 12 Income taxes receivable (1) 296 307 Long-term investments 84 66 Affiliate loans receivable 24 24 Long-term receivables from farmers in Brazil, net (1) 133 131 Other 199 193 Total $ 1,079 $ 1,028 (1) These non-current assets arise primarily from Bunge’s Brazilian operations and their realization could take several years. |
Summary of gross investment in long-term receivables and the related allowance amounts from Brazilian farmers | The table below summarizes Bunge’s recorded investment in long-term receivables from farmers in Brazil and the related allowance amounts. March 31, 2018 December 31, 2017 (US$ in millions) Recorded Investment Allowance Recorded Investment Allowance For which an allowance has been provided: Legal collection process (1) $ 108 $ 96 $ 98 $ 91 Renegotiated amounts (2) 22 20 25 22 For which no allowance has been provided: Legal collection process (1) 75 — 76 — Renegotiated amounts (2) 17 — 17 — Other long-term receivables 27 — 28 — Total $ 249 $ 116 $ 244 $ 113 (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 the activity in the allowance for doubtful accounts related to long-term receivables from Brazilian farmers | The table below summarizes the activity in the allowance for doubtful accounts related to long-term receivables from farmers in Brazil. Three Months Ended (US$ in millions) 2018 2017 Beginning balance $ 113 $ 109 Bad debt provisions 4 19 Recoveries (1 ) (12 ) Write-offs — (1 ) Foreign exchange translation — (2 ) Ending balance $ 116 $ 113 |
OTHER CURRENT LIABILITIES (Tabl
OTHER CURRENT LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of other current liabilities | Other current liabilities consist of the following: (US$ in millions) March 31, December 31, Unrealized losses on derivative contracts, at fair value $ 1,773 $ 897 Accrued liabilities 602 606 Advances on sales 310 406 Other 331 277 Total $ 3,016 $ 2,186 |
FINANCIAL INSTRUMENTS AND FAI36
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Financial Instruments And Fair Value Measurements [Abstract] | |
Schedule of assets and liabilities accounted for at fair value on a recurring basis | 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 March 31, 2018 December 31, 2017 (US$ in millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Readily marketable inventories (Note 6) $ — $ 4,550 $ 860 $ 5,410 $ — $ 3,691 $ 365 $ 4,056 Trade accounts receivable (1) — 1 — 1 — 5 — 5 Unrealized gain on designated derivative contracts (2) : Interest rate — 1 — 1 — — — — Foreign exchange — 34 — 34 — 18 — 18 Unrealized gain on undesignated derivative contracts (2): Interest rate — 6 — 6 — 4 — 4 Foreign exchange 4 464 — 468 — 321 — 321 Commodities 146 634 26 806 115 389 19 523 Freight 19 — 11 30 18 — 8 26 Energy 10 — — 10 18 — — 18 Deferred purchase price receivable (Note 13 ) — 108 — 108 — 107 — 107 Other (3) 30 644 — 674 15 234 — 249 Total assets $ 209 $ 6,442 $ 897 $ 7,548 $ 166 $ 4,769 $ 392 $ 5,327 Liabilities: Trade accounts payable (1) $ — $ 402 $ 317 $ 719 $ — $ 467 $ 116 $ 583 Unrealized loss on designated derivative contracts (4): Interest rate — 55 — 55 — 31 — 31 Foreign exchange — 1 — 1 — 2 — 2 Unrealized loss on undesignated derivative contracts (4): Interest rate — 1 — 1 — 1 — 1 Foreign exchange 2 580 — 582 1 430 — 431 Commodities 199 925 22 1,146 141 271 20 432 Freight 25 — 9 34 15 — 3 18 Energy 8 1 1 10 9 2 2 13 Total liabilities $ 234 $ 1,965 $ 349 $ 2,548 $ 166 $ 1,204 $ 141 $ 1,511 (1) 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 $3 million and $0 million included in other non-current assets at March 31, 2018 and December 31, 2017 , 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 $55 million and $31 million included in other non-current liabilities at March 31, 2018 and December 31, 2017 , respectively. |
Reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | The tables below present reconciliations for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three months ended March 31, 2018 and 2017 . These instruments were valued using pricing models that management believes reflect the assumptions that would be used by a marketplace participant. Three Months Ended March 31, 2018 (US$ in millions) Derivatives, Net Readily Marketable Inventories Trade Accounts Receivable/ Payable, Net Total Balance, January 1, 2018 $ 2 $ 365 $ (116 ) $ 251 Total gains and (losses), realized/unrealized included in cost of goods sold (3 ) 63 10 70 Purchases 9 613 (248 ) 374 Sales — (279 ) — (279 ) Issuances (9 ) — — (9 ) Settlements 8 — 40 48 Transfers into Level 3 (2 ) 124 (3 ) 119 Transfers out of Level 3 — (26 ) — (26 ) Balance, March 31, 2018 $ 5 $ 860 $ (317 ) $ 548 1) Derivatives, net, readily marketable inventories, and trade accounts receivable/payable net, include gains/(losses) of $(12) million , $(3) million and $0 million , respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at March 31, 2018 . Three Months Ended March 31, 2017 (US$ in millions) Derivatives, Net Readily Marketable Inventories Trade Accounts Receivable/ Payable, Net Total Balance, January 1, 2017 $ (51 ) $ 237 $ (44 ) $ 142 Total gains and (losses), realized/unrealized included in cost of goods sold (59 ) (14 ) 7 (66 ) Purchases 4 764 (331 ) 437 Sales — (372 ) — (372 ) Issuances (2 ) — — (2 ) Settlements 17 — — 17 Transfers into Level 3 (4 ) 184 (3 ) 177 Transfers out of Level 3 23 (56 ) (1 ) (34 ) Balance, March 31, 2017 $ (72 ) $ 743 $ (372 ) $ 299 1) Derivatives, net, readily marketable inventories, and trade accounts receivable/payable net, includes gains/(losses) of $(54) million , $(13) million and $2 million , respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at March 31, 2017 . |
Summary of outstanding derivative instruments | The table below summarizes the volume of economic derivatives as of March 31, 2018 and 2017 . For those contracts traded bilaterally through the over-the-counter markets (forwards and swaps), the gross position is provided. For exchange traded (futures, FRAs, FFAs and options) and cleared positions (energy swaps), the net position is provided. March 31, 2018 2017 Unit of Measure (US$ in millions) Long (Short) Long (Short) Interest rate Swaps $ 251 $ (1,967 ) $ 1,476 $ (2,048 ) $ Notional Futures $ — $ (2 ) $ — $ — $ Notional FRAs $ 338 $ (423 ) $ 825 $ — $ Notional Currency Forwards $ 12,351 $ (11,948 ) $ 8,341 $ (9,515 ) $ Notional Swaps $ 124 $ (360 ) $ 389 $ (265 ) $ Notional Futures $ — $ (59 ) $ — $ (90 ) $ Notional Options $ 868 $ (761 ) $ 157 $ (230 ) Delta Agricultural commodities Forwards 34,369,156 (33,458,373 ) 26,296,335 (35,909,050 ) Metric Tons Swaps 689,796 (10,663,868 ) 1,768,321 (6,932,933 ) Metric Tons Futures 5,707,101 — 768,446 — Metric Tons Options 505,421 — — (968,475 ) Metric Tons Ocean freight FFA — (7,469 ) 1,264 — Hire Days FFA options 719 — — (985 ) Hire Days Natural gas Swaps 3,852,305 — 1,236,469 — MMBtus Futures 1,553,303 — 5,167,500 — MMBtus Energy - other Forwards 5,535,248 — 6,255,869 — Metric Tons Futures 35,743 — — (4,454 ) Metric Tons Options — — — (403 ) Metric Tons Swaps 221,500 — 271,900 — Metric Tons The table below provides information about the balance sheet values of hedged items and the notional amount of derivatives used in hedging strategies. (US$ in millions) March 31, 2018 December 31, 2017 Hedging instrument type: Fair value hedges of interest rate risk Carrying value of hedged debt $ 2,272 $ 2,071 Cumulative adjustment to long-term debt from application of hedge accounting $ (54 ) $ (31 ) Interest rate swap - notional amount $ 2,336 $ 2,109 Fair value hedges of currency risk Carrying value of hedged debt $ 324 $ — Cumulative adjustment to long-term debt from application of hedge accounting $ — $ — Cross currency swap - notional amount $ 322 $ — Cash flow hedges of currency risk Foreign currency forward - notional amount $ 155 $ 237 Net investment hedges Foreign currency forward - notional amount $ 340 $ 1,000 Carrying value of non-derivative hedging instrument $ 982 $ 725 |
