SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2016

SEGMENT INFORMATION

SEGMENT INFORMATION

26. SEGMENT INFORMATION

        Bunge has five reportable segments—Agribusiness, Edible Oil Products, Milling Products, Sugar and Bioenergy, and Fertilizer—which are organized based upon similar economic characteristics and are similar in nature of products and services offered, the nature of production processes and the type and class of customer and distribution methods. The Agribusiness segment is characterized by both inputs and outputs being agricultural commodities and thus high volume and low margin. The Edible Oil Products segment involves the processing, production and marketing of products derived from vegetable oils. The Milling Products segment involves the processing, production and marketing of products derived primarily from wheat and corn. The Sugar and Bioenergy segment involves sugarcane growing and milling in Brazil, sugar merchandising in various countries, as well as sugarcane-based ethanol production and corn-based ethanol investments and related activities. Following the classification of the Brazilian fertilizer distribution and North American fertilizer businesses as discontinued operations, the activities of the Fertilizer segment include its port operations in Brazil and Argentina and its blending and retail operations in Argentina.

        The "Discontinued Operations & Unallocated" column in the following table contains the reconciliation between the totals for reportable segments and Bunge consolidated totals, which consist primarily of amounts attributable to discontinued operations, corporate items not allocated to the operating segments and inter-segment eliminations. Transfers between the segments are generally valued at market. The segment revenues generated from these transfers are shown in the following table as "Inter-segment revenues."

(US$ in millions)	Agribusiness			Edible Oil Products			Milling Products			Sugar and Bioenergy			Fertilizer			Discontinued Operations & Unallocated(1)			Total
2016
Net sales to external customers	$	30,061		$	6,859		$	1,647		$	3,709		$	403		$	—		$	42,679
Inter—segment revenues		3,867			115			9			13			—			(4,004	)		—
Foreign exchange gains (losses)		(7	)		(1	)		(7	)		9			(2	)		—			(8	)
Noncontrolling interests(1)		(21	)		(13	)		—			—			(2	)		14			(22	)
Other income (expense)—net		24			7			(4	)		(16	)		1			—			12
Segment EBIT(3)		875			112			131			(4	)		29			—			1,143
Discontinued operations(2)		—			—			—			—			—			(9	)		(9	)
Depreciation, depletion and amortization		(236	)		(94	)		(62	)		(143	)		(12	)		—			(547	)
Investments in affiliates		325			—			—			48			—			—			373
Total assets		12,159			2,329			1,444			2,754			318			184			19,188
Capital expenditures		421			108			75			131			16			33			784
2015
Net sales to external customers	$	31,267		$	6,698		$	1,609		$	3,495		$	386		$	—		$	43,455
Inter—segment revenues		3,499			178			37			12			—			(3,726	)		—
Foreign exchange gains (losses)		67			—			(8	)		(68	)		1			—			(8	)
Noncontrolling interests(1)		(9	)		(8	)		—			—			(1	)		19			1
Other income (expense)—net		(3	)		4			(3	)		(15	)		(1	)		—			(18	)
Segment EBIT(4)		1,108			59			103			(27	)		5			—			1,248
Discontinued operations(2)		—			—			—			—			—			35			35
Depreciation, depletion and amortization		(234	)		(90	)		(46	)		(160	)		(15	)		—			(545	)
Investments in affiliates		249			—			—			80			—			—			329
Total assets		11,832			1,963			1,343			2,318			299			159			17,914
Capital expenditures		359			63			60			125			17			25			649
2014
Net sales to external customers	$	42,109		$	7,972		$	2,064		$	4,542		$	474		$	—		$	57,161
Inter—segment revenues		3,510			161			88			—			—			(3,759	)		—
Foreign exchange gains (losses)		39			(4	)		(8	)		19			1			—			47
Noncontrolling interests(1)		(23	)		(9	)		—			(1	)		(5	)		36			(2	)
Other income (expense)—net		8			5			(4	)		10			(2	)		—			17
Segment EBIT		890			58			131			(168	)		45			—			956
Discontinued operations(2)		—			—			—			—			—			32			32
Depreciation, depletion and amortization		(240	)		(96	)		(47	)		(208	)		(16	)		—			(607	)
Investments in affiliates		178			—			—			116			—			—			294
Total assets		14,268			2,235			1,174			3,143			356			249			21,425
Capital expenditures		411			95			103			193			16			21			839

