DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 15, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | Bunge LTD | ||
Entity Central Index Key | 1,144,519 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 9,792 | ||
Entity Common Stock, Shares Outstanding | 141,118,189 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | bg |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Net sales | $ 45,743 | $ 45,794 | $ 42,679 |
Cost of goods sold | (43,477) | (44,029) | (40,269) |
Gross profit | 2,266 | 1,765 | 2,410 |
Selling, general and administrative expenses | (1,423) | (1,437) | (1,284) |
Interest income | 31 | 38 | 51 |
Interest expense | (339) | (263) | (234) |
Foreign exchange gains (losses) | (101) | 95 | (8) |
Other income (expense)—net | 48 | 40 | 10 |
Gain (loss), net on disposition of equity interests/subsidiaries | (26) | 9 | 122 |
Equity investment impairments | 0 | (17) | (59) |
Goodwill and intangible impairments | 0 | 0 | (12) |
Income (loss) from continuing operations before income tax | 456 | 230 | 996 |
Income tax (expense) benefit | (179) | (56) | (220) |
Income (loss) from continuing operations | 277 | 174 | 776 |
Income (loss) from discontinued operations, net of tax | 10 | 0 | (9) |
Net income (loss) | 287 | 174 | 767 |
Net (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests | (20) | (14) | (22) |
Net income (loss) attributable to Bunge | 267 | 160 | 745 |
Convertible preference share dividends and other obligations | (34) | (34) | (36) |
Net income (loss) available to Bunge common shareholders | $ 233 | $ 126 | $ 709 |
Earnings (loss) per common share-basic | |||
Net income (loss) from continuing operations (in dollars per share) | $ 1.58 | $ 0.90 | $ 5.13 |
Net income (loss) from discontinued operations (in dollars per share) | 0.07 | 0 | (0.06) |
Net income (loss) to Bunge common shareholders (in dollars per share) | 1.65 | 0.90 | 5.07 |
Earnings (loss) per common share-diluted | |||
Net income (loss) from continuing operations (in dollars per share) | 1.57 | 0.89 | 5.07 |
Net income (loss) from discontinued operations (in dollars per share) | 0.07 | 0 | (0.06) |
Net income (loss) to Bunge common shareholders (in dollars per share) | $ 1.64 | $ 0.89 | $ 5.01 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 287 | $ 174 | $ 767 | |
Other comprehensive income (loss): | ||||
Foreign exchange translation adjustment | [1] | (1,125) | 203 | 713 |
Unrealized gains (losses) on designated hedges, net of tax (expense) benefit of $1, $(1), and nil | 99 | (105) | (305) | |
Unrealized gains (losses) on investments, net of tax (expense) benefit of nil, $(1), and nil | 0 | 2 | 0 | |
Reclassification of realized net losses (gains) to net income, net of tax expense (benefit) of $2, $2, and nil | 2 | (41) | (11) | |
Pension adjustment, net of tax (expense) benefit of $4, $(4), and $4 | (16) | 5 | (11) | |
Total other comprehensive income (loss) | (1,040) | 64 | 386 | |
Total comprehensive income (loss) | (753) | 238 | 1,153 | |
Less: comprehensive (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests | 14 | (30) | (26) | |
Total comprehensive income (loss) attributable to Bunge | $ (739) | $ 208 | $ 1,127 | |
[1] | 2018 Includes the release of cumulative translation adjustments upon the disposition of the Company's foreign subsidiaries and equity-method investments of $29 million, which is recorded in Other income (expense) - net in the consolidated statements of income. |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (PARENTHETICAL) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Unrealized gains (losses) on designated cash flow and net investment hedges, tax (expense) benefit | $ 1 | $ (1) | $ 0 |
Unrealized gains (losses) on investments, tax (expense) benefit | 0 | (1) | 0 |
Reclassification of realized net losses (gains) to net income, tax expense (benefit) | 2 | 2 | 0 |
Pension adjustment, tax (expense) benefit | 4 | (4) | 4 |
Foreign Currency Translation Adjustment | |||
Amount reclassified from accumulated other comprehensive income | $ 29 | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 389 | $ 601 |
Trade accounts receivable (less allowances of $113 and $107) (Note 18) | 1,637 | 1,501 |
Inventories (Note 5) | 5,871 | 5,074 |
Other current assets (Note 6) | 3,171 | 3,227 |
Total current assets | 11,068 | 10,403 |
Property, plant and equipment, net (Note 7) | 5,201 | 5,310 |
Goodwill (Note 8) | 727 | 515 |
Other intangible assets, net (Note 9) | 697 | 323 |
Investments in affiliates (Note 11) | 451 | 461 |
Deferred income taxes (Note 14) | 458 | 516 |
Time deposits under trade structured finance program (Note 4) | 0 | 315 |
Other non-current assets (Note 12) | 823 | 1,028 |
Total assets | 19,425 | 18,871 |
Current liabilities: | ||
Short-term debt (Note 16) | 750 | 304 |
Current portion of long-term debt (Note 17) | 419 | 15 |
Letter of credit obligations under trade structured finance program (Note 4) | 0 | 315 |
Trade accounts payable (includes $441 and $583 carried at fair value) | 3,501 | 3,395 |
Other current liabilities (Note 13) | 2,502 | 2,186 |
Total current liabilities | 7,172 | 6,215 |
Long-term debt (Note 17) | 4,203 | 4,160 |
Deferred income taxes (Note 14) | 356 | 223 |
Other non-current liabilities | 892 | 916 |
Commitments and contingencies (Note 21) | ||
Redeemable noncontrolling interests (Note 22) | 424 | 0 |
Equity (Note 23): | ||
Convertible perpetual preference shares, par value $.01; authorized, issued and outstanding: 2018—6,899,683 shares 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—141,111,081 shares, 2017—140,646,829 shares | 1 | 1 |
Additional paid-in capital | 5,278 | 5,226 |
Retained earnings | 8,059 | 8,081 |
Accumulated other comprehensive income (loss) (Note 23) | (6,935) | (5,930) |
Treasury shares, at cost—2018 and 2017—12,882,313 shares | (920) | (920) |
Total Bunge shareholders' equity | 6,173 | 7,148 |
Noncontrolling interests | 205 | 209 |
Total equity | 6,378 | 7,357 |
Total liabilities and equity | $ 19,425 | $ 18,871 |
CONSOLIDATED BALANCE SHEETS (PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Trade accounts receivable, allowances | $ 113 | $ 107 |
Trade accounts payable, at fair value | $ 441 | $ 583 |
Convertible perpetual preference shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Convertible perpetual preference shares, authorized (in shares) | 6,899,683 | 6,899,700 |
Convertible perpetual preference shares, issued (in shares) | 6,899,683 | 6,899,700 |
Convertible perpetual preference shares, outstanding (in shares) | 6,899,683 | 6,899,700 |
Convertible perpetual preference shares, liquidation preference (in dollars per share) | $ 100 | $ 100 |
Common shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common shares, authorized (in shares) | 400,000,000 | 400,000,000 |
Common shares, issued (in shares) | 141,111,081 | 140,646,829 |
Common shares, outstanding (in shares) | 141,111,081 | 140,646,829 |
Treasury shares, at cost (in shares) | 12,882,313 | 12,882,313 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
OPERATING ACTIVITIES | |||
Net income | $ 287 | $ 174 | $ 767 |
Adjustments to reconcile net income to cash provided by (used for) operating activities: | |||
Impairment charges | 18 | 52 | 87 |
Foreign exchange (gain) loss on net debt | 139 | 21 | 80 |
(Gain) loss on disposition of equity interests/subsidiaries | 26 | (9) | (122) |
Bad debt expense | 64 | 28 | 13 |
Depreciation, depletion and amortization | 622 | 609 | 547 |
Share-based compensation expense | 46 | 29 | 44 |
Deferred income tax expense (benefit) | 6 | (23) | 126 |
Other, net | 20 | 24 | 15 |
Changes in operating assets and liabilities, excluding the effects of acquisitions: | |||
Trade accounts receivable | (110) | 95 | (131) |
Inventories | (1,107) | (130) | (269) |
Secured advances to suppliers | 41 | 172 | 38 |
Trade accounts payable | 335 | 25 | 708 |
Advances on sales | 22 | 11 | 36 |
Net unrealized gain (loss) on derivative contracts | 145 | 105 | (84) |
Margin deposits | (106) | (5) | 199 |
Recoverable and income taxes, net | 84 | (78) | (178) |
Accrued liabilities | 1 | 25 | (148) |
Marketable Securities | 52 | (128) | 76 |
Beneficial interest in securitized trade receivables | (1,909) | (3,001) | (1,466) |
Other, net | 60 | 29 | 108 |
Cash provided by (used for) operating activities | (1,264) | (1,975) | 446 |
INVESTING ACTIVITIES | |||
Payments made for capital expenditures | (493) | (662) | (784) |
Acquisitions of businesses (net of cash acquired) | (981) | (369) | (34) |
Proceeds from investments | 1,098 | 961 | 802 |
Payments for investments | (1,184) | (944) | (553) |
Settlement of net investment hedges | 66 | (20) | (375) |
Proceeds from interest in securitized trade receivables | 1,888 | 2,981 | 1,458 |
Proceeds from disposals of property, plant and equipment | 1 | 16 | 27 |
Payments for investments in affiliates | (4) | (126) | (40) |
Other, net | 19 | (18) | 33 |
Cash provided by (used for) investing activities | 410 | 1,819 | 534 |
FINANCING ACTIVITIES | |||
Net change in short-term debt with maturities of 90 days or less | 286 | 18 | (206) |
Proceeds from short-term debt with maturities greater than 90 days | 453 | 248 | 428 |
Repayments of short-term debt with maturities greater than 90 days | (253) | (224) | (477) |
Proceeds from long-term debt | 10,732 | 9,054 | 10,396 |
Repayments of long-term debt | (10,262) | (9,010) | (10,080) |
Proceeds from the exercise of options for common shares | 11 | 59 | 0 |
Repurchases of common shares | 0 | 0 | (200) |
Dividends paid to preference shareholders | (34) | (34) | (34) |
Dividends paid to common shareholders | (271) | (247) | (223) |
Dividends paid to noncontrolling interests | (8) | (16) | (25) |
Capital contributions (return of capital) from noncontrolling interests, net | (4) | (5) | (10) |
Acquisition of noncontrolling interest | 0 | 0 | (39) |
Other, net | (19) | (23) | (18) |
Cash provided by (used for) financing activities | 631 | (180) | (488) |
Effect of exchange rate changes on cash and cash equivalents, and restricted cash | 11 | 3 | 33 |
Net increase (decrease) in cash and cash equivalents, and restricted cash | (212) | (333) | 525 |
Cash and cash equivalents, and restricted cash - beginning of period | 605 | 938 | 413 |
Cash and cash equivalents, and restricted cash - end of period | $ 393 | $ 605 | $ 938 |
CONSOLIDATED STATEMENTS OF CHAN
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, 2015 | $ 37 | |||||||||
Balance (in shares) at Dec. 31, 2015 | 6,900,000 | 142,483,467 | ||||||||
Balance at Dec. 31, 2015 | $ 6,652 | $ 690 | $ 1 | $ 5,105 | $ 7,725 | $ (6,360) | $ (720) | $ 211 | ||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net income (loss) | 1 | |||||||||
Net income (loss) | 767 | 745 | 22 | |||||||
Accretion of noncontrolling interests | (2) | (2) | 2 | |||||||
Other comprehensive income (loss) | 386 | 382 | 4 | (1) | ||||||
Dividends on common shares | (228) | (228) | ||||||||
Dividends on preference shares | (34) | (34) | ||||||||
Dividends to noncontrolling interests on subsidiary common stock | (25) | (25) | ||||||||
Noncontrolling decrease from redemption | (6) | (6) | ||||||||
Acquisition of Noncontrolling interest | 17 | (2) | 19 | (39) | ||||||
Deconsolidation of a subsidiary | (26) | (26) | ||||||||
Share-based compensation expense | 44 | 44 | ||||||||
Repurchase of common shares (in shares) | (3,296,230) | |||||||||
Repurchase of common shares | (200) | (200) | ||||||||
Issuance of common shares (in shares) | 313,625 | |||||||||
Issuance of (conversion to) common shares | (2) | (2) | ||||||||
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) | 174 | 160 | 14 | |||||||
Other comprehensive income (loss) | 64 | 48 | 16 | |||||||
Dividends on common shares | (253) | (253) | ||||||||
Dividends on preference shares | (34) | (34) | ||||||||
Dividends to noncontrolling interests on subsidiary common stock | (15) | (15) | ||||||||
Noncontrolling decrease from redemption | (5) | (5) | ||||||||
Share-based compensation expense | 29 | 29 | ||||||||
Issuance of common shares (in shares) | 300 | 1,145,967 | ||||||||
Issuance of (conversion to) common shares | 54 | 54 | ||||||||
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 | ||||||||||
Impact of new accounting standards | [1] | 21 | 21 | |||||||
Net income (loss) | 1 | |||||||||
Net income (loss) | 286 | 267 | 19 | |||||||
Other comprehensive income (loss) | (1,013) | (1,005) | (8) | (27) | ||||||
Dividends on common shares | (276) | (276) | ||||||||
Dividends on preference shares | (34) | (34) | ||||||||
Dividends to noncontrolling interests on subsidiary common stock | (8) | (8) | ||||||||
Noncontrolling decrease from redemption | (4) | (4) | ||||||||
Acquisition of Noncontrolling interest | 0 | 450 | ||||||||
Deconsolidation of a subsidiary | (3) | (3) | ||||||||
Share-based compensation expense | 46 | 46 | ||||||||
Issuance of common shares (in shares) | 17 | 464,252 | ||||||||
Issuance of (conversion to) common shares | 6 | 6 | ||||||||
Balance at Dec. 31, 2018 | 424 | $ 424 | ||||||||
Balance (in shares) at Dec. 31, 2018 | 6,899,683 | 141,111,081 | ||||||||
Balance at Dec. 31, 2018 | $ 6,378 | $ 690 | $ 1 | $ 5,278 | $ 8,059 | $ (6,935) | $ (920) | $ 205 | ||
[1] | See Note 1 for further details |
NATURE OF BUSINESS, BASIS OF PR
NATURE OF BUSINESS, BASIS OF PRESENTATION, AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF BUSINESS, BASIS OF PRESENTATION, AND SIGNIFICANT ACCOUNTING POLICIES | NATURE OF BUSINESS, BASIS OF PRESENTATION, AND SIGNIFICANT ACCOUNTING POLICIES Description of Business —Bunge Limited, a Bermuda company, together with its consolidated subsidiaries and variable interest entities ("VIEs") in which it is considered the primary beneficiary, through which its businesses are conducted (collectively "Bunge" or "the Company"), is a leading global agribusiness and food company. Bunge's common shares trade on the New York Stock Exchange under the ticker symbol "BG." Bunge operates in five reportable segments: Agribusiness, Edible Oil Products, Milling Products, Sugar and Bioenergy, and Fertilizer. Agribusiness —Bunge's Agribusiness segment is an integrated, global business involved in the purchase, storage, transport, processing and sale of agricultural commodities and commodity products. Bunge's agribusiness operations and assets are located in North America, South America, Europe and Asia-Pacific with merchandising and distribution offices throughout the world. Bunge's Agribusiness segment also participates in related financial activities, such as offering trade structured finance, which leverages its international trade flows, providing risk management services to customers by assisting them with managing price exposure to agricultural commodities, trading of foreign exchange and other financial instruments and investing in start-up and high growth companies through its corporate venture capital unit. Edible Oil products —Bunge's Edible Oil Products segment produces and sells edible oil products, such as packaged and bulk oils and fats, shortenings, margarine, mayonnaise and other products derived from the vegetable oil refining process, as well as refines and fractionates palm oil, palm kernel oil, coconut oil, and shea butter. Bunge's edible oil products operations are located in North America, South America, Europe and Asia-Pacific. Milling products —Bunge's Milling Products segment includes wheat, corn and rice milling businesses, which purchase wheat, corn and rice directly from farmers and dealers and process them into milled products for food processors, bakeries, brewers, snack food producers and other customers. Bunge's wheat milling activities are primarily in Mexico and Brazil. Corn and rice milling activities are in the United States and Mexico. Sugar and Bioenergy —Bunge's Sugar and Bioenergy segment includes its sugar and ethanol production in Brazil, and corn-based ethanol production investments. This segment is an integrated business involved in the growing and harvesting of sugarcane primarily from land managed through agricultural partnership agreements and additional sourcing of sugarcane from third parties to be processed at its eight mills in Brazil to produce sugar, ethanol and electricity. The Sugar and Bioenergy segment also sells sugar and ethanol in both Brazilian domestic and export markets. Fertilizer —Bunge's Fertilizer segment operates in Argentina, Uruguay and Paraguay, where it produces, blends and distributes a range of liquid and dry NPK fertilizers, including nitrogen-based liquid and solid phosphate fertilizers. Bunge's operations in Argentina are closely linked to its grain origination activities as it supplies fertilizer to producers who supply the Company with grain. This segment also includes port operations in Brazil. Basis of Presentation —The consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The accounting policies used to prepare these financial statements are the same as those used to prepare the consolidated financial statements in prior years except as described in these notes or for the adoption of new standards as outlined below. Discontinued Operations —In determining whether a disposal group should be presented as discontinued operations, Bunge makes a determination of whether such a group being disposed of comprises a component of the entity, or a group of components of the entity, that represents a strategic shift that has, or will have, a major effect on the Company's operations and financial results. If these determinations are made affirmatively, the results of operations of the group being disposed of (as well as any gain or loss on the disposal transaction) are aggregated for separate presentation apart from the continuing operations of the Company for all periods presented in the consolidated financial statements. Principles of Consolidation —The accompanying consolidated financial statements include the accounts of Bunge, its subsidiaries and VIEs in which Bunge is considered to be the primary beneficiary, and as a result, include the assets, liabilities, revenues and expenses of all entities over which Bunge exercises control. Equity investments in which Bunge has the ability to exercise significant influence but does not control are accounted for by the equity method of accounting. Investments in which Bunge does not exercise significant influence are accounted for at cost, or fair value if that is readily determinable. Intercompany accounts and transactions are eliminated. An enterprise is determined to be the primary beneficiary if it has a controlling financial interest, defined as (a) the power to direct the activities of a VIE that most significantly impact the VIE's business and (b) the obligation to absorb losses of or the right to receive benefits from the VIE that could potentially be significant to the VIE's operations. Performance of that analysis requires the exercise of judgment. The VIE and consolidation assessments are revisited upon the occurrence of relevant reconsideration events. Noncontrolling interests in subsidiaries related to Bunge's ownership interests of less than 100% are reported as Noncontrolling interests or Redeemable noncontrolling interests in the consolidated balance sheets. The noncontrolling ownership interests in Bunge's earnings, net of tax, is reported as Net (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests in the consolidated statements of income. Reclassifications —Certain prior year amounts have been reclassified to conform to current year presentation. Use of Estimates —The preparation of consolidated financial statements in conformity with U.S. GAAP requires Bunge to make estimates and assumptions that affect the amounts reported in the financial statements and notes. Actual results could differ from those estimates. Translation of Foreign Currency Financial Statements —Bunge's reporting currency is the U.S. dollar. The functional currency of the majority of Bunge's foreign subsidiaries is their local currency and, as such, amounts included in the consolidated statements of income, comprehensive income (loss), cash flows and changes in equity are translated using average exchange rates during each period. Assets and liabilities are translated at period-end exchange rates and resulting foreign currency translation adjustments are recorded in the consolidated balance sheets as a component of accumulated other comprehensive income (loss). However, in accordance with U.S. GAAP, if a foreign entity's economy is determined to be highly inflationary, then such foreign entity's financial statements shall be remeasured as if the functional currency were the reporting currency. Bunge has significant operations in Argentina and, up until June 30, 2018, it had utilized the official exchange rate of the Argentine peso published by the Argentine government for its commercial transactions and remeasurement purposes of financial statements. Argentina has experienced negative economic trends, as evidenced by multiple periods of increasing inflation rates, devaluation of the peso , and increasing borrowing rates, requiring the Argentine government to take mitigating actions. During the second quarter of 2018, it was determined that Argentina's economy should be considered highly inflationary, and as such, beginning on July 1, 2018, Bunge's Argentine subsidiaries changed their functional currency to the U.S. Dollar. This change in functional currency did not have a material impact on Bunge's consolidated financial statements. Foreign Currency Transactions —Monetary assets and liabilities denominated in currencies other than the functional currency are remeasured into their respective functional currencies at exchange rates in effect at the balance sheet date. The resulting exchange gain or loss is included in Bunge's consolidated statements of income as foreign exchange gain (loss) unless the remeasurement gain or loss relates to an intercompany transaction that is of a long-term investment nature and for which settlement is not planned or anticipated in the foreseeable future. Gains or losses arising from translation of such transactions are reported as a component of accumulated other comprehensive income (loss) in Bunge's consolidated balance sheets. Cash and Cash Equivalents —Cash and cash equivalents include time deposits and readily marketable securities with original maturity dates of three months or less at the time of acquisition. Trade Accounts Receivable and Secured Advances to Suppliers —Trade accounts receivable and secured advances to suppliers are stated at their historical carrying amounts net of write-offs and allowances for uncollectible accounts. Bunge establishes an allowance for uncollectible trade accounts receivable and secured advances to farmers based on historical experience, farming economics and other market conditions as well as specific customer collection issues. Uncollectible accounts are written off when a settlement is reached for an amount below the outstanding historical balance or when Bunge has determined that collection is unlikely. Secured advances to suppliers bear interest at contractual rates which reflect current market interest rates at the time of the transaction. There are no deferred fees or costs associated with these receivables. As a result, there are no imputed interest amounts to be amortized under the interest method. Interest income is calculated based on the terms of the individual agreements and is recognized on an accrual basis. Bunge follows accounting guidance on the disclosure of the credit quality of financing receivables and the allowance for credit losses, which requires information to be disclosed at disaggregated levels, defined as portfolio segments and classes. Under this guidance, a class of receivables is considered impaired, based on current information and events, if Bunge determines it probable that all amounts due under the original terms of the receivable will not be collected. Recognition of interest income is suspended once the borrower defaults on the originally scheduled delivery of agricultural commodities as the collection of future income is determined not to be probable. No additional interest income is accrued from the point of default until ultimate recovery, at which time amounts collected are credited first against the receivable and then to any unrecognized interest income. Inventories —Readily marketable inventories ("RMI") are agricultural commodity inventories, such as soybeans, soybean meal, soybean oil, corn and wheat that are readily convertible to cash because of their commodity characteristics, widely available markets and international pricing mechanisms. All of Bunge's RMI are valued at fair value. These agricultural commodity inventories have quoted market prices in active markets, may be sold without significant further processing, and have predictable and insignificant disposal costs. Changes in the fair values of RMI are recognized in earnings as a component of cost of goods sold. Inventories other than RMI are stated at the lower of cost or market by inventory product class. Cost is determined using primarily the weighted-average cost method. Derivative Instruments and Hedging Activities —Bunge enters into derivative instruments to manage its exposure to movements associated with agricultural commodity prices, transportation costs, foreign currency exchange rates, interest rates, and energy costs. Bunge's use of these instruments is generally intended to mitigate the exposure to market variables (see Note 15). Additionally, commodity contracts relating to forward sales of commodities in the Company’s Agribusiness segment, such as soybeans, soybean meal and oil, corn and wheat, are accounted for as derivatives at fair value under ASC 815 (see Revenue Recognition below). Generally, derivative instruments are recorded at fair value in other current assets or other current liabilities in Bunge's consolidated balance sheets. Bunge assesses at the inception of a hedge whether any derivatives designated as hedges are highly effective in offsetting changes in the hedged items and, on an ongoing basis, qualitatively monitors whether that assertion is still met. The changes in fair values of derivative instruments designated as fair value hedges, along with the gains or losses on the related hedged items are recorded in earnings in the consolidated statements of income in the same caption as the hedged items. The changes in fair values of derivative instruments that are designated as cash flow hedges are recorded in accumulated other comprehensive income (loss) and are reclassified to earnings when the hedged cash flows affect earnings or when the hedge is no longer considered to be effective. In addition, Bunge may designate certain derivative instruments and non-derivative instruments as net investment hedges to hedge the exposure associated with its equity investments in foreign operations. When using forward derivative contracts as hedging instruments in a net investment hedge, all changes in the fair value of the derivative are recorded as a component of accumulated other comprehensive income (loss) in the consolidated balance sheets. Marketable Securities and Other Short-Term Investments —Bunge classifies its marketable debt securities and short-term investments as available-for-sale, held-to-maturity or trading. Available-for-sale debt securities are reported at fair value with unrealized gains (losses) included in accumulated other comprehensive income (loss). Held-to-maturity debt investments represent financial assets in which Bunge has the intent and ability to hold to maturity. Debt trading securities and all equity securities are recorded at fair value and are bought and held principally for selling them in the near term and therefore held for only a short period of time, with all gains (losses) included in net income (loss). Bunge monitors its held-to-maturity investments for impairment periodically and recognizes an impairment charge when the decline in fair value of an investment is judged to be other than temporary. Recoverable Taxes —Recoverable taxes include value-added taxes paid upon the acquisition of raw materials and taxable services and other transactional taxes, which can be recovered in cash or as compensation against income taxes or other taxes owed by Bunge, primarily in Brazil and Europe. These recoverable tax payments are included in other current assets or other non-current assets based on their expected realization. In cases where Bunge determines that recovery is doubtful, recoverable taxes are reduced by allowances for the estimated unrecoverable amounts. Property, Plant and Equipment, Net —Property, plant and equipment, net is stated at cost less accumulated depreciation and depletion. Major improvements that extend the life, capacity or efficiency or improve the safety of an asset are capitalized, while maintenance and repairs are expensed as incurred. Costs related to legal obligations associated with the future retirement of capitalized assets are capitalized as part of the cost of the related asset. Bunge generally capitalizes eligible costs to acquire or develop internal-use software that are incurred during the application development stage. Interest costs on borrowings during construction/completion periods of major capital projects are also capitalized. Depreciation is computed based on the straight-line method over the estimated useful lives of the assets. Useful lives for property, plant and equipment are as follows: Years Biological assets 5 - 6 Buildings 10 - 50 Machinery and equipment 7 - 25 Furniture, fixtures and other 3 - 20 Included in property, plant and equipment are biological assets, primarily sugarcane, that are stated at cost less accumulated depletion. Depletion is calculated using the estimated units of production based on the remaining useful life of the growing sugarcane. Goodwill —Goodwill represents the cost in excess of the fair value of net assets acquired in a business acquisition. Goodwill is not amortized but is tested annually for impairment or between annual tests if events or circumstances indicate potential impairment. Bunge's annual impairment testing is generally performed during the fourth quarter of its fiscal year. Goodwill is tested for impairment at the reporting unit level, which has been determined to be the Company's operating segments or one level below the operating segments in certain instances (see Note 8). Other Intangible Assets —Finite lived intangible assets include primarily trademarks, customer relationships and lists, port facility usage rights, and patents that are amortized on a straight-line basis over their contractual or legal lives (see Note 9) or their estimated useful lives where such lives are not determined by law or contract. Impairment of Property, Plant and Equipment and Finite Lived Intangible Assets —Bunge reviews its property, plant and equipment and finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. Bunge bases its evaluation of recoverability on such indicators as the nature, future economic benefits, and geographic locations of the assets, historical or future profitability measures, and other external market conditions. If these indicators result in the expected non-recoverability of the carrying amount of an asset or asset group, Bunge evaluates potential impairment using undiscounted estimated future cash flows. If such undiscounted future cash flows during the asset's remaining useful life are below its carrying value, a loss is recognized for the shortfall, measured by the present value of the estimated future cash flows or by third-party appraisals. Bunge records impairments related to property, plant and equipment and finite-lived intangible assets used in the processing of its products in cost of goods sold in its consolidated statements of income. Any impairment of marketing or brand assets is recognized in selling, general and administrative expenses in the consolidated statements of income (see Note 10). Property, plant and equipment and other finite-lived intangible assets to be sold or otherwise disposed of are reported at the lower of carrying amount or fair value less cost to sell. Investments in Affiliates —Bunge has investments in various unconsolidated joint ventures accounted for using the equity method or cost method. Bunge reviews its investments annually or when an event or circumstances indicate that a potential decline in value may be other than temporary. Bunge considers various factors in determining whether to recognize an impairment charge, including the length of time that the fair value of the investment is expected to be below its carrying value, the financial condition, operating performance and near-term prospects of the affiliate and Bunge's intent and ability to hold the investment for a period of time sufficient to allow for recovery of the fair value. (see Note 10 and 11). Revenue Recognition —The Company’s revenue comprises sales from commodity contracts that are accounted for under ASC 815, Derivatives and Hedging (ASC 815) and sales of other products and services that are accounted for under ASC 606, Revenue from Contracts with Customers (ASC 606). Additional information about the Company’s revenues can be found in Note 19. Revenue from commodity contracts (ASC 815) - Revenue from commodity contracts primarily relates to forward sales of commodities in the Company’s Agribusiness segment, such as soybeans, soybean meal and oil, corn and wheat, which are accounted for as derivatives at fair value under ASC 815. These forward sales meet the definition of a derivative under ASC 815 as they have an underlying (e.g. the price of soybeans), a notional amount (e.g. metric tons), no initial net investment and can be net settled since the commodity is readily convertible to cash. Bunge does not apply the normal purchase and normal sale exception available under ASC 815 to these contracts. Certain of the Company’s sales in its Edible Oil Products, Milling Products, and Sugar and Bioenergy segments also qualify as derivatives, primarily sales of commodities like bulk soybean and canola oil, and sugar. Revenue from commodity contracts is recognized in Net sales for the contracted amount when the contracts are settled at a point in time by transferring control of the commodity to the customer, similarly to revenue recognized from contracts with customers under ASC 606. From inception through settlement, these forward sales arrangements are recorded at fair value under ASC 815 with unrealized gains and losses recognized in Cost of goods sold and carried on the consolidated balance sheet as Current assets (see Note 6) or Current liabilities (see Note 13), respectively. Further information about the fair value of these contracts is presented in the Note 15. Revenue from contracts with customers (ASC 606) - Revenue from contracts with customers accounted for under ASC 606 is primarily generated in the Company's Edible Oil Products, Milling Products, Sugar and Bioenergy and Fertilizer segments through the sale of refined edible oil-based products such as packaged vegetable oils, shortenings, margarines and mayonnaise; milled grain products such as wheat flours, bakery mixes, corn-based products, and rice; certain sugar and bioenergy products; and fertilizer products. These sales are accounted for under ASC 606 as these sales arrangements do not meet the aforementioned criteria to be considered derivatives under ASC 815. These revenues are measured based on consideration specified in a contract with a customer, and exclude sales taxes, discounts related to promotional programs and amounts collected on behalf of third parties. The Company recognizes revenue from these contracts at a point in time when it satisfies a performance obligation by transferring control of a product to a customer, generally when legal title and risks and rewards transfer to the customer. Sales terms provide for transfer of title either at the time and point of shipment or at the time and point of delivery and acceptance of the product being sold. In contracts that do not specify the timing of transfer of legal title or transfer of significant risks and rewards of ownership, judgment is required in determining the timing of transfer of control. In such cases, the Company considers standard business practices and the relevant laws and regulations applicable to the transaction to determine when legal title or the significant risks and rewards of ownership are transferred. The transaction price is generally allocated to performance obligations on a relative standalone selling price basis. Standalone selling prices are estimated based on observable data of the Company’s sales of such products and services to similar customers and in similar circumstances on a standalone basis. In assessing whether to allocate variable consideration to a specific part of the contract, the Company considers the nature of the variable payment and whether it relates specifically to its efforts to satisfy a specific part of the contract. Variable consideration is generally known upon satisfaction of the performance obligation. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue producing transaction, that are collected by the Company from a customer, are excluded from revenue. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in Cost of goods sold. Warranties provided to customers are primarily assurance-type warranties on the fitness of purpose and merchantability of the Company’s goods and services. The Company does not provide service-type warranties to customers. Payment is generally due at the time of shipment or delivery, or within a specified time frame after shipment or delivery, which is generally 30-60 days. The Company’s contracts generally provide customers the right to reject any products that do not meet agreed quality specifications. Product returns and refunds are not material. Additionally, the Company recognizes revenue in the Agribusiness segment from ocean freight and port services over time as the related services are performed. Performance obligations are typically completed within a fiscal quarter and any unearned revenue or accrued revenues are not material. Share-Based Compensation —Bunge maintains equity incentive plans for its employees and non-employee directors (see Note 25). Bunge accounts for share-based compensation based on the grant date fair value. Share-based compensation expense is recognized on a straight-line basis over the requisite service period. Income Taxes —Income tax expenses and benefits are recognized based on the tax laws and regulations in the jurisdictions in which Bunge's subsidiaries operate. Under Bermuda law, Bunge is not required to pay taxes in Bermuda on either income or capital gains. The provision for income taxes includes income taxes currently payable and deferred income taxes arising as a result of temporary differences between the carrying amounts of existing assets and liabilities in Bunge's financial statements and their respective tax bases. Deferred tax assets are reduced by valuation allowances if current evidence does not suggest that the deferred tax asset will be realized. Accrued interest and penalties related to unrecognized tax benefits are recognized in income tax (expense) benefit in the consolidated statements of income (see Note 14). Research and Development —Research and development costs are expensed as incurred. Research and development expenses were $15 million , $20 million and $17 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. New Accounting Pronouncements —In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). Under the new provisions, all lessees will be reported on the balance sheet as a right-of-use asset and a liability for the obligation to make payments except for leases with a term of 12 months or less. The standard is effective for Bunge starting January 1, 2019. During 2018, the FASB issued additional implementation guidance and practical expedients in ASU 2018-01, Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842 , ASU 2018-10, Codification Improvements to Topic 842, Leases , ASU 2018-11, Leases (Topic 842): Targeted Improvements , and ASU 2018-20, Leases (Topic 842): Narrow-Scope Improvements for Lessors . Bunge has elected the amended transition approach provided by ASU 2018-11, which allows entities to apply the guidance as of the date of initial application. Upon adoption the Company expects to record new right-of-use assets and lease liabilities associated with operating leases of approximately $930 million and $900 million , respectively. The Company does not expect significant impacts to its consolidated statement of comprehensive income, consolidated statement of cash flows, or consolidated statement of changes in equity and redeemable noncontrolling interests. 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. The adoption of this ASU is not expected to have a material impact on Bunge's consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326) , which introduces a new accounting model, referred to as the current expected credit losses (CECL) model, for estimating credit losses on certain financial instruments and expands the disclosure requirements for estimating such credit losses. Under the new model, an entity is required to estimate the credit losses expected over the life of an exposure (or pool of exposures). The guidance also amends the current impairment model for debt securities classified as available-for-sale securities. The new guidance will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. Bunge is evaluating the impact of this standard on its consolidated financial statements. 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, except for 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 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 |
GLOBAL COMPETITIVENESS PROGRAM
GLOBAL COMPETITIVENESS PROGRAM | 12 Months Ended |
Dec. 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” or "GCP"). When fully implemented, the GCP is expected to reduce the Company’s overhead costs by approximately $250 million annually. The Company identified key elements of its strategy to meet this goal, including adopting a zero-based budgeting process that will target excess costs in specific budget categories and improving efficiency and scalability by simplifying organizational structures, streamlining processes and consolidating back office functions globally. As part of the GCP, Bunge offered a voluntary early retirement program to certain U.S. based salaried employees. Costs associated with the early retirement program are reflected in severance and other employee benefit costs for the year ended December 31, 2017 . In conjunction with the GCP, the Company has implemented other cost reduction and strategic initiatives to enhance the efficiency and performance of the Company’s business. The table below sets forth, by type and segment, the costs recorded for the GCP and other associated initiatives: Year Ended December 31, 2018 2017 (US$ in millions) Severance and Other Employee Benefit Costs Consulting and Professional Services Other Program Costs Total Program Costs Severance and Other Employee Benefit Costs Consulting and Professional Services Other Program Costs Total Program Costs Agribusiness Segment $ 15 $ 18 $ 6 $ 39 $ 39 $ 10 $ — $ 49 Edible Oils Segment 2 4 1 7 12 4 — 16 Milling Segment 1 3 — 4 6 1 — 7 Sugar and Bioenergy Segment 2 4 1 7 1 3 — 4 Fertilizer Segment 2 1 — 3 1 — — 1 Total $ 22 $ 30 $ 8 $ 60 $ 59 $ 18 $ — $ 77 In addition to the above charges, for the year ended December 31, 2017 , $13 million of severance and other employee benefit costs were recorded related to other industrial productivity initiatives. For the year ended December 31, 2018 and 2017 costs recorded above, $9 million and $35 million , respectively, were recorded in Cost of goods sold and $51 million and $55 million , respectively, were recorded in Selling, general and administrative expenses. Bunge's liability associated with the GCP and other associated initiatives is primarily comprised of accruals for severance and other employee benefit costs. The following table sets forth the activity affecting the liability for severance and other employee benefit costs related to the GCP and other associated initiatives, which is recorded in "Other current liabilities" on the consolidated balance sheet. (US$ in millions) Severance and Other Employee Benefit Costs Balance at December 31, 2016 $ — Charges incurred 72 Cash payments (17 ) Pension liability (1) (10 ) Balance at December 31, 2017 $ 45 Charges incurred 22 Cash payments (64 ) Balance at December 31, 2018 $ 3 (1) Included in severance and other employee benefit costs for the year ended December 31, 2017 is approximately $10 million of additional pension expense incurred as part of the voluntary early retirement program. This amount is accrued with the total Bunge pension liability in "Other noncurrent liabilities" in the consolidated balance sheet. 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 charges may be recorded in earnings, including charges related to the disposal of assets or investments. For the year ended December 31, 2018 and 2017 , $39 million and $45 million , respectively, of such charges have been incurred. See Note 10 for additional details of these and other impairment charges. |