Summary of effect of derivative instruments designated as fair value hedges and undesignated derivative instruments on condensed consolidated statements of income | The table below summarizes the net effect of derivative instruments on the condensed consolidated statements of income for the three months ended March 31, 2018 and 2017 . Gain (Loss) Recognized in Income on Derivative Instruments Three Months Ended March 31, (US$ in millions) 2018 2017 Income statement classification Type of derivative Cost of goods sold Economic hedges Foreign currency $ (35 ) $ 92 Commodities (260 ) 270 Freight (5 ) (8 ) Energy (2 ) (10 ) Total Cost of goods sold $ (302 ) $ 344 Interest expense Hedge accounting Interest rate $ 2 $ 5 Foreign currency gains (losses) Hedge accounting Foreign currency $ 3 $ — Economic hedges Foreign currency (3 ) 77 Total Foreign currency gains (losses) $ — $ 77 Other comprehensive income (loss) Gains and losses on derivatives used as cash flow hedges of foreign currency risk included in other comprehensive income (loss) during the period $ 2 $ 5 Gains and losses on derivatives used as net investment hedges included in other comprehensive income (loss) during the period $ 19 $ — Foreign currency gains and losses on intercompany loans used as net investment hedges included in other comprehensive income (loss) during the period $ (17 ) $ (12 ) Gains and losses on derivatives used as fair value hedges of foreign currency risk included in other comprehensive income (loss) during the period (1 ) — Amounts released from accumulated other comprehensive income (loss) during the period Cash flow hedge of foreign currency risk 3 2 |
Summary of effect of financial instruments designated as cash flow and net investment hedges | The table below summarizes the net effect of derivative instruments on the condensed consolidated statements of income for the three months ended March 31, 2018 and 2017 . Gain (Loss) Recognized in Income on Derivative Instruments Three Months Ended March 31, (US$ in millions) 2018 2017 Income statement classification Type of derivative Cost of goods sold Economic hedges Foreign currency $ (35 ) $ 92 Commodities (260 ) 270 Freight (5 ) (8 ) Energy (2 ) (10 ) Total Cost of goods sold $ (302 ) $ 344 Interest expense Hedge accounting Interest rate $ 2 $ 5 Foreign currency gains (losses) Hedge accounting Foreign currency $ 3 $ — Economic hedges Foreign currency (3 ) 77 Total Foreign currency gains (losses) $ — $ 77 Other comprehensive income (loss) Gains and losses on derivatives used as cash flow hedges of foreign currency risk included in other comprehensive income (loss) during the period $ 2 $ 5 Gains and losses on derivatives used as net investment hedges included in other comprehensive income (loss) during the period $ 19 $ — Foreign currency gains and losses on intercompany loans used as net investment hedges included in other comprehensive income (loss) during the period $ (17 ) $ (12 ) Gains and losses on derivatives used as fair value hedges of foreign currency risk included in other comprehensive income (loss) during the period (1 ) — Amounts released from accumulated other comprehensive income (loss) during the period Cash flow hedge of foreign currency risk 3 2 |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of carrying amounts and fair values of long-term debt | The carrying amounts and fair value of long-term debt are as follows: March 31, 2018 December 31, 2017 (US$ in millions) Carrying Value Fair Value (Level 2) Carrying Fair Value Long-term debt, including current portion $ 5,460 $ 5,567 $ 4,175 $ 4,337 |
TRADE RECEIVABLES SECURITIZAT38
TRADE RECEIVABLES SECURITIZATION PROGRAM (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Transfers and Servicing [Abstract] | |
Assets that Continue to be Recognized, Transferred Financial Assets and Other Financial Assets Managed Together | (US$ in millions) March 31, December 31, Receivables sold which were derecognized from Bunge's balance sheet $ 769 $ 810 Deferred purchase price included in other current assets $ 108 $ 107 The table below summarizes the cash flows and discounts of Bunge’s trade receivables associated with the Program. Servicing fees under the Program were not significant in any period. Three Months Ended (US$ in millions) 2018 2017 Gross receivables sold $ 2,322 $ 2,259 Proceeds received in cash related to transfer of receivables $ 2,311 $ 2,252 Cash collections from customers on receivables previously sold $ 2,462 $ 2,347 Discounts related to gross receivables sold included in SG&A $ 3 $ 2 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Liabilities related to general claims and lawsuits included in other non-current liabilities | Included in other non-current liabilities at March 31, 2018 and December 31, 2017 are the following amounts related to these matters: (US$ in millions) March 31, December 31, Non-income tax claims $ 159 $ 161 Labor claims 89 92 Civil and other claims 104 103 Total $ 352 $ 356 |
Summary of tax examinations against Brazilian subsidiaries | As of March 31, 2018 , the Brazilian federal and state authorities have concluded examinations of the ICMS and PIS COFINS tax returns and have issued the outstanding claims as of: (US$ in millions) Years Examined March 31, 2018 December 31, 2017 ICMS 1990 to Present $ 275 $ 281 PIS/COFINS 2004 through 2012 $ 199 $ 200 |
Maximum potential future payments related to guarantees | Bunge has issued or was a party to the following guarantees at March 31, 2018 : (US$ in millions) Maximum Potential Future Payments Unconsolidated affiliates financing (1) (2) $ 210 Residual value guarantee (3) 269 Total $ 479 (1) Bunge issued guarantees to certain financial institutions related to debt of certain of its unconsolidated affiliates. The terms of the guarantees are equal to the terms of the related financings which have maturity dates in 2018 through 2034 . There are no recourse provisions or collateral that would enable Bunge to recover any amounts paid under these guarantees. At March 31, 2018 , Bunge recorded no obligation related to these guarantees. (2) Bunge issued guarantees to certain third parties related to performance of its unconsolidated affiliates. The terms of the guarantees are equal to the completion date of a port terminal which is expected to be completed in 2020 . There are no recourse provisions or collateral that would enable Bunge to recover any amounts paid under these guarantees. At March 31, 2018 , Bunge recorded no obligation related to these guarantees. (3) Bunge issued guarantees to certain financial institutions which are party to certain operating lease arrangements for railcars and barges. These guarantees provide for a minimum residual value to be received by the lessor at conclusion of the lease term. These leases expire at various dates from 2019 through 2024 . At March 31, 2018 , Bunge’s recorded obligation related to these guarantees was $2 million . |
EQUITY (Tables)
EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of after-tax components of accumulated other comprehensive income (loss) attributable to Bunge | The following table summarizes the balances of related after-tax components of accumulated other comprehensive income (loss) attributable to Bunge. (US$ in millions) Foreign Exchange Translation Adjustment Deferred Gains (Losses) on Hedging Activities Pension and Other Postretirement Liability Adjustments Unrealized Gains (Losses) on Investments Accumulated Other Comprehensive Income (Loss) Balance, January 1, 2018 $ (5,547 ) $ (244 ) $ (140 ) $ 1 $ (5,930 ) Other comprehensive income (loss) before reclassifications (15 ) 3 (1 ) — (13 ) Amount reclassified from accumulated other comprehensive income — (3 ) — (1 ) (4 ) Balance, March 31, 2018 $ (5,562 ) $ (244 ) $ (141 ) $ — $ (5,947 ) (US$ in millions) Foreign Exchange Deferred Pension and Other Unrealized Accumulated Balance, January 1, 2017 $ (5,734 ) $ (102 ) $ (145 ) $ 3 $ (5,978 ) Other comprehensive income (loss) before reclassifications 261 (7 ) — — 254 Amount reclassified from accumulated other comprehensive income — (2 ) — — (2 ) Balance, March 31, 2017 $ (5,473 ) $ (111 ) $ (145 ) $ 3 $ (5,726 ) |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Computation of basic and diluted earnings per common share | The following table sets forth the computation of basic and diluted earnings per common share. Three Months Ended (US$ in millions, except for share data) 2018 2017 Income (loss) from continuing operations $ (17 ) $ 54 Net (income) loss attributable to noncontrolling interests (2 ) (1 ) Income (loss) from continuing operations attributable to Bunge (19 ) 53 Convertible preference share dividends (8 ) (8 ) Income (loss) from discontinued operations, net of tax (2 ) (6 ) Net income (loss) available to Bunge common shareholders $ (29 ) $ 39 Weighted-average number of common shares outstanding: Basic 140,736,907 139,752,305 Effect of dilutive shares: —stock options and awards (1) — 1,144,851 —convertible preference shares (2) — — Diluted 140,736,907 140,897,156 Basic earnings per common share: Net income (loss) from continuing operations $ (0.20 ) $ 0.31 Net income (loss) from discontinued operations (0.01 ) (0.04 ) Net income (loss) attributable to Bunge common shareholders—basic $ (0.21 ) $ 0.27 Diluted earnings per common share: Net income (loss) from continuing operations $ (0.20 ) $ 0.31 Net income (loss) from discontinued operations (0.01 ) (0.04 ) Net income (loss) attributable to Bunge common shareholders—diluted $ (0.21 ) $ 0.27 (1) Weighted-average common shares outstanding-diluted excludes approximately 7 million and 2 million outstanding stock options and contingently issuable restricted stock units, which were not dilutive and not included in the computation of earnings per share for the three months ended March 31, 2018 and 2017, respectively. (2) Weighted-average common shares outstanding-diluted excludes approximately 8 million and 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 computation of earnings per share for the three months ended March 31, 2018 and 2017, respectively. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Operating Segment Information | The segment revenues generated from these transfers are shown in the following table as “Inter-segment revenues”. Three Months Ended March 31, 2018 (US$ in millions) Agribusiness Edible Oil Products Milling Products Sugar and Bioenergy Fertilizer Discontinued Operations & Unallocated (1) Total Net sales to external customers $ 7,462 $ 2,149 $ 409 $ 563 $ 58 $ — $ 10,641 Inter–segment revenues 1,066 37 — 18 — (1,121 ) — Foreign exchange gains (losses) — (1 ) 2 1 (2 ) — — Noncontrolling interests (1) — (3 ) — 1 (1 ) 1 (2 ) Other income (expense) – net 24 (3 ) — 2 1 — 24 Segment EBIT (2) 42 28 17 (24 ) (2 ) — 61 Discontinued operations (3) — — — — — (2 ) (2 ) Depreciation, depletion and amortization (67 ) (32 ) (15 ) (26 ) (2 ) — (142 ) Total assets 14,531 4,346 1,608 2,124 297 178 23,084 Three Months Ended March 31, 2017 (US$ in millions) Agribusiness Edible Milling Sugar and Fertilizer Discontinued Operations & Unallocated (1) Total Net sales to external customers $ 7,819 $ 1,880 $ 382 $ 988 $ 52 $ — $ 11,121 Inter–segment revenues 1,012 38 5 — — (1,055 ) — Foreign exchange gains (losses) 49 3 — 5 (1 ) — 56 Noncontrolling interests (1) — (2 ) — — — 1 (1 ) Other income (expense) – net 3 (2 ) (2 ) (2 ) — — (3 ) Segment EBIT (2) 109 36 9 (17 ) (4 ) — 133 Discontinued operations (3) — — — — — (6 ) (6 ) Depreciation, depletion and amortization (61 ) (24 ) (15 ) (27 ) (3 ) — (130 ) Total assets 13,303 2,418 1,535 2,819 358 187 20,620 (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, total segment EBIT is a financial measure that is widely used by analysts and investors in Bunge’s industry. However, total segment EBIT is a non-GAAP financial measure and is not intended to replace net income (loss) attributable to Bunge, the most directly comparable U.S. GAAP financial measure. Further, total segment EBIT is not a measure of consolidated operating results under U.S.GAAP and should not be considered as an alternative to net income (loss) or any other measure of consolidated operating results under U.S. GAAP. See the reconciliation of total segment EBIT to net income (loss) in the table below. (3) Represents net income (loss) from discontinued operations. |
Reconciliation of Total Segment EBIT to net income attributable to Bunge | A reconciliation of total Segment EBIT to net income (loss) attributable to Bunge follows: Three Months Ended (US$ in millions) 2018 2017 Total Segment EBIT from continuing operations $ 61 $ 133 Interest income 8 12 Interest expense (70 ) (65 ) Income tax (expense) benefit (19 ) (28 ) Income (loss) from discontinued operations, net of tax (2 ) (6 ) Noncontrolling interests' share of interest and tax 1 1 Net income (loss) attributable to Bunge $ (21 ) $ 47 |
Net sales by product group to external customers | The following tables provides a disaggregation of net sales to external customers between sales from contracts with customers and revenue from other arrangements: Three Months Ended March 31, 2018 (US$ in millions) Agribusiness Edible Oil Products Milling Products Sugar and Bioenergy Fertilizer Total Sales from contracts with customers $ 324 $ 1,726 $ 397 $ 112 $ 58 $ 2,617 Revenue from other arrangements 7,138 423 12 451 — 8,024 Net sales to external customers 7,462 2,149 409 563 58 10,641 |
ACCOUNTING PRONOUNCEMENTS (Deta
ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Amount reclassified from cash provided by (used for) operating activities | $ 1,542 | $ 603 |
Amount reclassified to cash provided by (used for) investing activities | $ (938) | (51) |
Accounting Standards Update 2016-15 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Amount reclassified from cash provided by (used for) operating activities | (556) | |
Amount reclassified to cash provided by (used for) investing activities | $ 556 |
ACCOUNTING PRONOUNCEMENTS - REC
ACCOUNTING PRONOUNCEMENTS - RECONCILIATION OF CASH, CASH EQUIVALENTS, AND RESTRICTED CASH (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ||||
Cash and cash equivalents | $ 287 | $ 601 | $ 676 | |
Restricted cash included in other current assets | 5 | 4 | ||
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows | $ 292 | $ 605 | $ 680 | $ 938 |
GLOBAL COMPETITIVENESS PROGRA45
GLOBAL COMPETITIVENESS PROGRAM - RESTRUCTURING COSTS (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($)region | |
Restructuring Cost and Reserve [Line Items] | |
Number of regions after organizational structure simplification | region | 3 |
Global Competitiveness Program | |
Restructuring Cost and Reserve [Line Items] | |
Impact on future earnings | $ 250 |
Severance and Other Employee Benefit Costs | 7 |
Other Program Costs | 9 |
Total Program Costs | 16 |
Global Competitiveness Program | Cost of goods sold | |
Restructuring Cost and Reserve [Line Items] | |
Total Program Costs | 3 |
Global Competitiveness Program | Selling, general and administrative expenses | |
Restructuring Cost and Reserve [Line Items] | |
Total Program Costs | 14 |
Global Competitiveness Program | Agribusiness Segment | |
Restructuring Cost and Reserve [Line Items] | |
Severance and Other Employee Benefit Costs | 5 |
Other Program Costs | 6 |
Total Program Costs | 11 |
Global Competitiveness Program | Edible Oil Products | |
Restructuring Cost and Reserve [Line Items] | |
Severance and Other Employee Benefit Costs | 1 |
Other Program Costs | 1 |
Total Program Costs | 2 |
Global Competitiveness Program | Milling Products | |
Restructuring Cost and Reserve [Line Items] | |
Severance and Other Employee Benefit Costs | 1 |
Other Program Costs | 1 |
Total Program Costs | 2 |
Global Competitiveness Program | Sugar and Bioenergy Segment | |
Restructuring Cost and Reserve [Line Items] | |
Severance and Other Employee Benefit Costs | 0 |
Other Program Costs | 1 |
Total Program Costs | 1 |
Global Competitiveness Program | Fertilizer | |
Restructuring Cost and Reserve [Line Items] | |
Severance and Other Employee Benefit Costs | 0 |
Other Program Costs | 0 |
Total Program Costs | 0 |
Other Industrial Initiatives | |
Restructuring Cost and Reserve [Line Items] | |
Severance and Other Employee Benefit Costs | $ 1 |
GLOBAL COMPETITIVENESS PROGRA46
GLOBAL COMPETITIVENESS PROGRAM - RESTRUCTURING RESERVE (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Restructuring Reserve [Roll Forward] | |
Gain recognized on sale or disposal of long-lived assets | $ 1 |
Global Competitiveness Program | |
Restructuring Reserve [Roll Forward] | |
Charges incurred | 16 |
Global Competitiveness Program | Employee Severance | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 45 |
