COVER PAGE
COVER PAGE - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 14, 2020 | Jun. 28, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-16625 | ||
Entity Registrant Name | BUNGE LIMITED | ||
Entity Central Index Key | 0001144519 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Incorporation, State or Country Code | D0 | ||
Entity Tax Identification Number | 98-0231912 | ||
Entity Address, Address Line One | 1391 Timberlake Manor Parkway | ||
Entity Address, City or Town | St. Louis | ||
Entity Address, State or Province | MO | ||
Entity Address, Postal Zip Code | 63017 | ||
City Area Code | 314 | ||
Local Phone Number | 292-2000 | ||
Title of 12(b) Security | Common Shares, $0.01 par value per share | ||
Trading Symbol | BG | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
Entity Public Float | $ 7,651 | ||
Entity Common Stock, Shares Outstanding | 141,854,379 | ||
Documents Incorporated by Reference | Portions of the proxy statement for the 2020 Annual General Meeting of Shareholders to be held on May 21, 2020 are incorporated by reference into Part III. |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Net sales | $ 41,140 | $ 45,743 | $ 45,794 |
Cost of goods sold | (40,598) | (43,477) | (44,029) |
Gross profit | 542 | 2,266 | 1,765 |
Selling, general and administrative expenses | (1,351) | (1,423) | (1,437) |
Interest income | 31 | 31 | 38 |
Interest expense | (339) | (339) | (263) |
Foreign exchange gains (losses) | (117) | (101) | 95 |
Other income (expense)—net | 173 | 48 | 40 |
Gain (loss), net on disposal of affiliate investments, subsidiaries and assets | (36) | (26) | 9 |
Investment in affiliate impairments | 0 | 0 | (17) |
Goodwill impairment | (108) | 0 | 0 |
Income (loss) from continuing operations before income tax | (1,205) | 456 | 230 |
Income tax (expense) benefit | (86) | (179) | (56) |
Income (loss) from continuing operations | (1,291) | 277 | 174 |
Income (loss) from discontinued operations, net of tax | 0 | 10 | 0 |
Net income (loss) | (1,291) | 287 | 174 |
Net (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests | 11 | (20) | (14) |
Net income (loss) attributable to Bunge | (1,280) | 267 | 160 |
Convertible preference share dividends and other obligations | (34) | (34) | (34) |
Adjustment of redeemable noncontrolling interest | (8) | 0 | 0 |
Net income (loss) available to Bunge common shareholders | $ (1,322) | $ 233 | $ 126 |
Earnings (loss) per common share-basic | |||
Net income (loss) from continuing operations (in dollars per share) | $ (9.34) | $ 1.58 | $ 0.90 |
Net income (loss) from discontinued operations (in dollars per share) | 0 | 0.07 | 0 |
Net income (loss) to Bunge common shareholders (in dollars per share) | (9.34) | 1.65 | 0.90 |
Earnings (loss) per common share-diluted | |||
Net income (loss) from continuing operations (in dollars per share) | (9.34) | 1.57 | 0.89 |
Net income (loss) from discontinued operations (in dollars per share) | 0 | 0.07 | 0 |
Net income (loss) to Bunge common shareholders (in dollars per share) | $ (9.34) | $ 1.64 | $ 0.89 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (1,291) | $ 287 | $ 174 | |
Other comprehensive income (loss): | ||||
Foreign exchange translation adjustment | [1] | 1,359 | (1,125) | 203 |
Unrealized gains (losses) on designated hedges, net of tax (expense) benefit of $(2), $1, and $(1) | 1 | 99 | (105) | |
Unrealized gains (losses) on investments, net of tax (expense) benefit of nil, nil, and $(1) | 0 | 0 | 2 | |
Reclassification of realized net losses (gains) to net income, net of tax expense (benefit) of $(2), $2, and $2 | (19) | 2 | (41) | |
Pension adjustment, net of tax (expense) benefit of $2, $4, and $(4) | (24) | (16) | 5 | |
Total other comprehensive income (loss) | 1,317 | (1,040) | 64 | |
Total comprehensive income (loss) | 26 | (753) | 238 | |
Less: comprehensive (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests | 25 | 14 | (30) | |
Total comprehensive income (loss) attributable to Bunge | $ 51 | $ (739) | $ 208 | |
[1] | 2019 and 2018 includes the release of cumulative translation adjustments upon the disposition of certain of the Company's foreign subsidiaries and equity-method investments of $1,493 million and $29 million , respectively, which is recorded in Cost of goods sold and Other income (expense) - net, respectively, in the consolidated statements of income. |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (PARENTHETICAL) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Unrealized gains (losses) on designated cash flow and net investment hedges, tax (expense) benefit | $ (2) | $ 1 | $ (1) |
Unrealized gains (losses) on investments, tax (expense) benefit | 0 | 0 | (1) |
Reclassification of realized net losses (gains) to net income, tax expense (benefit) | (2) | 2 | 2 |
Pension adjustment, tax (expense) benefit | 2 | 4 | (4) |
Foreign Currency Translation Adjustment | |||
Amount reclassified from accumulated other comprehensive income | $ 1,493 | $ 29 | $ 0 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 320 | $ 389 |
Trade accounts receivable (less allowances of $108 and $113) | 1,705 | 1,637 |
Inventories | 5,038 | 5,871 |
Assets held for sale | 72 | 0 |
Other current assets | 3,113 | 3,171 |
Total current assets | 10,248 | 11,068 |
Property, plant and equipment, net | 4,132 | 5,201 |
Operating lease assets | 796 | |
Goodwill | 611 | 727 |
Other intangible assets, net | 583 | 697 |
Investments in affiliates | 827 | 451 |
Deferred income taxes | 442 | 458 |
Other non-current assets | 678 | 823 |
Total assets | 18,317 | 19,425 |
Current liabilities: | ||
Short-term debt | 771 | 750 |
Current portion of long-term debt | 507 | 419 |
Trade accounts payable (includes $378 and $441 carried at fair value) | 2,842 | 3,501 |
Current operating lease obligations | 216 | |
Liabilities held for sale | 4 | 0 |
Other current liabilities | 2,255 | 2,502 |
Total current liabilities | 6,595 | 7,172 |
Long-term debt | 3,716 | 4,203 |
Deferred income taxes | 329 | 356 |
Non-current operating lease obligations | 539 | |
Other non-current liabilities | 711 | 892 |
Commitments and contingencies | ||
Redeemable noncontrolling interests | 397 | 424 |
Equity (Note 24): | ||
Convertible perpetual preference shares, par value $.01; authorized, 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—141,813,142 shares, 2018—141,111,081 shares | 1 | 1 |
Additional paid-in capital | 5,329 | 5,278 |
Retained earnings | 6,437 | 8,059 |
Accumulated other comprehensive income (loss) | (5,624) | (6,935) |
Treasury shares, at cost; 2019 and 2018—12,882,313 shares | (920) | (920) |
Total Bunge shareholders' equity | 5,913 | 6,173 |
Noncontrolling interests | 117 | 205 |
Total equity | 6,030 | 6,378 |
Total liabilities and equity | $ 18,317 | $ 19,425 |
CONSOLIDATED BALANCE SHEETS (PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Trade accounts receivable, allowances | $ 108 | $ 113 |
Trade accounts payable, at fair value | $ 378 | $ 441 |
Convertible perpetual preference shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Convertible perpetual preference shares, authorized (in shares) | 6,899,683 | 6,899,683 |
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, liquidation preference (in dollars per share) | $ 100 | $ 100 |
Common shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common shares, authorized (in shares) | 400,000,000 | 400,000,000 |
Common shares, issued (in shares) | 141,813,142 | 141,111,081 |
Common shares, outstanding (in shares) | 141,813,142 | 141,111,081 |
Treasury shares, at cost (in shares) | 12,882,313 | 12,882,313 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
OPERATING ACTIVITIES | |||
Net income | $ (1,291) | $ 287 | $ 174 |
Adjustments to reconcile net income to cash provided by (used for) operating activities: | |||
Impairment charges | 1,825 | 18 | 52 |
Foreign exchange (gain) loss on net debt | 139 | 139 | 21 |
(Gain) loss, net on disposal of affiliate investments and subsidiaries | 55 | 26 | (9) |
Bad debt expense | 9 | 64 | 28 |
Depreciation, depletion and amortization | 548 | 622 | 609 |
Share-based compensation expense | 39 | 46 | 29 |
Deferred income tax expense (benefit) | (24) | 6 | (23) |
(Gain) loss on sale of investments and property, plant, and equipment | (93) | (1) | (12) |
Other, net | (12) | 21 | 36 |
Changes in operating assets and liabilities, excluding the effects of acquisitions: | |||
Trade accounts receivable | (257) | (110) | 95 |
Inventories | 504 | (1,107) | (130) |
Secured advances to suppliers | (100) | 41 | 172 |
Trade accounts payable | (498) | 335 | 25 |
Advances on sales | 15 | 22 | 11 |
Net unrealized (gain) loss on derivative contracts | (258) | 145 | 105 |
Margin deposits | 63 | (106) | (5) |
Recoverable and income taxes, net | 109 | 84 | (78) |
Accrued liabilities | 43 | 1 | 25 |
Marketable Securities | (226) | 52 | (128) |
Beneficial interest in securitized trade receivables | (1,289) | (1,909) | (3,001) |
Other, net | (109) | 60 | 29 |
Cash provided by (used for) operating activities | (808) | (1,264) | (1,975) |
INVESTING ACTIVITIES | |||
Payments made for capital expenditures | (524) | (493) | (662) |
Acquisitions of businesses (net of cash acquired) | 0 | (981) | (369) |
Proceeds from Sale and Maturity of Marketable Securities | 449 | 1,098 | 961 |
Payments for investments | (393) | (1,184) | (944) |
Settlement of net investment hedges | (56) | 66 | (20) |
Proceeds from interest in securitized trade receivables | 1,312 | 1,888 | 2,981 |
Proceeds from divestiture of businesses and disposal of property, plant and equipment | 729 | 1 | 16 |
Payments for investments in affiliates | (39) | (4) | (126) |
Proceeds from sale of investments in affiliates | 19 | 0 | 0 |
Other, net | 6 | 19 | (18) |
Cash provided by (used for) investing activities | 1,503 | 410 | 1,819 |
FINANCING ACTIVITIES | |||
Net change in short-term debt with maturities of 90 days or less | 182 | 286 | 18 |
Proceeds from short-term debt with maturities greater than 90 days | 144 | 453 | 248 |
Repayments of short-term debt with maturities greater than 90 days | (310) | (253) | (224) |
Proceeds from long-term debt | 5,244 | 10,732 | 9,054 |
Repayments of long-term debt | (5,698) | (10,262) | (9,010) |
Proceeds from the exercise of options for common shares | 17 | 11 | 59 |
Dividends paid to preference shareholders | (34) | (34) | (34) |
Dividends paid to common shareholders | (283) | (271) | (247) |
Dividends paid to noncontrolling interests | (23) | (8) | (16) |
Capital contributions (return of capital) from noncontrolling interests, net | (3) | (4) | (5) |
Other, net | (7) | (19) | (23) |
Cash provided by (used for) financing activities | (771) | 631 | (180) |
Effect of exchange rate changes on cash and cash equivalents, and restricted cash | 5 | 11 | 3 |
Net increase (decrease) in cash and cash equivalents, and restricted cash | (71) | (212) | (333) |
Cash and cash equivalents, and restricted cash - beginning of period | 393 | 605 | 938 |
Cash and cash equivalents, and restricted cash - end of period | $ 322 | $ 393 | $ 605 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS - USD ($) $ in Millions | Total | Convertible Preference Shares | Common Shares | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Shares | Non- Controlling Interests | Redeemable Non- Controlling Interests |
Balance at Dec. 31, 2016 | $ 0 | ||||||||
Balance (in shares) at Dec. 31, 2016 | 6,900,000 | 139,500,862 | |||||||
Balance at Dec. 31, 2016 | $ 7,343 | $ 690 | $ 1 | $ 5,143 | $ 8,208 | $ (5,978) | $ (920) | $ 199 | |
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income (loss) | 174 | 160 | 14 | ||||||
Other comprehensive income (loss) | 64 | 48 | 16 | ||||||
Dividends on common shares | (253) | (253) | |||||||
Dividends on preference shares | (34) | (34) | |||||||
Dividends to noncontrolling interests on subsidiary common stock | (15) | (15) | |||||||
Noncontrolling decrease from redemption | (5) | (5) | |||||||
Share-based compensation expense | 29 | 29 | |||||||
Issuance of common shares (in shares) | (300) | 1,145,967 | |||||||
Issuance of common shares | 54 | 54 | |||||||
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) | 1 | ||||||||
Net income (loss) | 286 | 267 | 19 | ||||||
Other comprehensive income (loss) | (1,013) | (1,005) | (8) | (27) | |||||
Dividends on common shares | (276) | (276) | |||||||
Dividends on preference shares | (34) | (34) | |||||||
Dividends to noncontrolling interests on subsidiary common stock | (8) | (8) | |||||||
Noncontrolling decrease from redemption | (4) | (4) | |||||||
Acquisition of noncontrolling interest | 0 | 450 | |||||||
Deconsolidation of a subsidiary | (3) | (3) | |||||||
Share-based compensation expense | 46 | 46 | |||||||
Issuance of common shares (in shares) | (17) | 464,252 | |||||||
Issuance of common shares | 6 | 6 | |||||||
Balance at Dec. 31, 2018 | 424 | 424 | |||||||
Balance (in shares) at Dec. 31, 2018 | 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) | (15) | ||||||||
Net income (loss) | (1,276) | (1,280) | 4 | ||||||
Other comprehensive income (loss) | 1,330 | 1,332 | (2) | (12) | |||||
Redemption value adjustment | 8 | ||||||||
Redemption value adjustment | (8) | (8) | |||||||
Acquisition of noncontrolling interest | (107) | (36) | (71) | ||||||
Dividends on common shares | (283) | (283) | |||||||
Dividends on preference shares | (34) | (34) | |||||||
Dividends to noncontrolling interests on subsidiary common stock | (16) | (16) | (8) | ||||||
Noncontrolling decrease from redemption | (4) | (4) | |||||||
Contribution from noncontrolling interest | 1 | 1 | |||||||
Share-based compensation expense | 39 | 39 | |||||||
Issuance of common shares (in shares) | 702,061 | ||||||||
Issuance of common shares | 10 | 12 | (2) | ||||||
Balance at Dec. 31, 2019 | 397 | $ 397 | |||||||
Balance (in shares) at Dec. 31, 2019 | 6,899,683 | 141,813,142 | |||||||
Balance at Dec. 31, 2019 | $ 6,030 | $ 690 | $ 1 | $ 5,329 | $ 6,437 | $ (5,624) | $ (920) | $ 117 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS (PARENTHETICALS) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
Common stock dividends (in usd per share) | $ 2 | $ 1.96 | $ 1.80 |
Preferred stock dividends (in usd per share) | $ 4.875 | $ 4.875 | $ 4.875 |
NATURE OF BUSINESS, BASIS OF PR
NATURE OF BUSINESS, BASIS OF PRESENTATION, AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF BUSINESS, BASIS OF PRESENTATION, AND SIGNIFICANT ACCOUNTING POLICIES | NATURE OF BUSINESS, BASIS OF PRESENTATION, AND SIGNIFICANT ACCOUNTING POLICIES Description of Business —Bunge Limited, a Bermuda company, together with its consolidated subsidiaries and variable interest entities ("VIEs") in which it is considered the primary beneficiary, through which its businesses are conducted (collectively "Bunge" or "the Company"), is a leading global agribusiness and food company. Bunge's common shares trade on the New York Stock Exchange under the ticker symbol "BG." Bunge operates in five reportable segments: Agribusiness, Edible Oil Products, Milling Products, Sugar and Bioenergy, and Fertilizer. Agribusiness —Bunge's Agribusiness segment is an integrated, global business involved in the purchase, storage, transport, processing and sale of agricultural commodities and commodity products. Bunge's agribusiness operations and assets are located in North America, South America, Europe and Asia-Pacific with merchandising and distribution offices throughout the world. Bunge's Agribusiness segment also participates in related financial activities, such as offering trade structured finance, which leverages its international trade flows, providing risk management services to customers by assisting them with managing price exposure to agricultural commodities, trading of foreign exchange and other financial instruments and investing in start-up and high growth companies through its corporate venture capital unit. Edible Oil products —Bunge's Edible Oil Products segment produces and sells edible oil products, such as packaged and bulk oils and fats, shortenings, margarine, mayonnaise and other products derived from the vegetable oil refining process, and refines and fractionates palm oil, palm kernel oil, coconut oil, and shea butter. Bunge's edible oil products operations are located in North America, South America, Europe, Asia-Pacific, and Africa. Milling products —Bunge's Milling Products segment includes wheat, corn and rice milling businesses, which purchase wheat, corn and rice directly from farmers and dealers and process them into milled products for food processors, bakeries, brewers, snack food producers and other customers. Bunge's wheat milling activities are primarily in Mexico and Brazil. Corn and rice milling activities are in the United States and Mexico. Sugar and Bioenergy —In December 2019, Bunge contributed its Brazilian sugar and bioenergy operations, forming the majority of its Sugar and Bioenergy segment, through which it produced and sold sugar and ethanol derived from sugarcane, as well as energy derived from the sugar and ethanol production process, into a joint venture with the Brazilian biofuels business of BP p.l.c. ("BP"). The joint venture, BP Bunge Bioenergia, in which Bunge has a 50% interest, operates on a stand-alone basis, with a total of 11 mills located across the Southeast, North and Midwest regions of Brazil. As a result of this transaction, Bunge no longer consolidates its Brazilian sugar and bioenergy operations in its consolidated financial statements, and accounts for its interest in the joint venture under the equity method of accounting. Fertilizer —Bunge's Fertilizer segment operates in Argentina, Uruguay and Paraguay, where it produces, blends and distributes a range of liquid and dry NPK fertilizers, including nitrogen-based liquid and solid phosphate fertilizers. Bunge's operations in Argentina are closely linked to its grain origination activities as it supplies fertilizer to producers who supply the Company with grain. This segment also includes port operations in Brazil. Basis of Presentation —The consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The accounting policies used to prepare these financial statements are the same as those used to prepare the consolidated financial statements in prior years, except as described in these notes or for the adoption of new standards as outlined below. Discontinued Operations —In determining whether a disposal group should be presented as discontinued operations, Bunge makes a determination of whether such a group being disposed of comprises a component of the entity, or a group of components of the entity, that represents a strategic shift that has, or will have, a major effect on the Company's operations and financial results. If these determinations are made affirmatively, the results of operations of the group being disposed of (as well as any gain or loss on the disposal transaction) are aggregated for separate presentation apart from the continuing operations of the Company for all periods presented in the consolidated financial statements. Principles of Consolidation —The accompanying consolidated financial statements include the accounts of Bunge, its subsidiaries and VIEs in which Bunge is considered to be the primary beneficiary, and as a result, include the assets, liabilities, revenues and expenses of all entities over which Bunge exercises control. Equity investments in which Bunge has the ability to exercise significant influence but does not control are accounted for by the equity method of accounting. Investments in which Bunge does not exercise significant influence are accounted for at cost, or fair value if that is readily determinable. Intercompany accounts and transactions are eliminated. An enterprise is determined to be the primary beneficiary if it has a controlling financial interest, defined as (a) the power to direct the activities of a VIE that most significantly impact the VIE's business and (b) the obligation to absorb losses of or the right to receive benefits from the VIE that could potentially be significant to the VIE's operations. Performance of that analysis requires the exercise of judgment. The VIE and consolidation assessments are revisited upon the occurrence of relevant reconsideration events. Noncontrolling interests in subsidiaries related to Bunge's ownership interests of less than 100% are reported as Noncontrolling interests or Redeemable noncontrolling interests in the consolidated balance sheets. The noncontrolling ownership interests in Bunge's earnings, net of tax, is reported as Net (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests in the consolidated statements of income. Reclassifications —Certain prior year amounts have been reclassified to conform to current year presentation. Use of Estimates —The preparation of consolidated financial statements in conformity with U.S. GAAP requires Bunge to make estimates and assumptions that affect the amounts reported in the financial statements and notes. Actual results could differ from those estimates. Translation of Foreign Currency Financial Statements —Bunge's reporting currency is the U.S. dollar. The functional currency of the majority of Bunge's foreign subsidiaries is their local currency and, as such, amounts included in the consolidated statements of income, comprehensive income (loss), cash flows and changes in equity are translated using average exchange rates during each period. Assets and liabilities are translated at period-end exchange rates and resulting foreign currency translation adjustments are recorded in the consolidated balance sheets as a component of accumulated other comprehensive income (loss). However, in accordance with U.S. GAAP, if a foreign entity's economy is determined to be highly inflationary, then such foreign entity's financial statements shall be remeasured as if the functional currency were the reporting currency. Bunge has significant operations in Argentina and, up until June 30, 2018, had utilized the official exchange rate of the Argentine peso published by the Argentine government for its commercial transactions and remeasurement purposes of financial statements. Argentina has experienced negative economic trends, as evidenced by multiple periods of increasing inflation rates, devaluation of the peso , and increasing borrowing rates, requiring the Argentine government to take mitigating actions. During the second quarter of 2018, it was determined that Argentina's economy should be considered highly inflationary, and as such, beginning on July 1, 2018, Bunge's Argentine subsidiaries changed their functional currency to the U.S. Dollar. This change in functional currency did not have a material impact on Bunge's consolidated financial statements. Foreign Currency Transactions —Monetary assets and liabilities denominated in currencies other than the functional currency are remeasured into their respective functional currencies at exchange rates in effect at the balance sheet date. The resulting exchange gain or loss is included in Bunge's consolidated statements of income as foreign exchange gain (loss) unless the remeasurement gain or loss relates to an intercompany transaction that is of a long-term investment nature and for which settlement is not planned or anticipated in the foreseeable future. Gains or losses arising from translation of such transactions are reported as a component of Accumulated other comprehensive income (loss) in Bunge's consolidated balance sheets. Cash, Cash Equivalents, and Restricted Cash —Cash and cash equivalents include time deposits and readily marketable securities with original maturity dates of three months or less at the time of acquisition. Restricted cash is included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheet that sums to the total of the same such amounts shown in the consolidated statements of cash flows. December 31, (US$ in millions) 2019 2018 2017 Cash and cash equivalents $ 320 $ 389 $ 601 Restricted cash included in other current assets 2 4 4 Total $ 322 $ 393 $ 605 Trade Accounts Receivable and Secured Advances to Suppliers —Trade accounts receivable and secured advances to suppliers are stated at their historical carrying amounts net of write-offs and allowances for uncollectible accounts. Bunge establishes an allowance for uncollectible trade accounts receivable and secured advances to farmers based on historical experience, farming economics and other market conditions as well as specific customer collection issues. Uncollectible accounts are written off when a settlement is reached for an amount below the outstanding historical balance or when Bunge has determined that collection is unlikely. Secured advances to suppliers bear interest at contractual rates which reflect current market interest rates at the time of the transaction. There are no deferred fees or costs associated with these receivables. As a result, there are no imputed interest amounts to be amortized under the interest method. Interest income is calculated based on the terms of the individual agreements and is recognized on an accrual basis. Bunge follows accounting guidance on the disclosure of the credit quality of financing receivables and the allowance for credit losses, which requires information to be disclosed at disaggregated levels, defined as portfolio segments and classes. Under this guidance, a class of receivables is considered impaired, based on current information and events, if Bunge determines it probable that all amounts due under the original terms of the receivable will not be collected. Recognition of interest income is suspended once the borrower defaults on the originally scheduled delivery of agricultural commodities as the collection of future income is determined not to be probable. No additional interest income is accrued from the point of default until ultimate recovery, at which time amounts collected are credited first against the receivable and then to any unrecognized interest income. Inventories —Readily marketable inventories ("RMI") are agricultural commodity inventories, such as soybeans, soybean meal, soybean oil, corn and wheat that are readily convertible to cash because of their commodity characteristics, widely available markets and international pricing mechanisms. All of Bunge's RMI are recorded at fair value. These agricultural commodity inventories have quoted market prices in active markets, may be sold without significant further processing, and have predictable and insignificant disposal costs. Changes in the fair values of RMI are recognized in earnings as a component of Cost of goods sold. Inventories other than RMI are stated at the lower of cost or market by inventory product class. Cost is determined using primarily the weighted-average cost method. Fair Value Measurements —Bunge determines fair value based on the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Bunge determines the fair values of its readily marketable inventories, derivatives, and certain other assets based on the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs are inputs based on market data obtained from sources independent of Bunge that reflect the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are inputs that are developed based on the best information available in circumstances that reflect Bunge's own assumptions based on market data and on assumptions that market participants would use in pricing the asset or liability. The fair value standard describes three levels within its hierarchy that may be used to measure fair value. Level 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). Readily marketable inventories. Over-the-counter (‘‘OTC’’) commodity purchase and sale contracts. OTC derivatives whose value is determined using pricing models with inputs that are generally based on exchange traded prices, adjusted for location specific inputs that are primarily observable in the market or can be derived principally from or corroborated by observable market data. Marketable securities in less active markets. 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. Based on historical experience with Bunge’s suppliers and customers, Bunge’s own credit risk, and knowledge of current market conditions, Bunge does not view nonperformance risk to be a significant input to fair value for the majority of its forward commodity purchase and sale contracts. 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. Bunge’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. Bunge’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. The majority of Bunge's exchange traded agricultural commodity futures are settled daily, generally through its clearing subsidiary and, therefore, such futures are not included in the assets and liabilities that are accounted for at fair value on a recurring basis. Derivative Instruments and Hedging Activities —Bunge enters into derivative instruments to manage its exposure to movements associated with agricultural commodity prices, transportation costs, foreign currency exchange rates, interest rates, and energy costs. Bunge's use of these instruments is generally intended to mitigate the exposure to market variables (see Note 16, Derivative instruments and hedging activities ). Additionally, commodity contracts relating to forward sales of commodities in the Company’s Agribusiness segment, such as soybeans, soybean meal and oil, corn, and wheat, are accounted for as derivatives at fair value under ASC 815 (see Revenue Recognition below). Generally, derivative instruments are recorded at fair value in other current assets or other current liabilities in Bunge's consolidated balance sheets. Bunge assesses at the inception of a hedge whether any derivatives designated as hedges are highly effective in offsetting changes in the hedged items and, on an ongoing basis, qualitatively monitors whether that assertion is still met. The changes in fair values of derivative instruments designated as fair value hedges, along with the gains or losses on the related hedged items are recorded in earnings in the consolidated statements of income in the same caption as the hedged items. The changes in fair values of derivative instruments that are designated as cash flow hedges are recorded in accumulated other comprehensive income (loss) and are reclassified to earnings when the hedged cash flows affect earnings or when the hedge is no longer considered to be effective. In addition, Bunge may designate certain derivative instruments and non-derivative instruments as net investment hedges to hedge the exposure associated with its equity investments in foreign operations. When using forward derivative contracts as hedging instruments in a net investment hedge, all changes in the fair value of the derivative are recorded as a component of accumulated other comprehensive income (loss) in the consolidated balance sheets. Marketable Securities and Other Short-Term Investments —Bunge classifies its marketable debt securities and short-term investments as available-for-sale, held-to-maturity or trading. Available-for-sale debt securities are reported at fair value with unrealized gains (losses) included in accumulated other comprehensive income (loss). Held-to-maturity debt investments represent financial assets in which Bunge has the intent and ability to hold to maturity. Debt trading securities and all equity securities are recorded at fair value and are bought and held principally for selling them in the near term and therefore held for only a short period of time, with all gains (losses) included in net income (loss). Bunge monitors its held-to-maturity investments for impairment periodically and recognizes an impairment charge when the decline in fair value of an investment is judged to be other than temporary. Recoverable Taxes —Recoverable taxes include value-added taxes paid upon the acquisition of raw materials and taxable services and other transactional taxes, which can be recovered in cash or as compensation against income taxes or other taxes owed by Bunge, primarily in Brazil and Europe. These recoverable tax payments are included in other current assets or other non-current assets based on their expected realization. In cases where Bunge determines that recovery is doubtful, recoverable taxes are reduced by allowances for the estimated unrecoverable amounts. Property, Plant and Equipment, Net —Property, plant and equipment, net is stated at cost less accumulated depreciation. Major improvements that extend either the life, capacity, efficiency, or improve the safety of an asset are capitalized, while maintenance and repairs are expensed as incurred. Costs related to legal obligations associated with the future retirement of capitalized assets are capitalized as part of the cost of the related asset. Bunge generally capitalizes eligible costs to acquire or develop internal-use software that are incurred during the application development stage. Interest costs on borrowings during construction/completion periods of major capital projects are also capitalized. Depreciation is computed based on the straight-line method over the estimated useful lives of the assets. Estimated useful lives for property, plant and equipment are as follows: Years Buildings 10 - 50 Machinery and equipment 7 - 25 Furniture, fixtures and other 3 - 20 Goodwill —Goodwill represents the cost in excess of the fair value of net assets acquired in a business acquisition. Goodwill is not amortized but is tested annually for impairment, or between annual tests if events or circumstances indicate potential impairment. Bunge's annual impairment testing is generally performed during the fourth quarter of its fiscal year. Goodwill is tested for impairment at the reporting unit level, which has been determined to be the Company's operating segments or one level below the operating segments in certain instances (see Note 8, Goodwill ). Other Intangible Assets —Finite lived intangible assets primarily include trademarks, customer relationships and lists, port facility usage rights, and patents that are amortized on a straight-line basis over their contractual or legal lives, or their estimated useful lives where such lives are not determined by law or contract (see Note 9, Other intangible assets ). Impairment of Property, Plant and Equipment and Finite Lived Intangible Assets —Bunge reviews its property, plant and equipment and finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. Bunge bases its evaluation of recoverability on such indicators as the nature, future economic benefits, and geographic locations of the assets, historical or future profitability measures, and other external market conditions. If these indicators result in the expected non-recoverability of the carrying amount of an asset or asset group, Bunge evaluates potential impairment using undiscounted estimated future cash flows. If such undiscounted future cash flows during the asset's remaining useful life are below its carrying value, a loss is recognized for the shortfall, measured by the present value of the estimated future cash flows or by third-party appraisals. Bunge records impairments related to property, plant and equipment and finite-lived intangible assets used in the processing of its products in cost of goods sold in its consolidated statements of income. Any impairment of marketing or brand assets is recognized in selling, general and administrative expenses in the consolidated statements of income (see Note 10, Impairments ). Property, plant and equipment and other finite-lived intangible assets to be sold or otherwise disposed of are reported at the lower of carrying amount or fair value less cost to sell. Investments in Affiliates —Bunge has investments in various unconsolidated joint ventures accounted for using the equity method or cost method. Bunge reviews its investments annually or when an event or circumstances indicate that a potential decline in value may be other than temporary. Bunge considers various factors in determining whether to recognize an impairment charge, including the length of time that the fair value of the investment is expected to be below its carrying value, the financial condition, operating performance and near-term prospects of the affiliate and Bunge's intent and ability to hold the investment for a period of time sufficient to allow for recovery of the fair value. (see Note 10, Impairments and Note 11, Investments in affiliates ). Revenue Recognition —The Company’s revenue comprises sales from commodity contracts that are accounted for under ASC 815, Derivatives and Hedging (ASC 815) and sales of other products and services that are accounted for under ASC 606, Revenue from Contracts with Customers (ASC 606). Additional information about the Company’s revenues can be found in Note 28, Segment Information . Revenue from commodity contracts (ASC 815) - Revenue from commodity contracts primarily relates to forward sales of commodities in the Company’s Agribusiness segment, such as soybeans, soybean meal and oil, corn and wheat, which are accounted for as derivatives at fair value under ASC 815. These forward sales meet the definition of a derivative under ASC 815 as they have an underlying (e.g. the price of soybeans), a notional amount (e.g. metric tons), no initial net investment and can be net settled since the commodity is readily convertible to cash. Bunge does not apply the normal purchase and normal sale exception available under ASC 815 to these contracts. Certain of the Company’s sales in its Edible Oil Products, Milling Products, and Sugar and Bioenergy segments also qualify as derivatives, primarily sales of commodities like bulk soybean and canola oil, and sugar. Revenue from commodity contracts is recognized in Net sales for the contracted amount when the contracts are settled at a point in time by transferring control of the commodity to the customer, similarly to revenue recognized from contracts with customers under ASC 606. From inception through settlement, these forward sales arrangements are recorded at fair value under ASC 815 with unrealized gains and losses recognized in Cost of goods sold and carried on the consolidated balance sheet as Current assets (see Note 6, Other current assets ) or Current liabilities (see Note 13, Other current liabilities ), respectively. Further information about the fair value of these contracts is presented in Note 15, Fair value measurements . Revenue from contracts with customers (ASC 606) - Revenue from contracts with customers accounted for under ASC 606 is primarily generated in the Company's Edible Oil Products, Milling Products, Sugar and Bioenergy and Fertilizer segments through the sale of refined edible oil-based products such as packaged vegetable oils, shortenings, margarines and mayonnaise; milled grain products such as wheat flours, bakery mixes, corn-based products, and rice; certain sugar and bioenergy products; and fertilizer products. These sales are accounted for under ASC 606 as these sales arrangements do not meet the aforementioned criteria to be considered derivatives under ASC 815. These revenues are measured based on consideration specified in a contract with a customer, and exclude sales taxes, discounts related to promotional programs and amounts collected on behalf of third parties. The Company recognizes revenue from these contracts at a point in time when it satisfies a performance obligation by transferring control of a product to a customer, generally when legal title and risks and rewards transfer to the customer. Sales terms provide for transfer of title either at the time and point of shipment or at the time and point of delivery and acceptance of the product being sold. In contracts that do not specify the timing of transfer of legal title or transfer of significant risks and rewards of ownership, judgment is required in determining the timing of transfer of control. In such cases, the Company considers standard business practices and the relevant laws and regulations applicable to the transaction to determine when legal title or the significant risks and rewards of ownership are transferred. The transaction price is generally allocated to performance obligations on a relative standalone selling price basis. Standalone selling prices are estimated based on observable data of the Company’s sales of such products and services to similar customers and in similar circumstances on a standalone basis. In assessing whether to allocate variable consideration to a specific part of the contract, the Company considers the nature of the variable payment and whether it relates specifically to its efforts to satisfy a specific part of the contract. Variable consideration is generally known upon satisfaction of the performance obligation. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue producing transaction, that are collected by the Company from a customer, are excluded from revenue. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in Cost of goods sold. Warranties provided to customers are primarily assurance-type warranties on the fitness of purpose and merchantability of the Company’s goods and services. The Company does not provide service-type warranties to customers. Payment is generally due at the time of shipment or delivery, or within a specified time frame after shipment or delivery, which is generally 30-60 days. The Company’s contracts generally provide customers the right to reject any products that do not meet agreed quality specifications. Product returns and refunds are not material. Additionally, the Company recognizes revenue in the Agribusiness segment from ocean freight and port services over time as the related services are performed. Performance obligations are typically completed within a fiscal quarter and any unearned revenue or accrued revenues are not material. Share-Based Compensation —Bunge maintains equity incentive plans for its employees and non-employee directors (see Note 26, Share-based compensation ). Bunge accounts for share-based compensation based on the grant date fair value. Share-based compensation expense is recognized on a straight-line basis over the requisite service period. Income Taxes —Income tax expenses and benefits are recognized based on the tax laws and regulations in the jurisdictions in which Bunge's subsidiaries operate. Under Bermuda law, Bunge is not required to pay taxes in Bermuda on either income or capital gains. The provision for income taxes includes income taxes currently payable and deferred income taxes arising as a result of temporary differences between the carrying amounts of existing assets and liabilities in Bunge's financial statements and their respective tax bases. Deferred tax assets are reduced by valuation allowances if current evidence does not suggest that the deferred tax asset will be realized. Accrued interest and penalties related to unrecognized tax benefits are recognized in Income tax (expense) benefit in the consolidated statements of income (see Note 14, Income taxes ). Research and Development —Research and development costs are expensed as incurred. Research and development expenses were $15 million , $15 million and $20 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. New Accounting Pronouncements —In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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 Bunge starting January 1, 2020. 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 adoption of this standard is not expected to have a material impact on Bunge's consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740)-Simplifying the Accounting for Income Taxes, which reduces complexity in the accounting for income taxes by removing certain exceptions to the general principles in Topic 74 0. The amendments also improve consistent application of and simplify U.S. GAAP for oth |
GLOBAL COMPETITIVENESS PROGRAM
GLOBAL COMPETITIVENESS PROGRAM AND PORTFOLIO RATIONALIZATION INITIATIVES | 12 Months Ended |
