Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 23, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-16625 | |
Entity Registrant Name | BUNGE LIMITED | |
Entity Incorporation, State or Country Code | D0 | |
Entity Tax Identification Number | 98-0231912 | |
Entity Address, Address Line One | 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 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Shares, $0.01 par value per share | |
Trading Symbol | BG | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 141,716,919 | |
Entity Central Index Key | 0001144519 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
Net sales | $ 15,391 | $ 9,462 | $ 28,352 | $ 18,635 |
Cost of goods sold | (14,726) | (8,357) | (26,540) | (17,356) |
Gross profit | 665 | 1,105 | 1,812 | 1,279 |
Selling, general and administrative expenses | (297) | (346) | (568) | (641) |
Interest income | 6 | 6 | 15 | 13 |
Interest expense | (54) | (62) | (127) | (139) |
Foreign exchange gains (losses) | 35 | 27 | 25 | 21 |
Other income (expense) – net | 35 | 27 | 298 | 20 |
Income (loss) from affiliates | 29 | (67) | 73 | (111) |
Income (loss) before income tax | 419 | 690 | 1,528 | 442 |
Income tax expense (benefit) | (50) | (168) | (242) | (113) |
Net income (loss) | 369 | 522 | 1,286 | 329 |
Net (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests | 7 | 6 | 92 | (3) |
Net income (loss) attributable to Bunge | 362 | 516 | 1,194 | 332 |
Convertible preference share dividends | (9) | (9) | (17) | (17) |
Adjustment of redeemable noncontrolling interest | 0 | 5 | 0 | (10) |
Net income (loss) available to Bunge common shareholders | $ 353 | $ 512 | $ 1,177 | $ 305 |
Earnings per common share - basic | ||||
Net income (loss) attributable to Bunge common shareholders—basic (in dollars per share) | $ 2.50 | $ 3.62 | $ 8.35 | $ 2.15 |
Earnings per common share—diluted (Note 19) | ||||
Net income (loss) attributable to Bunge common shareholders—diluted (in dollars per share) | $ 2.37 | $ 3.47 | $ 7.85 | $ 2.14 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 369 | $ 522 | $ 1,286 | $ 329 |
Other comprehensive income (loss): | ||||
Foreign exchange translation adjustment | 328 | (98) | 71 | (950) |
Unrealized gains (losses) on designated hedges, net of tax benefit (expense) of $(3) and $(3) in 2021 and $1 and $6 in 2020 | (92) | 3 | (94) | 54 |
Reclassification of realized net (gains) losses to net income, net of tax (benefit) expense of zero and zero in 2021 and $(1) and zero in 2020 | (1) | 4 | (2) | 1 |
Pension adjustment, net of tax (expense) benefit of $(2) and $(2) in 2021 and zero and zero in 2020 | (2) | 0 | (2) | 0 |
Total other comprehensive income (loss) | 233 | (91) | (27) | (895) |
Total comprehensive income (loss) | 602 | 431 | 1,259 | (566) |
Less: comprehensive (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests | (14) | (18) | (80) | 7 |
Total comprehensive income (loss) attributable to Bunge | $ 588 | $ 413 | $ 1,179 | $ (559) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized gains (losses) on designated cash flow and net investment hedges, tax (expense) benefit | $ (3) | $ 1 | $ (3) | $ 6 |
Reclassification of realized net losses (gains) to net income, tax expense (benefit) | 0 | (1) | 0 | 0 |
Pension adjustment, tax (expense) benefit | $ (2) | $ 0 | $ (2) | $ 0 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 464 | $ 352 |
Trade accounts receivable (less allowances of $94 and $93) (Note 5) | 2,526 | 1,717 |
Inventories (Note 6) | 8,460 | 7,172 |
Assets held for sale (Note 3) | 424 | 672 |
Other current assets (Note 7) | 5,681 | 6,268 |
Total current assets | 17,555 | 16,181 |
Property, plant and equipment, net | 3,719 | 3,775 |
Operating lease assets | 858 | 868 |
Goodwill | 579 | 586 |
Other intangible assets, net | 502 | 529 |
Investments in affiliates | 714 | 631 |
Deferred income taxes | 473 | 339 |
Other non-current assets (Note 8) | 685 | 746 |
Total assets | 25,085 | 23,655 |
Current liabilities: | ||
Short-term debt (Note 13) | 1,826 | 2,828 |
Current portion of long-term debt (Note 13) | 33 | 8 |
Trade accounts payable (includes $702 and $294 carried at fair value) | 3,634 | 2,636 |
Current operating lease obligations | 265 | 235 |
Liabilities held for sale (Note 3) | 55 | 438 |
Other current liabilities (Note 10) | 4,508 | 4,840 |
Total current liabilities | 10,321 | 10,985 |
Long-term debt (Note 13) | 5,334 | 4,452 |
Deferred income taxes | 413 | 360 |
Non-current operating lease obligations | 539 | 581 |
Other non-current liabilities (Note 16) | 664 | 657 |
Redeemable noncontrolling interest (Note 17) | 483 | 415 |
Equity | ||
Convertible perpetual preference shares, par value $.01; authorized – 21,000,000 shares, issued and outstanding: 2021 and 2020 - 6,899,683 shares (liquidation preference $100 per share) | 690 | 690 |
Common shares, par value $.01; authorized – 400,000,000 shares; issued and outstanding: 2021 –141,714,847 shares, 2020 – 139,790,238 shares | 1 | 1 |
Additional paid-in capital | 5,512 | 5,408 |
Retained earnings | 8,259 | 7,236 |
Accumulated other comprehensive income (loss) (Note 18) | (6,258) | (6,246) |
Treasury shares, at cost - 2021 and 2020 - 15,428,313 shares | (1,020) | (1,020) |
Total Bunge shareholders’ equity | 7,184 | 6,069 |
Noncontrolling interests | 147 | 136 |
Total equity | 7,331 | 6,205 |
Total liabilities, redeemable noncontrolling interest and equity | $ 25,085 | $ 23,655 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Trade accounts receivable, allowances (in dollars) | $ 94 | $ 93 |
Trade accounts payable at fair value | $ 702 | $ 294 |
Convertible perpetual preference shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Convertible perpetual preference shares, authorized (in shares) | 21,000,000 | 21,000,000 |
Convertible perpetual preference shares, issued (in shares) | 6,899,683 | 6,899,683 |
Convertible perpetual preference shares, outstanding (in shares) | 6,899,683 | 6,899,683 |
Convertible perpetual preference shares, liquid preference (in dollars per share) | $ 100 | $ 100 |
Common shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common shares, authorized (in shares) | 400,000,000 | 400,000,000 |
Common shares, issued (in shares) | 141,714,847 | 139,790,238 |
Common shares, outstanding (in shares) | 141,714,847 | 139,790,238 |
Common shares, at cost (in shares) | 15,428,313 | 15,428,313 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
OPERATING ACTIVITIES | ||
Net income (loss) | $ 1,286 | $ 329 |
Adjustments to reconcile net income (loss) to cash provided by (used for) operating activities: | ||
Foreign exchange (gain) loss on net debt | (133) | (107) |
Bad debt expense | 3 | 65 |
Depreciation, depletion and amortization | 212 | 217 |
Share-based compensation expense | 29 | 27 |
Deferred income tax expense (benefit) | (83) | 50 |
(Gain) loss on sale of investments and property, plant and equipment | (240) | (18) |
Other, net | (56) | 124 |
Changes in operating assets and liabilities, excluding the effects of acquisitions and dispositions: | ||
Trade accounts receivable | (784) | (99) |
Inventories | (1,003) | (1,308) |
Secured advances to suppliers | 25 | (218) |
Trade accounts payable | 737 | 75 |
Advances on sales | (150) | (84) |
Net unrealized (gains) losses on derivative contracts | 639 | 3 |
Margin deposits | 391 | (90) |
Marketable securities | (5) | 62 |
Beneficial interest in securitized trade receivables | (2,121) | (761) |
Other, net | (183) | 231 |
Cash provided by (used for) operating activities | (1,436) | (1,502) |
INVESTING ACTIVITIES | ||
Payments made for capital expenditures | (133) | (127) |
Proceeds from investments | 26 | 238 |
Payments for investments | (153) | (226) |
Settlements of net investment hedges | (25) | 66 |
Proceeds from beneficial interest in securitized trade receivables | 2,049 | 748 |
Payments for beneficial interest in securitized trade receivables | (177) | 0 |
Proceeds from disposals of businesses and property, plant and equipment | 345 | 5 |
Payments for investments in affiliates | (42) | (2) |
Other, net | (1) | 26 |
Cash provided by (used for) investing activities | 1,889 | 728 |
FINANCING ACTIVITIES | ||
Proceeds from short-term debt | 19,986 | 13,696 |
Repayments of short-term debt | (20,954) | (12,891) |
Proceeds from long-term debt | 998 | 1,762 |
Repayments of long-term debt | 0 | (1,567) |
Proceeds from the exercise of options for common shares | 72 | 2 |
Repurchases of common shares | 0 | (100) |
Dividends paid to common and preference shareholders | (158) | (159) |
Acquisition of noncontrolling interest | (147) | 0 |
Other, net | (27) | (17) |
Cash provided by (used for) financing activities | (230) | 726 |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (100) | 5 |
Net increase (decrease) in cash and cash equivalents and restricted cash | 123 | (43) |
Cash and cash equivalents and restricted cash - beginning of period | 381 | 322 |
Cash and cash equivalents and restricted cash - end of period | $ 504 | $ 279 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS (Unaudited) - USD ($) $ in Millions | Total | Redeemable Non-Controlling Interests | Convertible Preference Shares | Common Shares | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Shares | Non- Controlling Interests |
Beginning balance at Dec. 31, 2019 | $ 397 | ||||||||
Increase (Decrease) in Temporary Equity | |||||||||
Net income (loss) | (9) | ||||||||
Other comprehensive income (loss) | (1) | ||||||||
Redemption value adjustment | 10 | ||||||||
Ending balance at Jun. 30, 2020 | 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 | |
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income (loss) | 338 | 332 | 6 | ||||||
Other comprehensive income (loss) | (894) | (891) | (3) | ||||||
Redemption value adjustment | (10) | (10) | |||||||
Dividends on common shares | (142) | (142) | |||||||
Dividends on preference shares | (17) | (17) | |||||||
Dividends to noncontrolling interests on subsidiary common stock | (4) | (4) | |||||||
Acquisition of noncontrolling interest | (17) | (17) | 0 | ||||||
Share-based compensation expense | 27 | 27 | |||||||
Repurchase of common shares | (100) | (100) | |||||||
Repurchase of common shares (in shares) | (2,546,000) | ||||||||
Issuance of common shares, including stock dividends (in shares) | 372,876 | ||||||||
Issuance of common shares, including stock dividends | (2) | 0 | (2) | ||||||
Balance (in shares) at Jun. 30, 2020 | 6,899,683 | 139,640,018 | |||||||
Balance at Jun. 30, 2020 | 5,209 | $ 690 | $ 1 | 5,356 | 6,581 | (6,515) | (1,020) | 116 | |
Beginning balance at Mar. 31, 2020 | 394 | ||||||||
Increase (Decrease) in Temporary Equity | |||||||||
Net income (loss) | (1) | ||||||||
Other comprehensive income (loss) | 9 | ||||||||
Redemption value adjustment | (5) | ||||||||
Ending balance at Jun. 30, 2020 | 397 | ||||||||
Balance (in shares) at Mar. 31, 2020 | 6,899,683 | 142,146,260 | |||||||
Balance at Mar. 31, 2020 | 4,972 | $ 690 | $ 1 | 5,344 | 6,158 | (6,411) | (920) | 110 | |
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income (loss) | 523 | 516 | 7 | ||||||
Other comprehensive income (loss) | (100) | (104) | 4 | ||||||
Redemption value adjustment | 5 | 5 | |||||||
Dividends on common shares | (71) | (71) | |||||||
Dividends on preference shares | (9) | (9) | |||||||
Acquisition of noncontrolling interest | (23) | (18) | (5) | ||||||
Share-based compensation expense | 12 | 12 | |||||||
Repurchase of common shares | (100) | (100) | |||||||
Repurchase of common shares (in shares) | (2,546,000) | ||||||||
Issuance of common shares, including stock dividends (in shares) | 39,758 | ||||||||
Issuance of common shares, including stock dividends | 0 | 0 | 0 | ||||||
Balance (in shares) at Jun. 30, 2020 | 6,899,683 | 139,640,018 | |||||||
Balance at Jun. 30, 2020 | 5,209 | $ 690 | $ 1 | 5,356 | 6,581 | (6,515) | (1,020) | 116 | |
Beginning balance at Dec. 31, 2020 | 415 | 415 | |||||||
Increase (Decrease) in Temporary Equity | |||||||||
Net income (loss) | 79 | ||||||||
Other comprehensive income (loss) | (12) | ||||||||
Disposition of noncontrolling interest in a subsidiary | 1 | ||||||||
Ending balance at Jun. 30, 2021 | 483 | 483 | |||||||
Balance (in shares) at Dec. 31, 2020 | 6,899,683 | 139,790,238 | |||||||
Balance at Dec. 31, 2020 | 6,205 | $ 690 | $ 1 | 5,408 | 7,236 | (6,246) | (1,020) | 136 | |
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income (loss) | 1,207 | 1,194 | 13 | ||||||
Other comprehensive income (loss) | (12) | (12) | 0 | ||||||
Dividends on common shares | (147) | (147) | |||||||
Dividends on preference shares | (17) | (17) | |||||||
Dividends to noncontrolling interests on subsidiary common stock | (2) | (2) | |||||||
Acquisition of noncontrolling interest | (3) | (3) | 0 | ||||||
Share-based compensation expense | 29 | 29 | |||||||
Issuance of common shares, including stock dividends (in shares) | 1,924,609 | ||||||||
Issuance of common shares, including stock dividends | 71 | 75 | (4) | ||||||
Balance (in shares) at Jun. 30, 2021 | 6,899,683 | 141,714,847 | |||||||
Balance at Jun. 30, 2021 | 7,331 | $ 690 | $ 1 | 5,512 | 8,259 | (6,258) | (1,020) | 147 | |
Beginning balance at Mar. 31, 2021 | 473 | ||||||||
Increase (Decrease) in Temporary Equity | |||||||||
Net income (loss) | 2 | ||||||||
Other comprehensive income (loss) | 7 | ||||||||
Disposition of noncontrolling interest in a subsidiary | 1 | ||||||||
Ending balance at Jun. 30, 2021 | 483 | $ 483 | |||||||
Balance (in shares) at Mar. 31, 2021 | 6,899,683 | 141,260,402 | |||||||
Balance at Mar. 31, 2021 | 6,781 | $ 690 | $ 1 | 5,468 | 7,982 | (6,484) | (1,020) | 144 | |
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income (loss) | 367 | 363 | 4 | ||||||
Other comprehensive income (loss) | 227 | 226 | 1 | ||||||
Dividends on common shares | (76) | (76) | |||||||
Dividends on preference shares | (9) | (9) | |||||||
Dividends to noncontrolling interests on subsidiary common stock | (2) | (2) | |||||||
Share-based compensation expense | 16 | 16 | |||||||
Issuance of common shares, including stock dividends (in shares) | 454,445 | ||||||||
Issuance of common shares, including stock dividends | 27 | 28 | (1) | ||||||
Balance (in shares) at Jun. 30, 2021 | 6,899,683 | 141,714,847 | |||||||
Balance at Jun. 30, 2021 | $ 7,331 | $ 690 | $ 1 | $ 5,512 | $ 8,259 | $ (6,258) | $ (1,020) | $ 147 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends on common shares (in dollars per share) | $ 0.525 | $ 0.50 | $ 1.025 | $ 1 |
Dividends on preferred shares (in dollars per share) | $ 1.21875 | $ 1.21875 | $ 2.4375 | $ 2.4375 |
BASIS OF PRESENTATION, PRINCIPL
BASIS OF PRESENTATION, PRINCIPLES OF CONSOLIDATION, AND SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION, PRINCIPLES OF CONSOLIDATION, AND SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION, PRINCIPLES OF CONSOLIDATION, AND SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited condensed consolidated financial statements include the accounts of Bunge Limited (“Bunge” or the "Company"), its subsidiaries and variable interest entities (“VIEs”) in which Bunge is considered to be the primary beneficiary, and as a result, include the assets, liabilities, revenues and expenses of all entities over which Bunge has a controlling financial interest. The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X under the Securities Exchange Act of 1934, as amended (“Exchange Act”). Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to Securities and Exchange Commission (“SEC”) rules. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation have been included. The condensed consolidated balance sheet at December 31, 2020 has been derived from Bunge’s audited consolidated financial statements at that date. Operating results for the six months ended June 30, 2021 are not necessarily indicative of the results to be expected for the year ending December 31, 2021. The financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2020, forming part of Bunge’s 2020 Annual Report on Form 10-K filed with the SEC on February 19, 2021. On January 6, 2021, Bunge entered into a series of agreements to acquire a minority interest and certain intellectual property, licensing, and distribution rights in Australian Plant Proteins, a variable interest entity, for $35 million. The Company's exposure to loss related to this unconsolidated investment is limited to the book value of the investment. For additional information on variable interest entities for which Bunge has determined it is not the primary beneficiary, along with the Company's maximum exposure to loss related to these unconsolidated investments, refer to Note 11 - Investments in Affiliates, included in the Company's 2020 Annual Report on Form 10-K. Effective January 1, 2021, the Company changed its segment reporting to align with its new value chain operational structure, as further described in Note 20- Segment Information . Corresponding prior period amounts have been restated to conform to current period classification. Effective July 1, 2020, the Company changed its reporting of cash proceeds from and repayments of short-term debt with maturities of 90 days or less to separately present such cash proceeds and repayments in its condensed consolidated statement of cash flows. Prior to July 1, 2020, the Company presented cash proceeds from and repayments of short-term debt with maturities of 90 days or less on a net basis. Prior period amounts have been reclassified to conform to current presentation. Cash, Cash Equivalents, and Restricted Cash Restricted cash is included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the condensed consolidated statement of cash flows. The following table provides a reconciliation of cash and cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows. (US$ in millions) June 30, 2021 June 30, 2020 Cash and cash equivalents $ 464 $ 277 Restricted cash included in other current assets 40 2 Total $ 504 $ 279 Cash paid for taxes, which primarily comprises inco me tax and value added tax, net of refunds, was $121 million and $175 million for the six months ended June 30, 2021 and 2020, respectively. Cash paid for interest expense was $79 million and $133 million for the six months ended June 30, 2021 and 2020, res pectively. |
ACCOUNTING PRONOUNCEMENTS
ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
ACCOUNTING PRONOUNCEMENTS | ACCOUNTING PRONOUNCEMENTS The below outlines new accounting pronouncements and provides updates on certain previously disclosed Accounting Standards Updates ("ASUs"). New Accounting Pronouncements In August 2020, the Financial Accounting Standards Board ("FASB") issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40), which simplifies the accounting for convertible instruments and contracts in an entity’s own equity. The guidance also addresses how convertible instruments are accounted for in the diluted earnings per share calculation and requires enhanced disclosures about the terms of convertible instruments and contracts in an entity’s own equity. Either a modified retrospective method of transition or a fully retrospective method of transition is permissible for the adoption of this standard. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted no earlier than the fiscal year beginning after December 15, 2020. The Company does not expect this standard to have a material impact on its condensed consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848)- Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burden related to the expected market transition from the London Interbank Offered Rate ("LIBOR") and other interbank offered rates to alternative reference rates. The guidance is effective upon issuance and is to be applied prospectively from any date beginning March 12, 2020 through December 31, 2022. The Company continues to evaluate the impacts of this standard on its condensed consolidated financial statements. Recently Adopted Accounting Pronouncements 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 Company's adoption of this guidance, which was effective January 1, 2021, did not have a material impact on Bunge's condensed consolidated financial statements. |
PORTFOLIO RATIONALIZATION INITI
PORTFOLIO RATIONALIZATION INITIATIVES | 6 Months Ended |
Jun. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
PORTFOLIO RATIONALIZATION INITIATIVES | PORTFOLIO RATIONALIZATION INITIATIVES US Grain Disposition On April 21, 2020, Bunge announced that it had entered into an agreement to sell a portfolio of interior grain elevators located in the United States. On July 9, 2021, the transaction closed in accordance with the terms of the agreement. Upon closing, Bunge received cash proceeds of $298 million in consideration for the book value of Property, plant and equipment, net, plus an additional sum in consideration for the value of net working capital transferred on the date of closing, subject to final closing adjustments. In connection with this agreement, the Company classified the assets and liabilities to be sold, which are reported under the Agribusiness reportable segment as held for sale in its condensed consolidated financial statements as of June 30, 2021. The following table presents the disposal group's major classes of assets and liabilities included in Assets held for sale and Liabilities held for sale, respectively, on the condensed consolidated balance sheets at June 30, 2021: (US$ in millions) June 30, Inventories $ 111 Other current assets 169 Property, plant and equipment, net 128 Operating lease assets 6 Goodwill 6 Assets held for sale $ 420 Trade accounts payable $ 43 Current operating lease obligations 1 Other current liabilities 6 Non-current operating lease obligations 5 Liabilities held for sale $ 55 In addition to the disposition discussed above, from time to time the Company has Assets held for sale and Liabilities held for sale related to insignificant dispositions. Total Assets held for sale related to these transactions is $4 million at June 30, 2021. There are no Liabilities held for sale related to these transactions at June 30, 2021. Rotterdam Oils Refinery Disposition On November 4, 2020, Bunge announced that its Bunge Loders Croklaan joint venture had entered into an agreement to sell its oil refinery located in Rotterdam, Netherlands. Bunge will lease back the facility from the buyer in a phased transition through 2024 so that it can continue to supply its customers with its products. The transaction, accounted for as an asset sale, closed during the first quarter of 2021. The Company recorded a gain of $219 million on the sale, which was recorded within Other income (expense)—net on the condensed consolidated statement of income for the six months ended June 30, 2021. |
TRADE STRUCTURED FINANCE PROGRA
TRADE STRUCTURED FINANCE PROGRAM | 6 Months Ended |
Jun. 30, 2021 | |
Trade Structured Finance Program [Abstract] | |