Charges incurred | 8 |
Cash payments | (30) |
Ending balance | $ 23 |
BUSINESS ACQUISITIONS - LODERS
BUSINESS ACQUISITIONS - LODERS ACQUISITION (Details) $ in Millions | Mar. 01, 2018USD ($) | Mar. 31, 2018USD ($)country | Dec. 31, 2017USD ($) |
Business Acquisition [Line Items] | |||
Goodwill | $ 800 | $ 515 | |
Loders | |||
Business Acquisition [Line Items] | |||
Interest acquired (as a percent) | 70.00% | ||
Purchase price in cash | $ 988 | ||
Number of countries where customers are located (more than 100) | country | 100 | ||
Goodwill | 263 | ||
Goodwill expected to be tax deductible | $ 0 | ||
Ownership interest by minority shareholder | 30.00% | ||
Fair value of noncontrolling interest | $ 466 | ||
Loders | Edible Oil Products | |||
Business Acquisition [Line Items] | |||
Goodwill | $ 263 |
BUSINESS ACQUISITIONS - ASSETS
BUSINESS ACQUISITIONS - ASSETS ACQUIRED AND LIABILITIES ASSUMED (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 01, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||
Goodwill | $ 800 | $ 515 | |
Loders | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 82 | ||
Accounts receivable | 146 | ||
Inventories | 409 | ||
Other current assets | 64 | ||
Property, plant and equipment | 411 | ||
Intangible assets | 463 | ||
Other noncurrent assets | 113 | ||
Goodwill | 263 | ||
Total assets | 1,951 | ||
Accounts payable | (109) | ||
Other current liabilities | (97) | ||
Deferred income taxes | (256) | ||
Noncurrent liabilities | (35) | ||
Total liabilities | (497) | ||
Redeemable noncontrolling interest | (466) | ||
Net assets acquired | $ 988 |
BUSINESS ACQUISITIONS - INTANGI
BUSINESS ACQUISITIONS - INTANGIBLE ASSETS ACQUIRED (Details) - Loders $ in Millions | Mar. 01, 2018USD ($) |
Business Acquisition [Line Items] | |
Intangible assets | $ 463 |
Customer relationships | |
Business Acquisition [Line Items] | |
Useful life | 15 years |
Intangible assets | $ 265 |
Intellectual property | |
Business Acquisition [Line Items] | |
Useful life | 10 years |
Intangible assets | $ 120 |
Trade names | |
Business Acquisition [Line Items] | |
Useful life | 15 years |
Intangible assets | $ 51 |
Favorable leases | |
Business Acquisition [Line Items] | |
Useful life | 38 years |
Intangible assets | $ 27 |
BUSINESS ACQUISITIONS - PRO FOR
BUSINESS ACQUISITIONS - PRO FORMA INFORMATION (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Increase (decrease) to income from continuing operations | $ (19) | $ 48 |
Loders | ||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Net sales since acquisition date | 137 | |
Income (loss) from continuing operations since acquisition date | 0 | |
Net sales | 10,945 | 11,541 |
Income from continuing operations | (11) | 44 |
Loders | Acquisition-related costs | ||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Increase (decrease) to income from continuing operations | 5 | $ (5) |
Loders | Senior Notes | ||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Notes issued in connection with the acquisition | $ 1,000 |
BUSINESS ACQUISITIONS - OTHER A
BUSINESS ACQUISITIONS - OTHER ACQUISITIONS (Details) $ in Millions | Jan. 30, 2018USD ($)facility | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Business Acquisition [Line Items] | |||
Goodwill | $ 800 | $ 515 | |
Minsa Corporation | |||
Business Acquisition [Line Items] | |||
Purchase price | $ 75 | ||
Number of corn mills | facility | 2 | ||
Working capital | $ 7 | ||
Property, plant and equipment | 38 | ||
Finite-lived intangibles assets | 20 | ||
Goodwill | $ 10 |
TRADE STRUCTURED FINANCE PROG52
TRADE STRUCTURED FINANCE PROGRAM (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Trade structured finance program | |||
Net return from activities including fair value changes | $ 8 | $ 11 | |
Weighted-average interest rate of time deposits (as a percent) | 3.01% | 2.98% | |
Total net proceeds from issuances of LCs | $ 1,488 | $ 1,604 | |
Receivables and Trade Payables | |||
Trade structured finance program | |||
Face value of time deposits and LCs | 300 | $ 1,196 | |
Time deposits and LC's presented net in the balance sheet | |||
Trade structured finance program | |||
Face value of time deposits and LCs | $ 6,347 | $ 6,321 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
INVENTORIES | ||
Inventories | $ 6,952 | $ 5,074 |
Agribusiness | ||
INVENTORIES | ||
Inventories | 5,453 | 4,022 |
Readily marketable inventories at fair value | 5,255 | 3,865 |
Agribusiness | Merchandising Activities | ||
INVENTORIES | ||
Readily marketable inventories at fair value | 4,043 | 2,694 |
Edible Oil Products | ||
INVENTORIES | ||
Inventories | 885 | 458 |
Readily marketable inventories at fair value | 97 | 115 |
Milling Products | ||
INVENTORIES | ||
Inventories | 213 | 196 |
Sugar and Bioenergy | ||
INVENTORIES | ||
Inventories | 337 | 333 |
Readily marketable inventories at fair value | 58 | 76 |
Sugar and Bioenergy | Merchandising Activities | ||
INVENTORIES | ||
Readily marketable inventories at fair value | 52 | 73 |
Fertilizer | ||
INVENTORIES | ||
Inventories | $ 64 | $ 65 |
OTHER CURRENT ASSETS - SUMMARY
OTHER CURRENT ASSETS - SUMMARY OF OTHER CURRENT ASSETS (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Other Current Assets: | |||
Unrealized gains on derivative contracts, at fair value | $ 1,352 | $ 910 | |
Prepaid commodity purchase contracts | 395 | 282 | |
Secured advances to suppliers, net | 403 | 412 | |
Recoverable taxes, net | 472 | 488 | |
Margin deposits | 450 | 258 | |
Marketable securities, at fair value, and other short-term investments | 632 | 213 | |
Deferred purchase price receivable, at fair value | 108 | 107 | |
Income taxes receivable | 201 | 192 | |
Prepaid expenses | 174 | 125 | |
Other | 264 | 240 | |
Total | 4,451 | 3,227 | |
Allowance on secured advance to farmers | 1 | $ 1 | |
Interest earned on secured advances to suppliers | $ 10 | $ 16 |
OTHER CURRENT ASSETS - MARKETAB
OTHER CURRENT ASSETS - MARKETABLE SECURITIES AND OTHER SHORT-TERM INVESTMENTS (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Marketable Securities and Other Short-Term Investments | ||
Marketable securities and other short-term investments | $ 632 | $ 213 |
Marketable securities at fair value | 603 | |
Other short-term investments | 29 | 1 |
Available for sale securities | 3 | |
Trading | 209 | |
Foreign government securities | ||
Marketable Securities and Other Short-Term Investments | ||
Marketable securities and other short-term investments | 536 | 145 |
Corporate debt securities | ||
Marketable Securities and Other Short-Term Investments | ||
Marketable securities and other short-term investments | 70 | 59 |
Certificates of deposit/time deposits | ||
Marketable Securities and Other Short-Term Investments | ||
Marketable securities and other short-term investments | 26 | 0 |
Other | ||
Marketable Securities and Other Short-Term Investments | ||
Marketable securities and other short-term investments | $ 0 | $ 9 |
OTHER NON-CURRENT ASSETS - COMP
OTHER NON-CURRENT ASSETS - COMPOSITION (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Other Assets, Noncurrent [Abstract] | ||
Recoverable taxes, net | $ 192 | $ 155 |
Judicial deposits | 139 | 140 |
Other long-term receivables | 12 | 12 |
Income taxes receivable | 296 | 307 |
Long-term investments | 84 | 66 |
Affiliate loans receivable | 24 | 24 |
Long-term receivables from farmers in Brazil, net | 133 | 131 |
Other | 199 | 193 |
Total | 1,079 | 1,028 |
Allowance for recoverable taxes | $ 31 | $ 28 |
Minimum initial maturity of affiliate loans receivable | 1 year |
OTHER NON-CURRENT ASSETS - RECE
OTHER NON-CURRENT ASSETS - RECEIVABLES FROM FARMERS IN BRAZIL AND ALLOWANCE AMOUNTS (Details) - Long-term receivables - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Recorded Investment | ||||
Average recorded investment in long-term receivables | $ 252 | $ 253 | ||
Total | 249 | 244 | ||
Allowance | 116 | 113 | $ 113 | $ 109 |
Legal collection process | ||||
Recorded Investment | ||||
Recorded investment for which an allowance has been provided | 108 | 98 | ||
Recorded investment for which no allowance has been provided | 75 | 76 | ||
Allowance | 96 | 91 | ||
Renegotiated amounts | ||||
Recorded Investment | ||||
Recorded investment for which an allowance has been provided | 22 | 25 | ||
