INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2016

INCOME TAXES

Components of income from continuing operations before income tax

	Year Ended December 31,
(US$ in millions)	2016		2015		2014
United States	$	102	$	207	$	315
Non-United States		894		844		419
Total	$	996	$	1,051	$	734

Components of income tax expense (benefit)

	Year Ended December 31,
(US$ in millions)	2016			2015			2014
Current:
United States	$	(76	)	$	35		$	93
Non-United States		170			245			246
		94			280			339
Deferred:
United States		38			36			20
Non-United States		88			(20	)		(110	)
		126			16			(90	)
Total	$	220		$	296		$	249

Reconciliation of income tax expense (benefit)

	Year Ended December 31,
(US$ in millions)	2016			2015			2014
Income from operations before income tax	$	996		$	1,051		$	734
Income tax rate		35	%		35	%		35	%
Income tax expense at the U.S. Federal tax rate		349			368			257
Adjustments to derive effective tax rate:
Foreign earnings taxed at different statutory rates		(68	)		(16	)		(37	)
Valuation allowances		(44	)		44			112
Fiscal incentives(1)		(34	)		(41	)		(41	)
Foreign exchange on monetary items		5			(5	)		(24	)
Tax rate changes		4			1			4
Non-deductible expenses		3			16			38
Uncertain tax positions		89			(14	)		6
Deferred balance adjustments		—			(8	)		25
Equity distributions		—			(64	)		(32	)
Foreign income taxed in Brazil		—			—			(93	)
Tax credits		(89	)		—			—
Other		5			15			34
Income tax (benefit) expense	$	220		$	296		$	249

(1) Fiscal incentives predominantly relate to investment incentives in Brazil that are exempt from Brazilian income tax.

Components of deferred tax assets and liabilities and related valuation allowances

	December 31,
(US$ in millions)	2016			2015
Deferred income tax assets:(1)
Net operating loss carryforwards	$	944		$	923
Employee benefits		158			89
Tax credit carryforwards		10			8
Inventories		18			—
Intangibles		9			20
Accrued expenses and other		231			378
Total deferred tax assets		1,370			1,418
Less valuation allowances		(839	)		(798	)
Deferred tax assets, net of valuation allowance		531			620
Deferred income tax liabilities:(1)
Property, plant and equipment		200			211
Undistributed earnings of affiliates		13			11
Investments		33			38
Inventories		—			4
Total deferred tax liabilities		246			264
Net deferred tax assets	$	285		$	356

(1) Bunge has changed its presentation of the composition of deferred tax assets and liabilities to a net approach, where a net deferred tax asset or liability is disclosed for each primary component of the deferred tax assets and liabilities. The change in presentation did not impact the consolidated balance sheet presentation of deferred tax assets and liabilities.

Reconciliation of unrecognized tax benefits

(US$ in millions)	2016			2015			2014
Balance at January 1,	$	51		$	72		$	151
Additions based on tax positions related to the current year		9			6			9
Additions based on acquisitions		2			10			—
Additions based on tax positions related to prior years		374			1			16
Reductions for tax positions of prior years		—			(14	)		(12	)
Settlement or clarification from tax authorities		(1	)		(6	)		(79	)
Expiration of statute of limitations		(9	)		(5	)		(1	)
Foreign currency translation		(17	)		(13	)		(12	)
Balance at December 31,	$	409		$	51		$	72

Tax years subject to income tax examination by tax authorities

	Open Tax Years
North America		2009 - 2016
South America		2010 - 2016
Europe		2004 - 2016
Asia-Pacific		2003 - 2016