TRADE STRUCTURED FINANCE PROGRAM | TRADE STRUCTURED FINANCE PROGRAM The Company engages in various trade structured finance activities to leverage the value of its global trade flows. These activities include programs under which the Company generally obtains U.S. dollar-denominated letters of credit (“LCs”) from financial institutions, each based on an underlying commodity trade flow, 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 June 30, 2021 and December 31, 2020, time deposits and LCs of $6,043 million and $4,715 million, respectively, are presented net on the condensed consolidated balance sheets as the criteria of ASC 210-20, Offsetting , have been met. The net losses and gains related to such activities are included as an adjustment to Cost of goods sold in the accompanying condensed consolidated statements of income. At June 30, 2021 and December 31, 2020, time deposits, including those presented on a net basis, carried weighted-average interest rates of 1.21% and 1.87%, respectively. During the six months ended June 30, 2021 and 2020, total net proceeds from issuances of LCs were $3,995 million and $2,651 million, respectively. These cash inflows are offset by the related cash outflows resulting from placement of the time deposits and repayment of the LCs. All cash flows related to the programs are included in operating activities in the condensed consolidated statements of cash flows. As part of the trade structured finance activities, LCs may be sold to financial institutions on a discounted basis. Bunge does not service derecognized LCs. The terms of the sale may require the Company to continue to make periodic interest payments to financial institutions based on changes in LIBOR for a period of up to 365 days. Bunge’s payment obligation, included in Other current liabilities, to financial institutions as part of the trade structured finance activities, including any unrealized gain or loss on changes in LIBOR, is not significant as of June 30, 2021 and December 31, 2020. The notional amounts of LCs subject to continuing variable interest payments that have been derecognized from the Company's condensed consolidated balance sheets as of June 30, 2021 and December 31, 2020 are included in Note 12- Derivative Instruments And Hedging Activities . The net gain or loss included in Cost of goods sold resulting from the fair valuation of such variable interest rate obligations is not significant for the three and six months ended June 30, 2021 and 2020. |
TRADE ACCOUNTS RECEIVABLE AND T
TRADE ACCOUNTS RECEIVABLE AND TRADE RECEIVABLES SECURITIZATION PROGRAM | 6 Months Ended |
Jun. 30, 2021 | |
Transfers and Servicing [Abstract] | |
TRADE ACCOUNTS RECEIVABLE AND TRADE RECEIVABLES SECURITIZATION PROGRAM | TRADE ACCOUNTS RECEIVABLE AND TRADE RECEIVABLES SECURITIZATION PROGRAM Trade Accounts Receivable Bunge establishes an allowance for lifetime expected credit losses utilizing an aging schedule for each pool of trade accounts receivable. The risk characteristics for each individual receivable were homogenous across the pool of trade accounts receivable and the determination of pools was sufficiently granular to address any differences in risk characteristics. Any receivables that did not share similar risk characteristics were separated into different pools for further analysis. Pools are determined based on risk characteristics such as the type of customer and geography. A default rate is derived using a provision matrix with data based on Bunge's historical receivables information. The default rate is then applied to the pool to determine the allowance for expected credit losses. Given the short term nature of the Company's trade accounts receivable, the default rate is only adjusted if significant changes in the credit profile of the portfolio are identified (e.g., poor crop years, credit issues at the country level, systematic risk), resulting in historic loss rates that are not representative of forecasted losses. Specifically, in establishing appropriate default rates as of June 30, 2021, the Company took into consideration expected impacts on its customers and other debtors in view of the COVID-19 pandemic, as well as other factors, which did not result in a material impact on the financial statements. Bunge records and reports accrued interest receivable within the same line item as the related receivable. The allowance for expected credit losses is estimated on the amortized cost basis of the trade accounts receivable, including accrued interest receivable. Bunge recognizes credit loss expense when establishing an allowance for accrued interest receivable. Changes to the allowance for lifetime expected credit losses related to trade accounts receivable are as follows: Six Months Ended June 30, 2021 Rollforward of the Allowance for Credit Losses (US$ in millions) Short-term Long-term (1) Total Allowance as of January 1, 2021 $ 93 $ 51 $ 144 Current period provisions 17 — 17 Recoveries (13) (1) (14) Write-offs charged against the allowance (2) — (2) Foreign exchange translation differences (1) 1 — Allowance as of June 30, 2021 $ 94 $ 51 $ 145 (1) Long-term portion of the allowance for credit losses included in Other non-current assets. Six Months Ended June 30, 2020 Rollforward of the Allowance for Credit Losses (US$ in millions) Short-term Long-term (1) Total Allowance as of January 1, 2020 $ 108 $ 65 $ 173 Current period provisions (2) 42 — 42 Recoveries (21) (2) (23) Write-offs charged against the allowance (21) — (21) Foreign exchange translation differences (13) (12) (25) Allowance as of June 30, 2020 (2) $ 95 $ 51 $ 146 (1) Long-term portion of the allowance for credit losses included in Other non-current assets. (2) In addition to the above mentioned prior period provisions associated with lifetime expected credit losses, at June 30, 2020, the Company was engaged in collection proceedings with a customer in relation to an outstanding account receivable dating from 2015. During the three months ended June 30, 2020, Bunge recorded a $51 million bad debt reserve, within Selling, general and administrative expenses, as well as a $15 million legal provision, within Other income/expense – net, in its condensed consolidated statements of income in relation to the matter. Trade Receivables Securitization Program Bunge and certain of its subsidiaries participate in a trade receivables securitization program (the “Program”) with a financial institution, as administrative agent, and certain commercial paper conduit purchasers and committed purchasers that provides for funding of up to $800 million against receivables sold into the Program. However, Bunge may from time to time, with the consent of the administrative agent, request one or more of the existing committed purchasers or new committed purchasers to increase the total commitments in an amount not to exceed $200 million pursuant to an accordion provision. On May 17, 2021, Bunge and certain of its subsidiaries renewed and amended the Program. As a result, the Program terminates on May 17, 2031. However, each committed purchaser's commitment to purchase trade receivables under the Program will terminate on May 17, 2024, unless extended for an additional period in accordance with the terms of the receivables transfer agreement. (US$ in millions) June 30, December 31, Receivables sold that were derecognized from Bunge's condensed consolidated balance sheet $ 1,227 $ 969 Deferred purchase price included in Other current assets $ 427 $ 177 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. Six Months Ended (US$ in millions) 2021 2020 Gross receivables sold $ 6,915 $ 4,942 Proceeds received in cash related to transfer of receivables $ 6,423 $ 4,759 Cash collections from customers on receivables previously sold $ 6,545 $ 4,389 Discounts related to gross receivables sold included in Selling, general and administrative expense $ 4 $ 6 Non-cash activity for the Program in the reporting period is represented by the difference between gross receivables sold and cash collections from customers on receivables previously sold. |
INVENTORIES
INVENTORIES | 6 Months Ended |
Jun. 30, 2021 | |
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, palm oil, corn, and wheat carried at fair value because of their commodity characteristics, widely available markets, and international pricing mechanisms. The Company engages in trading and distribution, or merchandising activities, and part of RMI can be attributable to such activities and is not held for processing. All other inventories are carried at lower of cost or net realizable value. (US$ in millions) June 30, December 31, Agribusiness (1) $ 6,992 $ 6,019 Refined and Specialty Oils (2) 1,160 885 Milling (3) 308 268 Total $ 8,460 $ 7,172 (1) Includes RMI of $6,650 million and $5,735 million at June 30, 2021 and December 31, 2020, respectively. Assets held for sale includes RMI of $111 million and $365 million at June 30, 2021 and December 31, 2020, respectively (see Note 3 - Portfolio Rationalization Initiatives ). Of these amounts, $5,629 million and $4,369 million can be attributable to merchandising activities at June 30, 2021 and December 31, 2020, respectively. (2) Includes RMI of $254 million and $174 million at June 30, 2021 and December 31, 2020, respectively. (3) Includes RMI of $26 million and $52 million at June 30, 2021 and December 31, 2020, respectively. |
OTHER CURRENT ASSETS
OTHER CURRENT ASSETS | 6 Months Ended |
Jun. 30, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER CURRENT ASSETS | OTHER CURRENT ASSETS Other current assets consist of the following: (US$ in millions) June 30, December 31, Unrealized gains on derivative contracts, at fair value $ 2,843 $ 3,555 Prepaid commodity purchase contracts (1) 381 174 Secured advances to suppliers, net (2) 164 380 Recoverable taxes, net 336 385 Margin deposits 429 817 Marketable securities, at fair value, and other short-term investments 437 346 Deferred purchase price receivable (3) 427 177 Income taxes receivable 43 27 Prepaid expenses 390 231 Restricted cash 40 29 Other 191 147 Total $ 5,681 $ 6,268 (1) Prepaid commodity purchase contracts represent advance payments against contracts for future deliveries of specified quantities of agricultural commodities. (2) The Company provides cash advances to suppliers, primarily Brazilian farmers of soybeans, to finance a portion of the suppliers’ production costs. The Company does not bear any of the costs or operational risks associated with the related growing activities. The advances are largely collateralized by future crops and physical assets of the suppliers, carry a local market interest rate, and settle when the farmers' crops are harvested and sold. The secured advances to farmers are reported net of allowances of $4 million at June 30, 2021 and $2 million at December 31, 2020. Interest earned on secured advances to suppliers of $4 million and $6 million for the three months ended June 30, 2021 and 2020, respectively, and $13 million and $18 million for the six months ended June 30, 2021 and 2020, respectively, is included in Net sales in the condensed consolidated statements of income. (3) Deferred purchase price receivable represents additional credit support for the investment conduits in the Company’s trade receivables securitization program (see Note 5- Trade Accounts Receivable and Trade Receivable Securitization Program ). Marketable Securities and Other Short-Term Investments - The Company invests in foreign government securities, corporate debt securities, deposits, equity securities, and other securities. The following is a summary of amounts recorded in the Company's condensed consolidated balance sheets as marketable securities and other short-term investments. (US$ in millions) June 30, December 31, Foreign government securities $ 279 $ 207 Corporate debt securities 157 136 Other 1 3 Total $ 437 $ 346 As of June 30, 2021 and December 31, 2020 , $436 million and $343 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 their fair values. For the three months ended June 30, 2021 and 2020, unrealized gains of $16 million and $21 million, respectively, have been recorded and recognized in Other income (expense) - net for investments held at June 30, 2021 and 2020. For the six months ended June 30, 2021 and 2020, unrealized gains of $22 million and $12 million, respectively, have been recorded and recognized in Other income (expense) - net for investments held at June 30, 2021 and 2020. |
OTHER NON-CURRENT ASSETS
OTHER NON-CURRENT ASSETS | 6 Months Ended |
Jun. 30, 2021 | |
Other Assets, Noncurrent [Abstract] | |
OTHER NON-CURRENT ASSETS | OTHER NON-CURRENT ASSETS Other non-current assets consist of the following: (US$ in millions) June 30, December 31, Recoverable taxes, net (1) $ 55 $ 115 Judicial deposits (1) 85 72 Other long-term receivables, net 12 12 Income taxes receivable 142 150 Long-term investments (2) 174 136 Affiliate loans receivable 16 15 Long-term receivables from farmers in Brazil, net (1) 34 38 Unrealized gains on derivative contracts, at fair value 76 111 Other 91 97 Total $ 685 $ 746 (1) A significant portion of these non-current assets arise from the Company’s Brazilian operations and their realization could take several years. (2) As of June 30, 2021 and December 31, 2020, $13 million and $12 million, respectively, of long-term investments are recorded at fair value. Recoverable taxes, net - Recoverable taxes include value-added taxes paid upon the acquisition of property, plant and equipment, raw materials and taxable services and other transactional taxes which can be recovered in cash or as compensation against income taxes, or other taxes Bunge may owe, primarily in Brazil and Europe. Recoverable taxes are reported net of allow ances of $16 million and $17 million at June 30, 2021 and December 31, 2020, respectively. Judicial deposits - Judicial deposits are funds the Company has placed on deposit with the courts in Brazil. These funds are held in judicial escrow relating to certain legal proceedings pending resolution and bear interest at the Selic rate, which is the benchmark rate of the Brazilian central bank. Income taxes receivable - Income taxes receivable includes overpayments of current income taxes plus accrued interest. These income tax prepayments are expected to be primarily utilized for settlement of future income tax obligations. Income taxes receivable in Brazil bear interest at the Selic rate. Long-term investments - Long-term investments primarily comprises our noncontrolling equity investments in growth stage agribusiness and food companies held by Bunge Ventures. Affiliate loans receivable - Affiliate loans receivable are primarily interest-bearing receivables from unconsolidated affiliates with remaining maturities of greater than one year. Long-term receivables from farmers in Brazil, net - The Company provides financing to farmers in Brazil, primarily through secured advances against farmer commitments to deliver agricultural commodities (primarily soybeans) upon harvest of the then-current year’s crop, and through credit sales of fertilizer to farmers. Certain such long-term receivables from farmers are originally recorded in Other current assets as prepaid commodity contracts or secured advances to suppliers (see Note 7- Other Current Assets ) or Other non-current assets according to their maturity. Advances initially recorded in Other current assets are reclassified to Other non-current assets if collection issues arise and amounts become past due with resolution of such matters expected to take more than one year. The average recorded investment in long-term receivables from farmers in Brazil for the six months ended June 30, 2021 and the year ended December 31, 2020 w as $133 million a nd $132 million, respectively. The table below summarizes the Company’s recorded investment in long-term receivables from farmers in Brazil and the related allowance amounts. June 30, 2021 December 31, 2020 (US$ in millions) Recorded Allowance Recorded Allowance For which an allowance has been provided: Legal collection process (1) $ 62 $ 54 $ 73 $ 60 Renegotiated amounts 7 7 6 3 For which no allowance has been provided: Legal collection process (1) 23 — 22 — Renegotiated amounts (2) 2 — — — Other long-term receivables (3) 1 — — — Total $ 95 $ 61 $ 101 $ 63 (1) All amounts in legal process are considered past due upon initiation of legal action. (2) These renegotiated amounts are current on repayment terms. (3) New advances expected to be realized through farmer commitments to deliver agricultural commodities in crop periods greater than twelve months from the balance sheet date. Such advances are reclassified from Non-current assets to Current assets in later periods depending on the expected date of their realization. The table below summarizes the activity in the allowance for doubtful accounts related to long-term receivables from farmers in Brazil. Six Months Ended (US$ in millions) 2021 2020 Beginning balance $ 63 $ 96 Bad debt provisions 3 4 Recoveries (3) (9) Write-offs (4) — Transfers — — Foreign exchange translation 2 (27) Ending balance $ 61 $ 64 |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income tax expense is provided on an interim basis based on management’s estimate of the annual effective income tax rate and includes the tax effects of certain discrete items, such as changes in tax laws or tax rates or other unusual or non-recurring tax adjustments in the interim period in which they occur. In addition, results from jurisdictions projecting a loss for the year where no tax benefit can be recognized are treated discretely in the interim period in which they occur. The effective tax rate is highly dependent on the geographic distribution of the Company’s worldwide earnings or losses and tax regulations in each jurisdiction. Management regularly monitors the assumptions used in estimating its annual effective tax rate and adjusts estimates accordingly, including the realizability of deferred tax assets. Volatility in earnings within a taxing jurisdiction could result in a determination that additional valuation allowance adjustments may be warranted. Income tax expense related to continuing operations for the three and six months ended June 30, 2021 was $50 million and $242 million, respectively. Income tax expense related to continuing operations for the three and six months ended June 30, 2020 was $168 million and $113 million, respectively. The effective tax rate for the three and six months ended June 30, 2021 was lower than the U.S. statutory rate of 21% primarily due to favorable earnings mix and incentives in South and North America. The effective tax rate for the three and six months ended June 30, 2020, was higher than the U.S. statutory rate of 21% primarily due to an unfavorable earnings mix. As a global enterprise, the Company files income tax returns that are subject to periodic examination and challenge by federal, state, and foreign tax authorities. In many jurisdictions, income tax examinations, including settlement negotiations or litigation, may take several years to finalize. The Company is currently under examination or litigation in various locations throughout the world. While it is difficult to predict the outcome or timing of resolution of any particular matter, management believes that the condensed consolidated financial statements reflect the largest amount of tax benefit that is more likely than not to be realized. |
OTHER CURRENT LIABILITIES
OTHER CURRENT LIABILITIES | 6 Months Ended |
Jun. 30, 2021 | |
Other Liabilities Disclosure [Abstract] | |
OTHER CURRENT LIABILITIES | OTHER CURRENT LIABILITIES Other current liabilities consist of the following: (US$ in millions) June 30, December 31, Unrealized losses on derivative contracts, at fair value $ 3,208 $ 3,226 Accrued liabilities 568 652 Advances on sales (2) 258 406 Payables for purchase of shares (1) — 149 Other 474 407 Total $ 4,508 $ 4,840 (1) On December 9, 2020, Bunge filed an unconditional tender offer to acquire all of the shares Bunge did not own in Z.T. Kruszwica S.A. Accordingly, the Company recognized a liability for the fair value of the publicly listed shares not owned at December 31, 2020. The tender offer process was completed in the first quarter of 2021. (2) Changes to Advances on sales accounts are as follows: Six Months Ended (US$ in millions) 2021 2020 Beginning balance $ 406 $ 411 Additions 2,357 1,153 Transfers to Net sales (2,297) (1,199) Reversals due to cancelled sales orders (209) (36) Foreign currency translation 1 (6) Other — (1) Ending balance $ 258 $ 322 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2021 | |