Recorded investment for which no allowance has been provided | 17 | 17 | ||
Allowance | 20 | 22 | ||
Other long-term receivables | ||||
Recorded Investment | ||||
Other long-term receivables | $ 27 | $ 28 |
OTHER NON-CURRENT ASSETS - ALLO
OTHER NON-CURRENT ASSETS - ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) - Long-term receivables - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Allowance for Doubtful Accounts Related to Long Term Receivables | ||
Beginning balance | $ 113 | $ 109 |
Bad debt provisions | 4 | 19 |
Recoveries | (1) | (12) |
Write-offs | 0 | (1) |
Foreign exchange translation | 0 | (2) |
Ending balance | $ 116 | $ 113 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense | $ 19 | $ 28 | |
Tax Act - provisional income tax expense | $ 60 |
OTHER CURRENT LIABILITIES (Deta
OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Other Liabilities Disclosure [Abstract] | ||
Unrealized losses on derivative contracts, at fair value | $ 1,773 | $ 897 |
Accrued liabilities | 602 | 606 |
Advances on sales | 310 | 406 |
Other | 331 | 277 |
Total | $ 3,016 | $ 2,186 |
FINANCIAL INSTRUMENTS AND FAI61
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - ASSETS AND LIABILITIES AT FAIR VALUE (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Assets: | ||
Unrealized gain | $ 1,352 | $ 910 |
Deferred purchase price receivable | 108 | 107 |
Liabilities: | ||
Trade accounts payable | 719 | 583 |
Unrealized loss | 1,773 | 897 |
Other Noncurrent Assets | ||
Liabilities: | ||
Unrealized gains (losses) on derivative contracts | 3 | 0 |
Other Noncurrent Liabilities | ||
Liabilities: | ||
Unrealized gains (losses) on derivative contracts | (55) | (31) |
Assets and liabilities measured at fair value on a recurring basis | ||
Assets: | ||
Readily marketable inventories | 5,410 | 4,056 |
Trade accounts receivable | 1 | 5 |
Total assets | 7,548 | 5,327 |
Liabilities: | ||
Trade accounts payable | 719 | 583 |
Total liabilities | 2,548 | 1,511 |
Assets and liabilities measured at fair value on a recurring basis | Hedge accounting | Interest rate | ||
Assets: | ||
Unrealized gain | 1 | 0 |
Liabilities: | ||
Unrealized loss | 55 | 31 |
Assets and liabilities measured at fair value on a recurring basis | Hedge accounting | Foreign exchange | ||
Assets: | ||
Unrealized gain | 34 | 18 |
Liabilities: | ||
Unrealized loss | 1 | 2 |
Assets and liabilities measured at fair value on a recurring basis | Economic hedges | ||
Assets: | ||
Deferred purchase price receivable | 108 | 107 |
Other | 674 | 249 |
Assets and liabilities measured at fair value on a recurring basis | Economic hedges | Interest rate | ||
Assets: | ||
Unrealized gain | 6 | 4 |
Liabilities: | ||
Unrealized loss | 1 | 1 |
Assets and liabilities measured at fair value on a recurring basis | Economic hedges | Foreign exchange | ||
Assets: | ||
Unrealized gain | 468 | 321 |
Liabilities: | ||
Unrealized loss | 582 | 431 |
Assets and liabilities measured at fair value on a recurring basis | Economic hedges | Commodities | ||
Assets: | ||
Unrealized gain | 806 | 523 |
Liabilities: | ||
Unrealized loss | 1,146 | 432 |
Assets and liabilities measured at fair value on a recurring basis | Economic hedges | Freight | ||
Assets: | ||
Unrealized gain | 30 | 26 |
Liabilities: | ||
Unrealized loss | 34 | 18 |
Assets and liabilities measured at fair value on a recurring basis | Economic hedges | Energy | ||
Assets: | ||
Unrealized gain | 10 | 18 |
Liabilities: | ||
Unrealized loss | 10 | 13 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | ||
Assets: | ||
Readily marketable inventories | 0 | 0 |
Trade accounts receivable | 0 | 0 |
Total assets | 209 | 166 |
Liabilities: | ||
Trade accounts payable | 0 | 0 |
Total liabilities | 234 | 166 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Hedge accounting | Interest rate | ||
Assets: | ||
Unrealized gain | 0 | 0 |
Liabilities: | ||
Unrealized loss | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Hedge accounting | Foreign exchange | ||
Assets: | ||
Unrealized gain | 0 | 0 |
Liabilities: | ||
Unrealized loss | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Economic hedges | ||
Assets: | ||
Deferred purchase price receivable | 0 | 0 |
Other | 30 | 15 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Economic hedges | Interest rate | ||
Assets: | ||
Unrealized gain | 0 | 0 |
Liabilities: | ||
Unrealized loss | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Economic hedges | Foreign exchange | ||
Assets: | ||
Unrealized gain | 4 | 0 |
Liabilities: | ||
Unrealized loss | 2 | 1 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Economic hedges | Commodities | ||
Assets: | ||
Unrealized gain | 146 | 115 |
Liabilities: | ||
Unrealized loss | 199 | 141 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Economic hedges | Freight | ||
Assets: | ||
Unrealized gain | 19 | 18 |
Liabilities: | ||
Unrealized loss | 25 | 15 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Economic hedges | Energy | ||
Assets: | ||
Unrealized gain | 10 | 18 |
Liabilities: | ||
Unrealized loss | 8 | 9 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | ||
Assets: | ||
Readily marketable inventories | 4,550 | 3,691 |
Trade accounts receivable | 1 | 5 |
Total assets | 6,442 | 4,769 |
Liabilities: | ||
Trade accounts payable | 402 | 467 |
Total liabilities | 1,965 | 1,204 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Hedge accounting | Interest rate | ||
Assets: | ||
Unrealized gain | 1 | 0 |
Liabilities: | ||
Unrealized loss | 55 | 31 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Hedge accounting | Foreign exchange | ||
Assets: | ||
Unrealized gain | 34 | 18 |
Liabilities: | ||
Unrealized loss | 1 | 2 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Economic hedges | ||
Assets: | ||
Deferred purchase price receivable | 108 | 107 |
Other | 644 | 234 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Economic hedges | Interest rate | ||
Assets: | ||
Unrealized gain | 6 | 4 |
Liabilities: | ||
Unrealized loss | 1 | 1 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Economic hedges | Foreign exchange | ||
Assets: | ||
Unrealized gain | 464 | 321 |
Liabilities: | ||
Unrealized loss | 580 | 430 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Economic hedges | Commodities | ||
Assets: | ||
Unrealized gain | 634 | 389 |
Liabilities: | ||
Unrealized loss | 925 | 271 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Economic hedges | Freight | ||
Assets: | ||
Unrealized gain | 0 | 0 |
Liabilities: | ||
Unrealized loss | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Economic hedges | Energy | ||
Assets: | ||
Unrealized gain | 0 | 0 |
Liabilities: | ||
Unrealized loss | 1 | 2 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | ||
Assets: | ||
Readily marketable inventories | 860 | 365 |
Trade accounts receivable | 0 | 0 |
Total assets | 897 | 392 |
Liabilities: | ||
Trade accounts payable | 317 | 116 |
Total liabilities | 349 | 141 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Hedge accounting | Interest rate | ||
Assets: | ||
Unrealized gain | 0 | 0 |
Liabilities: | ||
Unrealized loss | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Hedge accounting | Foreign exchange | ||
Assets: | ||
Unrealized gain | 0 | 0 |
Liabilities: | ||
Unrealized loss | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Economic hedges | ||
Assets: | ||
Deferred purchase price receivable | 0 | 0 |
Other | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Economic hedges | Interest rate | ||
Assets: | ||
Unrealized gain | 0 | 0 |
Liabilities: | ||
Unrealized loss | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Economic hedges | Foreign exchange | ||
Assets: | ||
Unrealized gain | 0 | 0 |
Liabilities: | ||
Unrealized loss | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Economic hedges | Commodities | ||
Assets: | ||
Unrealized gain | 26 | 19 |
Liabilities: | ||
Unrealized loss | 22 | 20 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Economic hedges | Freight | ||
Assets: | ||
Unrealized gain | 11 | 8 |
Liabilities: | ||
Unrealized loss | 9 | 3 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Economic hedges | Energy | ||
Assets: | ||
Unrealized gain | 0 | 0 |
Liabilities: | ||