BUSINESS ACQUISITIONS AND DISPO
BUSINESS ACQUISITIONS AND DISPOSITIONS | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
BUSINESS ACQUISITIONS AND DISPOSITIONS | BUSINESS ACQUISITIONS AND DISPOSTIONS 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 $980 million in cash. The transaction expands Bunge's value-added capabilities, reach, and scale across core geographies to establish Bunge as a global leader in business-to-business (or "B2B") oil solutions. The Loders portfolio includes a full range of palm and tropical oil-derived products with strength in confectionery, bakery and infant nutrition applications. The following table summarizes the allocation of the fair values of the assets acquired and liabilities assumed at the acquisition date, as included in Bunge's consolidated balance sheet: (US$ in millions) Cash and cash equivalents $ 82 Accounts receivable 146 Inventories 406 Other current assets 66 Property, plant and equipment 411 Intangible assets 464 Goodwill 242 Total assets 1,817 Accounts payable (109 ) Other current liabilities (100 ) Deferred income taxes (143 ) Noncurrent liabilities (35 ) Total liabilities (387 ) Redeemable noncontrolling interest (450 ) Net assets acquired $ 980 The $242 million of goodwill recognized was assigned to the Edible Oil Products segment. The goodwill recognized is primarily attributable to expected synergies and the assembled workforce of Loders. None of the goodwill is expected to be deductible for income tax purposes. The fair value of the identifiable intangible assets was determined primarily using the “income approach,” which requires a forecast of all the expected future cash flows either using the multi-period excess earnings method or the relief-from-royalty method. Some of the more significant assumptions inherent in the development of intangible asset values include: the amount and timing of projected future cash flows, the discount rate selected to measure the risks inherent in the future cash flows, and the assessment of the intangible asset’s life cycle, as well as other factors. The following table provides the details of intangible assets acquired, by major class and weighted average useful life: (US$ in millions) Useful life Customer relationships 15 years $ 265 Intellectual property 10 years 120 Trade names 15 years 51 Favorable leases 38 years 26 Other various 2 Total intangible assets $ 464 The fair value in the opening balance sheet of the 30% redeemable noncontrolling interest in Loders was estimated to be $450 million . The fair value was estimated based on 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 22 for more information related to this redeemable noncontrolling interest. Since March 1, 2018, goodwill decreased by $21 million related to post-closing adjustments to the purchase price. The amounts of revenue and earnings of Loders included in Bunge's consolidated statement of income from the acquisition date to December 31, 2018 is as follows: (US$ in millions) Net sales $ 1,331 Income (loss) from continuing operations $ 3 The following represents the unaudited supplemental pro forma results of the combined entity as if Loders was acquired on January 1, 2017: Year Ended December 31, (US$ in millions) 2018 2017 Net sales $ 46,047 $ 47,588 Income (loss) from continuing operations $ 298 $ 129 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. Supplemental pro forma income from continuing operations for the year ended December 31, 2018 was also adjusted to exclude $19 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. Other acquisitions On January 30, 2018, Bunge acquired Minsa Corporation ("Minsa USA") for $75 million . As a result of the transaction, Bunge acquired two corn mills in the United States. The purchase price allocation resulted in $37 million allocated to property, plant and equipment, $20 million to finite-lived intangible assets, $(1) million to other net assets and liabilities, and $19 million to goodwill, all recorded in the Milling Products segment. On February 28, 2017, Bunge acquired two oilseed processing plants and related operations in the Netherlands and France pursuant to an agreement with Cargill, Inc. Bunge paid a total purchase price of approximately $322 million . The purchase price allocation resulted in $109 million allocated to property, plant and equipment, $103 million to other net assets and liabilities and $7 million to finite-lived intangible assets. The transaction also resulted in $103 million of goodwill allocated to Bunge’s agribusiness operations. Dispositions On November 30, 2016, Bunge closed on the disposition of a 50% ownership interest in its Terminal Fronteira Norte Logistica S.A. port terminal ("TFN") in Brazil to Amaggi Exportaçao E Importaçao Ltda. for total consideration in cash of approximately $145 million , which resulted in a gain of $90 million . As a result of this transaction, Bunge accounted for its remaining 50% interest in the TFN joint venture as an equity method investment. On November 30, 2016, Bunge and Wilmar International Limited ("Wilmar") completed the formation of a joint venture in Vietnam in which Wilmar will invest into Bunge's crush operations in Vietnam, creating a three-party joint venture with Bunge and Wilmar as equal 45% shareholders and Quang Dung, a leading soybean meal distributor in Vietnam, retaining its existing 10% stake in the operations. Bunge received $33 million cash in consideration for its 45% share of interest in Bunge's crush operations. This transaction resulted in a gain of $30 million . As a result of this transaction, Bunge accounted for the joint venture as an equity method investment. |
TRADE STRUCTURED FINANCE PROGRA
TRADE STRUCTURED FINANCE PROGRAM | 12 Months Ended |
Dec. 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 years ended December 31, 2018 and 2017 , net returns from these activities were $30 million and $33 million , respectively, and were included as a reduction of cost of goods sold in the accompanying consolidated statements of income. These activities include programs under which Bunge generally obtains U.S. dollar-denominated letters of credit (“LCs”) (each based on an underlying commodity trade flow) from financial institutions and time deposits denominated in either the local currency of the financial institutions' counterparties or in U.S. dollars, as well as foreign exchange forward contracts, 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 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 December 31, 2018 and 2017 , receivables and trade payables of nil and $1,196 million , respectively, and time deposits and LCs of $4,729 million and $6,321 million , respectively, were presented net on the consolidated balance sheets as the criteria of ASC 210-20, Offsetting , had been met. At December 31, 2018 and 2017 , time deposits, including those presented on a net basis, carried weighted-average interest rates of 3.76% and 2.98% , respectively. During the years ended December 31, 2018 , 2017 and 2016 , total net proceeds from issuances of LCs were $4,657 million , $8,174 million and $7,191 million , respectively. These cash inflows are offset by the related cash outflows resulting from placement of the time deposits and repayment of the LCs. All cash flows related to the programs are included in operating activities in the consolidated statements of cash flows. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories by segment are presented below. Readily marketable inventories (“RMI”) are agricultural commodity inventories, such as soybeans, soybean meal, soybean oil, corn and wheat, carried at fair value because of their commodity characteristics, widely available markets, and international pricing mechanisms. All other inventories are carried at lower of cost or net realizable value. December 31, (US$ in millions) 2018 2017 Agribusiness (1) $ 4,551 $ 4,022 Edible Oil Products (2) 742 458 Milling Products 220 196 Sugar and Bioenergy (3) 280 333 Fertilizer 78 65 Total $ 5,871 $ 5,074 (1) Includes RMI of $4,365 million and $3,865 million at December 31, 2018 and 2017 , respectively. Of these amounts $3,300 million and $2,694 million can be attributable to merchandising activities at December 31, 2018 and 2017 , respectively. (2) Includes RMI of $88 million and $115 million at December 31, 2018 and 2017 , respectively. (3) Includes RMI of $79 million and $76 million at December 31, 2018 and 2017 , respectively. Of these amounts, $74 million and $73 million can be attributable to merchandising activities at December 31, 2018 and 2017 , respectively. |
OTHER CURRENT ASSETS
OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER CURRENT ASSETS | OTHER CURRENT ASSETS Other current assets consist of the following: December 31, (US$ in millions) 2018 2017 Unrealized gains on derivative contracts, at fair value $ 1,071 $ 910 Prepaid commodity contracts (1) 253 282 Secured advances to suppliers, net (2) 257 412 Recoverable taxes, net 500 488 Margin deposits 348 258 Marketable securities, at fair value and other short-term investments 162 213 Deferred purchase price receivable, at fair value (3) 128 107 Income taxes receivable 102 192 Prepaid expenses 165 125 Other 185 240 Total $ 3,171 $ 3,227 (1) Prepaid commodity contracts represent advance payments against contracts for future delivery of specified quantities of agricultural commodities. (2) Bunge provides cash advances to suppliers, primarily Brazilian farmers of soybeans and sugarcane, to finance a portion of the suppliers' production costs. Bunge does not bear any of the costs or operational risks associated with the related growing crops. The advances are largely collateralized by future crops and physical assets of the suppliers, carry a local market interest rate, and settle when the farmer's crop is harvested and sold. The secured advances to farmers are reported net of allowances of $1 million and $1 million at December 31, 2018 and December 31, 2017 , respectively. Interest earned on secured advances to suppliers of $30 million , $44 million and $38 million , for the years ended December 31, 2018 , 2017 and 2016 , respectively, is included in net sales in the consolidated statements of income. (3) Deferred purchase price receivable represents additional credit support for the investment conduits in Bunge's accounts receivables sales program (see Note 18). Marketable Securities and Other Short-Term Investments —Bunge invests in foreign government securities, corporate debt securities, deposits, and other securities. The following is a summary of amounts recorded in the consolidated balance sheets for marketable securities and other short-term investments. December 31, (US$ in millions) 2018 2017 Foreign government securities $ 55 $ 145 Corporate debt securities 91 59 Certificate of deposits/time deposits 15 — Other 1 9 Total marketable securities and other short-term investments $ 162 $ 213 As of December 31, 2018 , total marketable securities and other short-term investments includes $144 million that are recorded at fair value and $18 million as 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 $1 million as other short-term investments. Due to the short-term nature of these investments, carrying value approximates fair value. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consist of the following: December 31, (US$ in millions) 2018 2017 Land $ 403 $ 390 Biological assets 663 709 Buildings 2,139 2,116 Machinery and equipment 5,664 5,601 Furniture, fixtures and other 581 579 Construction in progress 435 517 Gross book value 9,885 9,912 Less: accumulated depreciation and depletion (4,684 ) (4,602 ) Total property, plant and equipment, net $ 5,201 $ 5,310 Bunge's capital expenditures amounted to $490 million , $633 million , and $810 million during the years ended 2018 , 2017 and 2016 , respectively. Included in these capitalized expenditures was capitalized interest on construction in progress of $4 million , $6 million , and $9 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Depreciation and depletion expense was $565 million , $580 million and $517 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | GOODWILL Bunge performs its annual goodwill impairment testing in the fourth quarter of each year. Step 1 of the goodwill impairment test compares the fair value of Bunge's reporting units to which goodwill has been allocated to the carrying values of those reporting units. The fair value of reporting units is determined using a discounted cash flow model with estimates of future cash flows based on internal forecasts of revenues and expenses (the income approach). Estimates based on market earnings multiples of peer companies identified for the reporting unit (the market approach) may also be used, where available. Critical estimates in the determination of fair value under the income approach include, but are not limited to, assumptions about variables such as commodity prices, crop and related throughput and production volumes, profitability, future capital expenditures and discount rates, all of which are subject to a high degree of judgment. Changes in the carrying value of goodwill by segment for the years ended December 31, 2018 and 2017 are as follows: (US$ in millions) Agribusiness Edible Oil Products Milling Products Sugar and Bioenergy Fertilizer Total Goodwill, gross of impairments 128 91 171 514 1 905 Accumulated impairment losses (2 ) (13 ) (3 ) (514 ) — (532 ) Balance, December 31, 2016, net 126 78 168 — 1 373 Goodwill acquired (1) 103 8 — — — 111 Foreign currency translation 22 8 1 — — 31 Goodwill, gross of impairments 253 107 172 514 1 1,047 Accumulated impairment losses (2 ) (13 ) (3 ) (514 ) — (532 ) Balance, December 31, 2017, net 251 94 169 — 1 515 Goodwill acquired (2) — 242 19 — — 261 Foreign currency translation (18 ) (18 ) (13 ) — — (49 ) Goodwill, gross of impairments 235 331 178 514 1 1,259 Accumulated impairment losses (2 ) (13 ) (3 ) (514 ) — (532 ) Balance, December 31, 2018, net $ 233 $ 318 $ 175 $ — $ 1 $ 727 (1) Agribusiness goodwill relates to the 2017 acquisition of two oilseed processing plants and related operations in the Netherlands and France pursuant to an agreement with Cargill. (2) Edible Oils goodwill relates to the Loders acquisition and the Milling Products goodwill relates to the Minsa USA acquisition. See Note 3 for complete business acquisition details. |
OTHER INTANGIBLE ASSETS
OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
OTHER INTANGIBLE ASSETS | OTHER INTANGIBLE ASSETS Other intangible assets are all finite-lived and consist of the following: December 31, (US$ in millions) 2018 2017 Gross carrying amount: Trademarks/brands $ 235 $ 211 Licenses 12 7 Port rights 141 155 Customer Relationships 372 106 Patents 135 23 Other 95 71 990 573 Accumulated amortization: Trademarks/brands (106 ) (109 ) Licenses (10 ) (5 ) Port rights (37 ) (31 ) Customer Relationships (54 ) (34 ) Patents (32 ) (22 ) Other (54 ) (49 ) (293 ) (250 ) Other intangible assets, net $ 697 $ 323 In 2018 , Bunge acquired $282 million of customer relationships, $120 million of patents, $55 million of brands and trademarks and $28 million of other intangible assets, as part of the Loders and Minsa USA acquisitions. Bunge allocated $465 million to the Edible Oils segment and $20 million to the Milling segment. Finite lives of these intangibles range from 10 to 38 years. In 2017 , Bunge acquired $21 million of brands and trademarks, and $11 million other intangible assets. Bunge allocated $24 million to the Edible Oils segment and $8 million to the Agribusiness segment. Finite lives of these intangibles range from 3 to 27 years. Amortization expense was $57 million , $29 million and $31 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. The estimated annual future amortization expense is $60 million for 2019 through 2023. |
IMPAIRMENTS
IMPAIRMENTS | 12 Months Ended |
Dec. 31, 2018 | |
IMPAIRMENTS | |
IMPAIRMENTS | IMPAIRMENTS For the year ended December 31, 2018 , Bunge recorded pre-tax, impairment charges of $18 million , of which $7 million , $10 million and $1 million are recorded in selling, general and administrative expenses, cost of goods sold and other income (expense)—net, respectively, in its consolidated statement of income. These amounts are primarily made up of $10 million relating to the impairment of property, plant and equipment at a port in Poland in the Agribusiness segment, and a $6 million write-off of various machinery and equipment in Brazil, of which $5 million related to the Sugar and Bioenergy segment and $1 million to Agribusiness. For the year ended December 31, 2017 , Bunge recorded pre-tax, impairment charges of $52 million , of which $19 million , $16 million and $17 million are in selling, general and administrative expenses, cost of goods sold and other income (expense)—net, respectively, in its consolidated statement of income. These amounts are primarily made up of $25 million relating to the impairment of property, plant and equipment of feedmills in China, a port in Poland and various machinery and equipment in Brazil primarily in the Agribusiness segment, $17 million that relates to the impairment of two investments in affiliates in the Agribusiness and Sugar and Bioenergy segments, and $7 million that relates to an intangible asset impairment of patents. For the year ended December 31, 2016 , Bunge recorded pre-tax, impairment charges of $87 million , of which $9 million , $6 million and $72 million are in cost of goods sold, selling, general and administrative expenses and other income (expense)—net, respectively, in its consolidated statement of income. These amounts are primarily made up of $44 million that relates to the impairment of an investment in affiliate and other investments in the Sugar and Bioenergy segment, $15 million that relates to the impairment of an investment in affiliate in the Agribusiness segment, $12 million that relates to an intangible asset impairment of aquaculture patents and $9 million that relates to a property, plant and equipment impairment of an Argentina fertilizer plant. The fair values of the assets were determined utilizing discounted future expected cash flows, and in the case of the equity method investment, net market value based on broker quotes of similar assets. |
INVESTMENTS IN AFFILIATES
INVESTMENTS IN AFFILIATES | 12 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENTS IN AFFILIATES | INVESTMENTS IN AFFILIATES Bunge participates in various unconsolidated joint ventures and other investments accounted for using the equity method. Certain equity method investments at December 31, 2018 are described below. Bunge allocates equity in earnings of affiliates to its reporting segments. Agribusiness Agricola Alvorada S.A. - Bunge has a 37% ownership interest in an agribusiness company in Brazil which complements its grain origination business. Complejo Agroindustrial Angostura S.A. ("CAIASA") - Bunge has a 33.3% ownership interest in an oilseed processing facility joint venture with Louis Dreyfus Company and Aceitera General Deheza S.A. ("AGD"), in Paraguay. G3 Global Holding GP Inc. - Bunge has a 25% ownership interest in G3 Global Holding GP Inc., a joint venture with Saudi Agricultural and Livestock Investment Company that operates grain facilities in Canada. Navegações Unidas Tapajós S.A. ("Tapajos") - Bunge has a 50% ownership interest in Tapajos, a joint venture with the Amaggi Exportaçao E Importaçao to operate inland waterway transportation between the municipalities of Itaituba and Barcarena, Brazil. The Tapajos complex is mainly dedicated to exporting soybeans and grains from Brazil. Terminais do Graneis do Guaruja ("TGG") - Bunge has a 57% ownership interest in TGG, a joint venture with Amaggi International Ltd. to operate a port terminal in Santos, Brazil, for the reception, storage and shipment of solid bulk cargoes. Terminal Fronteira Norte Logística S.A.("TFN") - Bunge has a 50% ownership interest in TFN, a joint venture with Amaggi Exportaçao E Importaçao to operate a port terminal in Barcarena, Brazil. The TFN complex is mainly dedicated to exporting soybean and corn from Brazil. Terminal 6 S.A. and Terminal 6 Industrial S.A. - Bunge has a joint venture, Terminal 6 S.A., in Argentina with AGD for the operation of a port facility located in the Santa Fe province of Argentina. Bunge is also a party to a second joint venture with AGD, Terminal 6 Industrial S.A., that operates a crushing facility located adjacent to the port facility. Bunge owns 40% and 50% , respectively, of these joint ventures. Vietnam Agribusiness Holdings Ptd. Ltd. - Bunge and Wilmar International Limited ("Wilmar") formed a joint venture in 2016 in Vietnam in which Wilmar invested into Bunge's crush operations in Vietnam, creating a three-party joint venture with Bunge and Wilmar as equal 45% shareholders and Quang Dung, a leading soybean meal distributor in Vietnam, retaining its existing 10% stake in the operations. Sugar and Bioenergy ProMaiz - Bunge has a 50% ownership interest in a corn wet milling facility joint venture with AGD in Argentina for the production of ethanol. Southwest Iowa Renewable Energy, LLC ("SIRE") - Bunge has a 25% ownership interest in SIRE. The other owners are primarily agricultural producers located in Southwest Iowa. SIRE operates an ethanol plant near Bunge's oilseed processing facility in Council Bluffs, Iowa. |
OTHER NON-CURRENT ASSETS
OTHER NON-CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
Other Assets, Noncurrent [Abstract] | |
OTHER NON-CURRENT ASSETS | OTHER NON-CURRENT ASSETS Other non-current assets consist of the following: December 31, (US$ in millions) 2018 2017 Recoverable taxes, net (1) $ 112 $ 155 Judicial deposits (1) 115 140 Other long-term receivables 8 12 Income taxes receivable (1) 221 307 Long-term investments 91 66 Affiliate loans receivable 29 24 Long-term receivables from farmers in Brazil, net (1) 93 131 Other 154 193 Total $ 823 $ 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 $27 million and $28 million at December 31, 2018 and 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 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 —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. Certain of such long-term receivables from farmers are originally recorded in other current assets as prepaid commodity contracts or secured advances to suppliers (see Note 6) and reclassified to other non-current assets when collection issues with farmers arise and amounts become past due and resolution of matters is expected to take more than one year. The average recorded investment in long-term receivables from farmers in Brazil for the years ended December 31, 2018 and 2017 was $215 million and $253 million , respectively. The table below summarizes Bunge's recorded investment in long-term receivables from farmers in Brazil and the related allowance amounts. December 31, 2018 December 31, 2017 (US$ in millions) Recorded Investment Allowance Recorded Investment Allowance For which an allowance has been provided: Legal collection process (1) $ 105 $ 89 $ 98 $ 91 Renegotiated amounts (2) 17 17 25 22 For which no allowance has been provided: Legal collection process (1) 51 — 76 — Renegotiated amounts (2) 10 — 17 — Other long-term receivables 16 — 28 — Total $ 199 $ 106 $ 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. December 31, (US$ in millions) 2018 2017 Beginning balance $ 113 $ 109 Bad debt provisions 20 19 Recoveries (8 ) (12 ) Write-offs (2 ) (1 ) Foreign currency translation (17 ) (2 ) Ending balance $ 106 $ 113 |
OTHER CURRENT LIABILITIES
OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
OTHER CURRENT LIABILITIES | OTHER CURRENT LIABILITIES Other current liabilities consist of the following: December 31, (US$ in millions) 2018 2017 Accrued liabilities $ 618 $ 606 Unrealized losses on derivative contracts at fair value 1,192 897 Advances on sales 405 406 Other 287 277 Total $ 2,502 $ 2,186 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Bunge operates globally and is subject to the tax laws and regulations of numerous tax jurisdictions and authorities, as well as tax agreements and treaties among these jurisdictions. Bunge's income tax provision is impacted by, among other factors, changes in tax laws, regulations, agreements and treaties, currency exchange rates, and Bunge's profitability in each taxing jurisdiction. Bunge has elected to use the U.S. federal income tax rate to reconcile the actual provision for income taxes. The components of income from operations before income tax are as follows: Year Ended December 31, (US$ in millions) 2018 2017 2016 United States $ 233 $ 21 $ 102 Non-United States 223 209 894 Total $ 456 $ 230 $ 996 The components of the income tax expense (benefit) are: Year Ended December 31, (US$ in millions) 2018 2017 2016 Current: United States $ 33 $ 45 $ (76 ) Non-United States 140 34 170 173 79 94 Deferred: United States 4 20 38 Non-United States 2 (43 ) 88 6 (23 ) 126 Total $ 179 $ 56 $ 220 Reconciliation of the income tax expense (benefit) if computed at the U.S. Federal income tax rate to Bunge's reported income tax expense (benefit) is as follows: Year Ended December 31, (US$ in millions) 2018 2017 2016 Income from operations before income tax $ 456 $ 230 $ 996 Income tax rate 21 % 35 % 35 % Income tax expense at the U.S. Federal tax rate 96 80 348 Adjustments to derive effective tax rate: Foreign earnings taxed at different statutory rates 24 (38 ) (73 ) Valuation allowances 114 43 (44 ) Fiscal incentives (1) (43 ) (42 ) (34 ) Foreign exchange on monetary items 24 (9 ) 5 Tax rate changes 4 (62 ) 4 Non-deductible expenses 8 27 3 Uncertain tax positions 22 (48 ) 89 Deferred balance adjustments — (4 ) — Equity distributions, net (31 ) — — Transition tax (15 ) 105 — Tax exempt investments — (14 ) (12 ) Tax credits (5 ) (8 ) (89 ) Incremental tax on future distributions (26 ) 27 — State taxes 8 (4 ) 5 Other (1 ) 3 18 Income tax (benefit) expense $ 179 $ 56 $ 220 (1) Fiscal incentives predominantly relate to investment incentives in Brazil that are exempt from Brazilian income tax. The primary components of the deferred tax assets and liabilities and the related valuation allowances are as follows: December 31, (US$ in millions) 2018 2017 Deferred income tax assets: Net operating loss carryforwards $ 781 $ 964 Employee benefits 116 106 Tax credit carryforwards 12 13 Inventories — 50 Accrued expenses and other 340 388 Total deferred tax assets 1,249 1,521 Less valuation allowances (766 ) (900 ) Deferred tax assets, net of valuation allowance 483 621 Deferred income tax liabilities: Property, plant and equipment 233 251 Undistributed earnings of affiliates 6 35 Investments 16 17 Intangibles 100 24 Inventories 26 — Total deferred tax liabilities 381 327 Net deferred tax assets $ 102 $ 294 Bunge has provided a deferred tax liability totaling $6 million and $35 million as of December 31, 2018 and 2017, respectively for withholding taxes (and state income taxes) imposed on previously taxed earnings expected to be repatriated in the future. As of December 31, 2018, Bunge has determined it has unremitted earnings that are considered to be indefinitely reinvested of approximately $136 million and accordingly, no provision for income taxes has been made. If these earnings were distributed in the form of dividends or otherwise, Bunge would be subject to income taxes in the form of withholding taxes to the recipient for an amount of approximately $27 million . At December 31, 2018, Bunge's pre-tax loss carryforwards totaled $2,909 million , of which $2,340 million have no expiration, including loss carryforwards of $1,434 million in Brazil. While loss carryforwards in Brazil can be carried forward indefinitely, annual utilization is limited to 30% of taxable income calculated on an entity by entity basis as Brazil tax law does not provide for a consolidated return concept. As a result, realization of these carryforwards may take in excess of five years . The remaining tax loss carryforwards expire at various periods beginning in 2018 through the year 2037. Income Tax Valuation Allowances —Bunge records valuation allowances when current evidence does not suggest that some portion or all of its deferred tax assets will be realized. The ultimate realization of deferred tax assets depends primarily on Bunge's ability to generate sufficient timely future income of the appropriate character in the appropriate taxing jurisdiction. As of December 31, 2018 and 2017, Bunge has recorded valuation allowances of $766 million and $900 million , respectively. The net decrease of $134 million is due to a current year increase of $114 million , offset by a derecognition of $150 million related primarily to certain net operating losses in Brazil, which are considered to be remote, along with foreign currency translation of $98 million . Unrecognized Tax Benefits —ASC Topic 740 requires applying a "more likely than not" threshold to the recognition and de-recognition of tax benefits. Accordingly, Bunge recognizes the amount of tax benefit that has a greater than 50 percent likelihood of being ultimately realized upon settlement. At December 31, 2018 and 2017, respectively, Bunge had recorded unrecognized tax benefits of $120 million and $99 million in other non-current liabilities and $0 million and $7 million in current liabilities in its consolidated balance sheets. During 2018, 2017 and 2016, respectively, Bunge recognized $(4) million , $(9) million and $10 million of interest and penalty charges in income tax expense (benefit) in the consolidated statements of income. At December 31, 2018 and 2017, respectively, Bunge had included accrued interest and penalties of $23 million and $27 million within the related tax liability line in the consolidated balance sheets. A reconciliation of the beginning and ending amount of unrecognized tax benefits follows: (US$ in millions) 2018 2017 2016 Balance at January 1, $ 421 $ 409 $ 51 Additions based on tax positions related to the current year 41 34 9 Additions based on acquisitions — — 2 Additions based on tax positions related to prior years 21 13 374 Reductions for tax positions of prior years (54 ) (43 ) — Settlement or clarification from tax authorities (1 ) — (1 ) Expiration of statute of limitations (19 ) (32 ) (9 ) Foreign currency translation (19 ) 40 (17 ) Balance at December 31, $ 390 $ 421 $ 409 Bunge believes that it is reasonably possible that approximately $40 million of its unrecognized tax benefits may be recognized by the end of 2019 as a result of a lapse of the statute of limitations or resolution with the tax authorities. Bunge, through its subsidiaries, files income tax returns in the United States (federal and various states) and non-United States jurisdictions. The table below reflects the tax years for which Bunge is subject to income tax examinations by tax authorities: Open Tax Years North America 2013 - 2018 South America 2007 - 2018 Europe 2006 - 2018 Asia-Pacific 2004 - 2018 As of December 31, 2018, Bunge's Brazilian subsidiaries have received income tax and penalty assessments through 2014 of approximately 4,284 million Brazilian reais (approximately $1,106 million ), plus applicable interest on the outstanding amount. Bunge has recorded unrecognized tax benefits related to these assessments of 34 million Brazilian reais (approximately $9 million ) as of December 31, 2018. In addition, as of December 31, 2018, Bunge's Argentine subsidiary had received income tax assessments relating to 2006 through 2009 of approximately 1,276 million Argentine pesos (approximately $34 million ), plus applicable interest on the outstanding amount of approximately 4,246 million Argentine pesos (approximately $113 million ). Bunge anticipates that the tax authorities will examine fiscal years 2010-2013, although no notice has been rendered to Bunge's Argentine subsidiary. Management, in consultation with external legal advisors, believes that it is more likely than not that Bunge will prevail on the proposed assessments (with exception of unrecognized tax benefit discussed above) in Brazil and Argentina and intends to vigorously defend its position against these assessments. Bunge made cash income tax payments, net of refunds received, of $(1) million , $89 million and $144 million during the years ended December 31, 2018, 2017, and 2016 respectively. 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. As a result of the Tax Act and in accordance with SEC Staff Accounting Bulletin 118 (“SAB 118”), Bunge recognized a provisional tax expense of $60 million in the fourth quarter of 2017 related to the one-time transition tax (“Transition Tax”), the revaluation of deferred tax assets and liabilities, and the accrual of incremental withholding taxes on future repatriation of earnings to the United States. In the fourth quarter of 2018, Bunge completed its analysis of the impact of the Tax Act in conjunction with filing of its 2017 U.S. income tax return, assessment of additional documentation to determine the Transition Tax, and analysis of U.S. Treasury guidance on the Tax Act. As a result, Bunge recorded a tax benefit of $26 million , primarily related to the ability to utilize additional foreign tax credits to offset future repatriation of earnings to the United States. Bunge has elected to account for any Global Intangible Low-Taxed Income (“GILTI”) inclusion as a current period expense when incurred. |
FINANCIAL INSTRUMENTS AND FAIR
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 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 4 for trade structured finance program, Note 18 for deferred purchase price receivable related to sales of trade receivables, Note 12 for long-term receivables from farmers in Brazil, net and other long-term investments, Note 17 for long-term debt, Note 10 for other non-recurring fair value measurements and Note 19 for employee benefit plans. Bunge's financial instruments also include derivative instruments and marketable securities, which are stated at fair value. Fair value is the expected price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Bunge determines the fair values of its readily marketable inventories, derivatives, and certain other assets based on the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs are inputs based on market data obtained from sources independent of Bunge that reflect the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are inputs that are developed based on the best information available in circumstances that reflect Bunge's own assumptions based on market data and on assumptions that market participants would use in pricing the asset or liability. The fair value standard describes three levels within its hierarchy that may be used to measure fair value. Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 1 assets and liabilities include exchange traded derivative contracts. Level 2: Observable inputs, including Level 1 prices (adjusted), quoted prices for similar assets or liabilities, quoted prices in markets that are less active than traded exchanges and other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include readily marketable inventories and over-the-counter ("OTC") commodity purchase and sale contracts and other OTC derivatives whose value is determined using pricing models with inputs that are generally based on exchange traded prices, adjusted for location specific inputs that are primarily observable in the market or can be derived principally from or corroborated by observable market data. Level 3: Unobservable inputs that are supported by little or no market activity and that are a significant component of the fair value of the assets or liabilities. In evaluating the significance of fair value inputs, Bunge considers items that individually or when aggregated with other inputs, generally represent more than 10% of the fair value of the assets or liabilities. For such identified inputs, judgments are required when evaluating both quantitative and qualitative factors in the determination of significance for purposes of fair value level classification and disclosure. Level 3 assets and liabilities include assets and liabilities whose value is determined using proprietary pricing models, discounted cash flow methodologies or similar techniques; as well as, assets and liabilities for which the determination of fair value requires significant management judgment or estimation. Bunge believes a change in these inputs would not result in a significant change in the fair values. The majority of Bunge's exchange traded agricultural commodity futures are settled daily generally through its clearing subsidiary and, therefore, such futures are not included in the table below. Assets and liabilities are classified in their entirety based on the lowest level of input that is a significant component of the fair value measurement. The lowest level of input is considered Level 3. The following table sets forth, by level, Bunge’s assets and liabilities that were accounted for at fair value on a recurring basis. Fair Value Measurements at Reporting Date December 31, 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 5) $ — $ 4,286 $ 246 $ 4,532 $ — $ 3,691 $ 365 $ 4,056 Unrealized gain on designated derivative contracts (1) : Interest rate — 4 — 4 — — — — Foreign exchange — 6 — 6 — 18 — 18 Unrealized gain on undesignated derivative contracts (1) : Interest rate — 2 — 2 — 4 — 4 Foreign exchange — 467 — 467 — 321 — 321 Commodities 128 407 18 553 115 389 19 523 Freight 6 — 6 12 18 — 8 26 Energy 30 — — 30 18 — — 18 Deferred purchase price receivable (Note 18) — 128 — 128 — 107 — 107 Other (2) 67 98 — 165 15 234 — 249 Total assets $ 231 $ 5,398 $ 270 $ 5,899 $ 166 $ 4,764 $ 392 $ 5,322 Liabilities: Trade accounts payable (3) $ — $ 394 $ 47 $ 441 $ — $ 467 $ 116 $ 583 Unrealized loss on designated derivative contracts (4) : Interest rate — 33 — 33 — 31 — 31 Foreign exchange — 32 — 32 — 2 — 2 Unrealized loss on undesignated derivative contracts (4) : Interest rate — 9 — 9 — 1 — 1 Foreign exchange — 467 — 467 1 430 — 431 Commodities 152 446 23 621 141 271 20 432 Freight 13 — 6 19 15 — 3 18 Energy 43 — 1 44 9 2 2 13 Total liabilities $ 208 $ 1,381 $ 77 $ 1,666 $ 166 $ 1,204 $ 141 $ 1,511 (1) Unrealized gains on designated and undesignated derivative contracts are generally included in other current assets. There were $3 million and $0 million included in other non-current assets at December 31, 2018 and December 31, 2017 , respectively. (2) Other includes the fair values of marketable securities and investments in other current assets and other non-current assets. (3) These payables are hybrid financial instruments for which Bunge has elected the fair value option. (4) Unrealized losses on designated and undesignated derivative contracts are generally included in other current liabilities. There were $33 million and $31 million included in other non-current liabilities at December 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. In addition, except for 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 may be made based on Bunge's estimate of the potential loss in the event of counterparty non-performance. Bunge did not have significant adjustments related to non-performance by counterparties at December 31, 2018 or 2017 . Exchange traded or cleared derivative contracts are classified in Level 1, thus transfers of assets and liabilities into and/or out of Level 1 occur infrequently. Transfers into Level 1 would generally only be expected to occur when an exchange cleared derivative contract historically valued using a valuation model as the result of a lack of observable inputs becomes sufficiently observable, resulting in the valuation price being essentially the exchange traded price. There were no significant transfers into or out of Level 1 during the periods presented. Readily marketable inventories —RMI reported at fair value are valued based on commodity futures exchange quotations, broker or dealer quotations, or market transactions in either listed or OTC markets with appropriate adjustments for differences in local markets where Bunge's inventories are located. In such cases, the inventory is classified within Level 2. Certain inventories may utilize significant unobservable data related to local market adjustments to determine fair value. In such cases, the inventory is classified as Level 3. If Bunge used different methods or factors to determine fair values, amounts reported as unrealized gains and losses on derivative contracts and RMI at fair value in the consolidated balance sheets and consolidated statements of income could differ. Additionally, if market conditions change subsequent to the reporting date, amounts reported in future periods as unrealized gains and losses on derivative contracts and RMI at fair value in the consolidated balance sheets and consolidated statements of income could differ. Level 3 Measurements —Transfers in and/or out of Level 3 represent existing assets or liabilities that were either previously categorized as a higher level for which the inputs to the model became unobservable or assets and liabilities that were previously classified as Level 3 for which the lowest significant input became observable during the period. Bunge's policy regarding the timing of transfers between levels is to record the transfers at the beginning of the reporting period. Level 3 Derivatives —Level 3 derivative instruments utilize both market observable and unobservable inputs within the fair value measurements. These inputs include commodity prices, price volatility, interest rates, volumes and locations. 