Financial Instruments And Fair Value Measurements [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 - Trade Structured Finance Program for trade structured finance program, Note 8- Other Non-Current Assets for long-term receivables from farmers in Brazil, net and other long-term investments, and Note 13- Debt for long-term debt. Bunge's financial instruments also include derivative instruments and marketable securities, which are stated at fair value. 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 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. In many cases, a valuation technique used to measure fair value includes inputs from multiple levels of the fair value hierarchy. The lowest level of input that is a significant component of the fair value measurement determines the placement of the entire fair value measurement in the hierarchy. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the classification of fair value assets and liabilities within the fair value hierarchy levels. For a further definition of fair value and the associated fair value levels, refer to Note 15 - Fair Value Measurements, included in the Company's 2020 Annual Report on Form 10-K. The following table sets forth, by level, the Company’s assets and liabilities that were accounted for at fair value on a recurring basis. Fair Value Measurements at Reporting Date June 30, 2021 December 31, 2020 (US$ in millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Readily marketable inventories (1) (Note 6) $ — $ 6,548 $ 492 $ 7,040 $ — $ 6,118 $ 208 $ 6,326 Trade accounts receivable (2) — — — — — 5 — 5 Unrealized gain on derivative contracts (3) : Interest rate — 71 — 71 — 100 — 100 Foreign exchange — 667 — 667 3 531 — 534 Commodities 161 1,723 82 1,966 191 2,783 63 3,037 Freight 271 — 6 277 14 — — 14 Energy 102 1 — 103 44 — — 44 Credit — 4 — 4 — — — — Other (4) 13 488 — 501 15 352 — 367 Total assets $ 547 $ 9,502 $ 580 $ 10,629 $ 267 $ 9,889 $ 271 $ 10,427 Liabilities: Trade accounts payable (5) $ — $ 610 $ 92 $ 702 $ — $ 285 $ 9 $ 294 Unrealized loss on derivative contracts (6) : Interest rate — 28 — 28 — 15 — 15 Foreign exchange — 638 — 638 — 701 — 701 Commodities 159 1,998 107 2,264 232 2,187 71 2,490 Freight 255 — 1 256 16 — — 16 Energy 52 — — 52 12 — — 12 Total liabilities $ 466 $ 3,274 $ 200 $ 3,940 $ 260 $ 3,188 $ 80 $ 3,528 (1) A t June 30, 2021 and December 31, 2020, RMI totaling $111 million and $365 million, respectively, were included in Assets held for sale. (2) These receivables are hybrid financial instruments for which Bunge has elected the fair value option as they are derived from purchases and sales of agricultural commodity products in the normal course of business. (3) Unrealized gains on derivative contracts are generally included in Other current assets. There were $76 million and $111 million included in Other non-current assets at June 30, 2021 and December 31, 2020, respectively. There were $169 million and $63 million included in Assets held for sale at June 30, 2021 and December 31, 2020, respectively. (4) Other includes the fair values of marketable securities and investments in Other current assets and Other non-current assets. (5) These payables are hybrid financial instruments for which the Company has elected the fair value option as they are derived from purchases and sales of agricultural commodity products in the normal course of business. At June 30, 2021 and December 31, 2020, there were $5 million and $40 million, respectively, included in Liabilities held for sale. (6) Unrealized losses on derivative contracts are generally included in Other current liabilities. There were $24 million and $7 million included in Other non-current liabilities at June 30, 2021 and December 31, 2020, respectively. There were $6 million and $2 million included in Liabilit ies held for sale at June 30, 2021 and December 31, 2020, 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 condensed consolidated balance sheets and condensed consolidated statements of income could differ. Additionally, if market conditions change subsequent to the reporting date, amounts reported in future periods as unrealized gains and losses on derivative contracts and RMI at fair value in the condensed consolidated balance sheets and condensed consolidated statements of income could differ. Derivatives —The majority of exchange traded futures and options contracts and exchange cleared contracts are valued based on unadjusted quoted prices in active markets and are classified within Level 1. The majority of the Company’s exchange traded agricultural commodity futures are cash-settled on a daily basis and, therefore, are not included in these tables. The Company's forward commodity purchase and sale contracts are classified as derivatives along with other OTC derivative instruments relating primarily to freight, energy, foreign exchange and interest rates, and are classified within Level 2 or Level 3 as described below. The Company estimates fair values based on exchange quoted prices, adjusted as appropriate for differences in local markets. These differences are generally valued using inputs from broker or dealer quotations, or market transactions in either the listed or OTC markets. In such cases, these derivative contracts are classified within Level 2. OTC derivative contracts include swaps, options, and structured transactions that are generally fair valued using quantitative models that require the use of multiple market inputs including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets which are not highly active, other observable inputs relevant to the asset or liability, and market inputs corroborated by correlation or other means. These valuation models include inputs such as interest rates, prices, and indices to generate continuous yield or pricing curves and volatility factors. Where observable inputs are available for substantially the full term of the asset or liability, the instrument is categorized in Level 2. Certain OTC derivatives trade in less active markets with less availability of pricing information and certain structured transactions can require internally developed model inputs that might not be observable in or corroborated by the market. Level 3 Measurements The following relates to Level 3 measurements. An instrument may transfer into or out of Level 3 due to inputs becoming either observable or unobservable. Level 3 Readily marketable inventories and other —The significant unobservable inputs resulting in Level 3 classification for RMI, physically settled forward purchase and sale contracts, and trade accounts payable, relate to certain management estimations regarding costs of transportation and other local market or location-related adjustments, primarily freight related adjustments in the interior of Brazil and the lack of market corroborated information in Canada. In both situations, the Company uses proprietary information such as purchase and sale contracts and contracted prices to value freight, premiums and discounts in its contracts. Movements in the prices of these unobservable inputs alone would not have a material effect on the Company's financial statements as these contracts do not typically exceed one future crop cycle. Level 3 Derivatives —Level 3 derivative instruments utilize both market observable and unobservable inputs within the fair value measurements. These inputs include commodity prices, price volatility, interest rates, volumes and locations. The tables below present reconciliations for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three and six months ended June 30, 2021 and 2020. These instruments were valued using pricing models that management believes reflect the assumptions that would be used by a marketplace participant. Three Months Ended June 30, 2021 (US$ in millions) Readily Derivatives, Trade Total Balance, April 1, 2021 $ 629 $ (68) $ (213) $ 348 Total gains and losses (realized/unrealized) included in cost of goods sold (1) 15 132 5 152 Purchases 534 — (39) 495 Sales (1,094) — — (1,094) Issuances — — — — Settlements — (83) — (83) Transfers into Level 3 454 (1) (30) 423 Transfers out of Level 3 (46) — 185 139 Balance, June 30, 2021 $ 492 $ (20) $ (92) $ 380 (1) Readily marketable inventories, derivatives, net and trade accounts payable, include gains/(losses) of $139 million, $91 million and $5 million, respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at June 30, 2021. Three Months Ended June 30, 2020 (US$ in millions) Readily Derivatives, Trade Total Balance, April 1, 2020 $ 619 $ (16) $ (261) $ 342 Total gains and losses (realized/unrealized) included in cost of goods sold (1) 150 (10) 9 149 Purchases 668 — (42) 626 Sales (970) — — (970) Settlements — 18 107 125 Transfers into Level 3 277 7 (13) 271 Transfers out of Level 3 (148) (12) 67 (93) Balance, June 30, 2020 $ 596 $ (13) $ (133) $ 450 (1) Readily marketable inventories, derivatives, net and trade accounts payable, includes gains/(losses) of $96 million, $(9) million and $8 million, respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at June 30, 2020. Six Months Ended June 30, 2021 (US$ in millions) Readily Derivatives, Trade Total Balance, January 1, 2021 $ 208 $ (8) $ (9) $ 191 Total gains and losses (realized/unrealized) included in cost of goods sold (1) 269 20 8 297 Purchases 1,074 3 (224) 853 Sales (1,856) — — (1,856) Issuances — (2) — (2) Settlements — (49) — (49) Transfers into Level 3 900 (26) (189) 685 Transfers out of Level 3 (103) 42 322 261 Balance, June 30, 2021 $ 492 $ (20) $ (92) $ 380 (1) Readily marketable inventories, derivatives, net and trade accounts payable, include gains/(losses) of $263 million, $(29) million and $8 million, respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at June 30, 2021. Six Months Ended June 30, 2020 (US$ in millions) Readily Derivatives, Trade Total Balance, January 1, 2020 $ 231 $ (24) $ (31) $ 176 Total gains and losses (realized/unrealized) included in cost of goods sold (1) 314 3 14 331 Purchases 1,346 2 (278) 1,070 Sales (1,596) — — (1,596) Issuances — (2) — (2) Settlements — — 168 168 Transfers into Level 3 547 10 (73) 484 Transfers out of Level 3 (246) (2) 67 (181) Balance, June 30, 2020 $ 596 $ (13) $ (133) $ 450 (1) Readily marketable inventories, derivatives, net and trade accounts payable, includes gains/(losses) of $169 million, $5 million and $13 million, respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at June 30, 2020. |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 6 Months Ended |
Jun. 30, 2021 | |
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, 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 held in Accumulated other comprehensive income (loss) until the transaction affects earnings, at which time the change in value of the currency forw ard is reclassified to Net sales, Cost of goods sold, or Selling, general and administrative expenses. These hedges mature at various times through December 2021. Of the amount currently in Accumulated other comprehensive income (loss), $1 million of deferred l osses is expected to be reclassified to earnings in the next twelve months. Net investment hedges - The Company hedges the currency risk of certain of its foreign subsidiaries with currency forwards and intercompany loans for which the currency risk is remeasured through Accumulated other comprehensive income (loss). For currency forwards, the forward method is used. The change in the value of the forward is classified in Accumulated other comprehensive income (loss) until the transaction affects earnings. The table below provides information about the balance sheet values of hedged items and the notional amount of derivatives used in hedging strategies. The notional amount of the derivative is the number of units of the underlying (for example, the notional principal amount of the debt in an interest rate swap). The notional amount is used to compute interest or other payment streams to be made under the contract and is a measure of the Company’s level of activity. The Company discloses derivative notional amounts on a gross basis. (US$ in millions) June 30, 2021 December 31, 2020 Unit of Hedging instrument type: Fair value hedges of interest rate risk Carrying value of hedged debt $ 3,778 $ 2,465 $ Notional Cumulative adjustment to long-term debt from application of hedge accounting $ 44 $ 92 $ Notional Interest rate swap $ 3,751 $ 2,382 $ Notional Fair value hedges of currency risk Carrying value of hedged debt $ 278 $ 297 $ Notional Cross currency swap $ 278 $ 297 $ Notional Cash flow hedges of currency risk Foreign currency forward $ 12 $ 182 $ Notional Foreign currency option $ 78 $ 90 $ Notional Net investment hedges Foreign currency forward $ 1,548 $ 1,875 $ 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 sale 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 June 30, 2021 and December 31, 2020. For those contracts traded bilaterally through the OTC markets (e.g., forwards, forward rate agreements ("FRA"), swaps, and variable interests rate obligations), 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. June 30, December 31, 2021 2020 Unit of (US$ in millions) Long (Short) Long (Short) Interest rate Swaps $ 1,516 $ (2,125) $ 1,989 $ (1,418) $ Notional FRAs $ — $ — $ 1,216 $ (805) $ Notional Currency Forwards $ 13,494 $ (14,232) $ 11,272 $ (13,171) $ Notional Swaps $ 175 $ (287) $ 422 $ (413) $ Notional Futures $ — $ (1) $ — $ (55) $ Notional Options $ 95 $ (43) $ 100 $ (142) Delta Agricultural commodities Forwards 32,293,348 (34,325,522) 38,332,313 (39,743,593) Metric Tons Swaps — (5,896,702) — (1,700,972) Metric Tons Futures — (4,580,160) — (11,422,365) Metric Tons Options 567,577 (246,259) — (280,240) Metric Tons Ocean freight FFA 16,960 (24,891) 3,055 — Hire Days FFA options 511 (41) — — Hire Days Natural gas Swaps 649,289 — 1,040,284 — MMBtus Futures 2,417,500 — 7,210,000 — MMBtus Energy - other Swaps 591,194 (307,207) 413,542 — Metric Tons Electricity Swaps 670,973 (256,949) — — Mwh Other Swaps and futures $ — $ (180) $ 30 $ (30) $ Notional The Effect of Derivative Instruments and Hedge Accounting on the Condensed Consolidated Statements of Income The tables below summarize the net effect of derivative instruments and hedge accounting on the condensed consolidated statements of income for the three and six months ended June 30, 2021 and 2020. Gain (Loss) Recognized in Three Months Ended June 30, (US$ in millions) 2021 2020 Income statement classification Type of derivative Net sales Hedge accounting Foreign currency $ 1 $ (5) Cost of goods sold Economic hedges Foreign currency $ 470 $ (198) Commodities (1,139) 265 Other (1) 131 39 Total Cost of goods sold $ (538) $ 106 Interest expense Hedge accounting Interest rate $ 7 $ 3 Total Interest expense $ 7 $ 3 Foreign exchange gains (losses) Hedge accounting Foreign currency $ 1 $ 3 Economic hedges Foreign currency (154) (53) Total Foreign exchange gains (losses) $ (153) $ (50) 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 $ (4) $ (3) Gains and losses on derivatives used as cash flow hedges of foreign currency risk included in other comprehensive income (loss) during the period (2) $ 7 $ (3) Gains and losses on derivatives used as net investment hedges included in other comprehensive income (loss) during the period $ (96) $ 7 Foreign currency gains and losses on intercompany loans used as net investment hedges included in other comprehensive income (loss) during the period $ — $ (19) Amounts released from accumulated other comprehensive income (loss) during the period Cash flow hedge of foreign currency risk $ (2) $ (3) (1) Other includes the results from freight, energy and other derivatives. (2) I ncludes $(1) million and $20 million Bunge share of other comprehensive income (loss) related to cash flow hedges associated with the Company's equity investment in BP Bunge Bioenergia for the three months ended June 30, 2021 and 2020, respectively. Gain (Loss) Recognized in Six Months Ended June 30, (US$ in millions) 2021 2020 Income statement classification Type of derivative Net sales Hedge accounting Foreign currency $ 1 $ (5) Cost of goods sold Economic hedges Foreign currency $ 185 $ (1,115) Commodities (1,736) 986 Other (1) 259 (42) Total Cost of goods sold $ (1,292) $ (171) Interest expense Hedge accounting Interest rate $ 13 $ 2 Economic hedges Interest rate 1 — Total Interest expense $ 14 $ 2 Foreign exchange gains (losses) Hedge accounting Foreign currency $ (17) $ 10 Economic hedges Foreign currency (67) (237) Total Foreign exchange gains (losses) $ (84) $ (227) Other income (expense) Economic hedges Interest rate $ 1 $ — Total Other income/(expense) $ 1 $ — Other comprehensive income (loss) Gains and losses on derivatives used as fair value hedges of foreign currency risk included in other comprehensive income (loss) during the period $ (2) $ — Gains and losses on derivatives used as cash flow hedges of foreign currency risk included in other comprehensive income (loss) during the period (2) $ 3 $ (17) Gains and losses on derivatives used as net investment hedges included in other comprehensive income (loss) during the period $ (58) $ 53 Foreign currency gains and losses on intercompany loans used as net investment hedges included in other comprehensive income (loss) during the period $ — $ 3 Amounts released from accumulated other comprehensive income (loss) during the period Cash flow hedge of foreign currency risk $ (3) $ 1 (1) Other includes the results fro m freight, energy and other derivatives. (2) Includes $(37) million and $10 million Bunge share of other comprehensive income (loss) related to cash flow hedges associated with the Company's equity investment in BP Bunge Bioenergia for the six months ended June 30, 2021 and 2020, respectively. |
DEBT
DEBT | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Bunge’s commercial paper program is supported by an identical amount of committed back-up bank credit lines (the “Liquidity Facility”) provide d by banks that are rated at least A-1 by Standard & Poor’s Financial Services and P-1 by Moody’s Investors Service. The cost of borrowing under the Liquidity Facility would typically be higher than the cost of issuing under Bunge’s commercial paper program. At June 30, 2021, there were no borrowings outstanding under the commercial paper program and no borrowings under the Liquidity Facility, and at December 31, 2020, $549 million of borrowings were outstanding under the commercial paper program and no borrowings were outstanding under the Liquidity Facility. The Liquidity Facility is Bunge's only revolving credit facility that requires lenders to maintain minimum credit ratings. On July 16, 2021, Bunge amended and extended the Liquidity Facility to July 16, 2026. On February 23, 2021, Bunge entered into an unsecured committed $375 million 364-day Revolving Credit Agreement (the “$375 Million Credit Agreement”) with a lender. The $375 Million Credit Agreement bears interest at LIBOR plus an applicable margin, as defined in the $375 Million Credit Agreement, with a maturity date of February 22, 2022. There were no borrowings outstanding under this facility as of June 30, 2021. On July 16, 2021, the Company terminated the $375 Million Credit Agreement. Bunge had no borrowings outstanding at June 30, 2021 under Bunge's unsecured $1,250 million 364-day Revolving Credit Agreement (the “$1.25 Billion Credit Agreement”) with a group of lenders, comprising a $1,000 million tranche (“Tranche A”) and a $250 million tranche (“Tranche B”), that was scheduled to mature on October 21, 2021. On July 16, 2021, Bunge entered into an unsecured $1,000 million 364-day Revolving Credit Agreement (the "$1 Billion Credit Agreement"), with a group of lenders, maturing on July 15, 2022. Bunge may, from time to time, request one or more of the existing or new lenders to increase the total participations under the $1 Billion Credit Agreement by an aggregate amount up to $250 million pursuant to an accordion provision. Borrowings will bear interest at LIBOR plus an applicable margin, as defined in the $1 Billion Credit Agreement. The $1 Billion Credit Agreement replaces the existing $1.25 Billion Credit Agreement. Bunge had no borrowings outstanding at June 30, 2021 under Bunge's unsecured committed $1,100 million five-year syndicated revolving credit agreement (the "$1.1 Billion Credit Agreement") with certain lenders party thereto, that was scheduled to mature on December 14, 2023. On July 16, 2021, Bunge entered into an unsecured committed $1.35 Billion 5-year Revolving Credit Agreement (the "$1.35 Billion Credit Agreement") with a group of lenders, maturing July 16, 2026. Bunge may, from time to time, request one or more of the existing or new lenders to increase the total commitments under the $1.35 Billion Credit Agreement by an aggregate amount up to $200 million pursuant to an accordion provision. Borrowings will bear interest at LIBOR plus an applicable margin, as defined in the $1.35 Billion Credit Agreement. The $1.35 Billion Credit Agreement replaces the existing $1.1 Billion Credit Agreement. Bunge had $175 million borrowings outstanding at June 30, 2021 under Bunge's unsecured $865 million revolving credit facility, maturing September 6, 2022 (the "$865 Million 2022 Facility"). Borrowings under the $865 Million 2022 Facility bear interest at LIBOR plus a margin, which will vary from 1.00% to 1.75% per annum, based on the credit ratings of Bunge's senior long-term unsecured debt. Amounts under the $865 Million 2022 Facility that remain undrawn are subject to a commitment fee payable quarterly based on the average undrawn portion of the $865 Million 2022 Facility at rates ranging from 0.125% to 0.275%, based on the credit ratings of Bunge's senior long-term unsecured debt. At June 30, 2021, Bunge had total committed credit facilities of $5,940 million with a number of financial institutions, of which $5,765 million was unused and available. At December 31, 2020, Bunge had total committed credit facilities of $5,565 million with a number of financial institutions, of which $4,072 million was unused and available. In addition to committed facilities, from time to time, Bunge Limited and/or its financing subsidiaries enter into uncommitted bilateral short-term credit lines as necessary based on its financing requirements. At June 30, 2021 and December 31, 2020 there were $200 million and $550 million borrowings, respectively, 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 $1,076 million a nd $785 million in short-term borrowings outstanding under local bank lines of credit at June 30, 2021 and December 31, 2020 , respectively, to support working capital requirements. On February 25, 2021, Bunge entered into an unsecured syndicated $250 million 364-day term loan (the “$250 Million Term Loan”) with a group of lenders. The $250 Million Term Loan bears interest at LIBOR plus an applicable margin, as defined in the $250 Million Term Loan. The $250 Million Term Loan matures on February 24, 2022 and was fully drawn as of June 30, 2021. On February 23, 2021, Bunge entered into an unsecured $125 million 364-day term loan (the “$125 Million Term Loan”) with a lender. The $125 Million Term Loan bears interest at LIBOR plus an applicable margin, as defined in the $125 Million Term Loan. The $125 Million Term Loan matures on February 22, 2022, and was fully drawn as of June 30, 2021. On July 16, 2021, Bunge prepaid the outstanding balance of the $125 Million Term Loan. The fair value of Bunge’s long-term debt is based on interest rates currently available on comparable maturities to companies with credit standing similar to that of Bunge. The carrying amounts and fair value of long-term debt are as follows: June 30, 2021 December 31, 2020 (US$ in millions) Carrying Fair Value Carrying Fair Value Long-term debt, including current portion $ 5,367 $ 5,570 $ 4,460 $ 4,646 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Bunge purchases agricultural commodity products from certain of its unconsolidated investees and other related parties. Such related party purchases comprised approximate ly 7% or less of tot al Cost of goods sold for the three and six months ended June 30, 2021 and 2020. Bunge also sells agricultural commodity products to certain of its unconsolidated investees and other related parties. Such related party sales comprised approxima tely 2% or less of total Net sales for the three and six months ended June 30, 2021 and 2020. In addition, Bunge receives services from and provides services to its unconsolidated investees, including tolling, port handling, administrative support, and other services. For the three and six months ended June 30, 2021 and 2020, such services were not material to the Company's consolidated results. At June 30, 2021 and December 31, 2020, receivables related to the above related party transactions, comprised approximate ly 2% or less of total T rade accounts receivable. At June 30, 2021 and December 31, 2020, payables related to the above related party transactions comprised approximately 5% or less of total Trade accounts payable. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Bunge is party to claims and lawsuits, primarily non-income tax and labor claims in South America, arising in the normal course of business. Bunge is also involved from time to time in various contract, antitrust, environmental litigation and remediation and other litigation, claims, government investigations and legal proceedings. The ability to predict the ultimate outcome of such matters involves judgments, estimates and inherent uncertainties. Bunge records liabilities related to legal matters when the exposure item becomes probable and can be reasonably estimated. Bunge management does not expect these matters to have a material adverse effect on Bunge’s financial condition, results of operations or liquidity. However, these matters are subject to inherent uncertainties and there exists the remote possibility that a liability arising from these matters could have a material adverse impact in the period the uncertainties are resolved should the liability substantially exceed the amount of provisions included in the condensed consolidated balance sheets. Information regarding the claims appears in Bunge’s Report on Form 10-K for the year ended December 31, 2020. Included in Other non-current liabilities at June 30, 2021 and December 31, 2020 are the following amounts related to these matters: (US$ in millions) June 30, December 31, Non-income tax claims $ 22 $ 20 Labor claims 67 54 Civil and other claims 101 96 Total $ 190 $ 170 Brazil Indirect Taxes Non-income tax claims - These tax claims relate to ongoing claims against Bunge’s Brazilian subsidiaries, primarily value-added tax claims (ICMS, ISS, IPI and PIS/COFINS). Bunge expects to pay Brazilian reais (R$) 8 million (approximately $2 million) in 2021 to settle a portion of its outstanding liabilities in amnesty programs in certain Brazilian states regarding certain tax credits. On October 8, 2020, the Company was notified that the Brazilian Federal Court of Appeal ruled in favor of the Company in a case against Brazilian tax authorities regarding the right to exclude the value of ICMS from the PIS/COFINS tax basis. The ruling allowed the Company the right to recover amounts unduly paid from August 2009 through December 2020. As a result of the favorable decision, Bunge recorded a pre-tax benefit of R$260 million (approximately $51 million) primarily in the fourth quarter of 2020 for the recovery of taxes, recognized in Net sales, consistent with how the expense was originally incurred. Realization of these benefits will occur through income tax credits applied primarily to the Company's second quarter of 2021 Brazil federal tax liability. As of June 30, 2021, the Brazilian federal and state authorities have concluded examinations of the ICMS and PIS COFINS tax returns and have issued outstanding claims. The Company continues to evaluate the merits of each of these claims and will recognize them when loss is considered probable. The outstanding claims comprise the following: (US$ in millions) Years Examined June 30, 2021 December 31, 2020 ICMS 1990 to Present $ 211 $ 191 PIS/COFINS 2004 through 2016 $ 292 $ 208 Labor claims — The labor claims are principally 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. This proceeding was put on hold due to a court injunction obtained by one of the defendants in a case related to the application of the statute of limitations. Additionally, in the second quarter of 2018, Bunge received a notification from CADE that it had extended the scope of an existing administrative proceeding relating to alleged anticompetitive practices in the Rio Grande port in Brazil to include two of Bunge's Brazilian subsidiaries and certain former employees of those subsidiaries. During the quarter, Bunge received notification that the cases against one of the Brazilian subsidiaries and the former employees have been dismissed, however the other Bunge Brazilian subsidiary was ordered to pay a fine of R$27 thousand (approximately $5 thousand). Bunge is disputing the CADE fine in the judicial courts. Guarantees — Bunge has issued or was a party to the following guarantees at June 30, 2021: (US$ in millions) Maximum Unconsolidated affiliates guarantee (1) $ 271 Residual value guarantee (2) 258 Other guarantees 6 Total $ 535 (1) Bunge has issued financial and performance 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 and have maturity dates through 2034. There are no recourse provisions or collateral that would enable Bunge to recover any amounts paid under these guarantees. C ertain Bunge subsidiaries have guaranteed the obligations of certain of their affiliates and in connection therewith have secured their guarantee obligations through a pledge of certain of their affiliate's shares plus loans receivable from the affiliates to the financial institutions in the event that the guaranteed obligations are enforced. Based on amounts drawn under such debt facilities at June 30, 2021, Bunge's potential liability was $227 million, and has recorded a $10 million obligation related to these guarantees, inclusive of expected lifetime credit losses, which are determined based on historical financial information and are not expected to be material. (2) Bunge has issued guarantees to certain financial institutions that are party to certain operating lease arrangements for railcars, barges, and buildings. These guarantees provide for a minimum residual v alue to be received by the lessor at the conclusion of the lease term. These leases expire at various dates from 2021 through 2026. At June 30, 2021, 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 guarantee to the Director of the Illinois Department of Agriculture as Trustee for Bunge North America, Inc. (“BNA”), an indirect wholly-owned subsidiary, which guarantees all amounts due and owing by BNA to grain producers and/or depositors in the State of Illinois who have delivered commodities to BNA’s Illinois facilities. In addition, Bunge Limited has provided full and unconditional parent level guarantees of the outstanding indebtedness under certain credit facilities entered into, and senior notes issued, by its 100% owned subsidiaries. At June 30, 2021, Bunge’s condensed consolidated balance sheet includes debt with a carrying amo unt of $6,482 million related to these guarantees. This debt includes the senior notes issued by two of Bunge’s 100% owned finance subsidiaries, Bung e Limited Finance Corp. and Bunge Finance Europe, B.V. There are largely no restrictions on the ability of Bunge Limited Finance Corp. and Bunge Finance Europe B.V. or any other Bunge subsidiary to transfer funds to Bunge Limited. |
OTHER NON-CURRENT LIABILITIES
OTHER NON-CURRENT LIABILITIES | 6 Months Ended |
Jun. 30, 2021 | |
Other Liabilities Disclosure [Abstract] | |
OTHER NON-CURRENT LIABILITIES | OTHER NON-CURRENT LIABILITIES (US$ in millions) June 30, December 31, Labor, legal and other provisions $ 192 $ 175 Pension and post-retirement obligations 275 276 Uncertain income tax positions (1) 54 50 Unrealized losses on derivative contracts, at fair value (2) 25 7 Other 118 149 Total $ 664 $ 657 (1) See Note 9- Income Taxes. (2) See Note 11- Fair Value Measurements. |
REDEEMABLE NONCONTROLLING INTER
REDEEMABLE NONCONTROLLING INTEREST | 6 Months Ended |
Jun. 30, 2021 | |
Redeemable Noncontrolling Interest, Equity, Carrying Amount [Abstract] | |
REDEEMABLE NONCONTROLLING INTEREST | REDEEMABLE NONCONTROLLING INTEREST In connection with the acquisition of a 70% ownership interest in IOI Loders Croklaan ("Loders"), the Company has entered into a put/call arrangement with the Loders minority shareholder and may be required or elect to purchase the additional 30% ownership interest in Loders within a specified time frame. The Company classifies these redeemable equity securities outside of permanent stockholders’ equity as the equity securities are redeemable at the option of the holder. The carrying amount of redeemable noncontrolling interests is the greater of: (i) the initial carrying amount, increased or decreased for the noncontrolling interests’ share of net income or loss, equity capital contributions and distributions or (ii) the redemption value. Any resulting increases in the redemption amount, in excess of the initial carrying amount, increased or decreased for the noncontrolling interests’ share of net income or loss, equity capital contributions and distributions, are affected via a charge 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. On July 16, 2021, the Board of Directors of Loders declared a dividend of Euros 200 million (approximately $238 million) to its shareholders. The minority shareholder's 30% share of the dividend is Euros 60 million (approximately $71 million). The dividend was paid on July 22, 2021. |
EQUITY
EQUITY | 6 Months Ended |
Jun. 30, 2021 | |
Stockholders' Equity Note [Abstract] | |
EQUITY | EQUITY Accumulated other comprehensive income (loss) attributable to Bunge — The following table summarizes the balances of related after-tax components of Accumulated other comprehensive income (loss) attributable to Bunge: (US$ in millions) Foreign Exchange Deferred Pension and Other Accumulated Balance, April 1, 2021 $ (6,092) $ (218) $ (174) $ (6,484) Other comprehensive income (loss) before reclassifications 321 (92) (2) 227 Amount reclassified from accumulated other comprehensive income (loss) — (1) — (1) Balance, June 30, 2021 $ (5,771) $ (311) $ (176) $ (6,258) (US$ in millions) Foreign Exchange Deferred Pension and Other Accumulated Balance, April 1, 2020 $ (6,098) $ (123) $ (190) $ (6,411) Other comprehensive income (loss) before reclassifications (111) 3 — (108) Amount reclassified from accumulated other comprehensive income (loss) — 3 1 4 Balance, June 30, 2020 $ (6,209) $ (117) $ (189) $ (6,515) (US$ in millions) Foreign Exchange Deferred Pension and Other Accumulated Balance, January 1, 2021 $ (5,857) $ (215) $ (174) $ (6,246) Other comprehensive income (loss) before reclassifications 86 (94) (2) (10) Amount reclassified from accumulated other comprehensive income (loss) — (2) — (2) Balance, June 30, 2021 $ (5,771) $ (311) $ (176) $ (6,258) (US$ in millions) Foreign Exchange Deferred Pension and Other Accumulated Balance, January 1, 2020 $ (5,263) $ (170) $ (191) $ (5,624) Other comprehensive income (loss) before reclassifications (946) 54 — (892) Amount reclassified from accumulated other comprehensive income (loss) — (1) 2 1 Balance, June 30, 2020 $ (6,209) $ (117) $ (189) $ (6,515) |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE The following table sets forth the computation of basic and diluted earnings per common share. Three Months Ended Six Months Ended (US$ in millions, except for share data) 2021 2020 2021 2020 Net income (loss) $ 369 $ 522 $ 1,286 $ 329 Net (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests (7) (6) (92) 3 Net income (loss) attributable to Bunge 362 516 1,194 332 Convertible preference share dividends (9) (9) (17) (17) Adjustment of redeemable noncontrolling interest (1) — 5 — (10) Net income (loss) available to Bunge common shareholders - Basic $ 353 $ 512 1,177 305 Add back convertible preference share dividends 9 9 17 17 Net income (loss) available to Bunge common shareholders - Diluted $ 362 $ 521 $ 1,194 $ 322 Weighted-average number of common shares outstanding: Basic 141,536,775 141,565,298 140,942,885 141,734,488 Effect of dilutive shares: —stock options and awards (2) 2,386,791 67,683 2,397,053 201,365 —convertible preference shares 8,756,388 8,570,096 8,756,388 8,570,096 Diluted 152,679,954 150,203,077 152,096,326 150,505,949 Earnings per common share: Net income (loss) attributable to Bunge common shareholders—basic $ 2.50 $ 3.62 $ 8.35 $ 2.15 Net income (loss) attributable to Bunge common shareholders—diluted $ 2.37 $ 3.47 $ 7.85 $ 2.14 (1) The redemption value adjustment of the Company's redeemable noncontrolling interest is added to or deducted from income (loss) as discussed further in Note 17- Redeemable Noncontrolling Interest. (2) The weighted-average common shares outstanding-diluted excludes approximately zero and 7 million stock options and contingently issuable restricted stock units, which were not dilutive and not included in the computation of earnings per share for the three months ended June 30, 2021 and 2020, respectively. The weighted-average common shares outstanding-diluted excludes approximately 2 million and 6 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 six months ended June 30, 2021 and 2020, respectively. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION Effective January 1, 2021, the Company changed its reporting segments to align with its new value chain operational structure. See Note 1 - Basis of Presentation, Principles of Consolidation, And Significant Accounting Policies. The Company's operations are now organized, managed and classified into four reportable segments - Agribusiness, Refined and Specialty Oils, Milling, and Sugar and Bioenergy, based upon their similar economic characteristics, products and services offered, production processes, types and classes of customer, and distribution methods. The Company’s remaining operations are not reportable segments, as defined by the applicable accounting standard, and are classified as Corporate and Other. The Agribusiness reportable segment is characterized by both inputs and outputs being agricultural commodities and thus high volume and low margin. The Refined and Specialty Oils reportable segment involves the processing, production and marketing of products derived from vegetable oils. The Milling reportable segment involves the processing, production and marketing of products derived primarily from wheat and corn. The Sugar and Bioenergy reportable segment primarily comprises the net earnings in the Company’s 50% interest in BP Bunge Bioenergia, a joint venture with BP p.l.c. (“BP”). Corporate and Other includes salaries and overhead for corporate functions that are not allocated to the Company’s individual reporting segments because the operating performance of each reporting segment is evaluated by the Company's chief operating decision maker exclusive of these items, as well as certain other activities including Bunge Ventures, the Company's captive insurance, and securitization activities. Transfers between segments are generally valued at market. Segment revenues generated from these transfers are shown in the following table as “Inter-segment revenues.” Three Months Ended June 30, 2021 (US$ in millions) Agribusiness Refined and Specialty Oils Milling Sugar and Corporate and Other Eliminations Total Net sales to external customers $ 11,654 $ 3,198 $ 471 $ 68 $ — $ — $ 15,391 Inter–segment revenues 2,045 125 15 — — (2,185) — Cost of goods sold (11,244) (3,003) (414) (67) 2 — (14,726) Gross profit 410 195 57 1 2 — 665 Selling, general and administrative expenses (114) (90) (25) — (68) — (297) Foreign exchange gains (losses) 36 1 2 — (4) — 35 EBIT attributable to noncontrolling interests (1) (3) (5) — — — — (8) Other income (expense) - net 24 1 — — 10 — 35 Income (loss) from affiliates 11 — — 18 — — 29 Total Segment EBIT (2) 364 102 34 19 (60) 0 459 Depreciation, depletion and amortization 50 38 11 — 7 — 106 Total assets 18,541 4,096 1,370 171 907 — 25,085 Three Months Ended June 30, 2020 (US$ in millions) Agribusiness Refined and Specialty Oils Milling Sugar and Corporate and Other Eliminations Total Net sales to external customers $ 6,925 $ 2,129 $ 382 $ 26 $ — $ — $ 9,462 Inter–segment revenues 1,262 50 3 — — (1,315) — Cost of goods sold (6,018) (1,983) (329) (26) (1) — (8,357) Gross profit 907 146 53 — (1) — 1,105 Selling, general and administrative expenses (109) (89) (28) — (120) — (346) Foreign exchange gains (losses) 31 (4) — — — — 27 EBIT attributable to noncontrolling interests (1) (8) — — — — — (8) Other income (expense) - net 31 (2) — — (2) — 27 Income (loss) from affiliates 21 — — (88) — — (67) Total Segment EBIT (2) 873 51 25 (88) (123) 0 738 Depreciation, depletion and amortization 50 37 11 — 6 — 104 Total assets 13,356 3,350 1,180 154 519 — 18,559 Six Months Ended June 30, 2021 (US$ in millions) Agribusiness Refined and Specialty Oils Milling Sugar and Corporate and Other Eliminations Total Net sales to external customers $ 21,444 $ 5,924 $ 862 $ 122 $ — $ — $ 28,352 Inter–segment revenues $ 3,511 $ 227 $ 108 $ — $ — $ (3,846) $ — Cost of goods sold (20,149) (5,494) (771) (120) (6) — (26,540) Gross profit 1,295 430 91 2 (6) — 1,812 Selling, general and administrative expenses (194) (176) (48) — (150) — (568) Foreign exchange gains (losses) 29 2 — — (6) — 25 EBIT attributable to noncontrolling interests (1) (11) (83) (1) — — — (95) Other income (expense) - net 46 237 — — 15 — 298 Income (loss) from affiliates 35 — — 37 1 — 73 Total Segment EBIT (2) 1,200 410 42 39 (146) — 1,545 Depreciation, depletion and amortization 102 75 21 — 14 — 212 Total assets 18,541 4,096 1,370 171 907 — 25,085 Six Months Ended June 30, 2020 (US$ in millions) Agribusiness Edible Milling Sugar and Corporate and Other Eliminations Total Net sales to external customers $ 13,307 $ 4,455 $ 797 $ 76 $ — $ — $ 18,635 Inter–segment revenues 2,468 93 5 — — (2,566) — Cost of goods sold (12,403) (4,180) (697) (74) (2) — (17,356) Gross profit 904 275 100 2 (2) — 1,279 Selling, general and administrative expenses (218) (183) (54) (1) (185) — (641) Foreign exchange gains (losses) 19 3 (2) — 1 — 21 EBIT attributable to noncontrolling interests (1) (5) 5 — — — — — Other income (expense) - net 24 (2) (1) — (1) — 20 Income (loss) from affiliates 28 — — (139) — — (111) Total Segment EBIT (2) 752 98 43 (138) (187) — 568 Depreciation, depletion and amortization 107 74 23 — 13 — 217 Total assets 13,356 3,350 1,180 154 519 — 18,559 (1) Include noncontrolling interests' share of interest and tax with EBIT attributable to noncontrolling interests in order to reconcile to consolidated Noncontrolling interests. (2) Total segment earnings before interest and taxes (“EBIT”) is an operating performance measure used by Bunge’s management to evaluate segment operating activities. Bunge’s management believes Total Segment EBIT is a useful measure of operating profitability, since the measure allows for an evaluation of the performance of its segments without regard to its financing methods or capital structure. In addition, Total Segment EBIT is a financial measure that is widely used by analysts and investors in Bunge’s industry. However, Total Segment EBIT is a non-GAAP financial measure and is not intended to replace Net income (loss) attributable to Bunge, the most directly comparable U.S. GAAP financial measure. Further, Total Segment EBIT is not a measure of consolidated operating results under U.S. GAAP and should not be considered as an alternative to Net income (loss) or any other measure of consolidated operating results under U.S. GAAP. See the reconciliation of Total Segment EBIT to Net income (loss) attributable to Bunge in the table below. A reconciliation of Total Segment EBIT to Net income (loss) attributable to Bunge follows: Three Months Ended Six Months Ended (US$ in millions) 2021 2020 2021 2020 Net income (loss) attributable to Bunge $ 362 $ 516 $ 1,194 $ 332 Interest income (6) (6) (15) (13) Interest expense 54 62 127 139 Income tax expense (benefit) 50 168 242 113 Noncontrolling interests' share of interest and tax (1) (2) (3) (3) Total Segment EBIT from continuing operations $ 459 $ 738 $ 1,545 $ 568 The Company’s Net sales comprises sales from commodity contracts that are accounted for under ASC 815, Derivatives and Hedging (ASC 815) and sales of other products and services that are accounted for under ASC 606, Revenue from Contracts with Customers (ASC 606). The following tables provide a disaggregation of Net sales to external customers between sales from contracts with customers and sales from other arrangements: Three Months Ended June 30, 2021 (US$ in millions) Agribusiness Refined and Specialty Oils Milling Sugar and Total Sales from other arrangements $ 11,128 $ 243 $ 6 $ 67 $ 11,444 Sales from contracts with customers 526 2,955 465 1 3,947 Net sales to external customers $ 11,654 $ 3,198 $ 471 $ 68 $ 15,391 Three Months Ended June 30, 2020 (US$ in millions) Agribusiness Refined and Specialty Oils Milling Sugar and Total Sales from other arrangements $ 6,612 $ 497 $ 14 $ 24 $ 7,147 Sales from contracts with customers 313 1,632 368 2 2,315 Net sales to external customers $ 6,925 $ 2,129 $ 382 $ 26 $ 9,462 Six Months Ended June 30, 2021 (US$ in millions) Agribusiness Refined and Specialty Oils Milling Sugar and Total Sales from other arrangements $ 20,486 $ 429 $ — $ 120 $ 21,035 Sales from contracts with customers 958 5,495 862 2 7,317 Net sales to external customers $ 21,444 $ 5,924 $ 862 $ 122 $ 28,352 Six Months Ended June 30, 2020 (US$ in millions) Agribusiness Refined and Specialty Oils Milling Sugar and Total Sales from other arrangements $ 12,695 $ 989 $ 30 $ 70 $ 13,784 Sales from contracts with customers 612 3,466 767 6 4,851 Net sales to external customers $ 13,307 $ 4,455 $ 797 $ 76 $ 18,635 |
BASIS OF PRESENTATION, PRINCI_2
BASIS OF PRESENTATION, PRINCIPLES OF CONSOLIDATION, AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION, PRINCIPLES OF CONSOLIDATION, AND SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION, PRINCIPLES OF CONSOLIDATION, AND SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited condensed consolidated financial statements include the accounts of Bunge Limited (“Bunge” or the "Company"), its subsidiaries and variable interest entities (“VIEs”) in which Bunge is considered to be the primary beneficiary, and as a result, include the assets, liabilities, revenues and expenses of all entities over which Bunge has a controlling financial interest. The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X under the Securities Exchange Act of 1934, as amended (“Exchange Act”). Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to Securities and Exchange Commission (“SEC”) rules. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation have been included. The condensed consolidated balance sheet at December 31, 2020 has been derived from Bunge’s audited consolidated financial statements at that date. Operating results for the six months ended June 30, 2021 are not necessarily indicative of the results to be expected for the year ending December 31, 2021. The financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2020, forming part of Bunge’s 2020 Annual Report on Form 10-K filed with the SEC on February 19, 2021. On January 6, 2021, Bunge entered into a series of agreements to acquire a minority interest and certain intellectual property, licensing, and distribution rights in Australian Plant Proteins, a variable interest entity, for $35 million. The Company's exposure to loss related to this unconsolidated investment is limited to the book value of the investment. For additional information on variable interest entities for which Bunge has determined it is not the primary beneficiary, along with the Company's maximum exposure to loss related to these unconsolidated investments, refer to Note 11 - Investments in Affiliates, included in the Company's 2020 Annual Report on Form 10-K. Effective January 1, 2021, the Company changed its segment reporting to align with its new value chain operational structure, as further described in Note 20- Segment Information . Corresponding prior period amounts have been restated to conform to current period classification. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents, and Restricted Cash Restricted cash is included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the condensed consolidated statement of cash flows. |