Unrealized loss | $ 1 | $ 2 |
FINANCIAL INSTRUMENTS AND FAI62
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - RECONCILIATION FOR ASSETS AND LIABILITIES MEASURE AT FAIR VALUE USING LEVEL 3 (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Total | ||
Balance at beginning of period | $ 251 | $ 142 |
Purchases | 374 | 437 |
Sales | (279) | (372) |
Issuances | (9) | (2) |
Settlements | 48 | 17 |
Transfers into Level 3 | 119 | 177 |
Transfers out of Level 3 | (26) | (34) |
Balance at end of period | 548 | 299 |
Cost of goods sold | ||
Total | ||
Total gains and (losses), realized/unrealized included in cost of goods sold | 70 | (66) |
Derivatives, Net | ||
Derivatives, Net | ||
Balance at beginning of period | 2 | (51) |
Purchases | 9 | 4 |
Sales | 0 | 0 |
Issuances | (9) | (2) |
Settlements | 8 | 17 |
Transfers into Level 3 | (2) | (4) |
Transfers out of Level 3 | 0 | 23 |
Balance at end of period | 5 | (72) |
Total | ||
Changes in unrealized gains (losses) relating to Level 3 assets and liabilities | (12) | (54) |
Derivatives, Net | Cost of goods sold | ||
Derivatives, Net | ||
Total gains and (losses), realized/unrealized included in cost of goods sold | (3) | (59) |
Readily Marketable Inventories | ||
Readily Marketable Inventories | ||
Balance at beginning of period | 365 | 237 |
Purchases | 613 | 764 |
Sales | (279) | (372) |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Transfers into Level 3 | 124 | 184 |
Transfers out of Level 3 | (26) | (56) |
Balance at end of period | 860 | 743 |
Total | ||
Changes in unrealized gains (losses) relating to Level 3 assets and liabilities | (3) | (13) |
Readily Marketable Inventories | Cost of goods sold | ||
Readily Marketable Inventories | ||
Total gains and (losses), realized/unrealized included in cost of goods sold | 63 | (14) |
Trade Accounts Receivable/ Payable, Net | ||
Trade Accounts Receivable/ Payable, Net | ||
Balance at beginning of period | (116) | (44) |
Purchases | (248) | (331) |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | 40 | 0 |
Transfers into Level 3 | (3) | (3) |
Transfers out of Level 3 | 0 | (1) |
Balance at end of period | (317) | (372) |
Total | ||
Changes in unrealized gains (losses) relating to Level 3 assets and liabilities | 0 | 2 |
Trade Accounts Receivable/ Payable, Net | Cost of goods sold | ||
Trade Accounts Receivable/ Payable, Net | ||
Total gains and (losses), realized/unrealized included in cost of goods sold | $ 10 | $ 7 |
FINANCIAL INSTRUMENTS AND FAI63
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - DERIVATIVE POSITIONS (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018USD ($)MMBTUdayt | Mar. 31, 2017USD ($)MMBTUdayt | Dec. 31, 2017USD ($) | |
Interest rate | Long | Swaps | |||
Derivative | |||
Notional amount of derivative | $ 251 | $ 1,476 | |
Interest rate | Long | Futures | |||
Derivative | |||
Notional amount of derivative | 0 | 0 | |
Interest rate | Long | Forward Rate Agreements | |||
Derivative | |||
Notional amount of derivative | 338 | 825 | |
Interest rate | Short | Swaps | |||
Derivative | |||
Notional amount of derivative | 1,967 | 2,048 | |
Interest rate | Short | Futures | |||
Derivative | |||
Notional amount of derivative | 2 | 0 | |
Interest rate | Short | Forward Rate Agreements | |||
Derivative | |||
Notional amount of derivative | 423 | 0 | |
Foreign exchange | Long | Swaps | |||
Derivative | |||
Notional amount of derivative | 124 | 389 | |
Foreign exchange | Long | Futures | |||
Derivative | |||
Notional amount of derivative | 0 | 0 | |
Foreign exchange | Long | Forwards | |||
Derivative | |||
Notional amount of derivative | 12,351 | 8,341 | |
Foreign exchange | Long | Options | |||
Derivative | |||
Delta | 868 | 157 | |
Foreign exchange | Short | Swaps | |||
Derivative | |||
Notional amount of derivative | 360 | 265 | |
Foreign exchange | Short | Futures | |||
Derivative | |||
Notional amount of derivative | 59 | 90 | |
Foreign exchange | Short | Forwards | |||
Derivative | |||
Notional amount of derivative | 11,948 | 9,515 | |
Foreign exchange | Short | Options | |||
Derivative | |||
Delta | $ 761 | $ 230 | |
Commodities | Long | Swaps | |||
Derivative | |||
Nonmonetary notional amount of derivatives | t | 689,796 | 1,768,321 | |
Commodities | Long | Futures | |||
Derivative | |||
Nonmonetary notional amount of derivatives | t | 5,707,101 | 768,446 | |
Commodities | Long | Forwards | |||
Derivative | |||
Nonmonetary notional amount of derivatives | t | 34,369,156 | 26,296,335 | |
Commodities | Long | Options | |||
Derivative | |||
Nonmonetary notional amount of derivatives | t | 505,421 | 0 | |
Commodities | Short | Swaps | |||
Derivative | |||
Nonmonetary notional amount of derivatives | t | 10,663,868 | 6,932,933 | |
Commodities | Short | Futures | |||
Derivative | |||
Nonmonetary notional amount of derivatives | t | 0 | 0 | |
Commodities | Short | Forwards | |||
Derivative | |||
Nonmonetary notional amount of derivatives | t | 33,458,373 | 35,909,050 | |
Commodities | Short | Options | |||
Derivative | |||
Nonmonetary notional amount of derivatives | t | 0 | 968,475 | |
Freight | Long | Forwards | |||
Derivative | |||
Nonmonetary notional amount of derivatives | day | 0 | 1,264 | |
Freight | Long | Options | |||
Derivative | |||
Nonmonetary notional amount of derivatives | day | 719 | 0 | |
Freight | Short | Forwards | |||
Derivative | |||
Nonmonetary notional amount of derivatives | day | 7,469 | 0 | |
Freight | Short | Options | |||
Derivative | |||
Nonmonetary notional amount of derivatives | day | 0 | 985 | |
Natural gas | Long | Swaps | |||
Derivative | |||
Nonmonetary notional amount of derivatives | MMBTU | 3,852,305 | 1,236,469 | |
Natural gas | Long | Futures | |||
Derivative | |||
Nonmonetary notional amount of derivatives | MMBTU | 1,553,303 | 5,167,500 | |
Natural gas | Short | Swaps | |||
Derivative | |||
Nonmonetary notional amount of derivatives | MMBTU | 0 | 0 | |
Natural gas | Short | Futures | |||
Derivative | |||
Nonmonetary notional amount of derivatives | MMBTU | 0 | 0 | |
Energy - other | Long | Swaps | |||
Derivative | |||
Nonmonetary notional amount of derivatives | t | 221,500 | 271,900 | |
Energy - other | Long | Futures | |||
Derivative | |||
Nonmonetary notional amount of derivatives | t | 35,743 | 0 | |
Energy - other | Long | Forwards | |||
Derivative | |||
Nonmonetary notional amount of derivatives | t | 5,535,248 | 6,255,869 | |
Energy - other | Long | Options | |||
Derivative | |||
Nonmonetary notional amount of derivatives | t | 0 | 0 | |
Energy - other | Short | Swaps | |||
Derivative | |||
Nonmonetary notional amount of derivatives | t | 0 | 0 | |
Energy - other | Short | Futures | |||
Derivative | |||
Nonmonetary notional amount of derivatives | t | 0 | 4,454 | |
Energy - other | Short | Forwards | |||
Derivative | |||
Nonmonetary notional amount of derivatives | t | 0 | 0 | |
Energy - other | Short | Options | |||
Derivative | |||
Nonmonetary notional amount of derivatives | t | 0 | 403 | |
Fair Value Hedging | Interest rate | |||
Derivative | |||
Carrying value of hedged debt | $ 2,272 | $ 2,071 | |
Cumulative adjustment to long-term debt from application of hedge accounting | (54) | (31) | |
Notional amount of derivative | 2,336 | 2,109 | |
Fair Value Hedging | Foreign exchange | |||
Derivative | |||
Carrying value of hedged debt | 324 | 0 | |
Cumulative adjustment to long-term debt from application of hedge accounting | 0 | 0 | |
Notional amount of derivative | 322 | 0 | |
Cash Flow Hedges | Foreign exchange | |||
Derivative | |||
Amounts expected to be reclassified from AOCI to earnings in the next twelve months | 3 | ||
Notional amount of derivative | 155 | 237 | |
Net Investment Hedges | |||
Derivative | |||
Carrying value of non-derivative hedging instrument | 982 | 725 | |
Net Investment Hedges | Foreign exchange | |||
Derivative | |||
Notional amount of derivative | $ 340 | $ 1,000 |
FINANCIAL INSTRUMENTS AND FAI64
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - EFFECT OF DERIVATIVE INSTRUMENTS (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cost of goods sold | ||
Derivative Instruments, Gain (Loss) | ||
Gain (loss) recognized in income on derivative instruments | $ (302) | $ 344 |
Foreign currency gains (losses) | ||
