QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
ý | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | Emerging growth company |
Page | ||||||||
Item 1. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net sales | $ | $ | $ | $ | |||||||||||||||||||
Cost of goods sold | ( | ( | ( | ( | |||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Selling, general and administrative expenses | ( | ( | ( | ( | |||||||||||||||||||
Interest income | |||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | |||||||||||||||||||
Foreign exchange (losses) gains | ( | ( | ( | ( | |||||||||||||||||||
Other income (expense) – net | ( | ||||||||||||||||||||||
Income (loss) from affiliates | |||||||||||||||||||||||
Income (loss) before income tax | |||||||||||||||||||||||
Income tax (expense) benefit | ( | ( | ( | ( | |||||||||||||||||||
Net income (loss) | |||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests | ( | ( | ( | ||||||||||||||||||||
Net income (loss) attributable to Bunge | |||||||||||||||||||||||
Convertible preference share dividends | ( | ( | |||||||||||||||||||||
Net income (loss) available to Bunge common shareholders | $ | $ | $ | $ | |||||||||||||||||||
Earnings per common share—basic (Note 20) | |||||||||||||||||||||||
Net income (loss) attributable to Bunge common shareholders - basic | $ | $ | $ | $ | |||||||||||||||||||
Earnings per common share—diluted (Note 20) | |||||||||||||||||||||||
Net income (loss) attributable to Bunge common shareholders - diluted | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net income (loss) | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Foreign exchange translation adjustment | ( | ( | ( | ( | |||||||||||||||||||
Unrealized gains (losses) on designated hedges, net of tax (expense) benefit of | ( | ( | |||||||||||||||||||||
Pension adjustment, net of tax (expense) benefit of | |||||||||||||||||||||||
Reclassification of net (gains) losses to net income, net of tax expense (benefit) of | ( | ( | |||||||||||||||||||||
Total other comprehensive income (loss) | ( | ( | ( | ( | |||||||||||||||||||
Total comprehensive income (loss) | |||||||||||||||||||||||
Comprehensive (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests | ( | ||||||||||||||||||||||
Comprehensive income (loss) from acquisition of redeemable noncontrolling interest | ( | ( | |||||||||||||||||||||
Total comprehensive income (loss) attributable to Bunge | $ | $ | $ | $ |
September 30, 2022 | December 31, 2021 | |||||||||||||
ASSETS | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Trade accounts receivable (less allowances of $ | ||||||||||||||
Inventories (Note 6) | ||||||||||||||
Assets held for sale (Note 3) | ||||||||||||||
Other current assets (Note 7) | ||||||||||||||
Total current assets | ||||||||||||||
Property, plant and equipment, net | ||||||||||||||
Operating lease assets | ||||||||||||||
Goodwill | ||||||||||||||
Other intangible assets, net | ||||||||||||||
Investments in affiliates | ||||||||||||||
Deferred income taxes | ||||||||||||||
Other non-current assets (Note 8) | ||||||||||||||
Total assets | $ | $ | ||||||||||||
LIABILITIES AND EQUITY | ||||||||||||||
Current liabilities: | ||||||||||||||
Short-term debt (Note 14) | $ | $ | ||||||||||||
Current portion of long-term debt (Note 14) | ||||||||||||||
Trade accounts payable (includes $ | ||||||||||||||
Current operating lease obligations | ||||||||||||||
Liabilities held for sale (Note 3) | ||||||||||||||
Other current liabilities (Note 11) | ||||||||||||||
Total current liabilities | ||||||||||||||
Long-term debt (Note 14) | ||||||||||||||
Deferred income taxes | ||||||||||||||
Non-current operating lease obligations | ||||||||||||||
Other non-current liabilities (Note 17) | ||||||||||||||
Redeemable noncontrolling interest (Note 18) | ||||||||||||||
Equity (Note 19): | ||||||||||||||
Convertible perpetual preference shares, par value $ | ||||||||||||||
Common shares, par value $ | ||||||||||||||
Additional paid-in capital | ||||||||||||||
Retained earnings | ||||||||||||||
Accumulated other comprehensive income (loss) (Note 19) | ( | ( | ||||||||||||
Treasury shares, at cost; 2022 - | ( | ( | ||||||||||||
Total Bunge shareholders’ equity | ||||||||||||||
Noncontrolling interests | ||||||||||||||
Total equity | ||||||||||||||
Total liabilities, redeemable noncontrolling interest and equity | $ | $ |
Nine Months Ended September 30, | ||||||||||||||
2022 | 2021 | |||||||||||||
OPERATING ACTIVITIES | ||||||||||||||
Net income (loss) | $ | $ | ||||||||||||
Adjustments to reconcile net income (loss) to cash provided by (used for) operating activities: | ||||||||||||||
Impairment charges | ||||||||||||||
Foreign exchange (gain) loss on net debt | ( | |||||||||||||
Bad debt expense | ||||||||||||||
Depreciation, depletion and amortization | ||||||||||||||
Share-based compensation expense | ||||||||||||||
Deferred income tax expense (benefit) | ( | ( | ||||||||||||
(Gain) loss on sale of investments and property, plant and equipment | ( | ( | ||||||||||||
Other, net | ( | ( | ||||||||||||
Changes in operating assets and liabilities, excluding the effects of acquisitions and dispositions: | ||||||||||||||
Trade accounts receivable | ( | ( | ||||||||||||
Inventories | ( | ( | ||||||||||||
Trade accounts payable and accrued liabilities | ||||||||||||||
Advances on sales | ( | ( | ||||||||||||
Net unrealized (gains) losses on derivative contracts | ( | |||||||||||||
Margin deposits | ( | |||||||||||||
Recoverable and income taxes, net | ( | |||||||||||||
Marketable securities | ( | |||||||||||||
Beneficial interest in securitized trade receivables | ( | ( | ||||||||||||
Other, net | ( | ( | ||||||||||||
Cash provided by (used for) operating activities | ( | ( | ||||||||||||
INVESTING ACTIVITIES | ||||||||||||||
Payments made for capital expenditures | ( | ( | ||||||||||||
Proceeds from investments | ||||||||||||||
Payments for investments | ( | ( | ||||||||||||
Settlements of net investment hedges | ( | ( | ||||||||||||
Proceeds from beneficial interest in securitized trade receivables | ||||||||||||||
Payments for beneficial interest in securitized trade receivables | ( | |||||||||||||
Proceeds from disposals of businesses and property, plant and equipment | ||||||||||||||
Proceeds from sale of investments in affiliates | ||||||||||||||