Dec. 31, 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"). The GCP was fully implemented by the end of 2019, and has reduced the Company’s overhead costs. 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. As part of the GCP, Bunge offered a voluntary early retirement program to certain U.S. based salaried employees. Costs associated with the early retirement program are reflected in severance and other employee benefit costs for the year ended December 31, 2017. In conjunction with the GCP, the Company has implemented other cost reduction and strategic initiatives to enhance the efficiency and performance of the Company’s business. The table below sets forth, by type and segment, the costs recorded for the GCP and other associated initiatives for the years ended December 31, 2019 , 2018 , and 2017: (US$ in millions) Agribusiness Segment Edible Oils Segment Milling Segment Sugar and Bioenergy Segment Fertilizer Segment Total 2019 Severance and Other Employee Benefit Costs $ 19 $ 6 $ 4 $ — $ — $ 29 Consulting and Professional Services 4 2 — 1 — 7 Other Program Costs 6 2 1 1 — 10 Total Program Costs $ 29 $ 10 $ 5 $ 2 $ — $ 46 2018 Severance and Other Employee Benefit Costs $ 15 $ 2 $ 1 $ 2 $ 2 $ 22 Consulting and Professional Services 18 4 3 4 1 30 Other Program Costs 6 1 — 1 — 8 Total Program Costs $ 39 $ 7 $ 4 $ 7 $ 3 $ 60 2017 Severance and Other Employee Benefit Costs $ 39 $ 12 $ 6 $ 1 $ 1 $ 59 Consulting and Professional Services 10 4 1 3 — 18 Other Program Costs — — — — — — Total Program Costs $ 49 $ 16 $ 7 $ 4 $ 1 $ 77 In addition to the above charges, for the year ended December 31, 2017 , $13 million of severance and other employee benefit costs were recorded related to other industrial productivity initiatives. For the years ended December 31, 2019 , 2018 , and 2017 $4 million , $9 million , and $35 million , respectively, of the above costs were recorded in Cost of goods sold ("COGS") and $42 million , $51 million , and $55 million , respectively, were recorded in Selling, general and administrative expenses ("SG&A"). Bunge's liability associated with the GCP and other associated initiatives is primarily comprised of accruals for severance and other employee benefit costs. The following table sets forth the activity affecting the liability for severance and other employee benefit costs related to the GCP and other associated initiatives, which is recorded in Other current liabilities on the consolidated balance sheet. (US$ in millions) Severance and Other Employee Benefit Costs Balance at December 31, 2017 $ 45 Charges incurred 22 Cash payments (64 ) Balance at December 31, 2018 $ 3 Charges incurred 29 Cash payments (21 ) Balance at December 31, 2019 $ 11 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 years ended December 31, 2019 , 2018 , and 2017, $1,761 million , $39 million and $45 million , respectively, of such charges have been recognized. Non-cash charges in 2019, including impairment and a loss on sale, of $ 1,524 million , recorded in COGS, $49 million recorded in Other income (expense)-net, and $2 million , recorded in SG&A, 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 $28 million , recorded in SG&A, primarily relate to operating lease assets and leasehold improvements associated with the relocation of the company's global headquarters, and $152 million of non-cash impairment charges, recorded in COGS, relate to PP&E and intangible assets subject to portfolio rationalization initiatives. The Company also incurred a loss on the sale of an equity method investment of $6 million , recorded in Other income (expense)-net. Of the above charges recorded in the year ended December 31, 2019 , $1,590 million , $100 million , $41 million , $29 million , and $1 million were recorded in the company's Sugar and Bioenergy, Agribusiness, Edible Oils Products, Milling Products, and Fertilizer segments, respectively. On December 2, 2019, the Company and BP completed the formation of BP Bunge Bioenergia, the Brazilian bioenergy joint venture that combines their Brazilian bioenergy and sugarcane ethanol businesses. Pursuant to the business combination agreement, the Company and BP contributed their respective interests in their Brazilian sugar and bioenergy operations to the joint venture. The Company received cash proceeds of $775 million in the transaction, comprising $700 million in respect of non-recourse debt of the Company assumed by the joint venture at closing, and an additional $75 million from BP, before customary closing adjustments. The Company used 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. In connection with its entry into the business contribution agreement, the Company 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. Additional charges of $65 million were recorded in the quarter ended December 31, 2019 related to a loss on sale and closing and other costs associated with the transaction. |
BUSINESS ACQUISITIONS AND DISPO
BUSINESS ACQUISITIONS AND DISPOSITIONS | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
BUSINESS ACQUISITIONS AND DISPOSITIONS | BUSINESS ACQUISITIONS AND DISPOSTIONS Acquisitions On March 1, 2018 ("the acquisition date"), Bunge acquired a 70% ownership interest in IOI Loders Croklaan ("Loders") from IOI Corporation Berhad ("IOI") for $980 million in cash. The transaction expands Bunge's value-added capabilities, reach, and scale across core geographies to establish Bunge as a global leader in business-to-business (or "B2B") oil solutions. The Loders portfolio includes a full range of palm and tropical oil-derived products with strength in confectionery, bakery and infant nutrition applications. The following table summarizes the allocation of the fair values of the assets acquired and liabilities assumed at the acquisition date, as included in Bunge's consolidated balance sheet: (US$ in millions) Cash and cash equivalents $ 82 Accounts receivable 146 Inventories 406 Other current assets 66 Property, plant and equipment 411 Other intangible assets 464 Goodwill 242 Total assets 1,817 Trade accounts payable (109 ) Other current liabilities (100 ) Deferred income taxes (143 ) Other non-current liabilities (35 ) Total liabilities (387 ) Redeemable noncontrolling interest (450 ) Net assets acquired $ 980 The $242 million of goodwill recognized was assigned to the Edible Oil Products segment. The goodwill recognized is primarily attributable to expected synergies and the assembled workforce of Loders. None of the goodwill is expected to be deductible for income tax purposes. The fair value of the identifiable intangible assets was determined primarily using the “income approach,” which requires a forecast of all the expected future cash flows either using the multi-period excess earnings method or the relief-from-royalty method. Some of the more significant assumptions inherent in the development of intangible asset values include: the amount and timing of projected future cash flows, the discount rate selected to measure the risks inherent in the future cash flows, and the assessment of the intangible asset’s life cycle, as well as other factors. The following table provides the details of other intangible assets acquired, by major class and weighted average useful life: (US$ in millions) Useful life Customer relationships 15 years $ 265 Intellectual property 10 years 120 Trade names 15 years 51 Favorable leases 38 years 26 Other various 2 Total Other intangible assets $ 464 The fair value in the opening balance sheet of the 30% redeemable noncontrolling interest in Loders was estimated to be $450 million . The fair value was estimated based on 30% of the total equity value of Loders based on the transaction price for the 70% stake in Loders, considering the cash paid and the value of the put/call provisions. See Note 23 for more information related to this redeemable noncontrolling interest. The amounts of revenue and earnings of Loders included in Bunge's consolidated statement of income from the acquisition date to December 31, 2018 is as follows: (US$ in millions) Net sales $ 1,331 Income (loss) from continuing operations $ 3 The following represents the unaudited supplemental pro forma results of the combined entity as if Loders was acquired on January 1, 2017: Year Ended December 31, (US$ in millions) 2018 2017 Net sales $ 46,047 $ 47,588 Income (loss) from continuing operations $ 298 $ 129 The supplemental pro forma amounts for Income (loss) from continuing operations above have been adjusted to reflect additional depreciation and amortization that would have been charged assuming the fair value adjustments to Property, plant and equipment and Other intangible assets had been applied on January 1, 2017. Additionally, these amounts were also adjusted to reflect additional interest expense on the $1 billion of senior notes issued in connection with the acquisition, as if such issuance occurred on January 1, 2017. Supplemental pro forma Income (loss) from continuing operations for the year ended December 31, 2018 was also adjusted to exclude $19 million of acquisition and integration related costs incurred in 2018, while 2017 supplemental pro forma Income (loss) from continuing operations was adjusted to include these charges. Supplemental pro forma financial information is not necessarily indicative of the Company's actual results of operations if the acquisition had been completed at the date indicated, nor is it necessarily an indication of future operating results. Amounts do not include any operating efficiencies or cost savings that the Company believes are achievable. Other acquisitions On January 30, 2018, Bunge acquired Minsa Corporation ("Minsa USA") for $75 million . As a result of the transaction, Bunge acquired two corn mills in the United States. The purchase price allocation resulted in $37 million allocated to Property, plant and equipment, $20 million to finite-lived Other intangible assets, $(1) million to other net assets and liabilities, and $19 million to Goodwill, all recorded in the Milling Products segment. Dispositions On December 2, 2019, Bunge and BP plc completed the formation of BP Bunge Bioenergia, a Brazilian bioenergy joint venture. As part of the transaction, Bunge contributed its interests in its Brazilian sugar and bioenergy operations to the joint venture and received cash proceeds of $775 million in the transaction, comprising $700 million in respect of non-recourse debt of the Company assumed by the joint venture at closing, and an additional $75 million from BP, before customary closing adjustments. As a result of this transaction, Bunge will account for the joint venture as an equity method investment. See Note 2 for further information related to this transaction. On December 20, 2019, Bunge announced that it has entered into an agreement to sell its margarine and mayonnaise assets in Brazil. The transaction includes three production plants and the brands used for these two products. The completion of the sale is subject to regulatory approval and is expected to close during 2020. In connection with this agreement, the Company has classified the assets and liabilities to be sold as held for sale in its consolidated financial statements as of December 31, 2019. The following table presents the major classes of assets and liabilities included in Assets held for sale and Liabilities held for sale, respectively, on the Consolidated Balance Sheet at December 31, 2019: (US$ in millions) Inventories $ 19 Property, plant, and equipment, net 49 Other intangible assets, net 4 Assets held for sale $ 72 Other current liabilities $ 4 Liabilities held for sale $ 4 |
TRADE STRUCTURED FINANCE PROGRA
TRADE STRUCTURED FINANCE PROGRAM | 12 Months Ended |
Dec. 31, 2019 | |
Trade Structured Finance Program [Abstract] | |
TRADE STRUCTURED FINANCE PROGRAM | TRADE STRUCTURED FINANCE PROGRAM Bunge engages in various trade structured finance activities to leverage the value of its global trade flows. For the years ended December 31, 2019 and 2018 , net returns from these activities were $27 million and $30 million , respectively, and were included as a reduction of cost of goods sold in the accompanying consolidated statements of income. These activities include programs under which Bunge generally obtains U.S. dollar-denominated letters of credit (“LCs”), each based on an underlying commodity trade flow, from financial institutions and time deposits denominated in either the local currency of the financial institutions' counterparties or in U.S. dollars, as well as foreign exchange forward contracts, and other programs in which trade related payables are set-off against receivables, all of which are subject to legally enforceable set-off agreements. As of December 31, 2019 and 2018 , time deposits and LCs of $3,409 million and $4,729 million , respectively, were presented net on the consolidated balance sheets as the criteria of ASC 210-20, Offsetting , had been met. At December 31, 2019 and 2018 , time deposits, including those presented on a net basis, carried weighted-average interest rates of 3.10% and 3.76% , respectively. During the years ended December 31, 2019 , 2018 and 2017 , total net proceeds from issuances of LCs were $3,318 million , $4,657 million and $8,174 million , respectively. These cash inflows are offset by the related cash outflows resulting from placement of the time deposits and repayment of the LCs. All cash flows related to the programs are included in operating activities in the consolidated statements of cash flows. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories by segment are presented below. Readily marketable inventories (“RMI”) are agricultural commodity inventories, such as soybeans, soybean meal, soybean oil, corn and wheat, carried at fair value because of their commodity characteristics, widely available markets, and international pricing mechanisms. The Company engages in trading and distribution, or merchandising activities, and part of RMI can be attributable to such activities and is not held for processing. All other inventories are carried at lower of cost or net realizable value. December 31, (US$ in millions) 2019 2018 Agribusiness (1) $ 4,002 $ 4,551 Edible Oil Products (2) 770 742 Milling Products 194 220 Sugar and Bioenergy (3) 6 280 Fertilizer 66 78 Total $ 5,038 $ 5,871 (1) Includes RMI of $3,796 million and $4,365 million at December 31, 2019 and 2018 , respectively. Of these amounts $2,589 million and $3,300 million can be attributable to merchandising activities at December 31, 2019 and 2018 , respectively. (2) Includes RMI of $133 million and $88 million at December 31, 2019 and 2018 , respectively. (3) Includes RMI of $5 million and $79 million at December 31, 2019 and 2018 , respectively. Of these amounts, $0 million and $74 million can be attributable to merchandising activities at December 31, 2019 and 2018 , respectively. |
OTHER CURRENT ASSETS
OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER CURRENT ASSETS | OTHER CURRENT ASSETS Other current assets consist of the following: December 31, (US$ in millions) 2019 2018 Unrealized gains on derivative contracts, at fair value $ 927 $ 1,071 Prepaid commodity purchase contracts (1) 153 253 Secured advances to suppliers, net (2) 346 257 Recoverable taxes, net 476 500 Margin deposits 285 348 Marketable securities, at fair value, and other short-term investments 393 162 Deferred purchase price receivable (3) 105 128 Income taxes receivable 37 102 Prepaid expenses 221 165 Other 170 185 Total $ 3,113 $ 3,171 (1) Prepaid commodity purchase contracts represent advance payments against contracts for future delivery of specified quantities of agricultural commodities. (2) Bunge provides cash advances to suppliers, primarily Brazilian soybean farmers, to finance a portion of the suppliers' production costs. Bunge does not bear any of the costs or operational risks associated with growing the related crops. The advances are largely collateralized by future crops and physical assets of the suppliers, carry a local market interest rate, and settle when the farmer's crop is harvested and sold. The secured advances to farmers are reported net of allowances of $1 million and $1 million at December 31, 2019 and December 31, 2018 , respectively. Interest earned on secured advances to suppliers of $26 million , $30 million and $44 million , for the years ended December 31, 2019 , 2018 and 2017 , respectively, is included in Net sales in the consolidated statements of income. (3) Deferred purchase price receivable represents additional credit support for the investment conduits in Bunge's trade receivables securitization program (see Note 19). Marketable Securities and Other Short-Term Investments —Bunge invests in foreign government securities, corporate debt securities, deposits, equity securities, and other securities. The following is a summary of amounts recorded in the consolidated balance sheets as marketable securities and other short-term investments. December 31, (US$ in millions) 2019 2018 Foreign government securities $ 212 $ 55 Corporate debt securities 161 91 Certificate of deposits/time deposits — 15 Equity securities 14 — Other 6 1 Total marketable securities and other short-term investments $ 393 $ 162 As of December 31, 2019 and 2018 , $387 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 twelve months ended December 31, 2019 , unrealized gains of $32 million have been recorded for investments still held at December 31, 2019 . |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consist of the following: December 31, (US$ in millions) 2019 2018 Land $ 390 $ 403 Biological assets — 663 Buildings 2,046 2,139 Machinery and equipment 4,834 5,664 Furniture, fixtures and other 587 581 Construction in progress 303 435 Gross book value 8,160 9,885 Less: accumulated depreciation and depletion (4,028 ) (4,684 ) Total property, plant and equipment, net $ 4,132 $ 5,201 Bunge's capital expenditures amounted to $528 million , $490 million , and $633 million during the years ended December 31, 2019 , 2018 and 2017 , respectively. Included in these capitalized expenditures was capitalized interest on construction in progress of $1 million , $4 million , and $6 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Depreciation and depletion expense was $489 million , $565 million and $580 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | GOODWILL Bunge performs its annual goodwill impairment analysis during the fourth quarter. If events or indicators of impairment occur between annual impairment analyses, the Company performs an impairment analysis at that date. These events or circumstances could include a significant change in the business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant asset. In testing for a potential impairment of goodwill, the Company: (1) verifies there are no changes to its reporting units with goodwill balances; (2) allocates goodwill to its various reporting units to which the acquired goodwill relates; (3) determines the carrying value, or book value, of its reporting units; (4) estimates the fair value of each reporting unit using a discounted cash flow model and/or using market multiples; (5) compares the fair value of each reporting unit to its carrying value; and (6) if the estimated fair value of a reporting unit is less than the carrying value, the Company recognizes an impairment charge for such amount, but not exceeding the total amount of goodwill allocated to that reporting unit. Critical estimates in the determination of fair value under the income approach include, but are not limited to, assumptions about variables such as commodity prices, crop and related throughput and production volumes, profitability, future capital expenditures and discount rates, all of which are subject to a high degree of judgment. Changes in the carrying value of goodwill by segment for the years ended December 31, 2019 and 2018 are as follows: (US$ in millions) Agribusiness Edible Oil Products Milling Products Sugar and Bioenergy (3) Fertilizer Total Goodwill, gross of impairments $ 253 $ 107 $ 172 $ 514 $ 1 $ 1,047 Accumulated impairment losses (2 ) (13 ) (3 ) (514 ) — (532 ) Balance, December 31, 2017, net 251 94 169 — 1 515 Goodwill acquired (1) — 242 19 — — 261 Foreign currency translation (18 ) (18 ) (13 ) — — (49 ) Goodwill, gross of impairments 235 331 178 514 1 1,259 Accumulated impairment losses (2 ) (13 ) (3 ) (514 ) — (532 ) Balance, December 31, 2018, net 233 318 175 — 1 727 Foreign currency translation (5 ) (4 ) 1 — — (8 ) Impairments (2) — (108 ) — — — (108 ) Goodwill, gross of impairments 230 327 179 — 1 737 Accumulated impairment losses (2 ) (121 ) (3 ) — — (126 ) Balance, December 31, 2019, net $ 228 $ 206 $ 176 $ — $ 1 $ 611 (1) Edible Oils goodwill relates to the Loders acquisition and the Milling Products goodwill relates to the Minsa USA acquisition. See Note 3, Business acquisitions and dispositions, for complete business acquisition details. (2) During the fourth quarter of 2019, the Company recorded an impairment charge related to the goodwill of its Loders reporting unit. The impairment resulted from a downward revision of forecasted future cash flows, as during 2019, the Loders reporting unit did not achieve its forecasted earnings targets due to operational delays at certain facilities, as well as delays in realizing certain expected synergies from the acquisition. The fair value of the Loders reporting unit was determined based on a weighted-average discounted cash flow model, comprising different scenarios and assumptions of the long-term revenues, costs, synergies, growth rates, capital expenditures and other related cash flows associated with each scenario. (3) During 2019, the Company contributed its Brazilian sugar and bioenergy operations into a joint venture with BP, forming BP Bunge Bioenergia. As such, historical goodwill, gross of impairments, and accumulated impairment losses have been derecognized from the consolidated financial statements. |
OTHER INTANGIBLE ASSETS
OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
OTHER INTANGIBLE ASSETS | OTHER INTANGIBLE ASSETS Other intangible assets are all finite-lived and consist of the following: December 31, (US$ in millions) 2019 2018 Gross carrying amount: Trademarks/brands $ 190 $ 235 Licenses 11 12 Port rights 85 141 Customer Relationships 356 372 Patents 133 135 Other 99 95 874 990 Accumulated amortization: Trademarks/brands (81 ) (106 ) Licenses (9 ) (10 ) Port rights (22 ) (37 ) Customer Relationships (75 ) (54 ) Patents (43 ) (32 ) Other (61 ) (54 ) (291 ) (293 ) Other intangible assets, net $ 583 $ 697 In 2018 , Bunge acquired $282 million of customer relationships, $120 million of patents, $55 million of brands and trademarks, and $28 million other intangible assets, as part of the Loders and Minsa USA acquisitions. Bunge allocated $465 million to the Edible Oils segment and $20 million to the Milling segment. Finite lives of these intangibles range from 10 to 38 years. Amortization expense was $55 million , $57 million and $29 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. The estimated annual future amortization expense is $36 million for 2020 through 2024. During 2019, Bunge recorded an impairment charge of $11 million related to a customer relationship intangible asset in its Milling Products segment. |
IMPAIRMENTS
IMPAIRMENTS | 12 Months Ended |
Dec. 31, 2019 | |
IMPAIRMENTS | |
IMPAIRMENTS | IMPAIRMENTS For the year ended December 31, 2019 , Bunge recorded pre-tax, impairment charges of $1,825 million , of which $37 million , $1,678 million and $110 million are recorded in SG&A, COGS, and Other income (expense)—net ("Other"), respectively, in its consolidated statement of income. These amounts are primarily made up of $1,526 million relating to the contribution of the Company's Brazilian sugar and bioenergy operations to the newly formed BP Bunge Bioenergia joint venture, $158 million relating to the impairment of property, plant and equipment and right-of-use assets, primarily associated with portfolio rationalization initiatives, $108 million related to a goodwill impairment charge associated with the acquisition of Loders, $22 million related to the relocation of the Company's global headquarters, and an $11 million intangible asset impairment charge. The charges were recorded in the following segments; $1,535 million to Sugar and Bioenergy, $154 million to Edible Oils, $105 million to Agribusiness, $29 million to Milling, and $2 million to Other. For the year ended December 31, 2018 , Bunge recorded pre-tax, impairment charges of $18 million , of which $7 million , $10 million and $1 million are recorded in SG&A, COGS, and Other, respectively, in its consolidated statement of income. These amounts primarily comprise $10 million relating to the impairment of property, plant and equipment at a port in Poland, in the Agribusiness segment, and a $6 million write-off of various machinery and equipment in Brazil, of which $5 million related to the Sugar and Bioenergy segment, and $1 million to Agribusiness. For the year ended December 31, 2017 Bunge recorded pre-tax impairment charges of $52 million , of which $19 million , $16 million and $17 million are in SG&A, COGS, and Other, respectively, in its consolidated statement of income. These amounts primarily comprise $25 million related to the impairment of property, plant and equipment of feedmills in China, a port in Poland and various machinery and equipment in Brazil, primarily in the Agribusiness segment, $17 million related to the impairment of two investments in affiliates in the Agribusiness and Sugar and Bioenergy segments, and $7 million related to an intangible asset impairment of patents. The fair values of the assets were determined utilizing discounted future expected cash flows, and in the case of equity method investments, net market value based on broker quotes of similar assets. |
INVESTMENTS IN AFFILIATES
INVESTMENTS IN AFFILIATES | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENTS IN AFFILIATES | INVESTMENTS IN AFFILIATES Bunge participates in various unconsolidated joint ventures and other investments accounted for using the equity method. The Company records its interest in the net earnings of its equity method investees, along with the amortization of basis differences, within Other income (expense) - net, in the Consolidated Statements of Income. Basis differences represent differences between the cost of the investment and the underlying equity in net assets of the investment, and are amortized over the lives of the related assets that gave rise to them. At December 31, 2019, the aggregate of all basis differences was a credit of $136 million , primarily associated with BP Bunge Bioenergia. Certain equity method investments at December 31, 2019 are described below. Bunge allocates equity in earnings of affiliates to its reporting segments. Agribusiness Agricola Alvorada S.A. - Bunge has a 37% ownership interest in an agribusiness company in Brazil which complements its grain origination business. Agrofel Grãos e Insumos. - Bunge has a 30% ownership interest in an agricultural inputs reseller in Brazil which complements its soybean origination business. Complejo Agroindustrial Angostura S.A. ("CAIASA") - Bunge has a 33.3% ownership interest in an oilseed processing facility joint venture with Louis Dreyfus Company and Aceitera General Deheza S.A. ("AGD"), in Paraguay. G3 Global Holding GP Inc. - Bunge has a 25% ownership interest in G3 Global Holding GP Inc., a joint venture with Saudi Agricultural and Livestock Investment Company that operates grain facilities in Canada. Navegações Unidas Tapajós S.A. ("Tapajos") - Bunge has a 50% ownership interest in Tapajos, a joint venture with Amaggi Exportaçao E Importaçao to operate inland waterway transportation between the municipalities of Itaituba and Barcarena, Brazil. The Tapajos complex is mainly dedicated to exporting soybeans and grains from Brazil. Terminais do Graneis do Guaruja ("TGG") - Bunge has a 57% ownership interest in TGG, a joint venture with Amaggi International Ltd. to operate a port terminal in Santos, Brazil, for the reception, storage and shipment of solid bulk cargoes. Terminal Fronteira Norte Logística S.A.("TFN") - Bunge has a 50% ownership interest in TFN, a joint venture with Amaggi Exportaçao E Importaçao to operate a port terminal in Barcarena, Brazil. The TFN complex is mainly dedicated to exporting soybeans and corn from Brazil. Terminal 6 S.A. and Terminal 6 Industrial S.A. - Bunge has a joint venture, Terminal 6 S.A., in Argentina with AGD for the operation of a port facility located in the Santa Fe province of Argentina. Bunge is also a party to a second joint venture with AGD, Terminal 6 Industrial S.A., that operates a crushing facility located adjacent to the port facility. Bunge owns 40% and 50% , respectively, of these joint ventures. Vietnam Agribusiness Holdings Ptd. Ltd ("VAH") - Bunge has a 45% ownership in VAH, an oilseed processing facility joint venture with Wilmar International Limited ("Wilmar") and Quang Dung, a leading Vietnamese soybean meal distributor, in Vietnam. Bunge and Wilmar own equal 45% interests in the joint venture and Quang Dung owns the remaining 10% . Sugar and Bioenergy BP Bunge Bioenergia - Bunge has a 50% ownership interest in BP Bunge Bioenergia, a joint venture with BP plc, a leading company in the ethanol, biopower, and sugar market in Brazil. ProMaiz - Bunge has a 50% ownership interest in a corn wet milling facility joint venture with AGD in Argentina for the production of ethanol. Summarized financial information, combined, for all of Bunge's equity method investees is as follows: December 31, (US$ in millions) 2019 2018 Current assets $ 1,809 $ 897 Noncurrent assets 3,822 1,727 Total assets $ 5,631 $ 2,624 Current liabilities $ 1,344 $ 581 Noncurrent liabilities 2,028 839 Total liabilities $ 3,372 $ 1,420 Years ended December 31, (US$ in millions) 2019 2018 2017 Net Sales $ 3,611 $ 3,923 $ 2,953 Gross Profit 359 264 157 Net income 95 61 — |
OTHER NON-CURRENT ASSETS
OTHER NON-CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
Other Assets, Noncurrent [Abstract] | |
OTHER NON-CURRENT ASSETS | OTHER NON-CURRENT ASSETS Other non-current assets consist of the following: December 31, (US$ in millions) 2019 2018 Recoverable taxes, net (1) $ 48 $ 112 Judicial deposits (1) 106 115 Other long-term receivables 6 8 Income taxes receivable (1) 208 221 Long-term investments 83 91 Affiliate loans receivable 29 29 Long-term receivables from farmers in Brazil, net (1) 69 93 Other 129 154 Total $ 678 $ 823 (1) These non-current assets arise primarily from Bunge's Brazilian operations and their realization could take several years. Recoverable taxes, net —Recoverable taxes are reported net of allowances of $41 million and $27 million at December 31, 2019 and 2018 , respectively. Judicial deposits —Judicial deposits are funds that Bunge has placed on deposit with the courts in Brazil. These funds are held in judicial escrow related to certain legal proceedings pending legal resolution and bear interest at the SELIC rate, which is the benchmark rate of the Brazilian central bank. Income taxes receivable —Income taxes receivable includes overpayments of current income taxes plus accrued interest. These income tax prepayments are expected to be utilized to settle 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 more than one year. Long-term receivables from farmers in Brazil, net —Bunge provides financing to farmers in Brazil, primarily through secured advances against farmer commitments to deliver agricultural commodities (primarily soybeans) upon harvest of the then-current year's crop and through credit sales of fertilizer to farmers. Certain such long-term receivables from farmers are originally recorded in Other current assets as prepaid commodity purchase contracts or secured advances to suppliers (see Note 6) and reclassified to Other non-current assets when collection issues with farmers arise and amounts become past due and resolution of matters is expected to take more than one year. The average recorded investment in long-term receivables from farmers in Brazil for the years ended December 31, 2019 and 2018 was $186 million and $215 million , respectively. The table below summarizes Bunge's recorded investment in long-term receivables from farmers in Brazil and the related allowance amounts. December 31, 2019 December 31, 2018 (US$ in millions) Recorded Investment Allowance Recorded Investment Allowance For which an allowance has been provided: Legal collection process (1) $ 95 $ 85 $ 105 $ 89 Renegotiated amounts (2) 11 11 17 17 For which no allowance has been provided: Legal collection process (1) 50 — 51 — Renegotiated amounts (2) 5 — 10 — Other long-term receivables 4 — 16 — Total $ 165 $ 96 $ 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. Year Ended December 31, (US$ in millions) 2019 2018 Beginning balance $ 106 $ 113 Bad debt provisions 6 20 Recoveries (11 ) (8 ) Write-offs (2 ) (2 ) Foreign currency translation (3 ) (17 ) Ending balance $ 96 $ 106 |
OTHER CURRENT LIABILITIES
OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
OTHER CURRENT LIABILITIES | OTHER CURRENT LIABILITIES Other current liabilities consist of the following: December 31, (US$ in millions) 2019 2018 Accrued liabilities $ 602 $ 618 Unrealized losses on derivative contracts at fair value 766 1,192 Advances on sales 411 405 Other 476 287 Total $ 2,255 $ 2,502 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Bunge operates globally and is subject to the tax laws and regulations of numerous tax jurisdictions and authorities, as well as tax agreements and treaties among these jurisdictions. Bunge's income tax provision is impacted by, among other factors, changes in tax laws, regulations, agreements and treaties, currency exchange rates, and Bunge's profitability in each tax jurisdiction. Bunge has elected to use the U.S. federal income tax rate to reconcile the actual provision for income taxes. The components of Income (loss) from continuing operations before income tax are as follows: Year Ended December 31, (US$ in millions) 2019 2018 2017 United States $ (4 ) $ 233 $ 21 Non-United States (1,201 ) 223 209 Total $ (1,205 ) $ 456 $ 230 The components of the Income tax expense (benefit) are: Year Ended December 31, (US$ in millions) 2019 2018 2017 Current: United States $ 32 $ 33 $ 45 Non-United States 78 140 34 110 173 79 Deferred: United States (25 ) 4 20 Non-United States 1 2 (43 ) (24 ) 6 (23 ) Total $ 86 $ 179 $ 56 Reconciliation of the Income tax expense (benefit) if computed at the U.S. Federal income tax rate to Bunge's reported Income tax expense (benefit) is as follows: Year Ended December 31, (US$ in millions) 2019 2018 2017 Income (loss) from continuing operations before income tax $ (1,205 ) $ 456 $ 230 Income tax rate 21 % 21 % 35 % Income tax expense at the U.S. Federal tax rate (253 ) 96 80 Adjustments to derive effective tax rate: Foreign earnings taxed at different statutory rates (66 ) 24 (38 ) Valuation allowances 66 114 43 Fiscal incentives (1) (43 ) (43 ) (42 ) Foreign exchange on monetary items 12 24 (9 ) Tax rate changes (8 ) 4 (62 ) Non-deductible expenses 11 8 27 Uncertain tax positions (29 ) 22 (48 ) Deferred balance adjustments (5 ) — (4 ) Equity distributions, net (7 ) (31 ) — Transition tax (11 ) (15 ) 105 Tax exempt investments — — (14 ) Tax credits (7 ) (5 ) (8 ) Incremental tax on future distributions — (26 ) 27 State taxes 3 8 (4 ) Goodwill impairment - Loders 28 — — Losses on Brazilian sugar and bioenergy contribution to joint venture 379 — — Other 16 (1 ) 3 Income tax (benefit) expense $ 86 $ 179 $ 56 (1) Fiscal incentives predominantly relate to investment incentives in Brazil that are exempt from Brazilian income tax. The primary components of the deferred tax assets and liabilities and the related valuation allowances are as follows: December 31, (US$ in millions) 2019 2018 Deferred income tax assets: Net operating loss carryforwards $ 530 $ 781 Operating lease obligations 239 — Employee benefits 110 116 Tax credit carryforwards 44 12 Inventories 1 — Accrued expenses and other 259 340 Total deferred tax assets 1,183 1,249 Less valuation allowances (404 ) (766 ) Deferred tax assets, net of valuation allowance 779 483 Deferred income tax liabilities: Property, plant and equipment 286 233 Operating lease assets 239 — Undistributed earnings of affiliates 9 6 Investments 13 16 Intangibles 119 100 Inventories — 26 Total deferred tax liabilities 666 381 Net deferred tax assets $ 113 $ 102 As of December 31, 2019, Bunge has determined it has unremitted earnings that are considered to be indefinitely reinvested of approximately $183 million and accordingly, no provision for income taxes has been made. If these earnings were distributed in the form of dividends or otherwise, Bunge would be subject to income taxes in the form of withholding taxes to the recipient for an amount of approximately $37 million . At December 31, 2019, Bunge's pre-tax loss carryforwards totaled $2,011 million , of which $1,488 million have no expiration, including loss carryforwards of $713 million in Brazil. While loss carryforwards in Brazil can be carried forward indefinitely, annual utilization is limited to 30% of taxable income calculated on an entity by entity basis as Brazil tax law does not allow consolidated tax filings. As a result, realization of these carryforwards may take in excess of five years . At December 31, 2018, Bunge’s pre-tax loss carryforwards totaled $2,909 million , of which $2,340 million had no expiration, including loss carryforwards of $1,434 million in Brazil. The decrease in pre-tax loss carryforwards from 2018 to 2019 is primarily attributable to the contribution of the Company’s Brazilian sugar and bioenergy operations to the newly formed BP Bunge Bioenergia joint venture. The remaining tax loss carryforwards expire at various periods beginning in 2020 through the year 2038. Income Tax Valuation Allowances —Bunge records valuation allowances when current evidence does not suggest that some portion or all of its deferred tax assets will be realized. The ultimate realization of deferred tax assets depends primarily on Bunge's ability to generate sufficient timely future income of the appropriate character in the appropriate taxing jurisdiction. As of December 31, 2019 and 2018, Bunge has recorded valuation allowances of $404 million and $766 million , respectively. The net decrease of $362 million is primarily attributable to the contribution of the Company's Brazilian sugar and bioenergy operations to the newly formed BP Bunge Bioenergia joint venture. Unrecognized Tax Benefits —ASC Topic 740 requires applying a "more likely than not" threshold to the recognition and de-recognition of tax benefits. Accordingly, Bunge recognizes the amount of tax benefit that has a greater than 50 percent likelihood of being ultimately realized upon settlement. At December 31, 2019 and 2018, respectively, Bunge had recorded unrecognized tax benefits of $51 million and $120 million in Other non-current liabilities and $2 million and $0 million in Current liabilities in its consolidated balance sheets. During 2019, 2018 and 2017, respectively, Bunge recognized $(11) million , $(4) million and $(9) million of interest and penalty charges in Income tax expense (benefit) in the consolidated statements of income. At December 31, 2019 and 2018, respectively, Bunge had included accrued interest and penalties of $12 million and $23 million within the related tax liability line in the consolidated balance sheets. A reconciliation of the beginning and ending amount of unrecognized tax benefits follows: (US$ in millions) 2019 2018 2017 Balance at January 1, $ 390 $ 421 $ 409 Additions based on tax positions related to the current year 2 41 34 Additions based on tax positions related to prior years 7 21 13 Reductions for tax positions of prior years (27 ) (54 ) (43 ) Settlements with tax authorities (26 ) (1 ) — Expiration of statute of limitations (11 ) (19 ) (32 ) Reductions due to dispositions (19 ) — — Foreign currency translation (5 ) (19 ) 40 Balance at December 31, $ 311 $ 390 $ 421 Bunge believes that it is reasonably possible that approximately $25 million of its unrecognized tax benefits may be recognized by the end of 2021 as a result of a lapse of the statute of limitations or resolution with the tax authorities. Bunge, through its subsidiaries, files income tax returns in the United States (federal and various states) and non-United States jurisdictions. The table below reflects the tax years for which Bunge is subject to income tax examinations by tax authorities: Open Tax Years North America 2014 - 2019 South America 2013 - 2019 Europe 2006 - 2019 Asia-Pacific 2006 - 2019 As of December 31, 2019, Bunge's Brazilian subsidiaries have received income tax and penalty assessments through 2016 of approximately 5,464 million Brazilian reais (approximately $1,356 million ), plus applicable interest on the outstanding amount. Bunge has recorded unrecognized tax benefits related to these assessments of 7 million Brazilian reais (approximately $2 million ) as of December 31, 2019. In addition, as of December 31, 2019, Bunge’s Argentine subsidiary had received income tax assessments relating to 2006 through 2009 of approximately 1,276 million Argentine pesos (approximately $21 million ), plus applicable interest on the outstanding amount of approximately 6,270 million Argentine pesos (approximately $104 million ). Management, in consultation with external legal advisors, believes that it is more likely than not that Bunge will prevail on the proposed assessments (with the exception of unrecognized tax benefits discussed above) in Brazil and Argentina and is vigorously defending its position against these assessments. Bunge made cash income tax payments, net of refunds received, of $123 million , $(1) million and $89 million during the years ended December 31, 2019, 2018, and 2017 respectively. On December 22, 2017, H.R. 1, commonly known as the “Tax Cuts and Jobs Act” (the “Tax Act”) was signed into U.S. law. As a result of the Tax Act and in accordance with SEC Staff Accounting Bulletin 118 (“SAB 118”), Bunge recognized a provisional tax expense of $60 million in the fourth quarter of 2017 related to the one-time transition tax (“Transition Tax”), the revaluation of deferred tax assets and liabilities, and the accrual of incremental withholding taxes on future repatriation of earnings to the United States. In the fourth quarter of 2018, Bunge completed its analysis of the impact of the Tax Act in conjunction with filing of its 2017 U.S. income tax return, assessment of additional documentation to determine the Transition Tax, and analysis of U.S. Treasury guidance on the Tax Act. As a result, Bunge recorded a tax benefit of $26 million , primarily related to the ability to utilize additional foreign tax credits to offset future repatriation of earnings to the United States. Bunge has elected to account for any Global Intangible Low-Taxed Income (“GILTI”) inclusion as a current period expense when incurred. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Bunge's various financial instruments include certain components of working capital such as trade accounts receivable and trade accounts payable. Additionally, Bunge uses short and long-term debt to fund operating requirements. Trade accounts receivable, trade accounts payable, and short-term debt are stated at their carrying value, which is a reasonable estimate of fair value. See Note 4 for trade structured finance program, Note 12 for long-term receivables from farmers in Brazil, net and other long-term investments, Note 1 8 for long-term debt, and Note 20 for employee benefit plans. Bunge's financial instruments also include derivative instruments and marketable securities, which are stated at fair value. For a definition of fair value and the associated fair value levels, refer to Note 1, Nature of Business, Basis of Presentation and Significant Accounting Policies. The following table sets forth, by level, the Company’s assets and liabilities that were accounted for at fair value on a recurring basis. Fair Value Measurements at Reporting Date December 31, 2019 December 31, 2018 (US$ in millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Readily marketable inventories (Note 5) $ — $ 3,703 $ 231 $ 3,934 $ — $ 4,286 $ 246 $ 4,532 Unrealized gain on derivative contracts (1) : Interest rate — 45 — 45 — 6 — 6 Foreign exchange — 331 — 331 — 473 — 473 Commodities 34 481 9 524 128 407 18 553 Freight 10 — — 10 6 — 6 12 Energy 56 — — 56 30 — — 30 Other (2) 47 370 — 417 67 98 — 165 Total assets $ 147 $ 4,930 $ 240 $ 5,317 $ 231 $ 5,270 $ 270 $ 5,771 Liabilities: Trade accounts payable (3) $ — $ 347 $ 31 $ 378 $ — $ 394 $ 47 $ 441 Unrealized loss on derivative contracts (4) : Interest rate — 4 — 4 — 42 — 42 Foreign exchange — 257 — 257 — 499 — 499 Commodities 49 388 31 468 152 446 23 621 Freight 10 — — 10 13 — 6 19 Energy 26 — 2 28 43 — 1 44 Equity — — — — — — — — Total liabilities $ 85 $ 996 $ 64 $ 1,145 $ 208 $ 1,381 $ 77 $ 1,666 (1) Unrealized gains on derivative contracts are generally included in Other current assets. There were $39 million and $3 million included in Other non-current assets at December 31, 2019 and December 31, 2018 , respectively. (2) Other includes the fair values of marketable securities and investments in Other current assets and Other non-current assets. (3) These payables are hybrid financial instruments for which Bunge has elected the fair value option. (4) Unrealized losses on derivative contracts are generally included in Other current liabilities. There were $1 million and $33 million included in Other non-current liabilities at December 31, 2019 and December 31, 2018 , respectively. 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. Marketable securities and investments are comprised of government treasury securities, corporate debt securities and other investments. Bunge analyzes how the prices are derived and determines whether the prices are liquid or less liquid tradable prices. Marketable securities and investments with liquid prices are valued using prices from publicly available sources and classified as level 1. Marketable securities and investments with less-liquid prices are valued using third-party quotes and classified as level 2. 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 years ended December 31, 2019 and 2018 . These instruments were valued using pricing models that management believes reflect the assumptions that would be used by a marketplace participant. Year Ended December 31, 2019 (US$ in millions) Readily Marketable Inventories Derivatives, Net Trade Total Balance, January 1, 2019 $ 246 $ (6 ) $ (47 ) $ 193 Total gains and losses (realized/unrealized) included in Cost of goods sold (1) 310 (24 ) 23 309 Purchases 2,002 — (458 ) 1,544 Sales (2,935 ) — — (2,935 ) Issuances — (1 ) — (1 ) Settlements — 7 462 469 Transfers into Level 3 884 — (32 ) 852 Transfers out of Level 3 (276 ) — 21 (255 ) Balance, December 31, 2019 $ 231 $ (24 ) $ (31 ) $ 176 1) Readily marketable inventories, derivatives, net and trade accounts payable, include gains/(losses) of $214 million , $(25) million and $0 million , respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at December 31, 2019 . Year Ended December 31, 2018 (US$ in millions) Readily Marketable Inventories Derivatives, Net Trade Total Balance, January 1, 2018 $ 365 $ 2 $ (116 ) $ 251 Total gains and losses (realized/unrealized) included in Cost of goods sold (1) 144 (11 ) 26 159 Purchases 1,770 12 (294 ) 1,488 Sales (2,585 ) — — (2,585 ) Issuances — (11 ) — (11 ) Settlements — 13 434 447 Transfers into Level 3 774 (10 ) (79 ) 685 Transfers out of Level 3 (222 ) (1 ) (18 ) (241 ) Balance, December 31, 2018 $ 246 $ (6 ) $ (47 ) $ 193 1) Readily marketable inventories, derivatives, net and trade accounts payable, includes gains/(losses) of $72 million , $(24) million and $0 million , respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at December 31, 2018 . |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 12 Months Ended |