(1)	Includes the noncontrolling interests' share of interest and tax to reconcile to consolidated noncontrolling interests.
(2)	Represents net income (loss) from discontinued operations.
(3)	2016 EBIT includes $122 million of gains related to disposition of equity interest in operations in Agribusiness, recorded in other income (expense)-net. In addition, Bunge recorded pre-tax impairment charges of $71 million and $9 million in other income (expense)-net and cost of goods sold, respectively. Of these pre-tax impairment charges, $44 million was allocated to Sugar and Bioenergy, $27 million to Agribusiness and $9 million to Fertilizer.
(4)	2015 EBIT includes a $47 million gain on the sale of assets in Agribusiness. In addition, Bunge recorded pre-tax impairment charges of $57 million, of which $15 million, $14 million and $13 million are included in cost of goods sold, selling, general and administrative expenses and goodwill impairment, respectively. Of these pre-tax impairment charges, $14 million was allocated to Agribusiness and $28 million to Edible Oil Products.

        Total segment earnings before interest and taxes ("EBIT") is an operating performance measure used by Bunge's management to evaluate segment operating activities. Bunge's management believes total segment EBIT is a useful measure of operating profitability, since the measure allows for an evaluation of the performance of its segments without regard to its financing methods or capital structure. In addition, EBIT is a financial measure that is widely used by analysts and investors in Bunge's industries.

        A reconciliation of total segment EBIT to net income attributable to Bunge follows:

	Year Ended December 31,
(US$ in millions)	2016			2015			2014
Total segment EBIT from continuing operations	$	1,143		$	1,248		$	956
Interest income		51			43			87
Interest expense		(234	)		(258	)		(347	)
Income tax (expense) benefit		(220	)		(296	)		(249	)
Income (loss) from discontinued operations, net of tax		(9	)		35			32
Noncontrolling interests' share of interest and tax		14			19			36
Net income attributable to Bunge	$	745		$	791		$	515

        Net sales by product group to external customers were as follows:

	Year Ended December 31,
(US$ in millions)	2016		2015		2014
Agricultural Commodity Products	$	30,061	$	31,267	$	42,109
Edible Oil Products		6,859		6,698		7,972
Wheat Milling Products		1,079		1,054		1,462
Corn Milling Products		568		555		602
Sugar and Bioenergy Products		3,709		3,495		4,542
Fertilizer Products		403		386		474
Total	$	42,679	$	43,455	$	57,161

        Geographic area information for net sales to external customers, determined based on the location of the subsidiary making the sale, and long-lived assets follows:

	Year Ended December 31,
(US$ in millions)	2016		2015		2014
Net sales to external customers:
Europe	$	14,238	$	14,346	$	18,234
United States		10,239		10,256		12,199
Asia-Pacific		7,843		8,680		10,932
Brazil		6,604		6,117		10,422
Argentina		1,406		1,490		1,857
Canada		1,120		1,245		1,784
Rest of world		1,229		1,321		1,733
Total	$	42,679	$	43,455	$	57,161

	Year Ended December 31,
(US$ in millions)	2016		2015		2014
Long-lived assets(1):
Brazil	$	2,452	$	2,086	$	2,711
United States		1,249		1,130		1,022
Europe		1,107		1,074		1,181
Asia-Pacific		505		558		572
Canada		378		400		347
Argentina		189		204		257
Rest of world		320		377		480
Total	$	6,200	$	5,829	$	6,570

(1) Long-lived assets include property, plant and equipment, net, goodwill and other intangible assets, net, investments in affiliates and non-current assets held for sale.