New Accounting Pronouncements and Recently Adopted Accounting Pronouncements | New Accounting Pronouncements In August 2020, the Financial Accounting Standards Board ("FASB") issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40), which simplifies the accounting for convertible instruments and contracts in an entity’s own equity. The guidance also addresses how convertible instruments are accounted for in the diluted earnings per share calculation and requires enhanced disclosures about the terms of convertible instruments and contracts in an entity’s own equity. Either a modified retrospective method of transition or a fully retrospective method of transition is permissible for the adoption of this standard. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted no earlier than the fiscal year beginning after December 15, 2020. The Company does not expect this standard to have a material impact on its condensed consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848)- Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burden related to the expected market transition from the London Interbank Offered Rate ("LIBOR") and other interbank offered rates to alternative reference rates. The guidance is effective upon issuance and is to be applied prospectively from any date beginning March 12, 2020 through December 31, 2022. The Company continues to evaluate the impacts of this standard on its condensed consolidated financial statements. Recently Adopted Accounting Pronouncements 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 Company's adoption of this guidance, which was effective January 1, 2021, did not have a material impact on Bunge's condensed consolidated financial statements. |
Trade Accounts Receivable | Bunge establishes an allowance for lifetime expected credit losses utilizing an aging schedule for each pool of trade accounts receivable. The risk characteristics for each individual receivable were homogenous across the pool of trade accounts receivable and the determination of pools was sufficiently granular to address any differences in risk characteristics. Any receivables that did not share similar risk characteristics were separated into different pools for further analysis. Pools are determined based on risk characteristics such as the type of customer and geography. A default rate is derived using a provision matrix with data based on Bunge's historical receivables information. The default rate is then applied to the pool to determine the allowance for expected credit losses. Given the short term nature of the Company's trade accounts receivable, the default rate is only adjusted if significant changes in the credit profile of the portfolio are identified (e.g., poor crop years, credit issues at the country level, systematic risk), resulting in historic loss rates that are not representative of forecasted losses. Specifically, in establishing appropriate default rates as of June 30, 2021, the Company took into consideration expected impacts on its customers and other debtors in view of the COVID-19 pandemic, as well as other factors, which did not result in a material impact on the financial statements. Bunge records and reports accrued interest receivable within the same line item as the related receivable. The allowance for expected credit losses is estimated on the amortized cost basis of the trade accounts receivable, including accrued interest receivable. Bunge recognizes credit loss expense when establishing an allowance for accrued interest receivable. |
BASIS OF PRESENTATION, PRINCI_3
BASIS OF PRESENTATION, PRINCIPLES OF CONSOLIDATION, AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of restricted cash | The following table provides a reconciliation of cash and cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows. (US$ in millions) June 30, 2021 June 30, 2020 Cash and cash equivalents $ 464 $ 277 Restricted cash included in other current assets 40 2 Total $ 504 $ 279 |
Schedule of cash and cash equivalents | The following table provides a reconciliation of cash and cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows. (US$ in millions) June 30, 2021 June 30, 2020 Cash and cash equivalents $ 464 $ 277 Restricted cash included in other current assets 40 2 Total $ 504 $ 279 |
PORTFOLIO RATIONALIZATION INI_2
PORTFOLIO RATIONALIZATION INITIATIVES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets held for sale and Liabilities held for sale | The following table presents the disposal group's major classes of assets and liabilities included in Assets held for sale and Liabilities held for sale, respectively, on the condensed consolidated balance sheets at June 30, 2021: (US$ in millions) June 30, Inventories $ 111 Other current assets 169 Property, plant and equipment, net 128 Operating lease assets 6 Goodwill 6 Assets held for sale $ 420 Trade accounts payable $ 43 Current operating lease obligations 1 Other current liabilities 6 Non-current operating lease obligations 5 Liabilities held for sale $ 55 |
TRADE ACCOUNTS RECEIVABLE AND_2
TRADE ACCOUNTS RECEIVABLE AND TRADE RECEIVABLES SECURITIZATION PROGRAM (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Transfers and Servicing [Abstract] | |
Changes to the Allowance for Lifetime Expected Credit Losses Related to Accounts Receivable | Changes to the allowance for lifetime expected credit losses related to trade accounts receivable are as follows: Six Months Ended June 30, 2021 Rollforward of the Allowance for Credit Losses (US$ in millions) Short-term Long-term (1) Total Allowance as of January 1, 2021 $ 93 $ 51 $ 144 Current period provisions 17 — 17 Recoveries (13) (1) (14) Write-offs charged against the allowance (2) — (2) Foreign exchange translation differences (1) 1 — Allowance as of June 30, 2021 $ 94 $ 51 $ 145 (1) Long-term portion of the allowance for credit losses included in Other non-current assets. Six Months Ended June 30, 2020 Rollforward of the Allowance for Credit Losses (US$ in millions) Short-term Long-term (1) Total Allowance as of January 1, 2020 $ 108 $ 65 $ 173 Current period provisions (2) 42 — 42 Recoveries (21) (2) (23) Write-offs charged against the allowance (21) — (21) Foreign exchange translation differences (13) (12) (25) Allowance as of June 30, 2020 (2) $ 95 $ 51 $ 146 (1) Long-term portion of the allowance for credit losses included in Other non-current assets. |
Assets that Continue to be Recognized, Transferred Financial Assets and Other Financial Assets Managed Together | (US$ in millions) June 30, December 31, Receivables sold that were derecognized from Bunge's condensed consolidated balance sheet $ 1,227 $ 969 Deferred purchase price included in Other current assets $ 427 $ 177 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. Six Months Ended (US$ in millions) 2021 2020 Gross receivables sold $ 6,915 $ 4,942 Proceeds received in cash related to transfer of receivables $ 6,423 $ 4,759 Cash collections from customers on receivables previously sold $ 6,545 $ 4,389 Discounts related to gross receivables sold included in Selling, general and administrative expense $ 4 $ 6 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories by segment | Inventories by segment are presented below. Readily marketable inventories (“RMI”) are agricultural commodity inventories, such as soybeans, soybean meal, soybean oil, palm oil, corn, and wheat carried at fair value because of their commodity characteristics, widely available markets, and international pricing mechanisms. The Company engages in trading and distribution, or merchandising activities, and part of RMI can be attributable to such activities and is not held for processing. All other inventories are carried at lower of cost or net realizable value. (US$ in millions) June 30, December 31, Agribusiness (1) $ 6,992 $ 6,019 Refined and Specialty Oils (2) 1,160 885 Milling (3) 308 268 Total $ 8,460 $ 7,172 (1) Includes RMI of $6,650 million and $5,735 million at June 30, 2021 and December 31, 2020, respectively. Assets held for sale includes RMI of $111 million and $365 million at June 30, 2021 and December 31, 2020, respectively (see Note 3 - Portfolio Rationalization Initiatives ). Of these amounts, $5,629 million and $4,369 million can be attributable to merchandising activities at June 30, 2021 and December 31, 2020, respectively. (2) Includes RMI of $254 million and $174 million at June 30, 2021 and December 31, 2020, respectively. (3) Includes RMI of $26 million and $52 million at June 30, 2021 and December 31, 2020, respectively. |
OTHER CURRENT ASSETS (Tables)
OTHER CURRENT ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of other current assets | Other current assets consist of the following: (US$ in millions) June 30, December 31, Unrealized gains on derivative contracts, at fair value $ 2,843 $ 3,555 Prepaid commodity purchase contracts (1) 381 174 Secured advances to suppliers, net (2) 164 380 Recoverable taxes, net 336 385 Margin deposits 429 817 Marketable securities, at fair value, and other short-term investments 437 346 Deferred purchase price receivable (3) 427 177 Income taxes receivable 43 27 Prepaid expenses 390 231 Restricted cash 40 29 Other 191 147 Total $ 5,681 $ 6,268 (1) Prepaid commodity purchase contracts represent advance payments against contracts for future deliveries of specified quantities of agricultural commodities. (2) The Company provides cash advances to suppliers, primarily Brazilian farmers of soybeans, to finance a portion of the suppliers’ production costs. The Company does not bear any of the costs or operational risks associated with the related growing activities. The advances are largely collateralized by future crops and physical assets of the suppliers, carry a local market interest rate, and settle when the farmers' crops are harvested and sold. The secured advances to farmers are reported net of allowances of $4 million at June 30, 2021 and $2 million at December 31, 2020. Interest earned on secured advances to suppliers of $4 million and $6 million for the three months ended June 30, 2021 and 2020, respectively, and $13 million and $18 million for the six months ended June 30, 2021 and 2020, respectively, is included in Net sales in the condensed consolidated statements of income. (3) Deferred purchase price receivable represents additional credit support for the investment conduits in the Company’s trade receivables securitization program (see Note 5- Trade Accounts Receivable and Trade Receivable Securitization Program ). |
Summary of marketable securities and other short-term investments | The following is a summary of amounts recorded in the Company's condensed consolidated balance sheets as marketable securities and other short-term investments. (US$ in millions) June 30, December 31, Foreign government securities $ 279 $ 207 Corporate debt securities 157 136 Other 1 3 Total $ 437 $ 346 |
OTHER NON-CURRENT ASSETS (Table
OTHER NON-CURRENT ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Other Assets, Noncurrent [Abstract] | |
Schedule of other non-current assets | Other non-current assets consist of the following: (US$ in millions) June 30, December 31, Recoverable taxes, net (1) $ 55 $ 115 Judicial deposits (1) 85 72 Other long-term receivables, net 12 12 Income taxes receivable 142 150 Long-term investments (2) 174 136 Affiliate loans receivable 16 15 Long-term receivables from farmers in Brazil, net (1) 34 38 Unrealized gains on derivative contracts, at fair value 76 111 Other 91 97 Total $ 685 $ 746 (1) A significant portion of these non-current assets arise from the Company’s Brazilian operations and their realization could take several years. (2) As of |
Summary of gross investment in long-term receivables and the related allowance amounts from Brazilian farmers | The table below summarizes the Company’s recorded investment in long-term receivables from farmers in Brazil and the related allowance amounts. June 30, 2021 December 31, 2020 (US$ in millions) Recorded Allowance Recorded Allowance For which an allowance has been provided: Legal collection process (1) $ 62 $ 54 $ 73 $ 60 Renegotiated amounts 7 7 6 3 For which no allowance has been provided: Legal collection process (1) 23 — 22 — Renegotiated amounts (2) 2 — — — Other long-term receivables (3) 1 — — — Total $ 95 $ 61 $ 101 $ 63 (1) All amounts in legal process are considered past due upon initiation of legal action. (2) These renegotiated amounts are current on repayment terms. (3) New advances expected to be realized through farmer commitments to deliver agricultural commodities in crop periods greater than twelve months from the balance sheet date. Such advances are reclassified from Non-current assets to Current assets in later periods depending on the expected date of their realization. |
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. Six Months Ended (US$ in millions) 2021 2020 Beginning balance $ 63 $ 96 Bad debt provisions 3 4 Recoveries (3) (9) Write-offs (4) — Transfers — — Foreign exchange translation 2 (27) Ending balance $ 61 $ 64 |
OTHER CURRENT LIABILITIES (Tabl
OTHER CURRENT LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of other current liabilities | Other current liabilities consist of the following: (US$ in millions) June 30, December 31, Unrealized losses on derivative contracts, at fair value $ 3,208 $ 3,226 Accrued liabilities 568 652 Advances on sales (2) 258 406 Payables for purchase of shares (1) — 149 Other 474 407 Total $ 4,508 $ 4,840 (1) On December 9, 2020, Bunge filed an unconditional tender offer to acquire all of the shares Bunge did not own in Z.T. Kruszwica S.A. Accordingly, the Company recognized a liability for the fair value of the publicly listed shares not owned at December 31, 2020. The tender offer process was completed in the first quarter of 2021. (2) Changes to Advances on sales accounts are as follows: Six Months Ended (US$ in millions) 2021 2020 Beginning balance $ 406 $ 411 Additions 2,357 1,153 Transfers to Net sales (2,297) (1,199) Reversals due to cancelled sales orders (209) (36) Foreign currency translation 1 (6) Other — (1) Ending balance $ 258 $ 322 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Financial Instruments And Fair Value Measurements [Abstract] | |
Hierarchy levels that may be used to measure fair value | 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 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. |
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 June 30, 2021 December 31, 2020 (US$ in millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Readily marketable inventories (1) (Note 6) $ — $ 6,548 $ 492 $ 7,040 $ — $ 6,118 $ 208 $ 6,326 Trade accounts receivable (2) — — — — — 5 — 5 Unrealized gain on derivative contracts (3) : Interest rate — 71 — 71 — 100 — 100 Foreign exchange — 667 — 667 3 531 — 534 Commodities 161 1,723 82 1,966 191 2,783 63 3,037 Freight 271 — 6 277 14 — — 14 Energy 102 1 — 103 44 — — 44 Credit — 4 — 4 — — — — Other (4) 13 488 — 501 15 352 — 367 Total assets $ 547 $ 9,502 $ 580 $ 10,629 $ 267 $ 9,889 $ 271 $ 10,427 Liabilities: Trade accounts payable (5) $ — $ 610 $ 92 $ 702 $ — $ 285 $ 9 $ 294 Unrealized loss on derivative contracts (6) : Interest rate — 28 — 28 — 15 — 15 Foreign exchange — 638 — 638 — 701 — 701 Commodities 159 1,998 107 2,264 232 2,187 71 2,490 Freight 255 — 1 256 16 — — 16 Energy 52 — — 52 12 — — 12 Total liabilities $ 466 $ 3,274 $ 200 $ 3,940 $ 260 $ 3,188 $ 80 $ 3,528 (1) A t June 30, 2021 and December 31, 2020, RMI totaling $111 million and $365 million, respectively, were included in Assets held for sale. (2) These receivables are hybrid financial instruments for which Bunge has elected the fair value option as they are derived from purchases and sales of agricultural commodity products in the normal course of business. (3) Unrealized gains on derivative contracts are generally included in Other current assets. There were $76 million and $111 million included in Other non-current assets at June 30, 2021 and December 31, 2020, respectively. There were $169 million and $63 million included in Assets held for sale at June 30, 2021 and December 31, 2020, respectively. (4) Other includes the fair values of marketable securities and investments in Other current assets and Other non-current assets. (5) These payables are hybrid financial instruments for which the Company has elected the fair value option as they are derived from purchases and sales of agricultural commodity products in the normal course of business. At June 30, 2021 and December 31, 2020, there were $5 million and $40 million, respectively, included in Liabilities held for sale. (6) Unrealized losses on derivative contracts are generally included in Other current liabilities. There were $24 million and $7 million included in Other non-current liabilities at June 30, 2021 and December 31, 2020, respectively. There were $6 million and $2 million included in Liabilit |
Reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | The tables below present reconciliations for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three and six months ended June 30, 2021 and 2020. These instruments were valued using pricing models that management believes reflect the assumptions that would be used by a marketplace participant. Three Months Ended June 30, 2021 (US$ in millions) Readily Derivatives, Trade Total Balance, April 1, 2021 $ 629 $ (68) $ (213) $ 348 Total gains and losses (realized/unrealized) included in cost of goods sold (1) 15 132 5 152 Purchases 534 — (39) 495 Sales (1,094) — — (1,094) Issuances — — — — Settlements — (83) — (83) Transfers into Level 3 454 (1) (30) 423 Transfers out of Level 3 (46) — 185 139 Balance, June 30, 2021 $ 492 $ (20) $ (92) $ 380 (1) Readily marketable inventories, derivatives, net and trade accounts payable, include gains/(losses) of $139 million, $91 million and $5 million, respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at June 30, 2021. Three Months Ended June 30, 2020 (US$ in millions) Readily Derivatives, Trade Total Balance, April 1, 2020 $ 619 $ (16) $ (261) $ 342 Total gains and losses (realized/unrealized) included in cost of goods sold (1) 150 (10) 9 149 Purchases 668 — (42) 626 Sales (970) — — (970) Settlements — 18 107 125 Transfers into Level 3 277 7 (13) 271 Transfers out of Level 3 (148) (12) 67 (93) Balance, June 30, 2020 $ 596 $ (13) $ (133) $ 450 (1) Readily marketable inventories, derivatives, net and trade accounts payable, includes gains/(losses) of $96 million, $(9) million and $8 million, respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at June 30, 2020. Six Months Ended June 30, 2021 (US$ in millions) Readily Derivatives, Trade Total Balance, January 1, 2021 $ 208 $ (8) $ (9) $ 191 Total gains and losses (realized/unrealized) included in cost of goods sold (1) 269 20 8 297 Purchases 1,074 3 (224) 853 Sales (1,856) — — (1,856) Issuances — (2) — (2) Settlements — (49) — (49) Transfers into Level 3 900 (26) (189) 685 Transfers out of Level 3 (103) 42 322 261 Balance, June 30, 2021 $ 492 $ (20) $ (92) $ 380 (1) Readily marketable inventories, derivatives, net and trade accounts payable, include gains/(losses) of $263 million, $(29) million and $8 million, respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at June 30, 2021. Six Months Ended June 30, 2020 (US$ in millions) Readily Derivatives, Trade Total Balance, January 1, 2020 $ 231 $ (24) $ (31) $ 176 Total gains and losses (realized/unrealized) included in cost of goods sold (1) 314 3 14 331 Purchases 1,346 2 (278) 1,070 Sales (1,596) — — (1,596) Issuances — (2) — (2) Settlements — — 168 168 Transfers into Level 3 547 10 (73) 484 Transfers out of Level 3 (246) (2) 67 (181) Balance, June 30, 2020 $ 596 $ (13) $ (133) $ 450 (1) Readily marketable inventories, derivatives, net and trade accounts payable, includes gains/(losses) of $169 million, $5 million and $13 million, respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at June 30, 2020. |
Reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | The tables below present reconciliations for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three and six months ended June 30, 2021 and 2020. These instruments were valued using pricing models that management believes reflect the assumptions that would be used by a marketplace participant. Three Months Ended June 30, 2021 (US$ in millions) Readily Derivatives, Trade Total Balance, April 1, 2021 $ 629 $ (68) $ (213) $ 348 Total gains and losses (realized/unrealized) included in cost of goods sold (1) 15 132 5 152 Purchases 534 — (39) 495 Sales (1,094) — — (1,094) Issuances — — — — Settlements — (83) — (83) Transfers into Level 3 454 (1) (30) 423 Transfers out of Level 3 (46) — 185 139 Balance, June 30, 2021 $ 492 $ (20) $ (92) $ 380 (1) Readily marketable inventories, derivatives, net and trade accounts payable, include gains/(losses) of $139 million, $91 million and $5 million, respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at June 30, 2021. Three Months Ended June 30, 2020 (US$ in millions) Readily Derivatives, Trade Total Balance, April 1, 2020 $ 619 $ (16) $ (261) $ 342 Total gains and losses (realized/unrealized) included in cost of goods sold (1) 150 (10) 9 149 Purchases 668 — (42) 626 Sales (970) — — (970) Settlements — 18 107 125 Transfers into Level 3 277 7 (13) 271 Transfers out of Level 3 (148) (12) 67 (93) Balance, June 30, 2020 $ 596 $ (13) $ (133) $ 450 (1) Readily marketable inventories, derivatives, net and trade accounts payable, includes gains/(losses) of $96 million, $(9) million and $8 million, respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at June 30, 2020. Six Months Ended June 30, 2021 (US$ in millions) Readily Derivatives, Trade Total Balance, January 1, 2021 $ 208 $ (8) $ (9) $ 191 Total gains and losses (realized/unrealized) included in cost of goods sold (1) 269 20 8 297 Purchases 1,074 3 (224) 853 Sales (1,856) — — (1,856) Issuances — (2) — (2) Settlements — (49) — (49) Transfers into Level 3 900 (26) (189) 685 Transfers out of Level 3 (103) 42 322 261 Balance, June 30, 2021 $ 492 $ (20) $ (92) $ 380 (1) Readily marketable inventories, derivatives, net and trade accounts payable, include gains/(losses) of $263 million, $(29) million and $8 million, respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at June 30, 2021. Six Months Ended June 30, 2020 (US$ in millions) Readily Derivatives, Trade Total Balance, January 1, 2020 $ 231 $ (24) $ (31) $ 176 Total gains and losses (realized/unrealized) included in cost of goods sold (1) 314 3 14 331 Purchases 1,346 2 (278) 1,070 Sales (1,596) — — (1,596) Issuances — (2) — (2) Settlements — — 168 168 Transfers into Level 3 547 10 (73) 484 Transfers out of Level 3 (246) (2) 67 (181) Balance, June 30, 2020 $ 596 $ (13) $ (133) $ 450 (1) Readily marketable inventories, derivatives, net and trade accounts payable, includes gains/(losses) of $169 million, $5 million and $13 million, respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at June 30, 2020. |
