DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 25, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-16625 | |
Entity Registrant Name | BUNGE LIMITED | |
Entity Incorporation, State or Country Code | D0 | |
Entity Tax Identification Number | 98-0231912 | |
Entity Address, Address Line One | 50 Main Street | |
Entity Address, City or Town | White Plains | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10606 | |
City Area Code | 914 | |
Local Phone Number | 684-2800 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Shares, $0.01 par value per share | |
Trading Symbol | BG | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 141,662,473 | |
Entity Central Index Key | 0001144519 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Net sales | $ 10,323 | $ 11,412 | $ 30,357 | $ 34,200 |
Cost of goods sold | (11,301) | (10,494) | (30,386) | (32,356) |
Gross profit | (978) | 918 | (29) | 1,844 |
Selling, general and administrative expenses | (329) | (333) | (969) | (1,054) |
Interest income | 8 | 7 | 22 | 21 |
Interest expense | (86) | (101) | (249) | (265) |
Foreign exchange gains (losses) | (129) | (20) | (147) | (116) |
Other income (expense) – net | 4 | (19) | 222 | 9 |
Income (loss) from continuing operations before income tax | (1,510) | 452 | (1,150) | 439 |
Income tax (expense) benefit | 28 | (85) | (70) | (106) |
Income (loss) from continuing operations | (1,482) | 367 | (1,220) | 333 |
Income (loss) from discontinued operations, net of tax | 0 | 7 | 0 | 12 |
Net income (loss) | (1,482) | 374 | (1,220) | 345 |
Net (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests | (6) | (9) | (9) | (13) |
Net income (loss) attributable to Bunge | (1,488) | 365 | (1,229) | 332 |
Convertible preference share dividends | (8) | (8) | (25) | (25) |
Net income (loss) available to Bunge common shareholders | $ (1,496) | $ 357 | $ (1,254) | $ 307 |
Earnings per common share—basic (Note 19) | ||||
Net income (loss) from continuing operations (in dollars per share) | $ (10.57) | $ 2.48 | $ (8.87) | $ 2.09 |
Net income (loss) from discontinued operations (in dollars per share) | 0 | 0.05 | 0 | 0.09 |
Net income (loss) attributable to Bunge common shareholders—basic (in dollars per share) | (10.57) | 2.53 | (8.87) | 2.18 |
Earnings per common share—diluted (Note 19) | ||||
Net income (loss) from continuing operations (in dollars per share) | (10.57) | 2.39 | (8.87) | 2.08 |
Net income (loss) from discontinued operations (in dollars per share) | 0 | 0.05 | 0 | 0.08 |
Net income (loss) attributable to Bunge common shareholders—diluted (in dollars per share) | $ (10.57) | $ 2.44 | $ (8.87) | $ 2.16 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (1,482) | $ 374 | $ (1,220) | $ 345 |
Other comprehensive income (loss): | ||||
Foreign exchange translation adjustment | (364) | (168) | (296) | (1,225) |
Unrealized gains (losses) on designated hedges, net of tax (expense) benefit of $1 and nil in 2019 and $1 and $4 in 2018 | 32 | 8 | 1 | 172 |
Unrealized gains (losses) on investments, net of tax (expense) benefit of nil and nil in 2019 and nil and nil in 2018 | 0 | (1) | 0 | (1) |
Reclassification of realized net (gains) losses to net income, net of tax expense (benefit) of nil and $1 in 2019 and nil and nil in 2018 | (6) | 0 | (8) | (1) |
Pension adjustment, net of tax (expense) benefit of nil and nil in 2019 and $1 and $1 in 2018 | 0 | (3) | 0 | (2) |
Total other comprehensive income (loss) | (338) | (164) | (303) | (1,057) |
Total comprehensive income (loss) | (1,820) | 210 | (1,523) | (712) |
Less: comprehensive (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests | 17 | (8) | 16 | 16 |
Total comprehensive income (loss) attributable to Bunge | $ (1,803) | $ 202 | $ (1,507) | $ (696) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized gains (losses) on designated cash flow and net investment hedges, tax (expense) benefit | $ 1 | $ 1 | $ 0 | $ 4 |
Unrealized gains (losses) on investments, net of tax (expense) benefit | 0 | 0 | 0 | 0 |
Reclassification of realized net losses (gains) to net income, tax expense (benefit) | 0 | 0 | 1 | 0 |
Pension adjustment, tax (expense) benefit | $ 0 | $ 1 | $ 0 | $ 1 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Current assets: | |||
Cash and cash equivalents | $ 291 | $ 389 | $ 267 |
Trade accounts receivable (less allowances of $110 and $113) (Note 14) | 1,834 | 1,637 | |
Inventories (Note 6) | 5,466 | 5,871 | |
Assets held for sale (Note 3) | 76 | 0 | |
Other current assets (Note 7) | 3,159 | 3,171 | |
Total current assets | 10,826 | 11,068 | |
Property, plant and equipment, net | 4,126 | 5,201 | |
Operating lease assets (Note 4) | 746 | ||
Goodwill | 701 | 727 | |
Other intangible assets, net | 606 | 697 | |
Investments in affiliates | 472 | 451 | |
Deferred income taxes | 445 | 458 | |
Other non-current assets (Note 8) | 712 | 823 | |
Total assets | 18,634 | 19,425 | 21,446 |
Current liabilities: | |||
Short-term debt | 1,825 | 750 | |
Current portion of long-term debt (Note 13) | 65 | 419 | |
Trade accounts payable (includes $699 and $441 carried at fair value) | 3,046 | 3,501 | |
Current operating lease obligations (Note 4) | 191 | ||
Liabilities held for sale (Note 3) | 460 | 0 | |
Other current liabilities (Note 10) | 1,782 | 2,502 | |
Total current liabilities | 7,369 | 7,172 | |
Long-term debt (Note 13) | 4,581 | 4,203 | |
Deferred income taxes | 333 | 356 | |
Non-current operating lease obligations (Note 4) | 520 | ||
Other non-current liabilities | 769 | 892 | |
Commitments and contingencies (Note 16) | |||
Redeemable noncontrolling interest (Note 17) | 413 | 424 | |
Equity (Note 18): | |||
Convertible perpetual preference shares, par value $.01; authorized – 21,000,000 shares, issued and outstanding: 2019 and 2018 - 6,899,683 shares (liquidation preference $100 per share) | 690 | 690 | |
Common shares, par value $.01; authorized – 400,000,000 shares; issued and outstanding: 2019 – 141,580,003 shares, 2018 – 141,111,081 shares | 1 | 1 | |
Additional paid-in capital | 5,312 | 5,278 | |
Retained earnings | 6,611 | 8,059 | |
Accumulated other comprehensive income (loss) (Note 18) | (7,234) | (6,935) | |
Treasury shares, at cost - 2019 and 2018 - 12,882,313 shares | (920) | (920) | |
Total Bunge shareholders’ equity | 4,460 | 6,173 | |
Noncontrolling interests | 189 | 205 | |
Total equity | 4,649 | 6,378 | $ 6,487 |
Total liabilities, redeemable noncontrolling interest and equity | $ 18,634 | $ 19,425 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Trade accounts receivable, allowances (in dollars) | $ 110 | $ 113 |
Trade accounts payable at fair value | $ 699 | $ 441 |
Convertible perpetual preference shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Convertible perpetual preference shares, authorized (in shares) | 21,000,000 | 21,000,000 |
Convertible perpetual preference shares, issued (in shares) | 6,899,683 | 6,899,683 |
Convertible perpetual preference shares, outstanding (in shares) | 6,899,683 | 6,899,683 |
Convertible perpetual preference shares, liquid preference (in dollars per share) | $ 100 | $ 100 |
Common shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common shares, authorized (in shares) | 400,000,000 | 400,000,000 |
Common shares, issued (in shares) | 141,580,003 | 141,111,081 |
Common shares, outstanding (in shares) | 141,580,003 | 141,111,081 |
Common shares, at cost (in shares) | 12,882,313 | 12,882,313 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
OPERATING ACTIVITIES | ||
Net income (loss) | $ (1,220) | $ 345 |
Adjustments to reconcile net income (loss) to cash provided by (used for) operating activities: | ||
Impairment charges | 1,664 | 5 |
Foreign exchange loss on net debt | 152 | 134 |
Bad debt expense | 5 | 28 |
Depreciation, depletion and amortization | 428 | 463 |
Share-based compensation expense | 30 | 31 |
Deferred income tax (benefit) | (19) | 11 |
Other, net | (34) | 51 |
Changes in operating assets and liabilities, excluding the effects of acquisitions and dispositions: | ||
Trade accounts receivable | (314) | (159) |
Inventories | (55) | (2,465) |
Secured advances to suppliers | (302) | (195) |
Trade accounts payable and accrued liabilities | (298) | 182 |
Advances on sales | (172) | (157) |
Net unrealized gains and losses on derivative contracts | (320) | 23 |
Margin deposits | 145 | (266) |
Marketable securities | (309) | 92 |
Beneficial interest in securitized trade receivables | (767) | (1,439) |
Other, net | 73 | 31 |
Cash provided by (used for) operating activities | (1,313) | (3,285) |
INVESTING ACTIVITIES | ||
Payments made for capital expenditures | (378) | (318) |
Acquisitions of businesses (net of cash acquired) | 0 | (968) |
Proceeds from investments | 373 | 1,080 |
Payments for investments | (342) | (1,163) |
Settlements of net investment hedges | (45) | 124 |
Proceeds from beneficial interest in securitized trade receivables | 800 | 1,432 |
Payments for investments in affiliates | (9) | (3) |
Other, net | 25 | 40 |
Cash provided by (used for) investing activities | 424 | 224 |
FINANCING ACTIVITIES | ||
Net change in short-term debt with maturities of 90 days or less | 1,158 | 1,490 |
Proceeds from short-term debt with maturities greater than 90 days | 109 | 475 |
Repayments of short-term debt with maturities greater than 90 days | (198) | (166) |
Proceeds from long-term debt | 4,766 | 9,191 |
Repayments of long-term debt | (4,793) | (8,049) |
Proceeds from the exercise of options for common shares | 8 | 11 |
Dividends paid to common and preference shareholders | (237) | (225) |
Other, net | (17) | (18) |
Cash provided by (used for) financing activities | 796 | 2,709 |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (7) | 18 |
Net increase (decrease) in cash and cash equivalents and restricted cash | (100) | (334) |
Cash and cash equivalents and restricted cash - beginning of period | 393 | 605 |
Cash and cash equivalents and restricted cash - end of period | $ 293 | $ 271 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS (Unaudited) - 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, 2017 | $ 0 | |||||||||
Balance (in shares) at Dec. 31, 2017 | 6,899,700 | 140,646,829 | ||||||||
Balance at Dec. 31, 2017 | $ 7,357 | $ 690 | $ 1 | $ 5,226 | $ 8,081 | $ (5,930) | $ (920) | $ 209 | ||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net income (loss) | 345 | 332 | 13 | |||||||
Other comprehensive income (loss) | (1,034) | (1,028) | (6) | (23) | ||||||
Dividends on common shares | (206) | (206) | ||||||||
Dividends on preference shares | (25) | (25) | ||||||||
Dividends to noncontrolling interests on subsidiary common stock | (6) | (6) | ||||||||
Deconsolidation of a subsidiary | (3) | (3) | ||||||||
Acquisition of noncontrolling interest | 461 | |||||||||
Share-based compensation expense | 31 | 31 | ||||||||
Impact of adoption of new accounting standards | 21 | 21 | ||||||||
Issuance of shares (in shares) | 17 | 434,910 | ||||||||
Issuance of (conversion to) common shares, including stock dividends | 7 | 7 | ||||||||
Balance at Sep. 30, 2018 | 438 | |||||||||
Balance (in shares) at Sep. 30, 2018 | 6,899,683 | 141,081,739 | ||||||||
Balance at Sep. 30, 2018 | 6,487 | $ 690 | $ 1 | 5,264 | 8,203 | (6,958) | (920) | 207 | ||
Balance at Jun. 30, 2018 | 441 | |||||||||
Balance (in shares) at Jun. 30, 2018 | 6,899,683 | 141,065,939 | ||||||||
Balance at Jun. 30, 2018 | 6,343 | $ 690 | $ 1 | 5,253 | 7,917 | (6,795) | (920) | 197 | ||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net income (loss) | 375 | 365 | 10 | (1) | ||||||
Other comprehensive income (loss) | (162) | (163) | 1 | (2) | ||||||
Dividends on common shares | (71) | (71) | ||||||||
Dividends on preference shares | (8) | (8) | ||||||||
Dividends to noncontrolling interests on subsidiary common stock | 0 | |||||||||
Deconsolidation of a subsidiary | (1) | (1) | ||||||||
Share-based compensation expense | 10 | 10 | ||||||||
Issuance of shares (in shares) | 15,800 | |||||||||
Issuance of (conversion to) common shares, including stock dividends | 1 | 1 | ||||||||
Balance at Sep. 30, 2018 | 438 | |||||||||
Balance (in shares) at Sep. 30, 2018 | 6,899,683 | 141,081,739 | ||||||||
Balance at Sep. 30, 2018 | 6,487 | $ 690 | $ 1 | 5,264 | 8,203 | (6,958) | (920) | 207 | ||
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 | ||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net income (loss) | (1,229) | (1,229) | 9 | |||||||
Other comprehensive income (loss) | (283) | (278) | (5) | (20) | ||||||
Dividends on common shares | (213) | (213) | ||||||||
Dividends on preference shares | (26) | (26) | ||||||||
Dividends to noncontrolling interests on subsidiary common stock | (12) | (12) | ||||||||
Contribution from noncontrolling interest | 1 | 1 | ||||||||
Share-based compensation expense | 30 | 30 | ||||||||
Impact of adoption of new accounting standards | [1] | 0 | 21 | (21) | ||||||
Issuance of shares (in shares) | 468,922 | |||||||||
Issuance of (conversion to) common shares, including stock dividends | 3 | 4 | (1) | |||||||
Balance at Sep. 30, 2019 | 413 | 413 | ||||||||
Balance (in shares) at Sep. 30, 2019 | 6,899,683 | 141,580,003 | ||||||||
Balance at Sep. 30, 2019 | 4,649 | $ 690 | $ 1 | 5,312 | 6,611 | (7,234) | (920) | 189 | ||
Balance at Jun. 30, 2019 | 425 | |||||||||
Balance (in shares) at Jun. 30, 2019 | 6,899,683 | 141,533,722 | ||||||||
Balance at Jun. 30, 2019 | 6,525 | $ 690 | $ 1 | 5,300 | 8,179 | (6,919) | (920) | 194 | ||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net income (loss) | (1,487) | (1,488) | 1 | 5 | ||||||
Other comprehensive income (loss) | (321) | (315) | (6) | (17) | ||||||
Dividends on common shares | (71) | (71) | ||||||||
Dividends on preference shares | (9) | (9) | ||||||||
Share-based compensation expense | 13 | 13 | ||||||||
Issuance of shares (in shares) | 46,281 | |||||||||
Issuance of (conversion to) common shares, including stock dividends | (1) | (1) | ||||||||
Balance at Sep. 30, 2019 | 413 | $ 413 | ||||||||
Balance (in shares) at Sep. 30, 2019 | 6,899,683 | 141,580,003 | ||||||||
Balance at Sep. 30, 2019 | $ 4,649 | $ 690 | $ 1 | $ 5,312 | $ 6,611 | $ (7,234) | $ (920) | $ 189 | ||
[1] | See Note 2 for further details. |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends on common shares (in dollars per share) | $ 0.50 | $ 0.50 | $ 1.50 | $ 1.46 |
Dividends on preferred shares (in dollars per share) | $ 1.21875 | $ 1.21875 | $ 3.65625 | $ 3.65625 |
BASIS OF PRESENTATION, PRINCIPL
BASIS OF PRESENTATION, PRINCIPLES OF CONSOLIDATION, AND SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION, PRINCIPLES OF CONSOLIDATION, AND SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION, PRINCIPLES OF CONSOLIDATION, AND SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited condensed consolidated financial statements include the accounts of Bunge Limited (“Bunge” or the "Company"), its subsidiaries and variable interest entities (“VIEs”) in which Bunge is considered to be the primary beneficiary, and as a result, include the assets, liabilities, revenues and expenses of all entities over which Bunge has a controlling financial interest. The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X under the Securities Exchange Act of 1934, as amended (“Exchange Act”). Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to Securities and Exchange Commission (“SEC”) rules. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation have been included. The condensed consolidated balance sheet at December 31, 2018 has been derived from Bunge’s audited consolidated financial statements at that date. Operating results for the nine months ended September 30, 2019 are not necessarily indicative of the results to be expected for the year ending December 31, 2019 . The financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2018 , forming part of Bunge’s 2018 Annual Report on Form 10-K filed with the SEC on February 22, 2019 . Cash, Cash Equivalents, and Restricted Cash Restricted cash is included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheet that sums to the total of the same such amounts shown in the condensed consolidated statements of cash flows. (US$ in millions) September 30, 2019 September 30, 2018 Cash and cash equivalents $ 291 $ 267 Restricted cash included in other current assets 2 4 Total $ 293 $ 271 |
ACCOUNTING PRONOUNCEMENTS
ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
ACCOUNTING PRONOUNCEMENTS | ACCOUNTING PRONOUNCEMENTS The below outlines updates on certain previously disclosed Accounting Standards Updates ("ASUs"). New Accounting Pronouncements In June 2016, the Financial Accounting Standards Board 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. The Company will adopt the guidance under a modified-retrospective approach with a cumulative effect adjustment to opening retained earnings as of the effective date. The impact of this standard on the Company's consolidated financial statements cannot be reasonably determined at this time as the company works through data gathering, estimation methodologies, judgments, and accounting policy elections. In addition, Bunge expects the impact to be influenced by the composition of the portfolio, and current and expected environment as of the adoption date. Recently Adopted Accounting Pronouncements On January 1, 2019 the Company adopted ASU 2016-02, Leases (Topic 842) . Under the new provisions, all leases, except short-term leases, are recognized on the balance sheet as right-of-use assets and lease liabilities for the obligation to make payments under such leases. The Company has elected the amended transition approach provided by ASU 2018-11, Leases (Topic 842): Targeted Improvements , which allows entities to apply the guidance as of the date of initial application by recognizing a cumulative-effect adjustment to opening retained earnings, with no retrospective adjustments. The Company also elected the package of practical expedients that permits the Company to not reassess under the new standard prior conclusions about lease identification, lease classification, and initial direct costs, as well as the practical expedient to not separate lease components from non-lease components in accounting for all classes of underlying assets. Upon adoption, the Company recorded $1,006 million of operating lease assets and $962 million of operating lease liabilities. Included in Operating lease assets at January 1, 2019 was $44 million of prepaid lease balances that were reclassified from Other non-current assets. On January 1, 2019 the Company adopted 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 ("AOCI") 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. The Company's stranded tax effects relate to unrecognized costs associated with certain pension plans for which the tax benefit was initially recorded to AOCI. Absent this ASU, the Company's policy is to release stranded tax effects upon the pension plans' termination. Upon the adoption of this ASU, the Company elected to reclassify the income tax effects of the Tax Act, resulting in a decrease to AOCI and an increase to retained earnings of $21 million |
GLOBAL COMPETITIVENESS PROGRAM
GLOBAL COMPETITIVENESS PROGRAM AND PORTFOLIO RATIONALIZATION INITIATIVES | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
GLOBAL COMPETITIVENESS PROGRAM AND PORTFOLIO RATIONALIZATION INITIATIVES | GLOBAL COMPETITIVENESS PROGRAM AND PORTFOLIO RATIONALIZATION INITIATIVES Global Competitiveness Program - In July 2017 , the Company 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, by the end of 2019, the GCP is expected to reduce the Company’s overhead costs by approximately $250 million annually. The Company identified key elements of its strategy to meet this goal, including adopting a zero-based budgeting process that will target excess costs in specific budget categories and improving efficiency and scalability by simplifying organizational structures, streamlining processes and consolidating back office functions globally, including the relocation of the Company’s global headquarters. In conjunction with the GCP, the Company has implemented other cost reduction and strategic initiatives to enhance the efficiency and performance of the Company’s business. The table below sets forth, by segment, the types of costs recorded for the GCP: Nine Months Ended September 30, 2019 2018 (US$ 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 Total Program Costs Agribusiness Segment $ 11 $ 3 $ 4 $ 18 $ 14 $ 16 $ 30 Edible Oils Segment 4 1 1 6 2 4 6 Milling Segment 2 — 1 3 — 2 2 Sugar and Bioenergy Segment — — 1 1 2 4 6 Fertilizer Segment — — — — 2 1 3 Total $ 17 $ 4 $ 7 $ 28 $ 20 $ 27 $ 47 In addition to the above charges, nil and $1 million of severance and other employee benefit costs were recorded related to other industrial productivity initiatives for the nine months ended September 30, 2019 and 2018 , respectively. For the nine months ended September 30, 2019 and 2018 costs recorded above, $2 million and $9 million , respectively, were recorded in Cost of goods sold (COGS) and $26 million and $39 million , respectively, were recorded in Selling, general and administrative expenses (SG&A). Bunge's liability related to the GCP and other associated initiatives is primarily comprised of accruals for severance and other employee benefit costs. The following table sets forth the activity affecting the liability for severance and other employee benefit costs related to the GCP and other associated initiatives, which is recorded in Other current liabilities on the condensed consolidated balance sheet. (US$ in millions) Severance and Other Employee Benefit Costs Balance at January 1, 2019 $ 3 Charges incurred 17 Cash payments (10 ) Balance at September 30, 2019 $ 10 Portfolio Rationalization Initiatives - The Company's portfolio rationalization initiatives may include the sale or disposal of long-lived assets and certain other investments, resulting in certain gains and charges being recorded in earnings. For the nine months ended September 30, 2019 and 2018 , $1,659 million and $29 million , respectively, of such charges have been recognized. Non-cash impairment charges in 2019 of $1,524 million , recorded in COGS, relate to the formation of a joint venture involving the company's sugar and bioenergy operations in Brazil, as further discussed below. Additional non-cash impairment charges of $22 million , recorded in SG&A, relate to operating lease assets and leasehold improvements associated with the recently announced relocation of the company's global headquarters. Furthermore, $113 million of non-cash impairment charges, recorded in COGS, relate to PP&E subject to portfolio rationalization initiatives. Of the above charges recorded in the nine months ended September 30, 2019, $1,526 million , $98 million , $17 million , $17 million , and $1 million were recorded in the company's Sugar and Bioenergy, Agribusiness, Edible Oils Products, Milling Products, and Fertilizer segments, respectively. On July 22, 2019, certain indirect wholly-owned subsidiaries of the Company entered into a Business Combination Agreement (the “Business Combination Agreement”) with certain wholly-owned subsidiaries of BP p.l.c. (collectively, “BP”) to form a 50 / 50 joint venture (the “Joint Venture”) relating to their sugar and bioenergy operations, in Brazil. Pursuant to the Business Combination Agreement, the Company and BP will contribute their respective interests in their Brazilian sugar and bioenergy operations to the Joint Venture. The Company will receive cash proceeds of $775 million in the transaction, comprising $700 million in respect of non-recourse debt of the Company to be assumed by the Joint Venture at closing, and $75 million from BP, subject to customary closing adjustments. The Company intends to use the proceeds to reduce outstanding indebtedness under its credit facilities. The Joint Venture agreements provide for certain exit rights of the parties, including private sale rights beginning 18 months after closing and the ability by the Company to trigger an initial public offering of the Joint Venture after two years from closing, enabling future monetization potential. The transaction is expected to close in the fourth quarter of 2019, subject to customary closing conditions. In connection with the entry into the Business Contribution Agreement, the Company has classified the assets and liabilities to be transferred to the Joint Venture under the Business Contribution Agreement as held for sale in its condensed, consolidated financial statements in the quarter ended September 30, 2019. Accordingly, the Company recorded those assets and liabilities at fair value, less estimated transaction costs. As a result of the classification as held for sale, the Company recognized an impairment charge in its Sugar and Bioenergy segment, principally related to the recognition of cumulative currency translation effects, of $1,524 million , recorded in COGS, in the quarter ended September 30, 2019. During the period the company's sugar and bioenergy assets are held for sale, total Bunge shareholders' equity will be reduced by the above-mentioned impairment charge, as included in the impairment charges of $1,524 million recorded in the third quarter, were the consideration of cumulative foreign currency translation losses totaling $1,491 million . These cumulative currency translation effects are recorded as “Foreign currency translation adjustments” in accumulated other comprehensive income and will be released from accumulated other comprehensive income when the transaction closes. Accordingly, upon close, this release of cumulative currency translation effects will substantially offset the reduction of total equity from the impairment charge recorded in the quarter ended September 30, 2019. The following table presents the major classes of assets and liabilities included in Assets held for sale and Liabilities held for sale on the Condensed Consolidated Balance Sheet at September 30, 2019: (US$ in millions) Trade accounts receivable $ 28 Inventories 306 Other current assets 139 Property, plant and equipment, net 812 Operating lease assets 271 Other non-current assets 44 Impairment provision to record at fair value, less cost to sell (1,524 ) Assets held for sale $ 76 Trade accounts payable $ 73 Current operating lease obligations 46 Other current liabilities 67 Non-current operating lease obligations 228 Other non-current liabilities 46 Liabilities held for sale $ 460 |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