Dec. 31, 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 December 2020 . Of the amount currently in Accumulated other comprehensive income (loss), $5 million is expected to be reclassified to earnings in the next twelve months. Cash flow hedges of commodity risk - The Company manages commodity price risk on certain forecasted purchases and sales with commodity futures. The change in the value of the future is classified in Accumulated other comprehensive income (loss) until the transaction affects earnings, at which time the change in value of the commodity future is reclassified to Net sales or Cost of goods sold. At December 31, 2019, the Company had no open cash flow hedges of commodity risk. Net investment hedges - The Company hedges the currency risk of certain of its foreign subsidiaries with currency forwards and intercompany loans for which the currency risk is remeasured through Accumulated other comprehensive income (loss). For currency forwards, the forward method is used. The change in the value of the forward is classified in Accumulated other comprehensive income (loss) until the transaction affects earnings. The table below provides information about the balance sheet values of hedged items and the notional amount of derivatives used in hedging strategies. The notional amount of the derivative is the number of units of the underlying (for example, the notional principal amount of the debt in an interest rate swap). The notional amount is used to compute interest or other payment streams to be made under the contract and is a measure of the Company’s level of activity. The Company discloses derivative notional amounts on a gross basis. (US$ in millions) December 31, 2019 December 31, 2018 Unit of Hedging instrument type: Fair value hedges of interest rate risk Carrying value of hedged debt $ 2,279 $ 2,229 $ Notional Cumulative adjustment to long-term debt from application of hedge accounting $ 37 $ (29 ) $ Notional Interest rate swap - notional amount $ 2,249 $ 2,266 $ Notional Fair value hedges of currency risk Carrying value of hedged debt $ 281 $ 312 $ Notional Cross currency swap - notional amount $ 281 $ 313 $ Notional Cash flow hedges of currency risk Foreign currency forward - notional amount $ 99 $ 50 $ Notional Foreign currency option - notional amount $ 75 $ — $ Notional Net investment hedges Foreign currency forward - notional amount $ 928 $ 1,888 $ Notional Carrying value of non-derivative hedging instrument $ 895 $ 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 December 31, 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. December 31, December 31, 2019 2018 Unit of Long (Short) Long (Short) Interest rate Swaps $ 4,062 $ (39 ) $ 3,349 $ (111 ) $ Notional FRAs $ 213 $ (418 ) $ 139 $ (149 ) $ Notional Currency Forwards $ 7,164 $ (9,983 ) $ 13,713 $ (13,701 ) $ Notional Swaps $ 191 $ (170 ) $ 127 $ (535 ) $ Notional Futures $ — $ (16 ) $ — $ (16 ) $ Notional Options $ 132 $ (157 ) $ 869 $ (919 ) Delta Agricultural commodities Forwards 27,914,141 (25,321,595 ) 25,523,840 (29,314,930 ) Metric Tons Swaps — (1,114,704 ) — (9,908,728 ) Metric Tons Futures — (1,960,051 ) 4,136,525 — Metric Tons Options — (115,232 ) 718,709 — Metric Tons Ocean freight FFA — (133 ) — (90 ) Hire Days FFA options 42 — 302 — Hire Days Natural gas Swaps 215,640 — 1,205,687 — MMBtus Futures 2,802,500 — 2,268,190 — MMBtus Energy - other Forwards 5,534,290 — 5,536,290 — Metric Tons Futures — — — (29,367 ) Metric Tons Swaps 239,836 — 188,800 — Metric Tons Other Swaps and futures $ 50 $ (14 ) $ 52 $ — $ Notional The Effect of Derivative Instruments and Hedge Accounting on the Consolidated Statements of Income The tables below summarize the net effect of derivative instruments and hedge accounting on the consolidated statements of income for the years ended December 31, 2019 , 2018 and 2017 . Gain (Loss) Recognized in Year Ended December 31, (US$ in millions) 2019 2018 2017 Income statement classification Type of derivative Net sales Hedge accounting Foreign currency $ (3 ) $ (2 ) $ — Cost of goods sold Hedge accounting Foreign currency $ — $ 1 $ — Commodities 20 — — Economic hedges Foreign currency 172 (220 ) (1 ) Commodities (50 ) 506 676 Other (1) 46 (25 ) 9 Total Cost of goods sold $ 188 $ 262 $ 684 Interest expense Hedge accounting Interest rate $ (12 ) $ (6 ) $ 13 Economic hedges Interest rate (10 ) (1 ) — Total Interest expense $ (22 ) $ (7 ) $ 13 Foreign exchange gains (losses) Hedge accounting Foreign currency $ 11 $ (10 ) $ — Economic hedges Foreign currency 33 34 22 Total Foreign exchange gains (losses) $ 44 $ 24 $ 22 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 $ (1 ) $ 1 $ — Gains and losses on derivatives used as cash flow hedges of foreign currency risk included in other comprehensive income (loss) during the period $ 15 $ (2 ) $ 14 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 $ (47 ) $ 48 $ (8 ) Foreign currency gains and losses on intercompany loans used as net investment hedges included in other comprehensive income (loss) during the period $ 17 $ 52 $ (111 ) Amounts released from Accumulated other comprehensive income (loss) during the period Cash flow hedge of foreign currency risk $ (5 ) $ — $ 37 Cash flow hedge of commodity risk $ (20 ) $ — $ — (1) Other includes the results from freight, energy and other derivatives. |
SHORT-TERM DEBT AND CREDIT FACI
SHORT-TERM DEBT AND CREDIT FACILITIES | 12 Months Ended |
Dec. 31, 2019 | |
Short-term Debt [Abstract] | |
SHORT-TERM DEBT AND CREDIT FACILITIES | SHORT-TERM DEBT AND CREDIT FACILITIES Bunge's short-term borrowings are typically sourced from various banking institutions and the U.S. commercial paper market. Bunge also borrows from time to time in local currencies in various foreign jurisdictions. Interest expense includes facility commitment fees, amortization of deferred financing costs, and charges on certain lending transactions. The weighted-average interest rate on short-term borrowings at December 31, 2019 and 2018 was 13.83% and 6.98% , respectively. December 31, (US$ in millions) 2019 2018 Lines of credit: Unsecured, variable interest rates from 2.63% to 60.00% $ 771 $ 750 Total short-term debt (1) $ 771 $ 750 (1) Includes $348 million and $136 million of local currency borrowings in certain Central and Eastern European, South American and Asia-Pacific countries at a weighted average interest rate of 27.16% and 23.61% as of December 31, 2019 and December 31, 2018 , respectively. Bunge's commercial paper program is supported by committed back-up bank credit lines (the ‘‘Liquidity Facility’’) equal to the amount of the commercial paper program provided by lending institutions that are required to be rated at least A-1 by Standard & Poor’s and P-1 by Moody’s Investor Services. The cost of borrowing under the Liquidity Facility would typically be higher than the cost of issuance under our commercial paper program. At December 31, 2019, no borrowings were outstanding under the commercial paper program and no borrowings were outstanding under the Liquidity Facility. The Liquidity Facility is our only revolving credit facility that requires lenders to maintain minimum credit ratings. In addition to the committed facilities discussed above, from time-to-time, Bunge Limited and/or its financing subsidiaries enter into uncommitted bilateral short-term credit lines as necessary based on its financing requirements. At December 31, 2019 and 2018 , there were no borrowings outstanding under these bilateral short-term credit lines. Loans under such credit lines are non-callable by the respective lenders. In addition, Bunge's operating companies had $771 million in short-term borrowings outstanding from local bank lines of credit at December 31, 2019 to support working capital requirements. |
LONG-TERM DEBT AND CREDIT FACIL
LONG-TERM DEBT AND CREDIT FACILITIES | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT AND CREDIT FACILITIES | LONG-TERM DEBT AND CREDIT FACILITIES Long-term debt obligations are summarized below. December 31, (US$ in millions) 2019 2018 Revolving credit facility expiring 2022 (1) $ — $ 500 Term loan due 2019 - fixed Yen interest rate of 0.96% (Tranche B) — 54 Term loan due 2024 - three-month Yen LIBOR plus 0.75% (Tranche A) (2) 281 258 Term loan due 2024 - three-month LIBOR plus 1.30% (Tranche B) (2) 89 85 3.50% Senior Notes due 2020 499 498 3.00% Senior Notes due 2022 398 397 1.85% Senior Notes due 2023—Euro 899 916 4.35% Senior Notes due 2024 596 595 3.25% Senior Notes due 2026 696 695 3.75% Senior Notes due 2027 595 594 Other 170 30 Subtotal 4,223 4,622 Less: Current portion of long-term debt (507 ) (419 ) Total long-term debt (3) $ 3,716 $ 4,203 (1) On December 16, 2019, Bunge extended the existing three -year revolving credit facility totaling $1.75 billion , scheduled to mature on December 12, 2020, for two additional years, to December 12, 2022. (2) On July 1, 2019, Bunge refinanced its unsecured Japanese yen 28.5 billion and $85 million Term Loan Agreement, dated as of December 12, 2014, which extends the maturity date to July 1, 2024. (3) Includes secured debt of $15 million and $17 million at December 31, 2019 and December 31, 2018 , respectively. The fair values of long-term debt, including current portion are calculated based on interest rates currently available on comparable maturities to companies with credit standing similar to that of Bunge. The carrying amounts and fair values of long-term debt are as follows: December 31, 2019 December 31, 2018 (US$ in millions) Carrying Value Fair Value (Level 2) Carrying Value Fair Value (Level 2) Long-term debt, including current portion $ 4,223 $ 4,319 $ 4,622 $ 4,584 On December 16, 2019, Bunge entered into an amendment and restatement agreement (the “Amendment and Restatement Agreement”) which amends and extends its unsecured $1.75 billion revolving credit facility entered into on December 12, 2017 (as amended by the Amendment and Restatement Agreement, the “Revolving Credit Facility”), adding a sustainability-linked mechanism to the facility. Through the sustainability-linked mechanism, the interest rate under the Revolving Credit Facility is tied to five sustainability performance targets that highlight and measure Bunge’s continued advancement of its sustainability initiatives across the following three areas: 1) reducing greenhouse gas emissions by improving industrial efficiency; 2) increasing traceability for main agricultural commodities; and 3) supporting increasing levels of adoption of sustainable practices across the wider soybean and palm supply chain. Bunge may from time to time, with the consent of the agent, request one or more of the existing lenders or new lenders to increase the total commitments in an amount not to exceed $250 million pursuant to an accordion provision set forth in the Revolving Credit Facility. Pursuant to the Amendment and Restatement Agreement, the Revolving Credit Facility will mature on December 12, 2022. Borrowings under the Revolving Credit Facility will bear interest at LIBOR plus a margin, which will vary from 0.30% to 1.30% , based on the senior long-term unsecured debt ratings provided by Moody’s Investors Services Inc. and S&P Global Ratings. Amounts under the Revolving Credit Facility that remain undrawn are subject to a commitment fee payable quarterly in arrears at a rate of 35% of the margin specified above, which will vary based on the rating level at each such quarterly payment date. Bunge also will pay a fee that will vary from 0.10% to 0.40% based on its utilization of the Revolving Credit Facility. There were no borrowings outstanding at December 31, 2019, under the Revolving Credit Facility. In November 2019, the $700 million credit facility maturing in May 2023 was converted into a term loan and then transferred to the recently formed joint venture, BP Bunge Bioenergia, on a non-recourse basis. At December 31, 2019 , Bunge had $4,315 million of unused and available borrowing capacity under its committed long-term credit facilities with a number of lending institutions. Certain property, plant and equipment and investments in consolidated subsidiaries having a net carrying value of approximately $45 million at December 31, 2019 have been mortgaged or otherwise collateralized against long-term debt of $16 million at December 31, 2019 . Principal Maturities —Principal maturities of long-term debt at December 31, 2019 are as follows: (US$ in millions) 2020 $ 512 2021 13 2022 505 2023 903 2024 968 Thereafter 1,303 Total (1) $ 4,204 (1) Excludes components of long-term debt attributable to fair value hedge accounting of $37 million and deferred financing fees and unamortized premiums of $18 million . Bunge's credit facilities and certain senior notes require it to comply with specified financial covenants related to minimum net worth, minimum current ratio, a maximum debt to capitalization ratio, and limitations on secured indebtedness. Bunge was in compliance with these covenants at December 31, 2019 . During the years ended December 31, 2019 , 2018 and 2017 , Bunge paid interest, net of interest capitalized, of $327 million , $306 million and $236 million , respectively. |
TRADE RECEIVABLES SECURITIZATIO
TRADE RECEIVABLES SECURITIZATION PROGRAM | 12 Months Ended |
Dec. 31, 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 (collectively, the "Purchasers") that provides for funding of up to $800 million against receivables sold into the Program. The Program is designed to enhance Bunge's financial flexibility by providing an additional source of liquidity for its operations. In connection with the Program, certain of Bunge's U.S. and non-U.S. subsidiaries that originate trade receivables may sell eligible receivables in their entirety on a revolving basis to a consolidated bankruptcy remote special purpose entity, Bunge Securitization B.V. ("BSBV") formed under the laws of the Netherlands. BSBV in turn sells such purchased trade receivables to the administrative agent (acting on behalf of the Purchasers) pursuant to a receivables transfer agreement. In connection with these sales of accounts receivable, Bunge receives a portion of the proceeds up front and an additional amount upon the collection of the underlying receivables, which is expected to be generally between 10% and 15% of the aggregate amount of receivables sold through the Program. Koninklijke Bunge B.V., a wholly owned subsidiary of Bunge, acts as master servicer, responsible for servicing and collecting the accounts receivable for the Program. The Program terminates on May 26, 2021 . The trade receivables sold under the program are subject to specified eligibility criteria, including eligible currencies, and country and obligor concentration limits. On February 19, 2019, Bunge exercised a portion of the $300 million accordion feature under this program to increase the aggregate size of the facility by $100 million to an aggregate of $800 million . December 31, (US$ in millions) 2019 2018 Receivables sold which were derecognized from Bunge's balance sheet $ 801 $ 826 Deferred purchase price included in Other current assets $ 105 $ 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. Years Ended December 31, (US$ in millions) 2019 2018 2017 Gross receivables sold $ 10,120 $ 9,803 $ 10,022 Proceeds received in cash related to transfer of receivables $ 9,868 $ 9,484 $ 9,734 Cash collections from customers on receivables previously sold $ 8,434 $ 9,173 $ 9,659 Discounts related to gross receivables sold included in SG&A $ 15 $ 14 $ 9 Non-cash activity for the program in the reporting period is represented by the difference between gross receivables sold and cash collections from customers on receivables previously sold. Bunge's risk of loss following the sale of the trade receivables is limited to the deferred purchase price (the "DPP"), included in Other current assets in the consolidated balance sheets (see Note 6). The DPP will be repaid in cash as receivables are collected, generally within 30 days . Delinquencies and credit losses on trade receivables sold under the Program during the years ended December 31, 2019 , 2018 and 2017 were insignificant. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Certain United States, Canadian, European, Asian and Brazilian-based subsidiaries of Bunge sponsor defined benefit pension plans covering substantially all employees of the subsidiaries. The plans provide benefits primarily based on participant salaries and lengths of service. The funding policies for Bunge's defined benefit pension plans are determined in accordance with statutory funding requirements. The most significant defined benefit plan is in the United States. Certain United States and Brazilian-based subsidiaries of Bunge have benefit plans to provide postretirement healthcare benefits to eligible retired employees of those subsidiaries. The plans require minimum retiree contributions and define the maximum amount the subsidiaries will be obligated to pay under the plans. Bunge's policy is to fund these costs as they become payable. Plan amendments and pension liability adjustment - In 2018 , Bunge's Swiss defined benefit pension plan changed its local pension provider, resulting in a change to its conversion rate. This plan amendment resulted in a $13 million increase in benefit obligation as of the year ended December 31, 2018 . On September 19, 2017, Bunge approved changes to certain U.S. defined benefit pension plans. These changes freeze the plans for future benefit accruals effective January 1, 2023, and these plans are closed for participation for employees hired on or after January 1, 2018. As a result, Bunge remeasured the projected benefit obligations for these plans as of September 30, 2017 and recognized a $31 million pension curtailment gain and $18 million remeasurement loss, recorded in Other comprehensive income, at September 30, 2017. In addition, in 2017, the Company offered a voluntary early retirement program to qualifying U.S. based salaried employees. The employees that accepted the offer received an enhanced retirement benefit in the defined benefit pension plans. The Company incurred $10 million of additional defined benefit expenses relating to the program as of December 31, 2017, which are reflected in the tables below. Cost of Benefit Plans - Service cost is recognized in a period determined as the actuarial present value of benefits attributed by the pension benefit formula to services rendered by employees during that period. Interest cost is the amount recognized in a period determined as the increase in the projected benefit obligation due to the passage of time. The expected return on plan assets is determined based on the expected long-term rate of return on plan assets and the market-related value of plan assets. Amortization of net loss represents the recognition in net periodic cost over several periods of amounts previously recognized in Other comprehensive income (loss). Service cost is included in the same income statement line item as other compensation costs arising from services rendered during the period, while the other components of net periodic benefit pension cost are presented separately in Other income (expense), net. The components of net periodic benefit costs for defined benefit pension plans and postretirement benefit plans are as follows: Pension Benefits December 31, Postretirement Benefits December 31, (US$ in millions) 2019 2018 2017 2019 2018 2017 Service cost $ 38 $ 39 $ 33 $ — $ — $ — Interest cost 43 40 36 5 5 8 Expected return on plan assets (47 ) (57 ) (46 ) — — — Amortization of prior service cost 2 1 — — — — Amortization of net loss 9 9 10 — — — Curtailment (gain) loss 2 (2 ) — — — — Settlement loss recognized — 4 — — — — Special termination benefit 1 — 9 — — — Net periodic benefit costs $ 48 $ 34 $ 42 $ 5 $ 5 $ 8 Assumptions used in Pension Calculations - At December 31, 2019 , a 7.2% annual rate of increase in the per capita cost of covered healthcare benefits was assumed for 2019 postretirement benefit plan measurement purposes, decreasing to 6.9% by 2038, and remaining at that level thereafter. At December 31, 2018 , a 7.7% annual rate of increase in the per capita cost of covered healthcare benefits was assumed for 2018 postretirement benefit plan measurement purposes, decreasing to 7.4% by 2038, and remaining at that level thereafter. A one-percentage point change in assumed healthcare cost trend rates would have the following effects: (US$ in millions) One-percentage point increase One-percentage point decrease Effect on total service and interest cost $ — $ — Effect on postretirement benefit obligation $ 5 $ (4 ) The weighted-average actuarial assumptions used in determining the benefit obligation under the defined benefit pension and postretirement benefit plans are as follows: Pension Benefits December 31, Postretirement Benefits December 31, 2019 2018 2019 2018 Discount rate 2.8 % 3.7 % 6.1 % 8.3 % Increase in future compensation levels 3.2 % 3.2 % N/A N/A The weighted-average actuarial assumptions used in determining the net periodic benefit cost under the defined benefit pension and postretirement benefit plans are as follows: Pension Benefits December 31, Postretirement Benefits December 31, 2019 2018 2017 2019 2018 2017 Discount rate 3.7 % 3.4 % 4.0 % 8.3 % 9.0 % 10.8 % Expected long-term rate of return on assets 5.1 % 6.0 % 6.2 % N/A N/A N/A Increase in future compensation levels 3.2 % 3.2 % 3.2 % N/A N/A N/A The sponsoring subsidiaries select the expected long-term rate of return on assets in consultation with their investment advisors and actuaries. These rates are intended to reflect the average rates of earnings expected on the funds invested or to be invested to provide required plan benefits. The plans are assumed to continue in effect as long as assets are expected to be invested. In estimating the expected long-term rate of return on assets, appropriate consideration is given to historical performance for the major asset classes held, or anticipated to be held, by the applicable plan trusts and to current forecasts of future rates of return for those asset classes. Cash flows and expenses are taken into consideration to the extent that the expected returns would be affected by them. As assets are generally held in qualified trusts, anticipated returns are not reduced for taxes. Plan Transfers In and Out - As a result of the March 1, 2018 Loders acquisition, there was a transfer into Bunge's defined benefit pension plan resulting in a $211 million increase in benefit obligation and $181 million increase in the fair value of plan assets during the year ended December 31, 2018 . There were no significant transfers into or out of Bunge's employee benefit plans during the year ended December 31, 2019 . For the year ended December 31, 2018 , there were settlements to Bunge's Swiss defined benefit pension plan as a result of the GCP, resulting in a $28 million decrease in benefit obligation, and a change to a defined contribution plan, resulting in a $27 million decrease in benefit obligation. There were no significant settlements in Bunge's employee benefit plans during the year ended December 31, 2019 . Pension Benefit Obligations and Funded Status - The following table sets forth in aggregate the changes in the defined benefit pension and postretirement benefit plans' benefit obligations, assets and funded status at December 31, 2019 and 2018 . A measurement date of December 31 was used for all plans. Pension Benefits December 31, Postretirement Benefits December 31, (US$ in millions) 2019 2018 2019 2018 Change in benefit obligations: Benefit obligation at the beginning of year $ 1,192 $ 1,073 $ 59 $ 67 Service cost 38 39 — — Interest cost 43 40 5 5 Plan amendments (3 ) 16 — — Plan curtailments (5 ) (2 ) — — Special termination benefits 1 — — — Actuarial (gain) loss, net 172 (84 ) 1 1 Employee contributions 3 3 1 1 Net transfers in (out) — 213 — — Plan settlements (2 ) (55 ) — — Benefits paid (49 ) (40 ) (8 ) (7 ) Expenses paid (2 ) (3 ) — — Impact of foreign exchange rates — (8 ) (2 ) (8 ) Benefit obligation at the end of year $ 1,388 $ 1,192 $ 56 $ 59 Change in plan assets: Fair value of plan assets at the beginning of year $ 957 $ 896 $ — $ — Actual return on plan assets 181 (36 ) — — Employer contributions 25 18 7 6 Employee contributions 3 3 1 1 Net transfers in (out) — 181 — — Plan settlements (2 ) (55 ) — — Benefits paid (49 ) (40 ) (8 ) (7 ) Expenses paid (2 ) (3 ) — — Impact of foreign exchange rates 1 (7 ) — — Fair value of plan assets at the end of year $ 1,114 $ 957 $ — $ — Funded (unfunded) status and net amounts recognized: Plan assets (less than) in excess of benefit obligation $ (274 ) $ (235 ) $ (56 ) $ (59 ) Net (liability) asset recognized in the balance sheet $ (274 ) $ (235 ) $ (56 ) $ (59 ) Amounts recognized in the balance sheet consist of: Non-current assets $ 14 $ 11 $ — $ — Current liabilities (6 ) (6 ) (5 ) (6 ) Non-current liabilities (282 ) (240 ) (51 ) (53 ) Net liability recognized $ (274 ) $ (235 ) $ (56 ) $ (59 ) Included in Accumulated other comprehensive income (loss) for pension benefits at December 31, 2019 are the following amounts that have not yet been recognized in net periodic benefit costs: unrecognized prior service loss of $4 million ( $3 million , net of tax) and unrecognized actuarial loss of $213 million ( $157 million , net of tax). Included in Accumulated other comprehensive income (loss) for postretirement healthcare benefits at December 31, 2019 is the following amount that has not yet been recognized in net periodic benefit costs: unrecognized actuarial loss of $4 million ( $3 million , net of tax). Bunge has aggregated certain defined benefit pension plans for which the projected benefit obligations exceeds the fair value of related plan assets with pension plans for which the fair value of plan assets exceeds related projected benefit obligations. The following table provides aggregated information about pension plants with a projected benefit obligation in excess of plan assets: Pension Benefits December 31, (US$ in millions) 2019 2018 Projected benefit obligation $ 1,252 $ 1,073 Fair value of plan assets $ 965 $ 827 The accumulated benefit obligation for the defined pension benefit plans was $1,304 million and $1,122 million at December 31, 2019 and 2018, respectively. The following table summarizes information related to aggregated defined benefit pension plans with an accumulated benefit obligation in excess of plan assets: Pension Benefits December 31, (US$ in millions) 2019 2018 Projected benefit obligation $ 1,252 $ 978 Accumulated benefit obligation $ 1,171 $ 938 Fair value of plan assets $ 964 $ 758 Pension Benefit Plan Assets —The objectives of the plans' trust funds are to sufficiently diversify plan assets to maintain a reasonable level of risk without imprudently sacrificing returns, with a target asset allocation of approximately 60% fixed income securities and approximately 40% equities. Bunge implements its investment strategy through a combination of indexed mutual funds and a proprietary portfolio of fixed income securities. Bunge's policy is not to invest plan assets in Bunge Limited shares. Plan investments are stated at fair value. For a further definition of fair value and the associated fair value levels, refer to Note 15 . The fair values of Bunge's defined benefit pension plans' assets at the measurement date, by category, are as follows: December 31, 2019 (US$ in millions) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash $ 12 $ 12 $ — $ — Equities: Mutual funds (1) 449 449 — — Fixed income securities: Mutual funds (2) 581 547 34 — Others (3) 72 29 31 12 Total $ 1,114 $ 1,037 $ 65 $ 12 December 31, 2018 (US$ in millions) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash $ 16 $ 16 $ — $ — Equities: Mutual funds (1) 363 362 1 — Fixed income securities: Mutual funds (2) 536 498 38 — Others (3) 42 6 20 16 Total $ 957 $ 882 $ 59 $ 16 (1) This category represents a portfolio of equity investments comprised of equity index funds that invest in U.S. equities and non-U.S. equities. The U.S. equities are comprised of investments focusing on large, mid and small cap companies and non-U.S. equities are comprised of international, emerging markets, and real estate investment trusts. (2) This category represents a portfolio of fixed income investments in mutual funds comprised of investment grade U.S. government bonds and notes, foreign government bonds, and corporate bonds from diverse industries. (3) This category represents a portfolio consisting of a mixture of hedge funds, bonds, real estate and insurance contracts. Bunge expects to contribute $19 million and $5 million to its defined benefit pension and postretirement benefit plans, respectively, in 2020 . The following benefit payments, which reflect future service as appropriate, are expected to be paid related to defined benefit pension and postretirement benefit plans: (US$ in millions) Pension Benefit Payments Postretirement Benefit Payments 2020 $ 62 $ 5 2021 52 5 2022 53 5 2023 55 5 2024 58 5 2025 and onwards 309 23 Employee Defined Contribution Plans —Bunge also makes contributions to qualified defined contribution plans for eligible employees. Contributions to these plans amounted to $16 million , $10 million and $11 million during the years ended December 31, 2019 , 2018 and 2017 , respectively. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Bunge annually purchases agricultural commodity products from certain of its unconsolidated investees and other related parties. Such related party purchases comprised between 2% and 5% of total Cost of goods sold in each of the years ended December 31, 2019, 2018 and 2017. Bunge also sells agricultural commodity products to certain of its unconsolidated investees and other related parties. Such related party sales comprised between 1% and 2% of total Net sales in each of the years ended December 31, 2019, 2018 and 2017. In addition, Bunge receives services from and provides services to its unconsolidated investees, including tolling, port handling, administrative support, and other services. During the years ended December 31, 2019, 2018 and 2017, such services were not material to our consolidated results. At December 31, 2019 and 2018, receivables and payables related to the above related party transactions, and included in Trade accounts receivable and Trade accounts payable, respectively, in the consolidated balance sheets were not material. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 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 consolidated balance sheets. Included in Other non-current liabilities at December 31, 2019 and 2018 are the following amounts related to these matters: December 31, (US$ in millions) 2019 2018 Non-income tax claims $ 23 $ 94 Labor claims 50 78 Civil and other claims 88 95 Total $ 161 $ 267 Brazil Indirect Taxes Non-income tax claims - These tax claims relate 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 different 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 at CONFAZ. The states have validated their incentives in accordance with this legislation. Considering that Bunge has not received any tax assessment from the states that granted these incentives or benefits related to their validity and, based on Bunge's evaluation of this matter as required by U.S. GAAP, no liability has been recorded in the consolidated financial statements. On February 13, 2015, Brazil’s Supreme Federal Court ruled in a leading case that certain state ICMS tax credits for staple foods (including soy oil, margarine, mayonnaise and wheat flours) are unconstitutional. Bunge, like other companies in the Brazilian food industry, is involved in several administrative and judicial disputes with Brazilian states regarding these tax credits. While the leading case does not involve Bunge the leading case decision will be a precedent and should be applicable to Bunge and other companies. Based on management’s review 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 October 2019, Bunge resolved outstanding liabilities in the Brazilian state of Rio Grande do Sul. Bunge paid 110 million Brazilian reais (approximately $27 million ) in December 2019 and will pay another 58 million Brazilian reais (approximately $14 million ) in 2020 or 2021. As of December 31, 2019 , the Brazilian federal and state authorities have concluded examinations of the ICMS and PIS COFINS tax returns and have issued outstanding claims (plus applicable interest and penalties) of the following amounts: December 31, (US$ in millions) Years Examined 2019 2018 ICMS 1990 to Present $ 221 $ 264 PIS/COFINS 2004 through 2016 $ 268 $ 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, Bunge 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 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 challenged these actions in the Argentine courts and in December 2019 the Federal Chamber of Córdoba ruled in favor of Bunge and reinstated Bunge into the registry. Labor claims — The labor claims are principally claims against Bunge’s Brazilian subsidiaries. The labor claims primarily relate to dismissals, severance, health and safety, salary adjustments and supplementary retirement benefits. Civil and other claims — The civil and other claims relate to various disputes with third parties, including suppliers and customers. During the first quarter of 2017, Bunge received a notice from the Brazilian Administrative Council for Economic Defense ("CADE") initiating an administrative proceeding against its Brazilian subsidiary and two of its employees, certain of its former employees, several other companies in the Brazilian wheat milling industry, and others for alleged anticompetitive activities in the north and northeast of Brazil. Additionally, in the second quarter of 2018, Bunge received a notification from CADE that it has extended the scope of an existing administrative proceeding relating to alleged anticompetitive practices in the Rio Grande port in Brazil to include certain of Bunge's Brazilian subsidiaries and certain former employees of those subsidiaries. Bunge is defending against these actions; however, the proceedings are at an early stage and Bunge cannot, at this time, reasonably predict the ultimate outcome of the proceedings or sanctions, if any, which may be imposed. Guarantees —Bunge has issued or was a party to the following guarantees at December 31, 2019 : (US$ in millions) Maximum Potential Future Payments Unconsolidated affiliates guarantee (1)(2) $ 300 Residual value guarantee (3) 254 Total $ 554 (1) Bunge has issued guarantees to certain financial institutions related to debt of certain of its unconsolidated affiliates. The terms of the guarantees are equal to the terms of the related financings which have maturity dates through 2034 . There are no recourse provisions or collateral that would enable Bunge to recover any amounts paid under these guarantees. In addition, a Bunge subsidiary has guaranteed the obligations of two of its affiliates and in connection therewith has secured its guarantee obligations through a pledge of one of its affiliate's shares plus loans receivable from the affiliate to the financial institutions in the event that the guaranteed obligations are enforced. Based on the amounts drawn under such debt facilities at December 31, 2019 , Bunge's potential liability was $168 million , and it has recorded a $16 million obligation related to these guarantees. (2) Bunge has issued guarantees to certain third parties related to the performance of its unconsolidated affiliates. The terms of the guarantees are equal to the completion date of a port terminal which is expected to be completed in 2020 . There are no recourse provisions or collateral that would enable Bunge to recover any amounts paid under these guarantees. At December 31, 2019 , Bunge's maximum potential future payments under these performance guarantees was $46 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 2020 through 2026 . At December 31, 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. Bunge Limited has provided a guaranty to the Director of the Illinois Department of Agriculture as Trustee for Bunge North America, Inc. ("BNA"), an indirect wholly-owned subsidiary, which guarantees all amounts due and owing by BNA, to grain producers and/or depositors in the State of Illinois who have delivered commodities to BNA's Illinois facilities. In addition, Bunge Limited has provided full and unconditional parent level guarantees of the outstanding indebtedness under certain credit facilities entered into, and senior notes issued by its 100% owned subsidiaries. At December 31, 2019 , Bunge's consolidated balance sheet includes debt with a carrying amount of $4,688 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. Commitments —At December 31, 2019, Bunge had approximately $705 million of purchase commitments related to inventories, $190 million of freight supply agreements, not accounted for as leases, $42 million of power supply contracts, $39 million of contractual commitments related to construction in progress, and $89 million other purchase commitments and obligations, such as take-or-pay contracts, throughput contracts, and debt commitment fees. |
REDEEMABLE NONCONTROLLING INTER
REDEEMABLE NONCONTROLLING INTERESTS | 12 Months Ended |
Dec. 31, 2019 | |
Redeemable Noncontrolling Interest, Equity, Carrying Amount [Abstract] | |
REDEEMABLE NONCONTROLLING INTERESTS | REDEEMABLE NONCONTROLLING INTERESTS In connection with the acquisition of a 70% ownership interest in Loders, the Company has entered into a put/call arrangement with the Loders' minority shareholder and may be required or elect to purchase the additional 30% ownership interest in Loders within a specified time frame. The Company classifies these redeemable equity securities outside of permanent stockholders’ equity as the equity securities are redeemable at the option of the holder. The carrying amount of redeemable noncontrolling interests is the greater of: (i) the initial carrying amount, increased or decreased for the noncontrolling interests’ share of net income or loss, equity capital contributions and distributions or (ii) the redemption value. Any resulting increases in the redemption amount, in excess of the initial carrying amount, increased or decreased for the noncontrolling interests’ share of net income or loss, equity capital contributions and distributions, are affected by corresponding charges against Retained earnings. Additionally, any such charges to Retained earnings will affect Net income (loss) available to Bunge common shareholders as part of Bunge's calculation of earnings per common share. |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
EQUITY | EQUITY Share Repurchase Program —In May 2015, Bunge established a program for the repurchase of up to $500 million of Bunge's issued and outstanding common shares. The program has no expiration date. Bunge did not repurchase any common shares during the year ended December 31, 2019 . Total repurchases under the program from its inception in May 2015 through December 31, 2019 were 4,707,440 shares for $300 million . Cumulative Convertible Perpetual Preference Shares —Bunge has 6,899,683 , 4.875% cumulative convertible perpetual preference shares (convertible preference shares), par value $0.01 outstanding at December 31, 2019 . Each convertible preference share has an initial liquidation preference of $100 per share plus accumulated unpaid dividends up to a maximum of an additional $25 per share. As a result of adjustments made to the initial conversion price because cash dividends paid on Bunge Limited's common shares exceeded certain specified thresholds, each convertible preference share is convertible at any time at the holder's option into approximately 1.2224 common shares based on a conversion price of $81.8087 per convertible preference share, subject in each case to certain specified anti-dilution adjustments (which represents 8,434,172 Bunge Limited common shares at December 31, 2019 ). If the closing market price of Bunge's common shares equals or exceeds 130% of the conversion price of the convertible preference shares, for 20 trading days within any period of 30 consecutive trading days (including the last trading day of such period), Bunge may elect to cause all outstanding convertible preference shares to be automatically converted into the number of common shares that are issuable at the conversion price. The convertible preference shares are not redeemable by Bunge at any time. The convertible preference shares accrue dividends at an annual rate of 4.875% . Dividends are cumulative from the date of issuance and are payable, quarterly in arrears, on each March 1, June 1, September 1 and December 1, when, as and if declared by Bunge's Board of Directors. The dividends may be paid in cash, common shares or a combination thereof. Accumulated but unpaid dividends on the convertible preference shares will not bear interest. In each of the years ended December 31, 2019 , 2018 and 2017 , Bunge recorded $34 million of dividends, paid in cash, on its convertible preference shares. Pension liability adjustment - On September 19, 2017 , Bunge approved changes to certain U.S. defined benefit pension plans (“Plans”). The changes were announced on September 26, 2017 to all U.S. employees of Bunge. These changes froze the Plans for future benefit accruals effective January 1, 2023 , and these Plans are closed for participation for employees hired on or after January 1, 2018 . As a result, Bunge remeasured the projected benefit obligations associated with the Plans as of September 30, 2017 and recognized a $31 million pension curtailment gain and $18 million remeasurement loss in Other comprehensive income (loss). Accumulated Other Comprehensive Income (Loss) Attributable to Bunge —The following table summarizes the balances of related after-tax components of Accumulated other comprehensive income (loss) attributable to Bunge: (US$ in millions) Foreign Exchange Translation Adjustment (1) Deferred Gains (Losses) on Hedging Activities Pension and Other Postretirement Liability Adjustments Unrealized Gains (Losses) on Investments Accumulated Other Comprehensive Income (Loss) Balance January 1, 2017 $ (5,734 ) $ (102 ) (145 ) 3 (5,978 ) Other comprehensive income (loss) before reclassifications 187 (105 ) 5 2 89 Amount reclassified from accumulated other comprehensive income — (37 ) — (4 ) (41 ) Net-current period other comprehensive income (loss) 187 (142 ) 5 (2 ) 48 Balance, December 31, 2017 (5,547 ) $ (244 ) (140 ) 1 (5,930 ) Other comprehensive income (loss) before reclassifications (1,119 ) 99 (16 ) — (1,036 ) Amount reclassified from accumulated other comprehensive income (loss) 29 — 3 (1 ) 31 Net-current period other comprehensive income (loss) (1,090 ) 99 (13 ) (1 ) (1,005 ) Balance, December 31, 2018 (6,637 ) $ (145 ) (153 ) — (6,935 ) Other comprehensive income (loss) before reclassifications (119 ) 1 (24 ) — (142 ) Amount reclassified from accumulated other comprehensive income (loss) 1,493 (26 ) (14 ) — 1,453 Net-current period other comprehensive income (loss) 1,374 (25 ) (38 ) — 1,311 Balance, December 31, 2019 $ (5,263 ) $ (170 ) $ (191 ) $ — $ (5,624 ) (1) Bunge has significant operating subsidiaries in Brazil, Argentina, North America, Europe and Asia-Pacific. The functional currency of Bunge's subsidiaries is generally the local currency. During the second quarter of 2018 , it was determined that Argentina's economy should be considered highly inflationary, and as such, beginning on July 1, 2018 , Bunge's Argentine subsidiaries changed their functional currency from the Argentine peso |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 12 Months Ended |
