LEASE COMMITMENTS

12 Months Ended

Dec. 31, 2016

25. LEASE COMMITMENTS

Bunge routinely leases storage facilities, transportation equipment and office facilities under operating leases. Future minimum lease payments by year and in the aggregate under non-cancelable operating leases with initial or remaining terms of one year or more at December 31, 2016 are as follows:

(US$ in millions)	Minimum Lease Payments
2017	$	152
2018		115
2019		99
2020		72
2021		59
Thereafter		171

Total	$	668

Net rent expense under non-cancelable operating leases is as follows:

	Year Ended December 31,
(US$ in millions)	2016			2015			2014
Rent expense	$	213		$	182		$	259
Sublease income		(9	)		(6	)		(22	)

Net rent expense	$	204		$	176		$	237

In addition, Bunge enters into agricultural partnership agreements for the production of sugarcane. These agreements have an average remaining life of four years and cover approximately 211,017 hectares of land under cultivation. Amounts owed under these agreements are dependent on several variables including the quantity of sugarcane produced per hectare, the total recoverable sugar ("ATR") per ton of sugarcane produced and the price for each kilogram of ATR as determined by Consecana, the São Paulo state sugarcane, sugar and ethanol council. During the years ended December 31, 2016, 2015 and 2014, Bunge made payments related to these agreements of $154 million, $125 million and $162 million, respectively. Of these amounts $89 million, $75 million and $95 million, respectively, were payments for advances on future production and $65 million, $50 million and $67 million, respectively, were included in cost of goods sold in the consolidated statements of income for the years ended December 31, 2016, 2015 and 2014, respectively.

- Definition

Tabular disclosure of a lessee's leasing arrangements including: (1) the basis on which contingent rental payments are determined, (2) the existence and terms of renewal or purchase options and escalation clauses, (3) restrictions imposed by lease arrangements, such as those concerning dividends, additional debt, and further leasing, (4) rent holidays, rent concessions, or leasehold improvement incentives and unusual provisions or conditions. Disclosure may also include the specific period used to amortize material leasehold improvements made at the inception of the lease or during the lease term. Additionally, for operating leases having initial or remaining noncancelable lease terms in excess of one year: (a) future minimum rental payments required as of the date of the latest balance sheet presented, in the aggregate and for each of the five succeeding fiscal years, (b) the total of minimum rentals to be received in the future under noncancelable subleases as of the date of the latest balance sheet presented, and (c) for all operating leases, rental expense for each period for which an income statement is presented, with separate amounts for minimum rentals, contingent rentals, and sublease rentals. Rental payments under leases with terms of a month or less that were not renewed need not be included.

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