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 years ended December 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. Year Ended December 31, 2018 (US$ in millions) Derivatives, Net (1) Readily Marketable Inventories (1) Trade Accounts Receivable/ Payable, Net (1) Total Balance, January 1, 2018 $ 2 $ 365 $ (116 ) $ 251 Total gains and losses (realized/unrealized) included in cost of goods sold (11 ) 144 26 159 Purchases 12 1,770 (294 ) 1,488 Sales — (2,585 ) — (2,585 ) Issuances (11 ) — — (11 ) Settlements 13 — 434 447 Transfers into Level 3 (10 ) 774 (79 ) 685 Transfers out of Level 3 (1 ) (222 ) (18 ) (241 ) Balance, December 31, 2018 $ (6 ) $ 246 $ (47 ) $ 193 1) Derivatives, net, readily marketable inventories, and trade accounts receivable/payable net, include gains/(losses) of $(24) million , $72 million and $0 million , respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at December 31, 2018 . Year Ended December 31, 2017 (US$ in millions) Derivatives, Net (1) Readily Marketable Inventories (1) Trade Accounts Receivable/ Payable, Net (1) Total Balance, January 1, 2017 $ (51 ) $ 237 $ (44 ) $ 142 Total gains and losses (realized/unrealized) included in cost of goods sold (31 ) 142 13 124 Purchases 11 1,551 (469 ) 1,093 Sales — (2,041 ) — (2,041 ) Issuances (7 ) — — (7 ) Settlements 67 — 441 508 Transfers into Level 3 (9 ) 701 (59 ) 633 Transfers out of Level 3 22 (225 ) 2 (201 ) Balance, December 31, 2017 $ 2 $ 365 $ (116 ) $ 251 1) Derivatives, net, readily marketable inventories, and trade accounts receivable/payable net, includes gains/(losses) of $1 million , $11 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 December 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 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. The net impact of hedge accounting for interest rate swaps is recognized in interest expense. Fair value hedges of currency risk - For certain borrowings that are not in the functional currency of the reporting entity issuing 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 foreign exchange gains (losses), whereas, the coupon on the swap goes to interest expense. Changes in basis risk are held in accumulated other comprehensive income (loss) until realized through the coupon. Cash flow hedges of currency risk - Bunge manages currency risk on certain forecasted purchases and sales, and selling, general and administrative expenses 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, cost of goods sold or selling, general and administrative expenses. These hedges mature at various times through June 2019 . Of the amount currently in accumulated other comprehensive income (loss), $2 million is expected to be reclassified to earnings in the next twelve months. Net investment hedges - Bunge hedges the currency risk of certain of its foreign subsidiaries with currency forwards and intercompany loans for which the currency risk is remeasured through accumulated other comprehensive income (loss). For currency forwards, the forward method is used. The change in the value of the forward is classified in accumulated other comprehensive income (loss) until the transaction affects earnings. The table below provides information about the balance sheet values of hedged items and the notional amount of derivatives used in hedging strategies. December 31, (US$ in millions) 2018 2017 Hedging instrument type: Fair value hedges of interest rate risk Carrying value of hedged debt $ 2,229 $ 2,071 Cumulative adjustment to long-term debt from application of hedge accounting $ (29 ) $ (31 ) Interest rate swap - notional amount $ 2,266 $ 2,109 Fair value hedges of currency risk Carrying value of hedged debt $ 312 $ — Cumulative adjustment to long-term debt from application of hedge accounting $ — $ — Cross currency swap - notional amount $ 313 $ — Cash flow hedges of currency risk Foreign currency forward - notional amount $ 50 $ 237 Net investment hedges Foreign currency forward - notional amount $ 1,888 $ 1,000 Carrying value of non-derivative hedging instrument $ 912 $ 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 the Company's financial instrument portfolios and debt issuances. The impact of changes in fair value of these instruments is primarily presented in Interest expense. Currency derivatives are used to hedge the balance sheet and commercial exposures that arise from the Company's global operations. The impact of changes in fair value of these instruments is presented in Cost of goods sold when hedging commercial exposures and Foreign exchange gains (losses) when hedging monetary exposures. Agricultural commodity derivatives are used to manage the Company's inventory and forward purchase and sales contracts. Contracts to purchase agricultural commodities generally relate to current or future crop years for delivery periods quoted by regulated commodity exchanges. Contracts for the sale of agricultural commodities generally do not extend beyond one future crop cycle. The impact of changes in fair value of these instruments is presented in Cost of goods sold. Bunge uses derivative instruments referred to as forward freight agreements ("FFA") and FFA options to hedge portions of its current and anticipated ocean freight costs. The impact of changes in fair value of these instruments is presented in Cost of goods sold. 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 Company may also enter into other derivatives, including credit default swaps and equity derivatives to manage exposure to credit risk and broader macroeconomic risks, respectively. The impact of changes in fair value of these instruments is presented in Cost of goods sold. The table below summarizes the volume of economic derivatives as of December 31, 2018 and 2017 . For those contracts traded bilaterally through the over-the-counter markets (e.g., forwards, forward rate agreements ("FRA") and swaps), the gross position is provided. For exchange traded (e.g., futures, FFAs and options) and cleared positions (e.g., energy swaps), the net position is provided. December 31, 2018 2017 Unit of Measure (US$ in millions) Long (Short) Long (Short) Interest rate Swaps $ 3,349 $ (111 ) $ 2,317 $ (1,236 ) $ Notional Futures $ — $ — $ — $ (2 ) $ Notional FRAs $ 139 $ (149 ) $ 375 $ — $ Notional Currency Forwards $ 13,713 $ (13,701 ) $ 9,784 $ (9,668 ) $ Notional Swaps $ 127 $ (535 ) $ 192 $ (148 ) $ Notional Futures $ — $ (16 ) $ — $ (58 ) $ Notional Options $ 869 $ (919 ) $ 521 $ (471 ) Delta Agricultural commodities Forwards 25,523,840 (29,314,930 ) 23,438,004 (30,055,331 ) Metric Tons Swaps — (9,908,728 ) 65,045 (5,279,181 ) Metric Tons Futures 4,136,525 — 4,520,267 — Metric Tons Options 718,709 — 828,296 — Metric Tons Ocean freight FFA — (90 ) — (3,617 ) Hire Days FFA options 302 — 892 — Hire Days Natural gas Swaps 1,205,687 — 3,519,668 — MMBtus Futures 2,268,190 — 2,691,350 — MMBtus Energy - other Forwards 5,536,290 — 5,534,290 — Metric Tons Futures — (29,367 ) 1,394 — Metric Tons Swaps 188,800 — 223,600 — Metric Tons Other Swaps and futures $ 52 $ — $ — $ — $ Notional The Effect of Derivative Instruments and Hedge Accounting on the Consolidated Statements of Income The table below summarizes the net effect of derivative instruments and hedge accounting on the consolidated statements of income for the years ended December 31, 2018 , 2017 and 2016 . Gain (Loss) Recognized in Income on Derivative Instruments Year Ended December 31, (US$ in millions) 2018 2017 2016 Income statement classification Type of derivative Net sales Hedge accounting Foreign currency $ (2 ) $ — $ — Cost of goods sold Hedge accounting Foreign currency $ 1 $ — $ — Economic hedges Foreign currency (220 ) (1 ) 772 Commodities 506 676 (618 ) Other (1) (25 ) 9 27 Total Cost of goods sold $ 262 $ 684 $ 181 Interest expense Hedge accounting Interest rate $ (6 ) $ 13 $ 5 Economic hedges Interest rate (1 ) — (4 ) Total Interest expense $ (7 ) $ 13 $ 1 Foreign exchange gains (losses) Hedge accounting Foreign currency $ (10 ) $ — $ — Economic hedges Foreign currency $ 34 $ 22 $ 267 Total Foreign exchange gains (losses) $ 24 $ 22 $ 267 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 ) $ 14 $ 48 Gains and losses on derivatives used as net investment hedges included in other comprehensive income (loss) during the period $ 48 $ (8 ) $ (394 ) Foreign currency gains and losses on intercompany loans used as net investment hedges included in other comprehensive income (loss) during the period $ 52 $ (111 ) $ 41 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 — 37 16 Total $ — $ 37 $ 16 (1) Other includes the results from freight, energy and other derivatives. |
SHORT-TERM DEBT AND CREDIT FACI
SHORT-TERM DEBT AND CREDIT FACILITIES | 12 Months Ended |
Dec. 31, 2018 | |
Short-term Debt [Abstract] | |
SHORT-TERM DEBT AND CREDIT FACILITIES | SHORT-TERM DEBT AND CREDIT FACILITIES Bunge's short-term borrowings are typically sourced from various banking institutions and the U.S. commercial paper market. Bunge also borrows from time to time in local currencies in various foreign jurisdictions. Interest expense includes facility commitment fees, amortization of deferred financing costs, and charges on certain lending transactions, including certain intercompany loans and foreign currency conversions in Brazil. The weighted-average interest rate on short-term borrowings at December 31, 2018 and 2017 was 6.98% and 9.84% , respectively. December 31, (US$ in millions) 2018 2017 Lines of credit: Unsecured, variable interest rates from 1.60% to 66.00% $ 750 $ 304 Total short-term debt (1) $ 750 $ 304 (1) Includes $136 million and $179 million of local currency borrowings in certain Central and Eastern European, South American, African and Asia-Pacific countries at a weighted average interest rate of 23.61% and 15.03% as of December 31, 2018 and December 31, 2017 , respectively. Bunge's commercial paper program is supported by an identical amount of committed back up bank credit lines (the "Liquidity Facility") provided by banks that are rated at least A-1 by Standard & Poor's Financial Services and P-1 by Moody's Investors Service. On December 14, 2018, Bunge amended its unsecured $600 million five -year Liquidity Facility with certain lenders party thereto and extended its term to December 14, 2023. The cost of borrowing under the Liquidity Facility would typically be higher than the cost of issuing under Bunge's commercial paper program. At December 31, 2018 and December 31, 2017 , Bunge had no borrowings outstanding under the commercial paper program and no borrowings under the Liquidity Facility. In addition to the committed facilities discussed above, from time-to-time, Bunge Limited and/or its financing subsidiaries enter into uncommitted bilateral short-term credit lines as necessary based on its financing requirements. At December 31, 2018 and 2017 , there were no borrowings outstanding under these bilateral short-term credit lines. Loans under such credit lines are non-callable by the respective lenders. In addition, Bunge's operating companies had $750 million in short-term borrowings outstanding from local bank lines of credit at December 31, 2018 to support working capital requirements. |
LONG-TERM DEBT AND CREDIT FACIL
LONG-TERM DEBT AND CREDIT FACILITIES | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT AND CREDIT FACILITIES | LONG-TERM DEBT AND CREDIT FACILITIES Long-term debt obligations are summarized below. December 31, (US$ in millions) 2018 2017 Revolving credit facility expiring 2020 $ 500 $ — Term loan due 2019—three-month Yen LIBOR plus 0.75% (Tranche A) $ 258 $ 253 Term loan due 2019—fixed Yen interest rate of 0.96% (Tranche B) 54 53 Term loan due 2019—three-month LIBOR plus 1.30% (Tranche C) 85 85 8.50% Senior Notes due 2019 — 599 3.50% Senior Notes due 2020 498 497 3.00% Senior Notes due 2022 397 396 1.85% Senior Notes due 2023—Euro 916 960 4.35% Senior Notes due 2024 595 — 3.25% Senior Notes due 2026 695 694 3.75% Senior Notes due 2027 594 593 Other 30 45 Subtotal 4,622 4,175 Less: Current portion of long-term debt (419 ) (15 ) Total long-term debt (1) $ 4,203 $ 4,160 (1) Includes secured debt of $17 million and $24 million at December 31, 2018 and December 31, 2017 , respectively. The fair values of long-term debt, including current portion are calculated based on interest rates currently available on comparable maturities to companies with credit standing similar to that of Bunge. The carrying amounts and fair values of long-term debt are as follows: December 31, 2018 December 31, 2017 (US$ in millions) Carrying Value Fair Value (Level 2) Carrying Value Fair Value (Level 2) Long-term debt, including current portion $ 4,622 $ 4,584 $ 4,175 $ 4,337 On December 14, 2018, Bunge entered into an unsecured $1,100 million five -year syndicated revolving credit agreement (the "Credit Agreement") with certain lenders party thereto maturing December 14, 2023. Bunge has the option to request an extension of the maturity date of the Credit Agreement for two additional one -year periods, subject to the consent of the lenders. The Credit Agreement replaced the then existing $1,100 million five -year revolving credit agreement, dated as of November 20, 2014, which was terminated by the Company in accordance with its terms. Borrowings under the Credit Agreement will bear interest at LIBOR plus a margin, which will vary from 1.00% to 1.625% , based on the credit ratings of Bunge's senior long-term unsecured debt ("Rating Level"). Amounts under the Credit Agreement that remain undrawn are subject to a commitment fee at rates ranging from 0.09% to 0.225% , varying based on the Rating Level. Bunge may, from time-to-time, request one or more of the existing lenders or new lenders to increase the total commitments under the Credit Agreement by up to $200 million pursuant to an accordion provision. At December 31, 2018, Bunge had no borrowings outstanding under the Credit Agreement. On September 10, 2018, Bunge completed the sale and issuance of $600 million aggregate principal amount of 4.35% unsecured senior notes due March 15, 2024. The senior notes are fully and unconditionally guaranteed by Bunge Limited. Interest on the senior notes is payable semi-annually in arrears in March and September of each year, commencing on March 15, 2019. The net proceeds of the offering were approximately $594 million after deducting underwriting commissions and estimated offering expenses. Bunge used the net proceeds from this offering, together with available cash, to fund a tender offer and redemption of the $600 million aggregate principal amount of 8.50% senior notes due 2019, which resulted in a loss on extinguishment of debt of approximately $24 million related to make-whole payments. On May 1, 2018, in connection with Bunge's previously announced strategy to reduce its exposure to the sugar milling business in Brazil, Bunge entered into an unsecured $700 million , five -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 facility provides financial flexibility to fund the 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. Bunge had no borrowings outstanding under the revolving credit facility at December 31, 2018. At December 31, 2018 , Bunge had $4,515 million of unused and available borrowing capacity under its committed long-term credit facilities with a number of lending institutions. Certain land, property, equipment and investments in consolidated subsidiaries having a net carrying value of approximately $52 million at December 31, 2018 have been mortgaged or otherwise collateralized against long-term debt of $26 million at December 31, 2018 . Principal Maturities —Principal maturities of long-term debt at December 31, 2018 are as follows: (US$ in millions) 2019 $ 423 2020 1,017 2021 13 2022 407 2023 921 Thereafter 1,891 Total (1) $ 4,672 (1) Excludes components of long-term debt attributable to fair value hedge accounting of $29 million and deferred financing fees and unamortized premiums of $21 million . Bunge's credit facilities and certain senior notes require it to comply with specified financial covenants related to minimum net worth, minimum current ratio, a maximum debt to capitalization ratio, and limitations on secured indebtedness. Bunge was in compliance with these covenants at December 31, 2018 . During the years ended December 31, 2018 , 2017 and 2016 , Bunge paid interest, net of interest capitalized, of $306 million , $236 million and $234 million , respectively. |
TRADE RECEIVABLES SECURITIZATIO
TRADE RECEIVABLES SECURITIZATION PROGRAM | 12 Months Ended |
Dec. 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 (collectively, the "Purchasers") that provides for funding of up to $700 million against receivables sold into the Program. The Program is designed to enhance Bunge's financial flexibility by providing an additional source of liquidity for its operations. In connection with the Program, certain of Bunge's U.S. and non-U.S. subsidiaries that originate trade receivables may sell eligible receivables in their entirety on a revolving basis to a consolidated bankruptcy remote special purpose entity, Bunge Securitization B.V. ("BSBV") formed under the laws of the Netherlands. BSBV in turn sells such purchased trade receivables to the administrative agent (acting on behalf of the Purchasers) pursuant to a receivables transfer agreement. In connection with these sales of accounts receivable, Bunge receives a portion of the proceeds up front and an additional amount upon the collection of the underlying receivables, which is expected to be generally between 10% and 15% of the aggregate amount of receivables sold through the Program. Koninklijke Bunge B.V., a wholly owned subsidiary of Bunge, acts as master servicer, responsible for servicing and collecting the accounts receivable for the Program. The Program terminates on May 26, 2021 . The trade receivables sold under the program are subject to specified eligibility criteria, including eligible currencies, and country and obligor concentration limits. On February 19, 2019, Bunge exercised a portion of the $300 million accordion feature under this program to increase the aggregate size of the facility by $100 million to an aggregate of $800 million . December 31, (US$ in millions) 2018 2017 Receivables sold which were derecognized from Bunge's balance sheet $ 826 $ 810 Deferred purchase price included in other current assets $ 128 $ 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. Years Ended December 31, (US$ in millions) 2018 2017 2016 Gross receivables sold $ 9,803 $ 10,022 $ 9,405 Proceeds received in cash related to transfer of receivables $ 9,484 $ 9,734 $ 9,197 Cash collections from customers on receivables previously sold $ 9,173 $ 9,659 $ 9,176 Discounts related to gross receivables sold included in SG&A $ 14 $ 9 $ 6 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. Bunge's risk of loss following the sale of the trade receivables is limited to the deferred purchase price (the "DPP") and is included in other current assets in the consolidated balance sheets (see Note 6). The DPP will be repaid in cash as receivables are collected, generally within 30 days . Delinquencies and credit losses on trade receivables sold under the Program during the years ended December 31, 2018 , 2017 and 2016 were insignificant. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Certain United States, Canadian, European, Asian and Brazilian-based subsidiaries of Bunge sponsor defined benefit pension plans covering substantially all employees of the subsidiaries. The plans provide benefits based primarily on participants' salary and length of service. The funding policies for Bunge's defined benefit pension plans are determined in accordance with statutory funding requirements. The most significant defined benefit plan is in the United States. Certain United States and Brazilian-based subsidiaries of Bunge have benefit plans to provide certain postretirement healthcare benefits to eligible retired employees of those subsidiaries. The plans require minimum retiree contributions and define the maximum amount the subsidiaries will be obligated to pay under the plans. Bunge's policy is to fund these costs as they become payable. Plan amendments and pension liability adjustment - In 2018, Bunge's Swiss defined benefit pension plan changed its local pension provider, resulting in a change to its conversion rate. This plan amendment resulted in a $13 million increase in benefit obligation as of year ended December 31, 2018 . On September 19, 2017, Bunge approved changes to certain U.S. defined benefit pension plans. These changes freeze the Plans for future benefit accruals effective January 1, 2023, and these Plans are closed for participation for employees hired on or after January 1, 2018. As a result, Bunge recognized a curtailment gain associated with the Plans’ freeze and as such, the projected benefit obligations for these Plans were remeasured as of September 30, 2017. At September 30, 2017, a $31 million pension curtailment gain and $18 million remeasurement loss were recognized and recorded in other comprehensive income. In addition, in 2017, the Company offered a voluntary early retirement program to qualifying U.S. based salaried employees. The employees that accepted the offer received an enhanced retirement benefit in the defined benefit pension plans. The Company incurred $10 million of additional defined benefit expenses relating to the program as of December 31, 2017, which are reflected in the tables below. Cost of Benefit Plans - Service cost is recognized in a period determined as the actuarial present value of benefits attributed by the pension benefit formula to services rendered by employees during that period. Interest cost is the amount recognized in a period determined as the increase in the projected benefit obligation due to the passage of time. The expected return on plan assets is determined based on the expected long-term rate of return on plan assets and the market-related value of plan assets. Amortization of net loss represents the recognition in net periodic cost over several periods of amounts previously recognized in other comprehensive income. The components of net periodic benefit costs are as follows for defined benefit pension plans and postretirement benefit plans: Pension Benefits December 31, Postretirement Benefits December 31, (US$ in millions) 2018 2017 2016 2018 2017 2016 Service cost $ 39 $ 33 $ 32 $ — $ — $ — Interest cost 40 36 35 5 8 7 Expected return on plan assets (57 ) (46 ) (44 ) — — — Amortization of prior service cost 1 — — — — — Amortization of net loss 9 10 10 — — — Curtailment (gain) (2 ) — — — — — Settlement loss recognized 4 — — — — — Special termination benefit — 9 1 — — — Net periodic benefit costs $ 34 $ 42 $ 34 $ 5 $ 8 $ 7 Assumptions used in Pension Calculations - At December 31, 2018 , for measurement purposes related to postretirement benefit plans, an 7.7% annual rate of increase in the per capita cost of covered healthcare benefits was assumed for 2018 , decreasing to 7.4% by 2038, remaining at that level thereafter. At December 31, 2017 , for measurement purposes related to postretirement benefit plans, an 8.4% annual rate of increase in the per capita cost of covered healthcare benefits was assumed for 2017 , decreasing to 8.1% by 2038, remaining at that level thereafter. A one-percentage point change in assumed healthcare cost trend rates would have the following effects: (US$ in millions) One-percentage point increase One-percentage point decrease Effect on total service and interest cost $ — $ — Effect on postretirement benefit obligation $ 4 $ (4 ) The weighted-average actuarial assumptions used in determining the benefit obligation under the defined benefit pension and postretirement benefit plans are as follows: Pension Benefits December 31, Postretirement Benefits December 31, 2018 2017 2018 2017 Discount rate 3.7 % 3.4 % 8.3 % 9.0 % Increase in future compensation levels 3.2 % 3.2 % N/A N/A The weighted-average actuarial assumptions used in determining the net periodic benefit cost under the defined benefit pension and postretirement benefit plans are as follows: Pension Benefits December 31, Postretirement Benefits December 31, 2018 2017 2016 2018 2017 2016 Discount rate 3.4 % 4.0 % 4.2 % 9.0 % 10.8 % 11.4 % Expected long-term rate of return on assets 6.0 % 6.2 % 6.4 % N/A N/A N/A Increase in future compensation levels 3.2 % 3.2 % 3.3 % N/A N/A N/A The sponsoring subsidiaries select the expected long-term rate of return on assets in consultation with their investment advisors and actuaries. These rates are intended to reflect the average rates of earnings expected on the funds invested or to be invested to provide required plan benefits. The plans are assumed to continue in effect as long as assets are expected to be invested. In estimating the expected long-term rate of return on assets, appropriate consideration is given to historical performance for the major asset classes held, or anticipated to be held, by the applicable plan trusts and to current forecasts of future rates of return for those asset classes. Cash flows and expenses are taken into consideration to the extent that the expected returns would be affected by them. As assets are generally held in qualified trusts, anticipated returns are not reduced for taxes. Plan Transfers In and Out - As a result of the March 1, 2018 Loders acquisition, there was a transfer into Bunge's defined benefit pension plan resulting in a $211 million increase in benefit obligation and $181 million increase in the fair value of plan assets during the year ended December 31, 2018 . There were no significant transfers into or out of Bunge's employee benefit plans during the year ended December 31, 2017 . For the year ended December 31, 2018 , there were settlements to Bunge's Swiss defined benefit pension plan as a result of the GCP, resulting in a $28 million decrease in benefit obligation and changing to a defined contribution plan, resulting in a $27 million decrease in benefit obligation. There were no significant settlements in Bunge's employee benefit plans during the year ended December 31, 2017 . Pension Benefit Obligations and Funded Status - The following table sets forth in aggregate the changes in the defined benefit pension and postretirement benefit plans' benefit obligations, assets and funded status at December 31, 2018 and 2017 . A measurement date of December 31 was used for all plans. Pension Benefits December 31, Postretirement Benefits December 31, (US$ in millions) 2018 2017 2018 2017 Change in benefit obligations: Benefit obligation at the beginning of year $ 1,073 $ 941 $ 67 $ 74 Service cost 39 33 — — Interest cost 40 36 5 8 Plan amendments 16 1 — — Plan curtailments (2 ) (32 ) — — Special termination benefits — 9 — — Actuarial (gain) loss, net (84 ) 100 1 (11 ) Employee contributions 3 6 1 1 Net transfers in (out) 213 3 — — Plan settlements (55 ) — — — Benefits paid (40 ) (35 ) (7 ) (4 ) Expenses paid (3 ) (4 ) — — Impact of foreign exchange rates (8 ) 15 (8 ) (1 ) Benefit obligation at the end of year $ 1,192 $ 1,073 $ 59 $ 67 Change in plan assets: Fair value of plan assets at the beginning of year $ 896 $ 740 $ — $ — Actual return on plan assets (36 ) 102 — — Employer contributions 18 77 6 3 Employee contributions 3 6 1 1 Net transfers in (out) 181 — — — Plan settlements (55 ) — — — Benefits paid (40 ) (35 ) (7 ) (4 ) Expenses paid (3 ) (4 ) — — Impact of foreign exchange rates (7 ) 10 — — Fair value of plan assets at the end of year $ 957 $ 896 $ — $ — Funded (unfunded) status and net amounts recognized: Plan assets (less than) in excess of benefit obligation $ (235 ) $ (177 ) $ (59 ) $ (67 ) Net (liability) asset recognized in the balance sheet $ (235 ) $ (177 ) $ (59 ) $ (67 ) Amounts recognized in the balance sheet consist of: Non-current assets $ 11 $ 18 $ — $ — Current liabilities (6 ) (6 ) (6 ) (7 ) Non-current liabilities (240 ) (189 ) (53 ) (60 ) Net liability recognized $ (235 ) $ (177 ) $ (59 ) $ (67 ) Included in accumulated other comprehensive income (loss) for pension benefits at December 31, 2018 are the following amounts that have not yet been recognized in net periodic benefit costs: unrecognized prior service credit of $10 million ( $8 million , net of tax) and unrecognized actuarial loss of $188 million ( $142 million , net of tax). Included in accumulated other comprehensive income (loss) for postretirement healthcare benefits at December 31, 2018 are the following amounts that have not yet been recognized in net periodic benefit costs: unrecognized prior service credit of $1 million ( $1 million , net of tax), and unrecognized actuarial loss of $3 million ( $2 million , net of tax). Bunge has aggregated certain defined benefit pension plans with projected benefit obligations in excess of fair value of plan assets with pension plans that have fair value of plan assets in excess of projected benefit obligations. The following table provides aggregated information about pension plans with a projected benefit obligation in excess of plan assets: Pension Benefits December 31, (US$ in millions) 2018 2017 Projected benefit obligation $ 1,073 $ 937 Fair value of plan assets $ 827 $ 742 The accumulated benefit obligation for the defined pension benefit plans, respectively, was $1,122 million at December 31, 2018 and $1,011 million at December 31, 2017 . The following table summarizes information relating to aggregated defined benefit pension plans with an accumulated benefit obligation in excess of plan assets: Pension Benefits December 31, (US$ in millions) 2018 2017 Projected benefit obligation $ 978 $ 827 Accumulated benefit obligation $ 938 $ 789 Fair value of plan assets $ 758 $ 651 Pension Benefit Plan Assets —The objectives of the plans' trust funds are to sufficiently diversify plan assets to maintain a reasonable level of risk without imprudently sacrificing returns, with a target asset allocation of approximately 60% fixed income securities and approximately 40% equities. Bunge implements its investment strategy through a combination of indexed mutual funds and a proprietary portfolio of fixed income securities. Bunge's policy is not to invest plan assets in Bunge Limited shares. Plan investments are stated at fair value. For a further definition of fair value and the associated fair value levels, refer to Note 15 . The fair values of Bunge's defined benefit pension plans' assets at the measurement date, by category, are as follows: December 31, 2018 (US$ in millions) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash $ 16 $ 16 $ — $ — Equities: Mutual funds (1) 363 362 1 — Fixed income securities: Mutual funds (2) 536 498 38 — Others (3) 42 6 20 16 Total $ 957 $ 882 $ 59 $ 16 December 31, 2017 (US$ in millions) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash $ 31 $ 31 $ — $ — Equities: Mutual funds (1) 470 423 47 — Fixed income securities: Mutual funds (2) 357 315 42 — Others (3) 38 7 26 5 Total $ 896 $ 776 $ 115 $ 5 (1) This category represents a portfolio of equity investments comprised of equity index funds that invest in U.S. equities and non-U.S. equities. The U.S. equities are comprised of investments focusing on large, mid and small cap companies and non-U.S. equities are comprised of international, emerging markets, and real estate investment trusts. (2) This category represents a portfolio of fixed income investments in mutual funds comprised of investment grade U.S. government bonds and notes, foreign government bonds, and corporate bonds from diverse industries. (3) This category represents a portfolio consisting of a mixture of hedge funds, real estate and insurance contracts. Bunge expects to contribute $20 million and $6 million , respectively, to its defined benefit pension and postretirement benefit plans in 2019 . The following benefit payments, which reflect future service as appropriate, are expected to be paid related to defined benefit pension and postretirement benefit plans: (US$ in millions) Pension Benefit Payments Postretirement Benefit Payments 2019 $ 50 $ 6 2020 51 6 2021 52 6 2022 54 6 2023 55 6 2024 and onwards 305 28 Employee Defined Contribution Plans —Bunge also makes contributions to qualified defined contribution plans for eligible employees. Contributions to these plans amounted to $10 million , $11 million and $11 million during the years ended December 31, 2018 , 2017 and 2016 , respectively. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 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 $20 million at December 31, 2018 , which matures in June 2019, with interest based on CDI, the average overnight interbank loan 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 $7 million at December 31, 2018 , which matures on March 31, 2023, with an interest rate based on LIBOR. In addition, Bunge held notes receivables from other related parties totaling $3 million at December 31, 2018 . Notes payable - Bunge holds a note payable with Bunge SCF Grain LLC with a carrying value of $6 million at December 31, 2018 . This note matures on March 31, 2023 with a variable interest rate of 2.35% , as of December 31, 2018, and is included in other long-term liabilities in Bunge’s consolidated balance sheet. Other —Bunge purchased soybeans and other agricultural commodity products from certain of its unconsolidated investees and other related parties, totaling $1,696 million , $920 million and $1,054 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Bunge also sold soybeans and other agricultural commodity products to certain of its unconsolidated investees and other related parties, totaling $341 million , $508 million and $326 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. In addition, Bunge receives services from and provides services to its unconsolidated investees, including tolling, port services, administrative support, and other services. During the years ended December 31, 2018 , 2017 and 2016 , Bunge received services totaling $136 million , $155 million and $96 million , respectively, and provided services of $14 million , $11 million and $7 million , respectively. Bunge believes all transaction values to be similar to those that would be conducted with third parties. At December 31, 2018 and 2017 , Bunge had approximately $28 million and $16 million of receivables from these related parties included in trade accounts receivable in the consolidated balance sheets as of those dates. In addition, at December 31, 2018 and 2017 , Bunge had approximately $26 million and $36 million of payables to these related parties included in trade accounts payable in the consolidated balance sheets as of those dates. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Bunge is party to claims and lawsuits, primarily non-income tax and labor claims in Brazil and non-income tax claims in Argentina, arising in the normal course of business. Bunge is also involved from time to time in various contract, antitrust, environmental litigation and remediation and other litigation, claims, government investigations and legal proceedings. The ability to predict the ultimate outcome of such matters involves judgments, estimates and inherent uncertainties. Bunge records liabilities related to its general claims and lawsuits when the exposure item becomes probable and can be reasonably estimated. Bunge management does not expect these matters to have a material adverse effect on Bunge’s financial condition, results of operations or liquidity. However, these matters are subject to inherent uncertainties and there exists the remote possibility of an adverse impact on Bunge’s position in the period the uncertainties are resolved whereby the settlement of the identified contingencies could exceed the amount of provisions included in the consolidated balance sheets. Included in other non-current liabilities at December 31, 2018 and 2017 are the following amounts related to these matters: December 31, (US$ in millions) 2018 2017 Non-income tax claims $ 94 $ 161 Labor claims 78 92 Civil and other claims 95 103 Total $ 267 $ 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 endorsed the past incentives granted by the Brazilian states of CONFAZ. 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 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. In the fourth quarter of 2018, Bunge participated in an amnesty program in the Brazilian state of Rio Grande do Sul, which resulted in a discounted settlement of certain cases. As a result, the liability was 244 million Brazilian reais (approximately $63 million ) plus applicable interest at December 31, 2018 . As of December 31, 2018 , the Brazilian federal and state authorities have concluded examinations of the ICMS and PIS COFINS tax returns and have issued the outstanding claims (including applicable interest and penalties) as of: December 31, (US$ in millions) Years Examined 2018 2017 ICMS 1990 to Present $ 264 $ 281 PIS/COFINS 2004 through 2015 $ 231 $ 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. During 2011, Bunge’s subsidiary in Argentina paid $112 million of accrued export tax obligations under protest and preserved its rights with respect to such payment. In 2012, the Argentine tax authorities further assessed interest on these payments, which as of December 31, 2018 , totaled approximately $292 million . In 2012, the Argentine government suspended Bunge’s Argentine subsidiary from a registry of grain traders. While the suspension has not had a material adverse effect on Bunge’s business in Argentina, these actions have resulted in additional administrative requirements and increased logistical costs on domestic grain shipments within Argentina. Bunge is challenging these actions in the Argentine courts. Labor claims — The labor claims are principally claims against Bunge’s Brazilian subsidiaries. The labor claims primarily relate to dismissals, severance, health and safety, salary adjustments and supplementary retirement benefits. Civil and other claims — The civil and other claims relate to various disputes with third parties, including suppliers and customers. During the first quarter of 2017 , Bunge received a notice from the Brazilian Administrative Council for Economic Defense ("CADE") initiating an administrative proceeding against its Brazilian subsidiary and two of its employees, certain of its former employees, several other companies in the Brazilian wheat milling industry, and others for alleged anticompetitive activities in the north and northeast of Brazil. Additionally, in the second quarter of 2018, Bunge received a notification from CADE that it has extended the scope of an existing administrative proceeding relating to alleged anticompetitive practices in the Rio Grande port in Brazil to include certain of Bunge's Brazilian subsidiaries and certain former employees of those subsidiaries. Bunge is defending against these actions; however, the proceedings are at an early stage and Bunge cannot, at this time, reasonably predict the ultimate outcome of the proceedings or sanctions, if any, which may be imposed. Guarantees —Bunge has issued or was a party to the following guarantees at December 31, 2018 : (US$ in millions) Maximum Potential Future Payments Unconsolidated affiliates guarantee (1)(2) $ 288 Residual value guarantee (3) 269 Total $ 557 (1) Bunge has 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 through 2034 . There are no recourse provisions or collateral that would enable Bunge to recover any amounts paid under these guarantees. In addition, a Bunge subsidiary has guaranteed the obligations of two of its affiliates and in connection therewith has secured its guarantee obligations through a pledge of one of its affiliate's shares plus loans receivable from the affiliate to the financial institutions in the event that the guaranteed obligations are enforced. Based on the amounts drawn under such debt facilities at December 31, 2018 , Bunge's potential liability was $141 million , and it has recorded a $17 million obligation related to these guarantees. (2) Bunge has issued guarantees to certain third parties related to performance of its unconsolidated affiliates. The terms of the guarantees are equal to the completion date of a port terminal 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 December 31, 2018 , Bunge's maximum potential future payments under these guarantees was $70 million , and no obligation has been recorded related to these guarantees. (3) Bunge has 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 December 31, 2018 , Bunge's recorded obligation related to these guarantees was $1 million . Bunge Limited has provided a Guaranty to the Director of the Illinois Department of Agriculture as Trustee for Bunge North America, Inc. ("BNA"), an indirect wholly-owned subsidiary, which guarantees all amounts due and owing by BNA, to grain producers and/or depositors in the State of Illinois who have delivered commodities to BNA's Illinois facilities. In addition, Bunge Limited has provided full and unconditional parent level guarantees of the outstanding indebtedness under certain credit facilities entered into and senior notes issued by its subsidiaries. At December 31, 2018 , Bunge's consolidated balance sheet includes debt with a carrying amount of $5,011 million related to these guarantees. This debt includes the senior notes issued by two of Bunge's 100% owned finance subsidiaries, Bunge Limited Finance Corp. and Bunge Finance Europe B.V. There are largely no restrictions on the ability of Bunge Limited Finance Corp. and Bunge Finance Europe B.V. or any other Bunge subsidiary to transfer funds to Bunge Limited. Freight Supply Agreements —In the ordinary course of business, Bunge enters into time charter agreements for the use of ocean freight vessels and freight service on railroad lines for the purpose of transporting agricultural commodities. In addition, Bunge sells the right to use these ocean freight vessels when excess freight capacity is available. These agreements generally range from two months to approximately seven years , in the case of ocean freight vessels, depending on market conditions, and approximately eight years in the case of railroad services. Future minimum payment obligations due under these agreements as of December 31, 2018 are as follows: (US$ in millions) Ocean Freight Vessels Railroad Services Minimum Payment Obligations 2019 $ 172 $ 42 $ 214 2020 and 2021 176 55 231 2022 and 2023 121 55 176 2024 and thereafter 37 28 65 Total $ 506 $ 180 $ 686 Actual amounts paid under these contracts may differ due to the variable components of these agreements and the amount of income earned on the sales of excess capacity. The agreements for the freight service on railroad lines require a minimum monthly payment regardless of the actual level of freight services used by Bunge. The costs of Bunge's freight supply agreements are typically passed through to the customers as a component of the prices charged for its products. Also in the ordinary course of business, Bunge enters into re-let agreements related to ocean freight vessels. Such re-let agreements are similar to sub-leases. Bunge received approximately $155 million during the year ended December 31, 2018 under such re-let agreements. In reviewing the impact of ASC 606, the Company also considered the impact of the adoption of ASU 2016-02, Leases (Topic 842), which is effective January 1, 2019, on the hiring of the vessels and has concluded that these contracts are leases in the scope of the guidance (see Note 1 for further information on the impact of the adoption of new accounting pronouncements). Commitments —At December 31, 2018 , Bunge had approximately $225 million of purchase commitments related to its inventories, $70 million of power supply contracts and $57 million of contractual commitments related to construction in progress. |
REDEEMABLE NONCONTROLLING INTER
REDEEMABLE NONCONTROLLING INTERESTS | 12 Months Ended |
Dec. 31, 2018 | |
Redeemable Noncontrolling Interest, Equity, Carrying Amount [Abstract] | |