Dec. 31, 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: Year Ended December 31, (US$ in millions, except for share data) 2019 2018 2017 Income (loss) from continuing operations $ (1,291 ) $ 277 $ 174 Net (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests 11 (20 ) (14 ) Income (loss) from continuing operations attributable to Bunge (1,280 ) 257 160 Convertible preference share dividends (34 ) (34 ) (34 ) Adjustment of redeemable noncontrolling interest (1) (8 ) — — Income (loss) from discontinued operations, net of tax — 10 — Net income (loss) available to Bunge common shareholders - Basic and diluted $ (1,322 ) $ 233 $ 126 Weighted-average number of common shares outstanding: Basic 141,492,289 140,968,980 140,365,549 Effect of dilutive shares: —stock options and awards (2) — 734,803 899,528 —convertible preference shares (3) — — — Diluted 141,492,289 141,703,783 141,265,077 Basic earnings (loss) per common share: Net income (loss) from continuing operations $ (9.34 ) $ 1.58 $ 0.90 Net income (loss) from discontinued operations — 0.07 — Net income (loss) attributable to Bunge common shareholders—basic $ (9.34 ) $ 1.65 $ 0.90 Diluted earnings (loss) per common share: Net income (loss) from continuing operations $ (9.34 ) $ 1.57 $ 0.89 Net income (loss) from discontinued operations — 0.07 — Net income (loss) attributable to Bunge common shareholders—diluted $ (9.34 ) $ 1.64 $ 0.89 (1) The redemption value adjustment of the Company's redeemable noncontrolling interest is deducted from income (loss) as discussed further in Note 23 . Redeemable Noncontrolling Interests. (2) The weighted-average common shares outstanding-diluted excludes approximately 7 million , 4 million and 4 million stock options and contingently issuable restricted stock units, which were not dilutive and not included in the computation of earnings per share for the years ended December 31, 2019 , 2018 and 2017 , respectively. (3) Weighted-average common shares outstanding-diluted for the year ended December 31, 2019 , 2018 and 2017 excludes approximately 8 million weighted-average common shares that are issuable upon conversion of the convertible preference shares that were not dilutive and not included in the weighted-average number of common shares outstanding, respectively. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION For the years ended December 31, 2019 , 2018 and 2017 , Bunge recognized approximately $39 million , $46 million and $29 million , respectively, of total compensation expense for awards classified as equity awards related to its stock option and restricted stock unit awards. In 2019 , 2018 and 2017 , Bunge granted equity awards under the 2016 Equity Incentive Plan (the "2016 EIP"), a shareholder approved plan. Under the 2016 EIP, the Compensation Committee of Bunge's Board of Directors may grant equity based awards to officers, employees, consultants and independent contractors in the form of stock options, restricted stock units (performance based or time-vested) or other equity based awards. The 2016 EIP replaced the 2009 Equity Incentive Plan (the "2009 EIP"), also a shareholder approved plan, under which, beginning May 26, 2016, no further awards may be granted. Shares issued under the 2016 EIP may consist, in whole or in part, of authorized and unissued shares, treasury shares or shares reacquired by the Company in any manner, or a combination thereof. Stock Option Awards—Options to purchase Bunge Limited common shares are granted with an exercise price equal to the grant date fair market value of Bunge common stock, vest over service periods that generally range from one to three years , and expire 10 years from the date of grant. Vesting may be accelerated in certain circumstances as provided in the plans or associated award agreements. Grant date fair value is recognized as compensation expense on a straight-line basis for option grants. Restricted Stock Units—Restricted stock units ("RSUs") give recipients the right to receive shares of Bunge common stock upon the lapse of related restrictions determined by the Compensation Committee. Restrictions on RSUs may be based on continued service by the recipient through the designated term and/or based on the achievement of certain performance targets. These targets may be financial or market-based, and the number of units actually earned varies based on the level of achievement of predefined goals. Compensation expense is recognized on a straight-line basis over the vesting period for restricted stock units. RSUs generally vest over periods ranging from one to three years . Vesting may be accelerated under certain circumstances as defined in the plans or associated award agreements. RSUs are generally settled in shares of Bunge common stock upon satisfaction of the applicable vesting terms. Where share settlement may be prohibited under local law, RSUs are settled in cash. At the time of settlement, a participant holding a vested restricted stock unit will also be entitled to receive corresponding accrued dividend equivalent share payments. Bunge has also established the Bunge Limited 2017 Non-Employee Directors' Equity Incentive Plan (the "2017 Directors' Plan"), a shareholder approved plan. Under the 2017 Directors' Plan, the Compensation Committee may grant equity based awards to non-employee directors of Bunge Limited. Awards may consist of restricted stock, restricted stock units, deferred restricted stock units and non-statutory stock options. The 2017 Directors' Plan replaced the 2007 Non-Employee Directors Equity Incentive Plan, under which no further awards may be granted. Restricted Stock Units—Restricted stock units granted to non-employee directors generally vest on the first anniversary of the grant date, provided the director continues to serve on the Board until such date, and are settled in shares of Bunge Limited common stock. At the time of settlement, a participant holding a vested restricted stock unit is also entitled to receive corresponding accrued dividend equivalent share payments. The fair value of each stock option granted under any of Bunge's equity incentive plans is estimated on the grant date using the Black Scholes Merton option pricing model. Assumptions for the prior three years are noted in the following table. The expected volatility of Bunge's common shares is a weighted average of historical volatility calculated using the daily closing price of Bunge's shares up to the grant date and implied volatilities on open option contracts on Bunge's stock as of the grant date. Bunge uses historical employee exercise behavior for valuation purposes. The expected option term of granted options represents the period of time that the granted options are expected to be outstanding based on historical experience and giving consideration for the contractual terms, vesting periods and expectations of future employee behavior. The risk-free interest rate is based on U.S. Treasury zero-coupon bonds with a term equal to the expected option term of the respective grants and grant dates. December 31, Assumptions: 2019 2018 2017 Expected option term (in years) 5.97 6.31 5.86 Expected dividend yield 3.81 % 2.44 % 2.09 % Expected volatility 25.91 % 25.57 % 24.85 % Risk-free interest rate 2.36 % 2.75 % 2.21 % A summary of option activity under the plans for the year ended December 31, 2019 is presented below: Options Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at January 1, 2019 6,122,304 $ 70.93 Granted 1,163,100 $ 52.53 Exercised (332,942 ) $ 50.43 Forfeited or expired (1,144,443 ) $ 72.75 Outstanding at December 31, 2019 5,808,019 $ 68.06 4.63 $ 12 Exercisable at December 31, 2019 4,542,233 $ 70.16 3.46 $ 8 The weighted-average grant date fair value of options granted during the years ended December 31, 2019 , 2018 and 2017 was $9.07 , $16.75 and $17.13 , respectively. The total intrinsic value of options exercised during the years ended December 31, 2019 , 2018 and 2017 was approximately $1 million , $4 million and $11 million , respectively. The excess tax benefit classified as a financing cash flow was not significant for any of the periods presented. At December 31, 2019 , $8 million of total unrecognized compensation cost related to non-vested stock options granted under the equity incentive plan is expected to be recognized over the next two years . A summary of restricted stock unit activity under Bunge's plans for the year ended December 31, 2019 is presented below. Restricted Stock Units Shares Weighted-Average Grant-Date Fair Value Restricted stock units at January 1, 2019 1,873,293 $ 69.29 Granted 1,208,335 53.01 Vested/issued (2) (518,596 ) 59.79 Forfeited/cancelled (2) (763,552 ) 60.37 Restricted stock units at December 31, 2019 (1) 1,799,480 $ 64.89 (1) Includes accrued unvested dividends, which are payable in Bunge's common shares upon vesting of underlying restricted stock units. (2) During the year ended December 31, 2019 , Bunge issued 369,119 common shares, net of common shares withheld to cover taxes, including related common shares representing accrued dividends, with a weighted-average fair value of $59.79 per share. During the year ended December 31, 2019 , 31,627 performance-based restricted stock units vested. During the year ended December 31, 2019 , Bunge canceled approximately 454,426 shares related to performance-based restricted stock unit awards that did not vest due to non-achievement of performance targets. The fair value of RSU awards is determined based on the market value of the Company's shares on the grant date. The weighted-average grant date fair value of restricted stock units granted during the years ended December 31, 2019 , 2018 and 2017 was $53.01 , $75.06 and $76.79 , respectively. At December 31, 2019 , there was approximately $45 million of total unrecognized compensation cost related to restricted stock units granted under the equity incentive plans, which is expected to be recognized over the next two years . The total fair value of restricted stock units vested during the year ended December 31, 2019 was approximately $31 million . Common Shares Reserved for Share-Based Awards —The 2017 Directors' Plan and the 2016 EIP provide that 120,000 and 5,800,000 common shares, respectively, are to be reserved for grants of stock options, restricted stock units and other awards under the plans. At December 31, 2019 , 50,408 and 1,451,918 common shares were available for future grants under the 2017 Directors' Plan and the 2016 EIP, respectively. No shares are currently available for grant under any other Bunge Limited equity incentive plan. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 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 5.1 years , but with certain land leases continuing for up to 92 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 December 31, 2019, such weighted average discount rate was 4.5% . 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. In December 2019, Bunge contributed its Brazilian sugar and bioenergy operations to a newly formed joint-venture, BP Bunge Bioenergia. As such, the land leases associated with agricultural partnership agreements for the production of sugarcane have been contributed to BP Bunge Bioenergia, and are not recognized in the consolidated balance sheet at December 31, 2019. Payments under the Company's agricultural partnership agreements in Brazil, through November 2019, were 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 22, 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) Year Ended Operating lease cost $ 322 Short-term lease cost 703 Variable lease cost 20 Sublease income (125 ) Total lease cost $ 920 Supplemental cash flow information related to leases was as follows: Year Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows associated with operating leases $ 320 Supplemental non-cash information: Right-of-use assets obtained in exchange for lease obligations $ 256 Maturities of lease liabilities for operating leases as of December 31, 2019 , are as follows: (US$ in millions) 2020 $ 243 2021 196 2022 149 2023 108 2024 55 Thereafter 108 Total lease payments (1) 859 Less imputed interest 104 Present value of lease liabilities, as separately presented on the condensed consolidated balance sheet $ 755 (1) Minimum lease payments have not been reduced by minimum sublease income receipts of $34 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 six 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 December 31, 2019 , the Company has additional operating leases for freight supply agreements on ocean freight vessels, that have not yet commenced, of $223 million . These operating leases will commence in 2020 , with lease terms of up to eight years . Prior year lease disclosures The following pertains to previously disclosed information from Note 21, Commitments and contingencies and Note 26, Lease commitments , contained in the Company's 2018 Annual Report on Form 10-K, which incorporates information about leases now in scope of ASC 842, Leases , disclosed above. Operating leases for storage facilities, transportation equipment and office facilities —Future minimum lease payments by year and in the aggregate under non-cancelable operating leases with initial term of one year or more at December 31, 2018 are as follows: (US$ 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 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION Bunge has five reportable segments - Agribusiness, Edible Oil Products, Milling Products, Sugar and Bioenergy, and Fertilizer, which are organized based upon similar economic characteristics and are similar in nature of products and services offered, the nature of production processes, and the type and class of customer and distribution methods. The Agribusiness segment is characterized by both inputs and outputs being agricultural commodities and thus high volume and low margin. The Edible Oil Products segment involves the processing, production and marketing of products derived from vegetable oils. The Milling Products segment involves the processing, production and marketing of products derived primarily from wheat and corn. Up until December 2019, when the Company contributed its Brazilian sugar and bioenergy operations forming the majority of our Sugar and Bioenergy segment into a joint venture with the Brazilian biofuels business of BP p.l.c, the Sugar and Bioenergy segment primarily involved sugarcane growing and milling in Brazil, as well as sugarcane-based ethanol production and corn-based ethanol investments and related activities. Following the classification of the Brazilian fertilizer distribution and North American fertilizer businesses as discontinued operations, the activities of the Fertilizer segment include its port operations in Brazil and Argentina and its blending and retail operations in Argentina. The “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.” (US$ in millions) Agribusiness Edible Oil Products Milling Products Sugar and Bioenergy Fertilizer Other (1) Total 2019 Net sales to external customers $ 28,407 $ 9,186 $ 1,739 $ 1,288 $ 520 $ — $ 41,140 Inter—segment revenues 4,784 153 1 1 28 (4,967 ) — Foreign exchange gains (losses) (32 ) — 4 (89 ) — — (117 ) Noncontrolling interests (1) 2 7 — — (3 ) 5 11 Other income (expense)—net 108 (3 ) 5 (7 ) (5 ) 75 173 Segment EBIT (3) 491 59 59 (1,623 ) 54 69 (891 ) Depreciation, depletion and amortization (254 ) (159 ) (54 ) (74 ) (7 ) — (548 ) Investments in affiliates 457 — 13 357 — — 827 Total assets 12,123 3,789 1,377 430 348 250 18,317 Capital expenditures 222 149 22 118 2 11 524 2018 Net sales to external customers $ 32,206 $ 9,129 $ 1,691 $ 2,257 $ 460 $ — $ 45,743 Inter—segment revenues 4,641 161 — 19 2 (4,823 ) — Foreign exchange gains (losses) (104 ) — 2 7 (6 ) — (101 ) Noncontrolling interests (1) (14 ) (12 ) — 1 (2 ) 7 (20 ) Other income (expense)—net 79 (8 ) (3 ) 4 — (24 ) 48 Segment EBIT (4) 645 122 90 (135 ) 39 (24 ) 737 Discontinued operations (2) — — — — — 10 10 Depreciation, depletion and amortization (257 ) (153 ) (58 ) (146 ) (8 ) — (622 ) Investments in affiliates 406 — — 45 — — 451 Total assets 11,865 3,940 1,448 1,681 330 161 19,425 Capital expenditures 219 129 23 110 5 7 493 2017 Net sales to external customers $ 31,741 $ 8,018 $ 1,575 $ 4,054 $ 406 $ — $ 45,794 Inter—segment revenues 4,323 154 5 45 4 (4,531 ) — Foreign exchange gains (losses) 85 3 (3 ) 11 (1 ) — 95 Noncontrolling interests (1) (9 ) (8 ) — — (2 ) 5 (14 ) Other income (expense)—net 56 (7 ) (5 ) (4 ) — — 40 Segment EBIT (5) 256 126 63 (12 ) 3 — 436 Depreciation, depletion and amortization (267 ) (105 ) (61 ) (164 ) (12 ) — (609 ) Investments in affiliates 411 — — 50 — — 461 Total assets 12,094 2,610 1,460 2,195 330 182 18,871 Capital expenditures 318 136 45 139 9 15 662 (1) Includes the noncontrolling interests' share of interest and tax to reconcile to consolidated noncontrolling interests. (2) Represents Net income (loss) from discontinued operations. (3) 2019 EBIT includes a $55 million loss in the Sugar & Bioenergy segment, $49 million in Brazil and $6 million in North America, due to the dispositions of certain subsidiaries and equity investments, which are recorded in Other income (expense)-net. Additionally, 2019 EBIT includes a $19 million gain in the Milling Products segment in Brazil, on the sale of certain assets, which are recorded in Other income (expense)-net. Bunge recorded pre-tax, impairment charges of $1,825 million , of which $37 million , $1,678 million and $110 million are in Selling, general and administrative expenses, Cost of goods sold and Other income (expense)—net, respectively. Of these pre-tax impairment charges, $1,535 million was allocated to Sugar and Bioenergy, $154 million to Edible Oil Products, $105 million to Agribusiness, $29 million to Milling Products, and $2 million to Other. (4) 2018 EBIT includes a $16 million loss in the Sugar & Bioenergy segment and a $10 million loss in the Agribusiness segment, due to the dispositions of certain equity investments, which are recorded in Other income (expense)-net. In addition, Bunge recorded pre-tax, impairment charges of $18 million , of which $7 million , $10 million and $1 million are in Selling, general and administrative expenses, Cost of goods sold and Other income (expense)—net, respectively. Of these pre-tax impairment charges, $12 million was allocated to Agribusiness, $5 million to Sugar and Bioenergy and $1 million to Edible Oil Products. (5) 2017 EBIT includes a $9 million gain related to the disposition of a subsidiary in the Agribusiness segment in Brazil, which is recorded in Other income (expense)-net. In addition, Bunge recorded pre-tax, impairment charges of $52 million , of which $19 million , $16 million and $17 million are in Selling, general and administrative expenses, Cost of goods sold and Other income (expense)—net, respectively. Of these pre-tax impairment charges, $41 million was allocated to Agribusiness, $7 million to Sugar and Bioenergy, $3 million to Edible Oil Products, and $1 million to Milling Products. Total segment earnings before interest and taxes ("EBIT") is an operating performance measure used by Bunge's management to evaluate segment operating activities. Bunge's management believes total segment EBIT is a useful measure of operating profitability, since the measure allows for an evaluation of the performance of its segments without regard to its financing methods or capital structure. In addition, EBIT is a financial measure that is widely used by analysts and investors in Bunge's industries. A reconciliation of total segment EBIT to net income attributable to Bunge follows: Year Ended December 31, (US$ in millions) 2019 2018 2017 Total segment EBIT from continuing operations $ (891 ) $ 737 $ 436 Interest income 31 31 38 Interest expense (339 ) (339 ) (263 ) Income tax (expense) benefit (86 ) (179 ) (56 ) Income (loss) from discontinued operations, net of tax — 10 — Noncontrolling interests' share of interest and tax 5 7 5 Net income (loss) attributable to Bunge $ (1,280 ) $ 267 $ 160 Net sales by product group to external customers were as follows: Year Ended December 31, (US$ in millions) 2019 2018 2017 Agricultural Commodity Products $ 28,407 $ 32,206 $ 31,741 Edible Oil Products 9,186 9,129 8,018 Wheat Milling Products 1,050 1,037 988 Corn Milling Products 689 654 587 Sugar and Bioenergy Products 1,288 2,257 4,054 Fertilizer Products 520 460 406 Total $ 41,140 $ 45,743 $ 45,794 Geographic area information for net sales to external customers, determined based on the location of the subsidiary making the sale, and long-lived assets follows: Year Ended December 31, (US$ in millions) 2019 2018 2017 Net sales to external customers: Europe $ 15,278 $ 17,802 $ 16,313 United States 9,147 9,955 10,128 Asia-Pacific 8,019 8,651 8,613 Brazil 5,195 5,553 7,040 Argentina 1,015 1,166 1,433 Canada 1,246 1,216 1,114 Rest of world 1,240 1,400 1,153 Total $ 41,140 $ 45,743 $ 45,794 Year Ended December 31, (US$ in millions) 2019 2018 2017 Long-lived assets (1) : Brazil $ 1,065 $ 1,994 $ 2,406 United States 1,413 1,561 1,267 Europe 2,057 1,912 1,485 Asia-Pacific 613 679 483 Canada 448 401 440 Argentina 190 161 216 Rest of world 381 382 341 Total $ 6,167 $ 7,090 $ 6,638 (1) Long-lived assets include Property, plant and equipment, net, Goodwill and Other intangible assets, net, Investments in affiliates and non-current assets held for sale. The Company’s revenue comprises sales from commodity contracts that are accounted for under ASC 815, Derivatives and Hedging (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: Year Ended December 31, 2019 (US$ in millions) Agribusiness Edible Oil Products Milling Products Sugar and Bioenergy Fertilizer Total Sales from other arrangements $ 27,457 $ 1,953 $ 71 $ 729 $ — $ 30,210 Sales from contracts with customers 950 7,233 1,668 559 520 10,930 Net sales to external customers $ 28,407 $ 9,186 $ 1,739 $ 1,288 $ 520 $ 41,140 Year Ended December 31, 2018 (US$ in millions) Agribusiness Edible Milling Sugar and Fertilizer Total Sales from other arrangements $ 31,040 $ 1,818 $ 65 $ 1,568 $ — $ 34,491 Sales from contracts with customers 1,166 7,311 1,626 689 460 11,252 Net sales to external customers $ 32,206 $ 9,129 $ 1,691 $ 2,257 $ 460 $ 45,743 |
QUARTERLY FINANCIAL INFORMATION
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | QUARTERLY FINANCIAL INFORMATION (UNAUDITED) Quarter (US$ in millions, except per share data) First Second Third Fourth Year 2019 Net sales $ 9,938 $ 10,096 $ 10,323 $ 10,783 $ 41,140 Gross profit 437 512 (978 ) 571 542 Income (loss) from continuing operations 50 212 (1,482 ) (71 ) (1,291 ) Income (loss) from discontinued operations, net of tax — — — — — Net income (loss) 50 212 (1,482 ) (71 ) (1,291 ) Net income (loss) attributable to Bunge 45 214 (1,488 ) (51 ) (1,280 ) Earnings (loss) per common share—basic (1) Net income (loss) from continuing operations $ 0.26 $ 1.46 $ (10.57 ) $ (0.48 ) $ (9.34 ) Net income (loss) from discontinued operations — — — — — Net income (loss) attributable to Bunge common shareholders $ 0.26 $ 1.46 $ (10.57 ) $ (0.48 ) $ (9.34 ) Earnings (loss) per common share—diluted (1) Net income (loss) from continuing operations $ 0.26 $ 1.43 $ (10.57 ) $ (0.48 ) $ (9.34 ) Net income (loss) from discontinued operations — — — — — Net income (loss) attributable to Bunge common shareholders $ 0.26 $ 1.43 $ (10.57 ) $ (0.48 ) $ (9.34 ) 2018 Net sales $ 10,641 $ 12,147 $ 11,412 $ 11,543 $ 45,743 Gross profit 384 542 918 422 2,266 Income (loss) from continuing operations (17 ) (17 ) 367 (56 ) 277 Income (loss) from discontinued operations, net of tax (2 ) 7 7 (2 ) 10 Net income (loss) (19 ) (10 ) 374 (58 ) 287 Net income (loss) attributable to Bunge (21 ) (12 ) 365 (65 ) 267 Earnings (loss) per common share—basic (1) Net income (loss) from continuing operations $ (0.20 ) $ (0.20 ) $ 2.48 $ (0.51 ) $ 1.58 Net income (loss) from discontinued operations (0.01 ) 0.05 0.05 (0.01 ) 0.07 Net income (loss) attributable to Bunge common shareholders $ (0.21 ) $ (0.15 ) $ 2.53 $ (0.52 ) $ 1.65 Earnings (loss) per common share—diluted (1) Net income (loss) from continuing operations $ (0.20 ) $ (0.20 ) $ 2.39 $ (0.51 ) $ 1.57 Net income (loss) from discontinued operations (0.01 ) 0.05 0.05 (0.01 ) 0.07 Net income (loss) attributable to Bunge common shareholders $ (0.21 ) $ (0.15 ) $ 2.44 $ (0.52 ) $ 1.64 (1) Earnings per share attributable to Bunge common shareholders for both basic and diluted is computed independently for each period presented. As a result, the sum of the quarterly earnings per share for the years ended December 31, 2019 and 2018 may not equal the total computed for the year. |
SCHEDULE II-VALUATION AND QUALI
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II-Valuation and Qualifying Accounts | Schedule II—Valuation and Qualifying Accounts (US$ in millions) Description Balance at beginning of period Charged to costs and expenses Charged to other accounts (b) Deductions from reserves Balance at end of period FOR THE YEAR ENDED Allowances for doubtful accounts (a) $ 212 42 (1 ) (70 ) (c) $ 183 Allowances for secured advances to suppliers $ 50 20 — (5 ) $ 65 Allowances for recoverable taxes $ 35 12 (1 ) (7 ) $ 39 Income tax valuation allowances $ 839 43 18 — $ 900 FOR THE YEAR ENDED Allowances for doubtful accounts (a) $ 183 56 (18 ) (36 ) (c) $ 185 Allowances for secured advances to suppliers $ 65 21 (10 ) (6 ) $ 70 Allowances for recoverable taxes $ 39 6 (5 ) (3 ) $ 37 Income tax valuation allowances $ 900 114 (98 ) (150 ) $ 766 FOR THE YEAR ENDED DECEMBER 31, 2019 Allowances for doubtful accounts (a) $ 185 38 (2 ) (49 ) (c) $ 172 Allowances for secured advances to suppliers $ 70 7 (3 ) (8 ) $ 66 Allowances for recoverable taxes $ 37 52 — (11 ) $ 78 Income tax valuation allowances $ 766 66 (28 ) (400 ) $ 404 (a) Includes allowance for doubtful accounts for current and non-current trade accounts receivables. (b) Consists primarily of foreign currency translation adjustments. (c) Includes write-offs of uncollectible accounts and recoveries. |
NATURE OF BUSINESS, BASIS OF _2
NATURE OF BUSINESS, BASIS OF PRESENTATION, AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation —The consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The accounting policies used to prepare these financial statements are the same as those used to prepare the consolidated financial statements in prior years, except as described in these notes or for the adoption of new standards as outlined below. Principles of Consolidation —The accompanying consolidated financial statements include the accounts of Bunge, its subsidiaries and VIEs in which Bunge is considered to be the primary beneficiary, and as a result, include the assets, liabilities, revenues and expenses of all entities over which Bunge exercises control. Equity investments in which Bunge has the ability to exercise significant influence but does not control are accounted for by the equity method of accounting. Investments in which Bunge does not exercise significant influence are accounted for at cost, or fair value if that is readily determinable. Intercompany accounts and transactions are eliminated. An enterprise is determined to be the primary beneficiary if it has a controlling financial interest, defined as (a) the power to direct the activities of a VIE that most significantly impact the VIE's business and (b) the obligation to absorb losses of or the right to receive benefits from the VIE that could potentially be significant to the VIE's operations. Performance of that analysis requires the exercise of judgment. The VIE and consolidation assessments are revisited upon the occurrence of relevant reconsideration events. Noncontrolling interests in subsidiaries related to Bunge's ownership interests of less than 100% are reported as Noncontrolling interests or Redeemable noncontrolling interests in the consolidated balance sheets. The noncontrolling ownership interests in Bunge's earnings, net of tax, is reported as Net (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests in the consolidated statements of income. |
Discontinued Operations | Discontinued Operations —In determining whether a disposal group should be presented as discontinued operations, Bunge makes a determination of whether such a group being disposed of comprises a component of the entity, or a group of components of the entity, that represents a strategic shift that has, or will have, a major effect on the Company's operations and financial results. If these determinations are made affirmatively, the results of operations of the group being disposed of (as well as any gain or loss on the disposal transaction) are aggregated for separate presentation apart from the continuing operations of the Company for all periods presented in the consolidated financial statements. |
Reclassifications | Reclassifications —Certain prior year amounts have been reclassified to conform to current year presentation. |
Use of Estimates | Use of Estimates —The preparation of consolidated financial statements in conformity with U.S. GAAP requires Bunge to make estimates and assumptions that affect the amounts reported in the financial statements and notes. Actual results could differ from those estimates. |
Translation of Foreign Currency Financial Statements and Foreign Currency Transactions | Translation of Foreign Currency Financial Statements —Bunge's reporting currency is the U.S. dollar. The functional currency of the majority of Bunge's foreign subsidiaries is their local currency and, as such, amounts included in the consolidated statements of income, comprehensive income (loss), cash flows and changes in equity are translated using average exchange rates during each period. Assets and liabilities are translated at period-end exchange rates and resulting foreign currency translation adjustments are recorded in the consolidated balance sheets as a component of accumulated other comprehensive income (loss). However, in accordance with U.S. GAAP, if a foreign entity's economy is determined to be highly inflationary, then such foreign entity's financial statements shall be remeasured as if the functional currency were the reporting currency. Bunge has significant operations in Argentina and, up until June 30, 2018, had utilized the official exchange rate of the Argentine peso published by the Argentine government for its commercial transactions and remeasurement purposes of financial statements. Argentina has experienced negative economic trends, as evidenced by multiple periods of increasing inflation rates, devaluation of the peso , and increasing borrowing rates, requiring the Argentine government to take mitigating actions. During the second quarter of 2018, it was determined that Argentina's economy should be considered highly inflationary, and as such, beginning on July 1, 2018, Bunge's Argentine subsidiaries changed their functional currency to the U.S. Dollar. This change in functional currency did not have a material impact on Bunge's consolidated financial statements. Foreign Currency Transactions —Monetary assets and liabilities denominated in currencies other than the functional currency are remeasured into their respective functional currencies at exchange rates in effect at the balance sheet date. The resulting exchange gain or loss is included in Bunge's consolidated statements of income as foreign exchange gain (loss) unless the remeasurement gain or loss relates to an intercompany transaction that is of a long-term investment nature and for which settlement is not planned or anticipated in the foreseeable future. Gains or losses arising from translation of such transactions are reported as a component of Accumulated other comprehensive income (loss) in Bunge's consolidated balance sheets. |
Cash and Cash Equivalents | Cash, Cash Equivalents, and Restricted Cash |
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. |
Trade Accounts Receivable and Secured Advances to Suppliers | Trade Accounts Receivable and Secured Advances to Suppliers —Trade accounts receivable and secured advances to suppliers are stated at their historical carrying amounts net of write-offs and allowances for uncollectible accounts. Bunge establishes an allowance for uncollectible trade accounts receivable and secured advances to farmers based on historical experience, farming economics and other market conditions as well as specific customer collection issues. Uncollectible accounts are written off when a settlement is reached for an amount below the outstanding historical balance or when Bunge has determined that collection is unlikely. Secured advances to suppliers bear interest at contractual rates which reflect current market interest rates at the time of the transaction. There are no deferred fees or costs associated with these receivables. As a result, there are no imputed interest amounts to be amortized under the interest method. Interest income is calculated based on the terms of the individual agreements and is recognized on an accrual basis. Bunge follows accounting guidance on the disclosure of the credit quality of financing receivables and the allowance for credit losses, which requires information to be disclosed at disaggregated levels, defined as portfolio segments and classes. Under this guidance, a class of receivables is considered impaired, based on current information and events, if Bunge determines it probable that all amounts due under the original terms of the receivable will not be collected. Recognition of interest income is suspended once the borrower defaults on the originally scheduled delivery of agricultural commodities as the collection of future income is determined not to be probable. No additional interest income is accrued from the point of default until ultimate recovery, at which time amounts collected are credited first against the receivable and then to any unrecognized interest income. |
Inventories | Inventories —Readily marketable inventories ("RMI") are agricultural commodity inventories, such as soybeans, soybean meal, soybean oil, corn and wheat that are readily convertible to cash because of their commodity characteristics, widely available markets and international pricing mechanisms. All of Bunge's RMI are recorded at fair value. These agricultural commodity inventories have quoted market prices in active markets, may be sold without significant further processing, and have predictable and insignificant disposal costs. Changes in the fair values of RMI are recognized in earnings as a component of Cost of goods sold. Inventories other than RMI are stated at the lower of cost or market by inventory product class. Cost is determined using primarily the weighted-average cost method. |
Fair Value Measurements | Fair Value Measurements —Bunge determines fair value based on the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Bunge determines the fair values of its readily marketable inventories, derivatives, and certain other assets based on the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs are inputs based on market data obtained from sources independent of Bunge that reflect the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are inputs that are developed based on the best information available in circumstances that reflect Bunge's own assumptions based on market data and on assumptions that market participants would use in pricing the asset or liability. The fair value standard describes three levels within its hierarchy that may be used to measure fair value. Level 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). Readily marketable inventories. Over-the-counter (‘‘OTC’’) commodity purchase and sale contracts. OTC derivatives whose value is determined using pricing models with inputs that are generally based on exchange traded prices, adjusted for location specific inputs that are primarily observable in the market or can be derived principally from or corroborated by observable market data. Marketable securities in less active markets. 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. Based on historical experience with Bunge’s suppliers and customers, Bunge’s own credit risk, and knowledge of current market conditions, Bunge does not view nonperformance risk to be a significant input to fair value for the majority of its forward commodity purchase and sale contracts. 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. Bunge’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. Bunge’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. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities —Bunge enters into derivative instruments to manage its exposure to movements associated with agricultural commodity prices, transportation costs, foreign currency exchange rates, interest rates, and energy costs. Bunge's use of these instruments is generally intended to mitigate the exposure to market variables (see Note 16, Derivative instruments and hedging activities ). Additionally, commodity contracts relating to forward sales of commodities in the Company’s Agribusiness segment, such as soybeans, soybean meal and oil, corn, and wheat, are accounted for as derivatives at fair value under ASC 815 (see Revenue Recognition below). Generally, derivative instruments are recorded at fair value in other current assets or other current liabilities in Bunge's consolidated balance sheets. Bunge assesses at the inception of a hedge whether any derivatives designated as hedges are highly effective in offsetting changes in the hedged items and, on an ongoing basis, qualitatively monitors whether that assertion is still met. The changes in fair values of derivative instruments designated as fair value hedges, along with the gains or losses on the related hedged items are recorded in earnings in the consolidated statements of income in the same caption as the hedged items. The changes in fair values of derivative instruments that are designated as cash flow hedges are recorded in accumulated other comprehensive income (loss) and are reclassified to earnings when the hedged cash flows affect earnings or when the hedge is no longer considered to be effective. In addition, Bunge may designate certain derivative instruments and non-derivative instruments as net investment hedges to hedge the exposure associated with its equity investments in foreign operations. When using forward derivative contracts as hedging instruments in a net investment hedge, all changes in the fair value of the derivative are recorded as a component of accumulated other comprehensive income (loss) in the consolidated balance sheets. |
Marketable Securities and Other Short-Term Investments | Marketable Securities and Other Short-Term Investments —Bunge classifies its marketable debt securities and short-term investments as available-for-sale, held-to-maturity or trading. Available-for-sale debt securities are reported at fair value with unrealized gains (losses) included in accumulated other comprehensive income (loss). Held-to-maturity debt investments represent financial assets in which Bunge has the intent and ability to hold to maturity. Debt trading securities and all equity securities are recorded at fair value and are bought and held principally for selling them in the near term and therefore held for only a short period of time, with all gains (losses) included in net income (loss). Bunge monitors its held-to-maturity investments for impairment periodically and recognizes an impairment charge when the decline in fair value of an investment is judged to be other than temporary. |
Recoverable Taxes | Recoverable Taxes —Recoverable taxes include value-added taxes paid upon the acquisition of raw materials and taxable services and other transactional taxes, which can be recovered in cash or as compensation against income taxes or other taxes owed by Bunge, primarily in Brazil and Europe. These recoverable tax payments are included in other current assets or other non-current assets based on their expected realization. In cases where Bunge determines that recovery is doubtful, recoverable taxes are reduced by allowances for the estimated unrecoverable amounts. |
Property, Plant and Equipment, Net | Property, Plant and Equipment, Net —Property, plant and equipment, net is stated at cost less accumulated depreciation. Major improvements that extend either the life, capacity, efficiency, or improve the safety of an asset are capitalized, while maintenance and repairs are expensed as incurred. Costs related to legal obligations associated with the future retirement of capitalized assets are capitalized as part of the cost of the related asset. Bunge generally capitalizes eligible costs to acquire or develop internal-use software that are incurred during the application development stage. Interest costs on borrowings during construction/completion periods of major capital projects are also capitalized. Depreciation is computed based on the straight-line method over the estimated useful lives of the assets. Estimated useful lives for property, plant and equipment are as follows: Years Buildings 10 - 50 Machinery and equipment 7 - 25 Furniture, fixtures and other 3 - 20 |
Goodwill | Goodwill —Goodwill represents the cost in excess of the fair value of net assets acquired in a business acquisition. Goodwill is not amortized but is tested annually for impairment, or between annual tests if events or circumstances indicate potential impairment. Bunge's annual impairment testing is generally performed during the fourth quarter of its fiscal year. Goodwill is tested for impairment at the reporting unit level, which has been determined to be the Company's operating segments or one level below the operating segments in certain instances (see Note 8, Goodwill ). Bunge performs its annual goodwill impairment analysis during the fourth quarter. If events or indicators of impairment occur between annual impairment analyses, the Company performs an impairment analysis at that date. These events or circumstances could include a significant change in the business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant asset. In testing for a potential impairment of goodwill, the Company: (1) verifies there are no changes to its reporting units with goodwill balances; (2) allocates goodwill to its various reporting units to which the acquired goodwill relates; (3) determines the carrying value, or book value, of its reporting units; (4) estimates the fair value of each reporting unit using a discounted cash flow model and/or using market multiples; (5) compares the fair value of each reporting unit to its carrying value; and (6) if the estimated fair value of a reporting unit is less than the carrying value, the Company recognizes an impairment charge for such amount, but not exceeding the total amount of goodwill allocated to that reporting unit. Critical estimates in the determination of fair value under the income approach include, but are not limited to, assumptions about variables such as commodity prices, crop and related throughput and production volumes, profitability, future capital expenditures and discount rates, all of which are subject to a high degree of judgment. |