LEASES | LEASES The Company routinely leases storage facilities, transportation equipment, land, and office facilities which are typically classified as operating leases. The accounting for some of the Company's leases may require significant judgment when determining whether a contract is or contains a lease, the lease term, and the likelihood of renewal or termination options. Leases with an initial term of more than 12 months are recognized on the balance sheet as right-of-use assets (Operating lease assets) and lease liabilities for the obligation to make payments under such leases (Current operating lease obligations and Non-current operating lease obligations). As of the lease commencement date, the lease liability is initially measured as the present value of lease payments not yet paid. The lease asset is initially measured equal to the lease liability and adjusted for lease payments made at or before lease commencement (e.g., prepaid rent), lease incentives, and any initial direct costs. Over time, the lease liability is reduced for lease payments made and the lease asset is reduced through expense, classified as either Cost of goods sold or Selling, general and administrative expense depending upon the nature of the lease. Lease assets are subject to review for impairment in a manner consistent with Property, plant and equipment. Leases with an initial term of 12 months or less (“short-term leases”) are not recorded on the balance sheet, and lease expense for these short-term leases is recognized on a straight-line basis over the lease term. The Company’s leases range in length of term, with an average remaining lease term of 6.4 years , but with certain land leases continuing for up to 93 years . Additionally, certain leases contain renewal options that can extend the lease term up to an additional 5 years . Renewal options are generally exercisable solely at the Company’s discretion. When a renewal option is reasonably certain to be exercised, such additional terms are considered when calculating the associated operating lease asset and liability. When determining the lease liability at commencement of the lease, the present value of lease payments is based on the Company’s incremental borrowing rate determined using a portfolio approach and the Company’s incremental cost of debt, adjusted to arrive to the rate in the applicable country and for the applicable term of the lease, as the rate implicit in the lease is generally not readily determinable. As of September 30, 2019 , such weighted average discount rate was 6.5% . Certain of the Company’s freight supply agreements for ocean freight vessels and rail cars, as well as land leases associated with agricultural partnership agreements for the production of sugarcane, may include rental payments that are variable in nature. Variable payments on time charter agreements for ocean freight vessels under freight supply agreements are dependent on then current market daily hire rates. Variable payments for certain rail cars can be based on volumes, and in some cases, benchmark interest rates. Payments under the Company's agricultural partnership agreements in Brazil are dependent on 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. All such variable payments are not included in the calculation of the associated operating lease asset or liability subsequent to the inception date of the associated lease and are recorded as expense in the period in which the adjustment to the variable payment obligation is incurred. Certain of the Company’s lease agreements related to railcars and barges contain residual value guarantees (see Note 16, Commitments and Contingencies). None of the Company’s lease agreements contain material restrictive covenants. The components of lease expense were as follows: (US$ in millions) Three Months Ended Nine Months Ended Operating lease cost $ 97 $ 257 Short-term lease cost 270 571 Variable lease cost 9 17 Sublease income (30 ) (80 ) Total lease cost $ 346 $ 765 Supplemental cash flow information related to leases was as follows: Nine Months Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows associated with operating leases $ 252 Supplemental non-cash information: Right-of-use assets obtained in exchange for lease obligations $ 229 Maturities of lease liabilities for operating leases as of September 30, 2019 , are as follows: (US$ in millions) Remaining in 2019 $ 77 2020 275 2021 230 2022 186 2023 139 Thereafter 299 Total lease payments (1) 1,206 Less imputed interest 221 Total present value of lease liabilities 985 Less: Current operating lease obligations classified as held for sale (Note 3) (46 ) Non-current operating lease obligations classified as held for sale (Note 3) (228 ) Present value of lease liabilities, as separately presented on the condensed consolidated balance sheet $ 711 (1) Minimum lease payments have not been reduced by minimum sublease income receipts of $41 million due in future periods under non-cancelable subleases. Non-cancelable subleases primarily relate to agreements with third parties for the use of portions of certain facilities with remaining sublease terms of approximately 6 years , as well as an agreement with an unconsolidated joint venture in which the Company subleases rail cars with remaining sublease terms of approximately three to four years . Additionally, the Company may enter into re-let agreements to sell the right to use ocean freight vessels under time charter agreements when excess capacity is available . As of September 30, 2019 , the Company has additional operating leases for freight supply agreements on ocean freight vessels, that have not yet commenced, of $356 million . These operating leases will commence in 2019 and 2020 , with lease terms of up to eight years . Prior year lease disclosures The following pertains to previously disclosed information from Note 21, Commitments and contingencies and Note 26, Lease commitments , contained in the Company's 2018 Annual Report on Form 10-K, which incorporates information about leases now in scope of ASC 842, Leases , disclosed above. Operating leases for storage facilities, transportation equipment and office facilities —Future minimum lease payments by year and in the aggregate under non-cancelable operating leases with initial term of one year or more at December 31, 2018 are as follows: (US$ in millions) 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 $43 million due in future periods under non-cancelable subleases. Freight Supply Agreements —In the ordinary course of business, the Company enters into time charter agreements for the use of ocean freight vessels for the purpose of transporting agricultural commodities. In addition, the Company sells the right to use these ocean freight vessels when excess freight capacity is available. These agreements generally range from two months to approximately seven years . Future minimum payment obligations due under these agreements as of December 31, 2018 are as follows: (US$ in millions) 2019 $ 172 2020 and 2021 176 2022 and 2023 121 2024 and thereafter 37 Total $ 506 |
TRADE STRUCTURED FINANCE PROGRA
TRADE STRUCTURED FINANCE PROGRAM | 9 Months Ended |
Sep. 30, 2019 | |
Trade Structured Finance Program [Abstract] | |
TRADE STRUCTURED FINANCE PROGRAM | TRADE STRUCTURED FINANCE PROGRAM The Company engages in various trade structured finance activities to leverage the value of its global trade flows. For the nine months ended September 30, 2019 and 2018 , net returns from these activities were $18 million and $23 million , respectively, and were included as a reduction of Cost of goods sold in the accompanying condensed consolidated statements of income. These activities include programs under which the Company generally obtains U.S. dollar-denominated letters of credit (“LCs”), each based on an underlying commodity trade flow, from financial institutions and time deposits denominated in either the local currency of the financial institutions' counterparties or in U.S. dollars, as well as foreign exchange forward contracts, and other programs in which trade related payables are set-off against receivables, all of which are subject to legally enforceable set-off agreements. As of September 30, 2019 and December 31, 2018 , time deposits and LCs of $3,087 million and $4,729 million , respectively, were presented net on the condensed consolidated balance sheets as the criteria of ASC 210-20, Offsetting , had been met. At September 30, 2019 and December 31, 2018 , time deposits, including those presented on a net basis, carried weighted-average interest rates of 3.49% and 3.76% , respectively. During the nine months ended September 30, 2019 and 2018 , total net proceeds from issuances of LCs were $2,281 million and $4,409 million , respectively. These cash inflows are offset by the related cash outflows resulting from placement of the time deposits and repayment of the LCs. All cash flows related to the programs are included in operating activities in the condensed consolidated statements of cash flows. |
INVENTORIES
INVENTORIES | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories by segment are presented below. Readily marketable inventories (“RMI”) are agricultural commodity inventories, such as soybeans, soybean meal, soybean oil, corn, and wheat carried at fair value because of their commodity characteristics, widely available markets, and international pricing mechanisms. The Company engages in trading and distribution, or merchandising activities, and part of RMI can be attributable to such activities and is not held for processing. All other inventories are carried at lower of cost or net realizable value. (US$ in millions) September 30, December 31, Agribusiness (1) $ 4,486 $ 4,551 Edible Oil Products (2) 694 742 Milling Products 160 220 Sugar and Bioenergy (3) 11 280 Fertilizer 115 78 Total $ 5,466 $ 5,871 (1) Includes RMI of $4,327 million and $4,365 million at September 30, 2019 and December 31, 2018 , respectively. Of these amounts, $3,283 million and $3,300 million can be attributable to merchandising activities at September 30, 2019 and December 31, 2018 , respectively. (2) Includes RMI of $100 million and $88 million at September 30, 2019 and December 31, 2018 , respectively. (3) Includes RMI of $10 million and $79 million at September 30, 2019 and December 31, 2018 , respectively. Of these amounts, $4 million and $74 million can be attributable to merchandising activities at September 30, 2019 and December 31, 2018 , respectively. |
OTHER CURRENT ASSETS
OTHER CURRENT ASSETS | 9 Months Ended |
Sep. 30, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER CURRENT ASSETS | OTHER CURRENT ASSETS Other current assets consist of the following: (US$ in millions) September 30, December 31, Unrealized gains on derivative contracts, at fair value $ 899 $ 1,071 Prepaid commodity purchase contracts (1) 310 253 Secured advances to suppliers, net (2) 369 257 Recoverable taxes, net 435 500 Margin deposits 202 348 Marketable securities, at fair value, and other short-term investments 459 162 Deferred purchase price receivable, at fair value (3) 95 128 Income taxes receivable 27 102 Prepaid expenses 170 165 Other 193 185 Total $ 3,159 $ 3,171 (1) Prepaid commodity purchase contracts represent advance payments against contracts for future delivery of specified quantities of agricultural commodities. (2) The Company provides cash advances to suppliers, primarily Brazilian farmers of soybeans and sugarcane, to finance a portion of the suppliers’ production costs. The Company does not bear any of the costs or operational risks associated with the related growing crops. The advances are largely collateralized by future crops and physical assets of the suppliers, carry a local market interest rate, and settle when the farmers' crops are harvested and sold. The secured advances to farmers are reported net of allowances of $1 million at September 30, 2019 and $1 million at December 31, 2018 . Interest earned on secured advances to suppliers of $6 million and $6 million for the three months ended September 30, 2019 and 2018 , respectively, and $19 million and $24 million for the nine months ended September 30, 2019 and 2018 , respectively, is included in net sales in the condensed consolidated statements of income. (3) Deferred purchase price receivable represents additional credit support for the investment conduits in the Company’s trade receivables securitization program (see Note 14). Marketable Securities and Other Short-Term Investments - The Company invests in foreign government securities, corporate debt securities, deposits, equity securities, and other securities. The following is a summary of amounts recorded in the Company's condensed consolidated balance sheets as marketable securities and other short-term investments. (US$ in millions) September 30, December 31, Foreign government securities $ 204 $ 55 Corporate debt securities 110 91 Certificates of deposit/time deposits — 15 Equity securities 132 — Other 13 1 Total $ 459 $ 162 As of September 30, 2019 and December 31, 2018 , $449 million and $144 million , respectively, of marketable securities and other short-term investments are recorded at fair value. All other investments are recorded at cost, and due to the short-term nature of these investments, their carrying values approximate fair values. For the nine months ended September 30, 2019 , unrealized gains of $140 million have been recorded for investments still held at September 30, 2019 . |
OTHER NON-CURRENT ASSETS
OTHER NON-CURRENT ASSETS | 9 Months Ended |
Sep. 30, 2019 | |
Other Assets, Noncurrent [Abstract] | |
OTHER NON-CURRENT ASSETS | OTHER NON-CURRENT ASSETS Other non-current assets consist of the following: (US$ in millions) September 30, December 31, Recoverable taxes, net (1) $ 77 $ 112 Judicial deposits (1) 105 115 Other long-term receivables 5 8 Income taxes receivable (1) 210 221 Long-term investments 77 91 Affiliate loans receivable 28 29 Long-term receivables from farmers in Brazil, net (1) 72 93 Other 138 154 Total $ 712 $ 823 (1) These non-current assets arise primarily from the Company’s Brazilian operations and their realization could take several years. Recoverable taxes, net - Recoverable taxes are reported net of allowances of $27 million and $27 million at September 30, 2019 and December 31, 2018 , respectively. Judicial deposits - Judicial deposits are funds the Company has placed on deposit with the courts in Brazil. These funds are held in judicial escrow relating to certain legal proceedings pending resolution and bear interest at the SELIC rate, which is the benchmark rate of the Brazilian central bank. Income taxes receivable - Income taxes receivable include overpayments of current income taxes plus accrued interest. These income tax prepayments are expected to be primarily utilized for settlement of future income tax obligations. Income taxes receivable in Brazil bear interest at the 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 - The Company provides financing to farmers in Brazil, primarily through secured advances against farmer commitments to deliver agricultural commodities (primarily soybeans) upon harvest of the then-current year’s crop and through credit sales of fertilizer to farmers. Certain such long-term receivables from farmers are originally recorded in other current assets as prepaid commodity contracts or secured advances to suppliers (see Note 7) and reclassified to other non-current assets when collection issues with farmers arise and amounts become past due with resolution of such matters expected to take more than one year. The average recorded investment in long-term receivables from farmers in Brazil for the nine months ended September 30, 2019 and the year ended December 31, 2018 was $192 million and $215 million , respectively. The table below summarizes the Company’s recorded investment in long-term receivables from farmers in Brazil and the related allowance amounts. September 30, 2019 December 31, 2018 (US$ in millions) Recorded Investment Allowance Recorded Investment Allowance For which an allowance has been provided: Legal collection process (1) $ 98 $ 85 $ 105 $ 89 Renegotiated amounts (2) 10 10 17 17 For which no allowance has been provided: Legal collection process (1) 51 — 51 — Renegotiated amounts (2) 5 — 10 — Other long-term receivables 3 — 16 — Total $ 167 $ 95 $ 199 $ 106 (1) All amounts in legal process are considered past due upon initiation of legal action. (2) All renegotiated amounts are current on repayment terms. The table below summarizes the activity in the allowance for doubtful accounts related to long-term receivables from farmers in Brazil. Three Months Ended Nine Months Ended (US$ in millions) 2019 2018 2019 2018 Beginning balance $ 103 $ 98 $ 106 $ 113 Bad debt provisions 2 1 3 5 Recoveries (3 ) (4 ) (8 ) (7 ) Write-offs — (1 ) — (2 ) Transfers 1 — 1 — Foreign exchange translation (8 ) (4 ) (7 ) (19 ) Ending balance $ 95 $ 90 $ 95 $ 90 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income tax expense is provided on an interim basis based on management’s estimate of the annual effective income tax rate and includes the tax effects of certain discrete items, such as changes in tax laws or tax rates or other unusual or non-recurring tax adjustments in the interim period in which they occur. In addition, jurisdictions with a projected loss for the year or a year-to-date loss where no tax benefit can be recognized are excluded from the estimated annual effective tax rate. The effective tax rate is highly dependent on the geographic distribution of the Company’s worldwide earnings or losses and tax regulations in each jurisdiction. Management regularly monitors the assumptions used in estimating its annual effective tax rate and adjusts estimates accordingly, including the realizability of deferred tax assets. Volatility in earnings within a taxing jurisdiction could result in a determination that additional valuation allowance adjustments may be warranted. For the nine months ended September 30, 2019 and 2018 , income tax expense related to continuing operations was $70 million and $106 million , respectively. The lower income tax expense for the nine months ended September 30, 2019 is primarily due to an overall pretax loss and the favorable resolution of uncertain tax positions. The effective tax rate for the nine months ended September 30, 2019 was adversely impacted primarily due to non-deductible currency losses on the held for sale classification of the company's sugar milling business. The effective tax rate for the nine months ended September 30, 2018 was closer to the statutory rate of 21%. As a global enterprise, the Company files income tax returns that are subject to periodic examination and challenge by federal, state and foreign tax authorities. In many jurisdictions, income tax examinations, including settlement negotiations or litigation, may take several years to finalize. The Company is currently under examination or litigation in various locations throughout the world. While it is difficult to predict the outcome or timing of resolution of any particular matter, management believes that the condensed consolidated financial statements reflect the largest amount of tax benefit that is more likely than not to be realized. |
OTHER CURRENT LIABILITIES
OTHER CURRENT LIABILITIES | 9 Months Ended |
Sep. 30, 2019 | |
Other Liabilities Disclosure [Abstract] | |