Derivative Instruments, Gain (Loss) | ||
Gain (loss) recognized in income on derivative instruments | 0 | 77 |
Foreign currency | Cash Flow Hedges | ||
Derivative Instruments, Gain (Loss) | ||
Other comprehensive income (loss) | 2 | 5 |
Amounts released from accumulated other comprehensive income (loss) during the period | 3 | 2 |
Foreign currency | Net Investment Hedges | ||
Derivative Instruments, Gain (Loss) | ||
Other comprehensive income (loss) | 19 | 0 |
Foreign currency | Fair Value Hedging | ||
Derivative Instruments, Gain (Loss) | ||
Other comprehensive income (loss) | (1) | 0 |
Foreign Exchange Debt | Net Investment Hedges | ||
Derivative Instruments, Gain (Loss) | ||
Other comprehensive income (loss) | (17) | (12) |
Hedge accounting | Foreign currency | Foreign currency gains (losses) | ||
Derivative Instruments, Gain (Loss) | ||
Gain (loss) on hedge accounting | 3 | 0 |
Hedge accounting | Interest rate | Interest expense | ||
Derivative Instruments, Gain (Loss) | ||
Gain (loss) on hedge accounting | 2 | 5 |
Economic hedges | Foreign currency | Cost of goods sold | ||
Derivative Instruments, Gain (Loss) | ||
Gain (loss) on economic hedges | (35) | 92 |
Economic hedges | Foreign currency | Foreign currency gains (losses) | ||
Derivative Instruments, Gain (Loss) | ||
Gain (loss) on economic hedges | (3) | 77 |
Economic hedges | Commodities | Cost of goods sold | ||
Derivative Instruments, Gain (Loss) | ||
Gain (loss) on economic hedges | (260) | 270 |
Economic hedges | Freight | Cost of goods sold | ||
Derivative Instruments, Gain (Loss) | ||
Gain (loss) on economic hedges | (5) | (8) |
Economic hedges | Energy | Cost of goods sold | ||
Derivative Instruments, Gain (Loss) | ||
Gain (loss) on economic hedges | $ (2) | $ (10) |
DEBT (Details)
DEBT (Details) - USD ($) | May 01, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Debt | |||
Debt instrument unused and available borrowing capacity amount | $ 3,296,000,000 | ||
Maximum borrowing capacity | 5,015,000,000 | ||
Carrying Value | |||
Debt | |||
Long-term debt, including current portion | 5,460,000,000 | $ 4,175,000,000 | |
Fair value | Level 2 | |||
Debt | |||
Long-term debt, including current portion | 5,567,000,000 | $ 4,337,000,000 | |
Commercial paper program | |||
Debt | |||
Commercial paper, outstanding issuances | 458,000,000 | ||
Liquidity facility | |||
Debt | |||
Credit facility, borrowings outstanding | $ 0 | ||
Revolving credit facility | Subsequent Event | |||
Debt | |||
Current borrowing capacity | $ 700,000,000 | ||
Term | 5 years | ||
Additional borrowing capacity | $ 100,000,000 |
TRADE RECEIVABLES SECURITIZAT66
TRADE RECEIVABLES SECURITIZATION PROGRAM (Details) - Bunge Securitization B.V. - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Accounts Receivable Securitization Facilities Disclosures | |||
Maximum funding under trade receivables securitization program | $ 700 | ||
Receivables sold which were derecognized from Bunge's balance sheet | 769 | $ 810 | |
Deferred purchase price included in other current assets | 108 | $ 107 | |
Gross receivables sold | 2,322 | $ 2,259 | |
Proceeds received in cash related to transfer of receivables | 2,311 | 2,252 | |
Cash collections from customers on receivables previously sold | 2,462 | 2,347 | |
Discounts related to gross receivables sold included in SG&A | $ 3 | $ 2 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Tapajos | ||
Related Party Transactions | ||
Ownership interest | 50.00% | |
Notes receivable | $ 22 | |
Tapajos | CDI | ||
Related Party Transactions | ||
Variable interest rate | 80.00% | |
Solazyme | ||
Related Party Transactions | ||
Ownership interest | 49.90% | |
Notes receivable | $ 9 | |
Solazyme | CDI | ||
Related Party Transactions | ||
Variable interest rate | 100.00% | |
Bunge SCF Grain LLC | ||
Related Party Transactions | ||
Ownership interest | 50.00% | |
Notes receivable | $ 14 | |
Other related party | ||
Related Party Transactions | ||
Notes receivable | 4 | |
Unconsolidated joint ventures | ||
Related Party Transactions | ||
Purchases of soybeans, other commodity products and received port services from certain unconsolidated ventures | 271 | $ 267 |
Sale of soybeans, other commodity products and provided port services to certain unconsolidated ventures | $ 94 | $ 66 |
COMMITMENTS AND CONTINGENCIES68
COMMITMENTS AND CONTINGENCIES (Details) R$ in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2018USD ($)subsidiary | Dec. 31, 2017USD ($) | Dec. 31, 2011USD ($) | Mar. 31, 2018BRL (R$) | Mar. 31, 2016employee | |
Loss Contingencies and Guarantees | |||||
Non-income tax claims | $ 352 | $ 356 | |||
Maximum potential future payments related to guarantees | 479 | ||||
Brazil | |||||
Loss Contingencies and Guarantees | |||||
Number of employees under administrative proceedings | employee | 2 | ||||
Argentina | |||||
Loss Contingencies and Guarantees | |||||
Payment of accrued export tax obligations | $ 112 | ||||
Interest assessed on paid export tax obligations | 270 | ||||
Non-income tax claims | |||||
Loss Contingencies and Guarantees | |||||
Non-income tax claims | 159 | 161 | |||
Labor claims | |||||
Loss Contingencies and Guarantees | |||||
Non-income tax claims | 89 | 92 | |||
Civil and other claims | |||||
Loss Contingencies and Guarantees | |||||
Non-income tax claims | 104 | 103 | |||
Value added tax claims (ICMS, IPI, PIS and COFINS) | Brazil | |||||
Loss Contingencies and Guarantees | |||||
Income tax liability for ICMS incentives or benefits | 0 | ||||
Unconstitutional ICMS Tax Credits | |||||
Loss Contingencies and Guarantees | |||||
Portion of outstanding liabilities | 122 | R$ 406 | |||
ICMS tax liability | Brazil | Tax return examination 1990 - Present | |||||
Loss Contingencies and Guarantees | |||||
Total assessment | 275 | 281 | |||
PIS COFINS liability | Brazil | Tax return examination 2004 - 2012 | |||||
Loss Contingencies and Guarantees | |||||
Total assessment | 199 | $ 200 | |||
Unconsolidated affiliates financing | |||||
Loss Contingencies and Guarantees | |||||
Maximum potential future payments related to guarantees | 210 | ||||
Obligation related to outstanding guarantees | 0 | ||||
Residual value guarantee | |||||
Loss Contingencies and Guarantees | |||||
Maximum potential future payments related to guarantees | 269 | ||||
Obligation related to outstanding guarantees | 2 | ||||
Guarantee of indebtedness of subsidiaries | |||||
Loss Contingencies and Guarantees | |||||
Long-term debt including current portion, carrying value | $ 6,175 | ||||
Guarantee of indebtedness of subsidiaries | 100% owned subsidiaries | Bunge Limited Finance Corp, Bunge Finance Europe, B.V and Bunge N.A. Finance L.P | |||||
Loss Contingencies and Guarantees | |||||
Number of finance subsidiaries issuing senior notes | subsidiary | 3 | ||||
Percentage of ownership interest | 100.00% | 100.00% |
REDEEMABLE NONCONTROLLING INT69
REDEEMABLE NONCONTROLLING INTEREST (Details) - Loders | Mar. 01, 2018 |
Redeemable Noncontrolling Interest [Line Items] | |
Interest acquired (as a percent) | 70.00% |
Ownership interest by minority shareholder | 30.00% |
EQUITY - AOCI (Details)
EQUITY - AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||
Balance | $ 7,357 | $ 7,343 |
Balance | 7,277 | 7,633 |
Foreign Exchange Translation Adjustment | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||
Balance | (5,547) | (5,734) |
Other comprehensive income (loss) before reclassifications | (15) | 261 |
Amount reclassified from accumulated other comprehensive income | 0 | 0 |
Balance | (5,562) | (5,473) |
Deferred Gains (Losses) on Hedging Activities | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||
Balance | (244) | (102) |
Other comprehensive income (loss) before reclassifications | 3 | (7) |
Amount reclassified from accumulated other comprehensive income | (3) | (2) |
Balance | (244) | (111) |
Pension and Other Postretirement Liability Adjustments | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||
Balance | (140) | (145) |
Other comprehensive income (loss) before reclassifications | (1) | 0 |
Amount reclassified from accumulated other comprehensive income | 0 | 0 |
Balance | (141) | (145) |
Unrealized Gains (Losses) on Investments | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||