Other Intangible Assets | Other Intangible Assets —Finite lived intangible assets primarily include trademarks, customer relationships and lists, port facility usage rights, and patents that are amortized on a straight-line basis over their contractual or legal lives, or their estimated useful lives where such lives are not determined by law or contract (see Note 9, Other intangible assets ). |
Impairment of Property, Plant and Equipment and Finite Lived Intangible Assets | Impairment of Property, Plant and Equipment and Finite Lived Intangible Assets —Bunge reviews its property, plant and equipment and finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. Bunge bases its evaluation of recoverability on such indicators as the nature, future economic benefits, and geographic locations of the assets, historical or future profitability measures, and other external market conditions. If these indicators result in the expected non-recoverability of the carrying amount of an asset or asset group, Bunge evaluates potential impairment using undiscounted estimated future cash flows. If such undiscounted future cash flows during the asset's remaining useful life are below its carrying value, a loss is recognized for the shortfall, measured by the present value of the estimated future cash flows or by third-party appraisals. Bunge records impairments related to property, plant and equipment and finite-lived intangible assets used in the processing of its products in cost of goods sold in its consolidated statements of income. Any impairment of marketing or brand assets is recognized in selling, general and administrative expenses in the consolidated statements of income (see Note 10, Impairments ). Property, plant and equipment and other finite-lived intangible assets to be sold or otherwise disposed of are reported at the lower of carrying amount or fair value less cost to sell. |
Investments in Affiliates | Investments in Affiliates —Bunge has investments in various unconsolidated joint ventures accounted for using the equity method or cost method. Bunge reviews its investments annually or when an event or circumstances indicate that a potential decline in value may be other than temporary. Bunge considers various factors in determining whether to recognize an impairment charge, including the length of time that the fair value of the investment is expected to be below its carrying value, the financial condition, operating performance and near-term prospects of the affiliate and Bunge's intent and ability to hold the investment for a period of time sufficient to allow for recovery of the fair value. (see Note 10, Impairments and Note 11, Investments in affiliates ). |
Revenue Recognition | Revenue Recognition —The Company’s revenue comprises sales from commodity contracts that are accounted for under ASC 815, Derivatives and Hedging (ASC 815) and sales of other products and services that are accounted for under ASC 606, Revenue from Contracts with Customers (ASC 606). Additional information about the Company’s revenues can be found in Note 28, Segment Information . Revenue from commodity contracts (ASC 815) - Revenue from commodity contracts primarily relates to forward sales of commodities in the Company’s Agribusiness segment, such as soybeans, soybean meal and oil, corn and wheat, which are accounted for as derivatives at fair value under ASC 815. These forward sales meet the definition of a derivative under ASC 815 as they have an underlying (e.g. the price of soybeans), a notional amount (e.g. metric tons), no initial net investment and can be net settled since the commodity is readily convertible to cash. Bunge does not apply the normal purchase and normal sale exception available under ASC 815 to these contracts. Certain of the Company’s sales in its Edible Oil Products, Milling Products, and Sugar and Bioenergy segments also qualify as derivatives, primarily sales of commodities like bulk soybean and canola oil, and sugar. Revenue from commodity contracts is recognized in Net sales for the contracted amount when the contracts are settled at a point in time by transferring control of the commodity to the customer, similarly to revenue recognized from contracts with customers under ASC 606. From inception through settlement, these forward sales arrangements are recorded at fair value under ASC 815 with unrealized gains and losses recognized in Cost of goods sold and carried on the consolidated balance sheet as Current assets (see Note 6, Other current assets ) or Current liabilities (see Note 13, Other current liabilities ), respectively. Further information about the fair value of these contracts is presented in Note 15, Fair value measurements . Revenue from contracts with customers (ASC 606) - Revenue from contracts with customers accounted for under ASC 606 is primarily generated in the Company's Edible Oil Products, Milling Products, Sugar and Bioenergy and Fertilizer segments through the sale of refined edible oil-based products such as packaged vegetable oils, shortenings, margarines and mayonnaise; milled grain products such as wheat flours, bakery mixes, corn-based products, and rice; certain sugar and bioenergy products; and fertilizer products. These sales are accounted for under ASC 606 as these sales arrangements do not meet the aforementioned criteria to be considered derivatives under ASC 815. These revenues are measured based on consideration specified in a contract with a customer, and exclude sales taxes, discounts related to promotional programs and amounts collected on behalf of third parties. The Company recognizes revenue from these contracts at a point in time when it satisfies a performance obligation by transferring control of a product to a customer, generally when legal title and risks and rewards transfer to the customer. Sales terms provide for transfer of title either at the time and point of shipment or at the time and point of delivery and acceptance of the product being sold. In contracts that do not specify the timing of transfer of legal title or transfer of significant risks and rewards of ownership, judgment is required in determining the timing of transfer of control. In such cases, the Company considers standard business practices and the relevant laws and regulations applicable to the transaction to determine when legal title or the significant risks and rewards of ownership are transferred. The transaction price is generally allocated to performance obligations on a relative standalone selling price basis. Standalone selling prices are estimated based on observable data of the Company’s sales of such products and services to similar customers and in similar circumstances on a standalone basis. In assessing whether to allocate variable consideration to a specific part of the contract, the Company considers the nature of the variable payment and whether it relates specifically to its efforts to satisfy a specific part of the contract. Variable consideration is generally known upon satisfaction of the performance obligation. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue producing transaction, that are collected by the Company from a customer, are excluded from revenue. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in Cost of goods sold. Warranties provided to customers are primarily assurance-type warranties on the fitness of purpose and merchantability of the Company’s goods and services. The Company does not provide service-type warranties to customers. Payment is generally due at the time of shipment or delivery, or within a specified time frame after shipment or delivery, which is generally 30-60 days. The Company’s contracts generally provide customers the right to reject any products that do not meet agreed quality specifications. Product returns and refunds are not material. Additionally, the Company recognizes revenue in the Agribusiness segment from ocean freight and port services over time as the related services are performed. Performance obligations are typically completed within a fiscal quarter and any unearned revenue or accrued revenues are not material. |
Share-Based Compensation | Share-Based Compensation —Bunge maintains equity incentive plans for its employees and non-employee directors (see Note 26, Share-based compensation ). Bunge accounts for share-based compensation based on the grant date fair value. Share-based compensation expense is recognized on a straight-line basis over the requisite service period. |
Income Taxes | Income Taxes —Income tax expenses and benefits are recognized based on the tax laws and regulations in the jurisdictions in which Bunge's subsidiaries operate. Under Bermuda law, Bunge is not required to pay taxes in Bermuda on either income or capital gains. The provision for income taxes includes income taxes currently payable and deferred income taxes arising as a result of temporary differences between the carrying amounts of existing assets and liabilities in Bunge's financial statements and their respective tax bases. Deferred tax assets are reduced by valuation allowances if current evidence does not suggest that the deferred tax asset will be realized. Accrued interest and penalties related to unrecognized tax benefits are recognized in Income tax (expense) benefit in the consolidated statements of income (see Note 14, Income taxes ). |
Research and Development | Research and Development |
New Accounting Pronouncements | New Accounting Pronouncements —In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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 Bunge starting January 1, 2020. 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 adoption of this standard is not expected to have a material impact on Bunge's consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740)-Simplifying the Accounting for Income Taxes, which reduces complexity in the accounting for income taxes by removing certain exceptions to the general principles in Topic 74 0. The amendments also improve consistent application of and simplify U.S. GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption of the amendments is permitted. Bunge is evaluating the impact of this standard on its consolidated financial statements. |
Recently Adopted Accounting Pronouncements | 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 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 (loss) 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 $21 million . On January 1, 2019 the Company adopted ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment |
NATURE OF BUSINESS, BASIS OF _3
NATURE OF BUSINESS, BASIS OF PRESENTATION, AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of useful lives for property, plant and equipment | Estimated useful lives for property, plant and equipment are as follows: Years Buildings 10 - 50 Machinery and equipment 7 - 25 Furniture, fixtures and other 3 - 20 |
Schedule of cash and cash equivalents | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheet that sums to the total of the same such amounts shown in the consolidated statements of cash flows. December 31, (US$ in millions) 2019 2018 2017 Cash and cash equivalents $ 320 $ 389 $ 601 Restricted cash included in other current assets 2 4 4 Total $ 322 $ 393 $ 605 |
Restrictions on cash and cash equivalents | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheet that sums to the total of the same such amounts shown in the consolidated statements of cash flows. December 31, (US$ in millions) 2019 2018 2017 Cash and cash equivalents $ 320 $ 389 $ 601 Restricted cash included in other current assets 2 4 4 Total $ 322 $ 393 $ 605 |
GLOBAL COMPETITIVENESS PROGRA_2
GLOBAL COMPETITIVENESS PROGRAM AND PORTFOLIO RATIONALIZATION INITIATIVES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of global competitiveness program | The table below sets forth, by type and segment, the costs recorded for the GCP and other associated initiatives for the years ended December 31, 2019 , 2018 , and 2017: (US$ in millions) Agribusiness Segment Edible Oils Segment Milling Segment Sugar and Bioenergy Segment Fertilizer Segment Total 2019 Severance and Other Employee Benefit Costs $ 19 $ 6 $ 4 $ — $ — $ 29 Consulting and Professional Services 4 2 — 1 — 7 Other Program Costs 6 2 1 1 — 10 Total Program Costs $ 29 $ 10 $ 5 $ 2 $ — $ 46 2018 Severance and Other Employee Benefit Costs $ 15 $ 2 $ 1 $ 2 $ 2 $ 22 Consulting and Professional Services 18 4 3 4 1 30 Other Program Costs 6 1 — 1 — 8 Total Program Costs $ 39 $ 7 $ 4 $ 7 $ 3 $ 60 2017 Severance and Other Employee Benefit Costs $ 39 $ 12 $ 6 $ 1 $ 1 $ 59 Consulting and Professional Services 10 4 1 3 — 18 Other Program Costs — — — — — — Total Program Costs $ 49 $ 16 $ 7 $ 4 $ 1 $ 77 |
Schedule of restructuring reserve | The following table sets forth the activity affecting the liability for severance and other employee benefit costs related to the GCP and other associated initiatives, which is recorded in Other current liabilities on the consolidated balance sheet. (US$ in millions) Severance and Other Employee Benefit Costs Balance at December 31, 2017 $ 45 Charges incurred 22 Cash payments (64 ) Balance at December 31, 2018 $ 3 Charges incurred 29 Cash payments (21 ) Balance at December 31, 2019 $ 11 |
BUSINESS ACQUISITIONS AND DIS_2
BUSINESS ACQUISITIONS AND DISPOSITIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Summary of the estimated fair values of the assets acquired and liabilities assumed | The following table summarizes the allocation of the fair values of the assets acquired and liabilities assumed at the acquisition date, as included in Bunge's consolidated balance sheet: (US$ in millions) Cash and cash equivalents $ 82 Accounts receivable 146 Inventories 406 Other current assets 66 Property, plant and equipment 411 Other intangible assets 464 Goodwill 242 Total assets 1,817 Trade accounts payable (109 ) Other current liabilities (100 ) Deferred income taxes (143 ) Other non-current liabilities (35 ) Total liabilities (387 ) Redeemable noncontrolling interest (450 ) Net assets acquired $ 980 |
Summary of intangible assets acquired | The following table provides the details of other intangible assets acquired, by major class and weighted average useful life: (US$ in millions) Useful life Customer relationships 15 years $ 265 Intellectual property 10 years 120 Trade names 15 years 51 Favorable leases 38 years 26 Other various 2 Total Other intangible assets $ 464 |
Summary of pro forma information | The amounts of revenue and earnings of Loders included in Bunge's consolidated statement of income from the acquisition date to December 31, 2018 is as follows: (US$ in millions) Net sales $ 1,331 Income (loss) from continuing operations $ 3 The following represents the unaudited supplemental pro forma results of the combined entity as if Loders was acquired on January 1, 2017: Year Ended December 31, (US$ in millions) 2018 2017 Net sales $ 46,047 $ 47,588 Income (loss) from continuing operations $ 298 $ 129 |
Summary of Dispositions | The following table presents the major classes of assets and liabilities included in Assets held for sale and Liabilities held for sale, respectively, on the Consolidated Balance Sheet at December 31, 2019: (US$ in millions) Inventories $ 19 Property, plant, and equipment, net 49 Other intangible assets, net 4 Assets held for sale $ 72 Other current liabilities $ 4 Liabilities held for sale $ 4 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories by segment | All other inventories are carried at lower of cost or net realizable value. December 31, (US$ in millions) 2019 2018 Agribusiness (1) $ 4,002 $ 4,551 Edible Oil Products (2) 770 742 Milling Products 194 220 Sugar and Bioenergy (3) 6 280 Fertilizer 66 78 Total $ 5,038 $ 5,871 (1) Includes RMI of $3,796 million and $4,365 million at December 31, 2019 and 2018 , respectively. Of these amounts $2,589 million and $3,300 million can be attributable to merchandising activities at December 31, 2019 and 2018 , respectively. (2) Includes RMI of $133 million and $88 million at December 31, 2019 and 2018 , respectively. (3) Includes RMI of $5 million and $79 million at December 31, 2019 and 2018 , respectively. Of these amounts, $0 million and $74 million can be attributable to merchandising activities at December 31, 2019 and 2018 , respectively. |
OTHER CURRENT ASSETS (Tables)
OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of other current assets | Other current assets consist of the following: December 31, (US$ in millions) 2019 2018 Unrealized gains on derivative contracts, at fair value $ 927 $ 1,071 Prepaid commodity purchase contracts (1) 153 253 Secured advances to suppliers, net (2) 346 257 Recoverable taxes, net 476 500 Margin deposits 285 348 Marketable securities, at fair value, and other short-term investments 393 162 Deferred purchase price receivable (3) 105 128 Income taxes receivable 37 102 Prepaid expenses 221 165 Other 170 185 Total $ 3,113 $ 3,171 (1) Prepaid commodity purchase contracts represent advance payments against contracts for future delivery of specified quantities of agricultural commodities. (2) Bunge provides cash advances to suppliers, primarily Brazilian soybean farmers, to finance a portion of the suppliers' production costs. Bunge does not bear any of the costs or operational risks associated with growing the related crops. The advances are largely collateralized by future crops and physical assets of the suppliers, carry a local market interest rate, and settle when the farmer's crop is harvested and sold. The secured advances to farmers are reported net of allowances of $1 million and $1 million at December 31, 2019 and December 31, 2018 , respectively. Interest earned on secured advances to suppliers of $26 million , $30 million and $44 million , for the years ended December 31, 2019 , 2018 and 2017 , respectively, is included in Net sales in the consolidated statements of income. (3) Deferred purchase price receivable represents additional credit support for the investment conduits in Bunge's trade receivables securitization program (see Note 19). |
Summary of marketable securities and other short-term investments | The following is a summary of amounts recorded in the consolidated balance sheets as marketable securities and other short-term investments. December 31, (US$ in millions) 2019 2018 Foreign government securities $ 212 $ 55 Corporate debt securities 161 91 Certificate of deposits/time deposits — 15 Equity securities 14 — Other 6 1 Total marketable securities and other short-term investments $ 393 $ 162 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | Property, plant and equipment consist of the following: December 31, (US$ in millions) 2019 2018 Land $ 390 $ 403 Biological assets — 663 Buildings 2,046 2,139 Machinery and equipment 4,834 5,664 Furniture, fixtures and other 587 581 Construction in progress 303 435 Gross book value 8,160 9,885 Less: accumulated depreciation and depletion (4,028 ) (4,684 ) Total property, plant and equipment, net $ 4,132 $ 5,201 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of changes in the carrying amount of goodwill by segment | Changes in the carrying value of goodwill by segment for the years ended December 31, 2019 and 2018 are as follows: (US$ in millions) Agribusiness Edible Oil Products Milling Products Sugar and Bioenergy (3) Fertilizer Total Goodwill, gross of impairments $ 253 $ 107 $ 172 $ 514 $ 1 $ 1,047 Accumulated impairment losses (2 ) (13 ) (3 ) (514 ) — (532 ) Balance, December 31, 2017, net 251 94 169 — 1 515 Goodwill acquired (1) — 242 19 — — 261 Foreign currency translation (18 ) (18 ) (13 ) — — (49 ) Goodwill, gross of impairments 235 331 178 514 1 1,259 Accumulated impairment losses (2 ) (13 ) (3 ) (514 ) — (532 ) Balance, December 31, 2018, net 233 318 175 — 1 727 Foreign currency translation (5 ) (4 ) 1 — — (8 ) Impairments (2) — (108 ) — — — (108 ) Goodwill, gross of impairments 230 327 179 — 1 737 Accumulated impairment losses (2 ) (121 ) (3 ) — — (126 ) Balance, December 31, 2019, net $ 228 $ 206 $ 176 $ — $ 1 $ 611 (1) Edible Oils goodwill relates to the Loders acquisition and the Milling Products goodwill relates to the Minsa USA acquisition. See Note 3, Business acquisitions and dispositions, for complete business acquisition details. (2) During the fourth quarter of 2019, the Company recorded an impairment charge related to the goodwill of its Loders reporting unit. The impairment resulted from a downward revision of forecasted future cash flows, as during 2019, the Loders reporting unit did not achieve its forecasted earnings targets due to operational delays at certain facilities, as well as delays in realizing certain expected synergies from the acquisition. The fair value of the Loders reporting unit was determined based on a weighted-average discounted cash flow model, comprising different scenarios and assumptions of the long-term revenues, costs, synergies, growth rates, capital expenditures and other related cash flows associated with each scenario. (3) During 2019, the Company contributed its Brazilian sugar and bioenergy operations into a joint venture with BP, forming BP Bunge Bioenergia. As such, historical goodwill, gross of impairments, and accumulated impairment losses have been derecognized from the consolidated financial statements. |
OTHER INTANGIBLE ASSETS (Tables
OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Schedule of other intangible assets | Other intangible assets are all finite-lived and consist of the following: December 31, (US$ in millions) 2019 2018 Gross carrying amount: Trademarks/brands $ 190 $ 235 Licenses 11 12 Port rights 85 141 Customer Relationships 356 372 Patents 133 135 Other 99 95 874 990 Accumulated amortization: Trademarks/brands (81 ) (106 ) Licenses (9 ) (10 ) Port rights (22 ) (37 ) Customer Relationships (75 ) (54 ) Patents (43 ) (32 ) Other (61 ) (54 ) (291 ) (293 ) Other intangible assets, net $ 583 $ 697 |
INVESTMENTS IN AFFILIATES (Tabl
INVESTMENTS IN AFFILIATES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summarized Information of Equity Method Investments | Summarized financial information, combined, for all of Bunge's equity method investees is as follows: December 31, (US$ in millions) 2019 2018 Current assets $ 1,809 $ 897 Noncurrent assets 3,822 1,727 Total assets $ 5,631 $ 2,624 Current liabilities $ 1,344 $ 581 Noncurrent liabilities 2,028 839 Total liabilities $ 3,372 $ 1,420 Years ended December 31, (US$ in millions) 2019 2018 2017 Net Sales $ 3,611 $ 3,923 $ 2,953 Gross Profit 359 264 157 Net income 95 61 — |
OTHER NON-CURRENT ASSETS (Table
OTHER NON-CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Assets, Noncurrent [Abstract] | |
Schedule of other non-current assets | Other non-current assets consist of the following: December 31, (US$ in millions) 2019 2018 Recoverable taxes, net (1) $ 48 $ 112 Judicial deposits (1) 106 115 Other long-term receivables 6 8 Income taxes receivable (1) 208 221 Long-term investments 83 91 Affiliate loans receivable 29 29 Long-term receivables from farmers in Brazil, net (1) 69 93 Other 129 154 Total $ 678 $ 823 (1) These non-current assets arise primarily from Bunge's Brazilian operations and their realization could take several years. |
Summary of recorded investment in long-term receivables and the related allowance amounts from Brazilian farmers | The table below summarizes Bunge's recorded investment in long-term receivables from farmers in Brazil and the related allowance amounts. December 31, 2019 December 31, 2018 (US$ in millions) Recorded Investment Allowance Recorded Investment Allowance For which an allowance has been provided: Legal collection process (1) $ 95 $ 85 $ 105 $ 89 Renegotiated amounts (2) 11 11 17 17 For which no allowance has been provided: Legal collection process (1) 50 — 51 — Renegotiated amounts (2) 5 — 10 — Other long-term receivables 4 — 16 — Total $ 165 $ 96 $ 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. Year Ended December 31, (US$ in millions) 2019 2018 Beginning balance $ 106 $ 113 Bad debt provisions 6 20 Recoveries (11 ) (8 ) Write-offs (2 ) (2 ) Foreign currency translation (3 ) (17 ) Ending balance $ 96 $ 106 |
OTHER CURRENT LIABILITIES (Tabl
OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of other current liabilities | Other current liabilities consist of the following: December 31, (US$ in millions) 2019 2018 Accrued liabilities $ 602 $ 618 Unrealized losses on derivative contracts at fair value 766 1,192 Advances on sales 411 405 Other 476 287 Total $ 2,255 $ 2,502 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Components of income from continuing operations before income tax | The components of Income (loss) from continuing operations before income tax are as follows: Year Ended December 31, (US$ in millions) 2019 2018 2017 United States $ (4 ) $ 233 $ 21 Non-United States (1,201 ) 223 209 Total $ (1,205 ) $ 456 $ 230 |
Components of income tax expense (benefit) | The components of the Income tax expense (benefit) are: Year Ended December 31, (US$ in millions) 2019 2018 2017 Current: United States $ 32 $ 33 $ 45 Non-United States 78 140 34 110 173 79 Deferred: United States (25 ) 4 20 Non-United States 1 2 (43 ) (24 ) 6 (23 ) Total $ 86 $ 179 $ 56 |
Reconciliation of income tax expense (benefit) | Reconciliation of the Income tax expense (benefit) if computed at the U.S. Federal income tax rate to Bunge's reported Income tax expense (benefit) is as follows: Year Ended December 31, (US$ in millions) 2019 2018 2017 Income (loss) from continuing operations before income tax $ (1,205 ) $ 456 $ 230 Income tax rate 21 % 21 % 35 % Income tax expense at the U.S. Federal tax rate (253 ) 96 80 Adjustments to derive effective tax rate: Foreign earnings taxed at different statutory rates (66 ) 24 (38 ) Valuation allowances 66 114 43 Fiscal incentives (1) (43 ) (43 ) (42 ) Foreign exchange on monetary items 12 24 (9 ) Tax rate changes (8 ) 4 (62 ) Non-deductible expenses 11 8 27 Uncertain tax positions (29 ) 22 (48 ) Deferred balance adjustments (5 ) — (4 ) Equity distributions, net (7 ) (31 ) — Transition tax (11 ) (15 ) 105 Tax exempt investments — — (14 ) Tax credits (7 ) (5 ) (8 ) Incremental tax on future distributions — (26 ) 27 State taxes 3 8 (4 ) Goodwill impairment - Loders 28 — — Losses on Brazilian sugar and bioenergy contribution to joint venture 379 — — Other 16 (1 ) 3 Income tax (benefit) expense $ 86 $ 179 $ 56 (1) Fiscal incentives predominantly relate to investment incentives in Brazil that are exempt from Brazilian income tax. |
Components of deferred tax assets and liabilities and related valuation allowances | The primary components of the deferred tax assets and liabilities and the related valuation allowances are as follows: December 31, (US$ in millions) 2019 2018 Deferred income tax assets: Net operating loss carryforwards $ 530 $ 781 Operating lease obligations 239 — Employee benefits 110 116 Tax credit carryforwards 44 12 Inventories 1 — Accrued expenses and other 259 340 Total deferred tax assets 1,183 1,249 Less valuation allowances (404 ) (766 ) Deferred tax assets, net of valuation allowance 779 483 Deferred income tax liabilities: Property, plant and equipment 286 233 Operating lease assets 239 — Undistributed earnings of affiliates 9 6 Investments 13 16 Intangibles 119 100 Inventories — 26 Total deferred tax liabilities 666 381 Net deferred tax assets $ 113 $ 102 |
Reconciliation of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits follows: (US$ in millions) 2019 2018 2017 Balance at January 1, $ 390 $ 421 $ 409 Additions based on tax positions related to the current year 2 41 34 Additions based on tax positions related to prior years 7 21 13 Reductions for tax positions of prior years (27 ) (54 ) (43 ) Settlements with tax authorities (26 ) (1 ) — Expiration of statute of limitations (11 ) (19 ) (32 ) Reductions due to dispositions (19 ) — — Foreign currency translation (5 ) (19 ) 40 Balance at December 31, $ 311 $ 390 $ 421 |
Tax years subject to income tax examination by tax authorities | The table below reflects the tax years for which Bunge is subject to income tax examinations by tax authorities: Open Tax Years North America 2014 - 2019 South America 2013 - 2019 Europe 2006 - 2019 Asia-Pacific 2006 - 2019 As of December 31, 2019 , the Brazilian federal and state authorities have concluded examinations of the ICMS and PIS COFINS tax returns and have issued outstanding claims (plus applicable interest and penalties) of the following amounts: December 31, (US$ in millions) Years Examined 2019 2018 ICMS 1990 to Present $ 221 $ 264 PIS/COFINS 2004 through 2016 $ 268 $ 231 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
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 December 31, 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 5) $ — $ 3,703 $ 231 $ 3,934 $ — $ 4,286 $ 246 $ 4,532 Unrealized gain on derivative contracts (1) : Interest rate — 45 — 45 — 6 — 6 Foreign exchange — 331 — 331 — 473 — 473 Commodities 34 481 9 524 128 407 18 553 Freight 10 — — 10 6 — 6 12 Energy 56 — — 56 30 — — 30 Other (2) 47 370 — 417 67 98 — 165 Total assets $ 147 $ 4,930 $ 240 $ 5,317 $ 231 $ 5,270 $ 270 $ 5,771 Liabilities: Trade accounts payable (3) $ — $ 347 $ 31 $ 378 $ — $ 394 $ 47 $ 441 Unrealized loss on derivative contracts (4) : Interest rate — 4 — 4 — 42 — 42 Foreign exchange — 257 — 257 — 499 — 499 Commodities 49 388 31 468 152 446 23 621 Freight 10 — — 10 13 — 6 19 Energy 26 — 2 28 43 — 1 44 Equity — — — — — — — — Total liabilities $ 85 $ 996 $ 64 $ 1,145 $ 208 $ 1,381 $ 77 $ 1,666 (1) Unrealized gains on derivative contracts are generally included in Other current assets. There were $39 million and $3 million included in Other non-current assets at December 31, 2019 and December 31, 2018 , respectively. (2) Other includes the fair values of marketable securities and investments in Other current assets and Other non-current assets. (3) These payables are hybrid financial instruments for which Bunge has elected the fair value option. (4) Unrealized losses on derivative contracts are generally included in Other current liabilities. There were $1 million and $33 million included in Other non-current liabilities at December 31, 2019 and December 31, 2018 , respectively. |
Reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | The tables below present reconciliations for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the years ended December 31, 2019 and 2018 . These instruments were valued using pricing models that management believes reflect the assumptions that would be used by a marketplace participant. Year Ended December 31, 2019 (US$ in millions) Readily Marketable Inventories Derivatives, Net Trade Total Balance, January 1, 2019 $ 246 $ (6 ) $ (47 ) $ 193 Total gains and losses (realized/unrealized) included in Cost of goods sold (1) 310 (24 ) 23 309 Purchases 2,002 — (458 ) 1,544 Sales (2,935 ) — — (2,935 ) Issuances — (1 ) — (1 ) Settlements — 7 462 469 Transfers into Level 3 884 — (32 ) 852 Transfers out of Level 3 (276 ) — 21 (255 ) Balance, December 31, 2019 $ 231 $ (24 ) $ (31 ) $ 176 1) Readily marketable inventories, derivatives, net and trade accounts payable, include gains/(losses) of $214 million , $(25) million and $0 million , respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at December 31, 2019 . Year Ended December 31, 2018 (US$ in millions) Readily Marketable Inventories Derivatives, Net Trade Total Balance, January 1, 2018 $ 365 $ 2 $ (116 ) $ 251 Total gains and losses (realized/unrealized) included in Cost of goods sold (1) 144 (11 ) 26 159 Purchases 1,770 12 (294 ) 1,488 Sales (2,585 ) — — (2,585 ) Issuances — (11 ) — (11 ) Settlements — 13 434 447 Transfers into Level 3 774 (10 ) (79 ) 685 Transfers out of Level 3 (222 ) (1 ) (18 ) (241 ) Balance, December 31, 2018 $ 246 $ (6 ) $ (47 ) $ 193 1) Readily marketable inventories, derivatives, net and trade accounts payable, includes gains/(losses) of $72 million , $(24) million and $0 million , respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at December 31, 2018 . |
Reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | The tables below present reconciliations for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the years ended December 31, 2019 and 2018 . These instruments were valued using pricing models that management believes reflect the assumptions that would be used by a marketplace participant. Year Ended December 31, 2019 (US$ in millions) Readily Marketable Inventories Derivatives, Net Trade Total Balance, January 1, 2019 $ 246 $ (6 ) $ (47 ) $ 193 Total gains and losses (realized/unrealized) included in Cost of goods sold (1) 310 (24 ) 23 309 Purchases 2,002 — (458 ) 1,544 Sales (2,935 ) — — (2,935 ) Issuances — (1 ) — (1 ) Settlements — 7 462 469 Transfers into Level 3 884 — (32 ) 852 Transfers out of Level 3 (276 ) — 21 (255 ) Balance, December 31, 2019 $ 231 $ (24 ) $ (31 ) $ 176 1) Readily marketable inventories, derivatives, net and trade accounts payable, include gains/(losses) of $214 million , $(25) million and $0 million , respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at December 31, 2019 . Year Ended December 31, 2018 (US$ in millions) Readily Marketable Inventories Derivatives, Net Trade Total Balance, January 1, 2018 $ 365 $ 2 $ (116 ) $ 251 Total gains and losses (realized/unrealized) included in Cost of goods sold (1) 144 (11 ) 26 159 Purchases 1,770 12 (294 ) 1,488 Sales (2,585 ) — — (2,585 ) Issuances — (11 ) — (11 ) Settlements — 13 434 447 Transfers into Level 3 774 (10 ) (79 ) 685 Transfers out of Level 3 (222 ) (1 ) (18 ) (241 ) Balance, December 31, 2018 $ 246 $ (6 ) $ (47 ) $ 193 1) Readily marketable inventories, derivatives, net and trade accounts payable, includes gains/(losses) of $72 million , $(24) million and $0 million , respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at December 31, 2018 . |
DERIVATIVE INSTRUMENTS AND HE_2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of outstanding derivative instruments | The notional amount is used to compute interest or other payment streams to be made under the contract and is a measure of the Company’s level of activity. The Company discloses derivative notional amounts on a gross basis. (US$ in millions) December 31, 2019 December 31, 2018 Unit of Hedging instrument type: Fair value hedges of interest rate risk Carrying value of hedged debt $ 2,279 $ 2,229 $ Notional Cumulative adjustment to long-term debt from application of hedge accounting $ 37 $ (29 ) $ Notional Interest rate swap - notional amount $ 2,249 $ 2,266 $ Notional Fair value hedges of currency risk Carrying value of hedged debt $ 281 $ 312 $ Notional Cross currency swap - notional amount $ 281 $ 313 $ Notional Cash flow hedges of currency risk Foreign currency forward - notional amount $ 99 $ 50 $ Notional Foreign currency option - notional amount $ 75 $ — $ Notional Net investment hedges Foreign currency forward - notional amount $ 928 $ 1,888 $ Notional Carrying value of non-derivative hedging instrument $ 895 $ 912 $ Notional The table below summarizes the volume of economic derivatives as of December 31, 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. December 31, December 31, 2019 2018 Unit of Long (Short) Long (Short) Interest rate Swaps $ 4,062 $ (39 ) $ 3,349 $ (111 ) $ Notional FRAs $ 213 $ (418 ) $ 139 $ (149 ) $ Notional Currency Forwards $ 7,164 $ (9,983 ) $ 13,713 $ (13,701 ) $ Notional Swaps $ 191 $ (170 ) $ 127 $ (535 ) $ Notional Futures $ — $ (16 ) $ — $ (16 ) $ Notional Options $ 132 $ (157 ) $ 869 $ (919 ) Delta Agricultural commodities Forwards 27,914,141 (25,321,595 ) 25,523,840 (29,314,930 ) Metric Tons Swaps — (1,114,704 ) — (9,908,728 ) Metric Tons Futures — (1,960,051 ) 4,136,525 — Metric Tons Options — (115,232 ) 718,709 — Metric Tons Ocean freight FFA — (133 ) — (90 ) Hire Days FFA options 42 — 302 — Hire Days Natural gas Swaps 215,640 — 1,205,687 — MMBtus Futures 2,802,500 — 2,268,190 — MMBtus Energy - other Forwards 5,534,290 — 5,536,290 — Metric Tons Futures — — — (29,367 ) Metric Tons Swaps 239,836 — 188,800 — Metric Tons Other Swaps and futures $ 50 $ (14 ) $ 52 $ — $ 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 consolidated statements of income for the years ended December 31, 2019 , 2018 and 2017 . Gain (Loss) Recognized in Year Ended December 31, (US$ in millions) 2019 2018 2017 Income statement classification Type of derivative Net sales Hedge accounting Foreign currency $ (3 ) $ (2 ) $ — Cost of goods sold Hedge accounting Foreign currency $ — $ 1 $ — Commodities 20 — — Economic hedges Foreign currency 172 (220 ) (1 ) Commodities (50 ) 506 676 Other (1) 46 (25 ) 9 Total Cost of goods sold $ 188 $ 262 $ 684 Interest expense Hedge accounting Interest rate $ (12 ) $ (6 ) $ 13 Economic hedges Interest rate (10 ) (1 ) — Total Interest expense $ (22 ) $ (7 ) $ 13 Foreign exchange gains (losses) Hedge accounting Foreign currency $ 11 $ (10 ) $ — Economic hedges Foreign currency 33 34 22 Total Foreign exchange gains (losses) $ 44 $ 24 $ 22 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 $ (1 ) $ 1 $ — Gains and losses on derivatives used as cash flow hedges of foreign currency risk included in other comprehensive income (loss) during the period $ 15 $ (2 ) $ 14 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 $ (47 ) $ 48 $ (8 ) Foreign currency gains and losses on intercompany loans used as net investment hedges included in other comprehensive income (loss) during the period $ 17 $ 52 $ (111 ) Amounts released from Accumulated other comprehensive income (loss) during the period Cash flow hedge of foreign currency risk $ (5 ) $ — $ 37 Cash flow hedge of commodity risk $ (20 ) $ — $ — (1) Other includes the results from freight, energy and other derivatives. |
SHORT-TERM DEBT AND CREDIT FA_2
SHORT-TERM DEBT AND CREDIT FACILITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Short-term Debt [Abstract] | |
Short-term debt | December 31, (US$ in millions) 2019 2018 Lines of credit: Unsecured, variable interest rates from 2.63% to 60.00% $ 771 $ 750 Total short-term debt (1) $ 771 $ 750 (1) Includes $348 million and $136 million of local currency borrowings in certain Central and Eastern European, South American and Asia-Pacific countries at a weighted average interest rate of 27.16% and 23.61% as of December 31, 2019 and December 31, 2018 , respectively. |
LONG-TERM DEBT AND CREDIT FAC_2
LONG-TERM DEBT AND CREDIT FACILITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-term debt | Long-term debt obligations are summarized below. December 31, (US$ in millions) 2019 2018 Revolving credit facility expiring 2022 (1) $ — $ 500 Term loan due 2019 - fixed Yen interest rate of 0.96% (Tranche B) — 54 Term loan due 2024 - three-month Yen LIBOR plus 0.75% (Tranche A) (2) 281 258 Term loan due 2024 - three-month LIBOR plus 1.30% (Tranche B) (2) 89 85 3.50% Senior Notes due 2020 499 498 3.00% Senior Notes due 2022 398 397 1.85% Senior Notes due 2023—Euro 899 916 4.35% Senior Notes due 2024 596 595 3.25% Senior Notes due 2026 696 695 3.75% Senior Notes due 2027 595 594 Other 170 30 Subtotal 4,223 4,622 Less: Current portion of long-term debt (507 ) (419 ) Total long-term debt (3) $ 3,716 $ 4,203 (1) On December 16, 2019, Bunge extended the existing three -year revolving credit facility totaling $1.75 billion , scheduled to mature on December 12, 2020, for two additional years, to December 12, 2022. (2) On July 1, 2019, Bunge refinanced its unsecured Japanese yen 28.5 billion and $85 million Term Loan Agreement, dated as of December 12, 2014, which extends the maturity date to July 1, 2024. (3) Includes secured debt of $15 million and $17 million at December 31, 2019 and December 31, 2018 , respectively. |
Schedule of carrying amounts and fair values of long-term debt | The carrying amounts and fair values of long-term debt are as follows: December 31, 2019 December 31, 2018 (US$ in millions) Carrying Value Fair Value (Level 2) Carrying Value Fair Value (Level 2) Long-term debt, including current portion $ 4,223 $ 4,319 $ 4,622 $ 4,584 |
Principal maturities of long-term debt | Principal maturities of long-term debt at December 31, 2019 are as follows: (US$ in millions) 2020 $ 512 2021 13 2022 505 2023 903 2024 968 Thereafter 1,303 Total (1) $ 4,204 (1) Excludes components of long-term debt attributable to fair value hedge accounting of $37 million and deferred financing fees and unamortized premiums of $18 million . |
TRADE RECEIVABLES SECURITIZAT_2
TRADE RECEIVABLES SECURITIZATION PROGRAM (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Transfers and Servicing [Abstract] | |
Summary of cash flows and discounts of trade receivables securitization program | The trade receivables sold under the program are subject to specified eligibility criteria, including eligible currencies, and country and obligor concentration limits. On February 19, 2019, Bunge exercised a portion of the $300 million accordion feature under this program to increase the aggregate size of the facility by $100 million to an aggregate of $800 million . December 31, (US$ in millions) 2019 2018 Receivables sold which were derecognized from Bunge's balance sheet $ 801 $ 826 Deferred purchase price included in Other current assets $ 105 $ 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. Years Ended December 31, (US$ in millions) 2019 2018 2017 Gross receivables sold $ 10,120 $ 9,803 $ 10,022 Proceeds received in cash related to transfer of receivables $ 9,868 $ 9,484 $ 9,734 Cash collections from customers on receivables previously sold $ 8,434 $ 9,173 $ 9,659 Discounts related to gross receivables sold included in SG&A $ 15 $ 14 $ 9 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Components of net periodic benefit costs | The components of net periodic benefit costs for defined benefit pension plans and postretirement benefit plans are as follows: Pension Benefits December 31, Postretirement Benefits December 31, (US$ in millions) 2019 2018 2017 2019 2018 2017 Service cost $ 38 $ 39 $ 33 $ — $ — $ — Interest cost 43 40 36 5 5 8 Expected return on plan assets (47 ) (57 ) (46 ) — — — Amortization of prior service cost 2 1 — — — — Amortization of net loss 9 9 10 — — — Curtailment (gain) loss 2 (2 ) — — — — Settlement loss recognized — 4 — — — — Special termination benefit 1 — 9 — — — Net periodic benefit costs $ 48 $ 34 $ 42 $ 5 $ 5 $ 8 |
Schedule of effects of one-percentage point change in assumed healthcare cost trend rates | A one-percentage point change in assumed healthcare cost trend rates would have the following effects: (US$ in millions) One-percentage point increase One-percentage point decrease Effect on total service and interest cost $ — $ — Effect on postretirement benefit obligation $ 5 $ (4 ) |
Schedule of weighted-average assumptions used in determining the benefit obligations | The weighted-average actuarial assumptions used in determining the benefit obligation under the defined benefit pension and postretirement benefit plans are as follows: Pension Benefits December 31, Postretirement Benefits December 31, 2019 2018 2019 2018 Discount rate 2.8 % 3.7 % 6.1 % 8.3 % Increase in future compensation levels 3.2 % 3.2 % N/A N/A |
Schedule of weighted-average assumptions used in determining the net periodic benefit costs | The weighted-average actuarial assumptions used in determining the net periodic benefit cost under the defined benefit pension and postretirement benefit plans are as follows: Pension Benefits December 31, Postretirement Benefits December 31, 2019 2018 2017 2019 2018 2017 Discount rate 3.7 % 3.4 % 4.0 % 8.3 % 9.0 % 10.8 % Expected long-term rate of return on assets 5.1 % 6.0 % 6.2 % N/A N/A N/A Increase in future compensation levels 3.2 % 3.2 % 3.2 % N/A N/A N/A |