DERIVATIVE INSTRUMENTS AND HE_2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of outstanding derivative instruments | The notional amount is used to compute interest or other payment streams to be made under the contract and is a measure of the Company’s level of activity. The Company discloses derivative notional amounts on a gross basis. (US$ in millions) June 30, 2021 December 31, 2020 Unit of Hedging instrument type: Fair value hedges of interest rate risk Carrying value of hedged debt $ 3,778 $ 2,465 $ Notional Cumulative adjustment to long-term debt from application of hedge accounting $ 44 $ 92 $ Notional Interest rate swap $ 3,751 $ 2,382 $ Notional Fair value hedges of currency risk Carrying value of hedged debt $ 278 $ 297 $ Notional Cross currency swap $ 278 $ 297 $ Notional Cash flow hedges of currency risk Foreign currency forward $ 12 $ 182 $ Notional Foreign currency option $ 78 $ 90 $ Notional Net investment hedges Foreign currency forward $ 1,548 $ 1,875 $ Notional June 30, December 31, 2021 2020 Unit of (US$ in millions) Long (Short) Long (Short) Interest rate Swaps $ 1,516 $ (2,125) $ 1,989 $ (1,418) $ Notional FRAs $ — $ — $ 1,216 $ (805) $ Notional Currency Forwards $ 13,494 $ (14,232) $ 11,272 $ (13,171) $ Notional Swaps $ 175 $ (287) $ 422 $ (413) $ Notional Futures $ — $ (1) $ — $ (55) $ Notional Options $ 95 $ (43) $ 100 $ (142) Delta Agricultural commodities Forwards 32,293,348 (34,325,522) 38,332,313 (39,743,593) Metric Tons Swaps — (5,896,702) — (1,700,972) Metric Tons Futures — (4,580,160) — (11,422,365) Metric Tons Options 567,577 (246,259) — (280,240) Metric Tons Ocean freight FFA 16,960 (24,891) 3,055 — Hire Days FFA options 511 (41) — — Hire Days Natural gas Swaps 649,289 — 1,040,284 — MMBtus Futures 2,417,500 — 7,210,000 — MMBtus Energy - other Swaps 591,194 (307,207) 413,542 — Metric Tons Electricity Swaps 670,973 (256,949) — — Mwh Other Swaps and futures $ — $ (180) $ 30 $ (30) $ Notional |
Summary of effect of derivative instruments designated as fair value hedges and undesignated derivative instruments on condensed consolidated statements of income | The tables below summarize the net effect of derivative instruments and hedge accounting on the condensed consolidated statements of income for the three and six months ended June 30, 2021 and 2020. Gain (Loss) Recognized in Three Months Ended June 30, (US$ in millions) 2021 2020 Income statement classification Type of derivative Net sales Hedge accounting Foreign currency $ 1 $ (5) Cost of goods sold Economic hedges Foreign currency $ 470 $ (198) Commodities (1,139) 265 Other (1) 131 39 Total Cost of goods sold $ (538) $ 106 Interest expense Hedge accounting Interest rate $ 7 $ 3 Total Interest expense $ 7 $ 3 Foreign exchange gains (losses) Hedge accounting Foreign currency $ 1 $ 3 Economic hedges Foreign currency (154) (53) Total Foreign exchange gains (losses) $ (153) $ (50) 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 $ (4) $ (3) Gains and losses on derivatives used as cash flow hedges of foreign currency risk included in other comprehensive income (loss) during the period (2) $ 7 $ (3) Gains and losses on derivatives used as net investment hedges included in other comprehensive income (loss) during the period $ (96) $ 7 Foreign currency gains and losses on intercompany loans used as net investment hedges included in other comprehensive income (loss) during the period $ — $ (19) Amounts released from accumulated other comprehensive income (loss) during the period Cash flow hedge of foreign currency risk $ (2) $ (3) (1) Other includes the results from freight, energy and other derivatives. (2) I ncludes $(1) million and $20 million Bunge share of other comprehensive income (loss) related to cash flow hedges associated with the Company's equity investment in BP Bunge Bioenergia for the three months ended June 30, 2021 and 2020, respectively. Gain (Loss) Recognized in Six Months Ended June 30, (US$ in millions) 2021 2020 Income statement classification Type of derivative Net sales Hedge accounting Foreign currency $ 1 $ (5) Cost of goods sold Economic hedges Foreign currency $ 185 $ (1,115) Commodities (1,736) 986 Other (1) 259 (42) Total Cost of goods sold $ (1,292) $ (171) Interest expense Hedge accounting Interest rate $ 13 $ 2 Economic hedges Interest rate 1 — Total Interest expense $ 14 $ 2 Foreign exchange gains (losses) Hedge accounting Foreign currency $ (17) $ 10 Economic hedges Foreign currency (67) (237) Total Foreign exchange gains (losses) $ (84) $ (227) Other income (expense) Economic hedges Interest rate $ 1 $ — Total Other income/(expense) $ 1 $ — Other comprehensive income (loss) Gains and losses on derivatives used as fair value hedges of foreign currency risk included in other comprehensive income (loss) during the period $ (2) $ — Gains and losses on derivatives used as cash flow hedges of foreign currency risk included in other comprehensive income (loss) during the period (2) $ 3 $ (17) Gains and losses on derivatives used as net investment hedges included in other comprehensive income (loss) during the period $ (58) $ 53 Foreign currency gains and losses on intercompany loans used as net investment hedges included in other comprehensive income (loss) during the period $ — $ 3 Amounts released from accumulated other comprehensive income (loss) during the period Cash flow hedge of foreign currency risk $ (3) $ 1 (1) Other includes the results fro m freight, energy and other derivatives. (2) Includes $(37) million and $10 million Bunge share of other comprehensive income (loss) related to cash flow hedges associated with the Company's equity investment in BP Bunge Bioenergia for the six months ended June 30, 2021 and 2020, respectively. |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of carrying amounts and fair values of long-term debt | The carrying amounts and fair value of long-term debt are as follows: June 30, 2021 December 31, 2020 (US$ in millions) Carrying Fair Value Carrying Fair Value Long-term debt, including current portion $ 5,367 $ 5,570 $ 4,460 $ 4,646 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021 and December 31, 2020 are the following amounts related to these matters: (US$ in millions) June 30, December 31, Non-income tax claims $ 22 $ 20 Labor claims 67 54 Civil and other claims 101 96 Total $ 190 $ 170 |
Summary of tax examinations against Brazilian subsidiaries | As of June 30, 2021, the Brazilian federal and state authorities have concluded examinations of the ICMS and PIS COFINS tax returns and have issued outstanding claims. The Company continues to evaluate the merits of each of these claims and will recognize them when loss is considered probable. The outstanding claims comprise the following: (US$ in millions) Years Examined June 30, 2021 December 31, 2020 ICMS 1990 to Present $ 211 $ 191 PIS/COFINS 2004 through 2016 $ 292 $ 208 |
Maximum potential future payments related to guarantees | Bunge has issued or was a party to the following guarantees at June 30, 2021: (US$ in millions) Maximum Unconsolidated affiliates guarantee (1) $ 271 Residual value guarantee (2) 258 Other guarantees 6 Total $ 535 (1) Bunge has issued financial and performance 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 and have maturity dates through 2034. There are no recourse provisions or collateral that would enable Bunge to recover any amounts paid under these guarantees. C ertain Bunge subsidiaries have guaranteed the obligations of certain of their affiliates and in connection therewith have secured their guarantee obligations through a pledge of certain of their affiliate's shares plus loans receivable from the affiliates to the financial institutions in the event that the guaranteed obligations are enforced. Based on amounts drawn under such debt facilities at June 30, 2021, Bunge's potential liability was $227 million, and has recorded a $10 million obligation related to these guarantees, inclusive of expected lifetime credit losses, which are determined based on historical financial information and are not expected to be material. (2) Bunge has issued guarantees to certain financial institutions that are party to certain operating lease arrangements for railcars, barges, and buildings. These guarantees provide for a minimum residual v alue to be received by the lessor at the conclusion of the lease term. These leases expire at various dates from 2021 through 2026. At June 30, 2021, no obligation has been recorded related to these guarantees. Any obligation recorded would be recognized in Current operating lease obligations or Non-current operating lease obligations. |
OTHER NON-CURRENT LIABILITIES (
OTHER NON-CURRENT LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Summary of other non-current liabilities | (US$ in millions) June 30, December 31, Labor, legal and other provisions $ 192 $ 175 Pension and post-retirement obligations 275 276 Uncertain income tax positions (1) 54 50 Unrealized losses on derivative contracts, at fair value (2) 25 7 Other 118 149 Total $ 664 $ 657 (1) See Note 9- Income Taxes. (2) See Note 11- Fair Value Measurements. |
EQUITY (Tables)
EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Stockholders' Equity Note [Abstract] | |
Schedule of after-tax components of accumulated other comprehensive income (loss) attributable to Bunge | The following table summarizes the balances of related after-tax components of Accumulated other comprehensive income (loss) attributable to Bunge: (US$ in millions) Foreign Exchange Deferred Pension and Other Accumulated Balance, April 1, 2021 $ (6,092) $ (218) $ (174) $ (6,484) Other comprehensive income (loss) before reclassifications 321 (92) (2) 227 Amount reclassified from accumulated other comprehensive income (loss) — (1) — (1) Balance, June 30, 2021 $ (5,771) $ (311) $ (176) $ (6,258) (US$ in millions) Foreign Exchange Deferred Pension and Other Accumulated Balance, April 1, 2020 $ (6,098) $ (123) $ (190) $ (6,411) Other comprehensive income (loss) before reclassifications (111) 3 — (108) Amount reclassified from accumulated other comprehensive income (loss) — 3 1 4 Balance, June 30, 2020 $ (6,209) $ (117) $ (189) $ (6,515) (US$ in millions) Foreign Exchange Deferred Pension and Other Accumulated Balance, January 1, 2021 $ (5,857) $ (215) $ (174) $ (6,246) Other comprehensive income (loss) before reclassifications 86 (94) (2) (10) Amount reclassified from accumulated other comprehensive income (loss) — (2) — (2) Balance, June 30, 2021 $ (5,771) $ (311) $ (176) $ (6,258) (US$ in millions) Foreign Exchange Deferred Pension and Other Accumulated Balance, January 1, 2020 $ (5,263) $ (170) $ (191) $ (5,624) Other comprehensive income (loss) before reclassifications (946) 54 — (892) Amount reclassified from accumulated other comprehensive income (loss) — (1) 2 1 Balance, June 30, 2020 $ (6,209) $ (117) $ (189) $ (6,515) |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Computation of basic and diluted earnings per common share | The following table sets forth the computation of basic and diluted earnings per common share. Three Months Ended Six Months Ended (US$ in millions, except for share data) 2021 2020 2021 2020 Net income (loss) $ 369 $ 522 $ 1,286 $ 329 Net (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests (7) (6) (92) 3 Net income (loss) attributable to Bunge 362 516 1,194 332 Convertible preference share dividends (9) (9) (17) (17) Adjustment of redeemable noncontrolling interest (1) — 5 — (10) Net income (loss) available to Bunge common shareholders - Basic $ 353 $ 512 1,177 305 Add back convertible preference share dividends 9 9 17 17 Net income (loss) available to Bunge common shareholders - Diluted $ 362 $ 521 $ 1,194 $ 322 Weighted-average number of common shares outstanding: Basic 141,536,775 141,565,298 140,942,885 141,734,488 Effect of dilutive shares: —stock options and awards (2) 2,386,791 67,683 2,397,053 201,365 —convertible preference shares 8,756,388 8,570,096 8,756,388 8,570,096 Diluted 152,679,954 150,203,077 152,096,326 150,505,949 Earnings per common share: Net income (loss) attributable to Bunge common shareholders—basic $ 2.50 $ 3.62 $ 8.35 $ 2.15 Net income (loss) attributable to Bunge common shareholders—diluted $ 2.37 $ 3.47 $ 7.85 $ 2.14 (1) The redemption value adjustment of the Company's redeemable noncontrolling interest is added to or deducted from income (loss) as discussed further in Note 17- Redeemable Noncontrolling Interest. (2) The weighted-average common shares outstanding-diluted excludes approximately zero and 7 million stock options and contingently issuable restricted stock units, which were not dilutive and not included in the computation of earnings per share for the three months ended June 30, 2021 and 2020, respectively. The weighted-average common shares outstanding-diluted excludes approximately 2 million and 6 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 six months ended June 30, 2021 and 2020, respectively. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Operating Segment Information | Segment revenues generated from these transfers are shown in the following table as “Inter-segment revenues.” Three Months Ended June 30, 2021 (US$ in millions) Agribusiness Refined and Specialty Oils Milling Sugar and Corporate and Other Eliminations Total Net sales to external customers $ 11,654 $ 3,198 $ 471 $ 68 $ — $ — $ 15,391 Inter–segment revenues 2,045 125 15 — — (2,185) — Cost of goods sold (11,244) (3,003) (414) (67) 2 — (14,726) Gross profit 410 195 57 1 2 — 665 Selling, general and administrative expenses (114) (90) (25) — (68) — (297) Foreign exchange gains (losses) 36 1 2 — (4) — 35 EBIT attributable to noncontrolling interests (1) (3) (5) — — — — (8) Other income (expense) - net 24 1 — — 10 — 35 Income (loss) from affiliates 11 — — 18 — — 29 Total Segment EBIT (2) 364 102 34 19 (60) 0 459 Depreciation, depletion and amortization 50 38 11 — 7 — 106 Total assets 18,541 4,096 1,370 171 907 — 25,085 Three Months Ended June 30, 2020 (US$ in millions) Agribusiness Refined and Specialty Oils Milling Sugar and Corporate and Other Eliminations Total Net sales to external customers $ 6,925 $ 2,129 $ 382 $ 26 $ — $ — $ 9,462 Inter–segment revenues 1,262 50 3 — — (1,315) — Cost of goods sold (6,018) (1,983) (329) (26) (1) — (8,357) Gross profit 907 146 53 — (1) — 1,105 Selling, general and administrative expenses (109) (89) (28) — (120) — (346) Foreign exchange gains (losses) 31 (4) — — — — 27 EBIT attributable to noncontrolling interests (1) (8) — — — — — (8) Other income (expense) - net 31 (2) — — (2) — 27 Income (loss) from affiliates 21 — — (88) — — (67) Total Segment EBIT (2) 873 51 25 (88) (123) 0 738 Depreciation, depletion and amortization 50 37 11 — 6 — 104 Total assets 13,356 3,350 1,180 154 519 — 18,559 Six Months Ended June 30, 2021 (US$ in millions) Agribusiness Refined and Specialty Oils Milling Sugar and Corporate and Other Eliminations Total Net sales to external customers $ 21,444 $ 5,924 $ 862 $ 122 $ — $ — $ 28,352 Inter–segment revenues $ 3,511 $ 227 $ 108 $ — $ — $ (3,846) $ — Cost of goods sold (20,149) (5,494) (771) (120) (6) — (26,540) Gross profit 1,295 430 91 2 (6) — 1,812 Selling, general and administrative expenses (194) (176) (48) — (150) — (568) Foreign exchange gains (losses) 29 2 — — (6) — 25 EBIT attributable to noncontrolling interests (1) (11) (83) (1) — — — (95) Other income (expense) - net 46 237 — — 15 — 298 Income (loss) from affiliates 35 — — 37 1 — 73 Total Segment EBIT (2) 1,200 410 42 39 (146) — 1,545 Depreciation, depletion and amortization 102 75 21 — 14 — 212 Total assets 18,541 4,096 1,370 171 907 — 25,085 Six Months Ended June 30, 2020 (US$ in millions) Agribusiness Edible Milling Sugar and Corporate and Other Eliminations Total Net sales to external customers $ 13,307 $ 4,455 $ 797 $ 76 $ — $ — $ 18,635 Inter–segment revenues 2,468 93 5 — — (2,566) — Cost of goods sold (12,403) (4,180) (697) (74) (2) — (17,356) Gross profit 904 275 100 2 (2) — 1,279 Selling, general and administrative expenses (218) (183) (54) (1) (185) — (641) Foreign exchange gains (losses) 19 3 (2) — 1 — 21 EBIT attributable to noncontrolling interests (1) (5) 5 — — — — — Other income (expense) - net 24 (2) (1) — (1) — 20 Income (loss) from affiliates 28 — — (139) — — (111) Total Segment EBIT (2) 752 98 43 (138) (187) — 568 Depreciation, depletion and amortization 107 74 23 — 13 — 217 Total assets 13,356 3,350 1,180 154 519 — 18,559 (1) Include noncontrolling interests' share of interest and tax with EBIT attributable to noncontrolling interests in order to reconcile to consolidated Noncontrolling interests. (2) Total segment earnings before interest and taxes (“EBIT”) is an operating performance measure used by Bunge’s management to evaluate segment operating activities. Bunge’s management believes Total Segment EBIT is a useful measure of operating profitability, since the measure allows for an evaluation of the performance of its segments without regard to its financing methods or capital structure. In addition, Total Segment EBIT is a financial measure that is widely used by analysts and investors in Bunge’s industry. However, Total Segment EBIT is a non-GAAP financial measure and is not intended to replace Net income (loss) attributable to Bunge, the most directly comparable U.S. GAAP financial measure. Further, Total Segment EBIT is not a measure of consolidated operating results under U.S. GAAP and should not be considered as an alternative to Net income (loss) or any other measure of consolidated operating results under U.S. GAAP. See the reconciliation of Total Segment EBIT to Net income (loss) attributable to Bunge in the table below. |
Reconciliation of Total Segment EBIT to net income attributable to Bunge | A reconciliation of Total Segment EBIT to Net income (loss) attributable to Bunge follows: Three Months Ended Six Months Ended (US$ in millions) 2021 2020 2021 2020 Net income (loss) attributable to Bunge $ 362 $ 516 $ 1,194 $ 332 Interest income (6) (6) (15) (13) Interest expense 54 62 127 139 Income tax expense (benefit) 50 168 242 113 Noncontrolling interests' share of interest and tax (1) (2) (3) (3) Total Segment EBIT from continuing operations $ 459 $ 738 $ 1,545 $ 568 |
Net sales by product group to external customers | The following tables provide a disaggregation of Net sales to external customers between sales from contracts with customers and sales from other arrangements: Three Months Ended June 30, 2021 (US$ in millions) Agribusiness Refined and Specialty Oils Milling Sugar and Total Sales from other arrangements $ 11,128 $ 243 $ 6 $ 67 $ 11,444 Sales from contracts with customers 526 2,955 465 1 3,947 Net sales to external customers $ 11,654 $ 3,198 $ 471 $ 68 $ 15,391 Three Months Ended June 30, 2020 (US$ in millions) Agribusiness Refined and Specialty Oils Milling Sugar and Total Sales from other arrangements $ 6,612 $ 497 $ 14 $ 24 $ 7,147 Sales from contracts with customers 313 1,632 368 2 2,315 Net sales to external customers $ 6,925 $ 2,129 $ 382 $ 26 $ 9,462 Six Months Ended June 30, 2021 (US$ in millions) Agribusiness Refined and Specialty Oils Milling Sugar and Total Sales from other arrangements $ 20,486 $ 429 $ — $ 120 $ 21,035 Sales from contracts with customers 958 5,495 862 2 7,317 Net sales to external customers $ 21,444 $ 5,924 $ 862 $ 122 $ 28,352 Six Months Ended June 30, 2020 (US$ in millions) Agribusiness Refined and Specialty Oils Milling Sugar and Total Sales from other arrangements $ 12,695 $ 989 $ 30 $ 70 $ 13,784 Sales from contracts with customers 612 3,466 767 6 4,851 Net sales to external customers $ 13,307 $ 4,455 $ 797 $ 76 $ 18,635 |
BASIS OF PRESENTATION, PRINCI_4
BASIS OF PRESENTATION, PRINCIPLES OF CONSOLIDATION, AND SIGNIFICANT ACCOUNTING POLICIES - RECONCILIATION OF CASH, CASH EQUIVALENTS, AND RESTRICTED CASH (Details) - USD ($) $ in Millions | Jan. 06, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Payments to acquire business interest | $ 35 | ||||
Cash and cash equivalents | $ 464 | $ 277 | $ 352 | ||
Restricted cash included in other current assets | 40 | 2 | 29 | ||
Total | 504 | 279 | $ 381 | $ 322 | |
Cash paid for taxes, net of refunds | 121 | 175 | |||
Cash paid for interest expense | $ 79 | $ 133 |
PORTFOLIO RATIONALIZATION INI_3
PORTFOLIO RATIONALIZATION INITIATIVES - COMPOSITION OF ASSETS AND LIABILITIES HELD FOR SALE (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2021 | Jul. 09, 2021 | Dec. 31, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Assets held for sale | $ 424 | $ 672 | |
Liabilities held for sale | 55 | $ 438 | |
Held-for-sale | Interior Grain Elevators in United States | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Inventories | 111 | ||
Other current assets | 169 | ||
Property, plant and equipment, net | 128 | ||
Operating lease assets | 6 | ||
Goodwill | 6 | ||
Assets held for sale | 420 | ||
Trade accounts payable | 43 | ||
Current operating lease obligations | 1 | ||
Other current liabilities | 6 | ||
Non-current operating lease obligations | 5 | ||
Liabilities held for sale | 55 | ||
Held-for-sale | Interior Grain Elevators in United States | Subsequent event | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from sell of portfolio of interior grain elevators | $ 298 | ||
Held-for-sale | Other Insignificant Dispositions | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Assets held for sale | 4 | ||
Liabilities held for sale | 0 | ||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Rotterdam Oils Refinery | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gain on sale of assets | $ 219 |
TRADE STRUCTURED FINANCE PROG_2
TRADE STRUCTURED FINANCE PROGRAM (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Trade structured finance program | |||
Weighted-average interest rate of time deposits (as a percent) | 1.21% | 1.87% | |
Total net proceeds from issuances of LCs | $ 3,995 | $ 2,651 | |
London Interbank Offered Rate (LIBOR) | |||
Trade structured finance program | |||
Term to cover changes in variable rate | 365 days | ||
Time deposits and LC's presented net in the balance sheet | |||
Trade structured finance program | |||
Face value of time deposits and LCs | $ 6,043 | $ 4,715 |
TRADE ACCOUNTS RECEIVABLE AND_3
TRADE ACCOUNTS RECEIVABLE AND TRADE RECEIVABLES SECURITIZATION PROGRAM - ROLLFORWARD OF THE ALLOWANCE FOR CREDIT LOSSES (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Rollforward of the Allowance for Credit Losses | |||
Allowance, beginning balance | $ 144 | $ 173 | |
Current period provisions | 17 | 42 | |
Recoveries | (14) | (23) | |
Write-offs charged against the allowance | (2) | (21) | |
Foreign exchange translation differences | 0 | (25) | |
Allowance, ending balance | $ 146 | 145 | 146 |
Agribusiness | |||
Rollforward of the Allowance for Credit Losses | |||
Current period provisions | 51 | ||
Legal provision | 15 | ||
Short-term | |||
Rollforward of the Allowance for Credit Losses | |||
Allowance, beginning balance | 93 | 108 | |
Current period provisions | 17 | 42 | |
Recoveries | (13) | (21) | |
Write-offs charged against the allowance | (2) | (21) | |
Foreign exchange translation differences | (1) | (13) | |
Allowance, ending balance | 95 | 94 | 95 |
Long-term | |||
Rollforward of the Allowance for Credit Losses | |||
Allowance, beginning balance | 51 | 65 | |
Current period provisions | 0 | 0 | |
Recoveries | (1) | (2) | |
Write-offs charged against the allowance | 0 | 0 | |
Foreign exchange translation differences | 1 | (12) | |