Balance | 1 | 3 |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Amount reclassified from accumulated other comprehensive income | (1) | 0 |
Balance | 0 | 3 |
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||
Balance | (5,930) | (5,978) |
Other comprehensive income (loss) before reclassifications | (13) | 254 |
Amount reclassified from accumulated other comprehensive income | (4) | (2) |
Balance | $ (5,947) | $ (5,726) |
EARNINGS PER COMMON SHARE (Deta
EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Computation of basic and diluted earnings per common share | ||
Income (loss) from continuing operations | $ (17) | $ 54 |
Net (income) loss attributable to noncontrolling interests | (2) | (1) |
Income (loss) from continuing operations attributable to Bunge | (19) | 53 |
Convertible preference share dividends | (8) | (8) |
Income (loss) from discontinued operations, net of tax | (2) | (6) |
Net income (loss) available to Bunge common shareholders | $ (29) | $ 39 |
Weighted-average number of common shares outstanding: | ||
Basic (in shares) | 140,736,907 | 139,752,305 |
Effect of dilutive shares: | ||
-stock options and awards (in shares) | 0 | 1,144,851 |
-convertible preference shares (in shares) | 0 | 0 |
Diluted (in shares) | 140,736,907 | 140,897,156 |
Basic earnings per common share: | ||
Net income (loss) from continuing operations (in dollars per share) | $ (0.20) | $ 0.31 |
Net income (loss) from discontinued operations (in dollars per share) | (0.01) | (0.04) |
Net income (loss) to Bunge common shareholders—basic (in dollars per share) | (0.21) | 0.27 |
Diluted earnings per common share: | ||
Net income (loss) from continuing operations (in dollars per share) | (0.20) | 0.31 |
Net income (loss) from discontinued operations (in dollars per share) | (0.01) | (0.04) |
Net income (loss) to Bunge common shareholders—diluted (in dollars per share) | $ (0.21) | $ 0.27 |
Convertible Preference Shares | ||
Diluted earnings per common share: | ||
Antidilutive shares excluded from computation of EPS | 8,000,000 | 8,000,000 |
Stock options and contingently issuable restricted stock units | ||
Diluted earnings per common share: | ||
Antidilutive shares excluded from computation of EPS | 7,000,000 | 2,000,000 |
SEGMENT INFORMATION - FINANCIAL
SEGMENT INFORMATION - FINANCIAL INFORMATION BY SEGMENT (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018USD ($)segment | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | |
Segment Reporting Information | |||
Number of reportable segments | segment | 5 | ||
Operating Segment Information | |||
Net sales | $ 10,641 | $ 11,121 | |
Foreign exchange gains (losses) | 0 | 56 | |
Noncontrolling interests | (2) | (1) | |
Other income (expense) – net | 24 | (3) | |
Total Segment EBIT from continuing operations | 61 | 133 | |
Discontinued operations | (2) | (6) | |
Depreciation, depletion and amortization | (142) | (130) | |
Total assets | 23,084 | 20,620 | $ 18,871 |
Agribusiness | |||
Operating Segment Information | |||
Net sales | 7,462 | 7,819 | |
Foreign exchange gains (losses) | 0 | 49 | |
Other income (expense) – net | 24 | 3 | |
Total Segment EBIT from continuing operations | 42 | 109 | |
Discontinued operations | 0 | 0 | |
Depreciation, depletion and amortization | (67) | (61) | |
Edible Oil Products | |||
Operating Segment Information | |||
Net sales | 2,149 | 1,880 | |
Foreign exchange gains (losses) | (1) | 3 | |
Other income (expense) – net | (3) | (2) | |
Total Segment EBIT from continuing operations | 28 | 36 | |
Discontinued operations | 0 | 0 | |
Depreciation, depletion and amortization | (32) | (24) | |
Milling Products | |||
Operating Segment Information | |||
Net sales | 409 | 382 | |
Foreign exchange gains (losses) | 2 | 0 | |
Other income (expense) – net | 0 | (2) | |
Total Segment EBIT from continuing operations | 17 | 9 | |
Discontinued operations | 0 | 0 | |
Depreciation, depletion and amortization | (15) | (15) | |
Sugar and Bioenergy | |||
Operating Segment Information | |||
Net sales | 563 | 988 | |
Foreign exchange gains (losses) | 1 | 5 | |
Other income (expense) – net | 2 | (2) | |
Total Segment EBIT from continuing operations | (24) | (17) | |
Discontinued operations | 0 | 0 | |
Depreciation, depletion and amortization | (26) | (27) | |
Fertilizer | |||
Operating Segment Information | |||
Net sales | 58 | 52 | |
Foreign exchange gains (losses) | (2) | (1) | |
Other income (expense) – net | 1 | 0 | |
Total Segment EBIT from continuing operations | (2) | (4) | |
Discontinued operations | 0 | 0 | |
Depreciation, depletion and amortization | (2) | (3) | |
Inter—segment revenues | |||
Operating Segment Information | |||
Net sales | (1,121) | (1,055) | |
Inter—segment revenues | Agribusiness | |||
Operating Segment Information | |||
Net sales | (1,066) | (1,012) | |
Inter—segment revenues | Edible Oil Products | |||
Operating Segment Information | |||
Net sales | (37) | (38) | |
Inter—segment revenues | Milling Products | |||
Operating Segment Information | |||
Net sales | 0 | (5) | |
Inter—segment revenues | Sugar and Bioenergy | |||
Operating Segment Information | |||
Net sales | (18) | 0 | |
Inter—segment revenues | Fertilizer | |||
Operating Segment Information | |||
Net sales | 0 | 0 | |
Operating | Agribusiness | |||
Operating Segment Information | |||
Noncontrolling interests | 0 | 0 | |
Total assets | 14,531 | 13,303 | |
Operating | Edible Oil Products | |||
Operating Segment Information | |||
Noncontrolling interests | (3) | (2) | |
Total assets | 4,346 | 2,418 | |
Operating | Milling Products | |||
Operating Segment Information | |||
Noncontrolling interests | 0 | 0 | |
Total assets | 1,608 | 1,535 | |
Operating | Sugar and Bioenergy | |||
Operating Segment Information | |||
Noncontrolling interests | 1 | 0 | |
Total assets | 2,124 | 2,819 | |
Operating | Fertilizer | |||
Operating Segment Information | |||
Noncontrolling interests | (1) | 0 | |
Total assets | 297 | 358 | |
Discontinued Operations and Unallocated | |||
Operating Segment Information | |||
Foreign exchange gains (losses) | 0 | 0 | |
Noncontrolling interests | 1 | 1 | |
Other income (expense) – net | 0 | 0 | |
Total Segment EBIT from continuing operations | 0 | 0 | |
Discontinued operations | (2) | (6) | |
Depreciation, depletion and amortization | 0 | 0 | |
Total assets | $ 178 | $ 187 |
SEGMENT INFORMATION - NET INCOM
SEGMENT INFORMATION - NET INCOME TO SEGMENT EBIT (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Reconciliation of total segment EBIT: | ||
Total Segment EBIT from continuing operations | $ 61 | $ 133 |
Interest income | 8 | 12 |
Interest expense | (70) | (65) |
Income tax (expense) benefit | (19) | (28) |
Income (loss) from discontinued operations, net of tax | (2) | (6) |
Noncontrolling interests' share of interest and tax | 1 | 1 |
Net income (loss) attributable to Bunge | $ (21) | $ 47 |
SEGMENT INFORMATION - NET SALES
SEGMENT INFORMATION - NET SALES TO EXTERNAL CUSTOMERS (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenue from External Customer [Line Items] | ||
Sales from contracts with customers | $ 2,617 | |
Revenue from other arrangements | 8,024 | |
Net sales to external customers | 10,641 | $ 11,121 |
Agribusiness | ||
Revenue from External Customer [Line Items] | ||
Sales from contracts with customers | 324 | |
Revenue from other arrangements | 7,138 | |
Net sales to external customers | 7,462 | 7,819 |
Edible Oil Products | ||
Revenue from External Customer [Line Items] | ||
Sales from contracts with customers | 1,726 | |
Revenue from other arrangements | 423 | |
Net sales to external customers | 2,149 | 1,880 |
Milling Products | ||
Revenue from External Customer [Line Items] | ||
Sales from contracts with customers | 397 | |
Revenue from other arrangements | 12 | |
Net sales to external customers | 409 | 382 |
Sugar and Bioenergy | ||
Revenue from External Customer [Line Items] | ||
Sales from contracts with customers | 112 | |
Revenue from other arrangements | 451 | |
Net sales to external customers | 563 | 988 |
Fertilizer | ||
Revenue from External Customer [Line Items] | ||
Sales from contracts with customers | 58 | |
Revenue from other arrangements | 0 | |
Net sales to external customers | $ 58 | $ 52 |