Changes in the defined benefit pension and postretirement benefit plans' benefit obligations, assets and funded status of plans recognized in the balance sheet | The following table sets forth in aggregate the changes in the defined benefit pension and postretirement benefit plans' benefit obligations, assets and funded status at December 31, 2019 and 2018 . A measurement date of December 31 was used for all plans. Pension Benefits December 31, Postretirement Benefits December 31, (US$ in millions) 2019 2018 2019 2018 Change in benefit obligations: Benefit obligation at the beginning of year $ 1,192 $ 1,073 $ 59 $ 67 Service cost 38 39 — — Interest cost 43 40 5 5 Plan amendments (3 ) 16 — — Plan curtailments (5 ) (2 ) — — Special termination benefits 1 — — — Actuarial (gain) loss, net 172 (84 ) 1 1 Employee contributions 3 3 1 1 Net transfers in (out) — 213 — — Plan settlements (2 ) (55 ) — — Benefits paid (49 ) (40 ) (8 ) (7 ) Expenses paid (2 ) (3 ) — — Impact of foreign exchange rates — (8 ) (2 ) (8 ) Benefit obligation at the end of year $ 1,388 $ 1,192 $ 56 $ 59 Change in plan assets: Fair value of plan assets at the beginning of year $ 957 $ 896 $ — $ — Actual return on plan assets 181 (36 ) — — Employer contributions 25 18 7 6 Employee contributions 3 3 1 1 Net transfers in (out) — 181 — — Plan settlements (2 ) (55 ) — — Benefits paid (49 ) (40 ) (8 ) (7 ) Expenses paid (2 ) (3 ) — — Impact of foreign exchange rates 1 (7 ) — — Fair value of plan assets at the end of year $ 1,114 $ 957 $ — $ — Funded (unfunded) status and net amounts recognized: Plan assets (less than) in excess of benefit obligation $ (274 ) $ (235 ) $ (56 ) $ (59 ) Net (liability) asset recognized in the balance sheet $ (274 ) $ (235 ) $ (56 ) $ (59 ) Amounts recognized in the balance sheet consist of: Non-current assets $ 14 $ 11 $ — $ — Current liabilities (6 ) (6 ) (5 ) (6 ) Non-current liabilities (282 ) (240 ) (51 ) (53 ) Net liability recognized $ (274 ) $ (235 ) $ (56 ) $ (59 ) |
Schedule of accumulated benefit obligation in excess of plan assets | The following table provides aggregated information about pension plants with a projected benefit obligation in excess of plan assets: Pension Benefits December 31, (US$ in millions) 2019 2018 Projected benefit obligation $ 1,252 $ 1,073 Fair value of plan assets $ 965 $ 827 The accumulated benefit obligation for the defined pension benefit plans was $1,304 million and $1,122 million at December 31, 2019 and 2018, respectively. The following table summarizes information related to aggregated defined benefit pension plans with an accumulated benefit obligation in excess of plan assets: Pension Benefits December 31, (US$ in millions) 2019 2018 Projected benefit obligation $ 1,252 $ 978 Accumulated benefit obligation $ 1,171 $ 938 Fair value of plan assets $ 964 $ 758 |
Fair values of defined pension plan assets | The fair values of Bunge's defined benefit pension plans' assets at the measurement date, by category, are as follows: December 31, 2019 (US$ in millions) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash $ 12 $ 12 $ — $ — Equities: Mutual funds (1) 449 449 — — Fixed income securities: Mutual funds (2) 581 547 34 — Others (3) 72 29 31 12 Total $ 1,114 $ 1,037 $ 65 $ 12 December 31, 2018 (US$ in millions) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash $ 16 $ 16 $ — $ — Equities: Mutual funds (1) 363 362 1 — Fixed income securities: Mutual funds (2) 536 498 38 — Others (3) 42 6 20 16 Total $ 957 $ 882 $ 59 $ 16 (1) This category represents a portfolio of equity investments comprised of equity index funds that invest in U.S. equities and non-U.S. equities. The U.S. equities are comprised of investments focusing on large, mid and small cap companies and non-U.S. equities are comprised of international, emerging markets, and real estate investment trusts. (2) This category represents a portfolio of fixed income investments in mutual funds comprised of investment grade U.S. government bonds and notes, foreign government bonds, and corporate bonds from diverse industries. (3) This category represents a portfolio consisting of a mixture of hedge funds, bonds, real estate and insurance contracts. |
Estimated future benefit payments | The following benefit payments, which reflect future service as appropriate, are expected to be paid related to defined benefit pension and postretirement benefit plans: (US$ in millions) Pension Benefit Payments Postretirement Benefit Payments 2020 $ 62 $ 5 2021 52 5 2022 53 5 2023 55 5 2024 58 5 2025 and onwards 309 23 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2019 and 2018 are the following amounts related to these matters: December 31, (US$ in millions) 2019 2018 Non-income tax claims $ 23 $ 94 Labor claims 50 78 Civil and other claims 88 95 Total $ 161 $ 267 |
Summary of tax examinations against Brazilian subsidiaries | The table below reflects the tax years for which Bunge is subject to income tax examinations by tax authorities: Open Tax Years North America 2014 - 2019 South America 2013 - 2019 Europe 2006 - 2019 Asia-Pacific 2006 - 2019 As of December 31, 2019 , the Brazilian federal and state authorities have concluded examinations of the ICMS and PIS COFINS tax returns and have issued outstanding claims (plus applicable interest and penalties) of the following amounts: December 31, (US$ in millions) Years Examined 2019 2018 ICMS 1990 to Present $ 221 $ 264 PIS/COFINS 2004 through 2016 $ 268 $ 231 |
Maximum potential future payments related to guarantees | Guarantees —Bunge has issued or was a party to the following guarantees at December 31, 2019 : (US$ in millions) Maximum Potential Future Payments Unconsolidated affiliates guarantee (1)(2) $ 300 Residual value guarantee (3) 254 Total $ 554 (1) Bunge has issued guarantees to certain financial institutions related to debt of certain of its unconsolidated affiliates. The terms of the guarantees are equal to the terms of the related financings which have maturity dates through 2034 . There are no recourse provisions or collateral that would enable Bunge to recover any amounts paid under these guarantees. In addition, a Bunge subsidiary has guaranteed the obligations of two of its affiliates and in connection therewith has secured its guarantee obligations through a pledge of one of its affiliate's shares plus loans receivable from the affiliate to the financial institutions in the event that the guaranteed obligations are enforced. Based on the amounts drawn under such debt facilities at December 31, 2019 , Bunge's potential liability was $168 million , and it has recorded a $16 million obligation related to these guarantees. (2) Bunge has issued guarantees to certain third parties related to the performance of its unconsolidated affiliates. The terms of the guarantees are equal to the completion date of a port terminal which is expected to be completed in 2020 . There are no recourse provisions or collateral that would enable Bunge to recover any amounts paid under these guarantees. At December 31, 2019 , Bunge's maximum potential future payments under these performance guarantees was $46 million , and no obligation has been recorded related to these guarantees. (3) Bunge has issued guarantees to certain financial institutions which are party to certain operating lease arrangements for railcars and barges. These guarantees provide for a minimum residual value to be received by the lessor at the conclusion of the lease term. These leases expire at various dates from 2020 through 2026 . At December 31, 2019 , no |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of after-tax components of accumulated other comprehensive income (loss) attributable to Bunge | The following table summarizes the balances of related after-tax components of Accumulated other comprehensive income (loss) attributable to Bunge: (US$ in millions) Foreign Exchange Translation Adjustment (1) Deferred Gains (Losses) on Hedging Activities Pension and Other Postretirement Liability Adjustments Unrealized Gains (Losses) on Investments Accumulated Other Comprehensive Income (Loss) Balance January 1, 2017 $ (5,734 ) $ (102 ) (145 ) 3 (5,978 ) Other comprehensive income (loss) before reclassifications 187 (105 ) 5 2 89 Amount reclassified from accumulated other comprehensive income — (37 ) — (4 ) (41 ) Net-current period other comprehensive income (loss) 187 (142 ) 5 (2 ) 48 Balance, December 31, 2017 (5,547 ) $ (244 ) (140 ) 1 (5,930 ) Other comprehensive income (loss) before reclassifications (1,119 ) 99 (16 ) — (1,036 ) Amount reclassified from accumulated other comprehensive income (loss) 29 — 3 (1 ) 31 Net-current period other comprehensive income (loss) (1,090 ) 99 (13 ) (1 ) (1,005 ) Balance, December 31, 2018 (6,637 ) $ (145 ) (153 ) — (6,935 ) Other comprehensive income (loss) before reclassifications (119 ) 1 (24 ) — (142 ) Amount reclassified from accumulated other comprehensive income (loss) 1,493 (26 ) (14 ) — 1,453 Net-current period other comprehensive income (loss) 1,374 (25 ) (38 ) — 1,311 Balance, December 31, 2019 $ (5,263 ) $ (170 ) $ (191 ) $ — $ (5,624 ) (1) Bunge has significant operating subsidiaries in Brazil, Argentina, North America, Europe and Asia-Pacific. The functional currency of Bunge's subsidiaries is generally the local currency. During the second quarter of 2018 , it was determined that Argentina's economy should be considered highly inflationary, and as such, beginning on July 1, 2018 , Bunge's Argentine subsidiaries changed their functional currency from the Argentine peso |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 12 Months Ended |
Dec. 31, 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: Year Ended December 31, (US$ in millions, except for share data) 2019 2018 2017 Income (loss) from continuing operations $ (1,291 ) $ 277 $ 174 Net (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests 11 (20 ) (14 ) Income (loss) from continuing operations attributable to Bunge (1,280 ) 257 160 Convertible preference share dividends (34 ) (34 ) (34 ) Adjustment of redeemable noncontrolling interest (1) (8 ) — — Income (loss) from discontinued operations, net of tax — 10 — Net income (loss) available to Bunge common shareholders - Basic and diluted $ (1,322 ) $ 233 $ 126 Weighted-average number of common shares outstanding: Basic 141,492,289 140,968,980 140,365,549 Effect of dilutive shares: —stock options and awards (2) — 734,803 899,528 —convertible preference shares (3) — — — Diluted 141,492,289 141,703,783 141,265,077 Basic earnings (loss) per common share: Net income (loss) from continuing operations $ (9.34 ) $ 1.58 $ 0.90 Net income (loss) from discontinued operations — 0.07 — Net income (loss) attributable to Bunge common shareholders—basic $ (9.34 ) $ 1.65 $ 0.90 Diluted earnings (loss) per common share: Net income (loss) from continuing operations $ (9.34 ) $ 1.57 $ 0.89 Net income (loss) from discontinued operations — 0.07 — Net income (loss) attributable to Bunge common shareholders—diluted $ (9.34 ) $ 1.64 $ 0.89 (1) The redemption value adjustment of the Company's redeemable noncontrolling interest is deducted from income (loss) as discussed further in Note 23 . Redeemable Noncontrolling Interests. (2) The weighted-average common shares outstanding-diluted excludes approximately 7 million , 4 million and 4 million stock options and contingently issuable restricted stock units, which were not dilutive and not included in the computation of earnings per share for the years ended December 31, 2019 , 2018 and 2017 , respectively. (3) Weighted-average common shares outstanding-diluted for the year ended December 31, 2019 , 2018 and 2017 excludes approximately 8 million weighted-average common shares that are issuable upon conversion of the convertible preference shares that were not dilutive and not included in the weighted-average number of common shares outstanding, respectively. |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Assumptions used to estimate fair value of stock options | The risk-free interest rate is based on U.S. Treasury zero-coupon bonds with a term equal to the expected option term of the respective grants and grant dates. December 31, Assumptions: 2019 2018 2017 Expected option term (in years) 5.97 6.31 5.86 Expected dividend yield 3.81 % 2.44 % 2.09 % Expected volatility 25.91 % 25.57 % 24.85 % Risk-free interest rate 2.36 % 2.75 % 2.21 % |
Summary of stock option activity | A summary of option activity under the plans for the year ended December 31, 2019 is presented below: Options Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at January 1, 2019 6,122,304 $ 70.93 Granted 1,163,100 $ 52.53 Exercised (332,942 ) $ 50.43 Forfeited or expired (1,144,443 ) $ 72.75 Outstanding at December 31, 2019 5,808,019 $ 68.06 4.63 $ 12 Exercisable at December 31, 2019 4,542,233 $ 70.16 3.46 $ 8 |
Summary of restricted stock unit activity | A summary of restricted stock unit activity under Bunge's plans for the year ended December 31, 2019 is presented below. Restricted Stock Units Shares Weighted-Average Grant-Date Fair Value Restricted stock units at January 1, 2019 1,873,293 $ 69.29 Granted 1,208,335 53.01 Vested/issued (2) (518,596 ) 59.79 Forfeited/cancelled (2) (763,552 ) 60.37 Restricted stock units at December 31, 2019 (1) 1,799,480 $ 64.89 (1) Includes accrued unvested dividends, which are payable in Bunge's common shares upon vesting of underlying restricted stock units. (2) During the year ended December 31, 2019 , Bunge issued 369,119 common shares, net of common shares withheld to cover taxes, including related common shares representing accrued dividends, with a weighted-average fair value of $59.79 per share. During the year ended December 31, 2019 , 31,627 performance-based restricted stock units vested. During the year ended December 31, 2019 , Bunge canceled approximately 454,426 shares related to performance-based restricted stock unit awards that did not vest due to non-achievement of performance targets. |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Components of lease expense | The components of lease expense were as follows: (US$ in millions) Year Ended Operating lease cost $ 322 Short-term lease cost 703 Variable lease cost 20 Sublease income (125 ) Total lease cost $ 920 |
Supplemental cash flow information related to leases | Supplemental cash flow information related to leases was as follows: Year Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows associated with operating leases $ 320 Supplemental non-cash information: Right-of-use assets obtained in exchange for lease obligations $ 256 |
Maturities of lease liabilities | Maturities of lease liabilities for operating leases as of December 31, 2019 , are as follows: (US$ in millions) 2020 $ 243 2021 196 2022 149 2023 108 2024 55 Thereafter 108 Total lease payments (1) 859 Less imputed interest 104 Present value of lease liabilities, as separately presented on the condensed consolidated balance sheet $ 755 (1) Minimum lease payments have not been reduced by minimum sublease income receipts of $34 million due in future periods under non-cancelable subleases. Non-cancelable subleases primarily relate to agreements with third parties for the use of portions of certain facilities with remaining sublease terms of approximately six years , as well as an agreement with an unconsolidated joint venture in which the Company subleases rail cars with remaining sublease terms of approximately three to four years . Additionally, the Company may enter into re-let agreements to sell the right to use ocean freight vessels under time charter agreements when excess capacity is available. |
Future minimum lease payments | Future minimum lease payments by year and in the aggregate under non-cancelable operating leases with initial term of one year or more at December 31, 2018 are as follows: (US$ in millions) 2019 $ 134 2020 107 2021 84 2022 58 2023 48 Thereafter 126 Total (1) $ 557 (1) Minimum lease payments have not been reduced by minimum sublease income receipts of $43 million due in future periods under non-cancelable subleases. |
Future minimum payment obligations | Future minimum payment obligations due under these agreements as of December 31, 2018 are as follows: (US$ in millions) 2019 $ 172 2020 and 2021 176 2022 and 2023 121 2024 and thereafter 37 Total $ 506 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Operating Segment Information | (US$ in millions) Agribusiness Edible Oil Products Milling Products Sugar and Bioenergy Fertilizer Other (1) Total 2019 Net sales to external customers $ 28,407 $ 9,186 $ 1,739 $ 1,288 $ 520 $ — $ 41,140 Inter—segment revenues 4,784 153 1 1 28 (4,967 ) — Foreign exchange gains (losses) (32 ) — 4 (89 ) — — (117 ) Noncontrolling interests (1) 2 7 — — (3 ) 5 11 Other income (expense)—net 108 (3 ) 5 (7 ) (5 ) 75 173 Segment EBIT (3) 491 59 59 (1,623 ) 54 69 (891 ) Depreciation, depletion and amortization (254 ) (159 ) (54 ) (74 ) (7 ) — (548 ) Investments in affiliates 457 — 13 357 — — 827 Total assets 12,123 3,789 1,377 430 348 250 18,317 Capital expenditures 222 149 22 118 2 11 524 2018 Net sales to external customers $ 32,206 $ 9,129 $ 1,691 $ 2,257 $ 460 $ — $ 45,743 Inter—segment revenues 4,641 161 — 19 2 (4,823 ) — Foreign exchange gains (losses) (104 ) — 2 7 (6 ) — (101 ) Noncontrolling interests (1) (14 ) (12 ) — 1 (2 ) 7 (20 ) Other income (expense)—net 79 (8 ) (3 ) 4 — (24 ) 48 Segment EBIT (4) 645 122 90 (135 ) 39 (24 ) 737 Discontinued operations (2) — — — — — 10 10 Depreciation, depletion and amortization (257 ) (153 ) (58 ) (146 ) (8 ) — (622 ) Investments in affiliates 406 — — 45 — — 451 Total assets 11,865 3,940 1,448 1,681 330 161 19,425 Capital expenditures 219 129 23 110 5 7 493 2017 Net sales to external customers $ 31,741 $ 8,018 $ 1,575 $ 4,054 $ 406 $ — $ 45,794 Inter—segment revenues 4,323 154 5 45 4 (4,531 ) — Foreign exchange gains (losses) 85 3 (3 ) 11 (1 ) — 95 Noncontrolling interests (1) (9 ) (8 ) — — (2 ) 5 (14 ) Other income (expense)—net 56 (7 ) (5 ) (4 ) — — 40 Segment EBIT (5) 256 126 63 (12 ) 3 — 436 Depreciation, depletion and amortization (267 ) (105 ) (61 ) (164 ) (12 ) — (609 ) Investments in affiliates 411 — — 50 — — 461 Total assets 12,094 2,610 1,460 2,195 330 182 18,871 Capital expenditures 318 136 45 139 9 15 662 (1) Includes the noncontrolling interests' share of interest and tax to reconcile to consolidated noncontrolling interests. (2) Represents Net income (loss) from discontinued operations. (3) 2019 EBIT includes a $55 million loss in the Sugar & Bioenergy segment, $49 million in Brazil and $6 million in North America, due to the dispositions of certain subsidiaries and equity investments, which are recorded in Other income (expense)-net. Additionally, 2019 EBIT includes a $19 million gain in the Milling Products segment in Brazil, on the sale of certain assets, which are recorded in Other income (expense)-net. Bunge recorded pre-tax, impairment charges of $1,825 million , of which $37 million , $1,678 million and $110 million are in Selling, general and administrative expenses, Cost of goods sold and Other income (expense)—net, respectively. Of these pre-tax impairment charges, $1,535 million was allocated to Sugar and Bioenergy, $154 million to Edible Oil Products, $105 million to Agribusiness, $29 million to Milling Products, and $2 million to Other. (4) 2018 EBIT includes a $16 million loss in the Sugar & Bioenergy segment and a $10 million loss in the Agribusiness segment, due to the dispositions of certain equity investments, which are recorded in Other income (expense)-net. In addition, Bunge recorded pre-tax, impairment charges of $18 million , of which $7 million , $10 million and $1 million are in Selling, general and administrative expenses, Cost of goods sold and Other income (expense)—net, respectively. Of these pre-tax impairment charges, $12 million was allocated to Agribusiness, $5 million to Sugar and Bioenergy and $1 million to Edible Oil Products. (5) 2017 EBIT includes a $9 million gain related to the disposition of a subsidiary in the Agribusiness segment in Brazil, which is recorded in Other income (expense)-net. In addition, Bunge recorded pre-tax, impairment charges of $52 million , of which $19 million , $16 million and $17 million are in Selling, general and administrative expenses, Cost of goods sold and Other income (expense)—net, respectively. Of these pre-tax impairment charges, $41 million was allocated to Agribusiness, $7 million to Sugar and Bioenergy, $3 million to Edible Oil Products, and $1 million to Milling Products. |
Reconciliation of total segment EBIT to net income attributable to Bunge | A reconciliation of total segment EBIT to net income attributable to Bunge follows: Year Ended December 31, (US$ in millions) 2019 2018 2017 Total segment EBIT from continuing operations $ (891 ) $ 737 $ 436 Interest income 31 31 38 Interest expense (339 ) (339 ) (263 ) Income tax (expense) benefit (86 ) (179 ) (56 ) Income (loss) from discontinued operations, net of tax — 10 — Noncontrolling interests' share of interest and tax 5 7 5 Net income (loss) attributable to Bunge $ (1,280 ) $ 267 $ 160 |
Net sales by product group to external customers | Net sales by product group to external customers were as follows: Year Ended December 31, (US$ in millions) 2019 2018 2017 Agricultural Commodity Products $ 28,407 $ 32,206 $ 31,741 Edible Oil Products 9,186 9,129 8,018 Wheat Milling Products 1,050 1,037 988 Corn Milling Products 689 654 587 Sugar and Bioenergy Products 1,288 2,257 4,054 Fertilizer Products 520 460 406 Total $ 41,140 $ 45,743 $ 45,794 |
Geographic area information for net sales to external customers, determined based on the location of the subsidiary making the sale, and long-lived assets | Geographic area information for net sales to external customers, determined based on the location of the subsidiary making the sale, and long-lived assets follows: Year Ended December 31, (US$ in millions) 2019 2018 2017 Net sales to external customers: Europe $ 15,278 $ 17,802 $ 16,313 United States 9,147 9,955 10,128 Asia-Pacific 8,019 8,651 8,613 Brazil 5,195 5,553 7,040 Argentina 1,015 1,166 1,433 Canada 1,246 1,216 1,114 Rest of world 1,240 1,400 1,153 Total $ 41,140 $ 45,743 $ 45,794 Year Ended December 31, (US$ in millions) 2019 2018 2017 Long-lived assets (1) : Brazil $ 1,065 $ 1,994 $ 2,406 United States 1,413 1,561 1,267 Europe 2,057 1,912 1,485 Asia-Pacific 613 679 483 Canada 448 401 440 Argentina 190 161 216 Rest of world 381 382 341 Total $ 6,167 $ 7,090 $ 6,638 (1) Long-lived assets include Property, plant and equipment, net, Goodwill and Other intangible assets, net, Investments in affiliates and non-current assets held for sale. |
Disaggregation of net sales to external customers | Year Ended December 31, 2019 (US$ in millions) Agribusiness Edible Oil Products Milling Products Sugar and Bioenergy Fertilizer Total Sales from other arrangements $ 27,457 $ 1,953 $ 71 $ 729 $ — $ 30,210 Sales from contracts with customers 950 7,233 1,668 559 520 10,930 Net sales to external customers $ 28,407 $ 9,186 $ 1,739 $ 1,288 $ 520 $ 41,140 |
QUARTERLY FINANCIAL INFORMATI_2
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | Quarter (US$ in millions, except per share data) First Second Third Fourth Year 2019 Net sales $ 9,938 $ 10,096 $ 10,323 $ 10,783 $ 41,140 Gross profit 437 512 (978 ) 571 542 Income (loss) from continuing operations 50 212 (1,482 ) (71 ) (1,291 ) Income (loss) from discontinued operations, net of tax — — — — — Net income (loss) 50 212 (1,482 ) (71 ) (1,291 ) Net income (loss) attributable to Bunge 45 214 (1,488 ) (51 ) (1,280 ) Earnings (loss) per common share—basic (1) Net income (loss) from continuing operations $ 0.26 $ 1.46 $ (10.57 ) $ (0.48 ) $ (9.34 ) Net income (loss) from discontinued operations — — — — — Net income (loss) attributable to Bunge common shareholders $ 0.26 $ 1.46 $ (10.57 ) $ (0.48 ) $ (9.34 ) Earnings (loss) per common share—diluted (1) Net income (loss) from continuing operations $ 0.26 $ 1.43 $ (10.57 ) $ (0.48 ) $ (9.34 ) Net income (loss) from discontinued operations — — — — — Net income (loss) attributable to Bunge common shareholders $ 0.26 $ 1.43 $ (10.57 ) $ (0.48 ) $ (9.34 ) 2018 Net sales $ 10,641 $ 12,147 $ 11,412 $ 11,543 $ 45,743 Gross profit 384 542 918 422 2,266 Income (loss) from continuing operations (17 ) (17 ) 367 (56 ) 277 Income (loss) from discontinued operations, net of tax (2 ) 7 7 (2 ) 10 Net income (loss) (19 ) (10 ) 374 (58 ) 287 Net income (loss) attributable to Bunge (21 ) (12 ) 365 (65 ) 267 Earnings (loss) per common share—basic (1) Net income (loss) from continuing operations $ (0.20 ) $ (0.20 ) $ 2.48 $ (0.51 ) $ 1.58 Net income (loss) from discontinued operations (0.01 ) 0.05 0.05 (0.01 ) 0.07 Net income (loss) attributable to Bunge common shareholders $ (0.21 ) $ (0.15 ) $ 2.53 $ (0.52 ) $ 1.65 Earnings (loss) per common share—diluted (1) Net income (loss) from continuing operations $ (0.20 ) $ (0.20 ) $ 2.39 $ (0.51 ) $ 1.57 Net income (loss) from discontinued operations (0.01 ) 0.05 0.05 (0.01 ) 0.07 Net income (loss) attributable to Bunge common shareholders $ (0.21 ) $ (0.15 ) $ 2.44 $ (0.52 ) $ 1.64 (1) Earnings per share attributable to Bunge common shareholders for both basic and diluted is computed independently for each period presented. As a result, the sum of the quarterly earnings per share for the years ended December 31, 2019 and 2018 may not equal the total computed for the year. |
NATURE OF BUSINESS, BASIS OF _4
NATURE OF BUSINESS, BASIS OF PRESENTATION, AND SIGNIFICANT ACCOUNTING POLICIES - ADDITIONAL INFORMATION (Details) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2019USD ($)mill | Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Description of Business | ||||
Number of reportable segments | segment | 5 | |||
Principles of Consolidation | ||||
Maximum percentage ownership for interests reported as noncontrolling interests in subsidiaries | 100.00% | 100.00% | ||
Trade Accounts Receivable and Secured Advances to Suppliers | ||||
Deferred fees or costs related to secured advances to suppliers | $ 0 | |||
Imputed interest to be amortized | $ 0 | 0 | ||
Additional interest income accrued | 0 | |||
Research and Development | ||||
Research and development expenses | $ 15 | $ 15 | $ 20 | |
Buildings | Minimum | ||||
Trade Accounts Receivable and Secured Advances to Suppliers | ||||
Useful lives for property, plant and equipment | 10 years | |||
Buildings | Maximum | ||||
Trade Accounts Receivable and Secured Advances to Suppliers | ||||
Useful lives for property, plant and equipment | 50 years | |||
Machinery and equipment | Minimum | ||||
Trade Accounts Receivable and Secured Advances to Suppliers | ||||
Useful lives for property, plant and equipment | 7 years | |||
Machinery and equipment | Maximum | ||||
Trade Accounts Receivable and Secured Advances to Suppliers | ||||
Useful lives for property, plant and equipment | 25 years | |||
Furniture, fixtures and other | Minimum | ||||
Trade Accounts Receivable and Secured Advances to Suppliers | ||||
Useful lives for property, plant and equipment | 3 years | |||
Furniture, fixtures and other | Maximum | ||||
Trade Accounts Receivable and Secured Advances to Suppliers | ||||
Useful lives for property, plant and equipment | 20 years | |||
BP Bunge Bioenergia | ||||
Description of Business | ||||
Ownership interest (as a percent) | 50.00% | 50.00% | ||
Number of sugar mills in Brazil | mill | 11 |
NATURE OF BUSINESS, BASIS OF _5
NATURE OF BUSINESS, BASIS OF PRESENTATION, AND SIGNIFICANT ACCOUNTING POLICIES - CASH, CASH EQUIVALENTS AND RESTRICTED CASH RECONCILIATION (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 320 | $ 389 | $ 601 | |
Restricted Cash, Current | 2 | 4 | 4 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 322 | $ 393 | $ 605 | $ 938 |
NATURE OF BUSINESS, BASIS OF _6
NATURE OF BUSINESS, BASIS OF PRESENTATION, AND SIGNIFICANT ACCOUNTING POLICIES - ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Jan. 01, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease assets | $ 796 | |
Operating lease liability | 755 | |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease assets | $ 1,006 | |
Operating lease liability | 962 | |
Prepaid lease balance | $ 44 | |
Accounting Standards Update 2018-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Reclassification from AOCI to Retained Earnings | $ 21 |
GLOBAL COMPETITIVENESS PROGRA_3
GLOBAL COMPETITIVENESS PROGRAM AND PORTFOLIO RATIONALIZATION INITIATIVES - NARRATIVE (Details) - USD ($) $ in Millions | Dec. 02, 2019 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Restructuring Cost and Reserve [Line Items] | ||||||
Impairment charges | $ 1,825 | $ 18 | $ 52 | |||
Brazilian Sugar And Bioenergy Joint Venture | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Proceeds from transaction | $ 775 | |||||
Minimum timing private sale rights | 18 months | |||||
Minimum timing of initial public offering after closing | 2 years | |||||
Non-recourse debt | Brazilian Sugar And Bioenergy Joint Venture | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Proceeds from transaction | $ 700 | |||||
Cost of goods sold | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Charges incurred on sale or disposal of long-lived assets | 1,524 | |||||
Impairment charges | $ 65 | $ 1,524 | 1,678 | 10 | 16 | |
Selling, general and administrative expenses | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Impairment charges | 37 | 7 | 19 | |||
Sugar and Bioenergy | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Impairment charges | 1,535 | 5 | 7 | |||
Agribusiness | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Impairment charges | 105 | 12 | 41 | |||
Edible Oil Products | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Impairment charges | 154 | 1 | 3 | |||
Milling Products | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Impairment charges | 29 | 1 | ||||
Global Competitiveness Program | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Severance and Other Employee Benefit Costs | 29 | 22 | 59 | |||
Severance and other employee benefit costs | 46 | 60 | 77 | |||
Global Competitiveness Program | Cost of goods sold | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Severance and other employee benefit costs | 4 | 9 | 35 | |||
Global Competitiveness Program | Selling, general and administrative expenses | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Severance and other employee benefit costs | 42 | 51 | 55 | |||
Global Competitiveness Program | Sugar and Bioenergy | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Severance and Other Employee Benefit Costs | 0 | 2 | 1 | |||
Severance and other employee benefit costs | 2 | 7 | 4 | |||
Global Competitiveness Program | Agribusiness | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Severance and Other Employee Benefit Costs | 19 | 15 | 39 | |||
Severance and other employee benefit costs | 29 | 39 | 49 | |||
Global Competitiveness Program | Edible Oil Products | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Severance and Other Employee Benefit Costs | 6 | 2 | 12 | |||
Severance and other employee benefit costs | 10 | 7 | 16 | |||
Global Competitiveness Program | Milling Products | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Severance and Other Employee Benefit Costs | 4 | 1 | 6 | |||
Severance and other employee benefit costs | 5 | 4 | 7 | |||
Global Competitiveness Program | Fertilizer | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Severance and Other Employee Benefit Costs | 0 | 2 | 1 | |||
Severance and other employee benefit costs | 0 | 3 | 1 | |||
Other Industrial Initiatives | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Severance and Other Employee Benefit Costs | 13 | |||||
Portfolio Rationalizing Initiatives | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Gain (loss) on sale or disposal of long-lived assets and other investments | (1,761) | $ (39) | $ (45) | |||
Portfolio Rationalizing Initiatives | Cost of goods sold | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Impairment and loss on sale | 152 | |||||
Portfolio Rationalizing Initiatives | Selling, general and administrative expenses | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Charges incurred on sale or disposal of long-lived assets | 2 | |||||
Impairment and loss on sale | 28 | |||||
Portfolio Rationalizing Initiatives | Other income | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Charges incurred on sale or disposal of long-lived assets | 49 | |||||
Loss on sale of equity method investment | 6 | |||||
Portfolio Rationalizing Initiatives | Sugar and Bioenergy | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Impairment charges | 1,590 | |||||
Portfolio Rationalizing Initiatives | Agribusiness | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Impairment charges | 100 | |||||
Portfolio Rationalizing Initiatives | Edible Oil Products | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Impairment charges | 41 | |||||
Portfolio Rationalizing Initiatives | Milling Products | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Impairment charges | 29 | |||||
Portfolio Rationalizing Initiatives | Fertilizer | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Impairment charges | $ 1 |
GLOBAL COMPETITIVENESS PROGRA_4
GLOBAL COMPETITIVENESS PROGRAM AND PORTFOLIO RATIONALIZATION INITIATIVES - RESTRUCTURING COSTS (Details) - Global Competitiveness Program - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||
Severance and Other Employee Benefit Costs | $ 29 | $ 22 | $ 59 |
Consulting and Professional Services | 7 | 30 | 18 |
Other Program Costs | 10 | 8 | 0 |
Total Program Costs | 46 | 60 | 77 |
Agribusiness | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance and Other Employee Benefit Costs | 19 | 15 | 39 |
Consulting and Professional Services | 4 | 18 | 10 |
Other Program Costs | 6 | 6 | 0 |
Total Program Costs | 29 | 39 | 49 |
Edible Oil Products | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance and Other Employee Benefit Costs | 6 | 2 | 12 |
Consulting and Professional Services | 2 | 4 | 4 |
Other Program Costs | 2 | 1 | 0 |
Total Program Costs | 10 | 7 | 16 |
Milling Products | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance and Other Employee Benefit Costs | 4 | 1 | 6 |
Consulting and Professional Services | 0 | 3 | 1 |
Other Program Costs | 1 | 0 | 0 |
Total Program Costs | 5 | 4 | 7 |
Sugar and Bioenergy | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance and Other Employee Benefit Costs | 0 | 2 | 1 |
Consulting and Professional Services | 1 | 4 | 3 |
Other Program Costs | 1 | 1 | 0 |
Total Program Costs | 2 | 7 | 4 |
Fertilizer | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance and Other Employee Benefit Costs | 0 | 2 | 1 |
Consulting and Professional Services | 0 | 1 | 0 |
Other Program Costs | 0 | 0 | 0 |
Total Program Costs | $ 0 | $ 3 | $ 1 |
GLOBAL COMPETITIVENESS PROGRA_5
GLOBAL COMPETITIVENESS PROGRAM AND PORTFOLIO RATIONALIZATION INITIATIVES - RESTRUCTURING RESERVE (Details) - Global Competitiveness Program - Severance and Other Employee Benefit Costs - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Reserve [Roll Forward] | ||
Beginning balance | $ 3 | $ 45 |
Charges incurred | 29 | 22 |
Cash payments | (21) | (64) |
Ending balance | $ 11 | $ 3 |
BUSINESS ACQUISITIONS AND DIS_3
BUSINESS ACQUISITIONS AND DISPOSITIONS - LODERS ACQUISITION (Details) - USD ($) | Mar. 01, 2018 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||||||||||
Goodwill | $ 611,000,000 | $ 727,000,000 | $ 611,000,000 | $ 727,000,000 | $ 515,000,000 | |||||||
Net income | $ 71,000,000 | $ 1,482,000,000 | $ (212,000,000) | $ (50,000,000) | $ 58,000,000 | $ (374,000,000) | $ 10,000,000 | $ 19,000,000 | $ 1,291,000,000 | (287,000,000) | $ (174,000,000) | |
Loders | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Interest acquired (as a percent) | 70.00% | |||||||||||
Purchase price in cash | $ 980,000,000 | |||||||||||
Goodwill | 242,000,000 | |||||||||||
Goodwill expected to be tax deductible | 0 | |||||||||||
Fair value of noncontrolling interest | 450,000,000 | |||||||||||
Loders | Acquisition-related costs | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Net income | $ 19,000,000 | |||||||||||
Loders | Senior Notes | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Aggregate principal amount | $ 1,000,000,000 | |||||||||||
Loders | Loders | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Ownership interest by minority shareholder | 30.00% |
BUSINESS ACQUISITIONS AND DIS_4
BUSINESS ACQUISITIONS AND DISPOSITIONS - ASSETS ACQUIRED AND LIABILITIES ASSUMED (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 01, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 611 | $ 727 | $ 515 | |
Loders | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 82 | |||
Accounts receivable | 146 | |||
Inventories | 406 | |||
Other current assets | 66 | |||
Property, plant and equipment | 411 | |||
Other intangible assets | 464 | |||
Goodwill | 242 | |||
Total assets | 1,817 | |||
Trade accounts payable | (109) | |||
Other current liabilities | (100) | |||
Deferred income taxes | (143) | |||
Other non-current liabilities | (35) | |||
Total liabilities | (387) | |||
Redeemable noncontrolling interest | (450) | |||
Net assets acquired | $ 980 |
BUSINESS ACQUISITIONS AND DIS_5
BUSINESS ACQUISITIONS AND DISPOSITIONS - INTANGIBLE ASSETS ACQUIRED (Details) - Loders $ in Millions | Mar. 01, 2018USD ($) |
Business Acquisition [Line Items] | |
Total Other intangible assets | $ 464 |
Customer Relationships | |
Business Acquisition [Line Items] | |
Useful life | 15 years |
Total Other intangible assets | $ 265 |
Intellectual property | |
Business Acquisition [Line Items] | |
Useful life | 10 years |
Total Other intangible assets | $ 120 |
Trade names | |
Business Acquisition [Line Items] | |
Useful life | 15 years |
Total Other intangible assets | $ 51 |
Favorable leases | |
Business Acquisition [Line Items] | |
Useful life | 38 years |
Total Other intangible assets | $ 26 |
Other | |
Business Acquisition [Line Items] | |
Total Other intangible assets | $ 2 |
BUSINESS ACQUISITIONS AND DIS_6
BUSINESS ACQUISITIONS AND DISPOSITIONS - PRO FORMA INFORMATION (Details) - USD ($) $ in Millions | 10 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||
Net sales | $ 1,331 | ||
Loders | |||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||
Income (loss) from continuing operations | $ 3 | ||
Net sales | $ 46,047 | $ 47,588 | |
Income (loss) from continuing operations | $ 298 | $ 129 |
BUSINESS ACQUISITIONS AND DIS_7
BUSINESS ACQUISITIONS AND DISPOSITIONS - OTHER ACQUISITIONS (Details) $ in Millions | Jan. 30, 2018USD ($)corn_mill | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Business Acquisition [Line Items] | ||||
Goodwill | $ 611 | $ 727 | $ 515 | |
Minsa Corporation | ||||
Business Acquisition [Line Items] | ||||
Purchase price | $ 75 | |||
Number of corn mills | corn_mill | 2 | |||
Property, plant and equipment | $ 37 | |||
Finite-lived intangibles assets | 20 | |||
Other assets and liabilities, net | (1) | |||
Goodwill | $ 19 |
BUSINESS ACQUISITIONS AND DIS_8
BUSINESS ACQUISITIONS AND DISPOSITIONS - DISPOSITIONS (Details) $ in Millions | Dec. 02, 2019USD ($) | Dec. 20, 2019processing_plantproduct |
Margarine and Mayonnaise Assets in Brazil | Held-for-sale | ||
Dispositions | ||
Number of production plants | processing_plant | 3 | |
Number of products | product | 2 | |
Brazilian Sugar And Bioenergy Joint Venture | ||
Dispositions | ||
Proceeds from transaction | $ 775 | |
Brazilian Sugar And Bioenergy Joint Venture | BP | ||
Dispositions | ||
Proceeds from transaction | 75 | |
Brazilian Sugar And Bioenergy Joint Venture | Non-recourse debt | ||
Dispositions | ||
Proceeds from transaction | $ 700 |
BUSINESS ACQUISITIONS AND DIS_9
BUSINESS ACQUISITIONS AND DISPOSITIONS - ASSETS HELD FOR SALE AND LIABILITIES HELD FOR SALE (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Assets held for sale | $ 72 | $ 0 |
Liabilities held for sale | 4 | $ 0 |
Held-for-sale | Margarine and Mayonnaise Assets in Brazil | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Inventories | 19 | |
Property, plant, and equipment, net | 49 | |
Other intangible assets, net | 4 | |
Assets held for sale | 72 | |
Other current liabilities | 4 | |
Liabilities held for sale | $ 4 |
TRADE STRUCTURED FINANCE PROG_2
TRADE STRUCTURED FINANCE PROGRAM (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
TRADE STRUCTURED FINANCE PROGRAM | |||
Net return from activities including fair value changes | $ 27 | $ 30 | |
Weighted-average interest rate of time deposits (as a percent) | 3.10% | 3.76% | |
Total net proceeds from issuances of LCs | $ 3,318 | $ 4,657 | $ 8,174 |
Time deposits and LCs presented net on the consolidated balance sheets | |||
TRADE STRUCTURED FINANCE PROGRAM | |||
Face value of time deposits, LCs, and foreign exchange contracts | $ 3,409 | $ 4,729 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
INVENTORIES | ||
Inventories | $ 5,038 | $ 5,871 |
Agribusiness | ||
INVENTORIES | ||
Inventories | 4,002 | 4,551 |
Readily marketable inventories at fair value | 3,796 | 4,365 |
Agribusiness | Merchandising Activities | ||
INVENTORIES | ||
Readily marketable inventories at fair value | 2,589 | 3,300 |
Edible Oil Products | ||
INVENTORIES | ||
Inventories | 770 | 742 |
Readily marketable inventories at fair value | 133 | 88 |
Milling Products | ||
INVENTORIES | ||
Inventories | 194 | 220 |
Sugar and Bioenergy | ||
INVENTORIES | ||
Inventories | 6 | 280 |
Readily marketable inventories at fair value | 5 | 79 |
Sugar and Bioenergy | Merchandising Activities | ||
INVENTORIES | ||
Readily marketable inventories at fair value | 0 | 74 |
Fertilizer | ||
INVENTORIES | ||
Inventories | $ 66 | $ 78 |
OTHER CURRENT ASSETS - COMPONEN
OTHER CURRENT ASSETS - COMPONENTS OF OTHER CURRENT ASSETS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Current Assets: | |||
Unrealized gains on derivative contracts, at fair value | $ 927 | $ 1,071 | |
Prepaid commodity purchase contracts | 153 | 253 | |
Secured advances to suppliers, net | 346 | 257 | |
Recoverable taxes, net | 476 | 500 | |
Margin deposits | 285 | 348 | |
Marketable securities, at fair value, and other short-term investments | 393 | 162 | |
Deferred purchase price receivable | 105 | 128 | |
Income taxes receivable | 37 | 102 | |
Prepaid expenses | 221 | 165 | |
Other | 170 | 185 | |
Total | 3,113 | 3,171 | |
Allowance on secured advance to farmers | 1 | 1 | |
Interest earned on secured advances to suppliers | $ 26 | $ 30 | $ 44 |
OTHER CURRENT ASSETS - MARKETAB
OTHER CURRENT ASSETS - MARKETABLE SECURITIES AND OTHER SHORT-TERM INVESTMENTS (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Marketable Securities and Other Short-Term Investments | ||
Total marketable securities and other short-term investments | $ 393 | $ 162 |
Marketable securities at fair value | 387 | 144 |
Unrealized gain on investments | 32 | |
Foreign government securities | ||
Marketable Securities and Other Short-Term Investments | ||
Total marketable securities and other short-term investments | 212 | 55 |
Corporate debt securities | ||
Marketable Securities and Other Short-Term Investments | ||
Total marketable securities and other short-term investments | 161 | 91 |
Certificate of deposits/time deposits | ||
Marketable Securities and Other Short-Term Investments | ||
Total marketable securities and other short-term investments | 0 | 15 |
Equity securities | ||
Marketable Securities and Other Short-Term Investments | ||
Total marketable securities and other short-term investments | 14 | 0 |
Other | ||
Marketable Securities and Other Short-Term Investments | ||
Total marketable securities and other short-term investments | $ 6 | $ 1 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment | |||
Gross book value | $ 8,160 | $ 9,885 | |
Less: accumulated depreciation and depletion | (4,028) | (4,684) | |
Total property, plant and equipment, net | 4,132 | 5,201 | |
Capitalized expenditures | 528 | 490 | $ 633 |
Capitalized interest on construction in progress | 1 | 4 | 6 |
Depreciation and depletion expense | 489 | 565 | $ 580 |
Land | |||
Property, Plant and Equipment | |||
Gross book value | 390 | 403 | |
Biological assets | |||
Property, Plant and Equipment | |||
Gross book value | 0 | 663 | |
Buildings | |||
Property, Plant and Equipment | |||
Gross book value | 2,046 | 2,139 | |
Machinery and equipment | |||
Property, Plant and Equipment | |||
Gross book value | 4,834 | 5,664 | |
Furniture, fixtures and other | |||
Property, Plant and Equipment | |||
Gross book value | 587 | 581 | |
Construction in progress | |||
Property, Plant and Equipment | |||
Gross book value | $ 303 | $ 435 |
GOODWILL (Details)
GOODWILL (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill | |||
Goodwill, gross at beginning of period | $ 1,259 | $ 1,047 | |
Accumulated impairment losses | (532) | (532) | |
Goodwill at end of year | 727 | 515 | |
Goodwill acquired | 261 | ||
Foreign currency translation | (8) | (49) | |
Goodwill impairment | (108) | 0 | $ 0 |
Goodwill, gross of impairments | 737 | 1,259 | 1,047 |
Accumulated impairment losses | (126) | (532) | (532) |
Goodwill at end of year | 611 | 727 | 515 |
Agribusiness | |||
Goodwill | |||
Goodwill, gross at beginning of period | 235 | 253 | |