OTHER CURRENT LIABILITIES | OTHER CURRENT LIABILITIES Other current liabilities consist of the following: (US$ in millions) September 30, December 31, Unrealized losses on derivative contracts, at fair value $ 683 $ 1,192 Accrued liabilities 531 618 Advances on sales 227 405 Other 341 287 Total $ 1,782 $ 2,502 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The fair value standard describes three levels within its hierarchy that may be used to measure fair value. Level Description Financial Instrument (Assets / Liabilities) Level 1 Quoted prices (unadjusted) in active markets for identical assets or liabilities. Exchange traded derivative contracts. Marketable securities in active markets. Level 2 Observable inputs, including adjusted Level 1 quotes, quoted prices for similar assets or liabilities, quoted prices in markets that are less active than traded exchanges and other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Exchange traded derivative contracts (less liquid market). 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. Assets and liabilities whose value is determined using proprietary pricing models, discounted cash flow methodologies or similar techniques. In many cases, a valuation technique used to measure fair value includes inputs from multiple levels of the fair value hierarchy. The lowest level of input that is a significant component of the fair value measurement determines the placement of the entire fair value measurement in the hierarchy. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the classification of fair value assets and liabilities within the fair value hierarchy levels. The Company’s policy regarding the timing of transfers between levels, including both transfers into and transfers out of Level 3, is to measure and record the transfers at the end of the reporting period. For a further definition of fair value and the associated fair value levels, refer to Note 15, Financial Instruments and Fair Value Measurements , included in the Company's 2018 Annual Report on Form 10-K. The following table sets forth, by level, the Company’s assets and liabilities that were accounted for at fair value on a recurring basis. Fair Value Measurements at Reporting Date September 30, 2019 December 31, 2018 (US$ in millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Readily marketable inventories (Note 6) $ — $ 3,854 $ 583 $ 4,437 $ — $ 4,286 $ 246 $ 4,532 Unrealized gain on derivative contracts (1) : 1 Interest rate — 71 — 71 — 6 — 6 Foreign exchange 3 364 — 367 — 473 — 473 Commodities 24 429 12 465 128 407 18 553 Freight 19 — 3 22 6 — 6 12 Energy 41 — — 41 30 — — 30 Deferred purchase price receivable (Note 14) — 95 — 95 — 128 — 128 Other (2) 144 323 — 467 67 98 — 165 Total assets $ 231 $ 5,135 $ 598 $ 5,965 $ 231 $ 5,398 $ 270 $ 5,899 Liabilities: Trade accounts payable (3) $ — $ 509 $ 190 $ 699 $ — $ 394 $ 47 $ 441 Unrealized loss on derivative contracts (4): Interest rate — 14 — 14 — 42 — 42 Foreign exchange — 328 — 328 — 499 — 499 Commodities 35 245 20 300 152 446 23 621 Freight 26 — 4 30 13 — 6 19 Energy 31 — 2 33 43 — 1 44 Equity 1 — — 1 — — — — Total liabilities $ 93 $ 1,096 $ 216 $ 1,405 $ 208 $ 1,381 $ 77 $ 1,666 (1) Unrealized gains on derivative contracts are generally included in other current assets. There were $60 million and $3 million included in other non-current assets at September 30, 2019 and December 31, 2018 , respectively. There were also $7 million included in assets held for sale (Note 3) at September 30, 2019 . (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 the Company has elected the fair value option. (4) Unrealized losses on derivative contracts are generally included in other current liabilities. There are $1 million and $33 million included in other non-current liabilities at September 30, 2019 and December 31, 2018 , respectively. There were also $22 million included in liabilities held for sale (Note 3) at September 30, 2019 . Readily marketable inventories —RMI reported at fair value are valued based on commodity futures exchange quotations, broker or dealer quotations, or market transactions in either listed or OTC markets with appropriate adjustments for differences in local markets where the Company's inventories are located. In such cases, the inventory is classified within Level 2. Certain inventories may utilize significant unobservable data related to local market adjustments to determine fair value. In such cases, the inventory is classified as Level 3. If the Company used different methods or factors to determine fair values, amounts reported as unrealized gains and losses on derivative contracts and RMI at fair value in the 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. Derivatives —The majority of exchange traded futures and options contracts and exchange cleared contracts are valued based on unadjusted quoted prices in active markets and are classified within Level 1. The majority of the Company’s exchange-traded agricultural commodity futures are cash-settled on a daily basis and, therefore, are not included in these tables. The Company's forward commodity purchase and sale contracts are classified as derivatives along with other OTC derivative instruments relating primarily to freight, energy, foreign exchange and interest rates, and are classified within Level 2 or Level 3 as described below. The Company estimates fair values based on exchange quoted prices, adjusted as appropriate for differences in local markets. These differences are generally valued using inputs from broker or dealer quotations, or market transactions in either the listed or OTC markets. In such cases, these derivative contracts are classified within Level 2. OTC derivative contracts include swaps, options and structured transactions that are generally fair valued using quantitative models that require the use of multiple market inputs including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets which are not highly active, other observable inputs relevant to the asset or liability, and market inputs corroborated by correlation or other means. These valuation models include inputs such as interest rates, prices and indices to generate continuous yield or pricing curves and volatility factors. Where observable inputs are available for substantially the full term of the asset or liability, the instrument is categorized in Level 2. Certain OTC derivatives trade in less active markets with less availability of pricing information and certain structured transactions can require internally developed model inputs that might not be observable in or corroborated by the market. Level 3 Measurements The following relates to Level 3 measurements. An instrument may transfer into or out of Level 3 due to inputs becoming either observable or unobservable. Level 3 Readily marketable inventories and other —The significant unobservable inputs resulting in Level 3 classification for RMI, physically settled forward purchase and sale contracts, and trade accounts payable, relate to certain management estimations regarding costs of transportation and other local market or location-related adjustments, primarily freight related adjustments in the interior of Brazil and the lack of market corroborated information in Canada. In both situations, the Company uses proprietary information such as purchase and sale contracts and contracted prices to value freight, premiums and discounts in its contracts. Movements in the price of these unobservable inputs alone would not have a material effect on the Company's financial statements as these contracts do not typically exceed one future crop cycle. Level 3 Derivatives —Level 3 derivative instruments utilize both market observable and unobservable inputs within the fair value measurements. These inputs include commodity prices, price volatility, interest rates, volumes and locations. The tables below present reconciliations for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three and nine months ended September 30, 2019 and 2018 . These instruments were valued using pricing models that management believes reflect the assumptions that would be used by a marketplace participant. Three Months Ended September 30, 2019 (US$ in millions) Readily Derivatives, Trade Total Balance, July 1, 2019 $ 772 $ (14 ) $ (335 ) $ 423 Total gains and losses (realized/unrealized) included in cost of goods sold (1) 81 — 1 82 Purchases 329 — (14 ) 315 Sales (744 ) — — (744 ) Issuances — — — — Settlements — 2 158 160 Transfers into Level 3 213 1 (1 ) 213 Transfers out of Level 3 (68 ) — 1 (67 ) Balance, September 30, 2019 $ 583 $ (11 ) $ (190 ) $ 382 1) Readily marketable inventories, derivatives, net and trade accounts payable, include gains/(losses) of $60 million , $(1) million and $0 million , respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at September 30, 2019 . Three Months Ended September 30, 2018 (US$ in millions) Readily Derivatives, Trade Accounts Payable Total Balance, July 1, 2018 $ 1,225 $ 16 $ (265 ) $ 976 Total gains and losses (realized/unrealized) included in cost of goods sold (1) 80 (12 ) 4 72 Purchases 317 — (31 ) 286 Sales (898 ) — — (898 ) Issuances — (2 ) — (2 ) Settlements — (2 ) 231 229 Transfers into Level 3 255 (5 ) (1 ) 249 Transfers out of Level 3 (33 ) — (32 ) (65 ) Balance, September 30, 2018 $ 946 $ (5 ) $ (94 ) $ 847 1) Readily marketable inventories, derivatives, net and trade accounts payable, includes gains/(losses) of $50 million , $(19) million and $0 million , respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at September 30, 2018 . Nine Months Ended September 30, 2019 (US$ in millions) Readily Derivatives, Trade Total Balance, January 1, 2019 $ 246 $ (6 ) $ (47 ) $ 193 Total gains and losses (realized/unrealized) included in cost of goods sold (1) 263 (6 ) 14 271 Purchases 1,654 — (446 ) 1,208 Sales (2,077 ) — — (2,077 ) Issuances — (1 ) — (1 ) Settlements — 2 303 305 Transfers into Level 3 678 — (30 ) 648 Transfers out of Level 3 (181 ) — 16 (165 ) Balance, September 30, 2019 $ 583 $ (11 ) $ (190 ) $ 382 1) Readily marketable inventories, derivatives, net and trade accounts payable, include gains/(losses) of $160 million , $(10) million and $0 million , respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at September 30, 2019 . Nine Months Ended September 30, 2018 (US$ in millions) Readily Derivatives, Trade Total Balance, January 1, 2018 $ 365 $ 2 $ (116 ) $ 251 Total gains and losses (realized/unrealized) included in cost of goods sold (1) 189 (1 ) 17 205 Purchases 1,462 10 (282 ) 1,190 Sales (1,444 ) — — (1,444 ) Issuances — (11 ) — (11 ) Settlements — 5 381 386 Transfers into Level 3 530 (9 ) (80 ) 441 Transfers out of Level 3 (156 ) (1 ) (14 ) (171 ) Balance, September 30, 2018 $ 946 $ (5 ) $ (94 ) $ 847 1) Readily marketable inventories, derivatives, net and trade accounts payable, include gains/(losses) of $31 million , $(17) 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 September 30, 2018 . Certain assets and liabilities that have been classified as Assets held for sale and Liabilities held for sale are measured at fair value, less costs to sell, on a nonrecurring basis. In the third quarter of 2019 , the Company recognized impairment charges of $1,524 million |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES The Company uses derivative instruments to manage several market risks, such as interest rate, foreign currency rate, and commodity risk. Some of those hedges the Company enters into qualify for hedge accounting in the financial statements (Hedge Accounting Derivatives) and some, while intended as economic hedges, do not qualify or are not designated for hedge accounting (Economic Hedge Derivatives). As these derivatives impact the financial statements in different ways, they are discussed separately below. Hedge Accounting Derivatives - The Company uses derivatives in qualifying hedge accounting relationships to manage certain of its interest rate, foreign currency, and commodity risks. In executing these hedge strategies, the Company primarily relies on the shortcut and critical terms match methods in designing its hedge accounting strategy, which results in little to no net earnings impact for these hedge relationships. The Company monitors these relationships on a quarterly basis and performs a quantitative analysis to validate the assertion that the hedges are highly effective if there are changes to the hedged item or hedging derivative. Fair value hedges - These derivatives are used to hedge the effect of interest rate and currency exchange rate changes on certain long-term debt. Under fair value hedge accounting, the derivative is measured at fair value and the carrying value of hedged debt is adjusted for the change in value related to the exposure being hedged, with both adjustments offset to earnings. In other words, the earnings effect of an increase in the fair value of the derivative will be substantially offset by the earnings effect of the increase in the carrying value of the hedged debt. The net impact of fair value hedge accounting for interest rate swaps is recognized in Interest expense. For cross currency swaps the changes in currency risk on the derivative are recognized in Foreign exchange gains (losses), and the changes in interest rate risk are recognized in Interest expense. Changes in basis risk are held in Accumulated other comprehensive income (loss) until realized through the coupon. Cash flow hedges of currency risk - The Company manages currency risk on certain forecasted purchases, sales, and selling, general and administrative expenses with currency forwards. The change in the value of the forward is 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 Net sales, Cost of goods sold or Selling, general and administrative expenses. These hedges mature at various times through March 2021 . Of the amount currently in Accumulated other comprehensive income (loss), $(4) million is expected to be reclassified to earnings in the next twelve months. Cash flow hedges of commodity risk - The Company manages commodity price risk on certain forecasted purchases and sales with commodity futures. The change in the value of the future is classified in Accumulated other comprehensive income (loss) until the transaction affects earnings, at which time the change in value of the commodity future is reclassified to Net sales or Cost of goods sold. These hedges mature at various times through March 2021 . Of the amount currently in Accumulated other comprehensive income (loss), $9 million is expected to be reclassified to earnings in the next twelve months. Net investment hedges - The Company hedges the currency risk of certain of its foreign subsidiaries with currency forwards and intercompany loans for which the currency risk is remeasured through Accumulated other comprehensive income (loss). For currency forwards, the forward method is used. The change in the value of the forward is classified in Accumulated other comprehensive income (loss) until the transaction affects earnings. The table below provides information about the balance sheet values of hedged items and the notional amount of derivatives used in hedging strategies. The notional amount of the derivative is the number of units of the underlying (for example, the notional principal amount of the debt in an interest rate swap). The notional amount is used to compute interest or other payment streams to be made under the contract and is a measure of the Company’s level of activity. The Company discloses derivative notional amounts on a gross basis. (US$ in millions) September 30, 2019 December 31, 2018 Unit of Hedging instrument type: Fair value hedges of interest rate risk Carrying value of hedged debt $ 2,272 $ 2,229 $ Notional Cumulative adjustment to long-term debt from application of hedge accounting $ 58 $ (29 ) $ Notional Interest rate swap - notional amount $ 2,221 $ 2,266 $ Notional Fair value hedges of currency risk Carrying value of hedged debt $ 340 $ 312 $ Notional Cross currency swap - notional amount $ 340 $ 313 $ Notional Cash flow hedges of currency risk Foreign currency forward - notional amount $ 173 $ 50 $ Notional Foreign currency option - notional amount $ 50 $ — $ Notional Cash flow hedges of commodity risk Commodity price risk future - notional amount 327 — Metric Tons Net investment hedges Foreign currency forward - notional amount $ 899 $ 1,888 $ Notional Carrying value of non-derivative hedging instrument $ 868 $ 912 $ Notional Economic Hedge Derivatives - In addition to using derivatives in qualifying hedge relationships, the Company enters into derivatives to economically hedge its exposure to a variety of market risks it incurs in the normal course of operations. Interest rate derivatives are used to hedge exposures to the Company's financial instrument portfolios and debt issuances. The impact of changes in fair value of these instruments is primarily presented in Interest expense. Currency derivatives are used to hedge the balance sheet and commercial exposures that arise from the Company's global operations. The impact of changes in fair value of these instruments is presented in Cost of goods sold when hedging commercial exposures and Foreign exchange gains (losses) when hedging monetary exposures. Agricultural commodity derivatives are used primarily to manage the Company's inventory and forward purchase and sales contracts. Contracts to purchase agricultural commodities generally relate to current or future crop years for delivery periods quoted by regulated commodity exchanges. Contracts for the sale of agricultural commodities generally do not extend beyond one future crop cycle. The impact of changes in fair value of these instruments is presented in Cost of goods sold. The Company uses derivative instruments referred to as forward freight agreements ("FFA") and FFA options to hedge portions of its current and anticipated ocean freight costs. The impact of changes in fair value of these instruments is presented in Cost of goods sold. The Company uses energy derivative instruments to manage its exposure to volatility in energy costs. Hedges may be entered into for natural gas, electricity, coal and fuel oil, including bunker fuel. The impact of changes in fair value of these instruments is presented in Cost of goods sold. The Company may also enter into other derivatives, including credit default swaps and equity derivatives to manage exposure to credit risk and broader macroeconomic risks, respectively. The impact of changes in fair value of these instruments is presented in Cost of goods sold. The table below summarizes the volume of economic derivatives as of September 30, 2019 and December 31, 2018 . 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. September 30, December 31, 2019 2018 Unit of Long (Short) Long (Short) Interest rate Swaps $ 6,832 $ (90 ) $ 3,349 $ (111 ) $ Notional FRAs $ 614 $ (396 ) $ 139 $ (149 ) $ Notional Currency Forwards $ 8,368 $ (10,186 ) $ 13,713 $ (13,701 ) $ Notional Swaps $ 127 $ (122 ) $ 127 $ (535 ) $ Notional Futures $ — $ (17 ) $ — $ (16 ) $ Notional Options $ 134 $ (154 ) $ 869 $ (919 ) Delta Agricultural commodities Forwards 41,559,859 (41,271,504 ) 25,523,840 (29,314,930 ) Metric Tons Swaps — (5,352,391 ) — (9,908,728 ) Metric Tons Futures — (248,058 ) 4,136,525 — Metric Tons Options — (176,980 ) 718,709 — Metric Tons Ocean freight FFA — (2,746 ) — (90 ) Hire Days FFA options — (12 ) 302 — Hire Days Natural gas Swaps 349,763 — 1,205,687 — MMBtus Futures 1,025,000 — 2,268,190 — MMBtus Energy - other Forwards 5,534,290 — 5,536,290 — Metric Tons Futures — — — (29,367 ) Metric Tons Swaps 156,993 — 188,800 — Metric Tons Other Swaps and futures $ 185 $ — $ 52 $ — $ Notional The Effect of Derivative Instruments and Hedge Accounting on the Condensed Consolidated Statements of Income The tables below summarize the net effect of derivative instruments and hedge accounting on the condensed consolidated statements of income for the three and nine months ended September 30, 2019 and 2018 . Gain (Loss) Recognized in Three Months Ended September 30, (US$ in millions) 2019 2018 Income statement classification Type of derivative Net sales Hedge accounting Foreign currency $ (2 ) $ (1 ) Cost of goods sold Hedge accounting Foreign currency $ — $ — Commodities 10 Economic hedges Foreign currency (20 ) (32 ) Commodities 190 313 Other (1) (27 ) 14 Total Cost of goods sold $ 153 $ 295 Interest expense Hedge accounting Interest rate $ (3 ) $ (3 ) Economic hedges Interest rate 1 — Total Interest expense $ (2 ) $ (3 ) Foreign exchange gains (losses) Hedge accounting Foreign currency $ (1 ) $ (6 ) Economic hedges Foreign currency (17 ) 46 Total Foreign exchange gains (losses) $ (18 ) $ 40 Other comprehensive income (loss) Gains and losses on derivatives used as fair value hedges of foreign currency risk included in other comprehensive income (loss) during the period $ — $ — Gains and losses on derivatives used as cash flow hedges of foreign currency risk included in other comprehensive income (loss) during the period $ (10 ) $ 3 Gains and losses on derivatives used as cash flow hedges of commodity price risk included in other comprehensive income (loss) during the period $ 12 $ — Gains and losses on derivatives used as net investment hedges included in other comprehensive income (loss) during the period $ (10 ) $ 1 Foreign currency gains and losses on intercompany loans used as net investment hedges included in other comprehensive income (loss) during the period $ 39 $ 7 Amounts released from accumulated other comprehensive income (loss) during the period Cash flow hedge of foreign currency risk $ (2 ) $ — Cash flow hedge of commodity risk $ (9 ) $ — (1) Other includes the results from freight, energy and other derivatives. Gain (Loss) Recognized in Nine Months Ended September 30, (US$ in millions) 2019 2018 Income statement classification Type of derivative Net sales Hedge accounting Foreign currency $ — $ (2 ) Cost of goods sold Hedge accounting Foreign currency $ — $ 1 Commodities 10 — Economic hedges Foreign currency 146 (446 ) Commodities 84 485 Other (1) 1 14 Total Cost of goods sold $ 241 $ 54 Interest expense Hedge accounting Interest rate $ (11 ) $ (3 ) Economic hedges Interest rate (9 ) — Total Interest expense $ (20 ) $ (3 ) Foreign exchange gains (losses) Hedge accounting Foreign currency $ 7 $ (18 ) Economic hedges Foreign currency 14 2 Total Foreign exchange gains (losses) $ 21 $ (16 ) Other comprehensive income (loss) Gains and losses on derivatives used as fair value hedges of foreign currency risk included in other comprehensive income (loss) during the period $ (2 ) $ (1 ) Gains and losses on derivatives used as cash flow hedges of foreign currency risk included in other comprehensive income (loss) during the period $ (7 ) $ (2 ) Gains and losses on derivatives used as cash flow hedges of commodity price risk included in other comprehensive income (loss) during the period $ 20 $ — Gains and losses on derivatives used as net investment hedges included in other comprehensive income (loss) during the period $ (55 ) $ 134 Foreign currency gains and losses on intercompany loans used as net investment hedges included in other comprehensive income (loss) during the period $ 44 $ 42 Amounts released from accumulated other comprehensive income (loss) during the period Cash flow hedge of foreign currency risk $ — $ (1 ) Cash flow hedge of commodity risk $ (9 ) $ — (1) Other includes the results from freight, energy and other derivatives. |
DEBT
DEBT | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Bunge’s commercial paper program is supported by an identical amount of committed back-up bank credit lines (the “Liquidity Facility”) provided by banks that are rated at least A-1 by Standard & Poor’s Financial Services and P-1 by Moody’s Investors Service. The cost of borrowing under the Liquidity Facility would typically be higher than the cost of issuing under Bunge’s commercial paper program. At September 30, 2019 , there were $550 million of borrowings outstanding under the commercial paper program and no borrowings under the Liquidity Facility. In addition to committed facilities, from time to time, Bunge Limited and/or its financing subsidiaries enter into uncommitted bilateral short-term credit lines as necessary based on its financing requirements. At September 30, 2019 , there was $400 million 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 $875 million in short-term borrowings outstanding under local bank lines of credit at September 30, 2019 to support working capital requirements. At September 30, 2019 , Bunge had $4,088 million of unused and available borrowing capacity under its committed credit facilities totaling $5,015 million with a number of lending institutions. The fair value of Bunge’s long-term debt is based on interest rates currently available on comparable maturities to companies with credit standing similar to that of Bunge. The carrying amounts and fair value of long-term debt are as follows: September 30, 2019 December 31, 2018 (US$ in millions) Carrying Value Fair Value (Level 2) Carrying Fair Value Long-term debt, including current portion $ 4,646 $ 4,728 $ 4,622 $ 4,584 On July 1, 2019, Bunge entered into an unsecured five -year multi-currency syndicated term loan agreement (the "Term Loan") in the Japanese loan market, with certain lenders party thereto. The Term Loan is comprised of two tranches: Tranche A, Japanese Yen 30.7 billion ( $285 million ) bearing interest at three-month Yen LIBOR plus a margin of 0.75% and Tranche B, $90 million bearing interest at three-month LIBOR plus a margin of 1.30% . The proceeds were used to pre-pay amounts outstanding under Bunge’s existing multi-currency syndicated term loan facility in the Japanese loan market maturing in December 2019. |
TRADE RECEIVABLES SECURITIZATIO
TRADE RECEIVABLES SECURITIZATION PROGRAM | 9 Months Ended |
Sep. 30, 2019 | |
Transfers and Servicing [Abstract] | |