REDEEMABLE NONCONTROLLING INTERESTS | REDEEMABLE NONCONTROLLING INTERESTS 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 time frame. The Company classifies these redeemable equity securities outside of permanent stockholders’ equity as the equity securities are redeemable at the option of the holder. The carrying amount of redeemable noncontrolling interests is the greater of: (i) the initial carrying amount, increased or decreased for the noncontrolling interests’ share of net income or loss, equity capital contributions and distributions or (ii) the redemption value. Any resulting increases in the redemption amount, in excess of the initial carrying amount, increased or decreased for the noncontrolling interests’ share of net income or loss, equity capital contributions 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. In July 2012, Bunge and Nutre Farming B.V. entered into a joint venture agreement whereby Bunge acquired a 55% interest in a newly formed oilseed processing venture in its agribusiness segment in Eastern Europe. Bunge consolidates the venture in its consolidated financial statements. In conjunction with the formation of the venture, Bunge entered into an agreement to acquire the remaining 45% interest at either Bunge's or the noncontrolling interest holder's option in the future. The exercise date and price of the option were reasonably determinable. As a result, Bunge had classified the noncontrolling interest as redeemable noncontrolling interest in its consolidated balance sheet as of December 31, 2012. During the second quarter of 2016, Bunge exercised its call option for the remaining 45% interest in the joint venture for approximately $39 million . The transaction was concluded in September 2016. |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
EQUITY | EQUITY Share Repurchase Program —In May 2015, Bunge established a new program for the repurchase of up to $500 million of Bunge's issued and outstanding common shares. The program has no expiration date. Bunge did not repurchase any common shares during the year ended December 31, 2018 . Total repurchases under the program from its inception in May 2015 through December 31, 2018 were 4,707,440 shares for $300 million . Cumulative Convertible Perpetual Preference Shares —Bunge has 6,899,683 , 4.875% cumulative convertible perpetual preference shares (convertible preference shares), par value $0.01 outstanding at December 31, 2018 . Each convertible preference share has an initial liquidation preference of $100 per share plus accumulated unpaid dividends up to a maximum of an additional $25 per share. As a result of adjustments made to the initial conversion price because cash dividends paid on Bunge Limited's common shares exceeded certain specified thresholds, each convertible preference share is convertible at any time at the holder's option into approximately 1.1918 common shares based on a conversion price of $83.9096 per convertible preference share, subject in each case to certain specified anti-dilution adjustments (which represents 8,223,042 Bunge Limited common shares at December 31, 2018 ). If the closing market price of Bunge's common shares equals or exceeds 130% of the conversion price of the convertible preference shares, for 20 trading days within any period of 30 consecutive trading days (including the last trading day of such period), Bunge may elect to cause all outstanding convertible preference shares to be automatically converted into the number of common shares that are issuable at the conversion price. The convertible preference shares are not redeemable by Bunge at any time. The convertible preference shares accrue dividends at an annual rate of 4.875% . Dividends are cumulative from the date of issuance and are payable, quarterly in arrears, on each March 1, June 1, September 1 and December 1, when, as and if declared by Bunge's Board of Directors. The dividends may be paid in cash, common shares or a combination thereof. Accumulated but unpaid dividends on the convertible preference shares will not bear interest. In each of the years ended December 31, 2018 , 2017 and 2016 , Bunge recorded $34 million of dividends, paid in cash, on its convertible preference shares. Pension liability adjustment - On September 19, 2017 , Bunge approved changes to certain U.S. defined benefit pension plans (“Plans”). The changes were announced on September 26, 2017 to all U.S. employees of Bunge. These changes will freeze the Plans for future benefit accruals effective January 1, 2023 , and these Plans will be closed for participation for employees hired on or after January 1, 2018 . As a result, Bunge recognized a curtailment gain associated with the Plans’ freeze and as such, the projected benefit obligations for these Plans were remeasured as of September 30, 2017 . At September 30, 2017 , a $31 million pension curtailment gain and $18 million remeasurement loss were recognized and recorded in other comprehensive income. Accumulated Other Comprehensive Income (Loss) Attributable to Bunge —The following table summarizes the balances of related after-tax components of accumulated other comprehensive income (loss) attributable to Bunge: (US$ in millions) Foreign Exchange Translation Adjustment (1) 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, 2016 $ (6,443 ) $ 214 (134 ) 3 (6,360 ) Other comprehensive income (loss) before reclassifications 709 (305 ) (11 ) — 393 Amount reclassified from accumulated other comprehensive income — (11 ) — — (11 ) Net-current period other comprehensive income (loss) 709 (316 ) (11 ) — 382 Balance, December 31, 2016 (5,734 ) $ (102 ) (145 ) 3 (5,978 ) Other comprehensive income (loss) before reclassifications 187 (105 ) 5 2 89 Amount reclassified from accumulated other comprehensive income (loss) — (37 ) — (4 ) (41 ) Net-current period other comprehensive income (loss) 187 (142 ) 5 (2 ) 48 Balance, December 31, 2017 (5,547 ) $ (244 ) (140 ) 1 (5,930 ) Other comprehensive income (loss) before reclassifications (1,119 ) 99 (16 ) — (1,036 ) Amount reclassified from accumulated other comprehensive income (loss) 29 — 3 (1 ) 31 Net-current period other comprehensive income (loss) (1,090 ) 99 (13 ) (1 ) (1,005 ) Balance, December 31, 2018 $ (6,637 ) $ (145 ) $ (153 ) $ — $ (6,935 ) (1) Bunge has significant operating subsidiaries in Brazil, Argentina, North America, Europe and Asia-Pacific. The functional currency of Bunge's subsidiaries is generally the local currency. During the second quarter of 2018 , it was determined that Argentina's economy should be considered highly inflationary, and as such, beginning on July 1, 2018 , Bunge's Argentine subsidiaries changed their functional currency from Argentine peso to the U.S. Dollar. The assets and liabilities of these subsidiaries are translated into U.S. dollars from local currency at month-end exchange rates, and the resulting foreign currency translation gains (losses) are recorded in the consolidated balance sheets as a component of accumulated other comprehensive income (loss). This change in functional currency did not have a material impact on Bunge's consolidated financial statements. |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 12 Months Ended |
Dec. 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: Year Ended December 31, (US$ in millions, except for share data) 2018 2017 2016 Income from continuing operations $ 277 $ 174 $ 776 Net (income) attributable to noncontrolling interests (20 ) (14 ) (22 ) Income from continuing operations attributable to Bunge 257 160 754 Other redeemable obligations (1) — — (2 ) Convertible preference share dividends (34 ) (34 ) (34 ) Income (loss) from discontinued operations, net of tax 10 — (9 ) Net income available to Bunge common shareholders - Basic 233 126 709 Add back convertible preference share dividends — — 34 Net income available to Bunge common shareholders - Diluted $ 233 $ 126 $ 743 Weighted-average number of common shares outstanding: Basic 140,968,980 140,365,549 139,845,124 Effect of dilutive shares: —stock options and awards (2) 734,803 899,528 441,521 —convertible preference shares (3) — — 7,939,830 Diluted 141,703,783 141,265,077 148,226,475 Basic earnings (loss) per common share: Net income (loss) from continuing operations $ 1.58 $ 0.90 $ 5.13 Net income (loss) from discontinued operations 0.07 — (0.06 ) Net income (loss) attributable to Bunge common shareholders—basic $ 1.65 $ 0.90 $ 5.07 Diluted earnings (loss) per common share: Net income (loss) from continuing operations $ 1.57 $ 0.89 $ 5.07 Net income (loss) from discontinued operations 0.07 — (0.06 ) Net income (loss) attributable to Bunge common shareholders—diluted $ 1.64 $ 0.89 $ 5.01 (1) Accretion of redeemable noncontrolling interest of $0 million , $0 million and $2 million for the years ended December 31, 2018 , 2017 and 2016 , respectively, related to a non-fair value variable put arrangement whereby the noncontrolling interest holder may have required Bunge to purchase the remaining shares of an oilseed processing operation in Central and Eastern Europe. As further discussed in Note 22, during the second quarter of 2016 Bunge exercised its call option for their 45% interest in the joint venture for approximately $39 million . The transaction concluded in September 2016 . Accretion for the respective periods includes the effect of losses incurred by the operations for the year ended December 31, 2016 . (2) The weighted-average common shares outstanding-diluted excludes approximately 4 million , 4 million and 4 million stock options and contingently issuable restricted stock units, which were not dilutive and not included in the computation of earnings per share for the years ended December 31, 2018 , 2017 and 2016 , respectively. (3) Weighted-average common share outstanding-diluted for the years ended December 31, 2018 and 2017 excludes approximately 8 million weighted-average common shares that are issuable upon conversion of the convertible preference shares that were not dilutive and not included in the weighted-average number of common shares outstanding, respectively. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION For the years ended December 31, 2018 , 2017 and 2016 , Bunge recognized approximately $46 million , $29 million and $44 million , respectively, of total compensation expense for awards classified as equity awards related to its stock option and restricted stock unit awards. In 2018 and 2017 , Bunge granted equity awards under the 2016 Equity Incentive Plan (the "2016 EIP"), a shareholder approved plan. Under the 2016 EIP, the Compensation Committee of Bunge's Board of Directors may grant equity based awards to officers, employees, consultants and independent contractors in the form of stock options, restricted stock units (performance based or time-vested) or other equity based awards. The 2016 EIP replaced the 2009 Equity Incentive Plan (the "2009 EIP"), also a shareholder approved plan, under which, beginning May 26, 2016, no further awards may be granted. Shares issued under the 2016 EIP may consist, in whole or in part, of authorized and unissued shares, treasury shares or shares reacquired by the Company in any manner, or a combination thereof. (i) Stock Option Awards—Options to purchase Bunge Limited common shares are granted with an exercise price equal to the grant date fair market value of Bunge common stock, vest over service periods that generally range from one to three years , and expire 10 years from the date of grant. Vesting may be accelerated in certain circumstances as provided in the plans or associated award agreements. Grant date fair value is recognized as compensation expense on a straight-line basis for option grants. (ii) Restricted Stock Units—Restricted stock units ("RSUs") give recipients the right to receive shares of Bunge common stock upon the lapse of related restrictions determined by the Compensation Committee. Restrictions on RSUs may be based on continued service by the recipient through the designated term and/or based on the achievement of certain performance targets. These targets may be financial or market-based, and the number of units actually earned varies based on the level of achievement of predefined goals. Compensation expense is recognized on a straight-line basis over the vesting period for restricted stock units. RSUs generally vest over periods ranging from one to three years . Vesting may be accelerated under certain circumstances as defined in the plans or associated award agreements. RSUs are generally settled in shares of Bunge common stock upon satisfaction of the applicable vesting terms. Where share settlement may be prohibited under local law, RSUs are settled in cash. At the time of settlement, a participant holding a vested restricted stock unit will also be entitled to receive corresponding accrued dividend equivalent share payments. Bunge has also established the Bunge Limited 2017 Non-Employee Directors' Equity Incentive Plan (the "2017 Directors' Plan"), a shareholder approved plan. Under the 2017 Directors' Plan, the Compensation Committee may grant equity based awards to non-employee directors of Bunge Limited. Awards may consist of restricted stock, restricted stock units, deferred restricted stock units and non-statutory stock options. The 2017 Directors' Plan replaced the 2007 Non-Employee Directors Equity Incentive Plan, under which no further awards may be granted. Restricted Stock Units—Restricted stock units granted to non-employee directors generally vest on the first anniversary of the grant date, provided the director continues to serve on the Board until such date, and are settled in shares of Bunge Limited common stock. At the time of settlement, a participant holding a vested restricted stock unit is also entitled to receive corresponding accrued dividend equivalent share payments. The fair value of each stock option granted under any of Bunge's equity incentive plans is estimated on the grant date using the Black Scholes Merton option pricing model. Assumptions for the prior three years are noted in the following table. The expected volatility of Bunge's common shares is a weighted average of historical volatility calculated using the daily closing price of Bunge's shares up to the grant date and implied volatilities on open option contracts on Bunge's stock as of the grant date. Bunge uses historical employee exercise behavior for valuation purposes. The expected option term of granted options represents the period of time that the granted options are expected to be outstanding based on historical experience and giving consideration for the contractual terms, vesting periods and expectations of future employee behavior. The risk-free interest rate is based on U.S. Treasury zero-coupon bonds with a term equal to the expected option term of the respective grants and grant dates. December 31, Assumptions: 2018 2017 2016 Expected option term (in years) 6.31 5.86 5.67 Expected dividend yield 2.44 % 2.09 % 3.04 % Expected volatility 25.57 % 24.85 % 26.06 % Risk-free interest rate 2.75 % 2.21 % 1.41 % A summary of option activity under the plans for the year ended December 31, 2018 is presented below: Options Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at January 1, 2018 6,216,570 $ 71.88 Granted 718,500 $ 75.99 Exercised (222,844 ) $ 54.79 Forfeited or expired (589,922 ) $ 92.47 Outstanding at December 31, 2018 6,122,304 $ 70.93 5.52 $ 4 Exercisable at December 31, 2018 4,347,213 $ 70.34 4.38 $ 3 The weighted-average grant date fair value of options granted during the years ended December 31, 2018 , 2017 and 2016 was $16.75 , $17.13 and $8.86 , respectively. The total intrinsic value of options exercised during the years ended December 31, 2018 , 2017 and 2016 was approximately $4 million , $11 million and $1 million , respectively. The excess tax benefit classified as a financing cash flow was not significant for any of the periods presented. At December 31, 2018 , $12 million of total unrecognized compensation cost related to non-vested stock options granted under the equity incentive plan is expected to be recognized over the next two years . A summary of restricted stock unit activity under Bunge's plans for the year ended December 31, 2018 is presented below. Restricted Stock Units Shares Weighted-Average Grant-Date Fair Value Restricted stock units at January 1, 2018 1,704,004 $ 66.81 Granted 823,435 75.06 Vested/issued (2) (314,267 ) 75.93 Forfeited/cancelled (2) (339,879 ) 69.65 Restricted stock units at December 31, 2018 (1) 1,873,293 $ 69.29 (1) Includes accrued unvested dividends, which are payable in Bunge's common shares upon vesting of underlying restricted stock units. (2) During the year ended December 31, 2018 , Bunge issued 241,055 common shares, net of common shares withheld to cover taxes, including related common shares representing accrued dividends, with a weighted-average fair value of $75.93 per share. During the year ended December 31, 2018 , 87,284 performance-based restricted stock units vested. During the year ended December 31, 2018 , Bunge canceled approximately 78,710 shares related to performance-based restricted stock unit awards that did not vest due to non-achievement of performance targets. The fair value of RSU awards is determined based on the market value of the Company's shares on the grant date. The weighted-average grant date fair value of restricted stock units granted during the years ended December 31, 2018 , 2017 and 2016 was $75.06 , $76.79 and $51.42 , respectively. At December 31, 2018 , there was approximately $45 million of total unrecognized compensation cost related to restricted stock units granted under the equity incentive plans, which is expected to be recognized over the next two years . The total fair value of restricted stock units vested during the year ended December 31, 2018 was approximately $24 million . Common Shares Reserved for Share-Based Awards —The 2017 Directors' Plan and the 2016 EIP provide that 120,000 and 5,800,000 common shares, respectively, are to be reserved for grants of stock options, restricted stock units and other awards under the plans. At December 31, 2018 , 76,163 and 2,706,665 common shares were available for future grants under the 2017 Directors' Plan and the 2016 EIP, respectively. No shares are currently available for grant under any other Bunge Limited equity incentive plan. |
LEASE COMMITMENTS
LEASE COMMITMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
LEASE COMMITMENTS | LEASE COMMITMENTS Bunge routinely leases storage facilities, transportation equipment and office facilities under operating leases. Future minimum lease payments by year and in the aggregate under non-cancelable operating leases with initial term of one year or more at December 31, 2018 are as follows: (US$ in millions) Minimum 2019 $ 134 2020 107 2021 84 2022 58 2023 48 Thereafter 126 Total (1) $ 557 (1) Minimum lease payments have not been reduced by minimum sublease income receipts of $43 million due in future periods under non-cancelable subleases. Net rent expense under non-cancelable operating leases is as follows: Year Ended (US$ in millions) 2018 2017 (1) 2016 Rent expense $ 158 $ 175 $ 213 Sublease income (10 ) (9 ) (9 ) Net rent expense $ 148 $ 166 $ 204 (1) In preparing the year-end financial statements as of December 31, 2018, the Company discovered and corrected an immaterial error impacting the amount of rent expense disclosed in the table above. As a result, rent expense for the year ended December 31, 2017 decreased by $76 million compared to what was previously reported in this table. This misstatement only applies to the amount disclosed in the table above and did not have any impact on the consolidated statement of income for 2017. In addition, Bunge enters into agricultural partnership agreements for the production of sugarcane. These agreements have an average remaining life of five years and cover approximately 234,000 hectares of land under cultivation. Amounts owed under these agreements are dependent on several variables, including the quantity of sugarcane produced per hectare, the total recoverable sugar ("ATR") per ton of sugarcane produced, and the price for each kilogram of ATR as determined by Consecana, the state of São Paulo sugarcane, sugar and ethanol council. During the years ended December 31, 2018 , 2017 and 2016 , Bunge made payments related to these agreements of $84 million , $105 million and $89 million , respectively, for advances on future production. Additionally, $56 million , $69 million and $64 million were included in cost of goods sold in the consolidated statements of income for the years ended December 31, 2018 , 2017 and 2016 , respectively. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). Under the new provisions, all lessees will be reported on the balance sheet as a right-of-use asset and a liability for the obligation to make payments except for leases with a term of 12 months or less. The standard is effective for Bunge starting January 1, 2019 (see to Note 1 for further discussion on the impact of the adoption of this accounting standard). |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 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 primarily involves sugarcane growing and milling in Brazil, as well as sugarcane-based ethanol production and corn-based ethanol investments and related activities. Following the classification of the Brazilian fertilizer distribution and North American fertilizer businesses as discontinued operations, the activities of the Fertilizer segment include its port operations in Brazil and Argentina and its blending and retail operations in Argentina. The “Discontinued Operations & Unallocated” column in the following table contains the reconciliation between the totals for reportable segments and Bunge consolidated totals, which consist primarily of amounts attributable to discontinued operations, corporate items not allocated to the operating segments, and inter-segment eliminations. Transfers between the segments are generally valued at market. The segment revenues generated from these transfers are shown in the following table as “Inter-segment revenues.” (US$ in millions) Agribusiness Edible Oil Products Milling Products Sugar and Bioenergy Fertilizer Discontinued Operations & Unallocated (1) Total 2018 Net sales to external customers $ 32,206 $ 9,129 $ 1,691 $ 2,257 $ 460 $ — $ 45,743 Inter—segment revenues 4,641 161 — 19 2 (4,823 ) — Foreign exchange gains (losses) (104 ) — 2 7 (6 ) — (101 ) Noncontrolling interests (1) (14 ) (12 ) — 1 (2 ) 7 (20 ) Other income (expense)—net 79 (8 ) (3 ) 4 — (24 ) 48 Segment EBIT (3) 645 122 90 (135 ) 39 (24 ) 737 Discontinued operations (2) — — — — — 10 10 Depreciation, depletion and amortization (257 ) (153 ) (58 ) (146 ) (8 ) — (622 ) Investments in affiliates 406 — — 45 — — 451 Total assets 11,865 3,940 1,448 1,681 330 161 19,425 Capital expenditures 219 129 23 110 5 7 493 2017 Net sales to external customers $ 31,741 $ 8,018 $ 1,575 $ 4,054 $ 406 $ — $ 45,794 Inter—segment revenues 4,323 154 5 45 4 (4,531 ) — Foreign exchange gains (losses) 85 3 (3 ) 11 (1 ) — 95 Noncontrolling interests (1) (9 ) (8 ) — — (2 ) 5 (14 ) Other income (expense)—net 56 (7 ) (5 ) (4 ) — — 40 Segment EBIT (4) 256 126 63 (12 ) 3 — 436 Discontinued operations (2) — — — — — — — Depreciation, depletion and amortization (267 ) (105 ) (61 ) (164 ) (12 ) — (609 ) Investments in affiliates 411 — — 50 — — 461 Total assets 12,094 2,610 1,460 2,195 330 182 18,871 Capital expenditures 318 136 45 139 9 15 662 2016 Net sales to external customers $ 30,061 $ 6,859 $ 1,647 $ 3,709 $ 403 $ — $ 42,679 Inter—segment revenues 3,867 115 9 13 — (4,004 ) — Foreign exchange gains (losses) (7 ) (1 ) (7 ) 9 (2 ) — (8 ) Noncontrolling interests (1) (21 ) (13 ) — — (2 ) 14 (22 ) Other income (expense)—net 22 7 (4 ) (16 ) 1 — 10 Segment EBIT (5) 875 112 131 (4 ) 29 — 1,143 Discontinued operations (2) — — — — — (9 ) (9 ) Depreciation, depletion and amortization (236 ) (94 ) (62 ) (143 ) (12 ) — (547 ) Investments in affiliates 325 — — 48 — — 373 Total assets 12,159 2,329 1,444 2,754 318 184 19,188 Capital expenditures 421 108 75 131 16 33 784 (1) Includes the noncontrolling interests' share of interest and tax to reconcile to consolidated noncontrolling interests. (2) Represents net income (loss) from discontinued operations. (3) 2018 EBIT includes a $16 million loss in the Sugar & Bioenergy segment and a $10 million loss in the Agribusiness segment, due to the dispositions of certain equity investments, which are recorded in other income (expense)-net. In addition, Bunge recorded pre-tax, impairment charges of $18 million , of which $7 million , $10 million and $1 million are in selling, general and administrative expenses, cost of goods sold and other income (expense)—net, respectively. Of these pre-tax impairment charges, $12 million was allocated to Agribusiness, $5 million to Sugar and Bioenergy and $1 million to Edible Oil Products. (4) 2017 EBIT includes a $9 million gain related to the disposition of a subsidiary in the Agribusiness segment in Brazil, which is recorded in other income (expense)-net. In addition, Bunge recorded pre-tax, impairment charges of $52 million , of which $19 million , $16 million and $17 million are in selling, general and administrative expenses, cost of goods sold and other income (expense)—net, respectively. Of these pre-tax impairment charges, $41 million was allocated to Agribusiness, $7 million to Sugar and Bioenergy, $3 million to Edible Oil Products, and $1 million to Milling Products. (5) 2016 EBIT includes $122 million of gains related to disposition of equity interest in operations in Agribusiness, recorded in other income (expense)-net. In addition, Bunge recorded pre-tax impairment charges of $72 million , $9 million and $ 6 million in other income (expense)-net, cost of goods sold and selling, general and administrative expenses, respectively. Of these pre-tax impairment charges, $46 million was allocated to Sugar and Bioenergy, $29 million to Agribusiness, $9 million to Fertilizer, $2 million Edible Oils and $1 million to Milling Products. Total segment earnings before interest and taxes ("EBIT") is an operating performance measure used by Bunge's management to evaluate segment operating activities. Bunge's management believes total segment EBIT is a useful measure of operating profitability, since the measure allows for an evaluation of the performance of its segments without regard to its financing methods or capital structure. In addition, EBIT is a financial measure that is widely used by analysts and investors in Bunge's industries. A reconciliation of total segment EBIT to net income attributable to Bunge follows: Year Ended December 31, (US$ in millions) 2018 2017 2016 Total segment EBIT from continuing operations $ 737 $ 436 $ 1,143 Interest income 31 38 51 Interest expense (339 ) (263 ) (234 ) Income tax (expense) benefit (179 ) (56 ) (220 ) Income (loss) from discontinued operations, net of tax 10 — (9 ) Noncontrolling interests' share of interest and tax 7 5 14 Net income attributable to Bunge $ 267 $ 160 $ 745 Net sales by product group to external customers were as follows: Year Ended December 31, (US$ in millions) 2018 2017 2016 Agricultural Commodity Products $ 32,206 $ 31,741 $ 30,061 Edible Oil Products 9,129 8,018 6,859 Wheat Milling Products 1,037 988 1,079 Corn Milling Products 654 587 568 Sugar and Bioenergy Products 2,257 4,054 3,709 Fertilizer Products 460 406 403 Total $ 45,743 $ 45,794 $ 42,679 Geographic area information for net sales to external customers, determined based on the location of the subsidiary making the sale, and long-lived assets follows: Year Ended December 31, (US$ in millions) 2018 2017 2016 Net sales to external customers: Europe $ 17,802 $ 16,313 $ 14,238 United States 9,955 10,128 10,239 Asia-Pacific 8,651 8,613 7,843 Brazil 5,553 7,040 6,604 Argentina 1,166 1,433 1,406 Canada 1,216 1,114 1,120 Rest of world 1,400 1,153 1,229 Total $ 45,743 $ 45,794 $ 42,679 Year Ended December 31, (US$ in millions) 2018 2017 2016 Long-lived assets (1) : Brazil $ 1,994 $ 2,406 $ 2,452 United States 1,561 1,267 1,249 Europe 1,912 1,485 1,107 Asia-Pacific 679 483 505 Canada 401 440 378 Argentina 161 216 189 Rest of world 382 341 320 Total $ 7,090 $ 6,638 $ 6,200 (1) Long-lived assets include property, plant and equipment, net, goodwill and other intangible assets, net, investments in affiliates and non-current assets held for sale. The Company’s revenue comprises sales from commodity contracts that are accounted for under ASC 815, Derivatives and Hedging and sales of other products and services that are accounted for under ASC 606, Revenue from Contracts with Customers . The following tables provide a disaggregation of net sales to external customers between sales from contracts with customers and sales from other arrangements: Twelve Months Ended December 31, 2018 (US$ in millions) Agribusiness Edible Oil Products Milling Products Sugar and Bioenergy Fertilizer Total Sales from other arrangements $ 31,040 $ 1,818 $ 65 $ 1,568 $ — $ 34,491 Sales from contracts with customers 1,166 7,311 1,626 689 460 11,252 Net sales to external customers $ 32,206 $ 9,129 $ 1,691 $ 2,257 $ 460 $ 45,743 |
QUARTERLY FINANCIAL INFORMATION
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | QUARTERLY FINANCIAL INFORMATION (UNAUDITED) Quarter (US$ in millions, except per share data) First Second Third Fourth Year 2018 Net sales $ 10,641 $ 12,147 $ 11,412 $ 11,543 $ 45,743 Gross profit 384 542 918 422 2,266 Income (loss) from continuing operations (17 ) (17 ) 367 (56 ) 277 Income (loss) from discontinued operations, net of tax (2 ) 7 7 (2 ) 10 Net income (loss) (19 ) (10 ) 374 (58 ) 287 Net income (loss) attributable to Bunge (21 ) (12 ) 365 (65 ) 267 Earnings (loss) per common share—basic (1) Net income (loss) from continuing operations $ (0.20 ) $ (0.20 ) $ 2.48 $ (0.51 ) $ 1.58 Net income (loss) from discontinued operations (0.01 ) 0.05 0.05 (0.01 ) 0.07 Net income (loss) attributable to Bunge common shareholders $ (0.21 ) $ (0.15 ) $ 2.53 $ (0.52 ) $ 1.65 Earnings (loss) per common share—diluted (1) Net income (loss) from continuing operations $ (0.20 ) $ (0.20 ) $ 2.39 $ (0.51 ) $ 1.57 Net income (loss) from discontinued operations (0.01 ) 0.05 0.05 (0.01 ) 0.07 Net income (loss) attributable to Bunge common shareholders $ (0.21 ) $ (0.15 ) $ 2.44 $ (0.52 ) $ 1.64 2017 Net sales $ 11,121 $ 11,645 $ 11,423 $ 11,605 $ 45,794 Gross profit 460 354 489 462 1,765 Income (loss) from continuing operations 54 81 92 (53 ) 174 Income (loss) from discontinued operations, net of tax (6 ) 6 — — — Net income (loss) 48 87 92 (53 ) 174 Net income (loss) attributable to Bunge 47 81 92 (60 ) 160 Earnings (loss) per common share—basic (1) Net income (loss) from continuing operations $ 0.31 $ 0.48 $ 0.59 $ (0.48 ) $ 0.90 Net income (loss) from discontinued operations (0.04 ) 0.04 — — — Net income (loss) attributable to Bunge common shareholders $ 0.27 $ 0.52 $ 0.59 $ (0.48 ) $ 0.90 Earnings (loss) per common share—diluted (1) Net income (loss) from continuing operations $ 0.31 $ 0.48 $ 0.59 $ (0.48 ) $ 0.89 Net income (loss) from discontinued operations (0.04 ) 0.03 — — — Net income (loss) attributable to Bunge common shareholders $ 0.27 $ 0.51 $ 0.59 $ (0.48 ) $ 0.89 (1) Earnings per share attributable to Bunge common shareholders for both basic and diluted is computed independently for each period presented. As a result, the sum of the quarterly earnings per share for the years ended December 31, 2018 and 2017 may not equal the total computed for the year. |
SCHEDULE II-VALUATION AND QUALI
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II-Valuation and Qualifying Accounts | Schedule II—Valuation and Qualifying Accounts (US$ in millions) Description Balance at beginning of period Charged to costs and expenses Charged to other accounts (b) Deductions from reserves Balance at end of period FOR THE YEAR ENDED Allowances for doubtful accounts (a) $ 210 45 15 (58 ) (c) $ 212 Allowances for secured advances to suppliers $ 42 1 9 (2 ) $ 50 Allowances for recoverable taxes $ 32 162 1 (160 ) $ 35 Income tax valuation allowances $ 798 (44 ) 85 — $ 839 FOR THE YEAR ENDED Allowances for doubtful accounts (a) $ 212 42 (1 ) (70 ) (c) $ 183 Allowances for secured advances to suppliers $ 50 20 — (5 ) $ 65 Allowances for recoverable taxes $ 35 12 (1 ) (7 ) $ 39 Income tax valuation allowances $ 839 43 18 — $ 900 FOR THE YEAR ENDED DECEMBER 31, 2018 Allowances for doubtful accounts (a) $ 183 56 (18 ) (36 ) (c) $ 185 Allowances for secured advances to suppliers $ 65 21 (10 ) (6 ) $ 70 Allowances for recoverable taxes $ 39 6 (5 ) (3 ) $ 37 Income tax valuation allowances $ 900 114 (98 ) (150 ) $ 766 (a) Includes allowance for doubtful accounts for current and non-current trade accounts receivables. (b) Consists primarily of foreign currency translation adjustments. (c) Include write-offs of uncollectible accounts and recoveries. |
NATURE OF BUSINESS, BASIS OF _2
NATURE OF BUSINESS, BASIS OF PRESENTATION, AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Principles of Consolidation | Principles of Consolidation —The accompanying consolidated financial statements include the accounts of Bunge, its subsidiaries and VIEs in which Bunge is considered to be the primary beneficiary, and as a result, include the assets, liabilities, revenues and expenses of all entities over which Bunge exercises control. Equity investments in which Bunge has the ability to exercise significant influence but does not control are accounted for by the equity method of accounting. Investments in which Bunge does not exercise significant influence are accounted for at cost, or fair value if that is readily determinable. Intercompany accounts and transactions are eliminated. An enterprise is determined to be the primary beneficiary if it has a controlling financial interest, defined as (a) the power to direct the activities of a VIE that most significantly impact the VIE's business and (b) the obligation to absorb losses of or the right to receive benefits from the VIE that could potentially be significant to the VIE's operations. Performance of that analysis requires the exercise of judgment. The VIE and consolidation assessments are revisited upon the occurrence of relevant reconsideration events. Noncontrolling interests in subsidiaries related to Bunge's ownership interests of less than 100% are reported as Noncontrolling interests or Redeemable noncontrolling interests in the consolidated balance sheets. The noncontrolling ownership interests in Bunge's earnings, net of tax, is reported as Net (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests in the consolidated statements of income. Basis of Presentation —The consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The accounting policies used to prepare these financial statements are the same as those used to prepare the consolidated financial statements in prior years except as described in these notes or for the adoption of new standards as outlined below. |
Discontinued Operations | Discontinued Operations —In determining whether a disposal group should be presented as discontinued operations, Bunge makes a determination of whether such a group being disposed of comprises a component of the entity, or a group of components of the entity, that represents a strategic shift that has, or will have, a major effect on the Company's operations and financial results. If these determinations are made affirmatively, the results of operations of the group being disposed of (as well as any gain or loss on the disposal transaction) are aggregated for separate presentation apart from the continuing operations of the Company for all periods presented in the consolidated financial statements. |
Reclassifications | Reclassifications —Certain prior year amounts have been reclassified to conform to current year presentation. |
Use of Estimates | Use of Estimates —The preparation of consolidated financial statements in conformity with U.S. GAAP requires Bunge to make estimates and assumptions that affect the amounts reported in the financial statements and notes. Actual results could differ from those estimates. |
Translation of Foreign Currency Financial Statements and Foreign Currency Transactions | Translation of Foreign Currency Financial Statements —Bunge's reporting currency is the U.S. dollar. The functional currency of the majority of Bunge's foreign subsidiaries is their local currency and, as such, amounts included in the consolidated statements of income, comprehensive income (loss), cash flows and changes in equity are translated using average exchange rates during each period. Assets and liabilities are translated at period-end exchange rates and resulting foreign currency translation adjustments are recorded in the consolidated balance sheets as a component of accumulated other comprehensive income (loss). However, in accordance with U.S. GAAP, if a foreign entity's economy is determined to be highly inflationary, then such foreign entity's financial statements shall be remeasured as if the functional currency were the reporting currency. Bunge has significant operations in Argentina and, up until June 30, 2018, it had utilized the official exchange rate of the Argentine peso published by the Argentine government for its commercial transactions and remeasurement purposes of financial statements. Argentina has experienced negative economic trends, as evidenced by multiple periods of increasing inflation rates, devaluation of the peso , and increasing borrowing rates, requiring the Argentine government to take mitigating actions. During the second quarter of 2018, it was determined that Argentina's economy should be considered highly inflationary, and as such, beginning on July 1, 2018, Bunge's Argentine subsidiaries changed their functional currency to the U.S. Dollar. This change in functional currency did not have a material impact on Bunge's consolidated financial statements. Foreign Currency Transactions —Monetary assets and liabilities denominated in currencies other than the functional currency are remeasured into their respective functional currencies at exchange rates in effect at the balance sheet date. The resulting exchange gain or loss is included in Bunge's consolidated statements of income as foreign exchange gain (loss) unless the remeasurement gain or loss relates to an intercompany transaction that is of a long-term investment nature and for which settlement is not planned or anticipated in the foreseeable future. Gains or losses arising from translation of such transactions are reported as a component of accumulated other comprehensive income (loss) in Bunge's consolidated balance sheets. |
Cash and Cash Equivalents | Cash and Cash Equivalents —Cash and cash equivalents include time deposits and readily marketable securities with original maturity dates of three months or less at the time of acquisition. |
Trade Accounts Receivable and Secured Advances to Suppliers | Trade Accounts Receivable and Secured Advances to Suppliers —Trade accounts receivable and secured advances to suppliers are stated at their historical carrying amounts net of write-offs and allowances for uncollectible accounts. Bunge establishes an allowance for uncollectible trade accounts receivable and secured advances to farmers based on historical experience, farming economics and other market conditions as well as specific customer collection issues. Uncollectible accounts are written off when a settlement is reached for an amount below the outstanding historical balance or when Bunge has determined that collection is unlikely. Secured advances to suppliers bear interest at contractual rates which reflect current market interest rates at the time of the transaction. There are no deferred fees or costs associated with these receivables. As a result, there are no imputed interest amounts to be amortized under the interest method. Interest income is calculated based on the terms of the individual agreements and is recognized on an accrual basis. Bunge follows accounting guidance on the disclosure of the credit quality of financing receivables and the allowance for credit losses, which requires information to be disclosed at disaggregated levels, defined as portfolio segments and classes. Under this guidance, a class of receivables is considered impaired, based on current information and events, if Bunge determines it probable that all amounts due under the original terms of the receivable will not be collected. Recognition of interest income is suspended once the borrower defaults on the originally scheduled delivery of agricultural commodities as the collection of future income is determined not to be probable. No additional interest income is accrued from the point of default until ultimate recovery, at which time amounts collected are credited first against the receivable and then to any unrecognized interest income. |
Inventories | Inventories —Readily marketable inventories ("RMI") are agricultural commodity inventories, such as soybeans, soybean meal, soybean oil, corn and wheat that are readily convertible to cash because of their commodity characteristics, widely available markets and international pricing mechanisms. All of Bunge's RMI are valued at fair value. These agricultural commodity inventories have quoted market prices in active markets, may be sold without significant further processing, and have predictable and insignificant disposal costs. Changes in the fair values of RMI are recognized in earnings as a component of cost of goods sold. Inventories other than RMI are stated at the lower of cost or market by inventory product class. Cost is determined using primarily the weighted-average cost method. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities —Bunge enters into derivative instruments to manage its exposure to movements associated with agricultural commodity prices, transportation costs, foreign currency exchange rates, interest rates, and energy costs. Bunge's use of these instruments is generally intended to mitigate the exposure to market variables (see Note 15). Additionally, commodity contracts relating to forward sales of commodities in the Company’s Agribusiness segment, such as soybeans, soybean meal and oil, corn and wheat, are accounted for as derivatives at fair value under ASC 815 (see Revenue Recognition below). Generally, derivative instruments are recorded at fair value in other current assets or other current liabilities in Bunge's consolidated balance sheets. Bunge assesses at the inception of a hedge whether any derivatives designated as hedges are highly effective in offsetting changes in the hedged items and, on an ongoing basis, qualitatively monitors whether that assertion is still met. The changes in fair values of derivative instruments designated as fair value hedges, along with the gains or losses on the related hedged items are recorded in earnings in the consolidated statements of income in the same caption as the hedged items. The changes in fair values of derivative instruments that are designated as cash flow hedges are recorded in accumulated other comprehensive income (loss) and are reclassified to earnings when the hedged cash flows affect earnings or when the hedge is no longer considered to be effective. In addition, Bunge may designate certain derivative instruments and non-derivative instruments as net investment hedges to hedge the exposure associated with its equity investments in foreign operations. When using forward derivative contracts as hedging instruments in a net investment hedge, all changes in the fair value of the derivative are recorded as a component of accumulated other comprehensive income (loss) in the consolidated balance sheets. |