Accumulated impairment losses | (2) | (2) | |
Goodwill at end of year | 233 | 251 | |
Goodwill acquired | 0 | ||
Foreign currency translation | (5) | (18) | |
Goodwill impairment | 0 | ||
Goodwill, gross of impairments | 230 | 235 | 253 |
Accumulated impairment losses | (2) | (2) | (2) |
Goodwill at end of year | 228 | 233 | 251 |
Edible Oil Products | |||
Goodwill | |||
Goodwill, gross at beginning of period | 331 | 107 | |
Accumulated impairment losses | (13) | (13) | |
Goodwill at end of year | 318 | 94 | |
Goodwill acquired | 242 | ||
Foreign currency translation | (4) | (18) | |
Goodwill impairment | (108) | ||
Goodwill, gross of impairments | 327 | 331 | 107 |
Accumulated impairment losses | (121) | (13) | (13) |
Goodwill at end of year | 206 | 318 | 94 |
Milling Products | |||
Goodwill | |||
Goodwill, gross at beginning of period | 178 | 172 | |
Accumulated impairment losses | (3) | (3) | |
Goodwill at end of year | 175 | 169 | |
Goodwill acquired | 19 | ||
Foreign currency translation | 1 | (13) | |
Goodwill impairment | 0 | ||
Goodwill, gross of impairments | 179 | 178 | 172 |
Accumulated impairment losses | (3) | (3) | (3) |
Goodwill at end of year | 176 | 175 | 169 |
Sugar and Bioenergy | |||
Goodwill | |||
Goodwill, gross at beginning of period | 514 | 514 | |
Accumulated impairment losses | (514) | (514) | |
Goodwill at end of year | 0 | 0 | |
Goodwill acquired | 0 | ||
Foreign currency translation | 0 | 0 | |
Goodwill impairment | 0 | ||
Goodwill, gross of impairments | 0 | 514 | 514 |
Accumulated impairment losses | 0 | (514) | (514) |
Goodwill at end of year | 0 | 0 | 0 |
Fertilizer | |||
Goodwill | |||
Goodwill, gross at beginning of period | 1 | 1 | |
Accumulated impairment losses | 0 | 0 | |
Goodwill at end of year | 1 | 1 | |
Goodwill acquired | 0 | ||
Foreign currency translation | 0 | 0 | |
Goodwill impairment | 0 | ||
Goodwill, gross of impairments | 1 | 1 | 1 |
Accumulated impairment losses | 0 | 0 | 0 |
Goodwill at end of year | $ 1 | $ 1 | $ 1 |
OTHER INTANGIBLE ASSETS (Detail
OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Intangible Assets, Net | |||
Gross carrying amount: | $ 874 | $ 990 | |
Accumulated amortization: | (291) | (293) | |
Other intangible assets, net | 583 | 697 | |
Aggregate amortization expense | 55 | $ 57 | $ 29 |
Estimated future aggregate amortization expense, year one | 36 | ||
Estimated future aggregate amortization expense, year two | 36 | ||
Estimated future aggregate amortization expense, year three | 36 | ||
Estimated future aggregate amortization expense, year four | 36 | ||
Estimated future aggregate amortization expense, year five | 36 | ||
Minimum | |||
Other Intangible Assets, Net | |||
Weighted-average amortization period | 10 years | ||
Maximum | |||
Other Intangible Assets, Net | |||
Weighted-average amortization period | 38 years | ||
Edible Oil Products | |||
Other Intangible Assets, Net | |||
Finite-lived intangible assets acquired | $ 465 | ||
Milling Products | |||
Other Intangible Assets, Net | |||
Finite-lived intangible assets acquired | 20 | ||
Trademarks/brands | |||
Other Intangible Assets, Net | |||
Gross carrying amount: | 190 | 235 | |
Accumulated amortization: | (81) | (106) | |
Finite-lived intangible assets acquired | 55 | ||
Licenses | |||
Other Intangible Assets, Net | |||
Gross carrying amount: | 11 | 12 | |
Accumulated amortization: | (9) | (10) | |
Port rights | |||
Other Intangible Assets, Net | |||
Gross carrying amount: | 85 | 141 | |
Accumulated amortization: | (22) | (37) | |
Customer Relationships | |||
Other Intangible Assets, Net | |||
Gross carrying amount: | 356 | 372 | |
Accumulated amortization: | (75) | (54) | |
Finite-lived intangible assets acquired | 282 | ||
Customer Relationships | Milling Products | |||
Other Intangible Assets, Net | |||
Impairment of intangible assets | 11 | ||
Patents | |||
Other Intangible Assets, Net | |||
Gross carrying amount: | 133 | 135 | |
Accumulated amortization: | (43) | (32) | |
Finite-lived intangible assets acquired | 120 | ||
Other | |||
Other Intangible Assets, Net | |||
Gross carrying amount: | 99 | 95 | |
Accumulated amortization: | $ (61) | (54) | |
Finite-lived intangible assets acquired | $ 28 |
IMPAIRMENTS - CHARGES (Details)
IMPAIRMENTS - CHARGES (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)investment | |
Impairments | |||||
Pre-tax, impairment charges | $ 1,825 | $ 18 | $ 52 | ||
Goodwill impairment | 108 | 0 | 0 | ||
Intangible asset impairment | 11 | ||||
Patents | |||||
Impairments | |||||
Intangible asset impairment | 7 | ||||
Other | |||||
Impairments | |||||
Pre-tax, impairment charges | 2 | ||||
Relocation of global headquarters | |||||
Impairments | |||||
Pre-tax, impairment charges | 22 | ||||
Loders | |||||
Impairments | |||||
Goodwill impairment | 108 | ||||
Fixed assets and various machinery and equipment | Brazil | |||||
Impairments | |||||
Property, plant and equipment impairment | 6 | ||||
Sugar and Bioenergy | |||||
Impairments | |||||
Pre-tax, impairment charges | 1,535 | 5 | 7 | ||
Goodwill impairment | 0 | ||||
Sugar and Bioenergy | Fixed assets and various machinery and equipment | Brazil | |||||
Impairments | |||||
Property, plant and equipment impairment | 5 | ||||
Agribusiness | |||||
Impairments | |||||
Pre-tax, impairment charges | 105 | 12 | 41 | ||
Goodwill impairment | 0 | ||||
Agribusiness | Property, plant and equipment at a port | Poland | |||||
Impairments | |||||
Property, plant and equipment impairment | 158 | 10 | |||
Agribusiness | Fixed assets and various machinery and equipment | Brazil | |||||
Impairments | |||||
Property, plant and equipment impairment | 1 | ||||
Agribusiness | Property, plant and equipment of feedmills, a port, and various machinery and equipment in Brazil | Poland | |||||
Impairments | |||||
Property, plant and equipment impairment | 25 | ||||
Edible Oil Products | |||||
Impairments | |||||
Pre-tax, impairment charges | 154 | 1 | 3 | ||
Goodwill impairment | 108 | ||||
Milling Products | |||||
Impairments | |||||
Pre-tax, impairment charges | 29 | 1 | |||
Goodwill impairment | 0 | ||||
Agribusiness and Sugar and Bioenergy | |||||
Impairments | |||||
Impairment of investments | $ 17 | ||||
Number of investment impaired | investment | 2 | ||||
BP Bunge Bioenergia | Sugar and Bioenergy | |||||
Impairments | |||||
Pre-tax, impairment charges | 1,526 | ||||
Selling, general and administrative expenses | |||||
Impairments | |||||
Pre-tax, impairment charges | 37 | 7 | $ 19 | ||
Cost of goods sold | |||||
Impairments | |||||
Pre-tax, impairment charges | $ 65 | $ 1,524 | 1,678 | 10 | 16 |
Other income (expense) | |||||
Impairments | |||||
Pre-tax, impairment charges | $ 110 | $ 1 | $ 17 |
INVESTMENTS IN AFFILIATES (Deta
INVESTMENTS IN AFFILIATES (Details) $ in Millions | Dec. 31, 2019USD ($) |
Agricola Alvorada S.A. | Agribusiness | |
Investments in Affiliates | |
Ownership interest (as a percent) | 37.00% |
Agrofel Grãos e Insumos | Agribusiness | |
Investments in Affiliates | |
Ownership interest (as a percent) | 30.00% |
Caiasa - Complejo Agroindustrial Angostura S.A | Agribusiness | |
Investments in Affiliates | |
Ownership interest (as a percent) | 33.30% |
G3 | Agribusiness | |
Investments in Affiliates | |
Ownership interest (as a percent) | 25.00% |
Navegacoes Unidas Tapajos S.A. | Agribusiness | |
Investments in Affiliates | |
Ownership interest (as a percent) | 50.00% |
Terminais do Graneis do Guaruja("TGG") | Agribusiness | |
Investments in Affiliates | |
Ownership interest (as a percent) | 57.00% |
Terminal Fronteira Norte Logstica S.A.("TFN") | Agribusiness | |
Investments in Affiliates | |
Ownership interest (as a percent) | 50.00% |
T6 port facility | Agribusiness | |
Investments in Affiliates | |
Ownership interest (as a percent) | 40.00% |
T6 Industrial crushing facility | Agribusiness | |
Investments in Affiliates | |
Ownership interest (as a percent) | 50.00% |
VAH | Agribusiness | |
Investments in Affiliates | |
Ownership interest (as a percent) | 45.00% |
VAH | Agribusiness | Wilmar International Limited | |
Investments in Affiliates | |
Ownership interest (as a percent) | 45.00% |
VAH | Agribusiness | Quang Dung | |
Investments in Affiliates | |
Ownership interest (as a percent) | 10.00% |
BP Bunge Bioenergia | |
Investments in Affiliates | |
Aggregate of all basis differences | $ 136 |
Ownership interest (as a percent) | 50.00% |
BP Bunge Bioenergia | Sugar and Bioenergy | |
Investments in Affiliates | |
Ownership interest (as a percent) | 50.00% |
ProMaiz | Sugar and Bioenergy | |
Investments in Affiliates | |
Ownership interest (as a percent) | 50.00% |
INVESTMENTS IN AFFILIATES - SUM
INVESTMENTS IN AFFILIATES - SUMMARIZED FINANCIAL INFORMATION (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity Method Investment, Summarized Financial Information, Assets [Abstract] | |||
Current assets | $ 1,809 | $ 897 | |
Noncurrent assets | 3,822 | 1,727 | |
Total assets | 5,631 | 2,624 | |
Current liabilities | 1,344 | 581 | |
Noncurrent liabilities | 2,028 | 839 | |
Total liabilities | 3,372 | 1,420 | |
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract] | |||
Net Sales | 3,611 | 3,923 | $ 2,953 |
Gross Profit | 359 | 264 | 157 |
Net income | $ 95 | $ 61 | $ 0 |
OTHER NON-CURRENT ASSETS - COMP
OTHER NON-CURRENT ASSETS - COMPOSITION (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Other Assets, Noncurrent [Abstract] | ||
Recoverable taxes, net | $ 48 | $ 112 |
Judicial deposits | 106 | 115 |
Other long-term receivables | 6 | 8 |
Income taxes receivable | 208 | 221 |
Long-term investments | 83 | 91 |
Affiliate loans receivable | 29 | 29 |
Long-term receivables from farmers in Brazil, net | 69 | 93 |
Other | 129 | 154 |
Total | 678 | 823 |
Allowance for recoverable taxes | $ 41 | $ 27 |
OTHER NON-CURRENT ASSETS - RECE
OTHER NON-CURRENT ASSETS - RECEIVABLES FROM FARMERS IN BRAZIL (Details) - Long-term receivables - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Aging of non-defaulted and renegotiated amounts | |||
Average recorded investment in long-term receivables | $ 186 | $ 215 | |
Recorded Investment | |||
Total | 165 | 199 | |
Allowance | 96 | 106 | $ 113 |
Legal collection process | |||
Recorded Investment | |||
For which an allowance has been provided | 95 | 105 | |
For which no allowance has been provided | 50 | 51 | |
Allowance | 85 | 89 | |
Renegotiated amounts | |||
Recorded Investment | |||
For which an allowance has been provided | 11 | 17 | |
For which no allowance has been provided | 5 | 10 | |
Allowance | 11 | 17 | |
Other long-term receivables | |||
Recorded Investment | |||
Other long-term receivables | $ 4 | $ 16 |
OTHER NON-CURRENT ASSETS - ALLO
OTHER NON-CURRENT ASSETS - ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) - Long-term receivables - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for Doubtful Accounts Related to Long Term Receivables | ||
Beginning balance | $ 106 | $ 113 |
Bad debt provisions | 6 | 20 |
Recoveries | (11) | (8) |
Write-offs | (2) | (2) |
Foreign currency translation | (3) | (17) |
Ending balance | $ 96 | $ 106 |
OTHER CURRENT LIABILITIES (Deta
OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Other Liabilities Disclosure [Abstract] | ||
Accrued liabilities | $ 602 | $ 618 |
Unrealized losses on derivative contracts at fair value | 766 | 1,192 |
Advances on sales | 411 | 405 |
Other | 476 | 287 |
Total | $ 2,255 | $ 2,502 |
INCOME TAXES - COMPONENTS (Deta
INCOME TAXES - COMPONENTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Components of Income From Operations Before Income Tax | |||
United States | $ (4) | $ 233 | $ 21 |
Non-United States | (1,201) | 223 | 209 |
Total | (1,205) | 456 | 230 |
Current: | |||
United States | 32 | 33 | 45 |
Non-United States | 78 | 140 | 34 |
Total | 110 | 173 | 79 |
Deferred: | |||
United States | (25) | 4 | 20 |
Non-United States | 1 | 2 | (43) |
Total | (24) | 6 | (23) |
Total | $ 86 | $ 179 | $ 56 |
INCOME TAXES - INCOME TAX RATE
INCOME TAXES - INCOME TAX RATE RECONCILIATION (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Income Tax (Expense) Benefit | |||
Income tax rate | $ (1,205) | $ 456 | $ 230 |
Income tax rate (as percent) | 21.00% | 21.00% | 35.00% |
Income tax expense at the U.S. Federal tax rate | $ (253) | $ 96 | $ 80 |
Adjustments to derive effective tax rate: | |||
Foreign earnings taxed at different statutory rates | (66) | 24 | (38) |
Valuation allowances | 66 | 114 | 43 |
Fiscal incentives | (43) | (43) | (42) |
Foreign exchange on monetary items | 12 | 24 | (9) |
Tax rate changes | (8) | 4 | (62) |
Non-deductible expenses | 11 | 8 | 27 |
Uncertain tax positions | (29) | 22 | (48) |
Deferred balance adjustments | (5) | 0 | (4) |
Equity distributions, net | (7) | (31) | 0 |
Transition tax | (11) | (15) | 105 |
Tax exempt investments | 0 | 0 | (14) |
Tax credits | (7) | (5) | (8) |
Incremental tax on future distributions | 0 | (26) | 27 |
State taxes | 3 | 8 | (4) |
Goodwill impairment - Loders | 28 | 0 | 0 |
Losses on Brazilian sugar and bioenergy contribution to joint venture | 379 | 0 | 0 |
Other | 16 | (1) | 3 |
Total | $ 86 | $ 179 | $ 56 |
INCOME TAXES - DEFERRED TAX ASS
INCOME TAXES - DEFERRED TAX ASSETS AND LIABILITIES (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred income tax assets: | ||
Net operating loss carryforwards | $ 530 | $ 781 |
Operating lease obligations | 239 | |
Employee benefits | 110 | 116 |
Tax credit carryforwards | 44 | 12 |
Inventories | 1 | 0 |
Accrued expenses and other | 259 | 340 |
Total deferred tax assets | 1,183 | 1,249 |
Less valuation allowances | (404) | (766) |
Deferred tax assets, net of valuation allowance | 779 | 483 |
Deferred income tax liabilities: | ||
Property, plant and equipment | 286 | 233 |
Operating lease assets | 239 | |
Undistributed earnings of affiliates | 9 | 6 |
Investments | 13 | 16 |
Intangibles | 119 | 100 |
Inventories | 0 | 26 |
Total deferred tax liabilities | 666 | 381 |
Net deferred tax assets | 113 | 102 |
Foreign unremitted earnings indefinitely reinvested | 183 | |
Income tax withholdings on undistributed earnings if earnings were to be distributed | 37 | |
Net operating loss carryforwards | 2,011 | 2,909 |
Indefinite-lived loss carryforwards | $ 1,488 | 2,340 |
Maximum percentage of annual utilization of carryforward of loss | 30.00% | |
Period of realization loss carryforwards | 5 years | |
Valuation allowances | $ 404 | 766 |
Decrease in valuation allowance | 362 | |
Brazil | ||
Deferred income tax liabilities: | ||
Indefinite-lived loss carryforwards | $ 713 | $ 1,434 |
INCOME TAXES - RECONCILIATION O
INCOME TAXES - RECONCILIATION OF UNRECOGNIZED TAX BENEFITS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits | |||
Balance at the beginning of the period | $ 390 | $ 421 | $ 409 |
Additions based on tax positions related to the current year | 2 | 41 | 34 |
Additions based on tax positions related to prior years | 7 | 21 | 13 |
Reductions for tax positions of prior years | (27) | (54) | (43) |
Settlements with tax authorities | (26) | (1) | 0 |
Expiration of statute of limitations | (11) | (19) | (32) |
Reductions due to dispositions | (19) | 0 | 0 |
Foreign currency translation | (5) | (19) | 40 |
Balance at the end of the period | $ 311 | $ 390 | $ 421 |
INCOME TAXES - UNRECOGNIZED TAX
INCOME TAXES - UNRECOGNIZED TAX BENEFITS (Details) R$ in Millions, $ in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2019BRL (R$) | Dec. 31, 2019ARS ($) | Dec. 31, 2016USD ($) | |
Income Tax Examination | ||||||
Unrecognized tax benefits | $ 311 | $ 390 | $ 421 | $ 409 | ||
Interest and penalty charges in income tax expense (benefit) | (11) | (4) | (9) | |||
Accrued interest and penalties | 12 | 23 | ||||
Unrecognized tax benefits, recognized by the end of 2020 | 25 | |||||
Cash income tax payments | 123 | (1) | $ 89 | |||
Tax year 2006 through 2009 | ||||||
Income Tax Examination | ||||||
Income tax assessments | 21 | $ 1,276 | ||||
Accrued interest | 104 | $ 6,270 | ||||
Other non-current liabilities | ||||||
Income Tax Examination | ||||||
Unrecognized tax benefits | 51 | 120 | ||||
Current liabilities | ||||||
Income Tax Examination | ||||||
Unrecognized tax benefits | 2 | $ 0 | ||||
Brazil | Income tax examination through year 2012 | ||||||
Income Tax Examination | ||||||
Unrecognized tax benefits | 2 | R$ 7 | ||||
Total proposed adjustments | $ 1,356 | R$ 5464 |
INCOME TAXES - TAX ACT (Details
INCOME TAXES - TAX ACT (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Provisional Transition Tax charge | $ 60 | |
Tax benefit related to reversal of withholding taxes on future repatriation earnings | $ 26 |
FAIR VALUE MEASUREMENTS - ASSET
FAIR VALUE MEASUREMENTS - ASSETS AND LIABILITIES AT FAIR VALUE (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Unrealized gain on derivative contracts | $ 927 | $ 1,071 |
Liabilities: | ||
Trade accounts payable | 378 | 441 |
Unrealized loss on derivative contracts | 766 | 1,192 |
Other Noncurrent Assets | ||
Liabilities: | ||
Unrealized gains (losses) on derivative contracts | 39 | 3 |
Other non-current liabilities | ||
Liabilities: | ||
Unrealized gains (losses) on derivative contracts | (1) | (33) |
Assets and liabilities measured at fair value on a recurring basis | ||
Assets: | ||
Readily marketable inventories | 3,934 | 4,532 |
Total assets | 5,317 | 5,771 |
Liabilities: | ||
Trade accounts payable | 378 | 441 |
Total liabilities | 1,145 | 1,666 |
Assets and liabilities measured at fair value on a recurring basis | Hedge accounting | Interest rate | ||
Assets: | ||
Unrealized gain on derivative contracts | 45 | 6 |
Liabilities: | ||
Unrealized loss on derivative contracts | 4 | 42 |
Assets and liabilities measured at fair value on a recurring basis | Hedge accounting | Foreign exchange | ||
Assets: | ||
Unrealized gain on derivative contracts | 331 | 473 |
Liabilities: | ||
Unrealized loss on derivative contracts | 257 | 499 |
Assets and liabilities measured at fair value on a recurring basis | Economic hedges | ||
Assets: | ||
Other | 417 | 165 |
Assets and liabilities measured at fair value on a recurring basis | Economic hedges | Commodities | ||
Assets: | ||
Unrealized gain on derivative contracts | 524 | 553 |
Liabilities: | ||
Unrealized loss on derivative contracts | 468 | 621 |
Assets and liabilities measured at fair value on a recurring basis | Economic hedges | Freight | ||
Assets: | ||
Unrealized gain on derivative contracts | 10 | 12 |
Liabilities: | ||
Unrealized loss on derivative contracts | 10 | 19 |
Assets and liabilities measured at fair value on a recurring basis | Economic hedges | Energy | ||
Assets: | ||
Unrealized gain on derivative contracts | 56 | 30 |
Liabilities: | ||
Unrealized loss on derivative contracts | 28 | 44 |
Assets and liabilities measured at fair value on a recurring basis | Economic hedges | Equity | ||
Liabilities: | ||
Unrealized loss on derivative contracts | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | ||
Assets: | ||
Readily marketable inventories | 0 | 0 |
Total assets | 147 | 231 |
Liabilities: | ||
Trade accounts payable | 0 | 0 |
Total liabilities | 85 | 208 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Hedge accounting | Interest rate | ||
Assets: | ||
Unrealized gain on derivative contracts | 0 | 0 |
Liabilities: | ||
Unrealized loss on derivative contracts | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Hedge accounting | Foreign exchange | ||
Assets: | ||
Unrealized gain on derivative contracts | 0 | 0 |
Liabilities: | ||
Unrealized loss on derivative contracts | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Economic hedges | ||
Assets: | ||
Other | 47 | 67 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Economic hedges | Commodities | ||
Assets: | ||
Unrealized gain on derivative contracts | 34 | 128 |
Liabilities: | ||
Unrealized loss on derivative contracts | 49 | 152 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Economic hedges | Freight | ||
Assets: | ||
Unrealized gain on derivative contracts | 10 | 6 |
Liabilities: | ||
Unrealized loss on derivative contracts | 10 | 13 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Economic hedges | Energy | ||
Assets: | ||
Unrealized gain on derivative contracts | 56 | 30 |
Liabilities: | ||
Unrealized loss on derivative contracts | 26 | 43 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Economic hedges | Equity | ||
Liabilities: | ||
Unrealized loss on derivative contracts | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | ||
Assets: | ||
Readily marketable inventories | 3,703 | 4,286 |
Total assets | 4,930 | 5,270 |
Liabilities: | ||
Trade accounts payable | 347 | 394 |
Total liabilities | 996 | 1,381 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Hedge accounting | Interest rate | ||
Assets: | ||
Unrealized gain on derivative contracts | 45 | 6 |
Liabilities: | ||
Unrealized loss on derivative contracts | 4 | 42 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Hedge accounting | Foreign exchange | ||
Assets: | ||
Unrealized gain on derivative contracts | 331 | 473 |
Liabilities: | ||
Unrealized loss on derivative contracts | 257 | 499 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Economic hedges | ||
Assets: | ||
Other | 370 | 98 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Economic hedges | Commodities | ||
Assets: | ||
Unrealized gain on derivative contracts | 481 | 407 |
Liabilities: | ||
Unrealized loss on derivative contracts | 388 | 446 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Economic hedges | Freight | ||
Assets: | ||
Unrealized gain on derivative contracts | 0 | 0 |
Liabilities: | ||
Unrealized loss on derivative contracts | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Economic hedges | Energy | ||
Assets: | ||
Unrealized gain on derivative contracts | 0 | 0 |
Liabilities: | ||
Unrealized loss on derivative contracts | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Economic hedges | Equity | ||
Liabilities: | ||
Unrealized loss on derivative contracts | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | ||
Assets: | ||
Readily marketable inventories | 231 | 246 |
Total assets | 240 | 270 |
Liabilities: | ||
Trade accounts payable | 31 | 47 |
Total liabilities | 64 | 77 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Hedge accounting | Interest rate | ||
Assets: | ||
Unrealized gain on derivative contracts | 0 | 0 |
Liabilities: | ||
Unrealized loss on derivative contracts | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Hedge accounting | Foreign exchange | ||
Assets: | ||
Unrealized gain on derivative contracts | 0 | 0 |
Liabilities: | ||
Unrealized loss on derivative contracts | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Economic hedges | ||
Assets: | ||
Other | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Economic hedges | Commodities | ||
Assets: | ||
Unrealized gain on derivative contracts | 9 | 18 |
Liabilities: | ||
Unrealized loss on derivative contracts | 31 | 23 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Economic hedges | Freight | ||
Assets: | ||
Unrealized gain on derivative contracts | 0 | 6 |
Liabilities: | ||
Unrealized loss on derivative contracts | 0 | 6 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Economic hedges | Energy | ||
Assets: | ||
Unrealized gain on derivative contracts | 0 | 0 |
Liabilities: | ||
Unrealized loss on derivative contracts | 2 | 1 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Economic hedges | Equity | ||
Liabilities: | ||
Unrealized loss on derivative contracts | $ 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 | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Total | ||
Balance at beginning of period | $ 193 | $ 251 |
Purchases | 1,544 | 1,488 |
Sales | (2,935) | (2,585) |
Issuances | (1) | (11) |
Settlements | 469 | 447 |
Transfers into Level 3 | 852 | 685 |
Transfers out of Level 3 | (255) | (241) |
Balance at end of period | 176 | 193 |
Cost of goods sold | ||
Total | ||
Total gains and losses (realized/unrealized) included in cost of goods sold | 309 | 159 |
Readily Marketable Inventories | ||
Readily Marketable Inventories | ||
Balance at beginning of period | 246 | 365 |
Purchases | 2,002 | 1,770 |
Sales | (2,935) | (2,585) |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Transfers into Level 3 | 884 | 774 |
Transfers out of Level 3 | (276) | (222) |
Balance at end of period | 231 | 246 |
Total | ||
Changes in unrealized gains (losses) relating to Level 3 assets and liabilities | 214 | 72 |
Readily Marketable Inventories | Cost of goods sold | ||
Readily Marketable Inventories | ||
Total gains and losses (realized/unrealized) included in cost of goods sold | 310 | 144 |
Derivatives, Net | ||
Derivatives, Net | ||
Balance at beginning of period | (6) | 2 |
Purchases | 0 | 12 |
Sales | 0 | 0 |
Issuances | (1) | (11) |
Settlements | 7 | 13 |
Transfers into Level 3 | 0 | (10) |
Transfers out of Level 3 | 0 | (1) |
Balance at end of period | (24) | (6) |
Total | ||
Changes in unrealized gains (losses) relating to Level 3 assets and liabilities | (25) | (24) |
Derivatives, Net | Cost of goods sold | ||
Derivatives, Net | ||
Total gains and losses (realized/unrealized) included in cost of goods sold | (24) | (11) |
Trade Accounts Payable | ||
Trade Accounts Receivable/ Payable, Net | ||
Balance at beginning of period | (47) | (116) |
Purchases | (458) | (294) |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | 462 | 434 |
Transfers into Level 3 | (32) | (79) |
Transfers out of Level 3 | 21 | (18) |
Balance at end of period | (31) | (47) |
Total | ||
Changes in unrealized gains (losses) relating to Level 3 assets and liabilities | 0 | 0 |
Trade Accounts Payable | Cost of goods sold | ||
Trade Accounts Receivable/ Payable, Net | ||
Total gains and losses (realized/unrealized) included in cost of goods sold | $ 23 | $ 26 |
DERIVATIVE INSTRUMENTS AND HE_3
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - DERIVATIVE POSITIONS (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2019USD ($)MMBTUdayt | Dec. 31, 2018USD ($)MMBTUdayt | |
Interest rate | Long | Swaps | ||
Derivative | ||
Notional amount of derivative | $ 4,062 | $ 3,349 |
Interest rate | Long | Forward Rate Agreements | ||
Derivative | ||
Notional amount of derivative | 213 | 139 |
Interest rate | Short | Swaps | ||
Derivative | ||
Notional amount of derivative | 39 | 111 |
Interest rate | Short | Forward Rate Agreements | ||
Derivative | ||
Notional amount of derivative | 418 | 149 |
Foreign exchange | Long | Swaps | ||
Derivative | ||
Notional amount of derivative | 191 | 127 |
Foreign exchange | Long | Forwards | ||
Derivative | ||
Notional amount of derivative | 7,164 | 13,713 |
Foreign exchange | Long | Futures | ||
Derivative | ||
Notional amount of derivative | 0 | 0 |
Foreign exchange | Long | Options | ||
Derivative | ||
Delta amount of derivative | 132 | 869 |
Foreign exchange | Short | Swaps | ||
Derivative | ||
Notional amount of derivative | 170 | 535 |
Foreign exchange | Short | Forwards | ||
Derivative | ||
Notional amount of derivative | 9,983 | 13,701 |
Foreign exchange | Short | Futures | ||
Derivative | ||
Notional amount of derivative | 16 | 16 |
Foreign exchange | Short | Options | ||
Derivative | ||
Delta amount of derivative | $ 157 | $ 919 |
Commodities | Long | Swaps | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 0 | 0 |
Commodities | Long | Forwards | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 27,914,141 | 25,523,840 |
Commodities | Long | Futures | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 0 | 4,136,525 |
Commodities | Long | Options | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 0 | 718,709 |
Commodities | Short | Swaps | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 1,114,704 | 9,908,728 |
Commodities | Short | Forwards | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 25,321,595 | 29,314,930 |
Commodities | Short | Futures | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 1,960,051 | 0 |
Commodities | Short | Options | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 115,232 | 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 | 42 | 302 |
Ocean freight | Short | Forwards | ||
Derivative | ||
Nonmonetary notional amount of derivatives | day | 133 | 90 |
Ocean freight | Short | Options | ||
Derivative | ||
Nonmonetary notional amount of derivatives | day | 0 | 0 |
Natural gas | Long | Swaps | ||
Derivative | ||
Nonmonetary notional amount of derivatives | MMBTU | 215,640 | 1,205,687 |
Natural gas | Long | Futures | ||
Derivative | ||
Nonmonetary notional amount of derivatives | MMBTU | 2,802,500 | 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 | 239,836 | 188,800 |
Energy - other | Long | Forwards | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 5,534,290 | 5,536,290 |
Energy - other | Long | Futures | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 0 | 0 |
Energy - other | Short | Swaps | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 0 | 0 |
Energy - other | Short | Forwards | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 0 | 0 |
Energy - other | Short | Futures | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 0 | 29,367 |
Other | Long | Swaps and futures | ||
Derivative | ||
Notional amount of derivative | $ 50 | $ 52 |
Other | Short | Swaps and futures | ||
Derivative | ||
Notional amount of derivative | 14 | 0 |
Fair Value Hedging | Interest rate | ||
Derivative | ||
Carrying value of hedged debt | 2,279 | 2,229 |
Cumulative adjustment to long-term debt from application of hedge accounting | 37 | (29) |
Notional amount of derivative | 2,249 | 2,266 |
Fair Value Hedging | Foreign exchange | ||
Derivative | ||
Carrying value of hedged debt | 281 | 312 |
Notional amount of derivative | 281 | 313 |
Cash Flow Hedges | Foreign exchange | ||
Derivative | ||
Amounts expected to be reclassified from AOCI to earnings in the next twelve months | 5 | |
Cash Flow Hedges | Foreign exchange | Forwards | ||
Derivative | ||
Notional amount of derivative | 99 | 50 |
Cash Flow Hedges | Foreign exchange | Options | ||
Derivative | ||
Notional amount of derivative | 75 | 0 |
Net Investment Hedges | ||
Derivative | ||
Carrying value of non-derivative hedging instrument | 895 | 912 |
Net Investment Hedges | Foreign exchange | ||
Derivative | ||
Notional amount of derivative | $ 928 | $ 1,888 |
DERIVATIVE INSTRUMENTS AND HE_4
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - EFFECT OF DERIVATIVE INSTRUMENTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cost of goods sold | |||
Derivative Instruments, Gain (Loss) | |||
Gain (loss) recognized in income on derivative instruments | $ 188 | $ 262 | $ 684 |
Interest expense | |||
Derivative Instruments, Gain (Loss) | |||
Gain (loss) recognized in income on derivative instruments | (22) | (7) | 13 |
Foreign exchange gains (losses) | |||
Derivative Instruments, Gain (Loss) | |||
Gain (loss) recognized in income on derivative instruments | 44 | 24 | 22 |
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 | 15 | (2) | 14 |
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 | (1) | 1 | 0 |
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 | (47) | 48 | (8) |
Foreign currency | Cash Flow Hedges | |||
Derivative Instruments, Gain (Loss) | |||
Cash flow hedge of foreign currency risk | (5) | 0 | 37 |
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 | 20 | 0 | 0 |
Commodities | Cash Flow Hedges | |||
Derivative Instruments, Gain (Loss) | |||
Cash flow hedge of foreign currency risk | (20) | 0 | 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 | 17 | 52 | (111) |
Hedge accounting | Foreign currency | Net sales | |||
Derivative Instruments, Gain (Loss) | |||
Gain (loss) on hedge accounting | (3) | (2) | 0 |
Hedge accounting | Foreign currency | Cost of goods sold | |||
Derivative Instruments, Gain (Loss) | |||
Gain (loss) on hedge accounting | 0 | 1 | 0 |
Hedge accounting | Foreign currency | Foreign exchange gains (losses) | |||
Derivative Instruments, Gain (Loss) | |||
Gain (loss) on hedge accounting | 11 | (10) | 0 |
Hedge accounting | Commodities | Cost of goods sold | |||
Derivative Instruments, Gain (Loss) | |||
Gain (loss) on economic hedges | 20 | 0 | 0 |
Hedge accounting | Interest rate | Interest expense | |||
Derivative Instruments, Gain (Loss) | |||
Gain (loss) on hedge accounting | (12) | (6) | 13 |
Economic hedges | Foreign currency | Cost of goods sold | |||
Derivative Instruments, Gain (Loss) | |||
Gain (loss) on economic hedges | 172 | (220) | (1) |
Economic hedges | Foreign currency | Foreign exchange gains (losses) | |||
Derivative Instruments, Gain (Loss) | |||
Gain (loss) on economic hedges | 33 | 34 | 22 |
Economic hedges | Commodities | Cost of goods sold | |||
Derivative Instruments, Gain (Loss) | |||
Gain (loss) on economic hedges | (50) | 506 | 676 |
Economic hedges | Other | Cost of goods sold | |||
Derivative Instruments, Gain (Loss) | |||
Gain (loss) on economic hedges | 46 | (25) | 9 |
Economic hedges | Interest rate | Interest expense | |||
Derivative Instruments, Gain (Loss) | |||
Gain (loss) on economic hedges | $ (10) | $ (1) | $ 0 |
SHORT-TERM DEBT AND CREDIT FA_3
SHORT-TERM DEBT AND CREDIT FACILITIES (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Lines of Credit: | ||
Short-term borrowings weighted-average interest rate (as a percent) | 13.83% | 6.98% |
Short-term debt | $ 771,000,000 | $ 750,000,000 |
Unsecured, variable interest rate | ||
Lines of Credit: | ||
Short-term debt | $ 771,000,000 | $ 750,000,000 |
Unsecured, variable interest rate | Minimum | ||
Lines of Credit: | ||
Variable interest rate | 2.63% | |
Unsecured, variable interest rate | Maximum | ||
Lines of Credit: | ||
Variable interest rate | 60.00% | |
Unsecured local currency borrowings in high interest rate jurisdictions | ||
Lines of Credit: | ||
Short-term borrowings weighted-average interest rate (as a percent) | 27.16% | 23.61% |
Short-term debt | $ 348,000,000 | $ 136,000,000 |
Commercial paper | ||
Lines of Credit: | ||
Commercial paper | 0 | |
2018 liquidity facility | ||
Lines of Credit: | ||
Borrowings outstanding | 0 | |
Bilateral short-term credit line | ||
Lines of Credit: | ||
Short-term debt | 0 | $ 0 |
Local bank line of credit | ||
Lines of Credit: | ||
Short-term debt | $ 771,000,000 |
LONG-TERM DEBT AND CREDIT FAC_3
LONG-TERM DEBT AND CREDIT FACILITIES - OUTSTANDING (Details) ¥ in Billions | Dec. 16, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jul. 01, 2019USD ($) | Jul. 01, 2019JPY (¥) |
Long-term debt obligations | |||||
Subtotal | $ 4,223,000,000 | $ 4,622,000,000 | |||
Less: Current portion of long-term debt | (507,000,000) | (419,000,000) | |||
Total long-term debt | 3,716,000,000 | 4,203,000,000 | |||
Secured debt | 15,000,000 | 17,000,000 | |||
Revolving credit facility expiring 2022 | |||||
Long-term debt obligations | |||||
Subtotal | 0 | 500,000,000 | |||
Term loan due 2019 - fixed Yen interest rate of 0.96% (Tranche B) | |||||
Long-term debt obligations | |||||
Subtotal | $ 0 | $ 54,000,000 | |||
Term loan due 2019 - fixed Yen interest rate of 0.96% (Tranche B) | Yen LIBOR | |||||
Long-term debt obligations | |||||
Basis spread on variable rate | 0.96% | 0.96% | |||
Term loan due 2024 - three-month Yen LIBOR plus 0.75% (Tranche A) | |||||
Long-term debt obligations | |||||
Aggregate principal amount | $ 85,000,000 | ¥ 28.5 | |||
Subtotal | $ 281,000,000 | $ 258,000,000 | |||
Term loan due 2024 - three-month Yen LIBOR plus 0.75% (Tranche A) | Yen LIBOR | |||||
Long-term debt obligations | |||||
Basis spread on variable rate | 0.75% | 0.75% | |||
Term loan due 2024 - three-month LIBOR plus 1.30% (Tranche B) | |||||
Long-term debt obligations | |||||
Subtotal | $ 89,000,000 | $ 85,000,000 | |||
Term loan due 2024 - three-month LIBOR plus 1.30% (Tranche B) | LIBOR | |||||
Long-term debt obligations | |||||
Basis spread on variable rate | 1.30% | 1.30% | |||
3.50% Senior Notes due 2020 | |||||
Long-term debt obligations | |||||
Interest rate | 3.50% | 3.50% | |||
Subtotal | $ 499,000,000 | $ 498,000,000 | |||
3.00% Senior Notes due 2022 | |||||
Long-term debt obligations | |||||
Interest rate | 3.00% | 3.00% | |||
Subtotal | $ 398,000,000 | $ 397,000,000 | |||
1.85% Senior Notes due 2023—Euro | Euro | |||||
Long-term debt obligations | |||||
Interest rate | 1.85% | 1.85% | |||
Subtotal | $ 899,000,000 | $ 916,000,000 | |||
4.35% Senior Notes due 2024 | |||||
Long-term debt obligations | |||||
Interest rate | 4.35% | 4.35% | |||
Subtotal | $ 596,000,000 | $ 595,000,000 | |||
3.25% Senior Notes due 2026 | |||||
Long-term debt obligations | |||||
Interest rate | 3.25% | 3.25% | |||
Subtotal | $ 696,000,000 | $ 695,000,000 | |||
3.75% Senior Notes due 2027 | |||||
Long-term debt obligations | |||||
Interest rate | 3.75% | 3.75% | |||
Subtotal | $ 595,000,000 | $ 594,000,000 | |||
Other | |||||
Long-term debt obligations | |||||
Subtotal | $ 170,000,000 | $ 30,000,000 | |||
Line of Credit | Revolving credit facility expiring 2022 | |||||
Long-term debt obligations | |||||
Original term | 3 years | ||||
Line of Credit | Revolving Credit Facility | Revolving credit facility expiring 2022 | |||||
Long-term debt obligations | |||||
Maximum borrowing capacity | $ 1,750,000,000 | ||||
Extended term | 2 years |
LONG-TERM DEBT AND CREDIT FAC_4
LONG-TERM DEBT AND CREDIT FACILITIES - FAIR VALUE (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Carrying Value | ||
Debt | ||
Long-term debt, including current portion | $ 4,223 | $ 4,622 |
Fair value | Level 2 | ||
Debt | ||
Long-term debt, including current portion | $ 4,319 | $ 4,584 |
LONG-TERM DEBT AND CREDIT FAC_5
LONG-TERM DEBT AND CREDIT FACILITIES - ACTIVITY (Details) - USD ($) | Dec. 16, 2019 | Dec. 31, 2019 | Nov. 30, 2019 | Dec. 31, 2018 |
Debt | ||||
Long-term debt | $ 4,223,000,000 | $ 4,622,000,000 | ||
Subsidiaries | Collateralized debt obligations | ||||
Debt | ||||
Land, property, equipment and investments mortgaged, net carrying value | 45,000,000 | |||
Long-term debt | 16,000,000 | |||
Revolving credit facility expiring 2022 | ||||
Debt | ||||
Long-term debt | 0 | $ 500,000,000 | ||
Line of Credit | ||||
Debt | ||||
Debt instrument unused and available borrowing capacity amount | 4,315,000,000 | |||
Line of Credit | Revolving Credit Facility | Revolving credit facility expiring 2022 | ||||
Debt | ||||
Maximum borrowing capacity | $ 1,750,000,000 | |||
Maximum additional commitments that may be made available | $ 250,000,000 | |||
Utilization fee (percent) | 35.00% | |||
Borrowings outstanding | $ 0 | |||
Line of Credit | Revolving Credit Facility | Revolving credit facility expiring 2022 | Minimum | ||||
Debt | ||||
Unused commitment fee (percent) | 0.10% | |||
Line of Credit | Revolving Credit Facility | Revolving credit facility expiring 2022 | Maximum | ||||
Debt | ||||
Unused commitment fee (percent) | 0.40% | |||
Line of Credit | Revolving Credit Facility | Revolving credit facility expiring 2022 | LIBOR | Minimum | ||||
Debt | ||||
Basis spread on variable rate | 0.30% | |||
Line of Credit | Revolving Credit Facility | Revolving credit facility expiring 2022 | LIBOR | Maximum | ||||
Debt | ||||
Basis spread on variable rate | 1.30% | |||
Line of Credit | Revolving Credit Facility | Credit facility expiring 2023 | ||||
Debt | ||||
Maximum borrowing capacity | $ 700,000,000 |
LONG-TERM DEBT AND CREDIT FAC_6
LONG-TERM DEBT AND CREDIT FACILITIES - PRINCIPAL MATURITIES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Principal Maturities of Long-Term Debt | |||
2020 | $ 512 | ||
2021 | 13 | ||
2022 | 505 | ||
2023 | 903 | ||
2024 | 968 | ||
Thereafter | 1,303 | ||
Total | 4,204 | ||
Changes in long-term debt attributable to fair value hedge | 37 | ||
Deferred financing fees | 18 | ||
Interest paid, net of capitalization | $ 327 | $ 306 | $ 236 |
TRADE RECEIVABLES SECURITIZAT_3
TRADE RECEIVABLES SECURITIZATION PROGRAM (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 19, 2019 | |
Accounts Receivable Securitization Facilities Disclosures | ||||
Trade receivables securitization program, accordion feature amount | $ 300,000,000 | |||
Trade receivables securitization program, accordion feature exercised amount | 100,000,000 | |||
Bunge Securitization B.V. | ||||
Accounts Receivable Securitization Facilities Disclosures | ||||
Maximum funding under trade receivables securitization program | $ 800,000,000 | $ 800,000,000 | ||
Receivables sold which were derecognized from Bunge's balance sheet | 801,000,000 | $ 826,000,000 | ||
Deferred purchase price included in Other current assets | 105,000,000 | 128,000,000 | ||
Gross receivables sold | 10,120,000,000 | 9,803,000,000 | $ 10,022,000,000 | |
Proceeds received in cash related to transfer of receivables | 9,868,000,000 | 9,484,000,000 | 9,734,000,000 | |
Cash collections from customers on receivables previously sold | 8,434,000,000 | 9,173,000,000 | 9,659,000,000 | |
Discounts related to gross receivables sold included in SG&A | $ 15,000,000 | $ 14,000,000 | $ 9,000,000 | |
Payment term for receivables | 30 days | |||
Bunge Securitization B.V. | Minimum | ||||
Accounts Receivable Securitization Facilities Disclosures | ||||
Percentage of receivables sold sale price whose collection is deferred | 10.00% | |||
Bunge Securitization B.V. | Maximum | ||||
Accounts Receivable Securitization Facilities Disclosures | ||||
Percentage of receivables sold sale price whose collection is deferred | 15.00% |
EMPLOYEE BENEFIT PLANS - PERIOD
EMPLOYEE BENEFIT PLANS - PERIODIC BENEFIT COSTS AND ASSUMPTIONS (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | ||||
Effect of a One-percentage point increase to total service and interest cost | $ 0 | |||
Effect of a One-percentage point decrease to total service and interest cost | 0 | |||
Effect of a One-percentage point increase to postretirement benefit obligation | 5 | |||
Effect of a One-percentage point decrease to postretirement benefit obligation | (4) | |||
Pension Benefits | ||||
Employee Benefit Plans | ||||
Increase in benefit obligation for plan amendment | $ 13 | |||
Pension curtailment gain recognized and recorded in other comprehensive income | $ 31 | |||
Remeasurement loss recognized and recorded in other comprehensive income | $ 18 | |||
Additional defined benefit expenses relating to the voluntary early retirement program | $ 10 | |||
Net Periodic Benefit Costs: | ||||
Service cost | 38 | 39 | 33 | |
Interest cost | 43 | 40 | 36 | |
Expected return on plan assets | (47) | (57) | (46) | |
Amortization of prior service cost | 2 | 1 | 0 | |
Amortization of net loss | 9 | 9 | 10 | |
Curtailment (gain) loss | 2 | (2) | 0 | |
Settlement loss recognized | 0 | 4 | 0 | |
Special termination benefit | 1 | 0 | 9 | |
Net periodic benefit costs | $ 48 | $ 34 | $ 42 | |
Weighted-Average Assumptions to Determine Benefit Obligations | ||||
Discount rate (as a percent) | 2.80% | 3.70% | ||
Increase in future compensation levels (as a percent) | 3.20% | 3.20% | ||
Weighted-Average Assumptions to Determine the Net Periodic Benefit Cost | ||||
Discount rate (as a percent) | 3.70% | 3.40% | 4.00% | |
Expected long-term rate of return on assets (as a percent) | 5.10% | 6.00% | 6.20% | |
Increase in future compensation levels (as a percent) | 3.20% | 3.20% | 3.20% | |
Postretirement Benefits | ||||
Net Periodic Benefit Costs: | ||||
Service cost | $ 0 | $ 0 | $ 0 | |
Interest cost | 5 | 5 | 8 | |
Expected return on plan assets | 0 | 0 | 0 | |
Amortization of prior service cost | 0 | 0 | 0 | |
Amortization of net loss | 0 | 0 | 0 | |
Curtailment (gain) loss | 0 | 0 | 0 | |
Settlement loss recognized | 0 | 0 | 0 | |
Special termination benefit | 0 | 0 | 0 | |
Net periodic benefit costs | $ 5 | $ 5 | $ 8 | |
Annual rate of increase in the per capita cost of covered health care benefits assumed (as a percent) | 7.20% | 7.70% | ||
Decreased annual rate of increase in the per capita cost of covered healthcare by 2038 and thereafter (as a percent) | 6.90% | 7.40% | ||
Weighted-Average Assumptions to Determine Benefit Obligations | ||||
Discount rate (as a percent) | 6.10% | 8.30% | ||
Weighted-Average Assumptions to Determine the Net Periodic Benefit Cost | ||||
Discount rate (as a percent) | 8.30% | 9.00% | 10.80% |
EMPLOYEE BENEFIT PLANS - CHANGE
EMPLOYEE BENEFIT PLANS - CHANGES IN OBLIGATIONS, ASSETS AND FUNDED STATUS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Benefits | |||
Change in benefit obligations: | |||
Benefit obligation at the beginning of year | $ 1,192,000,000 | $ 1,073,000,000 | |
Service cost | 38,000,000 | 39,000,000 | $ 33,000,000 |
Interest cost | 43,000,000 | 40,000,000 | 36,000,000 |
Plan amendments | (3,000,000) | 16,000,000 | |
Plan curtailments | (5,000,000) | (2,000,000) | |
Special termination benefits | 1,000,000 | 0 | |
Actuarial (gain) loss, net | 172,000,000 | (84,000,000) | |