TRADE RECEIVABLES SECURITIZATION PROGRAM | TRADE RECEIVABLES SECURITIZATION PROGRAM Bunge and certain of its subsidiaries participate in a trade receivables securitization program (the “Program”) with a financial institution, as administrative agent, and certain commercial paper conduit purchasers and committed purchasers that provides for funding of receivables sold into the Program. On February 19, 2019 , Bunge exercised a portion of the $300 million accordion feature under the Program to increase the aggregate size of the facility by $100 million from $700 million to an aggregate of $800 million . (US$ in millions) September 30, December 31, Receivables sold which were derecognized from Bunge's balance sheet $ 827 $ 826 Deferred purchase price included in other current assets $ 95 $ 128 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. Nine Months Ended (US$ in millions) 2019 2018 Gross receivables sold $ 7,287 $ 7,233 Proceeds received in cash related to transfer of receivables $ 7,069 $ 6,982 Cash collections from customers on receivables previously sold $ 5,949 $ 6,832 Discounts related to gross receivables sold included in SG&A $ 12 $ 10 Non-cash activity for the program in the reporting period is represented by the difference between gross receivables sold and cash collections from customers on receivables previously sold. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2019 | |
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 $19 million at September 30, 2019 , which matures in September 2021, with interest based on CDI, the average overnight interbank loan rate in Brazil. The Company holds a note receivable from Bunge SCF Grain LLC, a 50% equity method investment in the U.S., with a carrying value of $7 million at September 30, 2019 , which matures on March 31, 2023, with an interest rate based on LIBOR. In addition, the Company held notes receivables from other related parties totaling $6 million at September 30, 2019 . Notes payable - The Company holds a note payable with Bunge SCF Grain LLC with a carrying value of $26 million at September 30, 2019 . This note matures on March 31, 2023 with a variable interest rate of 2.09% . Other - The Company purchased agricultural commodity products from certain of its unconsolidated investees and other related parties totaling $330 million and $389 million for the three months ended September 30, 2019 and 2018 , respectively, and $1,091 million and $1,183 million for the nine months ended September 30, 2019 and 2018 , respectively. The Company also sold agricultural commodity products to certain of its unconsolidated investees and other related parties totaling $147 million and $155 million for the three months ended September 30, 2019 and 2018 , re s pectively, and $478 million and $676 million for the nine months ended September 30, 2019 and 2018 , re s pectively. In addition, the Company receives services from and provides services to its unconsolidated investees, including tolling, port services, administrative support, and other services. During the three months ended September 30, 2019 and 2018 , the Company received services totaling $23 million and $39 million , respectively, and provided services of $7 million and $6 million , respectively. During the nine months ended September 30, 2019 and 2018 , the Company received services totaling $73 million and $95 million , respectively, and provided services of $17 million and $17 million , respectively. The Company believes all transaction values to be similar to those that would be conducted with third parties. Subsequent to the issuance of the June 30, 2019 interim condensed consolidated financial statements, the Company identified errors in the previously reported amounts of the purchased and sold agricultural commodity products from and to certain of its unconsolidated investees and other related parties for the three and nine months ended September 30, 2018. Previously reported amounts purchased were $352 million and $1,016 million , and previously reported amounts sold were $75 million and $294 million , for the three and nine months ended September 30, 2018, respectively. At September 30, 2019 and December 31, 2018 , the Company had approximately $26 million and $28 million of receivables from these related parties included in trade accounts receivable in the condensed consolidated balance sheets as of those dates. In addition, at September 30, 2019 and December 31, 2018 , the Company had approximately $54 million and $26 million of payables to these related parties included in trade accounts payable in the condensed consolidated balance sheets as of those dates. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Bunge is party to claims and lawsuits, primarily non-income tax and labor claims in South America, arising in the normal course of business. Bunge is also involved from time to time in various contract, antitrust, environmental litigation and remediation and other litigation, claims, government investigations and legal proceedings. The ability to predict the ultimate outcome of such matters involves judgments, estimates and inherent uncertainties. Bunge records liabilities related to legal matters when the exposure item becomes probable and can be reasonably estimated. Bunge management does not expect these matters to have a material adverse effect on Bunge’s financial condition, results of operations or liquidity. However, these matters are subject to inherent uncertainties and there exists the remote possibility that a liability arising from these matters could have a material adverse impact in the period the uncertainties are resolved should the liability substantially exceed the amount of provisions included in the condensed consolidated balance sheets. Included in other non-current liabilities at September 30, 2019 and December 31, 2018 are the following amounts related to these matters: (US$ in millions) September 30, 2019 (1) December 31, Non-income tax claims $ 82 $ 94 Labor claims 72 78 Civil and other claims 85 95 Total $ 239 $ 267 (1) At September 30, 2019, non-income tax claims, labor claims, and civil and other claims include $4 million , $23 million , and $2 million , respectively, related to the Company's Brazilian sugar and bioenergy operations, recorded in Liabilities held for sale. 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 condensed consolidated financial statements. On February 13, 2015, Brazil’s Supreme Federal Court ruled in a leading case that certain state ICMS tax credits for staple foods (including soy oil, margarine, mayonnaise and wheat flours) are unconstitutional. Bunge, like other companies in the Brazilian food industry, is involved in several administrative and judicial disputes with Brazilian states regarding these tax credits. While the leading case does not involve Bunge and each case is unique in facts and circumstances and applicable state law, the ruling has general precedent authority in lower court cases. Based on management’s review of the ruling (without considering the future success of any potential clarification or modulation of the ruling) and its general application to Bunge’s pending cases, management recorded a liability in the fourth quarter of 2014. Since 2015, Bunge settled a portion of its outstanding liabilities in amnesty programs in certain Brazilian states. 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 reduced to 239 million Brazilian reais (approximately $57 million ) as of September 30, 2019 . As of September 30, 2019 , the Brazilian federal and state authorities have concluded examinations of the ICMS and PIS COFINS tax returns and have issued the outstanding claims (including applicable interest and penalties) as of: (US$ in millions) Years Examined September 30, 2019 December 31, 2018 ICMS 1990 to Present $ 252 $ 264 PIS/COFINS 2004 through 2015 $ 215 $ 231 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 September 30, 2019 , totaled approximately $321 million . In 2012, the Argentine government suspended Bunge’s Argentine subsidiary from a registry of grain traders. While the suspension has not had a material adverse effect on Bunge’s business in Argentina, these actions have resulted in additional administrative requirements and increased logistical costs on domestic grain shipments within Argentina. Bunge is challenging these actions in the Argentine courts. Labor claims — The labor claims are principally claims against Bunge’s Brazilian subsidiaries. The labor claims primarily relate to dismissals, severance, health and safety, salary adjustments and supplementary retirement benefits. Civil and other claims — The civil and other claims relate to various disputes with third parties, including suppliers and customers. During the first quarter of 2016, Bunge received a notice from the Brazilian Administrative Council for Economic Defense ("CADE") initiating an administrative proceeding against its Brazilian subsidiary and two of its employees, certain of its former employees, several other companies in the Brazilian wheat milling industry, and others for alleged anticompetitive activities in the north and northeast of Brazil. Additionally, in the second quarter of 2018, Bunge received a notification from CADE that it has extended the scope of an existing administrative proceeding relating to alleged anticompetitive practices in the Rio Grande port in Brazil to include certain of Bunge's Brazilian subsidiaries and certain former employees of those subsidiaries. Bunge is defending against these actions; however, the proceedings are at an early stage and Bunge cannot, at this time, reasonably predict the ultimate outcome of the proceedings or sanctions, if any, which may be imposed. Guarantees — Bunge has issued or was a party to the following guarantees at September 30, 2019 : (US$ in millions) Maximum Potential Future Payments Unconsolidated affiliates guarantee (1) (2) $ 303 Residual value guarantee (3) 260 Total $ 563 (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 September 30, 2019 , Bunge's potential liability was $161 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 September 30, 2019 , Bunge's maximum potential future payments under these guarantees was $54 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 the conclusion of the lease term. These leases expire at various dates from 2019 through 2024 . At September 30, 2019 , no obligation has been recorded related to these guarantees. Any obligation recorded would be recognized in Current operating lease obligations or Non-current operating lease obligations (see Note 4, Leases ). Bunge Limited has provided a guarantee to the Director of the Illinois Department of Agriculture as Trustee for Bunge North America, Inc. (“BNA”), an indirect wholly‑owned subsidiary, which guarantees all amounts due and owing by BNA to grain producers and/or depositors in the State of Illinois who have delivered commodities to BNA’s Illinois facilities. In addition, Bunge Limited has provided full and unconditional parent level guarantees of the outstanding indebtedness under certain credit facilities entered into, and senior notes issued, by its 100% owned subsidiaries. At September 30, 2019 , Bunge’s condensed consolidated balance sheet includes debt with a carrying amount of $6,176 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. |
REDEEMABLE NONCONTROLLING INTER
REDEEMABLE NONCONTROLLING INTEREST | 9 Months Ended |
Sep. 30, 2019 | |
Redeemable Noncontrolling Interest, Equity, Carrying Amount [Abstract] | |
REDEEMABLE NONCONTROLLING INTEREST | REDEEMABLE NONCONTROLLING INTEREST In connection with the acquisition of a 70% ownership interest in IOI Loders Croklaan ("Loders"), the Company has entered into a put/call arrangement with the Loders minority shareholder and may be required or elect to purchase the additional 30% ownership interest in Loders within a specified time frame. The Company classifies these redeemable equity securities outside of permanent stockholders’ equity as the equity securities are redeemable at the option of the holder. The carrying amount of redeemable noncontrolling interests is the greater of: (i) the initial carrying amount, increased or decreased for the noncontrolling interests’ share of net income or loss, equity capital contributions and distributions or (ii) the redemption value. Any resulting increases in the redemption amount, in excess of the initial carrying amount, increased or decreased for the noncontrolling interests’ share of net income or loss and distributions, are affected by corresponding charges against retained earnings. Additionally, any such charges to retained earnings will affect Net income (loss) available to Bunge common shareholders as part of the Company's calculation of earnings per common share. |
EQUITY
EQUITY | 9 Months Ended |
Sep. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
EQUITY | EQUITY Accumulated other comprehensive income (loss) attributable to Bunge — The following table summarizes the balances of related after-tax components of Accumulated other comprehensive income (loss) attributable to Bunge: (US$ in millions) Foreign Exchange Deferred Pension and Other Accumulated Balance, July 1, 2019 $ (6,567 ) $ (178 ) $ (174 ) $ (6,919 ) Other comprehensive income (loss) before reclassifications (341 ) 32 — (309 ) Amount reclassified from accumulated other comprehensive income (loss) — (6 ) — (6 ) Balance, September 30, 2019 $ (6,908 ) $ (152 ) $ (174 ) $ (7,234 ) (US$ in millions) Foreign Exchange Deferred Pension and Other Accumulated Balance, July 1, 2018 $ (6,576 ) $ (80 ) $ (139 ) $ (6,795 ) Other comprehensive income (loss) before reclassifications (182 ) 8 (3 ) (177 ) Amount reclassified from accumulated other comprehensive income (loss) 15 (1 ) — 14 Balance, September 30, 2018 $ (6,743 ) $ (73 ) $ (142 ) $ (6,958 ) (US$ in millions) Foreign Exchange Deferred Pension and Other Accumulated Balance, January 1, 2019 $ (6,637 ) $ (145 ) $ (153 ) $ (6,935 ) Other comprehensive income (loss) before reclassifications (271 ) 1 — (270 ) Amount reclassified from accumulated other comprehensive income (loss) — (8 ) (21 ) (29 ) Balance, September 30, 2019 $ (6,908 ) $ (152 ) $ (174 ) $ (7,234 ) (US$ in millions) Foreign Exchange Deferred Pension and Other Unrealized Accumulated Balance, January 1, 2018 $ (5,547 ) $ (244 ) $ (140 ) $ 1 $ (5,930 ) Other comprehensive income (loss) before reclassifications (1,225 ) 172 (2 ) — (1,055 ) Amount reclassified from accumulated other comprehensive income (loss) 29 (1 ) — (1 ) 27 Balance, September 30, 2018 $ (6,743 ) $ (73 ) $ (142 ) $ — $ (6,958 ) |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE The following table sets forth the computation of basic and diluted earnings per common share. Three Months Ended Nine Months Ended (US$ in millions, except for share data) 2019 2018 2019 2018 Income (loss) from continuing operations $ (1,482 ) $ 367 $ (1,220 ) $ 333 Net (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests (6 ) (9 ) (9 ) (13 ) Income (loss) from continuing operations attributable to Bunge (1,488 ) 358 (1,229 ) 320 Convertible preference share dividends (8 ) (8 ) (25 ) (25 ) Income (loss) from discontinued operations, net of tax — 7 — 12 Net income (loss) available to Bunge common shareholders - Basic (1,496 ) 357 (1,254 ) 307 Add back convertible preference share dividends — 8 — — Net income (loss) available to Bunge common shareholders - Diluted $ (1,496 ) $ 365 $ (1,254 ) $ 307 Weighted-average number of common shares outstanding: Basic 141,562,431 141,075,026 141,422,811 140,925,023 Effect of dilutive shares: —stock options and awards (1) — 653,334 — 798,388 —convertible preference shares (2) — 8,176,814 — — Diluted 141,562,431 149,905,174 141,422,811 141,723,411 Basic earnings per common share: Net income (loss) from continuing operations $ (10.57 ) $ 2.48 $ (8.87 ) $ 2.09 Net income (loss) from discontinued operations — 0.05 — 0.09 Net income (loss) attributable to Bunge common shareholders—basic $ (10.57 ) $ 2.53 $ (8.87 ) $ 2.18 Diluted earnings per common share: Net income (loss) from continuing operations $ (10.57 ) $ 2.39 $ (8.87 ) $ 2.08 Net income (loss) from discontinued operations — 0.05 — 0.08 Net income (loss) attributable to Bunge common shareholders—diluted $ (10.57 ) $ 2.44 $ (8.87 ) $ 2.16 (1) The weighted-average common shares outstanding-diluted excludes approximately 8 million and 5 million stock options and contingently issuable restricted stock units, which were not dilutive and not included in the computation of earnings per share for the three months ended September 30, 2019 and 2018 , respectively. The weighted-average common shares outstanding-diluted excludes approximately 8 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 nine months ended September 30, 2019 and 2018 , respectively. (2) Weighted-average common shares outstanding-diluted for the three months ended September 30, 2019 excludes approximately 8 million weighted-average common shares that are issuable upon conversion of the convertible preference shares that were not dilutive and not included in the weighted-average number of common shares. Weighted-average common shares outstanding-diluted for the nine months ended September 30, 2019 and 2018 excludes approximately 8 million and 8 million , respectively, weighted-average common shares that are issuable upon conversion of the convertible preference shares that were not dilutive and not included in the weighted-average number of common shares, respectively. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company has five reportable segments - Agribusiness, Edible Oil Products, Milling Products, Sugar and Bioenergy, and Fertilizer, which are organized based upon similar economic characteristics and are similar in nature of products and services offered, the nature of production processes, and the type and class of customer and distribution methods. The Agribusiness segment is characterized by both inputs and outputs being agricultural commodities and thus high volume and low margin. The Edible Oil Products segment involves the processing, production and marketing of products derived from vegetable oils. The Milling Products segment involves the processing, production and marketing of products derived primarily from wheat and corn. The Sugar and Bioenergy segment involves sugarcane growing and milling in Brazil, as well as sugarcane-based ethanol production and corn-based ethanol investments and related activities. The Fertilizer segment includes its port operations in Brazil and Argentina and its blending and retail operations in Argentina. The “Other” column in the following table contains the reconciliation between the totals for reportable segments and Bunge's consolidated totals, which consists primarily of amounts attributable to corporate and other items not allocated to the reportable segments, discontinued operations, and inter-segment eliminations. Transfers between the segments are generally valued at market. The segment revenues generated from these transfers are shown in the following table as “Inter-segment revenues.” Three Months Ended September 30, 2019 (US$ in millions) Agribusiness Edible Oil Products Milling Products Sugar and Bioenergy Fertilizer Other (1) Total Net sales to external customers $ 7,008 $ 2,319 $ 437 $ 381 $ 178 $ — $ 10,323 Inter–segment revenues 1,225 37 1 — 8 (1,271 ) — Foreign exchange gains (losses) (56 ) 5 — (78 ) — — (129 ) Noncontrolling interests (1) 2 (7 ) — (1 ) (2 ) 2 (6 ) Other income (expense) – net 17 — (1 ) (1 ) — (11 ) 4 Segment EBIT (2) 44 52 7 (1,554 ) 21 (10 ) (1,440 ) Depreciation, depletion and amortization (64 ) (39 ) (13 ) (16 ) (2 ) — (134 ) Total assets 12,331 3,868 1,441 266 394 334 18,634 Three Months Ended September 30, 2018 (US$ in millions) Agribusiness Edible Milling Sugar and Fertilizer Other (1) Total Net sales to external customers $ 7,905 $ 2,298 $ 427 $ 629 $ 153 $ — $ 11,412 Inter–segment revenues 1,162 38 — — 1 (1,201 ) — Foreign exchange gains (losses) (23 ) (2 ) 4 3 (2 ) — (20 ) Noncontrolling interests (1) (10 ) (1 ) — 1 (1 ) 2 (9 ) Other income (expense) – net (4 ) (1 ) (1 ) (1 ) — (12 ) (19 ) Segment EBIT (2) 464 30 30 — 23 (12 ) 535 Discontinued operations (3) — — — — — 7 7 Depreciation, depletion and amortization (61 ) (40 ) (15 ) (41 ) (2 ) — (159 ) Total assets 13,767 3,926 1,498 1,763 345 147 21,446 Nine Months Ended September 30, 2019 (US$ in millions) Agribusiness Edible Oil Products Milling Products Sugar and Bioenergy Fertilizer Other (1) Total Net sales to external customers $ 20,995 $ 6,764 $ 1,293 $ 950 $ 355 $ — $ 30,357 Inter–segment revenues 3,471 110 1 1 28 (3,611 ) — Foreign exchange gains (losses) (74 ) 4 3 (80 ) — — (147 ) Noncontrolling interests (1) 4 (13 ) — (1 ) (2 ) 3 (9 ) Other income (expense) – net 84 — 7 (3 ) (2 ) 136 222 Segment EBIT (2) 335 125 41 (1,589 ) 28 125 (935 ) Depreciation, depletion and amortization (192 ) (119 ) (40 ) (72 ) (5 ) — (428 ) Total assets 12,331 3,868 1,441 266 394 334 18,634 Nine Months Ended September 30, 2018 (US$ in millions) Agribusiness Edible Milling Sugar and Fertilizer Other (1) Total Net sales to external customers $ 24,092 $ 6,772 $ 1,262 $ 1,774 $ 300 $ — $ 34,200 Inter–segment revenues 3,457 128 — 18 1 (3,604 ) — Foreign exchange gains (losses) (116 ) 2 4 — (6 ) — (116 ) Noncontrolling interests (1) (9 ) (6 ) — 1 (2 ) 3 (13 ) Other income (expense) – net 42 (5 ) (3 ) (14 ) 1 (12 ) 9 Segment EBIT (2) 612 69 73 (87 ) 12 (12 ) 667 Discontinued operations (3) — — — — — 12 12 Depreciation, depletion and amortization (192 ) (113 ) (44 ) (108 ) (6 ) — (463 ) Total assets 13,767 3,926 1,498 1,763 345 147 21,446 (1) Includes noncontrolling interests share of interest and tax to reconcile to consolidated Noncontrolling interests. (2) Total segment earnings before interest and taxes (“EBIT”) is an operating performance measure used by Bunge’s management to evaluate segment operating activities. Bunge’s management believes total Segment EBIT is a useful measure of operating profitability, since the measure allows for an evaluation of the performance of its segments without regard to its financing methods or capital structure. In addition, total Segment EBIT is a financial measure that is widely used by analysts and investors in Bunge’s industry. However, total Segment EBIT is a non-GAAP financial measure and is not intended to replace Net income (loss) attributable to Bunge, the most directly comparable U.S. GAAP financial measure. Further, total Segment EBIT is not a measure of consolidated operating results under U.S. GAAP and should not be considered as an alternative to Net income (loss) or any other measure of consolidated operating results under U.S. GAAP. See the reconciliation of total Segment EBIT to Net income (loss) in the table below. (3) Represents Net income (loss) from discontinued operations. A reconciliation of total Segment EBIT to Net income (loss) attributable to Bunge follows: Three Months Ended Nine Months Ended (US$ in millions) 2019 2018 2019 2018 Total Segment EBIT from continuing operations $ (1,440 ) $ 535 $ (935 ) $ 667 Interest income 8 7 22 21 Interest expense (86 ) (101 ) (249 ) (265 ) Income tax (expense) benefit 28 (85 ) (70 ) (106 ) Income (loss) from discontinued operations, net of tax — 7 — 12 Noncontrolling interests' share of interest and tax 2 2 3 3 Net income (loss) attributable to Bunge $ (1,488 ) $ 365 $ (1,229 ) $ 332 The Company’s revenue comprises sales from commodity contracts that are accounted for under ASC 815, Derivatives and Hedging (ASC 815) and sales of other products and services that are accounted for under ASC 606, Revenue from Contracts with Customers (ASC 606). The following tables provide a disaggregation of Net sales to external customers between Sales from contracts with customers and Sales from other arrangements: Three Months Ended September 30, 2019 (US$ in millions) Agribusiness Edible Oil Products Milling Products Sugar and Bioenergy Fertilizer Total Sales from other arrangements $ 6,776 $ 526 $ 15 $ 200 $ — $ 7,517 Sales from contracts with customers 232 1,793 422 181 178 2,806 Net sales to external customers $ 7,008 $ 2,319 $ 437 $ 381 $ 178 $ 10,323 Three Months Ended September 30, 2018 (US$ in millions) Agribusiness Edible Milling Sugar and Fertilizer Total Sales from other arrangements $ 7,641 $ 492 $ 22 $ 431 $ — $ 8,586 Sales from contracts with customers 264 1,806 405 198 153 2,826 Net sales to external customers $ 7,905 $ 2,298 $ 427 $ 629 $ 153 $ 11,412 Nine Months Ended September 30, 2019 (US$ in millions) Agribusiness Edible Oil Products Milling Products Sugar and Bioenergy Fertilizer Total Sales from other arrangements $ 20,335 $ 1,438 $ 50 $ 556 $ — $ 22,379 Sales from contracts with customers 660 5,326 1,243 394 355 7,978 Net sales to external customers $ 20,995 $ 6,764 $ 1,293 $ 950 $ 355 $ 30,357 Nine Months Ended September 30, 2018 (US$ in millions) Agribusiness Edible Oil Products Milling Products Sugar and Bioenergy Fertilizer Total Sales from other arrangements $ 23,209 $ 1,334 $ 48 $ 1,317 $ — $ 25,908 Sales from contracts with customers 883 5,438 1,214 457 300 8,292 Net sales to external customers $ 24,092 $ 6,772 $ 1,262 $ 1,774 $ 300 $ 34,200 |