Marketable Securities and Other Short-Term Investments | Marketable Securities and Other Short-Term Investments —Bunge classifies its marketable debt securities and short-term investments as available-for-sale, held-to-maturity or trading. Available-for-sale debt securities are reported at fair value with unrealized gains (losses) included in accumulated other comprehensive income (loss). Held-to-maturity debt investments represent financial assets in which Bunge has the intent and ability to hold to maturity. Debt trading securities and all equity securities are recorded at fair value and are bought and held principally for selling them in the near term and therefore held for only a short period of time, with all gains (losses) included in net income (loss). Bunge monitors its held-to-maturity investments for impairment periodically and recognizes an impairment charge when the decline in fair value of an investment is judged to be other than temporary. |
Recoverable Taxes | Recoverable Taxes —Recoverable taxes include value-added taxes paid upon the acquisition of raw materials and taxable services and other transactional taxes, which can be recovered in cash or as compensation against income taxes or other taxes owed by Bunge, primarily in Brazil and Europe. These recoverable tax payments are included in other current assets or other non-current assets based on their expected realization. In cases where Bunge determines that recovery is doubtful, recoverable taxes are reduced by allowances for the estimated unrecoverable amounts. |
Property, Plant and Equipment, Net | Property, Plant and Equipment, Net —Property, plant and equipment, net is stated at cost less accumulated depreciation and depletion. Major improvements that extend the life, capacity or efficiency or improve the safety of an asset are capitalized, while maintenance and repairs are expensed as incurred. Costs related to legal obligations associated with the future retirement of capitalized assets are capitalized as part of the cost of the related asset. Bunge generally capitalizes eligible costs to acquire or develop internal-use software that are incurred during the application development stage. Interest costs on borrowings during construction/completion periods of major capital projects are also capitalized. Depreciation is computed based on the straight-line method over the estimated useful lives of the assets. Useful lives for property, plant and equipment are as follows: Years Biological assets 5 - 6 Buildings 10 - 50 Machinery and equipment 7 - 25 Furniture, fixtures and other 3 - 20 Included in property, plant and equipment are biological assets, primarily sugarcane, that are stated at cost less accumulated depletion. Depletion is calculated using the estimated units of production based on the remaining useful life of the growing sugarcane. |
Goodwill | Goodwill —Goodwill represents the cost in excess of the fair value of net assets acquired in a business acquisition. Goodwill is not amortized but is tested annually for impairment or between annual tests if events or circumstances indicate potential impairment. Bunge's annual impairment testing is generally performed during the fourth quarter of its fiscal year. Goodwill is tested for impairment at the reporting unit level, which has been determined to be the Company's operating segments or one level below the operating segments in certain instances (see Note 8). |
Other Intangible Assets | Other Intangible Assets —Finite lived intangible assets include primarily trademarks, customer relationships and lists, port facility usage rights, and patents that are amortized on a straight-line basis over their contractual or legal lives (see Note 9) or their estimated useful lives where such lives are not determined by law or contract. |
Impairment of Property, Plant and Equipment and Finite Lived Intangible Assets | Impairment of Property, Plant and Equipment and Finite Lived Intangible Assets —Bunge reviews its property, plant and equipment and finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. Bunge bases its evaluation of recoverability on such indicators as the nature, future economic benefits, and geographic locations of the assets, historical or future profitability measures, and other external market conditions. If these indicators result in the expected non-recoverability of the carrying amount of an asset or asset group, Bunge evaluates potential impairment using undiscounted estimated future cash flows. If such undiscounted future cash flows during the asset's remaining useful life are below its carrying value, a loss is recognized for the shortfall, measured by the present value of the estimated future cash flows or by third-party appraisals. Bunge records impairments related to property, plant and equipment and finite-lived intangible assets used in the processing of its products in cost of goods sold in its consolidated statements of income. Any impairment of marketing or brand assets is recognized in selling, general and administrative expenses in the consolidated statements of income (see Note 10). Property, plant and equipment and other finite-lived intangible assets to be sold or otherwise disposed of are reported at the lower of carrying amount or fair value less cost to sell. |
Impairment of Investments in Affiliates | Investments in Affiliates —Bunge has investments in various unconsolidated joint ventures accounted for using the equity method or cost method. Bunge reviews its investments annually or when an event or circumstances indicate that a potential decline in value may be other than temporary. Bunge considers various factors in determining whether to recognize an impairment charge, including the length of time that the fair value of the investment is expected to be below its carrying value, the financial condition, operating performance and near-term prospects of the affiliate and Bunge's intent and ability to hold the investment for a period of time sufficient to allow for recovery of the fair value. (see Note 10 and 11). |
Revenue Recognition | Revenue Recognition —The Company’s revenue comprises sales from commodity contracts that are accounted for under ASC 815, Derivatives and Hedging (ASC 815) and sales of other products and services that are accounted for under ASC 606, Revenue from Contracts with Customers (ASC 606). Additional information about the Company’s revenues can be found in Note 19. Revenue from commodity contracts (ASC 815) - Revenue from commodity contracts primarily relates to forward sales of commodities in the Company’s Agribusiness segment, such as soybeans, soybean meal and oil, corn and wheat, which are accounted for as derivatives at fair value under ASC 815. These forward sales meet the definition of a derivative under ASC 815 as they have an underlying (e.g. the price of soybeans), a notional amount (e.g. metric tons), no initial net investment and can be net settled since the commodity is readily convertible to cash. Bunge does not apply the normal purchase and normal sale exception available under ASC 815 to these contracts. Certain of the Company’s sales in its Edible Oil Products, Milling Products, and Sugar and Bioenergy segments also qualify as derivatives, primarily sales of commodities like bulk soybean and canola oil, and sugar. Revenue from commodity contracts is recognized in Net sales for the contracted amount when the contracts are settled at a point in time by transferring control of the commodity to the customer, similarly to revenue recognized from contracts with customers under ASC 606. From inception through settlement, these forward sales arrangements are recorded at fair value under ASC 815 with unrealized gains and losses recognized in Cost of goods sold and carried on the consolidated balance sheet as Current assets (see Note 6) or Current liabilities (see Note 13), respectively. Further information about the fair value of these contracts is presented in the Note 15. Revenue from contracts with customers (ASC 606) - Revenue from contracts with customers accounted for under ASC 606 is primarily generated in the Company's Edible Oil Products, Milling Products, Sugar and Bioenergy and Fertilizer segments through the sale of refined edible oil-based products such as packaged vegetable oils, shortenings, margarines and mayonnaise; milled grain products such as wheat flours, bakery mixes, corn-based products, and rice; certain sugar and bioenergy products; and fertilizer products. These sales are accounted for under ASC 606 as these sales arrangements do not meet the aforementioned criteria to be considered derivatives under ASC 815. These revenues are measured based on consideration specified in a contract with a customer, and exclude sales taxes, discounts related to promotional programs and amounts collected on behalf of third parties. The Company recognizes revenue from these contracts at a point in time when it satisfies a performance obligation by transferring control of a product to a customer, generally when legal title and risks and rewards transfer to the customer. Sales terms provide for transfer of title either at the time and point of shipment or at the time and point of delivery and acceptance of the product being sold. In contracts that do not specify the timing of transfer of legal title or transfer of significant risks and rewards of ownership, judgment is required in determining the timing of transfer of control. In such cases, the Company considers standard business practices and the relevant laws and regulations applicable to the transaction to determine when legal title or the significant risks and rewards of ownership are transferred. The transaction price is generally allocated to performance obligations on a relative standalone selling price basis. Standalone selling prices are estimated based on observable data of the Company’s sales of such products and services to similar customers and in similar circumstances on a standalone basis. In assessing whether to allocate variable consideration to a specific part of the contract, the Company considers the nature of the variable payment and whether it relates specifically to its efforts to satisfy a specific part of the contract. Variable consideration is generally known upon satisfaction of the performance obligation. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue producing transaction, that are collected by the Company from a customer, are excluded from revenue. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in Cost of goods sold. Warranties provided to customers are primarily assurance-type warranties on the fitness of purpose and merchantability of the Company’s goods and services. The Company does not provide service-type warranties to customers. Payment is generally due at the time of shipment or delivery, or within a specified time frame after shipment or delivery, which is generally 30-60 days. The Company’s contracts generally provide customers the right to reject any products that do not meet agreed quality specifications. Product returns and refunds are not material. Additionally, the Company recognizes revenue in the Agribusiness segment from ocean freight and port services over time as the related services are performed. Performance obligations are typically completed within a fiscal quarter and any unearned revenue or accrued revenues are not material. |
Share-Based Compensation | Share-Based Compensation —Bunge maintains equity incentive plans for its employees and non-employee directors (see Note 25). Bunge accounts for share-based compensation based on the grant date fair value. Share-based compensation expense is recognized on a straight-line basis over the requisite service period. |
Income Taxes | Income Taxes —Income tax expenses and benefits are recognized based on the tax laws and regulations in the jurisdictions in which Bunge's subsidiaries operate. Under Bermuda law, Bunge is not required to pay taxes in Bermuda on either income or capital gains. The provision for income taxes includes income taxes currently payable and deferred income taxes arising as a result of temporary differences between the carrying amounts of existing assets and liabilities in Bunge's financial statements and their respective tax bases. Deferred tax assets are reduced by valuation allowances if current evidence does not suggest that the deferred tax asset will be realized. Accrued interest and penalties related to unrecognized tax benefits are recognized in income tax (expense) benefit in the consolidated statements of income (see Note 14). |
Research and Development | Research and Development —Research and development costs are expensed as incurred. |
New Accounting Pronouncements | New Accounting Pronouncements —In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). Under the new provisions, all lessees will be reported on the balance sheet as a right-of-use asset and a liability for the obligation to make payments except for leases with a term of 12 months or less. The standard is effective for Bunge starting January 1, 2019. During 2018, the FASB issued additional implementation guidance and practical expedients in ASU 2018-01, Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842 , ASU 2018-10, Codification Improvements to Topic 842, Leases , ASU 2018-11, Leases (Topic 842): Targeted Improvements , and ASU 2018-20, Leases (Topic 842): Narrow-Scope Improvements for Lessors . Bunge has elected the amended transition approach provided by ASU 2018-11, which allows entities to apply the guidance as of the date of initial application. Upon adoption the Company expects to record new right-of-use assets and lease liabilities associated with operating leases of approximately $930 million and $900 million , respectively. The Company does not expect significant impacts to its consolidated statement of comprehensive income, consolidated statement of cash flows, or consolidated statement of changes in equity and redeemable noncontrolling interests. 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. The adoption of this ASU is not expected to have a material impact on Bunge's consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326) , which introduces a new accounting model, referred to as the current expected credit losses (CECL) model, for estimating credit losses on certain financial instruments and expands the disclosure requirements for estimating such credit losses. Under the new model, an entity is required to estimate the credit losses expected over the life of an exposure (or pool of exposures). The guidance also amends the current impairment model for debt securities classified as available-for-sale securities. The new guidance will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. Bunge is evaluating the impact of this standard on its consolidated financial statements. |
Recently Adopted Accounting Pronouncements | 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, except for 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 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, $2,981 million and $1,458 million have been reclassified from cash provided by (used for) operating activities to cash provided by (used for) investing activities in the consolidated statement of cash flows for the years ended December 31, 2017 and 2016, respectively. See Note 18 for additional information on the trade receivables securitization program. Subsequent to the Company's initial adoption of ASU 2016-15, additional interpretative guidance was released by the SEC in the third quarter of 2018 that clarifies the method to be used for calculating the cash received from payments on the deferred purchase price. This additional guidance indicated that an entity must evaluate daily transaction activity to calculate the value of cash received from payments on the deferred purchase price. The company has applied this guidance on a retrospective basis, effective with the Form 10-Q for the quarterly period ended September 30, 2018, which resulted in additional reclassification of cash inflows from operating activities to cash inflows from investing activities. Upon the adoption of ASU 2016-18, Statement of Cash Flows (Topic 230), Restricted Cash (a consensus of the Emerging Issues Task Force), the Company has changed the way it presents restricted cash in the statement of cash flows. Effective for 2018, and all prior periods presented, restricted cash is included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheet that sums to the total of the same such amounts shown in the consolidated statement of cash flows. December 31, (US$ in millions) 2018 2017 2016 Cash and cash equivalents $ 389 $ 601 $ 934 Restricted cash included in other current assets 4 4 4 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 393 $ 605 $ 938 Upon the adoption of ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , the Company has changed the presentation of net periodic benefit cost related to its employer sponsored defined benefit plans and other postretirement benefits. Effective for 2018 and all prior periods presented, service cost is included in the same income statement line item as other compensation costs arising from services rendered during the period, while other components of net periodic benefit pension cost are now presented separately in Other income (expense), net. The reclassifications associated with the adoption of this ASU did not have a material impact on Bunge's consolidated financial statements. |
NATURE OF BUSINESS, BASIS OF _3
NATURE OF BUSINESS, BASIS OF PRESENTATION, AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of useful lives for property, plant and equipment | Useful lives for property, plant and equipment are as follows: Years Biological assets 5 - 6 Buildings 10 - 50 Machinery and equipment 7 - 25 Furniture, fixtures and other 3 - 20 |
Schedule of cash and cash equivalents | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheet that sums to the total of the same such amounts shown in the consolidated statement of cash flows. December 31, (US$ in millions) 2018 2017 2016 Cash and cash equivalents $ 389 $ 601 $ 934 Restricted cash included in other current assets 4 4 4 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 393 $ 605 $ 938 |
Restrictions on cash and cash equivalents | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheet that sums to the total of the same such amounts shown in the consolidated statement of cash flows. December 31, (US$ in millions) 2018 2017 2016 Cash and cash equivalents $ 389 $ 601 $ 934 Restricted cash included in other current assets 4 4 4 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 393 $ 605 $ 938 |
GLOBAL COMPETITIVENESS PROGRAM
GLOBAL COMPETITIVENESS PROGRAM (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Schedule of global competitiveness program | The table below sets forth, by type and segment, the costs recorded for the GCP and other associated initiatives: Year Ended December 31, 2018 2017 (US$ in millions) Severance and Other Employee Benefit Costs Consulting and Professional Services Other Program Costs Total Program Costs Severance and Other Employee Benefit Costs Consulting and Professional Services Other Program Costs Total Program Costs Agribusiness Segment $ 15 $ 18 $ 6 $ 39 $ 39 $ 10 $ — $ 49 Edible Oils Segment 2 4 1 7 12 4 — 16 Milling Segment 1 3 — 4 6 1 — 7 Sugar and Bioenergy Segment 2 4 1 7 1 3 — 4 Fertilizer Segment 2 1 — 3 1 — — 1 Total $ 22 $ 30 $ 8 $ 60 $ 59 $ 18 $ — $ 77 |
Schedule of restructuring reserve | The following table sets forth the activity affecting the liability for severance and other employee benefit costs related to the GCP and other associated initiatives, which is recorded in "Other current liabilities" on the consolidated balance sheet. (US$ in millions) Severance and Other Employee Benefit Costs Balance at December 31, 2016 $ — Charges incurred 72 Cash payments (17 ) Pension liability (1) (10 ) Balance at December 31, 2017 $ 45 Charges incurred 22 Cash payments (64 ) Balance at December 31, 2018 $ 3 (1) Included in severance and other employee benefit costs for the year ended December 31, 2017 is approximately $10 million of additional pension expense incurred as part of the voluntary early retirement program. This amount is accrued with the total Bunge pension liability in "Other noncurrent liabilities" in the consolidated balance sheet. |
BUSINESS ACQUISITIONS AND DIS_2
BUSINESS ACQUISITIONS AND DISPOSITIONS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Summary of the estimated fair values of the assets acquired and liabilities assumed | The following table summarizes the allocation of the fair values of the assets acquired and liabilities assumed at the acquisition date, as included in Bunge's consolidated balance sheet: (US$ in millions) Cash and cash equivalents $ 82 Accounts receivable 146 Inventories 406 Other current assets 66 Property, plant and equipment 411 Intangible assets 464 Goodwill 242 Total assets 1,817 Accounts payable (109 ) Other current liabilities (100 ) Deferred income taxes (143 ) Noncurrent liabilities (35 ) Total liabilities (387 ) Redeemable noncontrolling interest (450 ) Net assets acquired $ 980 |
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 26 Other various 2 Total intangible assets $ 464 |
Summary of pro forma information | The amounts of revenue and earnings of Loders included in Bunge's consolidated statement of income from the acquisition date to December 31, 2018 is as follows: (US$ in millions) Net sales $ 1,331 Income (loss) from continuing operations $ 3 The following represents the unaudited supplemental pro forma results of the combined entity as if Loders was acquired on January 1, 2017: Year Ended December 31, (US$ in millions) 2018 2017 Net sales $ 46,047 $ 47,588 Income (loss) from continuing operations $ 298 $ 129 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories by segment | All other inventories are carried at lower of cost or net realizable value. December 31, (US$ in millions) 2018 2017 Agribusiness (1) $ 4,551 $ 4,022 Edible Oil Products (2) 742 458 Milling Products 220 196 Sugar and Bioenergy (3) 280 333 Fertilizer 78 65 Total $ 5,871 $ 5,074 (1) Includes RMI of $4,365 million and $3,865 million at December 31, 2018 and 2017 , respectively. Of these amounts $3,300 million and $2,694 million can be attributable to merchandising activities at December 31, 2018 and 2017 , respectively. (2) Includes RMI of $88 million and $115 million at December 31, 2018 and 2017 , respectively. (3) Includes RMI of $79 million and $76 million at December 31, 2018 and 2017 , respectively. Of these amounts, $74 million and $73 million can be attributable to merchandising activities at December 31, 2018 and 2017 , respectively. |
OTHER CURRENT ASSETS (Tables)
OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of other current assets | Other current assets consist of the following: December 31, (US$ in millions) 2018 2017 Unrealized gains on derivative contracts, at fair value $ 1,071 $ 910 Prepaid commodity contracts (1) 253 282 Secured advances to suppliers, net (2) 257 412 Recoverable taxes, net 500 488 Margin deposits 348 258 Marketable securities, at fair value and other short-term investments 162 213 Deferred purchase price receivable, at fair value (3) 128 107 Income taxes receivable 102 192 Prepaid expenses 165 125 Other 185 240 Total $ 3,171 $ 3,227 (1) Prepaid commodity contracts represent advance payments against contracts for future delivery of specified quantities of agricultural commodities. (2) Bunge provides cash advances to suppliers, primarily Brazilian farmers of soybeans and sugarcane, to finance a portion of the suppliers' production costs. Bunge does not bear any of the costs or operational risks associated with the related growing crops. The advances are largely collateralized by future crops and physical assets of the suppliers, carry a local market interest rate, and settle when the farmer's crop is harvested and sold. The secured advances to farmers are reported net of allowances of $1 million and $1 million at December 31, 2018 and December 31, 2017 , respectively. Interest earned on secured advances to suppliers of $30 million , $44 million and $38 million , for the years ended December 31, 2018 , 2017 and 2016 , respectively, is included in net sales in the consolidated statements of income. (3) Deferred purchase price receivable represents additional credit support for the investment conduits in Bunge's accounts receivables sales program (see Note 18). |
Summary of marketable securities and other short-term investments | The following is a summary of amounts recorded in the consolidated balance sheets for marketable securities and other short-term investments. December 31, (US$ in millions) 2018 2017 Foreign government securities $ 55 $ 145 Corporate debt securities 91 59 Certificate of deposits/time deposits 15 — Other 1 9 Total marketable securities and other short-term investments $ 162 $ 213 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | Property, plant and equipment consist of the following: December 31, (US$ in millions) 2018 2017 Land $ 403 $ 390 Biological assets 663 709 Buildings 2,139 2,116 Machinery and equipment 5,664 5,601 Furniture, fixtures and other 581 579 Construction in progress 435 517 Gross book value 9,885 9,912 Less: accumulated depreciation and depletion (4,684 ) (4,602 ) Total property, plant and equipment, net $ 5,201 $ 5,310 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of changes in the carrying amount of goodwill by segment | Changes in the carrying value of goodwill by segment for the years ended December 31, 2018 and 2017 are as follows: (US$ in millions) Agribusiness Edible Oil Products Milling Products Sugar and Bioenergy Fertilizer Total Goodwill, gross of impairments 128 91 171 514 1 905 Accumulated impairment losses (2 ) (13 ) (3 ) (514 ) — (532 ) Balance, December 31, 2016, net 126 78 168 — 1 373 Goodwill acquired (1) 103 8 — — — 111 Foreign currency translation 22 8 1 — — 31 Goodwill, gross of impairments 253 107 172 514 1 1,047 Accumulated impairment losses (2 ) (13 ) (3 ) (514 ) — (532 ) Balance, December 31, 2017, net 251 94 169 — 1 515 Goodwill acquired (2) — 242 19 — — 261 Foreign currency translation (18 ) (18 ) (13 ) — — (49 ) Goodwill, gross of impairments 235 331 178 514 1 1,259 Accumulated impairment losses (2 ) (13 ) (3 ) (514 ) — (532 ) Balance, December 31, 2018, net $ 233 $ 318 $ 175 $ — $ 1 $ 727 (1) Agribusiness goodwill relates to the 2017 acquisition of two oilseed processing plants and related operations in the Netherlands and France pursuant to an agreement with Cargill. (2) Edible Oils goodwill relates to the Loders acquisition and the Milling Products goodwill relates to the Minsa USA acquisition. See Note 3 for complete business acquisition details. |
OTHER INTANGIBLE ASSETS (Tables
OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Schedule of other intangible assets | Other intangible assets are all finite-lived and consist of the following: December 31, (US$ in millions) 2018 2017 Gross carrying amount: Trademarks/brands $ 235 $ 211 Licenses 12 7 Port rights 141 155 Customer Relationships 372 106 Patents 135 23 Other 95 71 990 573 Accumulated amortization: Trademarks/brands (106 ) (109 ) Licenses (10 ) (5 ) Port rights (37 ) (31 ) Customer Relationships (54 ) (34 ) Patents (32 ) (22 ) Other (54 ) (49 ) (293 ) (250 ) Other intangible assets, net $ 697 $ 323 |
OTHER NON-CURRENT ASSETS (Table
OTHER NON-CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Assets, Noncurrent [Abstract] | |
Schedule of other non-current assets | Other non-current assets consist of the following: December 31, (US$ in millions) 2018 2017 Recoverable taxes, net (1) $ 112 $ 155 Judicial deposits (1) 115 140 Other long-term receivables 8 12 Income taxes receivable (1) 221 307 Long-term investments 91 66 Affiliate loans receivable 29 24 Long-term receivables from farmers in Brazil, net (1) 93 131 Other 154 193 Total $ 823 $ 1,028 (1) These non-current assets arise primarily from Bunge's Brazilian operations and their realization could take several years. |
Summary of recorded 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. December 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) $ 105 $ 89 $ 98 $ 91 Renegotiated amounts (2) 17 17 25 22 For which no allowance has been provided: Legal collection process (1) 51 — 76 — Renegotiated amounts (2) 10 — 17 — Other long-term receivables 16 — 28 — Total $ 199 $ 106 $ 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. December 31, (US$ in millions) 2018 2017 Beginning balance $ 113 $ 109 Bad debt provisions 20 19 Recoveries (8 ) (12 ) Write-offs (2 ) (1 ) Foreign currency translation (17 ) (2 ) Ending balance $ 106 $ 113 |
OTHER CURRENT LIABILITIES (Tabl
OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of other current liabilities | Other current liabilities consist of the following: December 31, (US$ in millions) 2018 2017 Accrued liabilities $ 618 $ 606 Unrealized losses on derivative contracts at fair value 1,192 897 Advances on sales 405 406 Other 287 277 Total $ 2,502 $ 2,186 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of income from continuing operations before income tax | The components of income from operations before income tax are as follows: Year Ended December 31, (US$ in millions) 2018 2017 2016 United States $ 233 $ 21 $ 102 Non-United States 223 209 894 Total $ 456 $ 230 $ 996 |
Components of income tax expense (benefit) | The components of the income tax expense (benefit) are: Year Ended December 31, (US$ in millions) 2018 2017 2016 Current: United States $ 33 $ 45 $ (76 ) Non-United States 140 34 170 173 79 94 Deferred: United States 4 20 38 Non-United States 2 (43 ) 88 6 (23 ) 126 Total $ 179 $ 56 $ 220 |
Reconciliation of income tax expense (benefit) | Reconciliation of the income tax expense (benefit) if computed at the U.S. Federal income tax rate to Bunge's reported income tax expense (benefit) is as follows: Year Ended December 31, (US$ in millions) 2018 2017 2016 Income from operations before income tax $ 456 $ 230 $ 996 Income tax rate 21 % 35 % 35 % Income tax expense at the U.S. Federal tax rate 96 80 348 Adjustments to derive effective tax rate: Foreign earnings taxed at different statutory rates 24 (38 ) (73 ) Valuation allowances 114 43 (44 ) Fiscal incentives (1) (43 ) (42 ) (34 ) Foreign exchange on monetary items 24 (9 ) 5 Tax rate changes 4 (62 ) 4 Non-deductible expenses 8 27 3 Uncertain tax positions 22 (48 ) 89 Deferred balance adjustments — (4 ) — Equity distributions, net (31 ) — — Transition tax (15 ) 105 — Tax exempt investments — (14 ) (12 ) Tax credits (5 ) (8 ) (89 ) Incremental tax on future distributions (26 ) 27 — State taxes 8 (4 ) 5 Other (1 ) 3 18 Income tax (benefit) expense $ 179 $ 56 $ 220 (1) Fiscal incentives predominantly relate to investment incentives in Brazil that are exempt from Brazilian income tax. |
Components of deferred tax assets and liabilities and related valuation allowances | The primary components of the deferred tax assets and liabilities and the related valuation allowances are as follows: December 31, (US$ in millions) 2018 2017 Deferred income tax assets: Net operating loss carryforwards $ 781 $ 964 Employee benefits 116 106 Tax credit carryforwards 12 13 Inventories — 50 Accrued expenses and other 340 388 Total deferred tax assets 1,249 1,521 Less valuation allowances (766 ) (900 ) Deferred tax assets, net of valuation allowance 483 621 Deferred income tax liabilities: Property, plant and equipment 233 251 Undistributed earnings of affiliates 6 35 Investments 16 17 Intangibles 100 24 Inventories 26 — Total deferred tax liabilities 381 327 Net deferred tax assets $ 102 $ 294 |
Reconciliation of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits follows: (US$ in millions) 2018 2017 2016 Balance at January 1, $ 421 $ 409 $ 51 Additions based on tax positions related to the current year 41 34 9 Additions based on acquisitions — — 2 Additions based on tax positions related to prior years 21 13 374 Reductions for tax positions of prior years (54 ) (43 ) — Settlement or clarification from tax authorities (1 ) — (1 ) Expiration of statute of limitations (19 ) (32 ) (9 ) Foreign currency translation (19 ) 40 (17 ) Balance at December 31, $ 390 $ 421 $ 409 |
Tax years subject to income tax examination by tax authorities | The table below reflects the tax years for which Bunge is subject to income tax examinations by tax authorities: Open Tax Years North America 2013 - 2018 South America 2007 - 2018 Europe 2006 - 2018 Asia-Pacific 2004 - 2018 As of December 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 (including applicable interest and penalties) as of: December 31, (US$ in millions) Years Examined 2018 2017 ICMS 1990 to Present $ 264 $ 281 PIS/COFINS 2004 through 2015 $ 231 $ 200 |
FINANCIAL INSTRUMENTS AND FAI_2
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 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 December 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 5) $ — $ 4,286 $ 246 $ 4,532 $ — $ 3,691 $ 365 $ 4,056 Unrealized gain on designated derivative contracts (1) : Interest rate — 4 — 4 — — — — Foreign exchange — 6 — 6 — 18 — 18 Unrealized gain on undesignated derivative contracts (1) : Interest rate — 2 — 2 — 4 — 4 Foreign exchange — 467 — 467 — 321 — 321 Commodities 128 407 18 553 115 389 19 523 Freight 6 — 6 12 18 — 8 26 Energy 30 — — 30 18 — — 18 Deferred purchase price receivable (Note 18) — 128 — 128 — 107 — 107 Other (2) 67 98 — 165 15 234 — 249 Total assets $ 231 $ 5,398 $ 270 $ 5,899 $ 166 $ 4,764 $ 392 $ 5,322 Liabilities: Trade accounts payable (3) $ — $ 394 $ 47 $ 441 $ — $ 467 $ 116 $ 583 Unrealized loss on designated derivative contracts (4) : Interest rate — 33 — 33 — 31 — 31 Foreign exchange — 32 — 32 — 2 — 2 Unrealized loss on undesignated derivative contracts (4) : Interest rate — 9 — 9 — 1 — 1 Foreign exchange — 467 — 467 1 430 — 431 Commodities 152 446 23 621 141 271 20 432 Freight 13 — 6 19 15 — 3 18 Energy 43 — 1 44 9 2 2 13 Total liabilities $ 208 $ 1,381 $ 77 $ 1,666 $ 166 $ 1,204 $ 141 $ 1,511 (1) Unrealized gains on designated and undesignated derivative contracts are generally included in other current assets. There were $3 million and $0 million included in other non-current assets at December 31, 2018 and December 31, 2017 , respectively. (2) Other includes the fair values of marketable securities and investments in other current assets and other non-current assets. (3) These payables are hybrid financial instruments for which Bunge has elected the fair value option. (4) Unrealized losses on designated and undesignated derivative contracts are generally included in other current liabilities. There were $33 million and $31 million included in other non-current liabilities at December 31, 2018 and December 31, 2017 , respectively. |
Reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | The tables below present reconciliations for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the years ended December 31, 2018 and 2017 . These instruments were valued using pricing models that management believes reflect the assumptions that would be used by a marketplace participant. Year Ended December 31, 2018 (US$ in millions) Derivatives, Net (1) Readily Marketable Inventories (1) Trade Accounts Receivable/ Payable, Net (1) Total Balance, January 1, 2018 $ 2 $ 365 $ (116 ) $ 251 Total gains and losses (realized/unrealized) included in cost of goods sold (11 ) 144 26 159 Purchases 12 1,770 (294 ) 1,488 Sales — (2,585 ) — (2,585 ) Issuances (11 ) — — (11 ) Settlements 13 — 434 447 Transfers into Level 3 (10 ) 774 (79 ) 685 Transfers out of Level 3 (1 ) (222 ) (18 ) (241 ) Balance, December 31, 2018 $ (6 ) $ 246 $ (47 ) $ 193 1) Derivatives, net, readily marketable inventories, and trade accounts receivable/payable net, include gains/(losses) of $(24) million , $72 million and $0 million , respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at December 31, 2018 . Year Ended December 31, 2017 (US$ in millions) Derivatives, Net (1) Readily Marketable Inventories (1) Trade Accounts Receivable/ Payable, Net (1) Total Balance, January 1, 2017 $ (51 ) $ 237 $ (44 ) $ 142 Total gains and losses (realized/unrealized) included in cost of goods sold (31 ) 142 13 124 Purchases 11 1,551 (469 ) 1,093 Sales — (2,041 ) — (2,041 ) Issuances (7 ) — — (7 ) Settlements 67 — 441 508 Transfers into Level 3 (9 ) 701 (59 ) 633 Transfers out of Level 3 22 (225 ) 2 (201 ) Balance, December 31, 2017 $ 2 $ 365 $ (116 ) $ 251 1) Derivatives, net, readily marketable inventories, and trade accounts receivable/payable net, includes gains/(losses) of $1 million , $11 million and $0 million , respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at December 31, 2017 . |
Reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | The tables below present reconciliations for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the years ended December 31, 2018 and 2017 . These instruments were valued using pricing models that management believes reflect the assumptions that would be used by a marketplace participant. Year Ended December 31, 2018 (US$ in millions) Derivatives, Net (1) Readily Marketable Inventories (1) Trade Accounts Receivable/ Payable, Net (1) Total Balance, January 1, 2018 $ 2 $ 365 $ (116 ) $ 251 Total gains and losses (realized/unrealized) included in cost of goods sold (11 ) 144 26 159 Purchases 12 1,770 (294 ) 1,488 Sales — (2,585 ) — (2,585 ) Issuances (11 ) — — (11 ) Settlements 13 — 434 447 Transfers into Level 3 (10 ) 774 (79 ) 685 Transfers out of Level 3 (1 ) (222 ) (18 ) (241 ) Balance, December 31, 2018 $ (6 ) $ 246 $ (47 ) $ 193 1) Derivatives, net, readily marketable inventories, and trade accounts receivable/payable net, include gains/(losses) of $(24) million , $72 million and $0 million , respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at December 31, 2018 . Year Ended December 31, 2017 (US$ in millions) Derivatives, Net (1) Readily Marketable Inventories (1) Trade Accounts Receivable/ Payable, Net (1) Total Balance, January 1, 2017 $ (51 ) $ 237 $ (44 ) $ 142 Total gains and losses (realized/unrealized) included in cost of goods sold (31 ) 142 13 124 Purchases 11 1,551 (469 ) 1,093 Sales — (2,041 ) — (2,041 ) Issuances (7 ) — — (7 ) Settlements 67 — 441 508 Transfers into Level 3 (9 ) 701 (59 ) 633 Transfers out of Level 3 22 (225 ) 2 (201 ) Balance, December 31, 2017 $ 2 $ 365 $ (116 ) $ 251 1) Derivatives, net, readily marketable inventories, and trade accounts receivable/payable net, includes gains/(losses) of $1 million , $11 million and $0 million , respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at December 31, 2017 . |
Summary of outstanding derivative instruments | The table below summarizes the volume of economic derivatives as of December 31, 2018 and 2017 . For those contracts traded bilaterally through the over-the-counter markets (e.g., forwards, forward rate agreements ("FRA") and swaps), the gross position is provided. For exchange traded (e.g., futures, FFAs and options) and cleared positions (e.g., energy swaps), the net position is provided. December 31, 2018 2017 Unit of Measure (US$ in millions) Long (Short) Long (Short) Interest rate Swaps $ 3,349 $ (111 ) $ 2,317 $ (1,236 ) $ Notional Futures $ — $ — $ — $ (2 ) $ Notional FRAs $ 139 $ (149 ) $ 375 $ — $ Notional Currency Forwards $ 13,713 $ (13,701 ) $ 9,784 $ (9,668 ) $ Notional Swaps $ 127 $ (535 ) $ 192 $ (148 ) $ Notional Futures $ — $ (16 ) $ — $ (58 ) $ Notional Options $ 869 $ (919 ) $ 521 $ (471 ) Delta Agricultural commodities Forwards 25,523,840 (29,314,930 ) 23,438,004 (30,055,331 ) Metric Tons Swaps — (9,908,728 ) 65,045 (5,279,181 ) Metric Tons Futures 4,136,525 — 4,520,267 — Metric Tons Options 718,709 — 828,296 — Metric Tons Ocean freight FFA — (90 ) — (3,617 ) Hire Days FFA options 302 — 892 — Hire Days Natural gas Swaps 1,205,687 — 3,519,668 — MMBtus Futures 2,268,190 — 2,691,350 — MMBtus Energy - other Forwards 5,536,290 — 5,534,290 — Metric Tons Futures — (29,367 ) 1,394 — Metric Tons Swaps 188,800 — 223,600 — Metric Tons Other Swaps and futures $ 52 $ — $ — $ — $ Notional The table below provides information about the balance sheet values of hedged items and the notional amount of derivatives used in hedging strategies. December 31, (US$ in millions) 2018 2017 Hedging instrument type: Fair value hedges of interest rate risk Carrying value of hedged debt $ 2,229 $ 2,071 Cumulative adjustment to long-term debt from application of hedge accounting $ (29 ) $ (31 ) Interest rate swap - notional amount $ 2,266 $ 2,109 Fair value hedges of currency risk Carrying value of hedged debt $ 312 $ — Cumulative adjustment to long-term debt from application of hedge accounting $ — $ — Cross currency swap - notional amount $ 313 $ — Cash flow hedges of currency risk Foreign currency forward - notional amount $ 50 $ 237 Net investment hedges Foreign currency forward - notional amount $ 1,888 $ 1,000 Carrying value of non-derivative hedging instrument $ 912 $ 725 |
Summary of effect of derivative instruments designated as fair value hedges and undesignated derivative instruments on consolidated statements of income | The table below summarizes the net effect of derivative instruments and hedge accounting on the consolidated statements of income for the years ended December 31, 2018 , 2017 and 2016 . Gain (Loss) Recognized in Income on Derivative Instruments Year Ended December 31, (US$ in millions) 2018 2017 2016 Income statement classification Type of derivative Net sales Hedge accounting Foreign currency $ (2 ) $ — $ — Cost of goods sold Hedge accounting Foreign currency $ 1 $ — $ — Economic hedges Foreign currency (220 ) (1 ) 772 Commodities 506 676 (618 ) Other (1) (25 ) 9 27 Total Cost of goods sold $ 262 $ 684 $ 181 Interest expense Hedge accounting Interest rate $ (6 ) $ 13 $ 5 Economic hedges Interest rate (1 ) — (4 ) Total Interest expense $ (7 ) $ 13 $ 1 Foreign exchange gains (losses) Hedge accounting Foreign currency $ (10 ) $ — $ — Economic hedges Foreign currency $ 34 $ 22 $ 267 Total Foreign exchange gains (losses) $ 24 $ 22 $ 267 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 ) $ 14 $ 48 Gains and losses on derivatives used as net investment hedges included in other comprehensive income (loss) during the period $ 48 $ (8 ) $ (394 ) Foreign currency gains and losses on intercompany loans used as net investment hedges included in other comprehensive income (loss) during the period $ 52 $ (111 ) $ 41 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 — 37 16 Total $ — $ 37 $ 16 (1) Other includes the results from freight, energy and other derivatives. |
SHORT-TERM DEBT AND CREDIT FA_2
SHORT-TERM DEBT AND CREDIT FACILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Short-term Debt [Abstract] | |
Short-term debt | December 31, (US$ in millions) 2018 2017 Lines of credit: Unsecured, variable interest rates from 1.60% to 66.00% $ 750 $ 304 Total short-term debt (1) $ 750 $ 304 (1) Includes $136 million and $179 million of local currency borrowings in certain Central and Eastern European, South American, African and Asia-Pacific countries at a weighted average interest rate of 23.61% and 15.03% as of December 31, 2018 and December 31, 2017 , respectively. |
LONG-TERM DEBT AND CREDIT FAC_2
LONG-TERM DEBT AND CREDIT FACILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-term debt | 17. LONG-TERM DEBT AND CREDIT FACILITIES Long-term debt obligations are summarized below. December 31, (US$ in millions) 2018 2017 Revolving credit facility expiring 2020 $ 500 $ — Term loan due 2019—three-month Yen LIBOR plus 0.75% (Tranche A) $ 258 $ 253 Term loan due 2019—fixed Yen interest rate of 0.96% (Tranche B) 54 53 Term loan due 2019—three-month LIBOR plus 1.30% (Tranche C) 85 85 8.50% Senior Notes due 2019 — 599 3.50% Senior Notes due 2020 498 497 3.00% Senior Notes due 2022 397 396 1.85% Senior Notes due 2023—Euro 916 960 4.35% Senior Notes due 2024 595 — 3.25% Senior Notes due 2026 695 694 3.75% Senior Notes due 2027 594 593 Other 30 45 Subtotal 4,622 4,175 Less: Current portion of long-term debt (419 ) (15 ) Total long-term debt (1) $ 4,203 $ 4,160 (1) Includes secured |