Allowance, ending balance | $ 51 | $ 51 | $ 51 |
TRADE ACCOUNTS RECEIVABLE AND_4
TRADE ACCOUNTS RECEIVABLE AND TRADE RECEIVABLES SECURITIZATION PROGRAM - Narrative (Details) - Bunge Securitization B.V. $ in Millions | Jun. 30, 2021USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Maximum funding under trade receivables securitization program | $ 800 |
Accordion provision | $ 200 |
TRADE ACCOUNTS RECEIVABLE AND_5
TRADE ACCOUNTS RECEIVABLE AND TRADE RECEIVABLES SECURITIZATION PROGRAM (Details) - Bunge Securitization B.V. - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Accounts Receivable Securitization Facilities Disclosures | |||
Receivables sold that were derecognized from Bunge's condensed consolidated balance sheet | $ 1,227 | $ 969 | |
Deferred purchase price included in Other current assets | 427 | $ 177 | |
Gross receivables sold | 6,915 | $ 4,942 | |
Proceeds received in cash related to transfer of receivables | 6,423 | 4,759 | |
Cash collections from customers on receivables previously sold | 6,545 | 4,389 | |
Discounts related to gross receivables sold included in Selling, general and administrative expense | $ 4 | $ 6 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
INVENTORIES | ||
Inventories | $ 8,460 | $ 7,172 |
Agribusiness | ||
INVENTORIES | ||
Inventories | 6,992 | 6,019 |
Readily marketable inventories at fair value | 6,650 | 5,735 |
Agribusiness | Merchandising Activities | ||
INVENTORIES | ||
Readily marketable inventories at fair value | 5,629 | 4,369 |
Agribusiness | Held-for-sale | ||
INVENTORIES | ||
Readily marketable inventories at fair value | 111 | 365 |
Refined and Specialty Oils | ||
INVENTORIES | ||
Inventories | 1,160 | 885 |
Readily marketable inventories at fair value | 254 | 174 |
Milling | ||
INVENTORIES | ||
Inventories | 308 | 268 |
Readily marketable inventories at fair value | $ 26 | $ 52 |
OTHER CURRENT ASSETS - SUMMARY
OTHER CURRENT ASSETS - SUMMARY OF OTHER CURRENT ASSETS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Other Current Assets: | |||||
Unrealized gains on derivative contracts, at fair value | $ 2,843 | $ 2,843 | $ 3,555 | ||
Prepaid commodity purchase contracts | 381 | 381 | 174 | ||
Secured advances to suppliers, net | 164 | 164 | 380 | ||
Recoverable taxes, net | 336 | 336 | 385 | ||
Margin deposits | 429 | 429 | 817 | ||
Marketable securities, at fair value, and other short-term investments | 437 | 437 | 346 | ||
Deferred purchase price receivable | 427 | 427 | 177 | ||
Income taxes receivable | 43 | 43 | 27 | ||
Prepaid expenses | 390 | 390 | 231 | ||
Restricted cash | 40 | $ 2 | 40 | $ 2 | 29 |
Other | 191 | 191 | 147 | ||
Total | 5,681 | 5,681 | 6,268 | ||
Allowance on secured advance to farmers | 4 | 4 | $ 2 | ||
Interest earned on secured advances to suppliers | $ 4 | $ 6 | $ 13 | $ 18 |
OTHER CURRENT ASSETS - MARKETAB
OTHER CURRENT ASSETS - MARKETABLE SECURITIES AND OTHER SHORT-TERM INVESTMENTS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Net Investment Income [Line Items] | |||||
Marketable securities and other short-term investments | $ 437 | $ 437 | $ 346 | ||
Marketable securities at fair value | 436 | 436 | 343 | ||
Unrealized gains | 16 | $ 21 | 22 | $ 12 | |
Foreign government securities | |||||
Net Investment Income [Line Items] | |||||
Marketable securities and other short-term investments | 279 | 279 | 207 | ||
Corporate debt securities | |||||
Net Investment Income [Line Items] | |||||
Marketable securities and other short-term investments | 157 | 157 | 136 | ||
Other | |||||
Net Investment Income [Line Items] | |||||
Marketable securities and other short-term investments | $ 1 | $ 1 | $ 3 |
OTHER NON-CURRENT ASSETS - COMP
OTHER NON-CURRENT ASSETS - COMPOSITION (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Other Assets, Noncurrent [Abstract] | ||
Recoverable taxes, net | $ 55 | $ 115 |
Judicial deposits | 85 | 72 |
Other long-term receivables, net | 12 | 12 |
Income taxes receivable | 142 | 150 |
Long-term investments | 174 | 136 |
Affiliate loans receivable | 16 | 15 |
Long-term receivables from farmers in Brazil, net | 34 | 38 |
Unrealized gains on derivative contracts, at fair value | 76 | 111 |
Other | 91 | 97 |
Total | 685 | 746 |
Long-term investments recorded at fair value | 13 | 12 |
Allowance for recoverable taxes | $ 16 | $ 17 |
Minimum initial maturity of affiliate loans receivable | 1 year |
OTHER NON-CURRENT ASSETS - RECE
OTHER NON-CURRENT ASSETS - RECEIVABLES FROM FARMERS IN BRAZIL AND ALLOWANCE AMOUNTS (Details) - Long-term receivables - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Recorded Investment | ||||
Average recorded investment in long-term receivables | $ 133 | $ 132 | ||
Total | 95 | 101 | ||
Allowance | 61 | 63 | $ 64 | $ 96 |
Legal collection process | ||||
Recorded Investment | ||||
Recorded investment for which an allowance has been provided | 62 | 73 | ||
Recorded investment for which no allowance has been provided | 23 | 22 | ||
Allowance | 54 | 60 | ||
Renegotiated amounts | ||||
Recorded Investment | ||||
Recorded investment for which an allowance has been provided | 7 | 6 | ||
Recorded investment for which no allowance has been provided | 2 | 0 | ||
Allowance | 7 | 3 | ||
Other long-term receivables (3) | ||||
Recorded Investment | ||||
Recorded investment for which no allowance has been provided | $ 1 | $ 0 |
OTHER NON-CURRENT ASSETS - ALLO
OTHER NON-CURRENT ASSETS - ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) - Long-term receivables - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Financing Receivable, Allowance for Credit Loss | ||
Beginning balance | $ 63 | $ 96 |
Bad debt provisions | 3 | 4 |
Recoveries | (3) | (9) |
Write-offs | (4) | 0 |
Transfers | 0 | 0 |
Foreign exchange translation | 2 | (27) |
Ending balance | $ 61 | $ 64 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense (benefit) | $ 50 | $ 168 | $ 242 | $ 113 |
OTHER CURRENT LIABILITIES (Deta
OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |||
Unrealized losses on derivative contracts, at fair value | $ 3,208 | $ 3,226 | |
Accrued liabilities | 568 | 652 | |
Advances on sales | 258 | $ 322 | 406 |
Payables for purchase of shares | 0 | 149 | |
Other | 474 | 407 | |
Total | 4,508 | $ 4,840 | |
Contract With Customer, Liability [Roll Forward] | |||
Beginning balance | 406 | 411 | |
Additions | 2,357 | 1,153 | |
Transfers to Net sales | (2,297) | (1,199) | |
Reversals due to cancelled sales orders | (209) | (36) | |
Foreign currency translation | 1 | (6) | |
Other | 0 | (1) | |
Ending balance | $ 258 | $ 322 |
FAIR VALUE MEASUREMENTS - ASSET
FAIR VALUE MEASUREMENTS - ASSETS AND LIABILITIES AT FAIR VALUE (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Unrealized gain on derivative contracts (3): | ||
Unrealized gain | $ 2,843 | $ 3,555 |
Liabilities: | ||
Trade accounts payable | 702 | 294 |
Unrealized loss on derivative contracts (6): | ||
Unrealized loss | 3,208 | 3,226 |
Held-for-sale | ||
Unrealized gain on derivative contracts (3): | ||
Unrealized gain | 169 | 63 |
Liabilities: | ||
Trade accounts payable | 5 | 40 |
Unrealized loss on derivative contracts (6): | ||
Unrealized loss | 6 | 2 |
Other Noncurrent Assets | ||
Unrealized loss on derivative contracts (6): | ||
Unrealized gains (losses) on derivative contracts | 76 | 111 |
Other Noncurrent Liabilities | ||
Unrealized loss on derivative contracts (6): | ||
Unrealized gains (losses) on derivative contracts | (24) | (7) |
Assets and liabilities measured at fair value on a recurring basis | ||
Assets: | ||
Readily marketable inventories | 7,040 | 6,326 |
Trade accounts receivable | 0 | 5 |
Unrealized gain on derivative contracts (3): | ||
Total assets | 10,629 | 10,427 |
Liabilities: | ||
Trade accounts payable | 702 | 294 |
Unrealized loss on derivative contracts (6): | ||
Total liabilities | 3,940 | 3,528 |
Assets and liabilities measured at fair value on a recurring basis | Held-for-sale | ||
Assets: | ||
Readily marketable inventories | 111 | 365 |
Assets and liabilities measured at fair value on a recurring basis | Hedge accounting | Interest rate | ||
Unrealized gain on derivative contracts (3): | ||
Unrealized gain | 71 | 100 |
Unrealized loss on derivative contracts (6): | ||
Unrealized loss | 28 | 15 |
Assets and liabilities measured at fair value on a recurring basis | Hedge accounting | Foreign exchange | ||
Unrealized gain on derivative contracts (3): | ||
Unrealized gain | 667 | 534 |
Unrealized loss on derivative contracts (6): | ||
Unrealized loss | 638 | 701 |
Assets and liabilities measured at fair value on a recurring basis | Economic hedges | ||
Unrealized gain on derivative contracts (3): | ||
Other | 501 | 367 |
Assets and liabilities measured at fair value on a recurring basis | Economic hedges | Commodities | ||
Unrealized gain on derivative contracts (3): | ||
Unrealized gain | 1,966 | 3,037 |
Unrealized loss on derivative contracts (6): | ||
Unrealized loss | 2,264 | 2,490 |
Assets and liabilities measured at fair value on a recurring basis | Economic hedges | Freight | ||
Unrealized gain on derivative contracts (3): | ||
Unrealized gain | 277 | 14 |
Unrealized loss on derivative contracts (6): | ||
Unrealized loss | 256 | 16 |
Assets and liabilities measured at fair value on a recurring basis | Economic hedges | Energy | ||
Unrealized gain on derivative contracts (3): | ||
Unrealized gain | 103 | 44 |
Unrealized loss on derivative contracts (6): | ||
Unrealized loss | 52 | 12 |
Assets and liabilities measured at fair value on a recurring basis | Economic hedges | Credit | ||
Unrealized gain on derivative contracts (3): | ||
Unrealized gain | 4 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | ||
Assets: | ||
Readily marketable inventories | 0 | 0 |
Trade accounts receivable | 0 | 0 |
Unrealized gain on derivative contracts (3): | ||
Total assets | 547 | 267 |
Liabilities: | ||
Trade accounts payable | 0 | 0 |
Unrealized loss on derivative contracts (6): | ||
Total liabilities | 466 | 260 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Hedge accounting | Interest rate | ||
Unrealized gain on derivative contracts (3): | ||
Unrealized gain | 0 | 0 |
Unrealized loss on derivative contracts (6): | ||
Unrealized loss | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Hedge accounting | Foreign exchange | ||
Unrealized gain on derivative contracts (3): | ||
Unrealized gain | 0 | 3 |
Unrealized loss on derivative contracts (6): | ||
Unrealized loss | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Economic hedges | ||
Unrealized gain on derivative contracts (3): | ||
Other | 13 | 15 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Economic hedges | Commodities | ||
Unrealized gain on derivative contracts (3): | ||
Unrealized gain | 161 | 191 |
Unrealized loss on derivative contracts (6): | ||
Unrealized loss | 159 | 232 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Economic hedges | Freight | ||
Unrealized gain on derivative contracts (3): | ||
Unrealized gain | 271 | 14 |
Unrealized loss on derivative contracts (6): | ||
Unrealized loss | 255 | 16 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Economic hedges | Energy | ||
Unrealized gain on derivative contracts (3): | ||
Unrealized gain | 102 | 44 |
Unrealized loss on derivative contracts (6): | ||
Unrealized loss | 52 | 12 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Economic hedges | Credit | ||
Unrealized gain on derivative contracts (3): | ||
Unrealized gain | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | ||
Assets: | ||
Readily marketable inventories | 6,548 | 6,118 |
Trade accounts receivable | 0 | 5 |
Unrealized gain on derivative contracts (3): | ||
Total assets | 9,502 | 9,889 |
Liabilities: | ||
Trade accounts payable | 610 | 285 |
Unrealized loss on derivative contracts (6): | ||
Total liabilities | 3,274 | 3,188 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Hedge accounting | Interest rate | ||
Unrealized gain on derivative contracts (3): | ||
Unrealized gain | 71 | 100 |
Unrealized loss on derivative contracts (6): | ||
Unrealized loss | 28 | 15 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Hedge accounting | Foreign exchange | ||
Unrealized gain on derivative contracts (3): | ||
Unrealized gain | 667 | 531 |
Unrealized loss on derivative contracts (6): | ||
Unrealized loss | 638 | 701 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Economic hedges | ||
Unrealized gain on derivative contracts (3): | ||
Other | 488 | 352 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Economic hedges | Commodities | ||
Unrealized gain on derivative contracts (3): | ||
Unrealized gain | 1,723 | 2,783 |
Unrealized loss on derivative contracts (6): | ||
Unrealized loss | 1,998 | 2,187 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Economic hedges | Freight | ||
Unrealized gain on derivative contracts (3): | ||
Unrealized gain | 0 | 0 |
Unrealized loss on derivative contracts (6): | ||
Unrealized loss | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Economic hedges | Energy | ||
Unrealized gain on derivative contracts (3): | ||
Unrealized gain | 1 | 0 |
Unrealized loss on derivative contracts (6): | ||
Unrealized loss | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Economic hedges | Credit | ||
Unrealized gain on derivative contracts (3): | ||
Unrealized gain | 4 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | ||
Assets: | ||
Readily marketable inventories | 492 | 208 |
Trade accounts receivable | 0 | 0 |
Unrealized gain on derivative contracts (3): | ||
Total assets | 580 | 271 |
Liabilities: | ||
Trade accounts payable | 92 | 9 |
Unrealized loss on derivative contracts (6): | ||
Total liabilities | 200 | 80 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Hedge accounting | Interest rate | ||
Unrealized gain on derivative contracts (3): | ||
Unrealized gain | 0 | 0 |
Unrealized loss on derivative contracts (6): | ||
Unrealized loss | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Hedge accounting | Foreign exchange | ||
Unrealized gain on derivative contracts (3): | ||
Unrealized gain | 0 | 0 |
Unrealized loss on derivative contracts (6): | ||
Unrealized loss | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Economic hedges | ||
Unrealized gain on derivative contracts (3): | ||
Other | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Economic hedges | Commodities | ||
Unrealized gain on derivative contracts (3): | ||
Unrealized gain | 82 | 63 |
Unrealized loss on derivative contracts (6): | ||
Unrealized loss | 107 | 71 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Economic hedges | Freight | ||
Unrealized gain on derivative contracts (3): | ||
Unrealized gain | 6 | 0 |
Unrealized loss on derivative contracts (6): | ||
Unrealized loss | 1 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Economic hedges | Energy | ||
Unrealized gain on derivative contracts (3): | ||
Unrealized gain | 0 | 0 |
Unrealized loss on derivative contracts (6): | ||
Unrealized loss | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Economic hedges | Credit | ||
Unrealized gain on derivative contracts (3): | ||
Unrealized gain | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - RECON
FAIR VALUE MEASUREMENTS - RECONCILIATION FOR ASSETS AND LIABILITIES MEASURE AT FAIR VALUE USING LEVEL 3 (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Total | ||||
Balance at beginning of period | $ 348 | $ 342 | $ 191 | $ 176 |
Purchases | 495 | 626 | 853 | 1,070 |
Sales | (1,094) | (970) | (1,856) | (1,596) |
Issuances | 0 | (2) | (2) | |
Settlements | (83) | 125 | (49) | 168 |
Transfers into Level 3 | 423 | 271 | 685 | 484 |
Transfers out of Level 3 | 139 | (93) | 261 | (181) |
Balance at end of period | 380 | 450 | 380 | 450 |
Cost of goods sold | ||||
Total | ||||
Total gains and losses (realized/unrealized) included in cost of goods sold | 152 | 149 | 297 | 331 |
Readily Marketable Inventories | ||||
Readily Marketable Inventories | ||||
Balance at beginning of period | 629 | 619 | 208 | 231 |
Purchases | 534 | 668 | 1,074 | 1,346 |
Sales | (1,094) | (970) | (1,856) | (1,596) |
Issuances | 0 | 0 | 0 | |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 454 | 277 | 900 | 547 |
Transfers out of Level 3 | (46) | (148) | (103) | (246) |
Balance at end of period | 492 | 596 | 492 | 596 |
Total | ||||
Changes in unrealized gains (losses) relating to Level 3 assets and liabilities | 139 | 96 | 263 | 169 |
Readily Marketable Inventories | Cost of goods sold | ||||
Readily Marketable Inventories | ||||
Total gains and losses (realized/unrealized) included in cost of goods sold | 15 | 150 | 269 | 314 |
Derivatives, Net | ||||
Derivatives, Net | ||||
Balance at beginning of period | (68) | (16) | (8) | (24) |
Purchases | 0 | 0 | 3 | 2 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | (2) | (2) | |
Settlements | (83) | 18 | (49) | 0 |
Transfers into Level 3 | (1) | 7 | (26) | 10 |
Transfers out of Level 3 | 0 | (12) | 42 | (2) |
Balance at end of period | (20) | (13) | (20) | (13) |
Total | ||||
Changes in unrealized gains (losses) relating to Level 3 assets and liabilities | 91 | (9) | (29) | 5 |
Derivatives, Net | Cost of goods sold | ||||
Derivatives, Net | ||||
Total gains and losses (realized/unrealized) included in cost of goods sold | 132 | (10) | 20 | 3 |
Trade Accounts Payable Net | ||||
Trade Accounts Receivable/ Payable, Net | ||||
Balance at beginning of period | (213) | (261) | (9) | (31) |
Purchases | (39) | (42) | (224) | (278) |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | |
Settlements | 0 | 107 | 0 | 168 |
Transfers into Level 3 | (30) | (13) | (189) | (73) |
Transfers out of Level 3 | 185 | 67 | 322 | 67 |
Balance at end of period | (92) | (133) | (92) | (133) |
Total | ||||
Changes in unrealized gains (losses) relating to Level 3 assets and liabilities | 5 | 8 | 8 | 13 |
Trade Accounts Payable Net | Cost of goods sold | ||||
Trade Accounts Receivable/ Payable, Net | ||||
Total gains and losses (realized/unrealized) included in cost of goods sold | $ 5 | $ 9 | $ 8 | $ 14 |
DERIVATIVE INSTRUMENTS AND HE_3
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - DERIVATIVE POSITIONS (Details) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021USD ($)MMBTUMWhdayt | Dec. 31, 2020USD ($)MMBTUMWhdayt | |
Interest rate | Long | Swaps | ||
Derivative | ||
Notional amount of derivative | $ 1,516 | $ 1,989 |
Interest rate | Long | Forward Rate Agreements | ||
Derivative | ||
Notional amount of derivative | 0 | 1,216 |
Interest rate | Short | Swaps | ||
Derivative | ||
Notional amount of derivative | 2,125 | 1,418 |
Interest rate | Short | Forward Rate Agreements | ||
Derivative | ||
Notional amount of derivative | 0 | 805 |
Foreign exchange | Long | Swaps | ||
Derivative | ||
Notional amount of derivative | 175 | 422 |
Foreign exchange | Long | Forwards | ||
Derivative | ||
Notional amount of derivative | 13,494 | 11,272 |
Foreign exchange | Long | Futures | ||
Derivative | ||
Notional amount of derivative | 0 | 0 |
Foreign exchange | Long | Options | ||
Derivative | ||
Delta | 95 | 100 |
Foreign exchange | Short | Swaps | ||
Derivative | ||
Notional amount of derivative | 287 | 413 |
Foreign exchange | Short | Forwards | ||
Derivative | ||
Notional amount of derivative | 14,232 | 13,171 |
Foreign exchange | Short | Futures | ||
Derivative | ||
Notional amount of derivative | 1 | 55 |
Foreign exchange | Short | Options | ||
Derivative | ||
Delta | $ 43 | $ 142 |
Commodities | Long | Swaps | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 0 | 0 |
Commodities | Long | Forwards | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 32,293,348 | 38,332,313 |
Commodities | Long | Futures | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 0 | 0 |
Commodities | Long | Options | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 567,577 | 0 |
Commodities | Short | Swaps | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 5,896,702 | 1,700,972 |
Commodities | Short | Forwards | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 34,325,522 | 39,743,593 |
Commodities | Short | Futures | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 4,580,160 | 11,422,365 |
Commodities | Short | Options | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 246,259 | 280,240 |
Ocean freight | Long | Forwards | ||
Derivative | ||
Nonmonetary notional amount of derivatives | day | 16,960 | 3,055 |
Ocean freight | Long | Options | ||
Derivative | ||
Nonmonetary notional amount of derivatives | day | 511 | 0 |
Ocean freight | Short | Forwards | ||
Derivative | ||
Nonmonetary notional amount of derivatives | day | 24,891 | 0 |
Ocean freight | Short | Options | ||
Derivative | ||
Nonmonetary notional amount of derivatives | day | 41 | 0 |
Natural gas | Long | Swaps | ||
Derivative | ||
Nonmonetary notional amount of derivatives | MMBTU | 649,289 | 1,040,284 |
Natural gas | Long | Futures | ||
Derivative | ||
Nonmonetary notional amount of derivatives | MMBTU | 2,417,500 | 7,210,000 |
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 | 591,194 | 413,542 |
Energy - other | Short | Swaps | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 307,207 | 0 |
Electricity | Long | Swaps | ||
Derivative | ||
Nonmonetary notional amount of derivatives | MWh | 670,973 | 0 |
Electricity | Short | Swaps | ||
Derivative | ||
Nonmonetary notional amount of derivatives | MWh | 256,949 | 0 |
Other | Long | Swaps and futures | ||
Derivative | ||
Notional amount of derivative | $ 0 | $ 30 |
Other | Short | Swaps and futures | ||
Derivative | ||
Notional amount of derivative | 180 | 30 |
Fair Value Hedging | Interest rate | ||
Derivative | ||
Carrying value of hedged debt | 3,778 | 2,465 |
Cumulative adjustment to long-term debt from application of hedge accounting | 44 | 92 |
Notional amount of derivative | 3,751 | 2,382 |
Fair Value Hedging | Foreign exchange | ||
Derivative | ||
Carrying value of hedged debt | 278 | 297 |
Notional amount of derivative | 278 | 297 |
Cash Flow Hedges | Foreign exchange | ||
Derivative | ||
Amounts expected to be reclassified from AOCI to earnings in the next twelve months | 1 | |
Cash Flow Hedges | Foreign exchange | Forwards | ||
Derivative | ||
Notional amount of derivative | 12 | 182 |
Cash Flow Hedges | Foreign exchange | Options | ||
Derivative | ||
Notional amount of derivative | 78 | 90 |
Net Investment Hedges | Foreign exchange | ||
Derivative | ||
Notional amount of derivative | $ 1,548 | $ 1,875 |
DERIVATIVE INSTRUMENTS AND HE_4
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - EFFECT OF DERIVATIVE INSTRUMENTS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Net Investment Hedges | ||||
Derivative Instruments, Gain (Loss) | ||||
Gains and losses on derivatives used as fair value hedges of foreign currency risk / net investment hedges included in other comprehensive income (loss) during the period | $ (96) | $ 7 | $ (58) | $ 53 |
Cost of goods sold | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (loss) recognized in income on derivative instruments | (538) | 106 | (1,292) | (171) |
Interest expense | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (loss) recognized in income on derivative instruments | 7 | 3 | 14 | 2 |