BASIS OF PRESENTATION, PRINCI_2
BASIS OF PRESENTATION, PRINCIPLES OF CONSOLIDATION, AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Principles of Consolidation | The accompanying unaudited condensed consolidated financial statements include the accounts of Bunge Limited (“Bunge” or the "Company"), its subsidiaries and variable interest entities (“VIEs”) in which Bunge is considered to be the primary beneficiary, and as a result, include the assets, liabilities, revenues and expenses of all entities over which Bunge has a controlling financial interest. The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X under the Securities Exchange Act of 1934, as amended (“Exchange Act”). Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to Securities and Exchange Commission (“SEC”) rules. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation have been included. The condensed consolidated balance sheet at December 31, 2018 has been derived from Bunge’s audited consolidated financial statements at that date. Operating results for the nine months ended September 30, 2019 are not necessarily indicative of the results to be expected for the year ending December 31, 2019 . The financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2018 , forming part of Bunge’s 2018 Annual Report on Form 10-K filed with the SEC on February 22, 2019 . |
Cash, Cash Equivalents and Restricted Cash | Restricted cash is included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. |
New Accounting Pronouncements | New Accounting Pronouncements In June 2016, the Financial Accounting Standards Board 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. The Company will adopt the guidance under a modified-retrospective approach with a cumulative effect adjustment to opening retained earnings as of the effective date. The impact of this standard on the Company's consolidated financial statements cannot be reasonably determined at this time as the company works through data gathering, estimation methodologies, judgments, and accounting policy elections. In addition, Bunge expects the impact to be influenced by the composition of the portfolio, and current and expected environment as of the adoption date. Recently Adopted Accounting Pronouncements On January 1, 2019 the Company adopted ASU 2016-02, Leases (Topic 842) . Under the new provisions, all leases, except short-term leases, are recognized on the balance sheet as right-of-use assets and lease liabilities for the obligation to make payments under such leases. The Company has elected the amended transition approach provided by ASU 2018-11, Leases (Topic 842): Targeted Improvements , which allows entities to apply the guidance as of the date of initial application by recognizing a cumulative-effect adjustment to opening retained earnings, with no retrospective adjustments. The Company also elected the package of practical expedients that permits the Company to not reassess under the new standard prior conclusions about lease identification, lease classification, and initial direct costs, as well as the practical expedient to not separate lease components from non-lease components in accounting for all classes of underlying assets. Upon adoption, the Company recorded $1,006 million of operating lease assets and $962 million of operating lease liabilities. Included in Operating lease assets at January 1, 2019 was $44 million of prepaid lease balances that were reclassified from Other non-current assets. On January 1, 2019 the Company adopted 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 ("AOCI") 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. The Company's stranded tax effects relate to unrecognized costs associated with certain pension plans for which the tax benefit was initially recorded to AOCI. Absent this ASU, the Company's policy is to release stranded tax effects upon the pension plans' termination. Upon the adoption of this ASU, the Company elected to reclassify the income tax effects of the Tax Act, resulting in a decrease to AOCI and an increase to retained earnings of $21 million |
BASIS OF PRESENTATION, PRINCI_3
BASIS OF PRESENTATION, PRINCIPLES OF CONSOLIDATION, AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of restricted cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheet that sums to the total of the same such amounts shown in the condensed consolidated statements of cash flows. (US$ in millions) September 30, 2019 September 30, 2018 Cash and cash equivalents $ 291 $ 267 Restricted cash included in other current assets 2 4 Total $ 293 $ 271 |
Schedule of cash and cash equivalents | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheet that sums to the total of the same such amounts shown in the condensed consolidated statements of cash flows. (US$ in millions) September 30, 2019 September 30, 2018 Cash and cash equivalents $ 291 $ 267 Restricted cash included in other current assets 2 4 Total $ 293 $ 271 |
GLOBAL COMPETITIVENESS PROGRA_2
GLOBAL COMPETITIVENESS PROGRAM AND PORTFOLIO RATIONALIZATION INITIATIVES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of global competitiveness program | The table below sets forth, by segment, the types of costs recorded for the GCP: Nine Months Ended September 30, 2019 2018 (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 Total Program Costs Agribusiness Segment $ 11 $ 3 $ 4 $ 18 $ 14 $ 16 $ 30 Edible Oils Segment 4 1 1 6 2 4 6 Milling Segment 2 — 1 3 — 2 2 Sugar and Bioenergy Segment — — 1 1 2 4 6 Fertilizer Segment — — — — 2 1 3 Total $ 17 $ 4 $ 7 $ 28 $ 20 $ 27 $ 47 |
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 condensed consolidated balance sheet. (US$ in millions) Severance and Other Employee Benefit Costs Balance at January 1, 2019 $ 3 Charges incurred 17 Cash payments (10 ) Balance at September 30, 2019 $ 10 |
Assets held for sale and Liabilities held for sale | The following table presents the major classes of assets and liabilities included in Assets held for sale and Liabilities held for sale on the Condensed Consolidated Balance Sheet at September 30, 2019: (US$ in millions) Trade accounts receivable $ 28 Inventories 306 Other current assets 139 Property, plant and equipment, net 812 Operating lease assets 271 Other non-current assets 44 Impairment provision to record at fair value, less cost to sell (1,524 ) Assets held for sale $ 76 Trade accounts payable $ 73 Current operating lease obligations 46 Other current liabilities 67 Non-current operating lease obligations 228 Other non-current liabilities 46 Liabilities held for sale $ 460 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Components of lease expense | The components of lease expense were as follows: (US$ in millions) Three Months Ended Nine Months Ended Operating lease cost $ 97 $ 257 Short-term lease cost 270 571 Variable lease cost 9 17 Sublease income (30 ) (80 ) Total lease cost $ 346 $ 765 |
Supplemental cash flow information related to leases | Supplemental cash flow information related to leases was as follows: Nine Months Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows associated with operating leases $ 252 Supplemental non-cash information: Right-of-use assets obtained in exchange for lease obligations $ 229 |
Maturities of lease liabilities | Maturities of lease liabilities for operating leases as of September 30, 2019 , are as follows: (US$ in millions) Remaining in 2019 $ 77 2020 275 2021 230 2022 186 2023 139 Thereafter 299 Total lease payments (1) 1,206 Less imputed interest 221 Total present value of lease liabilities 985 Less: Current operating lease obligations classified as held for sale (Note 3) (46 ) Non-current operating lease obligations classified as held for sale (Note 3) (228 ) Present value of lease liabilities, as separately presented on the condensed consolidated balance sheet $ 711 (1) Minimum lease payments have not been reduced by minimum sublease income receipts of $41 million due in future periods under non-cancelable subleases. Non-cancelable subleases primarily relate to agreements with third parties for the use of portions of certain facilities with remaining sublease terms of approximately 6 years , as well as an agreement with an unconsolidated joint venture in which the Company subleases rail cars with remaining sublease terms of approximately three to four years . Additionally, the Company may enter into re-let agreements to sell the right to use ocean freight vessels under time charter agreements when excess capacity is available . |
Future minimum lease payments | Future minimum lease payments by year and in the aggregate under non-cancelable operating leases with initial term of one year or more at December 31, 2018 are as follows: (US$ in millions) 2019 $ 134 2020 107 2021 84 2022 58 2023 48 Thereafter 126 Total (1) $ 557 |
Future minimum payment obligations | Future minimum payment obligations due under these agreements as of December 31, 2018 are as follows: (US$ in millions) 2019 $ 172 2020 and 2021 176 2022 and 2023 121 2024 and thereafter 37 Total $ 506 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories by segment | Inventories by segment are presented below. Readily marketable inventories (“RMI”) are agricultural commodity inventories, such as soybeans, soybean meal, soybean oil, corn, and wheat carried at fair value because of their commodity characteristics, widely available markets, and international pricing mechanisms. The Company engages in trading and distribution, or merchandising activities, and part of RMI can be attributable to such activities and is not held for processing. All other inventories are carried at lower of cost or net realizable value. (US$ in millions) September 30, December 31, Agribusiness (1) $ 4,486 $ 4,551 Edible Oil Products (2) 694 742 Milling Products 160 220 Sugar and Bioenergy (3) 11 280 Fertilizer 115 78 Total $ 5,466 $ 5,871 (1) Includes RMI of $4,327 million and $4,365 million at September 30, 2019 and December 31, 2018 , respectively. Of these amounts, $3,283 million and $3,300 million can be attributable to merchandising activities at September 30, 2019 and December 31, 2018 , respectively. (2) Includes RMI of $100 million and $88 million at September 30, 2019 and December 31, 2018 , respectively. (3) Includes RMI of $10 million and $79 million at September 30, 2019 and December 31, 2018 , respectively. Of these amounts, $4 million and $74 million can be attributable to merchandising activities at September 30, 2019 and December 31, 2018 , respectively. |
OTHER CURRENT ASSETS (Tables)
OTHER CURRENT ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of other current assets | Other current assets consist of the following: (US$ in millions) September 30, December 31, Unrealized gains on derivative contracts, at fair value $ 899 $ 1,071 Prepaid commodity purchase contracts (1) 310 253 Secured advances to suppliers, net (2) 369 257 Recoverable taxes, net 435 500 Margin deposits 202 348 Marketable securities, at fair value, and other short-term investments 459 162 Deferred purchase price receivable, at fair value (3) 95 128 Income taxes receivable 27 102 Prepaid expenses 170 165 Other 193 185 Total $ 3,159 $ 3,171 (1) Prepaid commodity purchase contracts represent advance payments against contracts for future delivery of specified quantities of agricultural commodities. (2) The Company provides cash advances to suppliers, primarily Brazilian farmers of soybeans and sugarcane, to finance a portion of the suppliers’ production costs. The Company does not bear any of the costs or operational risks associated with the related growing crops. The advances are largely collateralized by future crops and physical assets of the suppliers, carry a local market interest rate, and settle when the farmers' crops are harvested and sold. The secured advances to farmers are reported net of allowances of $1 million at September 30, 2019 and $1 million at December 31, 2018 . Interest earned on secured advances to suppliers of $6 million and $6 million for the three months ended September 30, 2019 and 2018 , respectively, and $19 million and $24 million for the nine months ended September 30, 2019 and 2018 , respectively, is included in net sales in the condensed consolidated statements of income. (3) Deferred purchase price receivable represents additional credit support for the investment conduits in the Company’s trade receivables securitization program (see Note 14). |
Summary of marketable securities and other short-term investments | The following is a summary of amounts recorded in the Company's condensed consolidated balance sheets as marketable securities and other short-term investments. (US$ in millions) September 30, December 31, Foreign government securities $ 204 $ 55 Corporate debt securities 110 91 Certificates of deposit/time deposits — 15 Equity securities 132 — Other 13 1 Total $ 459 $ 162 |
OTHER NON-CURRENT ASSETS (Table
OTHER NON-CURRENT ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Other Assets, Noncurrent [Abstract] | |
Schedule of other non-current assets | Other non-current assets consist of the following: (US$ in millions) September 30, December 31, Recoverable taxes, net (1) $ 77 $ 112 Judicial deposits (1) 105 115 Other long-term receivables 5 8 Income taxes receivable (1) 210 221 Long-term investments 77 91 Affiliate loans receivable 28 29 Long-term receivables from farmers in Brazil, net (1) 72 93 Other 138 154 Total $ 712 $ 823 (1) These non-current assets arise primarily from the Company’s Brazilian operations and their realization could take several years. |
Summary of gross investment in long-term receivables and the related allowance amounts from Brazilian farmers | The table below summarizes the Company’s recorded investment in long-term receivables from farmers in Brazil and the related allowance amounts. September 30, 2019 December 31, 2018 (US$ in millions) Recorded Investment Allowance Recorded Investment Allowance For which an allowance has been provided: Legal collection process (1) $ 98 $ 85 $ 105 $ 89 Renegotiated amounts (2) 10 10 17 17 For which no allowance has been provided: Legal collection process (1) 51 — 51 — Renegotiated amounts (2) 5 — 10 — Other long-term receivables 3 — 16 — Total $ 167 $ 95 $ 199 $ 106 (1) All amounts in legal process are considered past due upon initiation of legal action. (2) All renegotiated amounts are current on repayment terms. |
Summary of the activity in the allowance for doubtful accounts related to long-term receivables from Brazilian farmers | The table below summarizes the activity in the allowance for doubtful accounts related to long-term receivables from farmers in Brazil. Three Months Ended Nine Months Ended (US$ in millions) 2019 2018 2019 2018 Beginning balance $ 103 $ 98 $ 106 $ 113 Bad debt provisions 2 1 3 5 Recoveries (3 ) (4 ) (8 ) (7 ) Write-offs — (1 ) — (2 ) Transfers 1 — 1 — Foreign exchange translation (8 ) (4 ) (7 ) (19 ) Ending balance $ 95 $ 90 $ 95 $ 90 |
OTHER CURRENT LIABILITIES (Tabl
OTHER CURRENT LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of other current liabilities | Other current liabilities consist of the following: (US$ in millions) September 30, December 31, Unrealized losses on derivative contracts, at fair value $ 683 $ 1,192 Accrued liabilities 531 618 Advances on sales 227 405 Other 341 287 Total $ 1,782 $ 2,502 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements, nonrecurring | The fair value standard describes three levels within its hierarchy that may be used to measure fair value. Level Description Financial Instrument (Assets / Liabilities) Level 1 Quoted prices (unadjusted) in active markets for identical assets or liabilities. Exchange traded derivative contracts. Marketable securities in active markets. Level 2 Observable inputs, including adjusted Level 1 quotes, quoted prices for similar assets or liabilities, quoted prices in markets that are less active than traded exchanges and other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Exchange traded derivative contracts (less liquid market). 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. Assets and liabilities whose value is determined using proprietary pricing models, discounted cash flow methodologies or similar techniques. |
Schedule of assets and liabilities accounted for at fair value on a recurring basis | The following table sets forth, by level, the Company’s assets and liabilities that were accounted for at fair value on a recurring basis. Fair Value Measurements at Reporting Date September 30, 2019 December 31, 2018 (US$ in millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Readily marketable inventories (Note 6) $ — $ 3,854 $ 583 $ 4,437 $ — $ 4,286 $ 246 $ 4,532 Unrealized gain on derivative contracts (1) : 1 Interest rate — 71 — 71 — 6 — 6 Foreign exchange 3 364 — 367 — 473 — 473 Commodities 24 429 12 465 128 407 18 553 Freight 19 — 3 22 6 — 6 12 Energy 41 — — 41 30 — — 30 Deferred purchase price receivable (Note 14) — 95 — 95 — 128 — 128 Other (2) 144 323 — 467 67 98 — 165 Total assets $ 231 $ 5,135 $ 598 $ 5,965 $ 231 $ 5,398 $ 270 $ 5,899 Liabilities: Trade accounts payable (3) $ — $ 509 $ 190 $ 699 $ — $ 394 $ 47 $ 441 Unrealized loss on derivative contracts (4): Interest rate — 14 — 14 — 42 — 42 Foreign exchange — 328 — 328 — 499 — 499 Commodities 35 245 20 300 152 446 23 621 Freight 26 — 4 30 13 — 6 19 Energy 31 — 2 33 43 — 1 44 Equity 1 — — 1 — — — — Total liabilities $ 93 $ 1,096 $ 216 $ 1,405 $ 208 $ 1,381 $ 77 $ 1,666 (1) Unrealized gains on derivative contracts are generally included in other current assets. There were $60 million and $3 million included in other non-current assets at September 30, 2019 and December 31, 2018 , respectively. There were also $7 million included in assets held for sale (Note 3) at September 30, 2019 . (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 the Company has elected the fair value option. (4) Unrealized losses on derivative contracts are generally included in other current liabilities. There are $1 million and $33 million included in other non-current liabilities at September 30, 2019 and December 31, 2018 , respectively. There were also $22 million included in liabilities held for sale (Note 3) at September 30, 2019 . |
Reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | The tables below present reconciliations for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three and nine months ended September 30, 2019 and 2018 . These instruments were valued using pricing models that management believes reflect the assumptions that would be used by a marketplace participant. Three Months Ended September 30, 2019 (US$ in millions) Readily Derivatives, Trade Total Balance, July 1, 2019 $ 772 $ (14 ) $ (335 ) $ 423 Total gains and losses (realized/unrealized) included in cost of goods sold (1) 81 — 1 82 Purchases 329 — (14 ) 315 Sales (744 ) — — (744 ) Issuances — — — — Settlements — 2 158 160 Transfers into Level 3 213 1 (1 ) 213 Transfers out of Level 3 (68 ) — 1 (67 ) Balance, September 30, 2019 $ 583 $ (11 ) $ (190 ) $ 382 1) Readily marketable inventories, derivatives, net and trade accounts payable, include gains/(losses) of $60 million , $(1) million and $0 million , respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at September 30, 2019 . Three Months Ended September 30, 2018 (US$ in millions) Readily Derivatives, Trade Accounts Payable Total Balance, July 1, 2018 $ 1,225 $ 16 $ (265 ) $ 976 Total gains and losses (realized/unrealized) included in cost of goods sold (1) 80 (12 ) 4 72 Purchases 317 — (31 ) 286 Sales (898 ) — — (898 ) Issuances — (2 ) — (2 ) Settlements — (2 ) 231 229 Transfers into Level 3 255 (5 ) (1 ) 249 Transfers out of Level 3 (33 ) — (32 ) (65 ) Balance, September 30, 2018 $ 946 $ (5 ) $ (94 ) $ 847 1) Readily marketable inventories, derivatives, net and trade accounts payable, includes gains/(losses) of $50 million , $(19) million and $0 million , respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at September 30, 2018 . Nine Months Ended September 30, 2019 (US$ in millions) Readily Derivatives, Trade Total Balance, January 1, 2019 $ 246 $ (6 ) $ (47 ) $ 193 Total gains and losses (realized/unrealized) included in cost of goods sold (1) 263 (6 ) 14 271 Purchases 1,654 — (446 ) 1,208 Sales (2,077 ) — — (2,077 ) Issuances — (1 ) — (1 ) Settlements — 2 303 305 Transfers into Level 3 678 — (30 ) 648 Transfers out of Level 3 (181 ) — 16 (165 ) Balance, September 30, 2019 $ 583 $ (11 ) $ (190 ) $ 382 1) Readily marketable inventories, derivatives, net and trade accounts payable, include gains/(losses) of $160 million , $(10) million and $0 million , respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at September 30, 2019 . Nine Months Ended September 30, 2018 (US$ in millions) Readily Derivatives, Trade Total Balance, January 1, 2018 $ 365 $ 2 $ (116 ) $ 251 Total gains and losses (realized/unrealized) included in cost of goods sold (1) 189 (1 ) 17 205 Purchases 1,462 10 (282 ) 1,190 Sales (1,444 ) — — (1,444 ) Issuances — (11 ) — (11 ) Settlements — 5 381 386 Transfers into Level 3 530 (9 ) (80 ) 441 Transfers out of Level 3 (156 ) (1 ) (14 ) (171 ) Balance, September 30, 2018 $ 946 $ (5 ) $ (94 ) $ 847 1) Readily marketable inventories, derivatives, net and trade accounts payable, include gains/(losses) of $31 million , $(17) 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 September 30, 2018 . Certain assets and liabilities that have been classified as Assets held for sale and Liabilities held for sale are measured at fair value, less costs to sell, on a nonrecurring basis. In the third quarter of 2019 , the Company recognized impairment charges of $1,524 million |
Reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | The tables below present reconciliations for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three and nine months ended September 30, 2019 and 2018 . These instruments were valued using pricing models that management believes reflect the assumptions that would be used by a marketplace participant. Three Months Ended September 30, 2019 (US$ in millions) Readily Derivatives, Trade Total Balance, July 1, 2019 $ 772 $ (14 ) $ (335 ) $ 423 Total gains and losses (realized/unrealized) included in cost of goods sold (1) 81 — 1 82 Purchases 329 — (14 ) 315 Sales (744 ) — — (744 ) Issuances — — — — Settlements — 2 158 160 Transfers into Level 3 213 1 (1 ) 213 Transfers out of Level 3 (68 ) — 1 (67 ) Balance, September 30, 2019 $ 583 $ (11 ) $ (190 ) $ 382 1) Readily marketable inventories, derivatives, net and trade accounts payable, include gains/(losses) of $60 million , $(1) million and $0 million , respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at September 30, 2019 . Three Months Ended September 30, 2018 (US$ in millions) Readily Derivatives, Trade Accounts Payable Total Balance, July 1, 2018 $ 1,225 $ 16 $ (265 ) $ 976 Total gains and losses (realized/unrealized) included in cost of goods sold (1) 80 (12 ) 4 72 Purchases 317 — (31 ) 286 Sales (898 ) — — (898 ) Issuances — (2 ) — (2 ) Settlements — (2 ) 231 229 Transfers into Level 3 255 (5 ) (1 ) 249 Transfers out of Level 3 (33 ) — (32 ) (65 ) Balance, September 30, 2018 $ 946 $ (5 ) $ (94 ) $ 847 1) Readily marketable inventories, derivatives, net and trade accounts payable, includes gains/(losses) of $50 million , $(19) million and $0 million , respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at September 30, 2018 . Nine Months Ended September 30, 2019 (US$ in millions) Readily Derivatives, Trade Total Balance, January 1, 2019 $ 246 $ (6 ) $ (47 ) $ 193 Total gains and losses (realized/unrealized) included in cost of goods sold (1) 263 (6 ) 14 271 Purchases 1,654 — (446 ) 1,208 Sales (2,077 ) — — (2,077 ) Issuances — (1 ) — (1 ) Settlements — 2 303 305 Transfers into Level 3 678 — (30 ) 648 Transfers out of Level 3 (181 ) — 16 (165 ) Balance, September 30, 2019 $ 583 $ (11 ) $ (190 ) $ 382 1) Readily marketable inventories, derivatives, net and trade accounts payable, include gains/(losses) of $160 million , $(10) million and $0 million , respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at September 30, 2019 . Nine Months Ended September 30, 2018 (US$ in millions) Readily Derivatives, Trade Total Balance, January 1, 2018 $ 365 $ 2 $ (116 ) $ 251 Total gains and losses (realized/unrealized) included in cost of goods sold (1) 189 (1 ) 17 205 Purchases 1,462 10 (282 ) 1,190 Sales (1,444 ) — — (1,444 ) Issuances — (11 ) — (11 ) Settlements — 5 381 386 Transfers into Level 3 530 (9 ) (80 ) 441 Transfers out of Level 3 (156 ) (1 ) (14 ) (171 ) Balance, September 30, 2018 $ 946 $ (5 ) $ (94 ) $ 847 1) Readily marketable inventories, derivatives, net and trade accounts payable, include gains/(losses) of $31 million , $(17) 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 September 30, 2018 . Certain assets and liabilities that have been classified as Assets held for sale and Liabilities held for sale are measured at fair value, less costs to sell, on a nonrecurring basis. In the third quarter of 2019 , the Company recognized impairment charges of $1,524 million |