Schedule of carrying amounts and fair values of long-term debt | The carrying amounts and fair values of long-term debt are as follows: December 31, 2018 December 31, 2017 (US$ in millions) Carrying Value Fair Value (Level 2) Carrying Value Fair Value (Level 2) Long-term debt, including current portion $ 4,622 $ 4,584 $ 4,175 $ 4,337 |
Principal maturities of long-term debt | Principal maturities of long-term debt at December 31, 2018 are as follows: (US$ in millions) 2019 $ 423 2020 1,017 2021 13 2022 407 2023 921 Thereafter 1,891 Total (1) $ 4,672 (1) Excludes components of long-term debt attributable to fair value hedge accounting of $29 million and deferred financing fees and unamortized premiums of $21 million . |
TRADE RECEIVABLES SECURITIZAT_2
TRADE RECEIVABLES SECURITIZATION PROGRAM (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Transfers and Servicing [Abstract] | |
Summary of cash flows and discounts of trade receivables securitization program | The trade receivables sold under the program are subject to specified eligibility criteria, including eligible currencies, and country and obligor concentration limits. On February 19, 2019, Bunge exercised a portion of the $300 million accordion feature under this program to increase the aggregate size of the facility by $100 million to an aggregate of $800 million . December 31, (US$ in millions) 2018 2017 Receivables sold which were derecognized from Bunge's balance sheet $ 826 $ 810 Deferred purchase price included in other current assets $ 128 $ 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. Years Ended December 31, (US$ in millions) 2018 2017 2016 Gross receivables sold $ 9,803 $ 10,022 $ 9,405 Proceeds received in cash related to transfer of receivables $ 9,484 $ 9,734 $ 9,197 Cash collections from customers on receivables previously sold $ 9,173 $ 9,659 $ 9,176 Discounts related to gross receivables sold included in SG&A $ 14 $ 9 $ 6 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Components of net periodic benefit costs | The components of net periodic benefit costs are as follows for defined benefit pension plans and postretirement benefit plans: Pension Benefits December 31, Postretirement Benefits December 31, (US$ in millions) 2018 2017 2016 2018 2017 2016 Service cost $ 39 $ 33 $ 32 $ — $ — $ — Interest cost 40 36 35 5 8 7 Expected return on plan assets (57 ) (46 ) (44 ) — — — Amortization of prior service cost 1 — — — — — Amortization of net loss 9 10 10 — — — Curtailment (gain) (2 ) — — — — — Settlement loss recognized 4 — — — — — Special termination benefit — 9 1 — — — Net periodic benefit costs $ 34 $ 42 $ 34 $ 5 $ 8 $ 7 |
Schedule of effects of one-percentage point change in assumed healthcare cost trend rates | A one-percentage point change in assumed healthcare cost trend rates would have the following effects: (US$ in millions) One-percentage point increase One-percentage point decrease Effect on total service and interest cost $ — $ — Effect on postretirement benefit obligation $ 4 $ (4 ) |
Schedule of weighted-average assumptions used in determining the benefit obligations | The weighted-average actuarial assumptions used in determining the benefit obligation under the defined benefit pension and postretirement benefit plans are as follows: Pension Benefits December 31, Postretirement Benefits December 31, 2018 2017 2018 2017 Discount rate 3.7 % 3.4 % 8.3 % 9.0 % Increase in future compensation levels 3.2 % 3.2 % N/A N/A |
Schedule of weighted-average assumptions used in determining the net periodic benefit costs | The weighted-average actuarial assumptions used in determining the net periodic benefit cost under the defined benefit pension and postretirement benefit plans are as follows: Pension Benefits December 31, Postretirement Benefits December 31, 2018 2017 2016 2018 2017 2016 Discount rate 3.4 % 4.0 % 4.2 % 9.0 % 10.8 % 11.4 % Expected long-term rate of return on assets 6.0 % 6.2 % 6.4 % N/A N/A N/A Increase in future compensation levels 3.2 % 3.2 % 3.3 % N/A N/A N/A |
Changes in the defined benefit pension and postretirement benefit plans' benefit obligations, assets and funded status of plans recognized in the balance sheet | The following table sets forth in aggregate the changes in the defined benefit pension and postretirement benefit plans' benefit obligations, assets and funded status at December 31, 2018 and 2017 . A measurement date of December 31 was used for all plans. Pension Benefits December 31, Postretirement Benefits December 31, (US$ in millions) 2018 2017 2018 2017 Change in benefit obligations: Benefit obligation at the beginning of year $ 1,073 $ 941 $ 67 $ 74 Service cost 39 33 — — Interest cost 40 36 5 8 Plan amendments 16 1 — — Plan curtailments (2 ) (32 ) — — Special termination benefits — 9 — — Actuarial (gain) loss, net (84 ) 100 1 (11 ) Employee contributions 3 6 1 1 Net transfers in (out) 213 3 — — Plan settlements (55 ) — — — Benefits paid (40 ) (35 ) (7 ) (4 ) Expenses paid (3 ) (4 ) — — Impact of foreign exchange rates (8 ) 15 (8 ) (1 ) Benefit obligation at the end of year $ 1,192 $ 1,073 $ 59 $ 67 Change in plan assets: Fair value of plan assets at the beginning of year $ 896 $ 740 $ — $ — Actual return on plan assets (36 ) 102 — — Employer contributions 18 77 6 3 Employee contributions 3 6 1 1 Net transfers in (out) 181 — — — Plan settlements (55 ) — — — Benefits paid (40 ) (35 ) (7 ) (4 ) Expenses paid (3 ) (4 ) — — Impact of foreign exchange rates (7 ) 10 — — Fair value of plan assets at the end of year $ 957 $ 896 $ — $ — Funded (unfunded) status and net amounts recognized: Plan assets (less than) in excess of benefit obligation $ (235 ) $ (177 ) $ (59 ) $ (67 ) Net (liability) asset recognized in the balance sheet $ (235 ) $ (177 ) $ (59 ) $ (67 ) Amounts recognized in the balance sheet consist of: Non-current assets $ 11 $ 18 $ — $ — Current liabilities (6 ) (6 ) (6 ) (7 ) Non-current liabilities (240 ) (189 ) (53 ) (60 ) Net liability recognized $ (235 ) $ (177 ) $ (59 ) $ (67 ) |
Schedule of accumulated benefit obligation in excess of plan assets | The following table provides aggregated information about pension plans with a projected benefit obligation in excess of plan assets: Pension Benefits December 31, (US$ in millions) 2018 2017 Projected benefit obligation $ 1,073 $ 937 Fair value of plan assets $ 827 $ 742 The accumulated benefit obligation for the defined pension benefit plans, respectively, was $1,122 million at December 31, 2018 and $1,011 million at December 31, 2017 . The following table summarizes information relating to aggregated defined benefit pension plans with an accumulated benefit obligation in excess of plan assets: Pension Benefits December 31, (US$ in millions) 2018 2017 Projected benefit obligation $ 978 $ 827 Accumulated benefit obligation $ 938 $ 789 Fair value of plan assets $ 758 $ 651 |
Fair values of defined pension plan assets | The fair values of Bunge's defined benefit pension plans' assets at the measurement date, by category, are as follows: December 31, 2018 (US$ in millions) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash $ 16 $ 16 $ — $ — Equities: Mutual funds (1) 363 362 1 — Fixed income securities: Mutual funds (2) 536 498 38 — Others (3) 42 6 20 16 Total $ 957 $ 882 $ 59 $ 16 December 31, 2017 (US$ in millions) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash $ 31 $ 31 $ — $ — Equities: Mutual funds (1) 470 423 47 — Fixed income securities: Mutual funds (2) 357 315 42 — Others (3) 38 7 26 5 Total $ 896 $ 776 $ 115 $ 5 (1) This category represents a portfolio of equity investments comprised of equity index funds that invest in U.S. equities and non-U.S. equities. The U.S. equities are comprised of investments focusing on large, mid and small cap companies and non-U.S. equities are comprised of international, emerging markets, and real estate investment trusts. (2) This category represents a portfolio of fixed income investments in mutual funds comprised of investment grade U.S. government bonds and notes, foreign government bonds, and corporate bonds from diverse industries. (3) This category represents a portfolio consisting of a mixture of hedge funds, real estate and insurance contracts. |
Estimated future benefit payments | The following benefit payments, which reflect future service as appropriate, are expected to be paid related to defined benefit pension and postretirement benefit plans: (US$ in millions) Pension Benefit Payments Postretirement Benefit Payments 2019 $ 50 $ 6 2020 51 6 2021 52 6 2022 54 6 2023 55 6 2024 and onwards 305 28 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 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 December 31, 2018 and 2017 are the following amounts related to these matters: December 31, (US$ in millions) 2018 2017 Non-income tax claims $ 94 $ 161 Labor claims 78 92 Civil and other claims 95 103 Total $ 267 $ 356 |
Summary of tax examinations against Brazilian subsidiaries | The table below reflects the tax years for which Bunge is subject to income tax examinations by tax authorities: Open Tax Years North America 2013 - 2018 South America 2007 - 2018 Europe 2006 - 2018 Asia-Pacific 2004 - 2018 As of December 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 (including applicable interest and penalties) as of: December 31, (US$ in millions) Years Examined 2018 2017 ICMS 1990 to Present $ 264 $ 281 PIS/COFINS 2004 through 2015 $ 231 $ 200 |
Maximum potential future payments related to guarantees | Bunge has issued or was a party to the following guarantees at December 31, 2018 : (US$ in millions) Maximum Potential Future Payments Unconsolidated affiliates guarantee (1)(2) $ 288 Residual value guarantee (3) 269 Total $ 557 (1) Bunge has 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 through 2034 . There are no recourse provisions or collateral that would enable Bunge to recover any amounts paid under these guarantees. In addition, a Bunge subsidiary has guaranteed the obligations of two of its affiliates and in connection therewith has secured its guarantee obligations through a pledge of one of its affiliate's shares plus loans receivable from the affiliate to the financial institutions in the event that the guaranteed obligations are enforced. Based on the amounts drawn under such debt facilities at December 31, 2018 , Bunge's potential liability was $141 million , and it has recorded a $17 million obligation related to these guarantees. (2) Bunge has issued guarantees to certain third parties related to performance of its unconsolidated affiliates. The terms of the guarantees are equal to the completion date of a port terminal 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 December 31, 2018 , Bunge's maximum potential future payments under these guarantees was $70 million , and no obligation has been recorded related to these guarantees. (3) Bunge has 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 December 31, 2018 , Bunge's recorded obligation related to these guarantees was $1 million . |
Future minimum payment obligations under freight supply agreements | Future minimum payment obligations due under these agreements as of December 31, 2018 are as follows: (US$ in millions) Ocean Freight Vessels Railroad Services Minimum Payment Obligations 2019 $ 172 $ 42 $ 214 2020 and 2021 176 55 231 2022 and 2023 121 55 176 2024 and thereafter 37 28 65 Total $ 506 $ 180 $ 686 |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 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 (1) 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, 2016 $ (6,443 ) $ 214 (134 ) 3 (6,360 ) Other comprehensive income (loss) before reclassifications 709 (305 ) (11 ) — 393 Amount reclassified from accumulated other comprehensive income — (11 ) — — (11 ) Net-current period other comprehensive income (loss) 709 (316 ) (11 ) — 382 Balance, December 31, 2016 (5,734 ) $ (102 ) (145 ) 3 (5,978 ) Other comprehensive income (loss) before reclassifications 187 (105 ) 5 2 89 Amount reclassified from accumulated other comprehensive income (loss) — (37 ) — (4 ) (41 ) Net-current period other comprehensive income (loss) 187 (142 ) 5 (2 ) 48 Balance, December 31, 2017 (5,547 ) $ (244 ) (140 ) 1 (5,930 ) Other comprehensive income (loss) before reclassifications (1,119 ) 99 (16 ) — (1,036 ) Amount reclassified from accumulated other comprehensive income (loss) 29 — 3 (1 ) 31 Net-current period other comprehensive income (loss) (1,090 ) 99 (13 ) (1 ) (1,005 ) Balance, December 31, 2018 $ (6,637 ) $ (145 ) $ (153 ) $ — $ (6,935 ) (1) Bunge has significant operating subsidiaries in Brazil, Argentina, North America, Europe and Asia-Pacific. The functional currency of Bunge's subsidiaries is generally the local currency. During the second quarter of 2018 , it was determined that Argentina's economy should be considered highly inflationary, and as such, beginning on July 1, 2018 , Bunge's Argentine subsidiaries changed their functional currency from Argentine peso to the U.S. Dollar. The assets and liabilities of these subsidiaries are translated into U.S. dollars from local currency at month-end exchange rates, and the resulting foreign currency translation gains (losses) are recorded in the consolidated balance sheets as a component of accumulated other comprehensive income (loss). This change in functional currency did not have a material impact on Bunge's consolidated financial statements. |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 12 Months Ended |
Dec. 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: Year Ended December 31, (US$ in millions, except for share data) 2018 2017 2016 Income from continuing operations $ 277 $ 174 $ 776 Net (income) attributable to noncontrolling interests (20 ) (14 ) (22 ) Income from continuing operations attributable to Bunge 257 160 754 Other redeemable obligations (1) — — (2 ) Convertible preference share dividends (34 ) (34 ) (34 ) Income (loss) from discontinued operations, net of tax 10 — (9 ) Net income available to Bunge common shareholders - Basic 233 126 709 Add back convertible preference share dividends — — 34 Net income available to Bunge common shareholders - Diluted $ 233 $ 126 $ 743 Weighted-average number of common shares outstanding: Basic 140,968,980 140,365,549 139,845,124 Effect of dilutive shares: —stock options and awards (2) 734,803 899,528 441,521 —convertible preference shares (3) — — 7,939,830 Diluted 141,703,783 141,265,077 148,226,475 Basic earnings (loss) per common share: Net income (loss) from continuing operations $ 1.58 $ 0.90 $ 5.13 Net income (loss) from discontinued operations 0.07 — (0.06 ) Net income (loss) attributable to Bunge common shareholders—basic $ 1.65 $ 0.90 $ 5.07 Diluted earnings (loss) per common share: Net income (loss) from continuing operations $ 1.57 $ 0.89 $ 5.07 Net income (loss) from discontinued operations 0.07 — (0.06 ) Net income (loss) attributable to Bunge common shareholders—diluted $ 1.64 $ 0.89 $ 5.01 (1) Accretion of redeemable noncontrolling interest of $0 million , $0 million and $2 million for the years ended December 31, 2018 , 2017 and 2016 , respectively, related to a non-fair value variable put arrangement whereby the noncontrolling interest holder may have required Bunge to purchase the remaining shares of an oilseed processing operation in Central and Eastern Europe. As further discussed in Note 22, during the second quarter of 2016 Bunge exercised its call option for their 45% interest in the joint venture for approximately $39 million . The transaction concluded in September 2016 . Accretion for the respective periods includes the effect of losses incurred by the operations for the year ended December 31, 2016 . (2) The weighted-average common shares outstanding-diluted excludes approximately 4 million , 4 million and 4 million stock options and contingently issuable restricted stock units, which were not dilutive and not included in the computation of earnings per share for the years ended December 31, 2018 , 2017 and 2016 , respectively. (3) Weighted-average common share outstanding-diluted for the years ended December 31, 2018 and 2017 excludes approximately 8 million weighted-average common shares that are issuable upon conversion of the convertible preference shares that were not dilutive and not included in the weighted-average number of common shares outstanding, respectively. |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Assumptions used to estimate fair value of stock options | The risk-free interest rate is based on U.S. Treasury zero-coupon bonds with a term equal to the expected option term of the respective grants and grant dates. December 31, Assumptions: 2018 2017 2016 Expected option term (in years) 6.31 5.86 5.67 Expected dividend yield 2.44 % 2.09 % 3.04 % Expected volatility 25.57 % 24.85 % 26.06 % Risk-free interest rate 2.75 % 2.21 % 1.41 % |
Summary of stock option activity | A summary of option activity under the plans for the year ended December 31, 2018 is presented below: Options Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at January 1, 2018 6,216,570 $ 71.88 Granted 718,500 $ 75.99 Exercised (222,844 ) $ 54.79 Forfeited or expired (589,922 ) $ 92.47 Outstanding at December 31, 2018 6,122,304 $ 70.93 5.52 $ 4 Exercisable at December 31, 2018 4,347,213 $ 70.34 4.38 $ 3 |
Summary of restricted stock unit activity | A summary of restricted stock unit activity under Bunge's plans for the year ended December 31, 2018 is presented below. Restricted Stock Units Shares Weighted-Average Grant-Date Fair Value Restricted stock units at January 1, 2018 1,704,004 $ 66.81 Granted 823,435 75.06 Vested/issued (2) (314,267 ) 75.93 Forfeited/cancelled (2) (339,879 ) 69.65 Restricted stock units at December 31, 2018 (1) 1,873,293 $ 69.29 (1) Includes accrued unvested dividends, which are payable in Bunge's common shares upon vesting of underlying restricted stock units. (2) During the year ended December 31, 2018 , Bunge issued 241,055 common shares, net of common shares withheld to cover taxes, including related common shares representing accrued dividends, with a weighted-average fair value of $75.93 per share. During the year ended December 31, 2018 , 87,284 performance-based restricted stock units vested. During the year ended December 31, 2018 , Bunge canceled approximately 78,710 shares related to performance-based restricted stock unit awards that did not vest due to non-achievement of performance targets. |
LEASE COMMITMENTS (Tables)
LEASE COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Minimum lease payments under non-cancelable operating leases | Future minimum lease payments by year and in the aggregate under non-cancelable operating leases with initial term of one year or more at December 31, 2018 are as follows: (US$ in millions) Minimum 2019 $ 134 2020 107 2021 84 2022 58 2023 48 Thereafter 126 Total (1) $ 557 (1) Minimum lease payments have not been reduced by minimum sublease income receipts of $43 million due in future periods under non-cancelable subleases. |
Net rent expense under non-cancelable operating leases | Net rent expense under non-cancelable operating leases is as follows: Year Ended (US$ in millions) 2018 2017 (1) 2016 Rent expense $ 158 $ 175 $ 213 Sublease income (10 ) (9 ) (9 ) Net rent expense $ 148 $ 166 $ 204 (1) In preparing the year-end financial statements as of December 31, 2018, the Company discovered and corrected an immaterial error impacting the amount of rent expense disclosed in the table above. As a result, rent expense for the year ended December 31, 2017 decreased by $76 million compared to what was previously reported in this table. This misstatement only applies to the amount disclosed in the table above and did not have any impact on the consolidated statement of income for 2017. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Operating Segment Information | The segment revenues generated from these transfers are shown in the following table as “Inter-segment revenues.” (US$ in millions) Agribusiness Edible Oil Products Milling Products Sugar and Bioenergy Fertilizer Discontinued Operations & Unallocated (1) Total 2018 Net sales to external customers $ 32,206 $ 9,129 $ 1,691 $ 2,257 $ 460 $ — $ 45,743 Inter—segment revenues 4,641 161 — 19 2 (4,823 ) — Foreign exchange gains (losses) (104 ) — 2 7 (6 ) — (101 ) Noncontrolling interests (1) (14 ) (12 ) — 1 (2 ) 7 (20 ) Other income (expense)—net 79 (8 ) (3 ) 4 — (24 ) 48 Segment EBIT (3) 645 122 90 (135 ) 39 (24 ) 737 Discontinued operations (2) — — — — — 10 10 Depreciation, depletion and amortization (257 ) (153 ) (58 ) (146 ) (8 ) — (622 ) Investments in affiliates 406 — — 45 — — 451 Total assets 11,865 3,940 1,448 1,681 330 161 19,425 Capital expenditures 219 129 23 110 5 7 493 2017 Net sales to external customers $ 31,741 $ 8,018 $ 1,575 $ 4,054 $ 406 $ — $ 45,794 Inter—segment revenues 4,323 154 5 45 4 (4,531 ) — Foreign exchange gains (losses) 85 3 (3 ) 11 (1 ) — 95 Noncontrolling interests (1) (9 ) (8 ) — — (2 ) 5 (14 ) Other income (expense)—net 56 (7 ) (5 ) (4 ) — — 40 Segment EBIT (4) 256 126 63 (12 ) 3 — 436 Discontinued operations (2) — — — — — — — Depreciation, depletion and amortization (267 ) (105 ) (61 ) (164 ) (12 ) — (609 ) Investments in affiliates 411 — — 50 — — 461 Total assets 12,094 2,610 1,460 2,195 330 182 18,871 Capital expenditures 318 136 45 139 9 15 662 2016 Net sales to external customers $ 30,061 $ 6,859 $ 1,647 $ 3,709 $ 403 $ — $ 42,679 Inter—segment revenues 3,867 115 9 13 — (4,004 ) — Foreign exchange gains (losses) (7 ) (1 ) (7 ) 9 (2 ) — (8 ) Noncontrolling interests (1) (21 ) (13 ) — — (2 ) 14 (22 ) Other income (expense)—net 22 7 (4 ) (16 ) 1 — 10 Segment EBIT (5) 875 112 131 (4 ) 29 — 1,143 Discontinued operations (2) — — — — — (9 ) (9 ) Depreciation, depletion and amortization (236 ) (94 ) (62 ) (143 ) (12 ) — (547 ) Investments in affiliates 325 — — 48 — — 373 Total assets 12,159 2,329 1,444 2,754 318 184 19,188 Capital expenditures 421 108 75 131 16 33 784 (1) Includes the noncontrolling interests' share of interest and tax to reconcile to consolidated noncontrolling interests. (2) Represents net income (loss) from discontinued operations. (3) 2018 EBIT includes a $16 million loss in the Sugar & Bioenergy segment and a $10 million loss in the Agribusiness segment, due to the dispositions of certain equity investments, which are recorded in other income (expense)-net. In addition, Bunge recorded pre-tax, impairment charges of $18 million , of which $7 million , $10 million and $1 million are in selling, general and administrative expenses, cost of goods sold and other income (expense)—net, respectively. Of these pre-tax impairment charges, $12 million was allocated to Agribusiness, $5 million to Sugar and Bioenergy and $1 million to Edible Oil Products. (4) 2017 EBIT includes a $9 million gain related to the disposition of a subsidiary in the Agribusiness segment in Brazil, which is recorded in other income (expense)-net. In addition, Bunge recorded pre-tax, impairment charges of $52 million , of which $19 million , $16 million and $17 million are in selling, general and administrative expenses, cost of goods sold and other income (expense)—net, respectively. Of these pre-tax impairment charges, $41 million was allocated to Agribusiness, $7 million to Sugar and Bioenergy, $3 million to Edible Oil Products, and $1 million to Milling Products. (5) 2016 EBIT includes $122 million of gains related to disposition of equity interest in operations in Agribusiness, recorded in other income (expense)-net. In addition, Bunge recorded pre-tax impairment charges of $72 million , $9 million and $ 6 million in other income (expense)-net, cost of goods sold and selling, general and administrative expenses, respectively. Of these pre-tax impairment charges, $46 million was allocated to Sugar and Bioenergy, $29 million to Agribusiness, $9 million to Fertilizer, $2 million Edible Oils and $1 million to Milling Products. |
Reconciliation of total segment EBIT to net income attributable to Bunge | A reconciliation of total segment EBIT to net income attributable to Bunge follows: Year Ended December 31, (US$ in millions) 2018 2017 2016 Total segment EBIT from continuing operations $ 737 $ 436 $ 1,143 Interest income 31 38 51 Interest expense (339 ) (263 ) (234 ) Income tax (expense) benefit (179 ) (56 ) (220 ) Income (loss) from discontinued operations, net of tax 10 — (9 ) Noncontrolling interests' share of interest and tax 7 5 14 Net income attributable to Bunge $ 267 $ 160 $ 745 |
Net sales by product group to external customers | Net sales by product group to external customers were as follows: Year Ended December 31, (US$ in millions) 2018 2017 2016 Agricultural Commodity Products $ 32,206 $ 31,741 $ 30,061 Edible Oil Products 9,129 8,018 6,859 Wheat Milling Products 1,037 988 1,079 Corn Milling Products 654 587 568 Sugar and Bioenergy Products 2,257 4,054 3,709 Fertilizer Products 460 406 403 Total $ 45,743 $ 45,794 $ 42,679 |
Geographic area information for net sales to external customers, determined based on the location of the subsidiary making the sale, and long-lived assets | Geographic area information for net sales to external customers, determined based on the location of the subsidiary making the sale, and long-lived assets follows: Year Ended December 31, (US$ in millions) 2018 2017 2016 Net sales to external customers: Europe $ 17,802 $ 16,313 $ 14,238 United States 9,955 10,128 10,239 Asia-Pacific 8,651 8,613 7,843 Brazil 5,553 7,040 6,604 Argentina 1,166 1,433 1,406 Canada 1,216 1,114 1,120 Rest of world 1,400 1,153 1,229 Total $ 45,743 $ 45,794 $ 42,679 Year Ended December 31, (US$ in millions) 2018 2017 2016 Long-lived assets (1) : Brazil $ 1,994 $ 2,406 $ 2,452 United States 1,561 1,267 1,249 Europe 1,912 1,485 1,107 Asia-Pacific 679 483 505 Canada 401 440 378 Argentina 161 216 189 Rest of world 382 341 320 Total $ 7,090 $ 6,638 $ 6,200 (1) Long-lived assets include property, plant and equipment, net, goodwill and other intangible assets, net, investments in affiliates and non-current assets held for sale. |
Disaggregation of net sales to external customers | The following tables provide a disaggregation of net sales to external customers between sales from contracts with customers and sales from other arrangements: Twelve Months Ended December 31, 2018 (US$ in millions) Agribusiness Edible Oil Products Milling Products Sugar and Bioenergy Fertilizer Total Sales from other arrangements $ 31,040 $ 1,818 $ 65 $ 1,568 $ — $ 34,491 Sales from contracts with customers 1,166 7,311 1,626 689 460 11,252 Net sales to external customers $ 32,206 $ 9,129 $ 1,691 $ 2,257 $ 460 $ 45,743 |
QUARTERLY FINANCIAL INFORMATI_2
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | Quarter (US$ in millions, except per share data) First Second Third Fourth Year 2018 Net sales $ 10,641 $ 12,147 $ 11,412 $ 11,543 $ 45,743 Gross profit 384 542 918 422 2,266 Income (loss) from continuing operations (17 ) (17 ) 367 (56 ) 277 Income (loss) from discontinued operations, net of tax (2 ) 7 7 (2 ) 10 Net income (loss) (19 ) (10 ) 374 (58 ) 287 Net income (loss) attributable to Bunge (21 ) (12 ) 365 (65 ) 267 Earnings (loss) per common share—basic (1) Net income (loss) from continuing operations $ (0.20 ) $ (0.20 ) $ 2.48 $ (0.51 ) $ 1.58 Net income (loss) from discontinued operations (0.01 ) 0.05 0.05 (0.01 ) 0.07 Net income (loss) attributable to Bunge common shareholders $ (0.21 ) $ (0.15 ) $ 2.53 $ (0.52 ) $ 1.65 Earnings (loss) per common share—diluted (1) Net income (loss) from continuing operations $ (0.20 ) $ (0.20 ) $ 2.39 $ (0.51 ) $ 1.57 Net income (loss) from discontinued operations (0.01 ) 0.05 0.05 (0.01 ) 0.07 Net income (loss) attributable to Bunge common shareholders $ (0.21 ) $ (0.15 ) $ 2.44 $ (0.52 ) $ 1.64 2017 Net sales $ 11,121 $ 11,645 $ 11,423 $ 11,605 $ 45,794 Gross profit 460 354 489 462 1,765 Income (loss) from continuing operations 54 81 92 (53 ) 174 Income (loss) from discontinued operations, net of tax (6 ) 6 — — — Net income (loss) 48 87 92 (53 ) 174 Net income (loss) attributable to Bunge 47 81 92 (60 ) 160 Earnings (loss) per common share—basic (1) Net income (loss) from continuing operations $ 0.31 $ 0.48 $ 0.59 $ (0.48 ) $ 0.90 Net income (loss) from discontinued operations (0.04 ) 0.04 — — — Net income (loss) attributable to Bunge common shareholders $ 0.27 $ 0.52 $ 0.59 $ (0.48 ) $ 0.90 Earnings (loss) per common share—diluted (1) Net income (loss) from continuing operations $ 0.31 $ 0.48 $ 0.59 $ (0.48 ) $ 0.89 Net income (loss) from discontinued operations (0.04 ) 0.03 — — — Net income (loss) attributable to Bunge common shareholders $ 0.27 $ 0.51 $ 0.59 $ (0.48 ) $ 0.89 (1) Earnings per share attributable to Bunge common shareholders for both basic and diluted is computed independently for each period presented. As a result, the sum of the quarterly earnings per share for the years ended December 31, 2018 and 2017 may not equal the total computed for the year. |
NATURE OF BUSINESS, BASIS OF _4
NATURE OF BUSINESS, BASIS OF PRESENTATION, AND SIGNIFICANT ACCOUNTING POLICIES - ADDITIONAL INFORMATION (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)segmentfacility | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Description of Business | |||
Number of reportable segments | segment | 5 | ||
Number of sugar mills in Brazil | facility | 8 | ||
Principles of Consolidation | |||
Maximum percentage ownership for interests reported as noncontrolling interests in subsidiaries | 100.00% | ||
Trade Accounts Receivable and Secured Advances to Suppliers | |||
Deferred fees or costs related to secured advances to suppliers | $ 0 | ||
Imputed interest to be amortized | 0 | ||
Additional interest income accrued | 0 | ||
Research and Development | |||
Research and development expenses | $ 15 | $ 20 | $ 17 |
Biological assets | Minimum | |||
Trade Accounts Receivable and Secured Advances to Suppliers | |||
Useful lives for property, plant and equipment | 5 years | ||
Biological assets | Maximum | |||
Trade Accounts Receivable and Secured Advances to Suppliers | |||
Useful lives for property, plant and equipment | 6 years | ||
Buildings | Minimum | |||
Trade Accounts Receivable and Secured Advances to Suppliers | |||
Useful lives for property, plant and equipment | 10 years | ||
Buildings | Maximum | |||
Trade Accounts Receivable and Secured Advances to Suppliers | |||
Useful lives for property, plant and equipment | 50 years | ||
Machinery and equipment | Minimum | |||
Trade Accounts Receivable and Secured Advances to Suppliers | |||
Useful lives for property, plant and equipment | 7 years | ||
Machinery and equipment | Maximum | |||
Trade Accounts Receivable and Secured Advances to Suppliers | |||
Useful lives for property, plant and equipment | 25 years | ||
Furniture, fixtures and other | Minimum | |||
Trade Accounts Receivable and Secured Advances to Suppliers | |||
Useful lives for property, plant and equipment | 3 years | ||
Furniture, fixtures and other | Maximum | |||
Trade Accounts Receivable and Secured Advances to Suppliers | |||
Useful lives for property, plant and equipment | 20 years |
NATURE OF BUSINESS, BASIS OF _5
NATURE OF BUSINESS, BASIS OF PRESENTATION, AND SIGNIFICANT ACCOUNTING POLICIES - ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2019 | Dec. 31, 2015 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Proceeds from interest in securitized trade receivables | $ 1,888 | $ 2,981 | $ 1,458 | ||
Cash and cash equivalents | 389 | 601 | 934 | ||
Restricted cash included in other current assets | 4 | 4 | 4 | ||
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows | $ 393 | $ 605 | $ 938 | $ 413 | |
Accounting Standards Update 2016-02 | Forecast | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Right-of-use operating lease asset | $ 930 | ||||
Operating lease liability | $ 900 |
GLOBAL COMPETITIVENESS PROGRA_2
GLOBAL COMPETITIVENESS PROGRAM - RESTRUCTURING COSTS (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Global Competitiveness Program | ||
Restructuring Cost and Reserve [Line Items] | ||
Impact on future earnings | $ 250 | |
Severance and Other Employee Benefit Costs | 22 | $ 59 |
Consulting and Professional Services | 30 | 18 |
Other Program Costs | 8 | 0 |
Total Program Costs | 60 | 77 |
Global Competitiveness Program | Cost of goods sold | ||
Restructuring Cost and Reserve [Line Items] | ||
Total Program Costs | 9 | 35 |
Global Competitiveness Program | Selling, general and administrative expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Total Program Costs | 51 | 55 |
Global Competitiveness Program | Agribusiness | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance and Other Employee Benefit Costs | 15 | 39 |
Consulting and Professional Services | 18 | 10 |
Other Program Costs | 6 | 0 |
Total Program Costs | 39 | 49 |
Global Competitiveness Program | Edible Oil Products | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance and Other Employee Benefit Costs | 2 | 12 |
Consulting and Professional Services | 4 | 4 |
Other Program Costs | 1 | 0 |
Total Program Costs | 7 | 16 |
Global Competitiveness Program | Milling Products | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance and Other Employee Benefit Costs | 1 | 6 |
Consulting and Professional Services | 3 | 1 |
Other Program Costs | 0 | 0 |
Total Program Costs | 4 | 7 |
Global Competitiveness Program | Sugar and Bioenergy | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance and Other Employee Benefit Costs | 2 | 1 |
Consulting and Professional Services | 4 | 3 |
Other Program Costs | 1 | 0 |
Total Program Costs | 7 | 4 |
Global Competitiveness Program | Fertilizer | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance and Other Employee Benefit Costs | 2 | 1 |
Consulting and Professional Services | 1 | 0 |
Other Program Costs | 0 | 0 |
Total Program Costs | $ 3 | 1 |
Other Industrial Initiatives | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance and Other Employee Benefit Costs | $ 13 |
GLOBAL COMPETITIVENESS PROGRA_3
GLOBAL COMPETITIVENESS PROGRAM - RESTRUCTURING RESERVE (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Reserve [Roll Forward] | ||
Charges incurred on sale or disposal of long-lived assets | $ 39 | $ 45 |
Pension Benefits | ||
Restructuring Reserve [Roll Forward] | ||
Additional defined benefit expenses relating to the voluntary early retirement program | 10 | |
Global Competitiveness Program | Severance and Other Employee Benefit Costs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 45 | 0 |
Charges incurred | 22 | 72 |
Cash payments | (64) | (17) |
Pension liability | (10) | |
Ending balance | $ 3 | $ 45 |
BUSINESS ACQUISITIONS AND DIS_3
BUSINESS ACQUISITIONS AND DISPOSITIONS - LODERS ACQUISITION (Details) - USD ($) | Mar. 01, 2018 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||||||||||||
Goodwill | $ 727,000,000 | $ 515,000,000 | $ 727,000,000 | $ 727,000,000 | $ 515,000,000 | $ 373,000,000 | |||||||
Net income | (58,000,000) | $ 374,000,000 | $ (10,000,000) | $ (19,000,000) | (53,000,000) | $ 92,000,000 | $ 87,000,000 | $ 48,000,000 | 287,000,000 | 174,000,000 | 767,000,000 | ||
Edible Oil Products | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Goodwill | $ 318,000,000 | 94,000,000 | 318,000,000 | 318,000,000 | 94,000,000 | $ 78,000,000 | |||||||
Loders | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Interest acquired (as a percent) | 70.00% | ||||||||||||
Purchase price in cash | $ 980,000,000 | ||||||||||||
Goodwill | 242,000,000 | ||||||||||||
Goodwill expected to be tax deductible | 0 | ||||||||||||
Decrease in goodwill as a result of measurement period adjustment | $ 21,000,000 | ||||||||||||
Fair value of noncontrolling interest | $ 450,000,000 | ||||||||||||
Loders | Loders | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Ownership interest by minority shareholder | 30.00% | ||||||||||||
Senior Notes | Loders | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Aggregate principal amount | $ 1,000,000,000 | $ 1,000,000,000 | |||||||||||
Acquisition-related costs | Loders | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Net income | $ 19,000,000 |
BUSINESS ACQUISITIONS AND DIS_4
BUSINESS ACQUISITIONS AND DISPOSITIONS - ASSETS ACQUIRED AND LIABILITIES ASSUMED (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Mar. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 727 | $ 515 | $ 373 | |
Loders | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 82 | |||
Accounts receivable | 146 | |||
Inventories | 406 | |||
Other current assets | 66 | |||
Property, plant and equipment | 411 | |||
Intangible assets | 464 | |||
Goodwill | 242 | |||
Total assets | 1,817 | |||
Accounts payable | (109) | |||
Other current liabilities | (100) | |||
Deferred income taxes | (143) | |||
Noncurrent liabilities | (35) | |||
Total liabilities | (387) | |||
Redeemable noncontrolling interest | (450) | |||
Net assets acquired | $ 980 |
BUSINESS ACQUISITIONS AND DIS_5
BUSINESS ACQUISITIONS AND DISPOSITIONS - INTANGIBLE ASSETS ACQUIRED (Details) - Loders $ in Millions | Mar. 01, 2018USD ($) |
Business Acquisition [Line Items] | |
Intangible assets | $ 464 |
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 | $ 26 |
Other | |
Business Acquisition [Line Items] | |
Intangible assets | $ 2 |
BUSINESS ACQUISITIONS AND DIS_6
BUSINESS ACQUISITIONS AND DISPOSITIONS - PRO FORMA INFORMATION (Details) - USD ($) $ in Millions | 10 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||
Net sales since acquisition date | $ 1,331 | ||
Loders | |||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||
Income (loss) from continuing operations since acquisition date | $ 3 | ||
Net sales | $ 46,047 | $ 47,588 | |
Income (loss) from continuing operations | $ 298 | $ 129 |
BUSINESS ACQUISITIONS AND DIS_7
BUSINESS ACQUISITIONS AND DISPOSITIONS - OTHER ACQUISITIONS (Details) $ in Millions | Jan. 30, 2018USD ($)facility | Feb. 28, 2017USD ($)facility | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Business Acquisition [Line Items] | |||||
Goodwill | $ 727 | $ 515 | $ 373 | ||
Minsa Corporation | |||||
Business Acquisition [Line Items] | |||||
Purchase price | $ 75 | ||||
Number of corn mills | facility | 2 | ||||
Property, plant and equipment | $ 37 | ||||
Finite-lived intangibles assets | 20 | ||||
Goodwill | 19 | ||||
Other assets and liabilities, net | $ (1) | ||||
Cargill's two oilseed processing plants | |||||
Business Acquisition [Line Items] | |||||
Purchase price | $ 322 | ||||
Property, plant and equipment | 109 | ||||
Finite-lived intangibles assets | 7 | ||||
Goodwill | $ 103 | ||||
Number of oilseed processing plants and operations | facility | 2 | ||||
Other assets and liabilities, net | $ 103 |
BUSINESS ACQUISITIONS AND DIS_8
BUSINESS ACQUISITIONS AND DISPOSITIONS - DISPOSITIONS (Details) - USD ($) $ in Millions | Nov. 30, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Dispositions | ||||
Gain (loss), net on disposition of equity interests/subsidiaries | $ (26) | $ 9 | $ 122 | |
Terminal Fronteira Norte Logstica S.A.("TFN") | Held for sale | ||||
Dispositions | ||||
Ownership interest sold as per agreement (as a percent) | 50.00% | |||
Total consideration in cash | $ 145 | |||
Gain (loss), net on disposition of equity interests/subsidiaries | $ 90 | |||
Vietnam crush operations | ||||
Dispositions | ||||
Percentage of ownership after disposed | 45.00% | |||
TFN | ||||
Dispositions | ||||
Ownership interest (as a percent) | 50.00% | |||
Quang Dung | Vietnam crush operations | ||||
Dispositions | ||||
Ownership interest (as a percent) | 10.00% | |||
Wilmar International Limited | Vietnam crush operations | ||||
Dispositions | ||||
Gain (loss), net on disposition of equity interests/subsidiaries | $ 30 | |||
Percentage of ownership after disposed | 45.00% | |||
Cash proceeds from sale of ownership interest | $ 33 |
TRADE STRUCTURED FINANCE PROG_2
TRADE STRUCTURED FINANCE PROGRAM (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
TRADE STRUCTURED FINANCE PROGRAM | |||
Net return from activities including fair value changes | $ 30,000,000 | $ 33,000,000 | |
Weighted-average interest rate of time deposits (as a percent) | 3.76% | 2.98% | |
Total net proceeds from issuances of LCs | $ 4,657,000,000 | $ 8,174,000,000 | $ 7,191,000,000 |
Trade Accounts Receivable/ Payable, Net | |||
TRADE STRUCTURED FINANCE PROGRAM | |||
Face value of time deposits, LCs, and foreign exchange contracts | 0 | 1,196,000,000 | |
Time deposits and LCs presented net on the consolidated balance sheets | |||
TRADE STRUCTURED FINANCE PROGRAM | |||
Face value of time deposits, LCs, and foreign exchange contracts | $ 4,729,000,000 | $ 6,321,000,000 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
INVENTORIES | ||
Inventories | $ 5,871 | $ 5,074 |
Agribusiness | ||
INVENTORIES | ||
Inventories | 4,551 | 4,022 |
Readily marketable inventories at fair value | 4,365 | 3,865 |
Agribusiness | Merchandising Activities | ||
INVENTORIES | ||
Readily marketable inventories at fair value | 3,300 | 2,694 |
Edible Oil Products | ||
INVENTORIES | ||
Inventories | 742 | 458 |
Readily marketable inventories at fair value | 88 | 115 |
Milling Products | ||
INVENTORIES | ||
Inventories | 220 | 196 |
Sugar and Bioenergy | ||
INVENTORIES | ||
Inventories | 280 | 333 |
Readily marketable inventories at fair value | 79 | 76 |
Sugar and Bioenergy | Merchandising Activities | ||
INVENTORIES | ||
Readily marketable inventories at fair value | 74 | 73 |
Fertilizer | ||
INVENTORIES | ||
Inventories | $ 78 | $ 65 |
OTHER CURRENT ASSETS - COMPONEN
OTHER CURRENT ASSETS - COMPONENTS OF OTHER CURRENT ASSETS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Current Assets: | |||
Unrealized gains on derivative contracts, at fair value | $ 1,071 | $ 910 | |
Prepaid commodity purchase contracts | 253 | 282 | |
Secured advances to suppliers, net | 257 | 412 | |
Recoverable taxes, net | 500 | 488 | |
Margin deposits | 348 | 258 | |
Marketable securities, at fair value and other short-term investments | 162 | 213 | |
Deferred purchase price receivable, at fair value (3) | 128 | 107 | |
Income taxes receivable | 102 | 192 | |
Prepaid expenses | 165 | 125 | |
Other | 185 | 240 | |
Total | 3,171 | 3,227 | |
Allowance on secured advance to farmers | 1 | 1 | |
Interest earned on secured advances to suppliers | $ 30 | $ 44 | $ 38 |
OTHER CURRENT ASSETS - MARKETAB
OTHER CURRENT ASSETS - MARKETABLE SECURITIES AND OTHER SHORT-TERM INVESTMENTS (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Marketable Securities and Other Short-Term Investments | ||
Total marketable securities and other short-term investments | $ 162 | $ 213 |
Available for sale securities | 3 | |
Trading | 144 | 209 |
Other short-term investments | 18 | 1 |
Foreign government securities | ||
Marketable Securities and Other Short-Term Investments | ||
Total marketable securities and other short-term investments | 55 | 145 |
Corporate debt securities | ||
Marketable Securities and Other Short-Term Investments | ||
Total marketable securities and other short-term investments | 91 | 59 |
Certificate of deposits/time deposits | ||
Marketable Securities and Other Short-Term Investments | ||
Total marketable securities and other short-term investments | 15 | 0 |
Other | ||
Marketable Securities and Other Short-Term Investments | ||
Total marketable securities and other short-term investments | $ 1 | $ 9 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment | |||
Gross book value | $ 9,885 | $ 9,912 | |
Less: accumulated depreciation and depletion | (4,684) | (4,602) | |
Total property, plant and equipment, net | 5,201 | 5,310 | |
Capitalized expenditures | 490 | 633 | $ 810 |
Capitalized interest on construction in progress | 4 | 6 | 9 |
Depreciation and depletion expense | 565 | 580 | $ 517 |