Employee contributions | 3,000,000 | 3,000,000 | |
Net transfers in (out) | 0 | 213,000,000 | |
Plan settlements | (2,000,000) | (55,000,000) | |
Benefits paid | (49,000,000) | (40,000,000) | |
Expenses paid | (2,000,000) | (3,000,000) | |
Impact of foreign exchange rates | 0 | (8,000,000) | |
Benefit obligation at the end of year | 1,388,000,000 | 1,192,000,000 | 1,073,000,000 |
Change in plan assets: | |||
Fair value of plan assets at the beginning of year | 957,000,000 | 896,000,000 | |
Actual return on plan assets | 181,000,000 | (36,000,000) | |
Employer contributions | 25,000,000 | 18,000,000 | |
Employee contributions | 3,000,000 | 3,000,000 | |
Net transfers in (out) | 0 | 181,000,000 | |
Plan settlements | (2,000,000) | (55,000,000) | |
Benefits paid | (49,000,000) | (40,000,000) | |
Expenses paid | (2,000,000) | (3,000,000) | |
Impact of foreign exchange rates | 1,000,000 | (7,000,000) | |
Fair value of plan assets at the end of year | 1,114,000,000 | 957,000,000 | 896,000,000 |
Funded (unfunded) status and net amounts recognized: | |||
Plan assets (less than) in excess of benefit obligation | (274,000,000) | (235,000,000) | |
Net (liability) asset recognized in the balance sheet | (274,000,000) | (235,000,000) | |
Amounts recognized in the balance sheet consist of: | |||
Non-current assets | 14,000,000 | 11,000,000 | |
Current liabilities | (6,000,000) | (6,000,000) | |
Non-current liabilities | (282,000,000) | (240,000,000) | |
Net liability recognized | (274,000,000) | (235,000,000) | |
Postretirement Benefits | |||
Change in benefit obligations: | |||
Benefit obligation at the beginning of year | 59,000,000 | 67,000,000 | |
Service cost | 0 | 0 | 0 |
Interest cost | 5,000,000 | 5,000,000 | 8,000,000 |
Plan amendments | 0 | 0 | |
Plan curtailments | 0 | 0 | |
Special termination benefits | 0 | 0 | |
Actuarial (gain) loss, net | 1,000,000 | 1,000,000 | |
Employee contributions | 1,000,000 | 1,000,000 | |
Net transfers in (out) | 0 | 0 | |
Plan settlements | 0 | 0 | |
Benefits paid | (8,000,000) | (7,000,000) | |
Expenses paid | 0 | 0 | |
Impact of foreign exchange rates | (2,000,000) | (8,000,000) | |
Benefit obligation at the end of year | 56,000,000 | 59,000,000 | 67,000,000 |
Change in plan assets: | |||
Fair value of plan assets at the beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 7,000,000 | 6,000,000 | |
Employee contributions | 1,000,000 | 1,000,000 | |
Net transfers in (out) | 0 | 0 | |
Plan settlements | 0 | 0 | |
Benefits paid | (8,000,000) | (7,000,000) | |
Expenses paid | 0 | 0 | |
Impact of foreign exchange rates | 0 | 0 | |
Fair value of plan assets at the end of year | 0 | 0 | $ 0 |
Funded (unfunded) status and net amounts recognized: | |||
Plan assets (less than) in excess of benefit obligation | (56,000,000) | (59,000,000) | |
Net (liability) asset recognized in the balance sheet | (56,000,000) | (59,000,000) | |
Amounts recognized in the balance sheet consist of: | |||
Non-current assets | 0 | 0 | |
Current liabilities | (5,000,000) | (6,000,000) | |
Non-current liabilities | (51,000,000) | (53,000,000) | |
Net liability recognized | (56,000,000) | (59,000,000) | |
Loders | Pension Benefits | |||
Employee Benefit Plans | |||
Increase in benefit obligation from acquisition | 211,000,000 | ||
Effect of plan combinations | 181,000,000 | ||
Swiss Plan GCP Change | Pension Benefits | |||
Change in benefit obligations: | |||
Plan settlements | $ 0 | (28,000,000) | |
Plan Amendments | Pension Benefits | |||
Change in benefit obligations: | |||
Plan settlements | $ (27,000,000) |
EMPLOYEE BENEFIT PLANS - AMOUNT
EMPLOYEE BENEFIT PLANS - AMOUNTS IN ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) $ in Millions | Dec. 31, 2019USD ($) |
Pension Benefits | |
EMPLOYEE BENEFIT PLANS | |
Unrecognized prior service loss | $ 4 |
Unrecognized prior service loss, net of tax | 3 |
Unrecognized actuarial loss | 213 |
Unrecognized actuarial gain (loss), net of tax | 157 |
Postretirement Benefits | |
EMPLOYEE BENEFIT PLANS | |
Unrecognized actuarial loss | 4 |
Unrecognized actuarial gain (loss), net of tax | $ 3 |
EMPLOYEE BENEFIT PLANS - PROJEC
EMPLOYEE BENEFIT PLANS - PROJECTED AND ACCUMULATED BENEFIT OBLIGATIONS (Details) - Pension Benefits - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Employee Benefit Plans | ||
Accumulated benefit obligation | $ 1,304 | $ 1,122 |
Defined Benefit Pension Plans with Projected Benefit Obligations in Excess of Fair Value of Plan Assets | ||
Projected benefit obligation | 1,252 | 1,073 |
Fair value of plan assets | 965 | 827 |
Information Relating to Aggregated Defined Benefit Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets | ||
Projected benefit obligation | 1,252 | 978 |
Accumulated benefit obligation | 1,171 | 938 |
Fair value of plan assets | $ 964 | $ 758 |
EMPLOYEE BENEFIT PLANS - PLAN A
EMPLOYEE BENEFIT PLANS - PLAN ASSETS AND FUTURE PAYMENTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Estimated Future Benefit Payments | |||
Employee defined contribution plans | $ 16 | $ 10 | $ 11 |
Pension Benefits | |||
Target Asset Allocation | |||
Fair value of plan assets | 1,114 | 957 | 896 |
Estimated contribution by employer, next fiscal year | 19 | ||
Estimated Future Benefit Payments | |||
2020 | 62 | ||
2021 | 52 | ||
2022 | 53 | ||
2023 | 55 | ||
2024 | 58 | ||
2025 and onwards | $ 309 | ||
Pension Benefits | Equities Mutual funds | |||
Target Asset Allocation | |||
Target asset allocation (as a percent) | 40.00% | ||
Pension Benefits | Fixed income securities Mutual Funds | |||
Target Asset Allocation | |||
Target asset allocation (as a percent) | 60.00% | ||
Pension Benefits | Level 1 | |||
Target Asset Allocation | |||
Fair value of plan assets | $ 1,037 | 882 | |
Pension Benefits | Level 1 | Cash | |||
Target Asset Allocation | |||
Fair value of plan assets | 12 | 16 | |
Pension Benefits | Level 1 | Equities Mutual funds | |||
Target Asset Allocation | |||
Fair value of plan assets | 449 | 362 | |
Pension Benefits | Level 1 | Fixed income securities Mutual Funds | |||
Target Asset Allocation | |||
Fair value of plan assets | 547 | 498 | |
Pension Benefits | Level 1 | Others | |||
Target Asset Allocation | |||
Fair value of plan assets | 29 | 6 | |
Pension Benefits | Level 2 | |||
Target Asset Allocation | |||
Fair value of plan assets | 65 | 59 | |
Pension Benefits | Level 2 | Cash | |||
Target Asset Allocation | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Level 2 | Equities Mutual funds | |||
Target Asset Allocation | |||
Fair value of plan assets | 0 | 1 | |
Pension Benefits | Level 2 | Fixed income securities Mutual Funds | |||
Target Asset Allocation | |||
Fair value of plan assets | 34 | 38 | |
Pension Benefits | Level 2 | Others | |||
Target Asset Allocation | |||
Fair value of plan assets | 31 | 20 | |
Pension Benefits | Level 3 | |||
Target Asset Allocation | |||
Fair value of plan assets | 12 | 16 | |
Pension Benefits | Level 3 | Cash | |||
Target Asset Allocation | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Level 3 | Equities Mutual funds | |||
Target Asset Allocation | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Level 3 | Fixed income securities Mutual Funds | |||
Target Asset Allocation | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Level 3 | Others | |||
Target Asset Allocation | |||
Fair value of plan assets | 12 | 16 | |
Pension Benefits | Fair value | |||
Target Asset Allocation | |||
Fair value of plan assets | 1,114 | 957 | |
Pension Benefits | Fair value | Cash | |||
Target Asset Allocation | |||
Fair value of plan assets | 12 | 16 | |
Pension Benefits | Fair value | Equities Mutual funds | |||
Target Asset Allocation | |||
Fair value of plan assets | 449 | 363 | |
Pension Benefits | Fair value | Fixed income securities Mutual Funds | |||
Target Asset Allocation | |||
Fair value of plan assets | 581 | 536 | |
Pension Benefits | Fair value | Others | |||
Target Asset Allocation | |||
Fair value of plan assets | 72 | 42 | |
Postretirement Benefits | |||
Target Asset Allocation | |||
Fair value of plan assets | 0 | $ 0 | $ 0 |
Estimated contribution by employer, next fiscal year | 5 | ||
Estimated Future Benefit Payments | |||
2020 | 5 | ||
2021 | 5 | ||
2022 | 5 | ||
2023 | 5 | ||
2024 | 5 | ||
2025 and onwards | $ 23 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - Unconsolidated investees and other related parties | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Supplier | Minimum | Cost of goods sold | |||
Related Party Transactions | |||
Related party transactions (percent) | 2.00% | ||
Supplier | Minimum | Net sales | |||
Related Party Transactions | |||
Related party transactions (percent) | 2.00% | 2.00% | |
Supplier | Maximum | Cost of goods sold | |||
Related Party Transactions | |||
Related party transactions (percent) | 5.00% | ||
Supplier | Maximum | Net sales | |||
Related Party Transactions | |||
Related party transactions (percent) | 5.00% | 5.00% | |
Customer | Minimum | Cost of goods sold | |||
Related Party Transactions | |||
Related party transactions (percent) | 1.00% | 1.00% | |
Customer | Minimum | Net sales | |||
Related Party Transactions | |||
Related party transactions (percent) | 1.00% | ||
Customer | Maximum | Cost of goods sold | |||
Related Party Transactions | |||
Related party transactions (percent) | 2.00% | 2.00% | |
Customer | Maximum | Net sales | |||
Related Party Transactions | |||
Related party transactions (percent) | 2.00% |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) | 1 Months Ended | 12 Months Ended | ||||||
Oct. 31, 2019USD ($) | Oct. 31, 2019BRL (R$) | Dec. 31, 2019USD ($)subsidiary | Dec. 31, 2018USD ($) | Dec. 31, 2011USD ($) | Mar. 31, 2018employee | Dec. 31, 2017USD ($) | Dec. 31, 2017BRL (R$) | |
Loss Contingencies and Guarantees | ||||||||
Loss contingency accrual, at carrying value | $ 161,000,000 | $ 267,000,000 | ||||||
Maximum potential future payments related to guarantees | 554,000,000 | |||||||
Brazil | ||||||||
Loss Contingencies and Guarantees | ||||||||
Number of employees under administrative proceedings | employee | 2 | |||||||
Argentina | ||||||||
Loss Contingencies and Guarantees | ||||||||
Payment of accrued export tax obligations | $ 112,000,000 | |||||||
Non-income tax claims | ||||||||
Loss Contingencies and Guarantees | ||||||||
Loss contingency accrual, at carrying value | 23,000,000 | 94,000,000 | ||||||
Labor claims | ||||||||
Loss Contingencies and Guarantees | ||||||||
Loss contingency accrual, at carrying value | 50,000,000 | 78,000,000 | ||||||
Civil and other claims | ||||||||
Loss Contingencies and Guarantees | ||||||||
Loss contingency accrual, at carrying value | 88,000,000 | 95,000,000 | ||||||
Value added tax claims (ICMS, IPI, PIS and COFINS) | Brazil | ||||||||
Loss Contingencies and Guarantees | ||||||||
Income tax liability for ICMS incentives or benefits | $ 0 | |||||||
ICMS tax liability | Brazil | ||||||||
Loss Contingencies and Guarantees | ||||||||
Income tax liability for ICMS incentives or benefits | $ 14,000,000 | R$ 58000000 | ||||||
Payment of accrued export tax obligations | $ 27,000,000 | R$ 110000000 | ||||||
ICMS tax liability | Tax return examination 1990 to Present | Brazil | ||||||||
Loss Contingencies and Guarantees | ||||||||
Total assessment | 221,000,000 | 264,000,000 | ||||||
PIS COFINS liability | Tax return examination 2004 To 2016 | Brazil | ||||||||
Loss Contingencies and Guarantees | ||||||||
Total assessment | 268,000,000 | $ 231,000,000 | ||||||
Unconsolidated affiliates guarantee | ||||||||
Loss Contingencies and Guarantees | ||||||||
Maximum potential future payments related to guarantees | 300,000,000 | |||||||
Potential liability | 168,000,000 | |||||||
Obligation related to outstanding guarantees | 16,000,000 | |||||||
Residual value guarantee | ||||||||
Loss Contingencies and Guarantees | ||||||||
Maximum potential future payments related to guarantees | 254,000,000 | |||||||
Obligation related to outstanding guarantees | 0 | |||||||
Performance Guarantee | ||||||||
Loss Contingencies and Guarantees | ||||||||
Potential liability | 46,000,000 | |||||||
Obligation related to outstanding guarantees | 0 | |||||||
Guarantee of indebtedness of subsidiaries | ||||||||
Loss Contingencies and Guarantees | ||||||||
Long-term debt including current portion, carrying value | $ 4,688,000,000 | |||||||
Guarantee of indebtedness of subsidiaries | Bunge Limited Finance Corp., Bunge Finance Europe B.V. and Bunge N.A. Finance L.P. | 100% owned subsidiaries | ||||||||
Loss Contingencies and Guarantees | ||||||||
Number of finance subsidiaries issuing senior notes | subsidiary | 2 | |||||||
Percentage of ownership interest | 100.00% | |||||||
Inventories | ||||||||
Loss Contingencies and Guarantees | ||||||||
Long-term Purchase Commitment, Amount | $ 705,000,000 | |||||||
Power supply contracts | ||||||||
Loss Contingencies and Guarantees | ||||||||
Long-term Purchase Commitment, Amount | 42,000,000 | |||||||
Construction in progress | ||||||||
Loss Contingencies and Guarantees | ||||||||
Long-term Purchase Commitment, Amount | 39,000,000 | |||||||
Freight supply agreements | ||||||||
Loss Contingencies and Guarantees | ||||||||
Long-term Purchase Commitment, Amount | 190,000,000 | |||||||
Other purchase commitments | ||||||||
Loss Contingencies and Guarantees | ||||||||
Long-term Purchase Commitment, Amount | $ 89,000,000 |
REDEEMABLE NONCONTROLLING INT_2
REDEEMABLE NONCONTROLLING INTERESTS (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 - SHARE REPURCHASE PROGR
EQUITY - SHARE REPURCHASE PROGRAM (Details) - Common Shares - USD ($) | 56 Months Ended | |
Dec. 31, 2019 | May 31, 2015 | |
Equity, Class of Treasury Stock [Line Items] | ||
Authorized amount of issued and outstanding common shares available for repurchase | $ 500,000,000 | |
Repurchase of common shares (in shares) | 4,707,440 | |
Repurchase of common shares for the period | $ 300,000,000 |
EQUITY - CUMULATIVE CONVERTIBLE
EQUITY - CUMULATIVE CONVERTIBLE PERPETUAL PREFERENCE SHARES (Details) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2019USD ($)day$ / sharesshares | Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016shares | |
Class of Stock [Line Items] | ||||
Convertible perpetual preference shares, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Convertible perpetual preference shares, liquidation preference (in dollars per share) | $ 100 | $ 100 | ||
Dividends on preference shares | $ | $ 34 | $ 34 | $ 34 | |
Convertible perpetual preference shares | ||||
Class of Stock [Line Items] | ||||
Convertible preference shares accrued dividends (as a percent) | 4.875% | |||
Convertible perpetual preference shares, par value (in dollars per share) | $ 0.01 | |||
Convertible perpetual preference shares, liquidation preference (in dollars per share) | 100 | |||
Liquidation preference (in dollars per share) | $ 25 | |||
Convertible preference share, common shares issued upon conversion, at any time before mandatory conversion date | 1.2224 | |||
Conversion price, convertible preference share (in dollars per share) | $ 81.8087 | |||
Convertible preference shares, aggregate common shares issued if converted at current conversion rate | shares | 8,434,172 | |||
Target ratio of closing share price to conversion price as a condition for conversion or redemption of Convertible Notes (as a percent) | 130.00% | |||
Number of trading days that share price is over a specified threshold to trigger conversion of the notes | day | 20 | |||
The consecutive trading days which must occur to trigger the conversion of the notes | day | 30 | |||
Convertible Preference Shares | ||||
Class of Stock [Line Items] | ||||
Convertible perpetual preference shares, outstanding (in shares) | shares | 6,899,683 | 6,899,700 | 6,900,000 |
EQUITY - PENSION LIABILTY ADJUS
EQUITY - PENSION LIABILTY ADJUSTMENT (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Stockholders' Equity Note [Abstract] | |
Pension curtailment gain | $ 31 |
Remeasurement loss | $ 18 |
EQUITY - AOCI (Details)
EQUITY - AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | $ 6,378 | $ 7,357 | $ 7,343 |
Net-current period other comprehensive income (loss) | 1,330 | (1,013) | 64 |
Balance | 6,030 | 6,378 | 7,357 |
Foreign Currency Translation Adjustment | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | (6,637) | (5,547) | (5,734) |
Other comprehensive income (loss) before reclassifications | (119) | (1,119) | 187 |
Amount reclassified from accumulated other comprehensive income | 1,493 | 29 | 0 |
Net-current period other comprehensive income (loss) | (1,090) | 187 | |
Net-current period other comprehensive income (loss) | 1,374 | ||
Balance | (5,263) | (6,637) | (5,547) |
Deferred Gains (Losses) on Hedging Activities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | (145) | (244) | (102) |
Other comprehensive income (loss) before reclassifications | 1 | 99 | (105) |
Amount reclassified from accumulated other comprehensive income | (26) | 0 | (37) |
Net-current period other comprehensive income (loss) | 99 | (142) | |
Net-current period other comprehensive income (loss) | (25) | ||
Balance | (170) | (145) | (244) |
Pension and Other Postretirement Liability Adjustments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | (153) | (140) | (145) |
Other comprehensive income (loss) before reclassifications | (24) | (16) | 5 |
Amount reclassified from accumulated other comprehensive income | (14) | 3 | 0 |
Net-current period other comprehensive income (loss) | (13) | 5 | |
Net-current period other comprehensive income (loss) | (38) | ||
Balance | (191) | (153) | (140) |
Unrealized Gains (Losses) on Investments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | 0 | 1 | 3 |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 2 |
Amount reclassified from accumulated other comprehensive income | 0 | (1) | (4) |
Net-current period other comprehensive income (loss) | (1) | (2) | |
Net-current period other comprehensive income (loss) | 0 | ||
Balance | 0 | 0 | 1 |
Accumulated Other Comprehensive Income (Loss) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance | (6,935) | (5,930) | (5,978) |
Other comprehensive income (loss) before reclassifications | (142) | (1,036) | 89 |
Amount reclassified from accumulated other comprehensive income | 1,453 | 31 | (41) |
Net-current period other comprehensive income (loss) | 1,332 | (1,005) | 48 |
Net-current period other comprehensive income (loss) | 1,311 | ||
Balance | $ (5,624) | $ (6,935) | $ (5,930) |
EARNINGS PER COMMON SHARE (Deta
EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Computation of basic and diluted earnings per common share | |||||||||||
Income (loss) from continuing operations | $ (71) | $ (1,482) | $ 212 | $ 50 | $ (56) | $ 367 | $ (17) | $ (17) | $ (1,291) | $ 277 | $ 174 |
Net (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests | 11 | (20) | (14) | ||||||||
Income (loss) from continuing operations attributable to Bunge | (1,280) | 257 | 160 | ||||||||
Convertible preference share dividends | (34) | (34) | (34) | ||||||||
Adjustment of redeemable noncontrolling interest | (8) | 0 | 0 | ||||||||
Income (loss) from discontinued operations, net of tax | $ 0 | $ 0 | $ 0 | $ 0 | $ (2) | $ 7 | $ 7 | $ (2) | 0 | 10 | 0 |
Net income (loss) available to Bunge common shareholders | $ (1,322) | $ 233 | $ 126 | ||||||||
Weighted-average number of common shares outstanding: | |||||||||||
Basic (in shares) | 141,492,289 | 140,968,980 | 140,365,549 | ||||||||
Effect of dilutive shares: | |||||||||||
-stock options and awards (in shares) | 0 | 734,803 | 899,528 | ||||||||
-convertible preference shares (in shares) | 0 | 0 | 0 | ||||||||
Diluted (in shares) | 141,492,289 | 141,703,783 | 141,265,077 | ||||||||
Basic earnings (loss) per common share: | |||||||||||
Net income (loss) from continuing operations (in dollars per share) | $ (0.48) | $ (10.57) | $ 1.46 | $ 0.26 | $ (0.51) | $ 2.48 | $ (0.20) | $ (0.20) | $ (9.34) | $ 1.58 | $ 0.90 |
Net income (loss) from discontinued operations (in dollars per share) | 0 | 0 | 0 | 0 | (0.01) | 0.05 | 0.05 | (0.01) | 0 | 0.07 | 0 |
Net income (loss) to Bunge common shareholders (in dollars per share) | (0.48) | (10.57) | 1.46 | 0.26 | (0.52) | 2.53 | (0.15) | (0.21) | (9.34) | 1.65 | 0.90 |
Diluted earnings (loss) per common share: | |||||||||||
Net income (loss) from continuing operations (in dollars per share) | (10.57) | 1.43 | 0.26 | (0.51) | 2.39 | (0.20) | (0.20) | (9.34) | 1.57 | 0.89 | |
Net income (loss) from discontinued operations (in dollars per share) | 0 | 0 | 0 | 0 | (0.01) | 0.05 | 0.05 | (0.01) | 0 | 0.07 | 0 |
Net income (loss) to Bunge common shareholders (in dollars per share) | $ (0.48) | $ (10.57) | $ 1.43 | $ 0.26 | $ (0.52) | $ 2.44 | $ (0.15) | $ (0.21) | $ (9.34) | $ 1.64 | $ 0.89 |
Convertible Preference Shares | |||||||||||
Diluted earnings (loss) per common share: | |||||||||||
Antidilutive shares excluded from computation of EPS | 8,000,000 | 8,000,000 | 8,000,000 | ||||||||
Stock options and contingently issuable restricted stock units | |||||||||||
Diluted earnings (loss) per common share: | |||||||||||
Antidilutive shares excluded from computation of EPS | 7,000,000 | 4,000,000 | 4,000,000 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-Based Compensation | |||
Share-based compensation expense | $ 39 | $ 46 | $ 29 |
Stock option awards | |||
Fair Value Assumptions | |||
Expected option term (in years) | 5 years 11 months 19 days | 6 years 3 months 21 days | 5 years 10 months 9 days |
Expected dividend yield | 3.81% | 2.44% | 2.09% |
Expected volatility | 25.91% | 25.57% | 24.85% |
Risk-free interest rate | 2.36% | 2.75% | 2.21% |
Shares | |||
Outstanding at beginning of period (in shares) | 6,122,304 | ||
Granted (in shares) | 1,163,100 | ||
Exercised (in shares) | (332,942) | ||
Forfeited or expired (in shares) | (1,144,443) | ||
Outstanding at end of period (in shares) | 5,808,019 | 6,122,304 | |
Exercisable at end of period (in shares) | 4,542,233 | ||
Weighted-Average Exercise Price | |||
Outstanding balance at beginning of period (in dollars per share) | $ 70.93 | ||
Granted (in dollars per share) | 52.53 | ||
Exercised (in dollars per share) | 50.43 | ||
Forfeited or expired (in dollars per share) | 72.75 | ||
Outstanding balance at end of period (in dollars per share) | 68.06 | $ 70.93 | |
Exercisable balance at end of period (in dollars per share) | $ 70.16 | ||
Weighted-Average Remaining Contractual Term | |||
Outstanding , Weighted-Average Remaining Contractual Term | 4 years 7 months 17 days | ||
Exercisable, Weighted-Average Remaining Contractual Term | 3 years 5 months 15 days | ||
Aggregate Intrinsic Value | |||
Outstanding at end of period (in dollars) | $ 12 | ||
Exercisable at end of period (in dollars) | $ 8 | ||
Additional disclosures | |||
Weighted-average grant date fair value (in dollars per share) | $ 9.07 | $ 16.75 | $ 17.13 |
Total intrinsic value of options exercised (in dollars) | $ 1 | $ 4 | $ 11 |
Unrecognized Compensation Cost | |||
Total unrecognized compensation related to non-vested awards (in dollars) | $ 8 | ||
Period of recognition of total unrecognized compensation related to non-vested shares | 2 years | ||
Restricted stock units | |||
Unrecognized Compensation Cost | |||
Total unrecognized compensation related to non-vested awards (in dollars) | $ 45 | ||
Period of recognition of total unrecognized compensation related to non-vested shares | 2 years | ||
Restricted Stock Units | |||
Restricted stock units outstanding at beginning of period (in shares) | 1,873,293 | ||
Granted (in shares) | 1,208,335 | ||
Vested/issued (in shares) | (518,596) | ||
Forfeited/cancelled (in shares) | (763,552) | ||
Restricted stock units outstanding at end of period (in shares) | 1,799,480 | 1,873,293 | |
Weighted- Grant-Date Fair Value | |||
Restricted stock units outstanding at beginning of period (in dollars per share) | $ 69.29 | ||
Granted (in dollars per share) | 53.01 | $ 75.06 | $ 76.79 |
Vested/issued (in dollars per share) | 59.79 | ||
Forfeited/cancelled (in dollars per share) | 60.37 | ||
Restricted stock units outstanding at end of period (in dollars per share) | $ 64.89 | $ 69.29 | |
Restricted Stock Units, Additional Activity Information | |||
Common shares issued, net of common shares withheld to cover taxes | 369,119 | ||
Common shares issued, net of common shares withheld to cover taxes, weighted-average fair value (in dollars per share) | $ 59.79 | ||
Total fair value of restricted stock units vested (in dollars) | $ 31 | ||
Performance-based restricted stock units | |||
Restricted Stock Units | |||
Vested/issued (in shares) | (31,627) | ||
Forfeited/cancelled (in shares) | (454,426) | ||
2016 EIP | |||
Common Shares Reserved for Share-Based Awards | |||
Common shares reserved for grant of stock options, stock awards and other awards | 5,800,000 | ||
Common shares available for future grants | 1,451,918 | ||
2016 EIP | Stock option awards | |||
Share-Based Compensation | |||
Expiration period of award | 10 years | ||
2016 EIP | Stock option awards | Minimum | |||
Share-Based Compensation | |||
Vesting period | 1 year | ||
2016 EIP | Stock option awards | Maximum | |||
Share-Based Compensation | |||
Vesting period | 3 years | ||
2016 EIP | Restricted stock units | Minimum | |||
Share-Based Compensation | |||
Vesting period | 1 year | ||
2016 EIP | Restricted stock units | Maximum | |||
Share-Based Compensation | |||
Vesting period | 3 years | ||
2017 Directors' Plan | |||
Common Shares Reserved for Share-Based Awards | |||
Common shares reserved for grant of stock options, stock awards and other awards | 120,000 | ||
Common shares available for future grants | 50,408 |
LEASES - NARRATIVE (Details)
LEASES - NARRATIVE (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | |
Lessee, Lease, Description [Line Items] | |||
Average remaining lease term | 5 years 1 month 6 days | ||
Lease renewal term | 5 years | ||
Weighted average discount rate | 4.50% | ||
Sublease income receipts due in future periods | $ 34 | ||
Operating leases that have not yet commenced | $ 223 | ||
Initial lease term | 1 year | ||
Minimum sublease income receipts | $ 43 | ||
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Sublease term | 3 years | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Sublease term | 4 years | ||
Land | Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Lease term | 92 years | ||
Certain Facilities | |||
Lessee, Lease, Description [Line Items] | |||
Sublease term | 6 years | ||
Ocean Freight Vessels | Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Freight supply agreement term | 2 months | ||
Ocean Freight Vessels | Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Lease term | 8 years | ||
Freight supply agreement term | 7 years |
LEASES - COMPONENTS OF LEASE EX
LEASES - COMPONENTS OF LEASE EXPENSE (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 322 |
Short-term lease cost | 703 |
Variable lease cost | 20 |
Sublease income | (125) |
Total lease cost | $ 920 |
LEASES - SUPPLEMENTAL CASH FLOW
LEASES - SUPPLEMENTAL CASH FLOW INFORMATION (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows associated with operating leases | $ 320 |
Supplemental non-cash information: | |
Right-of-use assets obtained in exchange for lease obligations | $ 256 |
LEASES - MATURITIES OF LEASE LI
LEASES - MATURITIES OF LEASE LIABILITIES (Details) $ in Millions | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 243 |
2021 | 196 |
2022 | 149 |
2023 | 108 |
2024 | 55 |
Thereafter | 108 |
Total lease payments | 859 |
Less imputed interest | 104 |
Present value of lease liabilities, as separately presented on the condensed consolidated balance sheet | $ 755 |
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 |
SEGMENT INFORMATION - FINANCIAL
SEGMENT INFORMATION - FINANCIAL INFORMATION BY SEGMENT (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Segment Reporting Information | |||||||||||
Number of reportable segments | segment | 5 | ||||||||||
Operating Segment Information | |||||||||||
Net sales to external customers | $ 10,783 | $ 10,323 | $ 10,096 | $ 9,938 | $ 11,543 | $ 11,412 | $ 12,147 | $ 10,641 | $ 41,140 | $ 45,743 | $ 45,794 |
Foreign exchange gains (losses) | (117) | (101) | 95 | ||||||||
Noncontrolling interests' share of interest and tax | 11 | (20) | (14) | ||||||||
Other income (expense)—net | 173 | 48 | 40 | ||||||||
Segment EBIT | (891) | 737 | 436 | ||||||||
Discontinued operations | 0 | 0 | $ 0 | $ 0 | (2) | $ 7 | $ 7 | $ (2) | 0 | 10 | 0 |
Depreciation, depletion and amortization | (548) | (622) | (609) | ||||||||
Investments in affiliates | 827 | 451 | 827 | 451 | 461 | ||||||
Total assets | 18,317 | 19,425 | 18,317 | 19,425 | 18,871 | ||||||
Capital expenditures | 524 | 493 | 662 | ||||||||
Pre-tax, impairment charges | 1,825 | 18 | 52 | ||||||||
Selling, general and administrative expenses | |||||||||||
Operating Segment Information | |||||||||||
Pre-tax, impairment charges | 37 | 7 | 19 | ||||||||
Cost of goods sold | |||||||||||
Operating Segment Information | |||||||||||
Pre-tax, impairment charges | 65 | $ 1,524 | 1,678 | 10 | 16 | ||||||
Other income (expense) | |||||||||||
Operating Segment Information | |||||||||||
Pre-tax, impairment charges | 110 | 1 | 17 | ||||||||
Inter-segment Eliminations | |||||||||||
Operating Segment Information | |||||||||||
Net sales to external customers | (4,967) | (4,823) | (4,531) | ||||||||
Other | |||||||||||
Operating Segment Information | |||||||||||
Foreign exchange gains (losses) | 0 | 0 | 0 | ||||||||
Noncontrolling interests' share of interest and tax | 5 | 7 | 5 | ||||||||
Other income (expense)—net | 75 | (24) | 0 | ||||||||
Segment EBIT | 69 | (24) | 0 | ||||||||
Discontinued operations | 10 | ||||||||||
Depreciation, depletion and amortization | 0 | 0 | 0 | ||||||||
Investments in affiliates | 0 | 0 | 0 | 0 | 0 | ||||||
Total assets | 250 | 161 | 250 | 161 | 182 | ||||||
Capital expenditures | 11 | 7 | 15 | ||||||||
Pre-tax, impairment charges | 2 | ||||||||||
Agribusiness | |||||||||||
Operating Segment Information | |||||||||||
Net sales to external customers | 28,407 | 32,206 | 31,741 | ||||||||
Foreign exchange gains (losses) | (32) | (104) | 85 | ||||||||
Other income (expense)—net | 108 | 79 | 56 | ||||||||
Segment EBIT | 491 | 645 | 256 | ||||||||
Discontinued operations | 0 | ||||||||||
Depreciation, depletion and amortization | (254) | (257) | (267) | ||||||||
Investments in affiliates | 457 | 406 | 457 | 406 | 411 | ||||||
Capital expenditures | 222 | 219 | 318 | ||||||||
Pre-tax, impairment charges | 105 | 12 | 41 | ||||||||
Agribusiness | Other income (expense) | |||||||||||
Operating Segment Information | |||||||||||
Segment EBIT | 10 | ||||||||||
Gain on disposition of subsidiary | 9 | ||||||||||
Agribusiness | Inter-segment Eliminations | |||||||||||
Operating Segment Information | |||||||||||
Net sales to external customers | (4,784) | (4,641) | (4,323) | ||||||||
Agribusiness | Operating | |||||||||||
Operating Segment Information | |||||||||||
Noncontrolling interests' share of interest and tax | 2 | (14) | (9) | ||||||||
Total assets | 12,123 | 11,865 | 12,123 | 11,865 | 12,094 | ||||||
Edible Oil Products | |||||||||||
Operating Segment Information | |||||||||||
Net sales to external customers | 9,186 | 9,129 | 8,018 | ||||||||
Foreign exchange gains (losses) | 0 | 0 | 3 | ||||||||
Other income (expense)—net | (3) | (8) | (7) | ||||||||
Segment EBIT | 59 | 122 | 126 | ||||||||
Discontinued operations | 0 | ||||||||||
Depreciation, depletion and amortization | (159) | (153) | (105) | ||||||||
Investments in affiliates | 0 | 0 | 0 | 0 | 0 | ||||||
Capital expenditures | 149 | 129 | 136 | ||||||||
Pre-tax, impairment charges | 154 | 1 | 3 | ||||||||
Edible Oil Products | Inter-segment Eliminations | |||||||||||
Operating Segment Information | |||||||||||
Net sales to external customers | (153) | (161) | (154) | ||||||||
Edible Oil Products | Operating | |||||||||||
Operating Segment Information | |||||||||||
Noncontrolling interests' share of interest and tax | 7 | (12) | (8) | ||||||||
Total assets | 3,789 | 3,940 | 3,789 | 3,940 | 2,610 | ||||||
Milling Products | |||||||||||
Operating Segment Information | |||||||||||
Net sales to external customers | 1,739 | 1,691 | 1,575 | ||||||||
Foreign exchange gains (losses) | 4 | 2 | (3) | ||||||||
Other income (expense)—net | 5 | (3) | (5) | ||||||||
Segment EBIT | 59 | 90 | 63 | ||||||||
Discontinued operations | 0 | ||||||||||
Depreciation, depletion and amortization | (54) | (58) | (61) | ||||||||
Investments in affiliates | 13 | 0 | 13 | 0 | 0 | ||||||
Capital expenditures | 22 | 23 | 45 | ||||||||
Pre-tax, impairment charges | 29 | 1 | |||||||||
Milling Products | Inter-segment Eliminations | |||||||||||
Operating Segment Information | |||||||||||
Net sales to external customers | (1) | 0 | (5) | ||||||||
Milling Products | Operating | |||||||||||
Operating Segment Information | |||||||||||
Noncontrolling interests' share of interest and tax | 0 | 0 | 0 | ||||||||
Total assets | 1,377 | 1,448 | 1,377 | 1,448 | 1,460 | ||||||
Sugar and Bioenergy | |||||||||||
Operating Segment Information | |||||||||||
Net sales to external customers | 1,288 | 2,257 | 4,054 | ||||||||
Foreign exchange gains (losses) | (89) | 7 | 11 | ||||||||
Other income (expense)—net | (7) | 4 | (4) | ||||||||
Segment EBIT | (1,623) | (135) | (12) | ||||||||
Discontinued operations | 0 | ||||||||||
Depreciation, depletion and amortization | (74) | (146) | (164) | ||||||||
Investments in affiliates | 357 | 45 | 357 | 45 | 50 | ||||||
Capital expenditures | 118 | 110 | 139 | ||||||||
Pre-tax, impairment charges | 1,535 | 5 | 7 | ||||||||
Sugar and Bioenergy | Other income (expense) | |||||||||||
Operating Segment Information | |||||||||||
Segment EBIT | (55) | 16 | |||||||||
Sugar and Bioenergy | Inter-segment Eliminations | |||||||||||
Operating Segment Information | |||||||||||
Net sales to external customers | (1) | (19) | (45) | ||||||||
Sugar and Bioenergy | Operating | |||||||||||
Operating Segment Information | |||||||||||
Noncontrolling interests' share of interest and tax | 0 | 1 | 0 | ||||||||
Total assets | 430 | 1,681 | 430 | 1,681 | 2,195 | ||||||
Fertilizer | |||||||||||
Operating Segment Information | |||||||||||
Net sales to external customers | 520 | 460 | 406 | ||||||||
Foreign exchange gains (losses) | 0 | (6) | (1) | ||||||||
Other income (expense)—net | (5) | 0 | 0 | ||||||||
Segment EBIT | 54 | 39 | 3 | ||||||||
Discontinued operations | 0 | ||||||||||
Depreciation, depletion and amortization | (7) | (8) | (12) | ||||||||
Investments in affiliates | 0 | 0 | 0 | 0 | 0 | ||||||
Capital expenditures | 2 | 5 | 9 | ||||||||
Fertilizer | Inter-segment Eliminations | |||||||||||
Operating Segment Information | |||||||||||
Net sales to external customers | (28) | (2) | (4) | ||||||||
Fertilizer | Operating | |||||||||||
Operating Segment Information | |||||||||||
Noncontrolling interests' share of interest and tax | (3) | (2) | (2) | ||||||||
Total assets | $ 348 | $ 330 | 348 | 330 | 330 | ||||||
Brazil | |||||||||||
Operating Segment Information | |||||||||||
Net sales to external customers | 5,195 | $ 5,553 | $ 7,040 | ||||||||
Brazil | Milling Products | Other income (expense) | |||||||||||
Operating Segment Information | |||||||||||
Segment EBIT | 19 | ||||||||||
Brazil | Sugar and Bioenergy | Other income (expense) | |||||||||||
Operating Segment Information | |||||||||||
Segment EBIT | (49) | ||||||||||
North America | Sugar and Bioenergy | Other income (expense) | |||||||||||
Operating Segment Information | |||||||||||
Segment EBIT | $ (6) |
SEGMENT INFORMATION - NET INCOM
SEGMENT INFORMATION - NET INCOME TO SEGMENT EBIT (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information | |||||||||||
Total segment EBIT from continuing operations | $ (891) | $ 737 | $ 436 | ||||||||
Interest income | 31 | 31 | 38 | ||||||||
Interest expense | (339) | (339) | (263) | ||||||||
Income tax (expense) benefit | 86 | 179 | 56 | ||||||||
Income (loss) from discontinued operations, net of tax | $ 0 | $ 0 | $ 0 | $ 0 | $ (2) | $ 7 | $ 7 | $ (2) | 0 | 10 | 0 |
Noncontrolling interests' share of interest and tax | 11 | (20) | (14) | ||||||||
Net income (loss) attributable to Bunge | $ (51) | $ (1,488) | $ 214 | $ 45 | $ (65) | $ 365 | $ (12) | $ (21) | (1,280) | 267 | 160 |
Other | |||||||||||
Segment Reporting Information | |||||||||||
Total segment EBIT from continuing operations | 69 | (24) | 0 | ||||||||
Income (loss) from discontinued operations, net of tax | 10 | ||||||||||
Noncontrolling interests' share of interest and tax | $ 5 | $ 7 | $ 5 |
SEGMENT INFORMATION - SALES BY
SEGMENT INFORMATION - SALES BY PRODUCT GROUP (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue from External Customer [Line Items] | |||||||||||
Net sales | $ 10,783 | $ 10,323 | $ 10,096 | $ 9,938 | $ 11,543 | $ 11,412 | $ 12,147 | $ 10,641 | $ 41,140 | $ 45,743 | $ 45,794 |
Agricultural Commodity Products | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 28,407 | 32,206 | 31,741 | ||||||||
Edible Oil Products | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 9,186 | 9,129 | 8,018 | ||||||||
Wheat Milling Products | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 1,050 | 1,037 | 988 | ||||||||
Corn Milling Products | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 689 | 654 | 587 | ||||||||
Sugar and Bioenergy Products | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 1,288 | 2,257 | 4,054 | ||||||||
Fertilizer Products | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | $ 520 | $ 460 | $ 406 |
SEGMENT INFORMATION - GEOGRAPHI
SEGMENT INFORMATION - GEOGRAPHIC AREA INFORMATION (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
External Customers | |||||||||||
Net sales to external customers | $ 10,783 | $ 10,323 | $ 10,096 | $ 9,938 | $ 11,543 | $ 11,412 | $ 12,147 | $ 10,641 | $ 41,140 | $ 45,743 | $ 45,794 |
Long-lived Assets | |||||||||||
Long-lived assets | 6,167 | 7,090 | 6,167 | 7,090 | 6,638 | ||||||
Europe | |||||||||||
External Customers | |||||||||||
Net sales to external customers | 15,278 | 17,802 | 16,313 | ||||||||
Long-lived Assets | |||||||||||
Long-lived assets | 2,057 | 1,912 | 2,057 | 1,912 | 1,485 | ||||||
United States | |||||||||||
External Customers | |||||||||||
Net sales to external customers | 9,147 | 9,955 | 10,128 | ||||||||
Long-lived Assets | |||||||||||
Long-lived assets | 1,413 | 1,561 | 1,413 | 1,561 | 1,267 | ||||||
Asia-Pacific | |||||||||||
External Customers | |||||||||||
Net sales to external customers | 8,019 | 8,651 | 8,613 | ||||||||
Long-lived Assets | |||||||||||
Long-lived assets | 613 | 679 | 613 | 679 | 483 | ||||||
Brazil | |||||||||||
External Customers | |||||||||||
Net sales to external customers | 5,195 | 5,553 | 7,040 | ||||||||
Long-lived Assets | |||||||||||
Long-lived assets | 1,065 | 1,994 | 1,065 | 1,994 | 2,406 | ||||||
Argentina | |||||||||||
External Customers | |||||||||||
Net sales to external customers | 1,015 | 1,166 | 1,433 | ||||||||
Long-lived Assets | |||||||||||
Long-lived assets | 190 | 161 | 190 | 161 | 216 | ||||||
Canada | |||||||||||
External Customers | |||||||||||
Net sales to external customers | 1,246 | 1,216 | 1,114 | ||||||||
Long-lived Assets | |||||||||||
Long-lived assets | 448 | 401 | 448 | 401 | 440 | ||||||
Rest of world | |||||||||||
External Customers | |||||||||||
Net sales to external customers | 1,240 | 1,400 | 1,153 | ||||||||
Long-lived Assets | |||||||||||
Long-lived assets | $ 381 | $ 382 | $ 381 | $ 382 | $ 341 |
SEGMENT INFORMATION - NET SALES
SEGMENT INFORMATION - NET SALES TO EXTERNAL CUSTOMERS (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue from External Customer [Line Items] | |||||||||||
Sales from other arrangements | $ 30,210 | $ 34,491 | |||||||||
Sales from contracts with customers | 10,930 | 11,252 | |||||||||
Revenues | $ 10,783 | $ 10,323 | $ 10,096 | $ 9,938 | $ 11,543 | $ 11,412 | $ 12,147 | $ 10,641 | 41,140 | 45,743 | $ 45,794 |
Agribusiness | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Sales from other arrangements | 27,457 | 31,040 | |||||||||
Sales from contracts with customers | 950 | 1,166 | |||||||||
Revenues | 28,407 | 32,206 | 31,741 | ||||||||
Edible Oil Products | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Sales from other arrangements | 1,953 | 1,818 | |||||||||
Sales from contracts with customers | 7,233 | 7,311 | |||||||||
Revenues | 9,186 | 9,129 | 8,018 | ||||||||
Milling Products | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Sales from other arrangements | 71 | 65 | |||||||||
Sales from contracts with customers | 1,668 | 1,626 | |||||||||
Revenues | 1,739 | 1,691 | 1,575 | ||||||||
Sugar and Bioenergy | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Sales from other arrangements | 729 | 1,568 | |||||||||
Sales from contracts with customers | 559 | 689 | |||||||||
Revenues | 1,288 | 2,257 | 4,054 | ||||||||
Fertilizer | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Sales from other arrangements | 0 | 0 | |||||||||
Sales from contracts with customers | 520 | 460 | |||||||||
Revenues | $ 520 | $ 460 | $ 406 |
QUARTERLY FINANCIAL INFORMATI_3
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 10,783 | $ 10,323 | $ 10,096 | $ 9,938 | $ 11,543 | $ 11,412 | $ 12,147 | $ 10,641 | $ 41,140 | $ 45,743 | $ 45,794 |
Gross profit | 571 | (978) | 512 | 437 | 422 | 918 | 542 | 384 | 542 | 2,266 | 1,765 |
Income (loss) from continuing operations | (71) | (1,482) | 212 | 50 | (56) | 367 | (17) | (17) | (1,291) | 277 | 174 |
Income (loss) from discontinued operations, net of tax | 0 | 0 | 0 | 0 | (2) | 7 | 7 | (2) | 0 | 10 | 0 |
Net income (loss) | (71) | (1,482) | 212 | 50 | (58) | 374 | (10) | (19) | (1,291) | 287 | 174 |
Net income (loss) attributable to Bunge | $ (51) | $ (1,488) | $ 214 | $ 45 | $ (65) | $ 365 | $ (12) | $ (21) | $ (1,280) | $ 267 | $ 160 |
Earnings (loss) per common share-basic | |||||||||||
Net income (loss) from continuing operations (in dollars per share) | $ (0.48) | $ (10.57) | $ 1.46 | $ 0.26 | $ (0.51) | $ 2.48 | $ (0.20) | $ (0.20) | $ (9.34) | $ 1.58 | $ 0.90 |
Net income (loss) from discontinued operations (in dollars per share) | 0 | 0 | 0 | 0 | (0.01) | 0.05 | 0.05 | (0.01) | 0 | 0.07 | 0 |
Net income (loss) to Bunge common shareholders (in dollars per share) | (0.48) | (10.57) | 1.46 | 0.26 | (0.52) | 2.53 | (0.15) | (0.21) | (9.34) | 1.65 | 0.90 |
Earnings (loss) per common share-diluted | |||||||||||
Net income (loss) from continuing operations (in dollars per share) | (10.57) | 1.43 | 0.26 | (0.51) | 2.39 | (0.20) | (0.20) | (9.34) | 1.57 | 0.89 | |
Net income (loss) from discontinued operations (in dollars per share) | 0 | 0 | 0 | 0 | (0.01) | 0.05 | 0.05 | (0.01) | 0 | 0.07 | 0 |
Net income (loss) to Bunge common shareholders (in dollars per share) | $ (0.48) | $ (10.57) | $ 1.43 | $ 0.26 | $ (0.52) | $ 2.44 | $ (0.15) | $ (0.21) | $ (9.34) | $ 1.64 | $ 0.89 |
SCHEDULE II-VALUATION AND QUA_2
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowances for doubtful accounts | |||
Movement in Valuation Allowances and Reserves | |||
Balance at beginning of period | $ 185 | $ 183 | $ 212 |
Charged to costs and expenses | 38 | 56 | 42 |
Charged to other accounts | (2) | (18) | (1) |
Deductions from reserves | (49) | (36) | (70) |
Balance at end of period | 172 | 185 | 183 |
Allowances for secured advances to suppliers | |||
Movement in Valuation Allowances and Reserves | |||
Balance at beginning of period | 70 | 65 | 50 |
Charged to costs and expenses | 7 | 21 | 20 |
Charged to other accounts | (3) | (10) | 0 |
Deductions from reserves | (8) | (6) | (5) |
Balance at end of period | 66 | 70 | 65 |
Allowances for recoverable taxes | |||
Movement in Valuation Allowances and Reserves | |||
Balance at beginning of period | 37 | 39 | 35 |
Charged to costs and expenses | 52 | 6 | 12 |
Charged to other accounts | 0 | (5) | (1) |
Deductions from reserves | (11) | (3) | (7) |
Balance at end of period | 78 | 37 | 39 |
Income tax valuation allowances | |||
Movement in Valuation Allowances and Reserves | |||
Balance at beginning of period | 766 | 900 | 839 |
Charged to costs and expenses | 66 | 114 | 43 |
Charged to other accounts | (28) | (98) | 18 |
Deductions from reserves | (400) | (150) | 0 |
Balance at end of period | $ 404 | $ 766 | $ 900 |
Uncategorized Items - bg-123120
Label | Element | Value | |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 0 | |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 21,000,000 | [1] |
Retained Earnings [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 21,000,000 | |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 21,000,000 | [1] |
AOCI Attributable to Parent [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (21,000,000) | |
[1] | See Note 1 for further details. |