DERIVATIVE INSTRUMENTS AND HE_2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of outstanding derivative instruments | The table below summarizes the volume of economic derivatives as of September 30, 2019 and December 31, 2018 . 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. September 30, December 31, 2019 2018 Unit of Long (Short) Long (Short) Interest rate Swaps $ 6,832 $ (90 ) $ 3,349 $ (111 ) $ Notional FRAs $ 614 $ (396 ) $ 139 $ (149 ) $ Notional Currency Forwards $ 8,368 $ (10,186 ) $ 13,713 $ (13,701 ) $ Notional Swaps $ 127 $ (122 ) $ 127 $ (535 ) $ Notional Futures $ — $ (17 ) $ — $ (16 ) $ Notional Options $ 134 $ (154 ) $ 869 $ (919 ) Delta Agricultural commodities Forwards 41,559,859 (41,271,504 ) 25,523,840 (29,314,930 ) Metric Tons Swaps — (5,352,391 ) — (9,908,728 ) Metric Tons Futures — (248,058 ) 4,136,525 — Metric Tons Options — (176,980 ) 718,709 — Metric Tons Ocean freight FFA — (2,746 ) — (90 ) Hire Days FFA options — (12 ) 302 — Hire Days Natural gas Swaps 349,763 — 1,205,687 — MMBtus Futures 1,025,000 — 2,268,190 — MMBtus Energy - other Forwards 5,534,290 — 5,536,290 — Metric Tons Futures — — — (29,367 ) Metric Tons Swaps 156,993 — 188,800 — Metric Tons Other Swaps and futures $ 185 $ — $ 52 $ — $ Notional (US$ in millions) September 30, 2019 December 31, 2018 Unit of Hedging instrument type: Fair value hedges of interest rate risk Carrying value of hedged debt $ 2,272 $ 2,229 $ Notional Cumulative adjustment to long-term debt from application of hedge accounting $ 58 $ (29 ) $ Notional Interest rate swap - notional amount $ 2,221 $ 2,266 $ Notional Fair value hedges of currency risk Carrying value of hedged debt $ 340 $ 312 $ Notional Cross currency swap - notional amount $ 340 $ 313 $ Notional Cash flow hedges of currency risk Foreign currency forward - notional amount $ 173 $ 50 $ Notional Foreign currency option - notional amount $ 50 $ — $ Notional Cash flow hedges of commodity risk Commodity price risk future - notional amount 327 — Metric Tons Net investment hedges Foreign currency forward - notional amount $ 899 $ 1,888 $ Notional Carrying value of non-derivative hedging instrument $ 868 $ 912 $ Notional |
Summary of effect of derivative instruments designated as fair value hedges and undesignated derivative instruments on condensed consolidated statements of income | The tables below summarize the net effect of derivative instruments and hedge accounting on the condensed consolidated statements of income for the three and nine months ended September 30, 2019 and 2018 . Gain (Loss) Recognized in Three Months Ended September 30, (US$ in millions) 2019 2018 Income statement classification Type of derivative Net sales Hedge accounting Foreign currency $ (2 ) $ (1 ) Cost of goods sold Hedge accounting Foreign currency $ — $ — Commodities 10 Economic hedges Foreign currency (20 ) (32 ) Commodities 190 313 Other (1) (27 ) 14 Total Cost of goods sold $ 153 $ 295 Interest expense Hedge accounting Interest rate $ (3 ) $ (3 ) Economic hedges Interest rate 1 — Total Interest expense $ (2 ) $ (3 ) Foreign exchange gains (losses) Hedge accounting Foreign currency $ (1 ) $ (6 ) Economic hedges Foreign currency (17 ) 46 Total Foreign exchange gains (losses) $ (18 ) $ 40 Other comprehensive income (loss) Gains and losses on derivatives used as fair value hedges of foreign currency risk included in other comprehensive income (loss) during the period $ — $ — Gains and losses on derivatives used as cash flow hedges of foreign currency risk included in other comprehensive income (loss) during the period $ (10 ) $ 3 Gains and losses on derivatives used as cash flow hedges of commodity price risk included in other comprehensive income (loss) during the period $ 12 $ — Gains and losses on derivatives used as net investment hedges included in other comprehensive income (loss) during the period $ (10 ) $ 1 Foreign currency gains and losses on intercompany loans used as net investment hedges included in other comprehensive income (loss) during the period $ 39 $ 7 Amounts released from accumulated other comprehensive income (loss) during the period Cash flow hedge of foreign currency risk $ (2 ) $ — Cash flow hedge of commodity risk $ (9 ) $ — (1) Other includes the results from freight, energy and other derivatives. Gain (Loss) Recognized in Nine Months Ended September 30, (US$ in millions) 2019 2018 Income statement classification Type of derivative Net sales Hedge accounting Foreign currency $ — $ (2 ) Cost of goods sold Hedge accounting Foreign currency $ — $ 1 Commodities 10 — Economic hedges Foreign currency 146 (446 ) Commodities 84 485 Other (1) 1 14 Total Cost of goods sold $ 241 $ 54 Interest expense Hedge accounting Interest rate $ (11 ) $ (3 ) Economic hedges Interest rate (9 ) — Total Interest expense $ (20 ) $ (3 ) Foreign exchange gains (losses) Hedge accounting Foreign currency $ 7 $ (18 ) Economic hedges Foreign currency 14 2 Total Foreign exchange gains (losses) $ 21 $ (16 ) Other comprehensive income (loss) Gains and losses on derivatives used as fair value hedges of foreign currency risk included in other comprehensive income (loss) during the period $ (2 ) $ (1 ) Gains and losses on derivatives used as cash flow hedges of foreign currency risk included in other comprehensive income (loss) during the period $ (7 ) $ (2 ) Gains and losses on derivatives used as cash flow hedges of commodity price risk included in other comprehensive income (loss) during the period $ 20 $ — Gains and losses on derivatives used as net investment hedges included in other comprehensive income (loss) during the period $ (55 ) $ 134 Foreign currency gains and losses on intercompany loans used as net investment hedges included in other comprehensive income (loss) during the period $ 44 $ 42 Amounts released from accumulated other comprehensive income (loss) during the period Cash flow hedge of foreign currency risk $ — $ (1 ) Cash flow hedge of commodity risk $ (9 ) $ — (1) Other includes the results from freight, energy and other derivatives. |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of carrying amounts and fair values of long-term debt | The carrying amounts and fair value of long-term debt are as follows: September 30, 2019 December 31, 2018 (US$ in millions) Carrying Value Fair Value (Level 2) Carrying Fair Value Long-term debt, including current portion $ 4,646 $ 4,728 $ 4,622 $ 4,584 |
TRADE RECEIVABLES SECURITIZAT_2
TRADE RECEIVABLES SECURITIZATION PROGRAM (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Transfers and Servicing [Abstract] | |
Assets that Continue to be Recognized, Transferred Financial Assets and Other Financial Assets Managed Together | (US$ in millions) September 30, December 31, Receivables sold which were derecognized from Bunge's balance sheet $ 827 $ 826 Deferred purchase price included in other current assets $ 95 $ 128 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. Nine Months Ended (US$ in millions) 2019 2018 Gross receivables sold $ 7,287 $ 7,233 Proceeds received in cash related to transfer of receivables $ 7,069 $ 6,982 Cash collections from customers on receivables previously sold $ 5,949 $ 6,832 Discounts related to gross receivables sold included in SG&A $ 12 $ 10 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, 2019 and December 31, 2018 are the following amounts related to these matters: (US$ in millions) September 30, 2019 (1) December 31, Non-income tax claims $ 82 $ 94 Labor claims 72 78 Civil and other claims 85 95 Total $ 239 $ 267 (1) At September 30, 2019, non-income tax claims, labor claims, and civil and other claims include $4 million , $23 million , and $2 million , respectively, related to the Company's Brazilian sugar and bioenergy operations, recorded in Liabilities held for sale. |
Summary of tax examinations against Brazilian subsidiaries | As of September 30, 2019 , the Brazilian federal and state authorities have concluded examinations of the ICMS and PIS COFINS tax returns and have issued the outstanding claims (including applicable interest and penalties) as of: (US$ in millions) Years Examined September 30, 2019 December 31, 2018 ICMS 1990 to Present $ 252 $ 264 PIS/COFINS 2004 through 2015 $ 215 $ 231 |
Maximum potential future payments related to guarantees | Bunge has issued or was a party to the following guarantees at September 30, 2019 : (US$ in millions) Maximum Potential Future Payments Unconsolidated affiliates guarantee (1) (2) $ 303 Residual value guarantee (3) 260 Total $ 563 (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 September 30, 2019 , Bunge's potential liability was $161 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 September 30, 2019 , Bunge's maximum potential future payments under these guarantees was $54 million , and no obligation has been recorded related to these guarantees. (3) Bunge has issued guarantees to certain financial institutions which are party to certain operating lease arrangements for railcars and barges. These guarantees provide for a minimum residual value to be received by the lessor at the conclusion of the lease term. These leases expire at various dates from 2019 through 2024 . At September 30, 2019 , no obligation has been recorded related to these guarantees. Any obligation recorded would be recognized in Current operating lease obligations or Non-current operating lease obligations (see Note 4, Leases ). |
EQUITY (Tables)
EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of after-tax components of accumulated other comprehensive income (loss) attributable to Bunge | The following table summarizes the balances of related after-tax components of Accumulated other comprehensive income (loss) attributable to Bunge: (US$ in millions) Foreign Exchange Deferred Pension and Other Accumulated Balance, July 1, 2019 $ (6,567 ) $ (178 ) $ (174 ) $ (6,919 ) Other comprehensive income (loss) before reclassifications (341 ) 32 — (309 ) Amount reclassified from accumulated other comprehensive income (loss) — (6 ) — (6 ) Balance, September 30, 2019 $ (6,908 ) $ (152 ) $ (174 ) $ (7,234 ) (US$ in millions) Foreign Exchange Deferred Pension and Other Accumulated Balance, July 1, 2018 $ (6,576 ) $ (80 ) $ (139 ) $ (6,795 ) Other comprehensive income (loss) before reclassifications (182 ) 8 (3 ) (177 ) Amount reclassified from accumulated other comprehensive income (loss) 15 (1 ) — 14 Balance, September 30, 2018 $ (6,743 ) $ (73 ) $ (142 ) $ (6,958 ) (US$ in millions) Foreign Exchange Deferred Pension and Other Accumulated Balance, January 1, 2019 $ (6,637 ) $ (145 ) $ (153 ) $ (6,935 ) Other comprehensive income (loss) before reclassifications (271 ) 1 — (270 ) Amount reclassified from accumulated other comprehensive income (loss) — (8 ) (21 ) (29 ) Balance, September 30, 2019 $ (6,908 ) $ (152 ) $ (174 ) $ (7,234 ) (US$ in millions) Foreign Exchange Deferred Pension and Other Unrealized Accumulated Balance, January 1, 2018 $ (5,547 ) $ (244 ) $ (140 ) $ 1 $ (5,930 ) Other comprehensive income (loss) before reclassifications (1,225 ) 172 (2 ) — (1,055 ) Amount reclassified from accumulated other comprehensive income (loss) 29 (1 ) — (1 ) 27 Balance, September 30, 2018 $ (6,743 ) $ (73 ) $ (142 ) $ — $ (6,958 ) |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Computation of basic and diluted earnings per common share | The following table sets forth the computation of basic and diluted earnings per common share. Three Months Ended Nine Months Ended (US$ in millions, except for share data) 2019 2018 2019 2018 Income (loss) from continuing operations $ (1,482 ) $ 367 $ (1,220 ) $ 333 Net (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests (6 ) (9 ) (9 ) (13 ) Income (loss) from continuing operations attributable to Bunge (1,488 ) 358 (1,229 ) 320 Convertible preference share dividends (8 ) (8 ) (25 ) (25 ) Income (loss) from discontinued operations, net of tax — 7 — 12 Net income (loss) available to Bunge common shareholders - Basic (1,496 ) 357 (1,254 ) 307 Add back convertible preference share dividends — 8 — — Net income (loss) available to Bunge common shareholders - Diluted $ (1,496 ) $ 365 $ (1,254 ) $ 307 Weighted-average number of common shares outstanding: Basic 141,562,431 141,075,026 141,422,811 140,925,023 Effect of dilutive shares: —stock options and awards (1) — 653,334 — 798,388 —convertible preference shares (2) — 8,176,814 — — Diluted 141,562,431 149,905,174 141,422,811 141,723,411 Basic earnings per common share: Net income (loss) from continuing operations $ (10.57 ) $ 2.48 $ (8.87 ) $ 2.09 Net income (loss) from discontinued operations — 0.05 — 0.09 Net income (loss) attributable to Bunge common shareholders—basic $ (10.57 ) $ 2.53 $ (8.87 ) $ 2.18 Diluted earnings per common share: Net income (loss) from continuing operations $ (10.57 ) $ 2.39 $ (8.87 ) $ 2.08 Net income (loss) from discontinued operations — 0.05 — 0.08 Net income (loss) attributable to Bunge common shareholders—diluted $ (10.57 ) $ 2.44 $ (8.87 ) $ 2.16 (1) The weighted-average common shares outstanding-diluted excludes approximately 8 million and 5 million stock options and contingently issuable restricted stock units, which were not dilutive and not included in the computation of earnings per share for the three months ended September 30, 2019 and 2018 , respectively. The weighted-average common shares outstanding-diluted excludes approximately 8 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 nine months ended September 30, 2019 and 2018 , respectively. (2) Weighted-average common shares outstanding-diluted for the three months ended September 30, 2019 excludes approximately 8 million weighted-average common shares that are issuable upon conversion of the convertible preference shares that were not dilutive and not included in the weighted-average number of common shares. Weighted-average common shares outstanding-diluted for the nine months ended September 30, 2019 and 2018 excludes approximately 8 million and 8 million , respectively, weighted-average common shares that are issuable upon conversion of the convertible preference shares that were not dilutive and not included in the weighted-average number of common shares, respectively. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Operating Segment Information | The segment revenues generated from these transfers are shown in the following table as “Inter-segment revenues.” Three Months Ended September 30, 2019 (US$ in millions) Agribusiness Edible Oil Products Milling Products Sugar and Bioenergy Fertilizer Other (1) Total Net sales to external customers $ 7,008 $ 2,319 $ 437 $ 381 $ 178 $ — $ 10,323 Inter–segment revenues 1,225 37 1 — 8 (1,271 ) — Foreign exchange gains (losses) (56 ) 5 — (78 ) — — (129 ) Noncontrolling interests (1) 2 (7 ) — (1 ) (2 ) 2 (6 ) Other income (expense) – net 17 — (1 ) (1 ) — (11 ) 4 Segment EBIT (2) 44 52 7 (1,554 ) 21 (10 ) (1,440 ) Depreciation, depletion and amortization (64 ) (39 ) (13 ) (16 ) (2 ) — (134 ) Total assets 12,331 3,868 1,441 266 394 334 18,634 Three Months Ended September 30, 2018 (US$ in millions) Agribusiness Edible Milling Sugar and Fertilizer Other (1) Total Net sales to external customers $ 7,905 $ 2,298 $ 427 $ 629 $ 153 $ — $ 11,412 Inter–segment revenues 1,162 38 — — 1 (1,201 ) — Foreign exchange gains (losses) (23 ) (2 ) 4 3 (2 ) — (20 ) Noncontrolling interests (1) (10 ) (1 ) — 1 (1 ) 2 (9 ) Other income (expense) – net (4 ) (1 ) (1 ) (1 ) — (12 ) (19 ) Segment EBIT (2) 464 30 30 — 23 (12 ) 535 Discontinued operations (3) — — — — — 7 7 Depreciation, depletion and amortization (61 ) (40 ) (15 ) (41 ) (2 ) — (159 ) Total assets 13,767 3,926 1,498 1,763 345 147 21,446 Nine Months Ended September 30, 2019 (US$ in millions) Agribusiness Edible Oil Products Milling Products Sugar and Bioenergy Fertilizer Other (1) Total Net sales to external customers $ 20,995 $ 6,764 $ 1,293 $ 950 $ 355 $ — $ 30,357 Inter–segment revenues 3,471 110 1 1 28 (3,611 ) — Foreign exchange gains (losses) (74 ) 4 3 (80 ) — — (147 ) Noncontrolling interests (1) 4 (13 ) — (1 ) (2 ) 3 (9 ) Other income (expense) – net 84 — 7 (3 ) (2 ) 136 222 Segment EBIT (2) 335 125 41 (1,589 ) 28 125 (935 ) Depreciation, depletion and amortization (192 ) (119 ) (40 ) (72 ) (5 ) — (428 ) Total assets 12,331 3,868 1,441 266 394 334 18,634 Nine Months Ended September 30, 2018 (US$ in millions) Agribusiness Edible Milling Sugar and Fertilizer Other (1) Total Net sales to external customers $ 24,092 $ 6,772 $ 1,262 $ 1,774 $ 300 $ — $ 34,200 Inter–segment revenues 3,457 128 — 18 1 (3,604 ) — Foreign exchange gains (losses) (116 ) 2 4 — (6 ) — (116 ) Noncontrolling interests (1) (9 ) (6 ) — 1 (2 ) 3 (13 ) Other income (expense) – net 42 (5 ) (3 ) (14 ) 1 (12 ) 9 Segment EBIT (2) 612 69 73 (87 ) 12 (12 ) 667 Discontinued operations (3) — — — — — 12 12 Depreciation, depletion and amortization (192 ) (113 ) (44 ) (108 ) (6 ) — (463 ) Total assets 13,767 3,926 1,498 1,763 345 147 21,446 (1) Includes noncontrolling interests share of interest and tax to reconcile to consolidated Noncontrolling interests. (2) Total segment earnings before interest and taxes (“EBIT”) is an operating performance measure used by Bunge’s management to evaluate segment operating activities. Bunge’s management believes total Segment EBIT is a useful measure of operating profitability, since the measure allows for an evaluation of the performance of its segments without regard to its financing methods or capital structure. In addition, total Segment EBIT is a financial measure that is widely used by analysts and investors in Bunge’s industry. However, total Segment EBIT is a non-GAAP financial measure and is not intended to replace Net income (loss) attributable to Bunge, the most directly comparable U.S. GAAP financial measure. Further, total Segment EBIT is not a measure of consolidated operating results under U.S. GAAP and should not be considered as an alternative to Net income (loss) or any other measure of consolidated operating results under U.S. GAAP. See the reconciliation of total Segment EBIT to Net income (loss) in the table below. (3) Represents Net income (loss) from discontinued operations. |
Reconciliation of Total Segment EBIT to net income attributable to Bunge | A reconciliation of total Segment EBIT to Net income (loss) attributable to Bunge follows: Three Months Ended Nine Months Ended (US$ in millions) 2019 2018 2019 2018 Total Segment EBIT from continuing operations $ (1,440 ) $ 535 $ (935 ) $ 667 Interest income 8 7 22 21 Interest expense (86 ) (101 ) (249 ) (265 ) Income tax (expense) benefit 28 (85 ) (70 ) (106 ) Income (loss) from discontinued operations, net of tax — 7 — 12 Noncontrolling interests' share of interest and tax 2 2 3 3 Net income (loss) attributable to Bunge $ (1,488 ) $ 365 $ (1,229 ) $ 332 |
Net sales by product group 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: Three Months Ended September 30, 2019 (US$ in millions) Agribusiness Edible Oil Products Milling Products Sugar and Bioenergy Fertilizer Total Sales from other arrangements $ 6,776 $ 526 $ 15 $ 200 $ — $ 7,517 Sales from contracts with customers 232 1,793 422 181 178 2,806 Net sales to external customers $ 7,008 $ 2,319 $ 437 $ 381 $ 178 $ 10,323 Three Months Ended September 30, 2018 (US$ in millions) Agribusiness Edible Milling Sugar and Fertilizer Total Sales from other arrangements $ 7,641 $ 492 $ 22 $ 431 $ — $ 8,586 Sales from contracts with customers 264 1,806 405 198 153 2,826 Net sales to external customers $ 7,905 $ 2,298 $ 427 $ 629 $ 153 $ 11,412 Nine Months Ended September 30, 2019 (US$ in millions) Agribusiness Edible Oil Products Milling Products Sugar and Bioenergy Fertilizer Total Sales from other arrangements $ 20,335 $ 1,438 $ 50 $ 556 $ — $ 22,379 Sales from contracts with customers 660 5,326 1,243 394 355 7,978 Net sales to external customers $ 20,995 $ 6,764 $ 1,293 $ 950 $ 355 $ 30,357 Nine Months Ended September 30, 2018 (US$ in millions) Agribusiness Edible Oil Products Milling Products Sugar and Bioenergy Fertilizer Total Sales from other arrangements $ 23,209 $ 1,334 $ 48 $ 1,317 $ — $ 25,908 Sales from contracts with customers 883 5,438 1,214 457 300 8,292 Net sales to external customers $ 24,092 $ 6,772 $ 1,262 $ 1,774 $ 300 $ 34,200 |
BASIS OF PRESENTATION, PRINCI_4
BASIS OF PRESENTATION, PRINCIPLES OF CONSOLIDATION, AND SIGNIFICANT ACCOUNTING POLICIES - RECONCILIATION OF CASH, CASH EQUIVALENTS, AND RESTRICTED CASH (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ||||
Cash and cash equivalents | $ 291 | $ 389 | $ 267 | |
Restricted cash included in other current assets | 2 | 4 | ||
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows | $ 293 | $ 393 | $ 271 | $ 605 |
ACCOUNTING PRONOUNCEMENTS - NAR
ACCOUNTING PRONOUNCEMENTS - NARRATIVE (Details) - USD ($) $ in Millions | Jan. 01, 2019 | Sep. 30, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Right-of-use assets | $ 746 | |
Lease liability | $ 985 | |
ASU 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Right-of-use assets | $ 1,006 | |
Lease liability | 962 | |
Prepaid rent balances | 44 | |
ASU 2018-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Tax effects reclassified from AOCI to retained earnings | $ 21 |
GLOBAL COMPETITIVENESS PROGRA_3
GLOBAL COMPETITIVENESS PROGRAM AND PORTFOLIO RATIONALIZATION INITIATIVES - RESTRUCTURING COSTS (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Global Competitiveness Program | ||
Restructuring Cost and Reserve [Line Items] | ||
Impact on future earnings | $ 250 | |
Severance and Other Employee Benefit Costs | 17 | $ 20 |
Consulting and Professional Services | 4 | 27 |
Other Program Costs | 7 | |
Total Program Costs | 28 | 47 |
Global Competitiveness Program | Cost of goods sold | ||
Restructuring Cost and Reserve [Line Items] | ||
Total Program Costs | 2 | 9 |
Global Competitiveness Program | Selling, general & administrative expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Total Program Costs | 26 | 39 |
Global Competitiveness Program | Agribusiness Segment | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance and Other Employee Benefit Costs | 11 | 14 |
Consulting and Professional Services | 3 | 16 |
Other Program Costs | 4 | |
Total Program Costs | 18 | 30 |
Global Competitiveness Program | Edible Oil Products | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance and Other Employee Benefit Costs | 4 | 2 |
Consulting and Professional Services | 1 | 4 |
Other Program Costs | 1 | |
Total Program Costs | 6 | 6 |
Global Competitiveness Program | Milling Products | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance and Other Employee Benefit Costs | 2 | 0 |
Consulting and Professional Services | 0 | 2 |
Other Program Costs | 1 | |
Total Program Costs | 3 | 2 |
Global Competitiveness Program | Sugar and Bioenergy Segment | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance and Other Employee Benefit Costs | 0 | 2 |
Consulting and Professional Services | 0 | 4 |