Land | |||
Property, Plant and Equipment | |||
Gross book value | 403 | 390 | |
Biological assets | |||
Property, Plant and Equipment | |||
Gross book value | 663 | 709 | |
Buildings | |||
Property, Plant and Equipment | |||
Gross book value | 2,139 | 2,116 | |
Machinery and equipment | |||
Property, Plant and Equipment | |||
Gross book value | 5,664 | 5,601 | |
Furniture, fixtures and other | |||
Property, Plant and Equipment | |||
Gross book value | 581 | 579 | |
Construction in progress | |||
Property, Plant and Equipment | |||
Gross book value | $ 435 | $ 517 |
GOODWILL (Details)
GOODWILL (Details) $ in Millions | Feb. 28, 2017USD ($)facility | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Goodwill | |||
Goodwill, gross at beginning of period | $ 1,047 | $ 905 | |
Accumulated impairment losses | (532) | (532) | |
Goodwill at end of year | 515 | 373 | |
Goodwill acquired | 261 | 111 | |
Foreign currency translation | (49) | 31 | |
Goodwill, gross at end of period | 1,259 | 1,047 | |
Accumulated impairment losses | (532) | (532) | |
Goodwill at end of year | 727 | 515 | |
Cargill's two oilseed processing plants | |||
Goodwill | |||
Goodwill at end of year | $ 103 | ||
Number of oilseed processing plants and operations | facility | 2 | ||
Agribusiness | |||
Goodwill | |||
Goodwill, gross at beginning of period | 253 | 128 | |
Accumulated impairment losses | (2) | (2) | |
Goodwill at end of year | 251 | 126 | |
Goodwill acquired | 0 | 103 | |
Foreign currency translation | (18) | 22 | |
Goodwill, gross at end of period | 235 | 253 | |
Accumulated impairment losses | (2) | (2) | |
Goodwill at end of year | 233 | 251 | |
Edible Oil Products | |||
Goodwill | |||
Goodwill, gross at beginning of period | 107 | 91 | |
Accumulated impairment losses | (13) | (13) | |
Goodwill at end of year | 94 | 78 | |
Goodwill acquired | 242 | 8 | |
Foreign currency translation | (18) | 8 | |
Goodwill, gross at end of period | 331 | 107 | |
Accumulated impairment losses | (13) | (13) | |
Goodwill at end of year | 318 | 94 | |
Milling Products | |||
Goodwill | |||
Goodwill, gross at beginning of period | 172 | 171 | |
Accumulated impairment losses | (3) | (3) | |
Goodwill at end of year | 169 | 168 | |
Goodwill acquired | 19 | 0 | |
Foreign currency translation | (13) | 1 | |
Goodwill, gross at end of period | 178 | 172 | |
Accumulated impairment losses | (3) | (3) | |
Goodwill at end of year | 175 | 169 | |
Sugar and Bioenergy | |||
Goodwill | |||
Goodwill, gross at beginning of period | 514 | 514 | |
Accumulated impairment losses | (514) | (514) | |
Goodwill at end of year | 0 | 0 | |
Goodwill acquired | 0 | 0 | |
Foreign currency translation | 0 | 0 | |
Goodwill, gross at end of period | 514 | 514 | |
Accumulated impairment losses | (514) | (514) | |
Goodwill at end of year | 0 | 0 | |
Fertilizer | |||
Goodwill | |||
Goodwill, gross at beginning of period | 1 | 1 | |
Accumulated impairment losses | 0 | 0 | |
Goodwill at end of year | 1 | 1 | |
Goodwill acquired | 0 | 0 | |
Foreign currency translation | 0 | 0 | |
Goodwill, gross at end of period | 1 | 1 | |
Accumulated impairment losses | 0 | 0 | |
Goodwill at end of year | $ 1 | $ 1 |
OTHER INTANGIBLE ASSETS (Detail
OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Intangible Assets, Net | |||
Gross carrying amount: | $ 990 | $ 573 | |
Accumulated amortization: | (293) | (250) | |
Other intangible assets, net | 697 | 323 | |
Aggregate amortization expense | 57 | $ 29 | $ 31 |
Estimated future aggregate amortization expense, year one | 60 | ||
Estimated future aggregate amortization expense, year two | 60 | ||
Estimated future aggregate amortization expense, year three | 60 | ||
Estimated future aggregate amortization expense, year four | 60 | ||
Estimated future aggregate amortization expense, year five | $ 60 | ||
Minimum | |||
Other Intangible Assets, Net | |||
Weighted-average amortization period | 10 years | 3 years | |
Maximum | |||
Other Intangible Assets, Net | |||
Weighted-average amortization period | 38 years | 27 years | |
Edible Oil Products | |||
Other Intangible Assets, Net | |||
Finite-lived intangible assets acquired | $ 465 | $ 24 | |
Milling Products | |||
Other Intangible Assets, Net | |||
Finite-lived intangible assets acquired | 20 | ||
Agribusiness | |||
Other Intangible Assets, Net | |||
Finite-lived intangible assets acquired | 8 | ||
Trademarks/brands | |||
Other Intangible Assets, Net | |||
Gross carrying amount: | 235 | 211 | |
Accumulated amortization: | (106) | (109) | |
Finite-lived intangible assets acquired | 55 | 21 | |
Licenses | |||
Other Intangible Assets, Net | |||
Gross carrying amount: | 12 | 7 | |
Accumulated amortization: | (10) | (5) | |
Port rights | |||
Other Intangible Assets, Net | |||
Gross carrying amount: | 141 | 155 | |
Accumulated amortization: | (37) | (31) | |
Customer Relationships | |||
Other Intangible Assets, Net | |||
Gross carrying amount: | 372 | 106 | |
Accumulated amortization: | (54) | (34) | |
Finite-lived intangible assets acquired | 282 | ||
Patents | |||
Other Intangible Assets, Net | |||
Gross carrying amount: | 135 | 23 | |
Accumulated amortization: | (32) | (22) | |
Finite-lived intangible assets acquired | 120 | ||
Other | |||
Other Intangible Assets, Net | |||
Gross carrying amount: | 95 | 71 | |
Accumulated amortization: | (54) | (49) | |
Finite-lived intangible assets acquired | $ 28 | $ 11 |
IMPAIRMENTS - CHARGES (Details)
IMPAIRMENTS - CHARGES (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)investment | Dec. 31, 2016USD ($) | |
Impairments | |||
Pre-tax, impairment charges | $ 18 | $ 52 | $ 87 |
Impairment of other investments | 0 | 17 | 59 |
Patents | |||
Impairments | |||
Intangible asset impairment | 7 | ||
Agriculture patents | |||
Impairments | |||
Intangible asset impairment | 12 | ||
Fixed assets and various machinery and equipment | Brazil | |||
Impairments | |||
Property, plant and equipment impairment | 6 | ||
Agribusiness | |||
Impairments | |||
Pre-tax, impairment charges | 12 | 41 | 29 |
Impairment of investments | 15 | ||
Agribusiness | Property, plant and equipment at a port | Poland | |||
Impairments | |||
Property, plant and equipment impairment | 10 | ||
Agribusiness | Fixed assets and various machinery and equipment | Brazil | |||
Impairments | |||
Property, plant and equipment impairment | 1 | ||
Agribusiness | Property, plant and equipment of feedmills, a port, and various machinery and equipment in Brazil | |||
Impairments | |||
Property, plant and equipment impairment | 25 | ||
Agribusiness and Sugar and Bioenergy | |||
Impairments | |||
Impairment of investments | $ 17 | ||
Number of investment impaired | investment | 2 | ||
Sugar and Bioenergy | |||
Impairments | |||
Pre-tax, impairment charges | 5 | $ 7 | 46 |
Impairment of other investments | 44 | ||
Sugar and Bioenergy | Fixed assets and various machinery and equipment | Brazil | |||
Impairments | |||
Property, plant and equipment impairment | 5 | ||
Fertilizer | |||
Impairments | |||
Pre-tax, impairment charges | 9 | ||
Fertilizer | Argentina | |||
Impairments | |||
Property, plant and equipment impairment | 9 | ||
Selling, general and administrative expenses | |||
Impairments | |||
Pre-tax, impairment charges | 7 | 19 | 6 |
Cost of goods sold | |||
Impairments | |||
Pre-tax, impairment charges | 10 | 16 | 9 |
Other income (expense) | |||
Impairments | |||
Pre-tax, impairment charges | $ 1 | $ 17 | $ 72 |
INVESTMENTS IN AFFILIATES (Deta
INVESTMENTS IN AFFILIATES (Details) | Dec. 31, 2018 | Nov. 30, 2016 |
Agricola Alvorada S.A. | Agribusiness | ||
Investments in Affiliates | ||
Ownership interest (as a percent) | 37.00% | |
Vietnam crush operations | Quang Dung | ||
Investments in Affiliates | ||
Ownership interest (as a percent) | 10.00% | |
Vietnam crush operations | Agribusiness | Wilmar International Limited | ||
Investments in Affiliates | ||
Ownership interest (as a percent) | 45.00% | |
Vietnam crush operations | Agribusiness | Quang Dung | ||
Investments in Affiliates | ||
Ownership interest (as a percent) | 10.00% | |
Terminal Fronteira Norte Logstica S.A.("TFN") | Agribusiness | ||
Investments in Affiliates | ||
Ownership interest (as a percent) | 50.00% | |
Navegacoes Unidas Tapajos S.A. | Agribusiness | ||
Investments in Affiliates | ||
Ownership interest (as a percent) | 50.00% | |
Terminais do Graneis do Guaruja("TGG") | Agribusiness | ||
Investments in Affiliates | ||
Ownership interest (as a percent) | 57.00% | |
G3 | Agribusiness | ||
Investments in Affiliates | ||
Ownership interest (as a percent) | 25.00% | |
Caiasa - Complejo Agroindustrial Angostura S.A | Agribusiness | ||
Investments in Affiliates | ||
Ownership interest (as a percent) | 33.30% | |
T6 port facility | Agribusiness | ||
Investments in Affiliates | ||
Ownership interest (as a percent) | 40.00% | |
T6 Industrial crushing facility | Agribusiness | ||
Investments in Affiliates | ||
Ownership interest (as a percent) | 50.00% | |
ProMaiz | Sugar and Bioenergy | ||
Investments in Affiliates | ||
Ownership interest (as a percent) | 50.00% | |
Southwest Iowa Renewable Energy, LLC | Sugar and Bioenergy | ||
Investments in Affiliates | ||
Ownership interest (as a percent) | 25.00% |
OTHER NON-CURRENT ASSETS - COMP
OTHER NON-CURRENT ASSETS - COMPOSITION (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Other Assets, Noncurrent [Abstract] | ||
Recoverable taxes, net | $ 112 | $ 155 |
Judicial deposits | 115 | 140 |
Other long-term receivables | 8 | 12 |
Income taxes receivable | 221 | 307 |
Long-term investments | 91 | 66 |
Affiliate loans receivable | 29 | 24 |
Long-term receivables from farmers in Brazil, net | 93 | 131 |
Other | 154 | 193 |
Total | 823 | 1,028 |
Allowance for recoverable taxes | $ 27 | $ 28 |
Minimum initial maturity of affiliate loans receivable | 1 year |
OTHER NON-CURRENT ASSETS - RECE
OTHER NON-CURRENT ASSETS - RECEIVABLES FROM FARMERS IN BRAZIL (Details) - Long-term receivables - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Aging of non-defaulted and renegotiated amounts | |||
Average recorded investment in long-term receivables | $ 215 | $ 253 | |
Recorded Investment | |||
Total | 199 | 244 | |
Allowance | 106 | 113 | $ 109 |
Legal collection process | |||
Recorded Investment | |||
For which an allowance has been provided | 105 | 98 | |
For which no allowance has been provided | 51 | 76 | |
Allowance | 89 | 91 | |
Renegotiated amounts | |||
Recorded Investment | |||
For which an allowance has been provided | 17 | 25 | |
For which no allowance has been provided | 10 | 17 | |
Allowance | 17 | 22 | |
Other long-term receivables | |||
Recorded Investment | |||
Other long-term receivables | $ 16 | $ 28 |
OTHER NON-CURRENT ASSETS - ALLO
OTHER NON-CURRENT ASSETS - ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) - Long-term receivables - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for Doubtful Accounts Related to Long Term Receivables | ||
Beginning balance | $ 113 | $ 109 |
Bad debt provisions | 20 | 19 |
Recoveries | (8) | (12) |
Write-offs | (2) | (1) |
Foreign currency translation | (17) | (2) |
Ending balance | $ 106 | $ 113 |
OTHER CURRENT LIABILITIES (Deta
OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Other Liabilities Disclosure [Abstract] | ||
Accrued liabilities | $ 618 | $ 606 |
Unrealized losses on derivative contracts at fair value | 1,192 | 897 |
Advances on sales | 405 | 406 |
Other | 287 | 277 |
Total | $ 2,502 | $ 2,186 |
INCOME TAXES - COMPONENTS (Deta
INCOME TAXES - COMPONENTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Components of Income From Operations Before Income Tax | |||
United States | $ 233 | $ 21 | $ 102 |
Non-United States | 223 | 209 | 894 |
Total | 456 | 230 | 996 |
Current: | |||
United States | 33 | 45 | (76) |
Non-United States | 140 | 34 | 170 |
Total | 173 | 79 | 94 |
Deferred: | |||
United States | 4 | 20 | 38 |
Non-United States | 2 | (43) | 88 |
Total | 6 | (23) | 126 |
Total | $ 179 | $ 56 | $ 220 |
INCOME TAXES - INCOME TAX RATE
INCOME TAXES - INCOME TAX RATE RECONCILIATION (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Income Tax (Expense) Benefit | |||
Income tax rate | $ 456 | $ 230 | $ 996 |
Income tax rate (as percent) | 21.00% | 35.00% | 35.00% |
Income tax expense at the U.S. Federal tax rate | $ 96 | $ 80 | $ 348 |
Adjustments to derive effective tax rate: | |||
Foreign earnings taxed at different statutory rates | 24 | (38) | (73) |
Valuation allowances | 114 | 43 | (44) |
Fiscal incentives | (43) | (42) | (34) |
Foreign exchange on monetary items | 24 | (9) | 5 |
Tax rate changes | 4 | (62) | 4 |
Non-deductible expenses | 8 | 27 | 3 |
Uncertain tax positions | 22 | (48) | 89 |
Deferred balance adjustments | 0 | (4) | 0 |
Equity distributions, net | (31) | 0 | 0 |
Transition tax | (15) | 105 | 0 |
Tax exempt investments | 0 | (14) | (12) |
Tax credits | (5) | (8) | (89) |
Incremental tax on future distributions | (26) | 27 | 0 |
State taxes | 8 | (4) | 5 |
Other | (1) | 3 | 18 |
Total | $ 179 | $ 56 | $ 220 |
INCOME TAXES - DEFERRED TAX ASS
INCOME TAXES - DEFERRED TAX ASSETS AND LIABILITIES (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred income tax assets: | ||
Net operating loss carryforwards | $ 781 | $ 964 |
Employee benefits | 116 | 106 |
Tax credit carryforwards | 12 | 13 |
Inventories | 0 | 50 |
Accrued expenses and other | 340 | 388 |
Total deferred tax assets | 1,249 | 1,521 |
Less valuation allowances | (766) | (900) |
Deferred tax assets, net of valuation allowance | 483 | 621 |
Deferred income tax liabilities: | ||
Property, plant and equipment | 233 | 251 |
Undistributed earnings of affiliates | 6 | 35 |
Investments | 16 | 17 |
Intangibles | 100 | 24 |
Inventories | 26 | 0 |
Total deferred tax liabilities | 381 | 327 |
Net deferred tax assets | 102 | 294 |
Deferred tax liability related to unremitted earnings not considered indefinitely reinvested | 6 | 35 |
Foreign unremitted earnings indefinitely reinvested | 136 | |
Income tax withholdings on undistributed earnings if earnings were to be distributed | 27 | |
Net operating loss carryforwards | 2,909 | |
Indefinite-lived loss carryforwards | $ 2,340 | |
Maximum percentage of annual utilization of carryforward of loss | 30.00% | |
Period of realization loss carryforwards | 5 years | |
Valuation allowances | $ 766 | $ 900 |
Decrease in valuation allowance | 134 | |
Current year increase in valuation allowance | 114 | |
Brazil | ||
Deferred income tax assets: | ||
Less valuation allowances | (150) | |
Deferred income tax liabilities: | ||
Indefinite-lived loss carryforwards | 1,434 | |
Valuation allowances | 150 | |
Foreign currency translation | $ 98 |
INCOME TAXES - UNRECOGNIZED TAX
INCOME TAXES - UNRECOGNIZED TAX BENEFITS (Details) R$ in Millions, $ in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2018BRL (R$) | Dec. 31, 2018ARS ($) | Dec. 31, 2015USD ($) | |
Income Tax Examination | ||||||
Unrecognized tax benefits | $ 390 | $ 421 | $ 409 | $ 51 | ||
Interest and penalty charges in income tax expense (benefit) | (4) | (9) | 10 | |||
Accrued interest and penalties | 23 | 27 | ||||
Unrecognized tax benefits, recognized by the end of 2018 | 40 | |||||
Cash income tax payments | (1) | 89 | $ 144 | |||
Brazil | Income tax examination through year 2012 | ||||||
Income Tax Examination | ||||||
Unrecognized tax benefits | 9 | R$ 34 | ||||
Total proposed adjustments | 1,106 | R$ 4284 | ||||
Argentina | Income tax examination 2006 to 2009 | ||||||
Income Tax Examination | ||||||
Total proposed adjustments | 34 | $ 1,276 | ||||
Accrued interest | 113 | $ 4,246 | ||||
Other non-current liabilities | ||||||
Income Tax Examination | ||||||
Unrecognized tax benefits | 120 | 99 | ||||
Current liabilities | ||||||
Income Tax Examination | ||||||
Unrecognized tax benefits | $ 0 | $ 7 |
INCOME TAXES - RECONCILIATION O
INCOME TAXES - RECONCILIATION OF UNRECOGNIZED TAX BENEFITS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits | |||
Balance at the beginning of the period | $ 421 | $ 409 | $ 51 |
Additions based on tax positions related to the current year | 41 | 34 | 9 |
Additions based on acquisitions | 0 | 0 | 2 |
Additions based on tax positions related to prior years | 21 | 13 | 374 |
Reductions for tax positions of prior years | (54) | (43) | 0 |
Settlement or clarification from tax authorities | (1) | 0 | (1) |
Expiration of statute of limitations | (19) | (32) | (9) |
Foreign currency translation | (19) | 40 | (17) |
Balance at the end of the period | $ 390 | $ 421 | $ 409 |
INCOME TAXES - TAX ACT (Details
INCOME TAXES - TAX ACT (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Provisional Transition Tax charge | $ 60 | |
Tax benefit related to reversal of withholding taxes on future repatriation earnings | $ 26 |
FINANCIAL INSTRUMENTS AND FAI_3
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - ASSETS AND LIABILITIES AT FAIR VALUE (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Assets: | ||
Unrealized gain | $ 1,071 | $ 910 |
Deferred purchase price receivable (Note 18) | 128 | 107 |
Liabilities: | ||
Trade accounts payable | 441 | 583 |
Unrealized loss | 1,192 | 897 |
Other non-current assets | ||
Unrealized gains (losses) on designated and undesignated derivative contracts | ||
Unrealized gains (losses) on derivative contracts | 3 | 0 |
Other non-current liabilities | ||
Unrealized gains (losses) on designated and undesignated derivative contracts | ||
Unrealized gains (losses) on derivative contracts | 33 | 31 |
Assets and liabilities measured at fair value on a recurring basis | ||
Assets: | ||
Readily marketable inventories (Note 5) | 4,532 | 4,056 |
Total assets | 5,899 | 5,322 |
Liabilities: | ||
Trade accounts payable | 441 | 583 |
Total liabilities | 1,666 | 1,511 |
Assets and liabilities measured at fair value on a recurring basis | Hedge accounting | Interest rate | ||
Assets: | ||
Unrealized gain | 4 | 0 |
Liabilities: | ||
Unrealized loss | 33 | 31 |
Assets and liabilities measured at fair value on a recurring basis | Hedge accounting | Foreign exchange | ||
Assets: | ||
Unrealized gain | 6 | 18 |
Liabilities: | ||
Unrealized loss | 32 | 2 |
Assets and liabilities measured at fair value on a recurring basis | Economic hedges | ||
Assets: | ||
Deferred purchase price receivable (Note 18) | 128 | 107 |
Other | 165 | 249 |
Assets and liabilities measured at fair value on a recurring basis | Economic hedges | Interest rate | ||
Assets: | ||
Unrealized gain | 2 | 4 |
Liabilities: | ||
Unrealized loss | 9 | 1 |
Assets and liabilities measured at fair value on a recurring basis | Economic hedges | Foreign exchange | ||
Assets: | ||
Unrealized gain | 467 | 321 |
Liabilities: | ||
Unrealized loss | 467 | 431 |
Assets and liabilities measured at fair value on a recurring basis | Economic hedges | Commodities | ||
Assets: | ||
Unrealized gain | 553 | 523 |
Liabilities: | ||
Unrealized loss | 621 | 432 |
Assets and liabilities measured at fair value on a recurring basis | Economic hedges | Freight | ||
Assets: | ||
Unrealized gain | 12 | 26 |
Liabilities: | ||
Unrealized loss | 19 | 18 |
Assets and liabilities measured at fair value on a recurring basis | Economic hedges | Energy | ||
Assets: | ||
Unrealized gain | 30 | 18 |
Liabilities: | ||
Unrealized loss | 44 | 13 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | ||
Assets: | ||
Readily marketable inventories (Note 5) | 0 | 0 |
Total assets | 231 | 166 |
Liabilities: | ||
Trade accounts payable | 0 | 0 |
Total liabilities | 208 | 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 (Note 18) | 0 | 0 |
Other | 67 | 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 | 0 | 0 |
Liabilities: | ||
Unrealized loss | 0 | 1 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Economic hedges | Commodities | ||
Assets: | ||
Unrealized gain | 128 | 115 |
Liabilities: | ||
Unrealized loss | 152 | 141 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Economic hedges | Freight | ||
Assets: | ||
Unrealized gain | 6 | 18 |
Liabilities: | ||
Unrealized loss | 13 | 15 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Economic hedges | Energy | ||
Assets: | ||
Unrealized gain | 30 | 18 |
Liabilities: | ||
Unrealized loss | 43 | 9 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | ||
Assets: | ||
Readily marketable inventories (Note 5) | 4,286 | 3,691 |
Total assets | 5,398 | 4,764 |
Liabilities: | ||
Trade accounts payable | 394 | 467 |
Total liabilities | 1,381 | 1,204 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Hedge accounting | Interest rate | ||
Assets: | ||
Unrealized gain | 4 | 0 |
Liabilities: | ||
Unrealized loss | 33 | 31 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Hedge accounting | Foreign exchange | ||
Assets: | ||
Unrealized gain | 6 | 18 |
Liabilities: | ||
Unrealized loss | 32 | 2 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Economic hedges | ||
Assets: | ||
Deferred purchase price receivable (Note 18) | 128 | 107 |
Other | 98 | 234 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Economic hedges | Interest rate | ||
Assets: | ||
Unrealized gain | 2 | 4 |
Liabilities: | ||
Unrealized loss | 9 | 1 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Economic hedges | Foreign exchange | ||
Assets: | ||
Unrealized gain | 467 | 321 |
Liabilities: | ||
Unrealized loss | 467 | 430 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Economic hedges | Commodities | ||
Assets: | ||
Unrealized gain | 407 | 389 |
Liabilities: | ||
Unrealized loss | 446 | 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 | 0 | 2 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | ||
Assets: | ||
Readily marketable inventories (Note 5) | 246 | 365 |
Total assets | 270 | 392 |
Liabilities: | ||
Trade accounts payable | 47 | 116 |
Total liabilities | 77 | 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 (Note 18) | 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 | 18 | 19 |
Liabilities: | ||
Unrealized loss | 23 | 20 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Economic hedges | Freight | ||
Assets: | ||
Unrealized gain | 6 | 8 |
Liabilities: | ||
Unrealized loss | 6 | 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 FAI_4
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - RECONCILIATION FOR ASSETS AND LIABILITIES MEASURE AT FAIR VALUE USING LEVEL 3 (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Total | ||
Balance at beginning of period | $ 251 | $ 142 |
Purchases | 1,488 | 1,093 |
Sales | (2,585) | (2,041) |
Issuances | (11) | (7) |
Settlements | 447 | 508 |
Transfers into Level 3 | 685 | 633 |
Transfers out of Level 3 | (241) | (201) |
Balance at end of period | 193 | 251 |
Cost of goods sold | ||
Total | ||
Total gains and losses (realized/unrealized) included in cost of goods sold | 159 | 124 |
Derivatives, Net | ||
Derivatives, Net | ||
Balance at beginning of period | 2 | (51) |
Purchases | 12 | 11 |
Sales | 0 | 0 |
Issuances | (11) | (7) |
Settlements | 13 | 67 |
Transfers into Level 3 | (10) | (9) |
Transfers out of Level 3 | (1) | 22 |
Balance at end of period | (6) | 2 |
Total | ||
Change in unrealized gains (losses) relating to Level 3 assets and liabilities | (24) | 1 |
Derivatives, Net | Cost of goods sold | ||
Derivatives, Net | ||
Total gains and losses (realized/unrealized) included in cost of goods sold | (11) | (31) |
Readily Marketable Inventories | ||
Readily Marketable Inventories | ||
Balance at beginning of period | 365 | 237 |
Purchases | 1,770 | 1,551 |
Sales | (2,585) | (2,041) |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Transfers into Level 3 | 774 | 701 |
Transfers out of Level 3 | (222) | (225) |
Balance at end of period | 246 | 365 |
Total | ||
Change in unrealized gains (losses) relating to Level 3 assets and liabilities | 72 | 11 |
Readily Marketable Inventories | Cost of goods sold | ||
Readily Marketable Inventories | ||
Total gains and losses (realized/unrealized) included in cost of goods sold | 144 | 142 |
Trade Accounts Receivable/ Payable, Net | ||
Trade Accounts Receivable/ Payable, Net | ||
Balance at beginning of period | (116) | (44) |
Purchases | (294) | (469) |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | 434 | 441 |
Transfers into Level 3 | (79) | (59) |
Transfers out of Level 3 | (18) | 2 |
Balance at end of period | (47) | (116) |
Total | ||
Change in unrealized gains (losses) relating to Level 3 assets and liabilities | 0 | 0 |
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 | $ 26 | $ 13 |
FINANCIAL INSTRUMENTS AND FAI_5
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - DERIVATIVE POSITIONS (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2018USD ($)MMBTUdayt | Dec. 31, 2017USD ($)MMBTUdayt | |
Interest rate | Long | Swaps | ||
Derivative | ||
Notional Amount | $ (3,349) | $ (2,317) |
Interest rate | Long | Futures | ||
Derivative | ||
Notional Amount | 0 | 0 |
Interest rate | Long | FRAs | ||
Derivative | ||
Notional Amount | (139) | (375) |
Interest rate | Short | Swaps | ||
Derivative | ||
Notional Amount | (111) | (1,236) |
Interest rate | Short | Futures | ||
Derivative | ||
Notional Amount | 0 | (2) |
Interest rate | Short | FRAs | ||
Derivative | ||
Notional Amount | (149) | 0 |
Foreign exchange | Long | Swaps | ||
Derivative | ||
Notional Amount | (127) | (192) |
Foreign exchange | Long | Futures | ||
Derivative | ||
Notional Amount | 0 | 0 |
Foreign exchange | Long | Forwards | ||
Derivative | ||
Notional Amount | (13,713) | (9,784) |
Foreign exchange | Long | Options | ||
Derivative | ||
Delta | 869 | 521 |
Foreign exchange | Short | Swaps | ||
Derivative | ||
Notional Amount | (535) | (148) |
Foreign exchange | Short | Futures | ||
Derivative | ||
Notional Amount | (16) | (58) |
Foreign exchange | Short | Forwards | ||
Derivative | ||
Notional Amount | (13,701) | (9,668) |
Foreign exchange | Short | Options | ||
Derivative | ||
Delta | $ 919 | $ 471 |
Commodities | Long | Swaps | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 0 | 65,045 |
Commodities | Long | Futures | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 4,136,525 | 4,520,267 |
Commodities | Long | Forwards | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 25,523,840 | 23,438,004 |
Commodities | Long | Options | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 718,709 | 828,296 |
Commodities | Short | Swaps | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 9,908,728 | 5,279,181 |
Commodities | Short | Futures | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 0 | 0 |
Commodities | Short | Forwards | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 29,314,930 | 30,055,331 |
Commodities | Short | Options | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 0 | 0 |
Freight | Long | Forwards | ||
Derivative | ||
Nonmonetary notional amount of derivatives | day | 0 | 0 |
Freight | Long | Options | ||
Derivative | ||
Nonmonetary notional amount of derivatives | day | 302 | 892 |
Freight | Short | Forwards | ||
Derivative | ||
Nonmonetary notional amount of derivatives | day | 90 | 3,617 |
Freight | Short | Options | ||
Derivative | ||
Nonmonetary notional amount of derivatives | day | 0 | 0 |
Natural Gas | Long | Swaps | ||
Derivative | ||
Nonmonetary notional amount of derivatives | MMBTU | 1,205,687 | 3,519,668 |
Natural Gas | Long | Futures | ||
Derivative | ||
Nonmonetary notional amount of derivatives | MMBTU | 2,268,190 | 2,691,350 |
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 | 188,800 | 223,600 |
Energy - other | Long | Futures | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 0 | 1,394 |
Energy - other | Long | Forwards | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 5,536,290 | 5,534,290 |
Energy - other | Short | Swaps | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 0 | 0 |
Energy - other | Short | Futures | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 29,367 | 0 |
Energy - other | Short | Forwards | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 0 | 0 |
Other | Long | Swaps and futures | ||
Derivative | ||
Notional Amount | $ (52) | $ 0 |
Other | Short | Swaps and futures | ||
Derivative | ||
Notional Amount | 0 | 0 |
Fair Value Hedges | Interest rate | ||
Derivative | ||
Carrying value of hedged debt | 2,229 | 2,071 |
Cumulative adjustment to long-term debt from application of hedge accounting | (29) | (31) |
Notional Amount | (2,266) | (2,109) |
Fair Value Hedges | Cross currency swap | ||
Derivative | ||
Carrying value of hedged debt | 312 | 0 |
Cumulative adjustment to long-term debt from application of hedge accounting | 0 | 0 |
Notional Amount | (313) | 0 |
Cash Flow Hedges | Foreign exchange | ||
Derivative | ||
Amounts expected to be reclassified from AOCI to earnings in the next twelve months | 2 | |
Notional Amount | (50) | (237) |
Net Investment Hedges | ||
Derivative | ||
Carrying value of non-derivative hedging instrument | 912 | 725 |
Net Investment Hedges | Foreign exchange | ||
Derivative | ||
Notional Amount | $ (1,888) | $ (1,000) |
FINANCIAL INSTRUMENTS AND FAI_6
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - EFFECT OF DERIVATIVE INSTRUMENTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments, Gain (Loss) | |||
Cash flow hedge of foreign currency risk | $ 0 | $ 37 | $ 16 |
Cash Flow Hedges | |||
Derivative Instruments, Gain (Loss) | |||
Cash flow hedge of foreign currency risk | 0 | 37 | 16 |
Cost of goods sold | |||
Derivative Instruments, Gain (Loss) | |||
Gain (Loss) Recognized in Income on Derivative Instruments | 262 | 684 | 181 |
Interest expense | |||
Derivative Instruments, Gain (Loss) | |||
Gain (Loss) Recognized in Income on Derivative Instruments | (7) | 13 | 1 |
Foreign exchange gains (losses) | |||
Derivative Instruments, Gain (Loss) | |||
Gain (Loss) Recognized in Income on Derivative Instruments | 24 | 22 | 267 |
Foreign exchange | |||
Derivative Instruments, Gain (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) | 14 | 48 |
Foreign exchange | Fair Value Hedges | |||
Derivative Instruments, Gain (Loss) | |||
Gains and losses on derivatives used as hedges included in other comprehensive income (loss) during the period | 1 | 0 | 0 |
Foreign exchange | Net Investment Hedges | |||
Derivative Instruments, Gain (Loss) | |||
Gains and losses on derivatives used as hedges included in other comprehensive income (loss) during the period | 48 | (8) | (394) |
Foreign Exchange Debt | Net Investment Hedges | |||
Derivative Instruments, Gain (Loss) | |||
Foreign currency gains and losses on intercompany loans used as net investment hedges included in other comprehensive income (loss) during the period | 52 | (111) | 41 |
Hedge accounting | Foreign exchange | Net sales | |||
Derivative Instruments, Gain (Loss) | |||
Gain (loss) on hedge accounting | (2) | 0 | 0 |
Hedge accounting | Foreign exchange | Cost of goods sold | |||
Derivative Instruments, Gain (Loss) | |||
Gain (loss) on hedge accounting | 1 | 0 | 0 |
Hedge accounting | Foreign exchange | Foreign exchange gains (losses) | |||
Derivative Instruments, Gain (Loss) | |||
Gain (loss) on hedge accounting | (10) | 0 | 0 |
Hedge accounting | Interest rate | Interest expense | |||
Derivative Instruments, Gain (Loss) | |||
Gain (loss) on hedge accounting | (6) | 13 | 5 |
Economic hedges | Foreign exchange | Cost of goods sold | |||
Derivative Instruments, Gain (Loss) | |||
Gain (loss) on economic hedges | (220) | (1) | 772 |
Economic hedges | Foreign exchange | Foreign exchange gains (losses) | |||
Derivative Instruments, Gain (Loss) | |||
Gain (loss) on economic hedges | 34 | 22 | 267 |
Economic hedges | Commodities | Cost of goods sold | |||
Derivative Instruments, Gain (Loss) | |||
Gain (loss) on economic hedges | 506 | 676 | (618) |
Economic hedges | Other Contract | Cost of goods sold | |||
Derivative Instruments, Gain (Loss) | |||
Gain (loss) on economic hedges | (25) | 9 | 27 |
Economic hedges | Interest rate | Interest expense | |||
Derivative Instruments, Gain (Loss) | |||
Gain (loss) on economic hedges | $ (1) | $ 0 | $ (4) |
SHORT-TERM DEBT AND CREDIT FA_3
SHORT-TERM DEBT AND CREDIT FACILITIES (Details) - USD ($) | Dec. 14, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Lines of Credit: | |||
Short-term borrowings weighted-average interest rate (as a percent) | 6.98% | 9.84% | |
Short-term debt | $ 750,000,000 | $ 304,000,000 | |
Unsecured, variable interest rate | |||
Lines of Credit: | |||
Short-term debt | $ 750,000,000 | $ 304,000,000 | |
Unsecured, variable interest rate | Minimum | |||
Lines of Credit: | |||
Variable interest rate | 1.60% | 1.60% | |
Unsecured, variable interest rate | Maximum | |||
Lines of Credit: | |||
Variable interest rate | 66.00% | 66.00% | |
Unsecured local currency borrowings in high interest rate jurisdictions | |||
Lines of Credit: | |||
Short-term borrowings weighted-average interest rate (as a percent) | 23.61% | 15.03% | |
Short-term debt | $ 136,000,000 | $ 179,000,000 | |
2018 liquidity facility | |||
Lines of Credit: | |||
Maximum borrowing capacity | $ 600,000,000 | ||
Term of credit agreement | 5 years | ||
Borrowings outstanding | 0 | 0 | |
Commercial paper | |||
Lines of Credit: | |||
Commercial paper | 0 | ||
Bilateral short-term credit line | |||
Lines of Credit: | |||
Short-term debt | $ 0 | ||
Commercial paper | 0 | ||
Local bank line of credit | |||
Lines of Credit: | |||
Short-term debt | $ 750,000,000 |
LONG-TERM DEBT AND CREDIT FAC_3
LONG-TERM DEBT AND CREDIT FACILITIES - OUTSTANDING (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Long-term debt obligations | ||
Subtotal | $ 4,622 | $ 4,175 |
Less: Current portion of long-term debt | (419) | (15) |
Total long-term debt | 4,203 | 4,160 |
Secured debt | 17 | 24 |
Revolving credit facility expiring 2020 | ||
Long-term debt obligations | ||
Subtotal | 500 | 0 |
Term loan due 2019—three-month Yen LIBOR plus 0.75% (Tranche A) | ||
Long-term debt obligations | ||
Subtotal | $ 258 | $ 253 |
Term loan due 2019—three-month Yen LIBOR plus 0.75% (Tranche A) | Yen LIBOR | ||
Long-term debt obligations | ||
Basis spread on variable rate | 0.75% | 0.75% |
Term loan due 2019—fixed Yen interest rate of 0.96% (Tranche B) | ||
Long-term debt obligations | ||
Fixed interest rate | 0.96% | 0.96% |
Subtotal | $ 54 | $ 53 |
Term loan due 2019—three-month LIBOR plus 1.30% (Tranche C) | ||
Long-term debt obligations | ||
Subtotal | $ 85 | $ 85 |
Term loan due 2019—three-month LIBOR plus 1.30% (Tranche C) | LIBOR | ||
Long-term debt obligations | ||
Basis spread on variable rate | 1.30% | 1.30% |
8.50% Senior Notes due 2019 | ||
Long-term debt obligations | ||
Interest rate | 8.50% | 8.50% |
Subtotal | $ 0 | $ 599 |
3.50% Senior Notes due 2020 | ||
Long-term debt obligations | ||
Interest rate | 3.50% | 3.50% |
Subtotal | $ 498 | $ 497 |
3.00% Senior Notes due 2022 | ||
Long-term debt obligations | ||
Interest rate | 3.00% | 3.00% |
Subtotal | $ 397 | $ 396 |
1.85% Senior Notes due 2023—Euro | Euro | ||
Long-term debt obligations | ||
Interest rate | 1.85% | 1.85% |
Subtotal | $ 916 | $ 960 |
4.35% Senior Notes due 2024 | ||
Long-term debt obligations | ||
Interest rate | 4.35% | 4.35% |
Subtotal | $ 595 | $ 0 |
3.25% Senior Notes due 2026 | ||
Long-term debt obligations | ||
Interest rate | 3.25% | 3.25% |
Subtotal | $ 695 | $ 694 |
3.75% Senior Notes due 2027 | ||
Long-term debt obligations | ||
Interest rate | 3.75% | 3.75% |
Subtotal | $ 594 | $ 593 |
Other | ||
Long-term debt obligations | ||
Subtotal | $ 30 | $ 45 |
LONG-TERM DEBT AND CREDIT FAC_4
LONG-TERM DEBT AND CREDIT FACILITIES - FAIR VALUE (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Carrying Value | ||
Debt Disclosures | ||
Long-term debt, including current portion | $ 4,622 | $ 4,175 |
Fair value | Level 2 | ||
Debt Disclosures | ||
Long-term debt, including current portion | $ 4,584 | $ 4,337 |
LONG-TERM DEBT AND CREDIT FAC_5
LONG-TERM DEBT AND CREDIT FACILITIES - ACTIVITY (Details) | Dec. 14, 2018USD ($)term_extension | Sep. 10, 2018USD ($) | May 01, 2018USD ($) | Nov. 20, 2014USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Debt | ||||||
Debt instrument unused and available borrowing capacity amount | $ 4,515,000,000 | |||||
Long-term debt | 4,622,000,000 | $ 4,175,000,000 | ||||
Subsidiaries | Collateralized debt obligations | ||||||
Debt | ||||||
Land, property, equipment and investments mortgaged, net carrying value | 52,000,000 | |||||
Long-term debt | 26,000,000 | |||||
Senior Notes | Unsecured Senior Notes due 2024 | ||||||
Debt | ||||||
Aggregate principal amount | $ 600,000,000 | |||||
Interest rate | 4.35% | |||||
Net proceeds from issuance of debt | $ 594,000,000 | |||||
Senior Notes | Senior Notes due 2019 | ||||||
Debt | ||||||
Aggregate principal amount | $ 600,000,000 | |||||
Interest rate | 8.50% | |||||
Loss on extinguishment of debt | $ 24,000,000 | |||||
Revolving Credit Facility | ||||||
Debt | ||||||
Maximum borrowing capacity | $ 1,100,000,000 | $ 700,000,000 | $ 1,100,000,000 | |||
Term of credit agreement | 5 years | 5 years | 5 years | |||
Number of term extensions | term_extension | 2 | |||||
Extension term | 1 year | |||||
Additional borrowing capacity | $ 200,000,000 | $ 100,000,000 | ||||
Borrowings outstanding | $ 0 | |||||
Revolving Credit Facility | Minimum | ||||||
Debt | ||||||
Commitment fee | 0.09% | |||||
Revolving Credit Facility | Maximum | ||||||
Debt | ||||||
Commitment fee | 0.225% | |||||
Revolving Credit Facility | LIBOR | Minimum | ||||||
Debt | ||||||
Basis spread on variable rate | 1.00% | |||||
Revolving Credit Facility | LIBOR | Maximum | ||||||
Debt | ||||||
Basis spread on variable rate | 1.625% |
LONG-TERM DEBT AND CREDIT FAC_6
LONG-TERM DEBT AND CREDIT FACILITIES - PRINCIPAL MATURITIES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Principal Maturities of Long-Term Debt | |||
2,019 | $ 423 | ||
2,020 | 1,017 | ||
2,021 | 13 | ||
2,022 | 407 | ||
2,023 | 921 | ||
Thereafter | 1,891 | ||
Total | 4,672 | ||
Changes in long-term debt attributable to fair value hedge | 29 | ||
Deferred financing fees | 21 | ||
Interest paid, net of capitalization | $ 306 | $ 236 | $ 234 |
TRADE RECEIVABLES SECURITIZAT_3
TRADE RECEIVABLES SECURITIZATION PROGRAM (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Feb. 19, 2019 | |
Subsequent Event | ||||
Accounts Receivable Securitization Facilities Disclosures | ||||
Trade receivables securitization program, accordion feature amount | $ 300 | |||
Trade receivables securitization program, accordion feature exercised amount | 100 | |||
Bunge Securitization B.V. | ||||
Accounts Receivable Securitization Facilities Disclosures | ||||
Maximum funding under trade receivables securitization program | $ 700 | |||
Receivables sold which were derecognized from Bunge's balance sheet | 826 | $ 810 | ||
Deferred purchase price included in other current assets | 128 | 107 | ||
Gross receivables sold | 9,803 | 10,022 | $ 9,405 | |
Proceeds received in cash related to transfer of receivables | 9,484 | 9,734 | 9,197 | |
Cash collections from customers on receivables previously sold | 9,173 | 9,659 | 9,176 | |
Discounts related to gross receivables sold included in SG&A | $ 14 | $ 9 | $ 6 | |
Payment term for receivables | 30 days | |||
Bunge Securitization B.V. | Subsequent Event | ||||
Accounts Receivable Securitization Facilities Disclosures | ||||
Maximum funding under trade receivables securitization program | $ 800 | |||
Bunge Securitization B.V. | Minimum | ||||
Accounts Receivable Securitization Facilities Disclosures | ||||
Percentage of receivables sold sale price whose collection is deferred | 10.00% | |||
Bunge Securitization B.V. | Maximum | ||||
Accounts Receivable Securitization Facilities Disclosures | ||||
Percentage of receivables sold sale price whose collection is deferred | 15.00% |
EMPLOYEE BENEFIT PLANS - PERIOD
EMPLOYEE BENEFIT PLANS - PERIODIC BENEFIT COSTS AND ASSUMPTIONS (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | ||||
Effect of a One-percentage point increase to total service and interest cost | $ 0 | |||
Effect of a One-percentage point decrease to total service and interest cost | 0 | |||
Effect of a One-percentage point increase to postretirement benefit obligation | 4 | |||
Effect of a One-percentage point decrease to postretirement benefit obligation | (4) | |||
Pension Benefits | ||||
Employee Benefit Plans | ||||
Increase in benefit obligation for plan amendment | 13 | |||
Pension curtailment gain recognized and recorded in other comprehensive income | $ 31 | |||
Remeasurement loss recognized and recorded in other comprehensive income | $ 18 | |||
Additional defined benefit expenses relating to the voluntary early retirement program | $ 10 | |||
Net Periodic Benefit Costs: | ||||
Service cost | 39 | 33 | $ 32 | |
Interest cost | 40 | 36 | 35 | |
Expected return on plan assets | (57) | (46) | (44) | |
Amortization of prior service cost | 1 | 0 | 0 | |
Amortization of net loss | 9 | 10 | 10 | |
Curtailment (gain) | (2) | 0 | 0 | |
Settlement loss recognized | 4 | 0 | 0 | |
Special termination benefit | 0 | 9 | 1 | |
Net periodic benefit costs | $ 34 | $ 42 | $ 34 | |
Weighted-Average Assumptions to Determine Benefit Obligations | ||||
Discount rate (as a percent) | 3.70% | 3.40% | ||
Increase in future compensation levels (as a percent) | 3.20% | 3.20% | ||
Weighted-Average Assumptions to Determine the Net Periodic Benefit Cost | ||||
Discount rate (as a percent) | 3.40% | 4.00% | 4.20% | |
Expected long-term rate of return on assets (as a percent) | 6.00% | 6.20% | 6.40% | |
Increase in future compensation levels (as a percent) | 3.20% | 3.20% | 3.30% | |
Postretirement Benefits | ||||
Net Periodic Benefit Costs: | ||||
Service cost | $ 0 | $ 0 | $ 0 | |
Interest cost | 5 | 8 | 7 | |
Expected return on plan assets | 0 | 0 | 0 | |
Amortization of prior service cost | 0 | 0 | 0 | |
Amortization of net loss | 0 | 0 | 0 | |
Curtailment (gain) | 0 | 0 | 0 | |
Settlement loss recognized | 0 | 0 | 0 | |
Special termination benefit | 0 | 0 | 0 | |
Net periodic benefit costs | $ 5 | $ 8 | $ 7 | |
Annual rate of increase in the per capita cost of covered health care benefits assumed (as a percent) | 7.70% | 8.40% | ||
Decreased annual rate of increase in the per capita cost of covered healthcare by 2038 and thereafter (as a percent) | 7.40% | 8.10% | ||
Weighted-Average Assumptions to Determine Benefit Obligations | ||||
Discount rate (as a percent) | 8.30% | 9.00% | ||
Weighted-Average Assumptions to Determine the Net Periodic Benefit Cost | ||||
Discount rate (as a percent) | 9.00% | 10.80% | 11.40% |
EMPLOYEE BENEFIT PLANS - CHANGE
EMPLOYEE BENEFIT PLANS - CHANGES IN OBLIGATIONS, ASSETS AND FUNDED STATUS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Pension Benefits | |||
Change in benefit obligations: | |||
Benefit obligation at the beginning of year | $ 1,073,000,000 | $ 941,000,000 | |
Service cost | 39,000,000 | 33,000,000 | $ 32,000,000 |
Interest cost | 40,000,000 | 36,000,000 | 35,000,000 |
Plan amendments | 16,000,000 | 1,000,000 | |
Plan curtailments | (2,000,000) | (32,000,000) | |
Special termination benefits | 0 | 9,000,000 | |
Actuarial (gain) loss, net | (84,000,000) | 100,000,000 | |
Employee contributions | 3,000,000 | 6,000,000 | |
Net transfers in (out) | 213,000,000 | 3,000,000 | |
Plan settlements | (55,000,000) | 0 | |
Benefits paid | (40,000,000) | (35,000,000) | |
Expenses paid | (3,000,000) | (4,000,000) | |
Impact of foreign exchange rates | (8,000,000) | 15,000,000 | |
Benefit obligation at the end of year | 1,192,000,000 | 1,073,000,000 | 941,000,000 |
Change in plan assets: | |||
Fair value of plan assets at the beginning of year | 896,000,000 | 740,000,000 | |
Actual return on plan assets | (36,000,000) | 102,000,000 | |
Employer contributions | 18,000,000 | 77,000,000 | |
Employee contributions | 3,000,000 | 6,000,000 | |
Net transfers in (out) | 181,000,000 | 0 | |
Plan settlements | (55,000,000) | 0 | |
Benefits paid | (40,000,000) | (35,000,000) | |
Expenses paid | (3,000,000) | (4,000,000) | |
Impact of foreign exchange rates | (7,000,000) | 10,000,000 | |