Foreign exchange gains (losses) | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (loss) recognized in income on derivative instruments | (153) | (50) | (84) | (227) |
Other income (expense) | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (loss) recognized in income on derivative instruments | 1 | 0 | ||
Foreign currency | Fair Value Hedging | ||||
Derivative Instruments, Gain (Loss) | ||||
Gains and losses on derivatives used as fair value hedges of foreign currency risk / net investment hedges included in other comprehensive income (loss) during the period | (4) | (3) | (2) | 0 |
Foreign currency | Cash Flow Hedges | ||||
Derivative Instruments, Gain (Loss) | ||||
Gains and losses on derivative instruments used as cash flow hedges included in other comprehensive income (loss) during the period | 7 | (3) | 3 | (17) |
Amounts released from accumulated other comprehensive income (loss) during the period - Cash flow hedge of foreign currency risk | (2) | (3) | (3) | 1 |
Foreign currency | Cash Flow Hedges | BP Bunge Bioenergia | ||||
Derivative Instruments, Gain (Loss) | ||||
Gains and losses on derivative instruments used as cash flow hedges included in other comprehensive income (loss) during the period | (1) | 20 | (37) | 10 |
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 | 0 | (19) | 0 | 3 |
Hedge accounting | Foreign currency | Net sales | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (loss) on hedge accounting | 1 | (5) | 1 | (5) |
Hedge accounting | Foreign currency | Foreign exchange gains (losses) | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (loss) on hedge accounting | 1 | 3 | (17) | 10 |
Hedge accounting | Interest rate | Interest expense | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (loss) on hedge accounting | 7 | 3 | 13 | 2 |
Economic hedges | Foreign currency | Cost of goods sold | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (loss) on economic hedges | 470 | (198) | 185 | (1,115) |
Economic hedges | Foreign currency | Foreign exchange gains (losses) | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (loss) on economic hedges | (154) | (53) | (67) | (237) |
Economic hedges | Commodities | Cost of goods sold | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (loss) on economic hedges | (1,139) | 265 | (1,736) | 986 |
Economic hedges | Other | Cost of goods sold | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (loss) on economic hedges | $ 131 | $ 39 | 259 | (42) |
Economic hedges | Interest rate | Interest expense | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (loss) on economic hedges | 1 | 0 | ||
Economic hedges | Interest rate | Other income (expense) | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (loss) on economic hedges | $ 1 | $ 0 |
DEBT (Details)
DEBT (Details) - USD ($) | Jul. 16, 2021 | May 14, 2021 | Feb. 25, 2021 | Feb. 23, 2021 | Oct. 22, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 14, 2018 |
Debt | ||||||||
Commercial paper, outstanding issuances | $ 0 | $ 549,000,000 | ||||||
Short-term debt | 1,826,000,000 | 2,828,000,000 | ||||||
Subsidiaries | Bunge Limited Finance Corp. | ||||||||
Debt | ||||||||
Subsidiary ownership (in percent) | 100.00% | |||||||
Line of Credit | ||||||||
Debt | ||||||||
Debt instrument unused and available borrowing capacity amount | 5,565,000,000 | |||||||
Senior Notes | Unsecured Senior Notes Due May 14, 2031 | ||||||||
Debt | ||||||||
Aggregate principal amount | $ 1,000,000,000 | |||||||
Redemption price (in percent) | 100.00% | |||||||
Interest rate | 2.75% | |||||||
Proceeds from unsecured senior notes | $ 990,000,000 | |||||||
Carrying Value | ||||||||
Debt | ||||||||
Long-term debt, including current portion | 5,367,000,000 | 4,460,000,000 | ||||||
Fair Value | Level 2 | ||||||||
Debt | ||||||||
Long-term debt, including current portion | 5,570,000,000 | 4,646,000,000 | ||||||
Line of Credit | ||||||||
Debt | ||||||||
Maximum borrowing capacity | 5,940,000,000 | |||||||
Debt instrument unused and available borrowing capacity amount | 5,765,000,000 | 4,072,000,000 | ||||||
Bilateral credit lines | ||||||||
Debt | ||||||||
Short-term debt | 200,000,000 | 550,000,000 | ||||||
Local bank line of credit | ||||||||
Debt | ||||||||
Short-term debt | 1,076,000,000 | 785,000,000 | ||||||
Term Loan | ||||||||
Debt | ||||||||
Term of credit agreement | 364 days | 364 days | ||||||
Aggregate principal amount | $ 250,000,000 | $ 125,000,000 | ||||||
Liquidity facility | ||||||||
Debt | ||||||||
Credit facility, borrowings outstanding | 0 | $ 0 | ||||||
Revolving Credit Facility | Line of Credit | ||||||||
Debt | ||||||||
Maximum borrowing capacity | $ 375,000,000 | |||||||
Term of credit agreement | 364 days | |||||||
Revolving Credit Facility | Line of Credit | Revolving Credit Facility Maturing 2021 | ||||||||
Debt | ||||||||
Credit facility, borrowings outstanding | 0 | |||||||
Maximum borrowing capacity | $ 1,250,000,000 | |||||||
Term of credit agreement | 364 days | |||||||
Revolving Credit Facility | Line of Credit | Revolving Credit Facility Maturing 2021, Tranche A | ||||||||
Debt | ||||||||
Maximum borrowing capacity | $ 1,000,000,000 | |||||||
Revolving Credit Facility | Line of Credit | Revolving Credit Facility Maturing 2021, Tranche B | ||||||||
Debt | ||||||||
Maximum borrowing capacity | $ 250,000,000 | |||||||
Revolving Credit Facility | Line of Credit | Revolving Credit Facility Maturing 2022 | Subsequent event | ||||||||
Debt | ||||||||
Maximum borrowing capacity | $ 1,000,000,000 | |||||||
Term of credit agreement | 364 days | |||||||
Option to add additional borrowing capacity, maximum amount | $ 250,000,000 | |||||||
Revolving Credit Facility | Line of Credit | Revolving Credit Facility Maturing 2024 | ||||||||
Debt | ||||||||
Credit facility, borrowings outstanding | 0 | |||||||
Maximum borrowing capacity | 1,350,000,000 | $ 1,100,000,000 | ||||||
Term of credit agreement | 5 years | |||||||
Option to add additional borrowing capacity, maximum amount | 200,000,000 | |||||||
Revolving Credit Facility | Line of Credit | Revolving Credit Facility Maturing 2026 | Subsequent event | ||||||||
Debt | ||||||||
Maximum borrowing capacity | $ 1,350,000,000 | |||||||
Term of credit agreement | 5 years | |||||||
Revolving Credit Facility | Line of Credit | Revolving Credit Facility Maturing September 2022 | ||||||||
Debt | ||||||||
Credit facility, borrowings outstanding | 175,000,000 | |||||||
Maximum borrowing capacity | $ 865,000,000 | |||||||
Revolving Credit Facility | Line of Credit | Revolving Credit Facility Maturing September 2022 | Minimum | ||||||||
Debt | ||||||||
Quarterly fee (in percent) | 0.125% | |||||||
Revolving Credit Facility | Line of Credit | Revolving Credit Facility Maturing September 2022 | Maximum | ||||||||
Debt | ||||||||
Quarterly fee (in percent) | 0.275% | |||||||
Revolving Credit Facility | Line of Credit | Revolving Credit Facility Maturing September 2022 | London Interbank Offered Rate (LIBOR) | Minimum | ||||||||
Debt | ||||||||
Basis spread on variable rate | 1.00% | |||||||
Revolving Credit Facility | Line of Credit | Revolving Credit Facility Maturing September 2022 | London Interbank Offered Rate (LIBOR) | Maximum | ||||||||
Debt | ||||||||
Basis spread on variable rate | 1.75% |
RELATED PARTY TRANSACTIONS - Na
RELATED PARTY TRANSACTIONS - Narrative (Details) - Less than - Related parties | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Supplier Concentration | Cost of goods sold | |||||
Related Party Transactions | |||||
Related party purchase and sales composition (percent) | 7.00% | 7.00% | 7.00% | 7.00% | |
Supplier Concentration | Trade Accounts Payable Benchmark | |||||
Related Party Transactions | |||||
Related party purchase and sales composition (percent) | 5.00% | 5.00% | |||
Customer Concentration | Net sales | |||||
Related Party Transactions | |||||
Related party purchase and sales composition (percent) | 2.00% | 2.00% | 2.00% | 2.00% | |
Customer Concentration | Accounts Receivable | |||||
Related Party Transactions | |||||
Related party purchase and sales composition (percent) | 2.00% | 2.00% |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) R$ in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2021USD ($) | Jun. 30, 2021BRL (R$) | Dec. 31, 2020USD ($) | Dec. 31, 2020BRL (R$) | Jun. 30, 2021USD ($)subsidiary | Dec. 31, 2020USD ($) | Jun. 30, 2021BRL (R$) | Mar. 31, 2017employee | |
Loss Contingencies and Guarantees | ||||||||
Non-income tax claims | $ 190,000 | $ 170,000 | $ 190,000 | $ 170,000 | ||||
Maximum Potential Future Payments | 535,000 | 535,000 | ||||||
Litigation Settlement, Amount Awarded to Other Party | 5 | R$ 27 | ||||||
Brazil | ||||||||
Loss Contingencies and Guarantees | ||||||||
Number of employees under administrative proceedings | employee | 2 | |||||||
Non-income tax claims | ||||||||
Loss Contingencies and Guarantees | ||||||||
Non-income tax claims | 22,000 | 20,000 | 22,000 | 20,000 | ||||
Labor claims | ||||||||
Loss Contingencies and Guarantees | ||||||||
Non-income tax claims | 67,000 | 54,000 | 67,000 | 54,000 | ||||
Civil and other claims | ||||||||
Loss Contingencies and Guarantees | ||||||||
Non-income tax claims | 101,000 | 96,000 | 101,000 | 96,000 | ||||
ICMS tax liability | Brazil | ||||||||
Loss Contingencies and Guarantees | ||||||||
Income tax liability for ICMS incentives or benefits | 2,000 | 2,000 | R$ 8000 | |||||
Pre-tax recoveries | $ 51,000 | R$ 260000 | ||||||
ICMS tax liability | Brazil | Tax return examination 1990 - Present | ||||||||
Loss Contingencies and Guarantees | ||||||||
Total assessment | 211,000 | 191,000 | ||||||
PIS COFINS liability | Brazil | Tax return examination 2004 - 2012 | ||||||||
Loss Contingencies and Guarantees | ||||||||
Total assessment | 292,000 | $ 208,000 | ||||||
Unconsolidated affiliates financing | ||||||||
Loss Contingencies and Guarantees | ||||||||
Maximum Potential Future Payments | 271,000 | 271,000 | ||||||
Potential liability | 227,000 | 227,000 | ||||||
Obligation related to outstanding guarantees | 10,000 | 10,000 | ||||||
Residual value guarantee | ||||||||
Loss Contingencies and Guarantees | ||||||||
Maximum Potential Future Payments | 258,000 | 258,000 | ||||||
Obligation related to outstanding guarantees | 0 | 0 | ||||||
Other guarantees | ||||||||
Loss Contingencies and Guarantees | ||||||||
Maximum Potential Future Payments | 6,000 | 6,000 | ||||||
Guarantee of indebtedness of subsidiaries | ||||||||
Loss Contingencies and Guarantees | ||||||||
Long-term debt including current portion, carrying value | $ 6,482,000 | $ 6,482,000 | ||||||
Guarantee of indebtedness of subsidiaries | 100% owned subsidiaries | Bunge Limited Finance Corp, Bunge Finance Europe, B.V and Bunge N.A. Finance L.P | ||||||||
Loss Contingencies and Guarantees | ||||||||
Number of finance subsidiaries issuing senior notes | subsidiary | 2 | |||||||
Percentage of ownership interest | 100.00% | 100.00% | 100.00% |
OTHER NON-CURRENT LIABILITIES_2
OTHER NON-CURRENT LIABILITIES (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Other Liabilities Disclosure [Abstract] | ||
Labor, legal and other provisions | $ 192 | $ 175 |
Pension and post-retirement obligations | 275 | 276 |
Uncertain income tax positions | 54 | 50 |
Unrealized loss on derivative contracts, at fair value | 25 | 7 |
Other | 118 | 149 |
Other non-current liabilities | $ 664 | $ 657 |
REDEEMABLE NONCONTROLLING INT_2
REDEEMABLE NONCONTROLLING INTEREST (Details) € in Millions, $ in Millions | Jul. 16, 2021EUR (€) | Jul. 16, 2021USD ($) | Jun. 30, 2021 |
Subsequent event | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Declared dividends | € 200 | $ 238 | |
Minority interest portion of declared dividends | € 60 | $ 71 | |
Loders | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Interest acquired | 70.00% | ||
Loders | Loders | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Ownership interest by minority shareholder | 30.00% |
EQUITY - AOCI (Details)
EQUITY - AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | $ 6,069 | |||
Other comprehensive income (loss) before reclassifications | $ 227 | $ (108) | (10) | $ (892) |
Amount reclassified from accumulated other comprehensive income (loss) | (1) | 4 | (2) | 1 |
Ending Balance | 7,184 | 7,184 | ||
Accumulated Other Comprehensive Income (Loss) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (6,484) | (6,411) | (6,246) | (5,624) |
Ending Balance | (6,258) | (6,515) | (6,258) | (6,515) |
Foreign Exchange Translation Adjustment | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (6,092) | (6,098) | (5,857) | (5,263) |
Other comprehensive income (loss) before reclassifications | 321 | (111) | 86 | (946) |
Amount reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Ending Balance | (5,771) | (6,209) | (5,771) | (6,209) |
Deferred Gains (Losses) on Hedging Activities | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (218) | (123) | (215) | (170) |
Other comprehensive income (loss) before reclassifications | (92) | 3 | (94) | 54 |
Amount reclassified from accumulated other comprehensive income (loss) | (1) | 3 | (2) | (1) |
Ending Balance | (311) | (117) | (311) | (117) |
Pension and Other Postretirement Liability Adjustments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (174) | (190) | (174) | (191) |
Other comprehensive income (loss) before reclassifications | (2) | 0 | (2) | 0 |
Amount reclassified from accumulated other comprehensive income (loss) | 0 | 1 | 0 | 2 |
Ending Balance | $ (176) | $ (189) | $ (176) | $ (189) |
EARNINGS PER COMMON SHARE (Deta
EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Computation of basic and diluted earnings per common share | ||||
Net income (loss) | $ 369 | $ 522 | $ 1,286 | $ 329 |
Net (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests | (7) | (6) | (92) | 3 |
Net income (loss) attributable to Bunge | 362 | 516 | 1,194 | 332 |
Convertible preference share dividends | (9) | (9) | (17) | (17) |
Adjustment of redeemable noncontrolling interest | 0 | 5 | 0 | (10) |
Net income (loss) available to Bunge common shareholders | 353 | 512 | 1,177 | 305 |
Add back convertible preference share dividends | 9 | 9 | 17 | 17 |
Net income (loss) available to Bunge common shareholders - Diluted | $ 362 | $ 521 | $ 1,194 | $ 322 |
Weighted-average number of common shares outstanding: | ||||
Basic (in shares) | 141,536,775 | 141,565,298 | 140,942,885 | 141,734,488 |
Effect of dilutive shares: | ||||
—stock options and awards (in shares) | 2,386,791 | 67,683 | 2,397,053 | 201,365 |
—convertible preference shares (in shares) | 8,756,388 | 8,570,096 | 8,756,388 | 8,570,096 |
Diluted (in shares) | 152,679,954 | 150,203,077 | 152,096,326 | 150,505,949 |
Earnings per common share: | ||||
Net income (loss) attributable to Bunge common shareholders—basic (in dollars per share) | $ 2.50 | $ 3.62 | $ 8.35 | $ 2.15 |
Net income (loss) attributable to Bunge common shareholders—diluted (in dollars per share) | $ 2.37 | $ 3.47 | $ 7.85 | $ 2.14 |
Stock options and contingently issuable restricted stock units | ||||
Earnings per common share: | ||||
Antidilutive shares excluded from computation of EPS (in shares) | 0 | 7,000,000 | 2,000,000 | 6,000,000 |
SEGMENT INFORMATION - Narrative
SEGMENT INFORMATION - Narrative (Details) | 6 Months Ended |
Jun. 30, 2021segment | |
Segment Reporting Information | |
Number of reportable segments | 4 |
Sugar and Bioenergy | BP Bunge Bioenergia | |
Segment Reporting Information | |
Equity method investment, ownership percentage | 50.00% |
SEGMENT INFORMATION - FINANCIAL
SEGMENT INFORMATION - FINANCIAL INFORMATION BY SEGMENT (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Operating Segment Information | |||||
Net sales | $ 15,391 | $ 9,462 | $ 28,352 | $ 18,635 | |
Cost of Goods and Services Sold | (14,726) | (8,357) | (26,540) | (17,356) | |
Gross profit | 665 | 1,105 | 1,812 | 1,279 | |
Selling, General and Administrative Expense | (297) | (346) | (568) | (641) | |
Foreign exchange gains (losses) | 35 | 27 | 25 | 21 | |
EBIT attributable to noncontrolling interests | (8) | (8) | (95) | 0 | |
Other income (expense) – net | 35 | 27 | 298 | 20 | |
Income (loss) from affiliates | 29 | (67) | 73 | (111) | |
Total segment EBIT | 459 | 738 | 1,545 | 568 | |
Depreciation, depletion and amortization | 106 | 104 | 212 | 217 | |
Total assets | 25,085 | 18,559 | 25,085 | 18,559 | $ 23,655 |
Agribusiness | |||||
Operating Segment Information | |||||
Net sales | 11,654 | 6,925 | 21,444 | 13,307 | |
Refined and Specialty Oils | |||||
Operating Segment Information | |||||
Net sales | 3,198 | 2,129 | 5,924 | 4,455 | |
Milling | |||||
Operating Segment Information | |||||
Net sales | 471 | 382 | 862 | 797 | |
Sugar and Bioenergy | |||||
Operating Segment Information | |||||
Net sales | 68 | 26 | 122 | 76 | |
Inter—segment revenues | |||||
Operating Segment Information | |||||
Net sales | 2,185 | (1,315) | (3,846) | (2,566) | |
Selling, General and Administrative Expense | 0 | 0 | 0 | 0 | |
Foreign exchange gains (losses) | 0 | 0 | 0 | 0 | |
EBIT attributable to noncontrolling interests | 0 | 0 | 0 | 0 | |
Other income (expense) – net | 0 | 0 | 0 | 0 | |
Income (loss) from affiliates | 0 | 0 | 0 | 0 | |
Total segment EBIT | 0 | 0 | 0 | 0 | |
Depreciation, depletion and amortization | 0 | 0 | 0 | 0 | |
Total assets | 0 | 0 | 0 | 0 | |
Inter—segment revenues | Agribusiness | |||||
Operating Segment Information | |||||
Net sales | (2,045) | (1,262) | (3,511) | (2,468) | |
Inter—segment revenues | Refined and Specialty Oils | |||||
Operating Segment Information | |||||
Net sales | (125) | (50) | (227) | (93) | |
Inter—segment revenues | Milling | |||||
Operating Segment Information | |||||
Net sales | (15) | (3) | (108) | (5) | |
Inter—segment revenues | Sugar and Bioenergy | |||||
Operating Segment Information | |||||
Net sales | 0 | 0 | 0 | 0 | |
Operating | Agribusiness | |||||
Operating Segment Information | |||||
Net sales | 11,654 | 6,925 | 21,444 | 13,307 | |
Cost of Goods and Services Sold | (11,244) | (6,018) | (20,149) | (12,403) | |
Gross profit | 410 | 907 | 1,295 | 904 | |
Selling, General and Administrative Expense | (114) | (109) | (194) | (218) | |
Foreign exchange gains (losses) | 36 | 31 | 29 | 19 | |
EBIT attributable to noncontrolling interests | (3) | (8) | (11) | (5) | |
Other income (expense) – net | 24 | 31 | 46 | 24 | |
Income (loss) from affiliates | 11 | 21 | 35 | 28 | |
Total segment EBIT | 364 | 873 | 1,200 | 752 | |
Depreciation, depletion and amortization | 50 | 50 | 102 | 107 | |
Total assets | 18,541 | 13,356 | 18,541 | 13,356 | |
Operating | Refined and Specialty Oils | |||||
Operating Segment Information | |||||
Net sales | 3,198 | 2,129 | 5,924 | 4,455 | |
Cost of Goods and Services Sold | (3,003) | (1,983) | (5,494) | (4,180) | |
Gross profit | 195 | 146 | 430 | 275 | |
Selling, General and Administrative Expense | (90) | (89) | (176) | (183) | |
Foreign exchange gains (losses) | 1 | (4) | 2 | 3 | |
EBIT attributable to noncontrolling interests | (5) | 0 | (83) | 5 | |
Other income (expense) – net | 1 | (2) | 237 | (2) | |
Income (loss) from affiliates | 0 | 0 | 0 | 0 | |
Total segment EBIT | 102 | 51 | 410 | 98 | |
Depreciation, depletion and amortization | 38 | 37 | 75 | 74 | |
Total assets | 4,096 | 3,350 | 4,096 | 3,350 | |
Operating | Milling | |||||
Operating Segment Information | |||||
Net sales | 471 | 382 | 862 | 797 | |
Cost of Goods and Services Sold | (414) | (329) | (771) | (697) | |
Gross profit | 57 | 53 | 91 | 100 | |
Selling, General and Administrative Expense | (25) | (28) | (48) | (54) | |
Foreign exchange gains (losses) | 2 | 0 | 0 | (2) | |
EBIT attributable to noncontrolling interests | 0 | 0 | (1) | 0 | |
Other income (expense) – net | 0 | 0 | 0 | (1) | |
Income (loss) from affiliates | 0 | 0 | 0 | 0 | |
Total segment EBIT | 34 | 25 | 42 | 43 | |
Depreciation, depletion and amortization | 11 | 11 | 21 | 23 | |
Total assets | 1,370 | 1,180 | 1,370 | 1,180 | |
Operating | Sugar and Bioenergy | |||||
Operating Segment Information | |||||
Net sales | 68 | 26 | 122 | 76 | |
Cost of Goods and Services Sold | (67) | (26) | (120) | (74) | |
Gross profit | 1 | 0 | 2 | 2 | |
Selling, General and Administrative Expense | 0 | 0 | 0 | (1) | |
Foreign exchange gains (losses) | 0 | 0 | 0 | 0 | |
EBIT attributable to noncontrolling interests | 0 | 0 | 0 | 0 | |
Other income (expense) – net | 0 | 0 | 0 | 0 | |
Income (loss) from affiliates | 18 | (88) | 37 | (139) | |
Total segment EBIT | 19 | (88) | 39 | (138) | |
Depreciation, depletion and amortization | 0 | 0 | 0 | 0 | |
Total assets | 171 | 154 | 171 | 154 | |
Corporate - other | |||||
Operating Segment Information | |||||
Cost of Goods and Services Sold | 2 | (1) | (6) | (2) | |
Gross profit | 2 | (1) | (6) | (2) | |
Selling, General and Administrative Expense | (68) | (120) | (150) | (185) | |
Foreign exchange gains (losses) | (4) | 0 | (6) | 1 | |
EBIT attributable to noncontrolling interests | 0 | 0 | 0 | 0 | |
Other income (expense) – net | 10 | (2) | 15 | (1) | |
Income (loss) from affiliates | 0 | 0 | 1 | 0 | |
Total segment EBIT | (60) | (123) | (146) | (187) | |
Depreciation, depletion and amortization | 7 | 6 | 14 | 13 | |
Total assets | $ 907 | $ 519 | $ 907 | $ 519 |
SEGMENT INFORMATION - NET INCOM
SEGMENT INFORMATION - NET INCOME TO SEGMENT EBIT (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Reconciliation of total segment EBIT: | ||||
Net income (loss) attributable to Bunge | $ 362 | $ 516 | $ 1,194 | $ 332 |
Interest income | (6) | (6) | (15) | (13) |
Interest expense | 54 | 62 | 127 | 139 |
Income tax expense (benefit) | 50 | 168 | 242 | 113 |
Noncontrolling interests' share of interest and tax | (1) | (2) | (3) | (3) |
Total Segment EBIT from continuing operations | $ 459 | $ 738 | $ 1,545 | $ 568 |
SEGMENT INFORMATION - NET SALES
SEGMENT INFORMATION - NET SALES TO EXTERNAL CUSTOMERS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue from External Customer [Line Items] | ||||
Sales from other arrangements | $ 11,444 | $ 7,147 | $ 21,035 | $ 13,784 |
Sales from contracts with customers | 3,947 | 2,315 | 7,317 | 4,851 |
Net sales to external customers | 15,391 | 9,462 | 28,352 | 18,635 |
Agribusiness | ||||
Revenue from External Customer [Line Items] | ||||
Sales from other arrangements | 11,128 | 6,612 | 20,486 | 12,695 |
Sales from contracts with customers | 526 | 313 | 958 | 612 |
Net sales to external customers | 11,654 | 6,925 | 21,444 | 13,307 |
Refined and Specialty Oils | ||||
Revenue from External Customer [Line Items] | ||||
Sales from other arrangements | 243 | 497 | 429 | 989 |
Sales from contracts with customers | 2,955 | 1,632 | 5,495 | 3,466 |
Net sales to external customers | 3,198 | 2,129 | 5,924 | 4,455 |
Milling | ||||
Revenue from External Customer [Line Items] | ||||
Sales from other arrangements | 6 | 14 | 0 | 30 |
Sales from contracts with customers | 465 | 368 | 862 | 767 |
Net sales to external customers | 471 | 382 | 862 | 797 |
Sugar and Bioenergy | ||||
Revenue from External Customer [Line Items] | ||||
Sales from other arrangements | 67 | 24 | 120 | 70 |
Sales from contracts with customers | 1 | 2 | 2 | 6 |
Net sales to external customers | $ 68 | $ 26 | $ 122 | $ 76 |