Other Program Costs | 1 | |
Total Program Costs | 1 | 6 |
Global Competitiveness Program | Fertilizer | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance and Other Employee Benefit Costs | 0 | 2 |
Consulting and Professional Services | 0 | 1 |
Other Program Costs | 0 | |
Total Program Costs | 0 | 3 |
Other Industrial Initiatives | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance and Other Employee Benefit Costs | $ 0 | $ 1 |
GLOBAL COMPETITIVENESS PROGRA_4
GLOBAL COMPETITIVENESS PROGRAM AND PORTFOLIO RATIONALIZATION INITIATIVES - RESTRUCTURING RESERVE (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2019 | Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Jul. 22, 2019 | |
Restructuring Reserve [Roll Forward] | |||||
Charges recognized on sale or disposal of long-lived assets | $ 1,659 | $ 29 | |||
Impairment charges | 1,664 | $ 5 | |||
Foreign currency translation losses | $ 1,491 | ||||
Sugar and Bioenergy | |||||
Restructuring Reserve [Roll Forward] | |||||
Impairment charges | 1,524 | 1,526 | |||
Agribusiness | |||||
Restructuring Reserve [Roll Forward] | |||||
Impairment charges | 98 | ||||
Edible Oil Products | |||||
Restructuring Reserve [Roll Forward] | |||||
Impairment charges | 17 | ||||
Milling Products | |||||
Restructuring Reserve [Roll Forward] | |||||
Impairment charges | 17 | ||||
Fertilizer | |||||
Restructuring Reserve [Roll Forward] | |||||
Impairment charges | 1 | ||||
Cost of goods sold | |||||
Restructuring Reserve [Roll Forward] | |||||
Impairment charges | 1,524 | 1,524 | |||
Impairment charges | 113 | ||||
Selling, general & administrative expenses | |||||
Restructuring Reserve [Roll Forward] | |||||
Impairment charges | 22 | ||||
Global Competitiveness Program | Severance and Other Employee Benefit Costs | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning balance | $ 10 | 3 | |||
Charges incurred | 17 | ||||
Cash payments | (10) | ||||
Ending balance | $ 10 | $ 10 | |||
Brazilian Sugar And Bioenergy Joint Venture | |||||
Restructuring Reserve [Roll Forward] | |||||
Equity method investment, ownership percentage | 50.00% | ||||
Brazilian Sugar And Bioenergy Joint Venture | BP p.l.c. | |||||
Restructuring Reserve [Roll Forward] | |||||
Equity method investment, ownership percentage | 50.00% | ||||
Forecast | Brazilian Sugar And Bioenergy Joint Venture | |||||
Restructuring Reserve [Roll Forward] | |||||
Proceeds from contributions of interest in joint venture | $ 775 | ||||
Private sale rights term | 18 months | ||||
Initial public offering rights term | 2 years | ||||
Forecast | Brazilian Sugar And Bioenergy Joint Venture | Unsecured Debt | |||||
Restructuring Reserve [Roll Forward] | |||||
Proceeds from contributions of interest in joint venture | $ 700 | ||||
Forecast | Brazilian Sugar And Bioenergy Joint Venture | BP p.l.c. | |||||
Restructuring Reserve [Roll Forward] | |||||
Proceeds from contributions of interest in joint venture | $ 75 |
GLOBAL COMPETITIVENESS PROGRA_5
GLOBAL COMPETITIVENESS PROGRAM AND PORTFOLIO RATIONALIZATION INITIATIVES - ASSETS AND LIABILITIES HELD FOR SALE (Details) - Disposal Group, Held-for-sale $ in Millions | Sep. 30, 2019USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Trade accounts receivable | $ 28 |
Inventories | 306 |
Other current assets | 139 |
Property, plant and equipment, net | 812 |
Operating lease assets | 271 |
Other non-current assets | 44 |
Impairment provision to record at fair value, less cost to sell | (1,524) |
Assets held for sale | 76 |
Trade accounts payable | 73 |
Current operating lease obligations | 46 |
Other current liabilities | 67 |
Non-current operating lease obligations | 228 |
Other non-current liabilities | 46 |
Liabilities held for sale | $ 460 |
LEASES - NARRATIVE (Details)
LEASES - NARRATIVE (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Lessee, Lease, Description [Line Items] | ||
Average remaining lease term | 6 years 4 months 24 days | |
Lease renewal term | 5 years | |
Weighted average discount rate | 6.50% | |
Sublease income receipts due in future periods | $ 41 | |
Operating leases that have not yet commenced | $ 356 | |
Minimum sublease income receipts | $ 43 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 1 year | |
Sublease term | 3 years | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Sublease term | 4 years | |
Land | Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 93 years | |
Certain Facilities | ||
Lessee, Lease, Description [Line Items] | ||
Sublease term | 6 years | |
Ocean Freight Vessels Agreement | Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 2 months | |
Ocean Freight Vessels Agreement | Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 8 years | 7 years |
LEASES - COMPONENTS OF LEASE EX
LEASES - COMPONENTS OF LEASE EXPENSE (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 97 | $ 257 |
Short-term lease cost | 270 | 571 |
Variable lease cost | 9 | 17 |
Sublease income | (30) | (80) |
Total lease cost | $ 346 | $ 765 |
LEASES - SUPPLEMENTAL CASH FLOW
LEASES - SUPPLEMENTAL CASH FLOW INFORMATION (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows associated with operating leases | $ 252 |
Supplemental non-cash information: | |
Right-of-use assets obtained in exchange for lease obligations | $ 229 |
LEASES - MATURITIES OF LEASE LI
LEASES - MATURITIES OF LEASE LIABILITIES (Details) $ in Millions | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
Remaining in 2019 | $ 77 |
2020 | 275 |
2021 | 230 |
2022 | 186 |
2023 | 139 |
Thereafter | 299 |
Total lease payments | 1,206 |
Less imputed interest | 221 |
Total present value of lease liabilities | 985 |
Less: Current operating lease obligations classified as held for sale (Note 3) | (46) |
Non-current operating lease obligations classified as held for sale (Note 3) | (228) |
Present value of lease liabilities, as separately presented on the condensed consolidated balance sheet | $ 711 |
LEASES - PREVIOUS YEAR LEASE DI
LEASES - PREVIOUS YEAR LEASE DISCLOSURES (Details) $ in Millions | Dec. 31, 2018USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2019 | $ 134 |
2020 | 107 |
2021 | 84 |
2022 | 58 |
2023 | 48 |
Thereafter | 126 |
Total | 557 |
Future Minimum Payments for Charter Agreements Due [Abstract] | |
2019 | 172 |
2020 and 2021 | 176 |
2022 and 2023 | 121 |
2024 and thereafter | 37 |
Total | $ 506 |
TRADE STRUCTURED FINANCE PROG_2
TRADE STRUCTURED FINANCE PROGRAM (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Trade structured finance program | |||
Net return from activities including fair value changes | $ 18 | $ 23 | |
Weighted-average interest rate of time deposits (as a percent) | 3.49% | 3.76% | |
Total net proceeds from issuances of LCs | $ 2,281 | $ 4,409 | |
Time deposits and LC's presented net in the balance sheet | |||
Trade structured finance program | |||
Face value of time deposits and LCs | $ 3,087 | $ 4,729 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
INVENTORIES | ||
Inventories | $ 5,466 | $ 5,871 |
Agribusiness | ||
INVENTORIES | ||
Inventories | 4,486 | 4,551 |
Readily marketable inventories at fair value | 4,327 | 4,365 |
Agribusiness | Merchandising Activities | ||
INVENTORIES | ||
Readily marketable inventories at fair value | 3,283 | 3,300 |
Edible Oil Products | ||
INVENTORIES | ||
Inventories | 694 | 742 |
Readily marketable inventories at fair value | 100 | 88 |
Milling Products | ||
INVENTORIES | ||
Inventories | 160 | 220 |
Sugar and Bioenergy | ||
INVENTORIES | ||
Inventories | 11 | 280 |
Readily marketable inventories at fair value | 10 | 79 |
Sugar and Bioenergy | Merchandising Activities | ||
INVENTORIES | ||
Readily marketable inventories at fair value | 4 | 74 |
Fertilizer | ||
INVENTORIES | ||
Inventories | $ 115 | $ 78 |
OTHER CURRENT ASSETS - SUMMARY
OTHER CURRENT ASSETS - SUMMARY OF OTHER CURRENT ASSETS (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Other Current Assets: | |||||
Unrealized gains on derivative contracts, at fair value | $ 899,000,000 | $ 899,000,000 | $ 1,071,000,000 | ||
Prepaid commodity purchase contracts | 310,000,000 | 310,000,000 | 253,000,000 | ||
Secured advances to suppliers, net | 369,000,000 | 369,000,000 | 257,000,000 | ||
Recoverable taxes, net | 435,000,000 | 435,000,000 | 500,000,000 | ||
Margin deposits | 202,000,000 | 202,000,000 | 348,000,000 | ||
Marketable securities, at fair value, and other short-term investments | 459,000,000 | 459,000,000 | 162,000,000 | ||
Deferred purchase price receivable, at fair value | 95,000,000 | 95,000,000 | 128,000,000 | ||
Income taxes receivable | 27,000,000 | 27,000,000 | 102,000,000 | ||
Prepaid expenses | 170,000,000 | 170,000,000 | 165,000,000 | ||
Other | 193,000,000 | 193,000,000 | 185,000,000 | ||
Total | 3,159,000,000 | 3,159,000,000 | 3,171,000,000 | ||
Allowance on secured advance to farmers | 1,000,000 | 1,000,000 | $ 1,000,000 | ||
Interest earned on secured advances to suppliers | $ 6,000,000 | $ 6,000,000 | $ 19,000,000 | $ 24,000,000 |
OTHER CURRENT ASSETS - MARKETAB
OTHER CURRENT ASSETS - MARKETABLE SECURITIES AND OTHER SHORT-TERM INVESTMENTS (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Net Investment Income [Line Items] | ||
Marketable securities and other short-term investments | $ 459 | $ 162 |
Marketable securities at fair value | 449 | 144 |
Unrealized gains | 140 | |
Foreign government securities | ||
Net Investment Income [Line Items] | ||
Marketable securities and other short-term investments | 204 | 55 |
Corporate debt securities | ||
Net Investment Income [Line Items] | ||
Marketable securities and other short-term investments | 110 | 91 |
Certificates of deposit/time deposits | ||
Net Investment Income [Line Items] | ||
Marketable securities and other short-term investments | 0 | 15 |
Equity securities | ||
Net Investment Income [Line Items] | ||
Marketable securities and other short-term investments | 132 | 0 |
Other | ||
Net Investment Income [Line Items] | ||
Marketable securities and other short-term investments | $ 13 | $ 1 |
OTHER NON-CURRENT ASSETS - COMP
OTHER NON-CURRENT ASSETS - COMPOSITION (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Other Assets, Noncurrent [Abstract] | ||
Recoverable taxes, net | $ 77 | $ 112 |
Judicial deposits | 105 | 115 |
Other long-term receivables | 5 | 8 |
Income taxes receivable | 210 | 221 |
Long-term investments | 77 | 91 |
Affiliate loans receivable | 28 | 29 |
Long-term receivables from farmers in Brazil, net | 72 | 93 |
Other | 138 | 154 |
Total | 712 | 823 |
Allowance for recoverable taxes | $ 27 | $ 27 |
Minimum initial maturity of affiliate loans receivable | 1 year |
OTHER NON-CURRENT ASSETS - RECE
OTHER NON-CURRENT ASSETS - RECEIVABLES FROM FARMERS IN BRAZIL AND ALLOWANCE AMOUNTS (Details) - Long-term receivables - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Recorded Investment | ||||||
Average recorded investment in long-term receivables | $ 192 | $ 215 | ||||
Total | 167 | 199 | ||||
Allowance | 95 | 106 | $ 103 | $ 90 | $ 98 | $ 113 |
Legal collection process | ||||||
Recorded Investment | ||||||
Recorded investment for which an allowance has been provided | 98 | 105 | ||||
Recorded investment for which no allowance has been provided | 51 | 51 | ||||
Allowance | 85 | 89 | ||||
Renegotiated amounts | ||||||
Recorded Investment | ||||||
Recorded investment for which an allowance has been provided | 10 | 17 | ||||
Recorded investment for which no allowance has been provided | 5 | 10 | ||||
Allowance | 10 | 17 | ||||
Other long-term receivables | ||||||
Recorded Investment | ||||||
Other long-term receivables | $ 3 | $ 16 |
OTHER NON-CURRENT ASSETS - ALLO
OTHER NON-CURRENT ASSETS - ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) - Long-term receivables - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Allowance for Doubtful Accounts Related to Long Term Receivables | ||||
Beginning balance | $ 103 | $ 98 | $ 106 | $ 113 |
Bad debt provisions | 2 | 1 | 3 | 5 |
Recoveries | (3) | (4) | (8) | (7) |
Write-offs | 0 | (1) | 0 | (2) |
Transfers | 1 | 0 | 1 | 0 |
Foreign exchange translation | (8) | (4) | (7) | (19) |
Ending balance | $ 95 | $ 90 | $ 95 | $ 90 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ (28) | $ 85 | $ 70 | $ 106 |
OTHER CURRENT LIABILITIES (Deta
OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Other Liabilities Disclosure [Abstract] | ||
Unrealized losses on derivative contracts, at fair value | $ 683 | $ 1,192 |
Accrued liabilities | 531 | 618 |
Advances on sales | 227 | 405 |
Other | 341 | 287 |
Total | $ 1,782 | $ 2,502 |
FAIR VALUE MEASUREMENTS - ASSET
FAIR VALUE MEASUREMENTS - ASSETS AND LIABILITIES AT FAIR VALUE (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Assets: | ||
Unrealized gain | $ 899 | $ 1,071 |
Deferred purchase price receivable | 95 | 128 |
Liabilities: | ||
Trade accounts payable | 699 | 441 |
Unrealized loss | 683 | 1,192 |
Other Noncurrent Assets | ||
Liabilities: | ||
Unrealized gains (losses) on derivative contracts | 60 | 3 |
Assets Held for Sale | ||
Liabilities: | ||
Unrealized gains (losses) on derivative contracts | 7 | |
Other Noncurrent Liabilities | ||
Liabilities: | ||
Unrealized gains (losses) on derivative contracts | (1) | (33) |
Liabilities Held for Sale | ||
Liabilities: | ||
Unrealized gains (losses) on derivative contracts | (22) | |
Assets and liabilities measured at fair value on a recurring basis | ||
Assets: | ||
Readily marketable inventories | 4,437 | 4,532 |
Total assets | 5,965 | 5,899 |
Liabilities: | ||
Trade accounts payable | 699 | 441 |
Total liabilities | 1,405 | 1,666 |
Assets and liabilities measured at fair value on a recurring basis | Hedge accounting | Interest rate | ||
Assets: | ||
Unrealized gain | 71 | 6 |
Liabilities: | ||
Unrealized loss | 14 | 42 |
Assets and liabilities measured at fair value on a recurring basis | Hedge accounting | Foreign exchange | ||
Assets: | ||
Unrealized gain | 367 | 473 |
Liabilities: | ||
Unrealized loss | 328 | 499 |
Assets and liabilities measured at fair value on a recurring basis | Economic hedges | ||
Assets: | ||
Deferred purchase price receivable | 95 | 128 |
Other | 467 | 165 |
Assets and liabilities measured at fair value on a recurring basis | Economic hedges | Commodities | ||
Assets: | ||
Unrealized gain | 465 | 553 |
Liabilities: | ||
Unrealized loss | 300 | 621 |
Assets and liabilities measured at fair value on a recurring basis | Economic hedges | Freight | ||
Assets: | ||
Unrealized gain | 22 | 12 |
Liabilities: | ||
Unrealized loss | 30 | 19 |
Assets and liabilities measured at fair value on a recurring basis | Economic hedges | Energy | ||
Assets: | ||
Unrealized gain | 41 | 30 |
Liabilities: | ||
Unrealized loss | 33 | 44 |
Assets and liabilities measured at fair value on a recurring basis | Economic hedges | Equity | ||
Liabilities: | ||
Unrealized loss | 1 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | ||
Assets: | ||
Readily marketable inventories | 0 | 0 |
Total assets | 231 | 231 |
Liabilities: | ||
Trade accounts payable | 0 | 0 |
Total liabilities | 93 | 208 |
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 | 3 | 0 |
Liabilities: | ||
Unrealized loss | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Economic hedges | ||
Assets: | ||
Deferred purchase price receivable | 0 | 0 |
Other | 144 | 67 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Economic hedges | Commodities | ||
Assets: | ||
Unrealized gain | 24 | 128 |
Liabilities: | ||
Unrealized loss | 35 | 152 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Economic hedges | Freight | ||
Assets: | ||
Unrealized gain | 19 | 6 |
Liabilities: | ||
Unrealized loss | 26 | 13 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Economic hedges | Energy | ||
Assets: | ||
Unrealized gain | 41 | 30 |
Liabilities: | ||
Unrealized loss | 31 | 43 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Economic hedges | Equity | ||
Liabilities: | ||
Unrealized loss | 1 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | ||
Assets: | ||
Readily marketable inventories | 3,854 | 4,286 |
Total assets | 5,135 | 5,398 |
Liabilities: | ||
Trade accounts payable | 509 | 394 |
Total liabilities | 1,096 | 1,381 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Hedge accounting | Interest rate | ||
Assets: | ||
Unrealized gain | 71 | 6 |
Liabilities: | ||
Unrealized loss | 14 | 42 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Hedge accounting | Foreign exchange | ||
Assets: | ||
Unrealized gain | 364 | 473 |
Liabilities: | ||
Unrealized loss | 328 | 499 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Economic hedges | ||
Assets: | ||
Deferred purchase price receivable | 95 | 128 |
Other | 323 | 98 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Economic hedges | Commodities | ||
Assets: | ||
Unrealized gain | 429 | 407 |
Liabilities: | ||
Unrealized loss | 245 | 446 |
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 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Economic hedges | Equity | ||
Liabilities: | ||
Unrealized loss | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | ||
Assets: | ||
Readily marketable inventories | 583 | 246 |
Total assets | 598 | 270 |
Liabilities: | ||
Trade accounts payable | 190 | 47 |
Total liabilities | 216 | 77 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Hedge accounting | Interest rate | ||
Assets: | ||
Unrealized gain | 0 | 0 |
Liabilities: | ||
Unrealized loss | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Hedge accounting | Foreign exchange | ||
Assets: | ||
Unrealized gain | 0 | 0 |
Liabilities: | ||
Unrealized loss | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Economic hedges | ||
Assets: | ||
Deferred purchase price receivable | 0 | 0 |
Other | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Economic hedges | Commodities | ||
Assets: | ||
Unrealized gain | 12 | 18 |
Liabilities: | ||
Unrealized loss | 20 | 23 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Economic hedges | Freight | ||
Assets: | ||
Unrealized gain | 3 | 6 |
Liabilities: | ||
Unrealized loss | 4 | 6 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Economic hedges | Energy | ||
Assets: | ||
Unrealized gain | 0 | 0 |
Liabilities: | ||
Unrealized loss | 2 | 1 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Economic hedges | Equity | ||
Liabilities: | ||
Unrealized loss | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - RECON
FAIR VALUE MEASUREMENTS - RECONCILIATION FOR ASSETS AND LIABILITIES MEASURE AT FAIR VALUE USING LEVEL 3 (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Total | ||||
Balance at beginning of period | $ 423 | $ 976 | $ 193 | $ 251 |
Purchases | 315 | 286 | 1,208 | 1,190 |
Sales | (744) | (898) | (2,077) | (1,444) |
Issuances | 0 | (2) | (1) | (11) |
Settlements | 160 | 229 | 305 | 386 |
Transfers into Level 3 | 213 | 249 | 648 | 441 |
Transfers out of Level 3 | (67) | (65) | (165) | (171) |
Balance at end of period | 382 | 847 | 382 | 847 |
Impairment charges | 1,664 | 5 | ||
Cost of goods sold | ||||
Total | ||||
Total gains and losses (realized/unrealized) included in cost of goods sold (1) | 82 | 72 | 271 | 205 |
Impairment charges | 1,524 | 1,524 | ||
Readily Marketable Inventories | ||||
Readily Marketable Inventories | ||||
Balance at beginning of period | 772 | 1,225 | 246 | 365 |
Purchases | 329 | 317 | 1,654 | 1,462 |
Sales | (744) | (898) | (2,077) | (1,444) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 213 | 255 | 678 | 530 |
Transfers out of Level 3 | (68) | (33) | (181) | (156) |
Balance at end of period | 583 | 946 | 583 | 946 |
Total | ||||
Changes in unrealized gains (losses) relating to Level 3 assets and liabilities | (1) | (19) | (10) | (17) |
Readily Marketable Inventories | Cost of goods sold | ||||
Readily Marketable Inventories | ||||
Total gains and losses (realized/unrealized) included in cost of goods sold | 81 | 80 | 263 | 189 |
Derivatives, Net | ||||
Derivatives, Net | ||||
Balance at beginning of period | (14) | 16 | (6) | 2 |
Purchases | 0 | 0 | 0 | 10 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | (2) | (1) | (11) |
Settlements | 2 | (2) | 2 | 5 |
Transfers into Level 3 | 1 | (5) | 0 | (9) |
Transfers out of Level 3 | 0 | 0 | 0 | (1) |
Balance at end of period | (11) | (5) | (11) | (5) |
Total | ||||
Changes in unrealized gains (losses) relating to Level 3 assets and liabilities | 60 | 50 | 160 | 31 |
Derivatives, Net | Cost of goods sold | ||||
Derivatives, Net | ||||
Total gains and losses (realized/unrealized) included in cost of goods sold | 0 | (12) | (6) | (1) |
Trade Accounts Receivable/ Payable, Net | ||||
Trade Accounts Receivable/ Payable, Net | ||||
Balance at beginning of period | (335) | (265) | (47) | (116) |
Purchases | (14) | (31) | (446) | (282) |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 158 | 231 | 303 | 381 |
Transfers into Level 3 | (1) | (1) | (30) | (80) |
Transfers out of Level 3 | 1 | (32) | 16 | (14) |
Balance at end of period | (190) | (94) | (190) | (94) |
Total | ||||
Changes in unrealized gains (losses) relating to Level 3 assets and liabilities | 0 | 0 | 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 | 1 | $ 4 | 14 | $ 17 |
Sugar and Bioenergy | ||||
Total | ||||
Impairment charges | $ 1,524 | $ 1,526 |
DERIVATIVE INSTRUMENTS AND HE_3
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - DERIVATIVE POSITIONS (Details) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019USD ($)MMBTUdayt | Dec. 31, 2018USD ($)MMBTUdayt | |
Interest rate | Long | Swaps | ||
Derivative | ||
Notional amount of derivative | $ 6,832 | $ 3,349 |
Interest rate | Long | Forward Rate Agreements | ||
Derivative | ||
Notional amount of derivative | 614 | 139 |
Interest rate | Short | Swaps | ||
Derivative | ||
Notional amount of derivative | 90 | 111 |
Interest rate | Short | Forward Rate Agreements | ||
Derivative | ||
Notional amount of derivative | 396 | 149 |
Foreign exchange | Long | Swaps | ||
Derivative | ||
Notional amount of derivative | 127 | 127 |
Foreign exchange | Long | Futures | ||
Derivative | ||
Notional amount of derivative | 0 | 0 |
Foreign exchange | Long | Forwards | ||
Derivative | ||
Notional amount of derivative | 8,368 | 13,713 |
Foreign exchange | Long | Options | ||
Derivative | ||
Delta | 134 | 869 |
Foreign exchange | Short | Swaps | ||
Derivative | ||
Notional amount of derivative | 122 | 535 |
Foreign exchange | Short | Futures | ||
Derivative | ||
Notional amount of derivative | 17 | 16 |
Foreign exchange | Short | Forwards | ||
Derivative | ||
Notional amount of derivative | 10,186 | 13,701 |
Foreign exchange | Short | Options | ||
Derivative | ||
Delta | $ 154 | $ 919 |
Commodities | Long | Swaps | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 0 | 0 |
Commodities | Long | Futures | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 0 | 4,136,525 |
Commodities | Long | Forwards | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 41,559,859 | 25,523,840 |
Commodities | Long | Options | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 0 | 718,709 |
Commodities | Short | Swaps | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 5,352,391 | 9,908,728 |
Commodities | Short | Futures | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 248,058 | 0 |
Commodities | Short | Forwards | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 41,271,504 | 29,314,930 |
Commodities | Short | Options | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 176,980 | 0 |
Ocean freight | Long | Forwards | ||
Derivative | ||
Nonmonetary notional amount of derivatives | day | 0 | 0 |
Ocean freight | Long | Options | ||
Derivative | ||
Nonmonetary notional amount of derivatives | day | 0 | 302 |
Ocean freight | Short | Forwards | ||
Derivative | ||
Nonmonetary notional amount of derivatives | day | 2,746 | 90 |
Ocean freight | Short | Options | ||
Derivative | ||
Nonmonetary notional amount of derivatives | day | 12 | 0 |
Natural gas | Long | Swaps | ||
Derivative | ||
Nonmonetary notional amount of derivatives | MMBTU | 349,763 | 1,205,687 |
Natural gas | Long | Futures | ||
Derivative | ||
Nonmonetary notional amount of derivatives | MMBTU | 1,025,000 | 2,268,190 |
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 | 156,993 | 188,800 |
Energy - other | Long | Futures | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 0 | 0 |