Fair value of plan assets at the end of year | 957,000,000 | 896,000,000 | 740,000,000 |
Funded (unfunded) status and net amounts recognized: | |||
Plan assets (less than) in excess of benefit obligation | (235,000,000) | (177,000,000) | |
Net (liability) asset recognized in the balance sheet | (235,000,000) | (177,000,000) | |
Amounts recognized in the balance sheet consist of: | |||
Non-current assets | 11,000,000 | 18,000,000 | |
Current liabilities | (6,000,000) | (6,000,000) | |
Non-current liabilities | (240,000,000) | (189,000,000) | |
Net liability recognized | (235,000,000) | (177,000,000) | |
Postretirement Benefits | |||
Change in benefit obligations: | |||
Benefit obligation at the beginning of year | 67,000,000 | 74,000,000 | |
Service cost | 0 | 0 | 0 |
Interest cost | 5,000,000 | 8,000,000 | 7,000,000 |
Plan amendments | 0 | 0 | |
Plan curtailments | 0 | 0 | |
Special termination benefits | 0 | 0 | |
Actuarial (gain) loss, net | 1,000,000 | (11,000,000) | |
Employee contributions | 1,000,000 | 1,000,000 | |
Net transfers in (out) | 0 | 0 | |
Plan settlements | 0 | 0 | |
Benefits paid | (7,000,000) | (4,000,000) | |
Expenses paid | 0 | 0 | |
Impact of foreign exchange rates | (8,000,000) | (1,000,000) | |
Benefit obligation at the end of year | 59,000,000 | 67,000,000 | 74,000,000 |
Change in plan assets: | |||
Fair value of plan assets at the beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 6,000,000 | 3,000,000 | |
Employee contributions | 1,000,000 | 1,000,000 | |
Net transfers in (out) | 0 | 0 | |
Plan settlements | 0 | 0 | |
Benefits paid | (7,000,000) | (4,000,000) | |
Expenses paid | 0 | 0 | |
Impact of foreign exchange rates | 0 | 0 | |
Fair value of plan assets at the end of year | 0 | 0 | $ 0 |
Funded (unfunded) status and net amounts recognized: | |||
Plan assets (less than) in excess of benefit obligation | (59,000,000) | (67,000,000) | |
Net (liability) asset recognized in the balance sheet | (59,000,000) | (67,000,000) | |
Amounts recognized in the balance sheet consist of: | |||
Non-current assets | 0 | 0 | |
Current liabilities | (6,000,000) | (7,000,000) | |
Non-current liabilities | (53,000,000) | (60,000,000) | |
Net liability recognized | (59,000,000) | $ (67,000,000) | |
Loders | Pension Benefits | |||
Employee Benefit Plans | |||
Increase in benefit obligation from acquisition | 211,000,000 | ||
Effect of plan combinations | 181,000,000 | ||
Swiss Plan GCP Change | Pension Benefits | |||
Change in benefit obligations: | |||
Plan settlements | (28,000,000) | ||
Plan Amendments | Pension Benefits | |||
Change in benefit obligations: | |||
Plan settlements | $ (27,000,000) |
EMPLOYEE BENEFIT PLANS - PROJEC
EMPLOYEE BENEFIT PLANS - PROJECTED AND ACCUMULATED BENEFIT OBLIGATIONS (Details) - Pension Benefits - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Employee Benefit Plans | ||
Accumulated benefit obligation | $ 1,122 | $ 1,011 |
Defined Benefit Pension Plans with Projected Benefit Obligations in Excess of Fair Value of Plan Assets | ||
Projected benefit obligation | 1,073 | 937 |
Fair value of plan assets | 827 | 742 |
Information Relating to Aggregated Defined Benefit Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets | ||
Projected benefit obligation | 978 | 827 |
Accumulated benefit obligation | 938 | 789 |
Fair value of plan assets | $ 758 | $ 651 |
EMPLOYEE BENEFIT PLANS - AMOUNT
EMPLOYEE BENEFIT PLANS - AMOUNTS IN ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) $ in Millions | Dec. 31, 2018USD ($) |
Pension Benefits | |
EMPLOYEE BENEFIT PLANS | |
Unrecognized prior service credit | $ 10 |
Unrecognized prior service credit, net of tax | 8 |
Unrecognized actuarial loss | 188 |
Unrecognized actuarial gain (loss), net of tax | 142 |
Postretirement Benefits | |
EMPLOYEE BENEFIT PLANS | |
Unrecognized prior service credit | 1 |
Unrecognized prior service credit, net of tax | 1 |
Unrecognized actuarial loss | 3 |
Unrecognized actuarial gain (loss), net of tax | $ 2 |
EMPLOYEE BENEFIT PLANS - PLAN A
EMPLOYEE BENEFIT PLANS - PLAN ASSETS AND FUTURE PAYMENTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Estimated Future Benefit Payments | |||
Employee defined contribution plans | $ 10 | $ 11 | $ 11 |
Pension Benefits | |||
Target Asset Allocation | |||
Fair value of plan assets | 957 | 896 | 740 |
Estimated contribution by employer, next fiscal year | 20 | ||
Estimated Future Benefit Payments | |||
2,019 | 50 | ||
2,020 | 51 | ||
2,021 | 52 | ||
2,022 | 54 | ||
2,023 | 55 | ||
2024 and onwards | $ 305 | ||
Pension Benefits | Equities Mutual Funds | |||
Target Asset Allocation | |||
Target asset allocation (as a percent) | 40.00% | ||
Pension Benefits | Fixed income securities Mutual Funds | |||
Target Asset Allocation | |||
Target asset allocation (as a percent) | 60.00% | ||
Pension Benefits | Level 1 | |||
Target Asset Allocation | |||
Fair value of plan assets | $ 882 | 776 | |
Pension Benefits | Level 1 | Cash | |||
Target Asset Allocation | |||
Fair value of plan assets | 16 | 31 | |
Pension Benefits | Level 1 | Equities Mutual Funds | |||
Target Asset Allocation | |||
Fair value of plan assets | 362 | 423 | |
Pension Benefits | Level 1 | Fixed income securities Mutual Funds | |||
Target Asset Allocation | |||
Fair value of plan assets | 498 | 315 | |
Pension Benefits | Level 1 | Others | |||
Target Asset Allocation | |||
Fair value of plan assets | 6 | 7 | |
Pension Benefits | Level 2 | |||
Target Asset Allocation | |||
Fair value of plan assets | 59 | 115 | |
Pension Benefits | Level 2 | Cash | |||
Target Asset Allocation | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Level 2 | Equities Mutual Funds | |||
Target Asset Allocation | |||
Fair value of plan assets | 1 | 47 | |
Pension Benefits | Level 2 | Fixed income securities Mutual Funds | |||
Target Asset Allocation | |||
Fair value of plan assets | 38 | 42 | |
Pension Benefits | Level 2 | Others | |||
Target Asset Allocation | |||
Fair value of plan assets | 20 | 26 | |
Pension Benefits | Level 3 | |||
Target Asset Allocation | |||
Fair value of plan assets | 16 | 5 | |
Pension Benefits | Level 3 | Cash | |||
Target Asset Allocation | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Level 3 | Equities Mutual Funds | |||
Target Asset Allocation | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Level 3 | Fixed income securities Mutual Funds | |||
Target Asset Allocation | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Level 3 | Others | |||
Target Asset Allocation | |||
Fair value of plan assets | 16 | 5 | |
Pension Benefits | Fair value | |||
Target Asset Allocation | |||
Fair value of plan assets | 957 | 896 | |
Pension Benefits | Fair value | Cash | |||
Target Asset Allocation | |||
Fair value of plan assets | 16 | 31 | |
Pension Benefits | Fair value | Equities Mutual Funds | |||
Target Asset Allocation | |||
Fair value of plan assets | 363 | 470 | |
Pension Benefits | Fair value | Fixed income securities Mutual Funds | |||
Target Asset Allocation | |||
Fair value of plan assets | 536 | 357 | |
Pension Benefits | Fair value | Others | |||
Target Asset Allocation | |||
Fair value of plan assets | 42 | 38 | |
Postretirement Benefits | |||
Target Asset Allocation | |||
Fair value of plan assets | 0 | $ 0 | $ 0 |
Estimated contribution by employer, next fiscal year | 6 | ||
Estimated Future Benefit Payments | |||
2,019 | 6 | ||
2,020 | 6 | ||
2,021 | 6 | ||
2,022 | 6 | ||
2,023 | 6 | ||
2024 and onwards | $ 28 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Navegacoes Unidas Tapajos S.A. | |||
Related Party Transactions | |||
Ownership interest (as a percent) | 50.00% | ||
Notes receivable | $ 20 | ||
Bunge-SCF Grain, LLC | |||
Related Party Transactions | |||
Ownership interest (as a percent) | 50.00% | ||
Notes receivable | $ 7 | ||
Interest rate (as a percent) | 2.35% | ||
Notes payable | $ 6 | ||
Other related party | |||
Related Party Transactions | |||
Notes receivable | 3 | ||
Unconsolidated joint ventures | |||
Related Party Transactions | |||
Trade accounts receivable | 28 | $ 16 | |
Trade accounts payable | 26 | 36 | |
Unconsolidated joint ventures | Soybeans and other commodity products | |||
Related Party Transactions | |||
Purchases from related party | 1,696 | 920 | $ 1,054 |
Revenue from related parties | 341 | 508 | 326 |
Unconsolidated joint ventures | Tolling, port services, administrative support, and other services | |||
Related Party Transactions | |||
Purchases from related party | 136 | 155 | 96 |
Revenue from related parties | $ 14 | $ 11 | $ 7 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) R$ in Millions | 12 Months Ended | ||||
Dec. 31, 2018USD ($)subsidiary | Dec. 31, 2017USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2018BRL (R$) | Mar. 31, 2017employee | |
Loss Contingencies and Guarantees | |||||
Loss contingency accrual, at carrying value | $ 267,000,000 | $ 356,000,000 | |||
Maximum potential future payments related to guarantees | 557,000,000 | ||||
Future Minimum Payment Obligations Due Under Freight Supply Agreements | |||||
2,019 | 214,000,000 | ||||
2020 and 2021 | 231,000,000 | ||||
2022 and 2023 | 176,000,000 | ||||
2024 and thereafter | 65,000,000 | ||||
Total | 686,000,000 | ||||
Freight supply agreements | |||||
Future Minimum Payment Obligations Due Under Freight Supply Agreements | |||||
Proceeds from relet agreements related to ocean freight vessels | $ 155,000,000 | ||||
Freight supply agreements | Minimum | |||||
Loss Contingencies and Guarantees | |||||
Freight supply agreements term, ocean freight vessels | 2 months | ||||
Freight supply agreements term, railroad services | 8 years | ||||
Freight supply agreements | Maximum | |||||
Loss Contingencies and Guarantees | |||||
Freight supply agreements term, ocean freight vessels | 7 years | ||||
Ocean Freight Vessels | |||||
Future Minimum Payment Obligations Due Under Freight Supply Agreements | |||||
2,019 | $ 172,000,000 | ||||
2020 and 2021 | 176,000,000 | ||||
2022 and 2023 | 121,000,000 | ||||
2024 and thereafter | 37,000,000 | ||||
Total | 506,000,000 | ||||
Railroad Services | |||||
Future Minimum Payment Obligations Due Under Freight Supply Agreements | |||||
2,019 | 42,000,000 | ||||
2020 and 2021 | 55,000,000 | ||||
2022 and 2023 | 55,000,000 | ||||
2024 and thereafter | 28,000,000 | ||||
Total | 180,000,000 | ||||
Inventories | |||||
Future Minimum Payment Obligations Due Under Freight Supply Agreements | |||||
Purchase commitments | 225,000,000 | ||||
Power supply contracts | |||||
Future Minimum Payment Obligations Due Under Freight Supply Agreements | |||||
Purchase commitments | 70,000,000 | ||||
Construction in progress | |||||
Future Minimum Payment Obligations Due Under Freight Supply Agreements | |||||
Purchase commitments | 57,000,000 | ||||
Brazil | |||||
Loss Contingencies and Guarantees | |||||
Number of employees under administrative proceedings | employee | 2 | ||||
Argentina | |||||
Loss Contingencies and Guarantees | |||||
Payment of accrued export tax obligations | $ 112,000,000 | ||||
Interest assessed on paid export tax obligations | 292,000,000 | ||||
Non-income tax claims | |||||
Loss Contingencies and Guarantees | |||||
Loss contingency accrual, at carrying value | 94,000,000 | 161,000,000 | |||
Labor claims | |||||
Loss Contingencies and Guarantees | |||||
Loss contingency accrual, at carrying value | 78,000,000 | 92,000,000 | |||
Civil and other claims | |||||
Loss Contingencies and Guarantees | |||||
Loss contingency accrual, at carrying value | 95,000,000 | 103,000,000 | |||
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 | 63,000,000 | R$ 244 | |||
Unconsolidated affiliates guarantee | |||||
Loss Contingencies and Guarantees | |||||
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross | 141,000,000 | ||||
Maximum potential future payments related to guarantees | 288,000,000 | ||||
Obligation related to outstanding guarantees | 17,000,000 | ||||
Performance Guarantee [Member] | |||||
Loss Contingencies and Guarantees | |||||
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross | 70,000,000 | ||||
Obligation related to outstanding guarantees | 0 | ||||
Residual value guarantee | |||||
Loss Contingencies and Guarantees | |||||
Maximum potential future payments related to guarantees | 269,000,000 | ||||
Obligation related to outstanding guarantees | 1,000,000 | ||||
Guarantee of indebtedness of subsidiaries | |||||
Loss Contingencies and Guarantees | |||||
Long-term debt including current portion, carrying value | $ 5,011,000,000 | ||||
Guarantee of indebtedness of subsidiaries | Bunge Limited Finance Corp., Bunge Finance Europe B.V. and Bunge N.A. Finance L.P. | 100% owned subsidiaries | |||||
Loss Contingencies and Guarantees | |||||
Number of finance subsidiaries issuing senior notes | subsidiary | 2 | ||||
Percentage of ownership interest | 100.00% | 100.00% | |||
Tax return examination 1990 to Present | ICMS tax liability | Brazil | |||||
Loss Contingencies and Guarantees | |||||
Total assessment | $ 264,000,000 | 281,000,000 | |||
Tax return examination 2004 to 2012 | PIS COFINS liability | Brazil | |||||
Loss Contingencies and Guarantees | |||||
Total assessment | $ 231,000,000 | $ 200,000,000 |
REDEEMABLE NONCONTROLLING INT_2
REDEEMABLE NONCONTROLLING INTERESTS (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Jun. 30, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Mar. 01, 2018 | Jul. 31, 2012 | |
Redeemable Noncontrolling Interest [Line Items] | ||||||
Joint venture transaction costs | $ 0 | $ 0 | $ 39 | |||
Loders | ||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||
Interest acquired (as a percent) | 70.00% | |||||
Loders | Loders | ||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||
Ownership interest by minority shareholder | 30.00% | |||||
Oilseed processing venture in Eastern Europe | ||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||
Interest acquired (as a percent) | 45.00% | 55.00% | ||||
Joint venture transaction costs | $ 39 | |||||
Prio | Bunge or Noncontrolling Interest Holder | Oilseed processing venture in Eastern Europe | ||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||
Ownership interest (as a percent) | 45.00% |
EQUITY - SHARE REPURCHASE PROGR
EQUITY - SHARE REPURCHASE PROGRAM (Details) - USD ($) | 12 Months Ended | 32 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2017 | May 31, 2015 | |
Equity, Class of Treasury Stock [Line Items] | |||
Repurchase of common shares for the period | $ 200,000,000 | ||
Common Shares | |||
Equity, Class of Treasury Stock [Line Items] | |||
Authorized amount of issued and outstanding common shares available for repurchase | $ 500,000,000 | ||
Repurchase of common shares (in shares) | 4,707,440 | ||
Repurchase of common shares for the period | $ 300,000,000 |
EQUITY - CUMULATIVE CONVERTIBLE
EQUITY - CUMULATIVE CONVERTIBLE PERPETUAL PREFERENCE SHARES (Details) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($)day$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015shares | |
Class of Stock [Line Items] | ||||
Convertible perpetual preference shares, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Convertible perpetual preference shares, liquidation preference (in dollars per share) | $ 100 | $ 100 | ||
Dividends on preference shares | $ | $ 34 | $ 34 | $ 34 | |
Convertible perpetual preference shares | ||||
Class of Stock [Line Items] | ||||
Convertible preference shares accrued dividends (as a percent) | 4.875% | |||
Convertible perpetual preference shares, par value (in dollars per share) | $ 0.01 | |||
Convertible perpetual preference shares, liquidation preference (in dollars per share) | 100 | |||
Liquidation preference (in dollars per share) | $ 25 | |||
Convertible preference share, common shares issued upon conversion, at any time before mandatory conversion date | 1.1918 | |||
Conversion price, convertible preference share (in dollars per share) | $ 83.9096 | |||
Convertible preference shares, aggregate common shares issued if converted at current conversion rate | shares | 8,223,042 | |||
Target ratio of closing share price to conversion price as a condition for conversion or redemption of Convertible Notes (as a percent) | 130.00% | |||
Number of tradings that share price is over a specified threshold to trigger conversion of the notes | day | 20 | |||
The consecutive trading days which must occur to trigger the conversion of the notes | day | 30 | |||
Convertible Preference Shares | ||||
Class of Stock [Line Items] | ||||
Convertible perpetual preference shares, outstanding (in shares) | shares | 6,899,683 | 6,899,700 | 6,900,000 | 6,900,000 |
EQUITY - PENSION LIABILTY ADJUS
EQUITY - PENSION LIABILTY ADJUSTMENT (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Equity [Abstract] | |
Pension curtailment gain | $ 31 |
Remeasurement loss | $ (18) |
EQUITY - AOCI (Details)
EQUITY - AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | $ 7,148 | ||
Net-current period other comprehensive income (loss) | (1,013) | $ 64 | $ 386 |
Balance | 6,173 | 7,148 | |
Foreign Currency Translation Adjustment | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | (5,547) | (5,734) | (6,443) |
Other comprehensive income (loss) before reclassifications | (1,119) | 187 | 709 |
Amount reclassified from accumulated other comprehensive income | 29 | 0 | 0 |
Net-current period other comprehensive income (loss) | (1,090) | 187 | 709 |
Balance | (6,637) | (5,547) | (5,734) |
Deferred Gains (Losses) on Hedging Activities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | (244) | (102) | 214 |
Other comprehensive income (loss) before reclassifications | 99 | (105) | (305) |
Amount reclassified from accumulated other comprehensive income | 0 | (37) | (11) |
Net-current period other comprehensive income (loss) | 99 | (142) | (316) |
Balance | (145) | (244) | (102) |
Pension and Other Postretirement Liability Adjustments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | (140) | (145) | (134) |
Other comprehensive income (loss) before reclassifications | (16) | 5 | (11) |
Amount reclassified from accumulated other comprehensive income | 3 | 0 | 0 |
Net-current period other comprehensive income (loss) | (13) | 5 | (11) |
Balance | (153) | (140) | (145) |
Unrealized Gains (Losses) on Investments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | 1 | 3 | 3 |
Other comprehensive income (loss) before reclassifications | 0 | 2 | 0 |
Amount reclassified from accumulated other comprehensive income | (1) | (4) | 0 |
Net-current period other comprehensive income (loss) | (1) | (2) | 0 |
Balance | 0 | 1 | 3 |
Accumulated Other Comprehensive Income (Loss) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | (5,930) | (5,978) | (6,360) |
Other comprehensive income (loss) before reclassifications | (1,036) | 89 | 393 |
Amount reclassified from accumulated other comprehensive income | 31 | (41) | (11) |
Net-current period other comprehensive income (loss) | (1,005) | 48 | 382 |
Balance | $ (6,935) | $ (5,930) | $ (5,978) |
EARNINGS PER COMMON SHARE (Deta
EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Computation of basic and diluted earnings per common share | ||||||||||||
Income from continuing operations | $ (56) | $ 367 | $ (17) | $ (17) | $ (53) | $ 92 | $ 81 | $ 54 | $ 277 | $ 174 | $ 776 | |
Net (income) attributable to noncontrolling interests | (20) | (14) | (22) | |||||||||
Income from continuing operations attributable to Bunge | 257 | 160 | 754 | |||||||||
Other redeemable obligations | 0 | 0 | (2) | |||||||||
Convertible preference share dividends | (34) | (34) | (34) | |||||||||
Income (loss) from discontinued operations, net of tax | $ (2) | $ 7 | $ 7 | $ (2) | $ 0 | $ 0 | $ 6 | $ (6) | 10 | 0 | (9) | |
Net income (loss) available to Bunge common shareholders | 233 | 126 | 709 | |||||||||
Add back convertible preference share dividends | 0 | 0 | 34 | |||||||||
Net income available to Bunge common shareholders - Diluted | $ 233 | $ 126 | $ 743 | |||||||||
Weighted-average number of common shares outstanding: | ||||||||||||
Basic (in shares) | 140,968,980 | 140,365,549 | 139,845,124 | |||||||||
Effect of dilutive shares: | ||||||||||||
-stock options and awards (in shares) | 734,803 | 899,528 | 441,521 | |||||||||
-convertible preference shares (in shares) | 0 | 0 | 7,939,830 | |||||||||
Diluted (in shares) | 141,703,783 | 141,265,077 | 148,226,475 | |||||||||
Basic earnings (loss) per common share: | ||||||||||||
Net income (loss) from continuing operations (in dollars per share) | $ (0.51) | $ 2.48 | $ (0.20) | $ (0.20) | $ (0.48) | $ 0.59 | $ 0.48 | $ 0.31 | $ 1.58 | $ 0.90 | $ 5.13 | |
Net income (loss) from discontinued operations (in dollars per share) | (0.01) | 0.05 | 0.05 | (0.01) | 0 | 0 | 0.04 | (0.04) | 0.07 | 0 | (0.06) | |
Net income (loss) to Bunge common shareholders (in dollars per share) | (0.52) | 2.53 | (0.15) | (0.21) | (0.48) | 0.59 | 0.52 | 0.27 | 1.65 | 0.90 | 5.07 | |
Diluted earnings (loss) per common share: | ||||||||||||
Net income (loss) from continuing operations (in dollars per share) | 2.39 | (0.20) | (0.20) | (0.48) | 0.59 | 0.48 | 0.31 | 1.57 | 0.89 | 5.07 | ||
Net income (loss) from discontinued operations (in dollars per share) | (0.01) | 0.05 | 0.05 | (0.01) | 0 | 0 | 0.03 | (0.04) | 0.07 | 0 | (0.06) | |
Net income (loss) to Bunge common shareholders (in dollars per share) | $ (0.52) | $ 2.44 | $ (0.15) | $ (0.21) | $ (0.48) | $ 0.59 | $ 0.51 | $ 0.27 | $ 1.64 | $ 0.89 | $ 5.01 | |
Joint venture transaction costs | $ 0 | $ 0 | $ 39 | |||||||||
Convertible Preference Shares | ||||||||||||
Diluted earnings (loss) 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 (loss) per common share: | ||||||||||||
Antidilutive shares excluded from computation of EPS | 4,000,000 | 4,000,000 | 4,000,000 | |||||||||
Oilseed processing venture in Eastern Europe | ||||||||||||
Diluted earnings (loss) per common share: | ||||||||||||
Interest acquired (as a percent) | 45.00% | |||||||||||
Joint venture transaction costs | $ 39 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-Based Compensation | |||
Share-based compensation expense | $ 46 | $ 29 | $ 44 |
Share-based compensation expense | $ 29 | $ 44 | |
Stock option awards | |||
Fair Value Assumptions | |||
Expected option term (in years) | 6 years 3 months 22 days | 5 years 10 months 10 days | 5 years 8 months 1 day |
Expected dividend yield | 2.44% | 2.09% | 3.04% |
Expected volatility | 25.57% | 24.85% | 26.06% |
Risk-free interest rate | 2.75% | 2.21% | 1.41% |
Shares | |||
Outstanding at beginning of period (in shares) | 6,216,570 | ||
Granted (in shares) | 718,500 | ||
Exercised (in shares) | (222,844) | ||
Forfeited or expired (in shares) | (589,922) | ||
Outstanding at end of period (in shares) | 6,122,304 | 6,216,570 | |
Exercisable at end of period (in shares) | 4,347,213 | ||
Weighted-Average Exercise Price | |||
Outstanding balance at beginning of period (in dollars per share) | $ 71.88 | ||
Granted (in dollars per share) | 75.99 | ||
Exercised (in dollars per share) | 54.79 | ||
Forfeited or expired (in dollars per share) | 92.47 | ||
Outstanding balance at end of period (in dollars per share) | 70.93 | $ 71.88 | |
Exercisable balance at end of period (in dollars per share) | $ 70.34 | ||
Weighted-Average Remaining Contractual Term | |||
Outstanding , Weighted-Average Remaining Contractual Term | 5 years 6 months 7 days | ||
Exercisable, Weighted-Average Remaining Contractual Term | 4 years 4 months 17 days | ||
Aggregate Intrinsic Value | |||
Outstanding at end of period (in dollars) | $ 4 | ||
Exercisable at end of period (in dollars) | $ 3 | ||
Additional disclosures | |||
Weighted-average grant date fair value (in dollars per share) | $ 16.75 | $ 17.13 | $ 8.86 |
Total intrinsic value of options exercised (in dollars) | $ 4 | $ 11 | $ 1 |
Unrecognized Compensation Cost | |||
Total unrecognized compensation related to non-vested awards (in dollars) | $ 12 | ||
Period of recognition of total unrecognized compensation related to non-vested shares | 2 years | ||
Restricted stock units | |||
Unrecognized Compensation Cost | |||
Total unrecognized compensation related to non-vested awards (in dollars) | $ 45 | ||
Period of recognition of total unrecognized compensation related to non-vested shares | 2 years | ||
Restricted Stock Units | |||
Restricted stock units outstanding at beginning of period (in shares) | 1,704,004 | ||
Granted (in shares) | 823,435 | ||
Vested/issued (in shares) | (314,267) | ||
Forfeited/cancelled (in shares) | (339,879) | ||
Restricted stock units outstanding at end of period (in shares) | 1,873,293 | 1,704,004 | |
Weighted- Grant-Date Fair Value | |||
Restricted stock units outstanding at beginning of period (in dollars per share) | $ 66.81 | ||
Granted (in dollars per share) | 75.06 | $ 76.79 | $ 51.42 |
Vested/issued (in dollars per share) | 75.93 | ||
Forfeited/cancelled (in dollars per share) | 69.65 | ||
Restricted stock units outstanding at end of period (in dollars per share) | $ 69.29 | $ 66.81 | |
Restricted Stock Units, Additional Activity Information | |||
Common shares issued, net of common shares withheld to cover taxes | 241,055 | ||
Common shares issued, net of common shares withheld to cover taxes, weighted-average fair value (in dollars per share) | $ 75.93 | ||
Total fair value of restricted stock units vested (in dollars) | $ 24 | ||
Performance-based restricted stock units | |||
Restricted Stock Units | |||
Vested/issued (in shares) | (87,284) | ||
Forfeited/cancelled (in shares) | (78,710) | ||
2016 EIP | |||
Common Shares Reserved for Share-Based Awards | |||
Common shares reserved for grant of stock options, stock awards and other awards | 5,800,000 | ||
Common shares available for future grants | 2,706,665 | ||
2016 EIP | Stock option awards | |||
Share-Based Compensation | |||
Expiration period of award | 10 years | ||
2016 EIP | Stock option awards | Minimum | |||
Share-Based Compensation | |||
Vesting period | 1 year | ||
2016 EIP | Stock option awards | Maximum | |||
Share-Based Compensation | |||
Vesting period | 3 years | ||
2016 EIP | Restricted stock units | Minimum | |||
Share-Based Compensation | |||
Vesting period | 1 year | ||
2016 EIP | Restricted stock units | Maximum | |||
Share-Based Compensation | |||
Vesting period | 3 years | ||
2017 Directors' Plan | |||
Common Shares Reserved for Share-Based Awards | |||
Common shares reserved for grant of stock options, stock awards and other awards | 120,000 | ||
Common shares available for future grants | 76,163 |
LEASE COMMITMENTS (Details)
LEASE COMMITMENTS (Details) ha in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)ha | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Minimum lease payments under non-cancelable operating leases | |||
2,019 | $ 134 | ||
2,020 | 107 | ||
2,021 | 84 | ||
2,022 | 58 | ||
2,023 | 48 | ||
Thereafter | 126 | ||
Total (1) | 557 | ||
Future minimum sublease income | 43 | ||
Rent expense under non-cancelable operating leases | |||
Rent expense | 158 | $ 175 | $ 213 |
Sublease income | (10) | (9) | (9) |
Net rent expense | $ 148 | 166 | 204 |
Decrease to rent expense, immaterial error | |||
Rent expense under non-cancelable operating leases | |||
Rent expense | 76 | ||
Sugarcane partnership agreements | |||
Rent expense under non-cancelable operating leases | |||
Hectares of land covered by the agricultural partnership agreement under cultivation | ha | 234 | ||
Payments related to agricultural partnership agreements | $ 84 | 105 | 89 |
Agricultural partnership expense | $ 56 | $ 69 | $ 64 |
Minimum | |||
Lease Commitments | |||
Life of lease agreements | 1 year | ||
Average | Sugarcane partnership agreements | |||
Rent expense under non-cancelable operating leases | |||
Life of agricultural partnership agreements | 5 years |
SEGMENT INFORMATION - FINANCIAL
SEGMENT INFORMATION - FINANCIAL INFORMATION BY SEGMENT (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($)segment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Segment Reporting Information | |||||||||||
Number of reportable segments | segment | 5 | ||||||||||
Operating Segment Information | |||||||||||
Net sales to external customers | $ 11,543 | $ 11,412 | $ 12,147 | $ 10,641 | $ 11,605 | $ 11,423 | $ 11,645 | $ 11,121 | $ 45,743 | $ 45,794 | $ 42,679 |
Foreign exchange gains (losses) | (101) | 95 | (8) | ||||||||
Noncontrolling interests' share of interest and tax | (20) | (14) | (22) | ||||||||
Other income (expense)—net | 48 | 40 | 10 | ||||||||
Segment EBIT | 737 | 436 | 1,143 | ||||||||
Discontinued operations | (2) | $ 7 | $ 7 | $ (2) | 0 | $ 0 | $ 6 | $ (6) | 10 | 0 | (9) |
Depreciation, depletion and amortization | (622) | (609) | (547) | ||||||||
Investments in affiliates | 451 | 461 | 451 | 461 | 373 | ||||||
Total assets | 19,425 | 18,871 | 19,425 | 18,871 | 19,188 | ||||||
Capital expenditures | 493 | 662 | 784 | ||||||||
Pre-tax, impairment charges | 18 | 52 | 87 | ||||||||
Gain on sale of disposition of assets | (26) | 9 | 122 | ||||||||
Selling, general and administrative expenses | |||||||||||
Operating Segment Information | |||||||||||
Pre-tax, impairment charges | 7 | 19 | 6 | ||||||||
Cost of goods sold | |||||||||||
Operating Segment Information | |||||||||||
Pre-tax, impairment charges | 10 | 16 | 9 | ||||||||
Other income (expense) | |||||||||||
Operating Segment Information | |||||||||||
Pre-tax, impairment charges | 1 | 17 | 72 | ||||||||
Agribusiness | |||||||||||
Operating Segment Information | |||||||||||
Net sales to external customers | 32,206 | 31,741 | 30,061 | ||||||||
Foreign exchange gains (losses) | (104) | 85 | (7) | ||||||||
Other income (expense)—net | 79 | 56 | 22 | ||||||||
Segment EBIT | 645 | 256 | 875 | ||||||||
Discontinued operations | 0 | 0 | 0 | ||||||||
Depreciation, depletion and amortization | (257) | (267) | (236) | ||||||||
Pre-tax, impairment charges | 12 | 41 | 29 | ||||||||
Agribusiness | Other income (expense) | |||||||||||
Operating Segment Information | |||||||||||
Segment EBIT | 10 | ||||||||||
Gain on disposition of subsidiary | 9 | ||||||||||
Edible Oil Products | |||||||||||
Operating Segment Information | |||||||||||
Net sales to external customers | 9,129 | 8,018 | 6,859 | ||||||||
Foreign exchange gains (losses) | 0 | 3 | (1) | ||||||||
Other income (expense)—net | (8) | (7) | 7 | ||||||||
Segment EBIT | 122 | 126 | 112 | ||||||||
Discontinued operations | 0 | 0 | 0 | ||||||||
Depreciation, depletion and amortization | (153) | (105) | (94) | ||||||||
Pre-tax, impairment charges | 1 | 3 | 2 | ||||||||
Milling Products | |||||||||||
Operating Segment Information | |||||||||||
Net sales to external customers | 1,691 | 1,575 | 1,647 | ||||||||
Foreign exchange gains (losses) | 2 | (3) | (7) | ||||||||
Other income (expense)—net | (3) | (5) | (4) | ||||||||
Segment EBIT | 90 | 63 | 131 | ||||||||
Discontinued operations | 0 | 0 | 0 | ||||||||
Depreciation, depletion and amortization | (58) | (61) | (62) | ||||||||
Pre-tax, impairment charges | 1 | 1 | |||||||||
Sugar and Bioenergy | |||||||||||
Operating Segment Information | |||||||||||
Net sales to external customers | 2,257 | 4,054 | 3,709 | ||||||||
Foreign exchange gains (losses) | 7 | 11 | 9 | ||||||||
Other income (expense)—net | 4 | (4) | (16) | ||||||||
Segment EBIT | (135) | (12) | (4) | ||||||||
Discontinued operations | 0 | 0 | 0 | ||||||||
Depreciation, depletion and amortization | (146) | (164) | (143) | ||||||||
Pre-tax, impairment charges | 5 | 7 | 46 | ||||||||
Sugar and Bioenergy | Other income (expense) | |||||||||||
Operating Segment Information | |||||||||||
Segment EBIT | 16 | ||||||||||
Fertilizer | |||||||||||
Operating Segment Information | |||||||||||
Net sales to external customers | 460 | 406 | 403 | ||||||||
Foreign exchange gains (losses) | (6) | (1) | (2) | ||||||||
Other income (expense)—net | 0 | 0 | 1 | ||||||||
Segment EBIT | 39 | 3 | 29 | ||||||||
Discontinued operations | 0 | 0 | 0 | ||||||||
Depreciation, depletion and amortization | (8) | (12) | (12) | ||||||||
Pre-tax, impairment charges | 9 | ||||||||||
Operating | Agribusiness | |||||||||||
Operating Segment Information | |||||||||||
Noncontrolling interests' share of interest and tax | (14) | (9) | (21) | ||||||||
Investments in affiliates | 406 | 411 | 406 | 411 | 325 | ||||||
Total assets | 11,865 | 12,094 | 11,865 | 12,094 | 12,159 | ||||||
Capital expenditures | 219 | 318 | 421 | ||||||||
Operating | Edible Oil Products | |||||||||||
Operating Segment Information | |||||||||||
Noncontrolling interests' share of interest and tax | (12) | (8) | (13) | ||||||||
Investments in affiliates | 0 | 0 | 0 | 0 | 0 | ||||||
Total assets | 3,940 | 2,610 | 3,940 | 2,610 | 2,329 | ||||||
Capital expenditures | 129 | 136 | 108 | ||||||||
Operating | Milling Products | |||||||||||
Operating Segment Information | |||||||||||
Noncontrolling interests' share of interest and tax | 0 | 0 | 0 | ||||||||
Investments in affiliates | 0 | 0 | 0 | 0 | 0 | ||||||
Total assets | 1,448 | 1,460 | 1,448 | 1,460 | 1,444 | ||||||
Capital expenditures | 23 | 45 | 75 | ||||||||
Operating | Sugar and Bioenergy | |||||||||||
Operating Segment Information | |||||||||||
Noncontrolling interests' share of interest and tax | 1 | 0 | 0 | ||||||||
Investments in affiliates | 45 | 50 | 45 | 50 | 48 | ||||||
Total assets | 1,681 | 2,195 | 1,681 | 2,195 | 2,754 | ||||||
Capital expenditures | 110 | 139 | 131 | ||||||||
Operating | Fertilizer | |||||||||||
Operating Segment Information | |||||||||||
Noncontrolling interests' share of interest and tax | (2) | (2) | (2) | ||||||||
Investments in affiliates | 0 | 0 | 0 | 0 | 0 | ||||||
Total assets | 330 | 330 | 330 | 330 | 318 | ||||||
Capital expenditures | 5 | 9 | 16 | ||||||||
Discontinued Operations & Unallocated | |||||||||||
Operating Segment Information | |||||||||||
Foreign exchange gains (losses) | 0 | 0 | 0 | ||||||||
Noncontrolling interests' share of interest and tax | 7 | 5 | 14 | ||||||||
Other income (expense)—net | (24) | 0 | 0 | ||||||||
Segment EBIT | (24) | 0 | 0 | ||||||||
Discontinued operations | 10 | 0 | (9) | ||||||||
Depreciation, depletion and amortization | 0 | 0 | 0 | ||||||||
Investments in affiliates | 0 | 0 | 0 | 0 | 0 | ||||||
Total assets | $ 161 | $ 182 | 161 | 182 | 184 | ||||||
Capital expenditures | 7 | 15 | 33 | ||||||||
Inter-segment Eliminations | |||||||||||
Operating Segment Information | |||||||||||
Net sales to external customers | (4,823) | (4,531) | (4,004) | ||||||||
Inter-segment Eliminations | Agribusiness | |||||||||||
Operating Segment Information | |||||||||||
Net sales to external customers | (4,641) | (4,323) | (3,867) | ||||||||
Inter-segment Eliminations | Edible Oil Products | |||||||||||
Operating Segment Information | |||||||||||
Net sales to external customers | (161) | (154) | (115) | ||||||||
Inter-segment Eliminations | Milling Products | |||||||||||
Operating Segment Information | |||||||||||
Net sales to external customers | 0 | (5) | (9) | ||||||||
Inter-segment Eliminations | Sugar and Bioenergy | |||||||||||
Operating Segment Information | |||||||||||
Net sales to external customers | (19) | (45) | (13) | ||||||||
Inter-segment Eliminations | Fertilizer | |||||||||||
Operating Segment Information | |||||||||||
Net sales to external customers | $ (2) | $ (4) | $ 0 |
SEGMENT INFORMATION - NET INCOM
SEGMENT INFORMATION - NET INCOME TO SEGMENT EBIT (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information | |||||||||||
Total segment EBIT from continuing operations | $ 737 | $ 436 | $ 1,143 | ||||||||
Interest income | 31 | 38 | 51 | ||||||||
Interest expense | (339) | (263) | (234) | ||||||||
Income tax (expense) benefit | 179 | 56 | 220 | ||||||||
Income (loss) from discontinued operations, net of tax | $ (2) | $ 7 | $ 7 | $ (2) | $ 0 | $ 0 | $ 6 | $ (6) | 10 | 0 | (9) |
Noncontrolling interests' share of interest and tax | (20) | (14) | (22) | ||||||||
Net income (loss) attributable to Bunge | $ (65) | $ 365 | $ (12) | $ (21) | $ (60) | $ 92 | $ 81 | $ 47 | 267 | 160 | 745 |
Discontinued Operations & Unallocated | |||||||||||
Segment Reporting Information | |||||||||||
Total segment EBIT from continuing operations | (24) | 0 | 0 | ||||||||
Income (loss) from discontinued operations, net of tax | 10 | 0 | (9) | ||||||||
Noncontrolling interests' share of interest and tax | $ 7 | $ 5 | $ 14 |
SEGMENT INFORMATION - SALES BY
SEGMENT INFORMATION - SALES BY PRODUCT GROUP (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue from External Customer [Line Items] | |||||||||||
Net sales | $ 11,543 | $ 11,412 | $ 12,147 | $ 10,641 | $ 11,605 | $ 11,423 | $ 11,645 | $ 11,121 | $ 45,743 | $ 45,794 | $ 42,679 |
Agricultural Commodity Products | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 32,206 | 31,741 | 30,061 | ||||||||
Edible Oil Products | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 9,129 | 8,018 | 6,859 | ||||||||
Wheat Milling Products | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 1,037 | 988 | 1,079 | ||||||||
Corn Milling Products | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 654 | 587 | 568 | ||||||||
Sugar and Bioenergy Products | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 2,257 | 4,054 | 3,709 | ||||||||
Fertilizer Products | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | $ 460 | $ 406 | $ 403 |
SEGMENT INFORMATION - GEOGRAPHI
SEGMENT INFORMATION - GEOGRAPHIC AREA INFORMATION (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
External Customers | |||||||||||
Net sales to external customers | $ 11,543 | $ 11,412 | $ 12,147 | $ 10,641 | $ 11,605 | $ 11,423 | $ 11,645 | $ 11,121 | $ 45,743 | $ 45,794 | $ 42,679 |
Long-lived Assets | |||||||||||
Long-lived assets | 7,090 | 6,638 | 7,090 | 6,638 | 6,200 | ||||||
Europe | |||||||||||
External Customers | |||||||||||
Net sales to external customers | 17,802 | 16,313 | 14,238 | ||||||||
Long-lived Assets | |||||||||||
Long-lived assets | 1,912 | 1,485 | 1,912 | 1,485 | 1,107 | ||||||
United States | |||||||||||
External Customers | |||||||||||
Net sales to external customers | 9,955 | 10,128 | 10,239 | ||||||||
Long-lived Assets | |||||||||||
Long-lived assets | 1,561 | 1,267 | 1,561 | 1,267 | 1,249 | ||||||
Asia-Pacific | |||||||||||
External Customers | |||||||||||
Net sales to external customers | 8,651 | 8,613 | 7,843 | ||||||||
Long-lived Assets | |||||||||||
Long-lived assets | 679 | 483 | 679 | 483 | 505 | ||||||
Brazil | |||||||||||
External Customers | |||||||||||
Net sales to external customers | 5,553 | 7,040 | 6,604 | ||||||||
Long-lived Assets | |||||||||||
Long-lived assets | 1,994 | 2,406 | 1,994 | 2,406 | 2,452 | ||||||
Argentina | |||||||||||
External Customers | |||||||||||
Net sales to external customers | 1,166 | 1,433 | 1,406 | ||||||||
Long-lived Assets | |||||||||||
Long-lived assets | 161 | 216 | 161 | 216 | 189 | ||||||
Canada | |||||||||||
External Customers | |||||||||||
Net sales to external customers | 1,216 | 1,114 | 1,120 | ||||||||
Long-lived Assets | |||||||||||
Long-lived assets | 401 | 440 | 401 | 440 | 378 | ||||||
Rest of world | |||||||||||
External Customers | |||||||||||
Net sales to external customers | 1,400 | 1,153 | 1,229 | ||||||||
Long-lived Assets | |||||||||||
Long-lived assets | $ 382 | $ 341 | $ 382 | $ 341 | $ 320 |
SEGMENT INFORMATION - NET SALES
SEGMENT INFORMATION - NET SALES TO EXTERNAL CUSTOMERS (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue from External Customer [Line Items] | |||||||||||
Sales from other arrangements | $ 34,491 | ||||||||||
Sales from contracts with customers | 11,252 | ||||||||||
Revenues | $ 11,543 | $ 11,412 | $ 12,147 | $ 10,641 | $ 11,605 | $ 11,423 | $ 11,645 | $ 11,121 | 45,743 | $ 45,794 | $ 42,679 |
Agribusiness | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Sales from other arrangements | 31,040 | ||||||||||
Sales from contracts with customers | 1,166 | ||||||||||
Revenues | 32,206 | 31,741 | 30,061 | ||||||||
Edible Oil Products | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Sales from other arrangements | 1,818 | ||||||||||
Sales from contracts with customers | 7,311 | ||||||||||
Revenues | 9,129 | 8,018 | 6,859 | ||||||||
Milling Products | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Sales from other arrangements | 65 | ||||||||||
Sales from contracts with customers | 1,626 | ||||||||||
Revenues | 1,691 | 1,575 | 1,647 | ||||||||
Sugar and Bioenergy | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Sales from other arrangements | 1,568 | ||||||||||
Sales from contracts with customers | 689 | ||||||||||
Revenues | 2,257 | 4,054 | 3,709 | ||||||||
Fertilizer | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Sales from other arrangements | 0 | ||||||||||
Sales from contracts with customers | 460 | ||||||||||
Revenues | $ 460 | $ 406 | $ 403 |
QUARTERLY FINANCIAL INFORMATI_3
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 11,543 | $ 11,412 | $ 12,147 | $ 10,641 | $ 11,605 | $ 11,423 | $ 11,645 | $ 11,121 | $ 45,743 | $ 45,794 | $ 42,679 |
Gross profit | 422 | 918 | 542 | 384 | 462 | 489 | 354 | 460 | 2,266 | 1,765 | 2,410 |
Income (loss) from continuing operations | (56) | 367 | (17) | (17) | (53) | 92 | 81 | 54 | 277 | 174 | 776 |
Income (loss) from discontinued operations, net of tax | (2) | 7 | 7 | (2) | 0 | 0 | 6 | (6) | 10 | 0 | (9) |
Net income (loss) | (58) | 374 | (10) | (19) | (53) | 92 | 87 | 48 | 287 | 174 | 767 |
Net income (loss) attributable to Bunge | $ (65) | $ 365 | $ (12) | $ (21) | $ (60) | $ 92 | $ 81 | $ 47 | $ 267 | $ 160 | $ 745 |
Earnings (loss) per common share-basic | |||||||||||
Net income (loss) from continuing operations (in dollars per share) | $ (0.51) | $ 2.48 | $ (0.20) | $ (0.20) | $ (0.48) | $ 0.59 | $ 0.48 | $ 0.31 | $ 1.58 | $ 0.90 | $ 5.13 |
Net income (loss) from discontinued operations (in dollars per share) | (0.01) | 0.05 | 0.05 | (0.01) | 0 | 0 | 0.04 | (0.04) | 0.07 | 0 | (0.06) |
Net income (loss) to Bunge common shareholders (in dollars per share) | (0.52) | 2.53 | (0.15) | (0.21) | (0.48) | 0.59 | 0.52 | 0.27 | 1.65 | 0.90 | 5.07 |
Earnings (loss) per common share-diluted | |||||||||||
Net income (loss) from continuing operations (in dollars per share) | 2.39 | (0.20) | (0.20) | (0.48) | 0.59 | 0.48 | 0.31 | 1.57 | 0.89 | 5.07 | |
Net income (loss) from discontinued operations (in dollars per share) | (0.01) | 0.05 | 0.05 | (0.01) | 0 | 0 | 0.03 | (0.04) | 0.07 | 0 | (0.06) |
Net income (loss) to Bunge common shareholders (in dollars per share) | $ (0.52) | $ 2.44 | $ (0.15) | $ (0.21) | $ (0.48) | $ 0.59 | $ 0.51 | $ 0.27 | $ 1.64 | $ 0.89 | $ 5.01 |
SCHEDULE II-VALUATION AND QUA_2
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowances for doubtful accounts | |||
Movement in Valuation Allowances and Reserves | |||
Balance at beginning of period | $ 183 | $ 212 | $ 210 |
Charged to costs and expenses | 56 | 42 | 45 |
Charged to other accounts | (18) | (1) | 15 |
Deductions from reserves | (36) | (70) | (58) |
Balance at end of period | 185 | 183 | 212 |
Allowances for secured advances to suppliers | |||
Movement in Valuation Allowances and Reserves | |||
Balance at beginning of period | 65 | 50 | 42 |
Charged to costs and expenses | 21 | 20 | 1 |
Charged to other accounts | (10) | 0 | 9 |
Deductions from reserves | (6) | (5) | (2) |
Balance at end of period | 70 | 65 | 50 |
Allowances for recoverable taxes | |||
Movement in Valuation Allowances and Reserves | |||
Balance at beginning of period | 39 | 35 | 32 |
Charged to costs and expenses | 6 | 12 | 162 |
Charged to other accounts | (5) | (1) | 1 |
Deductions from reserves | (3) | (7) | (160) |
Balance at end of period | 37 | 39 | 35 |
Income tax valuation allowances | |||
Movement in Valuation Allowances and Reserves | |||
Balance at beginning of period | 900 | 839 | 798 |
Charged to costs and expenses | 114 | 43 | (44) |
Charged to other accounts | (98) | 18 | 85 |
Deductions from reserves | (150) | 0 | 0 |
Balance at end of period | $ 766 | $ 900 | $ 839 |