Energy - other | Long | Forwards | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 5,534,290 | 5,536,290 |
Energy - other | Short | Swaps | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 0 | 0 |
Energy - other | Short | Futures | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 0 | 29,367 |
Energy - other | Short | Forwards | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 0 | 0 |
Other | Long | Swaps and futures | ||
Derivative | ||
Notional amount of derivative | $ 185 | $ 52 |
Other | Short | Swaps and futures | ||
Derivative | ||
Notional amount of derivative | 0 | 0 |
Fair Value Hedging | Interest rate | ||
Derivative | ||
Carrying value of hedged debt | 2,272 | 2,229 |
Cumulative adjustment to long-term debt from application of hedge accounting | 58 | (29) |
Notional amount of derivative | 2,221 | 2,266 |
Fair Value Hedging | Foreign exchange | ||
Derivative | ||
Carrying value of hedged debt | 340 | 312 |
Notional amount of derivative | 313 | |
Fair Value Hedging | Foreign exchange | Short | ||
Derivative | ||
Notional amount of derivative | 340 | |
Cash Flow Hedges | Foreign exchange | ||
Derivative | ||
Amounts expected to be reclassified from AOCI to earnings in the next twelve months | (4) | |
Cash Flow Hedges | Foreign exchange | Forwards | ||
Derivative | ||
Notional amount of derivative | 173 | 50 |
Cash Flow Hedges | Foreign exchange | Options | ||
Derivative | ||
Notional amount of derivative | 50 | $ 0 |
Cash Flow Hedges | Commodities | ||
Derivative | ||
Amounts expected to be reclassified from AOCI to earnings in the next twelve months | $ 9 | |
Nonmonetary notional amount of derivatives | t | 327,000,000 | 0 |
Net Investment Hedges | ||
Derivative | ||
Carrying value of non-derivative hedging instrument | $ 868 | $ 912 |
Net Investment Hedges | Foreign exchange | ||
Derivative | ||
Notional amount of derivative | $ 899 | $ 1,888 |
DERIVATIVE INSTRUMENTS AND HE_4
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - EFFECT OF DERIVATIVE INSTRUMENTS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Cost of goods sold | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (loss) recognized in income on derivative instruments | $ 153 | $ 295 | $ 241 | $ 54 |
Interest expense | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (loss) recognized in income on derivative instruments | (2) | (3) | (20) | (3) |
Foreign exchange gains (losses) | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (loss) recognized in income on derivative instruments | (18) | 40 | 21 | (16) |
Foreign currency | ||||
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 | (10) | 3 | (7) | (2) |
Foreign currency | Net Investment Hedges | ||||
Derivative Instruments, Gain (Loss) | ||||
Gains and losses on derivatives used as net investment hedges and foreign currency risk included in other comprehensive income (loss) during the period | (10) | 1 | (55) | 134 |
Foreign currency | Cash Flow Hedges | ||||
Derivative Instruments, Gain (Loss) | ||||
Cash flow hedge of foreign currency risk | (2) | 0 | 0 | (1) |
Foreign currency | Fair Value Hedging | ||||
Derivative Instruments, Gain (Loss) | ||||
Gains and losses on derivatives used as net investment hedges and foreign currency risk included in other comprehensive income (loss) during the period | 0 | 0 | (2) | (1) |
Commodities | ||||
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 | 12 | 0 | 20 | 0 |
Commodities | Cash Flow Hedges | ||||
Derivative Instruments, Gain (Loss) | ||||
Cash flow hedge of foreign currency risk | (9) | 0 | (9) | 0 |
Foreign currency | 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 | 39 | 7 | 44 | 42 |
Hedge accounting | Foreign currency | Net sales | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (loss) on hedge accounting | (2) | (1) | 0 | (2) |
Hedge accounting | Foreign currency | Cost of goods sold | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (loss) on hedge accounting | 0 | 0 | 0 | 1 |
Hedge accounting | Foreign currency | Foreign exchange gains (losses) | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (loss) on hedge accounting | (1) | (6) | 7 | (18) |
Hedge accounting | Commodities | Cost of goods sold | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (loss) on hedge accounting | 10 | 10 | 0 | |
Hedge accounting | Interest rate | Interest expense | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (loss) on hedge accounting | (3) | (3) | (11) | (3) |
Economic hedges | Foreign currency | Cost of goods sold | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (loss) on economic hedges | (20) | (32) | 146 | (446) |
Economic hedges | Foreign currency | Foreign exchange gains (losses) | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (loss) on economic hedges | (17) | 46 | 14 | 2 |
Economic hedges | Commodities | Cost of goods sold | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (loss) on economic hedges | 190 | 313 | 84 | 485 |
Economic hedges | Interest rate | Interest expense | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (loss) on economic hedges | 1 | 0 | (9) | 0 |
Economic hedges | Other | Cost of goods sold | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (loss) on economic hedges | $ (27) | $ 14 | $ 1 | $ 14 |
DEBT (Details)
DEBT (Details) | Jul. 01, 2019USD ($) | Sep. 30, 2019USD ($) | Jul. 01, 2019JPY (¥) | Dec. 31, 2018USD ($) |
Debt | ||||
Short-term debt | $ 1,825,000,000 | $ 750,000,000 | ||
Debt instrument unused and available borrowing capacity amount | 4,088,000,000 | |||
Maximum borrowing capacity | 5,015,000,000 | |||
Medium-term Notes | Term Loan | ||||
Debt | ||||
Debt term | 5 years | |||
Medium-term Notes | Term Loan, Tranche A | ||||
Debt | ||||
Face amount of debt | $ 285,000,000 | ¥ 30,700,000,000 | ||
Medium-term Notes | Term Loan, Tranche A | three-month Yen LIBOR | ||||
Debt | ||||
Basis spread on variable rate | 0.75% | |||
Medium-term Notes | Term Loan, Tranche B | ||||
Debt | ||||
Face amount of debt | $ 90,000,000 | |||
Medium-term Notes | Term Loan, Tranche B | three-month Yen LIBOR | ||||
Debt | ||||
Basis spread on variable rate | 1.30% | |||
Carrying Value | ||||
Debt | ||||
Long-term debt, including current portion | 4,646,000,000 | 4,622,000,000 | ||
Fair Value | Level 2 | ||||
Debt | ||||
Long-term debt, including current portion | 4,728,000,000 | $ 4,584,000,000 | ||
Commercial paper program | ||||
Debt | ||||
Commercial paper, outstanding issuances | 550,000,000 | |||
Liquidity facility | ||||
Debt | ||||
Credit facility, borrowings outstanding | 0 | |||
Bilateral credit lines | ||||
Debt | ||||
Short-term debt | 400,000,000 | |||
Local bank line of credit | ||||
Debt | ||||
Short-term debt | $ 875,000,000 |
TRADE RECEIVABLES SECURITIZAT_3
TRADE RECEIVABLES SECURITIZATION PROGRAM (Details) - Bunge Securitization B.V. - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Feb. 19, 2019 | Dec. 31, 2018 | |
Accounts Receivable Securitization Facilities Disclosures | ||||
Accordion feature amount | $ 300 | |||
Accordion feature exercised amount | 100 | |||
Maximum funding under trade receivables securitization program | $ 800 | $ 700 | ||
Receivables sold which were derecognized from Bunge's balance sheet | $ 827 | 826 | ||
Deferred purchase price included in other current assets | 95 | $ 128 | ||
Gross receivables sold | 7,287 | $ 7,233 | ||
Proceeds received in cash related to transfer of receivables | 7,069 | 6,982 | ||
Cash collections from customers on receivables previously sold | 5,949 | 6,832 | ||
Discounts related to gross receivables sold included in SG&A | $ 12 | $ 10 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Unconsolidated joint ventures | |||||
Related Party Transactions | |||||
Receivables from related parties | $ 26 | $ 26 | $ 28 | ||
Payables to related parties | $ 54 | $ 54 | $ 26 | ||
Unconsolidated joint ventures | Navegacoes Unidas Tapajos S.A. | |||||
Related Party Transactions | |||||
Ownership interest | 50.00% | 50.00% | |||
Notes receivable | $ 19 | $ 19 | |||
Unconsolidated joint ventures | Bunge SCF Grain LLC | |||||
Related Party Transactions | |||||
Ownership interest | 50.00% | 50.00% | |||
Notes receivable | $ 7 | $ 7 | |||
Notes payable | $ 26 | $ 26 | |||
Interest rate | 2.09% | 2.09% | |||
Other related party | |||||
Related Party Transactions | |||||
Notes receivable | $ 6 | $ 6 | |||
Soybeans and other agricultural commodity products | Unconsolidated joint ventures | |||||
Related Party Transactions | |||||
Purchases of soybeans, other commodity products and received port services from certain unconsolidated ventures | 330 | $ 389 | 1,091 | $ 1,183 | |
Sale of soybeans, other commodity products and provided port services to certain unconsolidated ventures | 147 | 155 | 478 | 676 | |
Soybeans and other agricultural commodity products | Unconsolidated joint ventures | Previously Reported | |||||
Related Party Transactions | |||||
Purchases of soybeans, other commodity products and received port services from certain unconsolidated ventures | 352 | 1,016 | |||
Sale of soybeans, other commodity products and provided port services to certain unconsolidated ventures | 75 | 294 | |||
Tolling, port services, administrative support, and other services | Unconsolidated joint ventures | |||||
Related Party Transactions | |||||
Purchases of soybeans, other commodity products and received port services from certain unconsolidated ventures | 23 | 39 | 73 | 95 | |
Sale of soybeans, other commodity products and provided port services to certain unconsolidated ventures | $ 7 | $ 6 | $ 17 | $ 17 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) R$ in Millions, $ in Millions | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2019USD ($)subsidiary | Dec. 31, 2018USD ($) | Dec. 31, 2011USD ($) | Sep. 30, 2019BRL (R$) | Dec. 31, 2017USD ($) | Mar. 31, 2016employee | |
Loss Contingencies and Guarantees | ||||||
Non-income tax claims | $ 239 | $ 267 | ||||
Maximum Potential Future Payments | 563 | |||||
Brazil | ||||||
Loss Contingencies and Guarantees | ||||||
Number of employees under administrative proceedings | employee | 2 | |||||
Argentina | ||||||
Loss Contingencies and Guarantees | ||||||
Payment of accrued export tax obligations | $ 112 | |||||
Interest assessed on paid export tax obligations | 321 | |||||
Non-income tax claims | ||||||
Loss Contingencies and Guarantees | ||||||
Non-income tax claims | 82 | 94 | ||||
Non-income tax claims | Brazil | ||||||
Loss Contingencies and Guarantees | ||||||
Non-income tax claims | 4 | |||||
Labor claims | ||||||
Loss Contingencies and Guarantees | ||||||
Non-income tax claims | 72 | 78 | ||||
Labor claims | Brazil | ||||||
Loss Contingencies and Guarantees | ||||||
Non-income tax claims | 23 | |||||
Civil and other claims | ||||||
Loss Contingencies and Guarantees | ||||||
Non-income tax claims | 85 | 95 | ||||
Civil and other claims | Brazil | ||||||
Loss Contingencies and Guarantees | ||||||
Non-income tax claims | 2 | |||||
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 | 57 | R$ 239 | ||||
ICMS tax liability | Brazil | Tax return examination 1990 - Present | ||||||
Loss Contingencies and Guarantees | ||||||
Total assessment | 252 | 264 | ||||
PIS COFINS liability | Brazil | Tax return examination 2004 - 2012 | ||||||
Loss Contingencies and Guarantees | ||||||
Total assessment | 215 | $ 231 | ||||
Unconsolidated affiliates financing | ||||||
Loss Contingencies and Guarantees | ||||||
Maximum Potential Future Payments | 303 | |||||
Potential liability | 161 | |||||
Obligation related to outstanding guarantees | 17 | |||||
Residual value guarantee | ||||||
Loss Contingencies and Guarantees | ||||||
Maximum Potential Future Payments | 260 | |||||
Obligation related to outstanding guarantees | 0 | |||||
Unconsolidated affiliates performance | ||||||
Loss Contingencies and Guarantees | ||||||
Potential liability | 54 | |||||
Obligation related to outstanding guarantees | 0 | |||||
Guarantee of indebtedness of subsidiaries | ||||||
Loss Contingencies and Guarantees | ||||||
Long-term debt including current portion, carrying value | $ 6,176 | |||||
Guarantee of indebtedness of subsidiaries | 100% owned subsidiaries | Bunge Limited Finance Corp, Bunge Finance Europe, B.V and Bunge N.A. Finance L.P | ||||||
Loss Contingencies and Guarantees | ||||||
Number of finance subsidiaries issuing senior notes | subsidiary | 2 | |||||
Percentage of ownership interest | 100.00% | 100.00% |
REDEEMABLE NONCONTROLLING INT_2
REDEEMABLE NONCONTROLLING INTEREST (Details) - Loders | Mar. 01, 2018 |
Redeemable Noncontrolling Interest [Line Items] | |
Interest acquired (as a percent) | 70.00% |
Loders | |
Redeemable Noncontrolling Interest [Line Items] | |
Ownership interest by minority shareholder | 30.00% |
EQUITY - AOCI (Details)
EQUITY - AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | $ 6,173 | |||
Other comprehensive income (loss) before reclassifications | $ (309) | $ (177) | (270) | $ (1,055) |
Amount reclassified from accumulated other comprehensive income (loss) | (6) | 14 | (29) | 27 |
Ending Balance | 4,460 | 4,460 | ||
Accumulated Other Comprehensive Income (Loss) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (6,919) | (6,795) | (6,935) | (5,930) |
Ending Balance | (7,234) | (6,958) | (7,234) | (6,958) |
Foreign Exchange Translation Adjustment | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (6,567) | (6,576) | (6,637) | (5,547) |
Other comprehensive income (loss) before reclassifications | (341) | (182) | (271) | (1,225) |
Amount reclassified from accumulated other comprehensive income (loss) | 0 | 15 | 0 | 29 |
Ending Balance | (6,908) | (6,743) | (6,908) | (6,743) |
Deferred Gains (Losses) on Hedging Activities | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (178) | (80) | (145) | (244) |
Other comprehensive income (loss) before reclassifications | 32 | 8 | 1 | 172 |
Amount reclassified from accumulated other comprehensive income (loss) | (6) | (1) | (8) | (1) |
Ending Balance | (152) | (73) | (152) | (73) |
Pension and Other Postretirement Liability Adjustments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (174) | (139) | (153) | (140) |
Other comprehensive income (loss) before reclassifications | 0 | (3) | 0 | (2) |
Amount reclassified from accumulated other comprehensive income (loss) | 0 | 0 | (21) | 0 |
Ending Balance | $ (174) | (142) | $ (174) | (142) |
Unrealized Gains (Losses) on Investments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | 1 | |||
Other comprehensive income (loss) before reclassifications | 0 | |||
Amount reclassified from accumulated other comprehensive income (loss) | (1) | |||
Ending Balance | $ 0 | $ 0 |
EARNINGS PER COMMON SHARE (Deta
EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Computation of basic and diluted earnings per common share | ||||
Income (loss) from continuing operations | $ (1,482) | $ 367 | $ (1,220) | $ 333 |
Net (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests | (6) | (9) | (9) | (13) |
Income (loss) from continuing operations attributable to Bunge | (1,488) | 358 | (1,229) | 320 |
Convertible preference share dividends | (8) | (8) | (25) | (25) |
Income (loss) from discontinued operations, net of tax | 0 | 7 | 0 | 12 |
Net income (loss) available to Bunge common shareholders | (1,496) | 357 | (1,254) | 307 |
Add back convertible preference share dividends | 0 | 8 | 0 | 0 |
Net income (loss) available to Bunge common shareholders - Diluted | $ (1,496) | $ 365 | $ (1,254) | $ 307 |
Weighted-average number of common shares outstanding: | ||||
Basic (in shares) | 141,562,431 | 141,075,026 | 141,422,811 | 140,925,023 |
Effect of dilutive shares: | ||||
—stock options and awards (in shares) | 0 | 653,334 | 0 | 798,388 |
—convertible preference shares (in shares) | 0 | 8,176,814 | 0 | 0 |
Diluted (in shares) | 141,562,431 | 149,905,174 | 141,422,811 | 141,723,411 |
Basic earnings per common share: | ||||
Net income (loss) from continuing operations (in dollars per share) | $ (10.57) | $ 2.48 | $ (8.87) | $ 2.09 |
Net income (loss) from discontinued operations (in dollars per share) | 0 | 0.05 | 0 | 0.09 |
Net income (loss) attributable to Bunge common shareholders—basic (in dollars per share) | (10.57) | 2.53 | (8.87) | 2.18 |
Diluted earnings per common share: | ||||
Net income (loss) from continuing operations (in dollars per share) | (10.57) | 2.39 | (8.87) | 2.08 |
Net income (loss) from discontinued operations (in dollars per share) | 0 | 0.05 | 0 | 0.08 |
Net income (loss) attributable to Bunge common shareholders—diluted (in dollars per share) | $ (10.57) | $ 2.44 | $ (8.87) | $ 2.16 |
Convertible Preference Shares | ||||
Diluted earnings per common share: | ||||
Antidilutive shares excluded from computation of EPS (in shares) | 8,000,000 | 8,000,000 | ||
Stock options and contingently issuable restricted stock units | ||||
Diluted earnings per common share: | ||||
Antidilutive shares excluded from computation of EPS (in shares) | 8,000,000 | 5,000,000 | 8,000,000 | 4,000,000 |
SEGMENT INFORMATION - FINANCIAL
SEGMENT INFORMATION - FINANCIAL INFORMATION BY SEGMENT (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)segment | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Segment Reporting Information | |||||
Number of reportable segments | segment | 5 | ||||
Operating Segment Information | |||||
Net sales | $ 10,323 | $ 11,412 | $ 30,357 | $ 34,200 | |
Foreign exchange gains (losses) | (129) | (20) | (147) | (116) | |
Noncontrolling interests | (6) | (9) | (9) | (13) | |
Other income (expense) – net | 4 | (19) | 222 | 9 | |
Total Segment EBIT from continuing operations | (1,440) | 535 | (935) | 667 | |
Discontinued operations | 0 | 7 | 0 | 12 | |
Depreciation, depletion and amortization | (134) | (159) | (428) | (463) | |
Total assets | 18,634 | 21,446 | 18,634 | 21,446 | $ 19,425 |
Agribusiness | |||||
Operating Segment Information | |||||
Net sales | 7,008 | 7,905 | 20,995 | 24,092 | |
Foreign exchange gains (losses) | (56) | (23) | (74) | (116) | |
Other income (expense) – net | 17 | (4) | 84 | 42 | |
Total Segment EBIT from continuing operations | 44 | 464 | 335 | 612 | |
Discontinued operations | 0 | 0 | |||
Depreciation, depletion and amortization | (64) | (61) | (192) | (192) | |
Edible Oil Products | |||||
Operating Segment Information | |||||
Net sales | 2,319 | 2,298 | 6,764 | 6,772 | |
Foreign exchange gains (losses) | 5 | (2) | 4 | 2 | |
Other income (expense) – net | 0 | (1) | 0 | (5) | |
Total Segment EBIT from continuing operations | 52 | 30 | 125 | 69 | |
Discontinued operations | 0 | 0 | |||
Depreciation, depletion and amortization | (39) | (40) | (119) | (113) | |
Milling Products | |||||
Operating Segment Information | |||||
Net sales | 437 | 427 | 1,293 | 1,262 | |
Foreign exchange gains (losses) | 0 | 4 | 3 | 4 | |
Other income (expense) – net | (1) | (1) | 7 | (3) | |
Total Segment EBIT from continuing operations | 7 | 30 | 41 | 73 | |
Discontinued operations | 0 | 0 | |||
Depreciation, depletion and amortization | (13) | (15) | (40) | (44) | |
Sugar and Bioenergy | |||||
Operating Segment Information | |||||
Net sales | 381 | 629 | 950 | 1,774 | |
Foreign exchange gains (losses) | (78) | 3 | (80) | 0 | |
Other income (expense) – net | (1) | (1) | (3) | (14) | |
Total Segment EBIT from continuing operations | (1,554) | 0 | (1,589) | (87) | |
Discontinued operations | 0 | 0 | |||
Depreciation, depletion and amortization | (16) | (41) | (72) | (108) | |
Fertilizer | |||||
Operating Segment Information | |||||
Net sales | 178 | 153 | 355 | 300 | |
Foreign exchange gains (losses) | 0 | (2) | 0 | (6) | |
Other income (expense) – net | 0 | 0 | (2) | 1 | |
Total Segment EBIT from continuing operations | 21 | 23 | 28 | 12 | |
Discontinued operations | 0 | 0 | |||
Depreciation, depletion and amortization | (2) | (2) | (5) | (6) | |
Inter—segment revenues | |||||
Operating Segment Information | |||||
Net sales | (1,271) | (1,201) | (3,611) | (3,604) | |
Inter—segment revenues | Agribusiness | |||||
Operating Segment Information | |||||
Net sales | (1,225) | (1,162) | (3,471) | (3,457) | |
Inter—segment revenues | Edible Oil Products | |||||
Operating Segment Information | |||||
Net sales | (37) | (38) | (110) | (128) | |
Inter—segment revenues | Milling Products | |||||
Operating Segment Information | |||||
Net sales | (1) | 0 | (1) | 0 | |
Inter—segment revenues | Sugar and Bioenergy | |||||
Operating Segment Information | |||||
Net sales | 0 | 0 | (1) | (18) | |
Inter—segment revenues | Fertilizer | |||||
Operating Segment Information | |||||
Net sales | (8) | (1) | (28) | (1) | |
Operating | Agribusiness | |||||
Operating Segment Information | |||||
Noncontrolling interests | 2 | (10) | 4 | (9) | |
Total assets | 12,331 | 13,767 | 12,331 | 13,767 | |
Operating | Edible Oil Products | |||||
Operating Segment Information | |||||
Noncontrolling interests | (7) | (1) | (13) | (6) | |
Total assets | 3,868 | 3,926 | 3,868 | 3,926 | |
Operating | Milling Products | |||||
Operating Segment Information | |||||
Noncontrolling interests | 0 | 0 | 0 | 0 | |
Total assets | 1,441 | 1,498 | 1,441 | 1,498 | |
Operating | Sugar and Bioenergy | |||||
Operating Segment Information | |||||
Noncontrolling interests | (1) | 1 | (1) | 1 | |
Total assets | 266 | 1,763 | 266 | 1,763 | |
Operating | Fertilizer | |||||
Operating Segment Information | |||||
Noncontrolling interests | (2) | (1) | (2) | (2) | |
Total assets | 394 | 345 | 394 | 345 | |
Discontinued Operations and Unallocated | |||||
Operating Segment Information | |||||
Foreign exchange gains (losses) | 0 | 0 | 0 | 0 | |
Noncontrolling interests | 2 | 2 | 3 | 3 | |
Other income (expense) – net | (11) | (12) | 136 | (12) | |
Total Segment EBIT from continuing operations | (10) | (12) | 125 | (12) | |
Discontinued operations | 7 | 12 | |||
Depreciation, depletion and amortization | 0 | 0 | 0 | 0 | |
Total assets | $ 334 | $ 147 | $ 334 | $ 147 |
SEGMENT INFORMATION - NET INCOM
SEGMENT INFORMATION - NET INCOME TO SEGMENT EBIT (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Reconciliation of total segment EBIT: | ||||
Total Segment EBIT from continuing operations | $ (1,440) | $ 535 | $ (935) | $ 667 |
Interest income | 8 | 7 | 22 | 21 |
Interest expense | (86) | (101) | (249) | (265) |
Income tax (expense) benefit | 28 | (85) | (70) | (106) |
Income (loss) from discontinued operations, net of tax | 0 | 7 | 0 | 12 |
Noncontrolling interests' share of interest and tax | 2 | 2 | 3 | 3 |
Net income (loss) attributable to Bunge | $ (1,488) | $ 365 | $ (1,229) | $ 332 |
SEGMENT INFORMATION - NET SALES
SEGMENT INFORMATION - NET SALES TO EXTERNAL CUSTOMERS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue from External Customer [Line Items] | ||||
Sales from other arrangements | $ 7,517 | $ 8,586 | $ 22,379 | $ 25,908 |
Sales from contracts with customers | 2,806 | 2,826 | 7,978 | 8,292 |
Net sales to external customers | 10,323 | 11,412 | 30,357 | 34,200 |
Agribusiness | ||||
Revenue from External Customer [Line Items] | ||||
Sales from other arrangements | 6,776 | 7,641 | 20,335 | 23,209 |
Sales from contracts with customers | 232 | 264 | 660 | 883 |
Net sales to external customers | 7,008 | 7,905 | 20,995 | 24,092 |
Edible Oil Products | ||||
Revenue from External Customer [Line Items] | ||||
Sales from other arrangements | 526 | 492 | 1,438 | 1,334 |
Sales from contracts with customers | 1,793 | 1,806 | 5,326 | 5,438 |
Net sales to external customers | 2,319 | 2,298 | 6,764 | 6,772 |
Milling Products | ||||
Revenue from External Customer [Line Items] | ||||
Sales from other arrangements | 15 | 22 | 50 | 48 |
Sales from contracts with customers | 422 | 405 | 1,243 | 1,214 |
Net sales to external customers | 437 | 427 | 1,293 | 1,262 |
Sugar and Bioenergy | ||||
Revenue from External Customer [Line Items] | ||||
Sales from other arrangements | 200 | 431 | 556 | 1,317 |
Sales from contracts with customers | 181 | 198 | 394 | 457 |
Net sales to external customers | 381 | 629 | 950 | 1,774 |
Fertilizer | ||||
Revenue from External Customer [Line Items] | ||||
Sales from other arrangements | 0 | 0 | 0 | 0 |
Sales from contracts with customers | 178 | 153 | 355 | 300 |
Net sales to external customers | $ 178 | $ 153 | $ 355 | $ 300 |