Payments for investments in affiliates | ( | ( | ||||||||||||
Other, net | ||||||||||||||
Cash provided by (used for) investing activities | ||||||||||||||
FINANCING ACTIVITIES | ||||||||||||||
Proceeds from short-term debt | ||||||||||||||
Repayments of short-term debt | ( | ( | ||||||||||||
Proceeds from long-term debt | ||||||||||||||
Repayments of long-term debt | ( | |||||||||||||
Proceeds from the exercise of options for common shares | ||||||||||||||
Repurchases of common shares | ( | ( | ||||||||||||
Dividends paid to common and preference shareholders | ( | ( | ||||||||||||
Dividends paid to noncontrolling interest | ( | |||||||||||||
Sale of noncontrolling interest | ||||||||||||||
Acquisition of redeemable noncontrolling interest and noncontrolling interest | ( | ( | ||||||||||||
Other, net | ( | |||||||||||||
Cash provided by (used for) financing activities | ( | ( | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents, restricted cash, and cash held for sale | ( | |||||||||||||
Net increase (decrease) in cash and cash equivalents, restricted cash, and cash held for sale | ||||||||||||||
Cash and cash equivalents, restricted cash, and cash held for sale - beginning of period | ||||||||||||||
Cash and cash equivalents, restricted cash, and cash held for sale - end of period | $ | $ |
Convertible Preference Shares | Common Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable Non- Controlling Interests | Shares | Amount | Shares | Amount | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Shares | Non- Controlling Interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, July 1, 2022 | $ | $ | $ | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | — | ( | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends on common shares, $ | — | — | — | — | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition of redeemable noncontrolling interest (Note 18) | ( | — | — | — | — | — | ( | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common shares | — | — | — | ( | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common shares, including stock dividends | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2022 | $ | $ | $ | $ | $ | $ | ( | $ | ( | $ | $ |
Convertible Preference Shares | Common Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable Non- Controlling Interests | Shares | Amount | Shares | Amount | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Shares | Non- Controlling Interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, July 1, 2021 | $ | $ | $ | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | ( | — | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends on common shares, $ | — | — | — | — | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends on preference shares, $ | — | — | — | — | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends to noncontrolling interests on subsidiary common stock | ( | — | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital contribution (return) from (to) noncontrolling interest | — | — | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common shares | — | — | — | ( | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common shares, including stock dividends | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2021 | $ | $ | $ | $ | $ | $ | ( | $ | ( | $ | $ |
Convertible Preference Shares | Common Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable Non- Controlling Interests | Shares | Amount | Shares | Amount | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Shares | Non- Controlling Interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2022 | $ | $ | $ | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | ( | — | — | — | — | — | — | ( | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends on common shares, $ | — | — | — | — | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends to noncontrolling interests on subsidiary common stock | — | — | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sale of noncontrolling interest | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition of redeemable noncontrolling interest (Note 18) | ( | — | — | — | — | — | ( | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common shares | — | — | — | ( | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of preference shares to common shares | — | ( | ( | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common shares, including stock dividends | — | — | — | — | ( | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2022 | $ | $ | $ | $ | $ | $ | ( | $ | ( | $ | $ |
Convertible Preference Shares | Common Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable Non- Controlling Interests | Shares | Amount | Shares | Amount | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Shares | Non- Controlling Interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2021 | $ | $ | $ | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | ( | — | — | — | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends on common shares, $ | — | — | — | — | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends on preference shares, $ | — | — | — | — | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends to noncontrolling interests on subsidiary common stock | ( | — | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital contribution (return) from (to) noncontrolling interest | — | — | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition of noncontrolling interest | — | — | — | — | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposition of noncontrolling interest in a subsidiary | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common shares | — | — | — | ( | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common shares, including stock dividends | — | — | — | — | ( | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2021 | $ | $ | $ | $ | $ | $ | ( | $ | ( | $ | $ |
(US$ in millions) | September 30, 2022 | September 30, 2021 | ||||||
Cash and cash equivalents | $ | $ | ||||||
Restricted cash included in Other current assets | ||||||||
Cash and cash equivalents in Assets held for sale | ||||||||
Total | $ | $ |
(US$ in millions) | September 30, 2022 | ||||
Current assets: | |||||
Cash and cash equivalents | $ | ||||
Trade accounts receivable (less allowances of | |||||
Inventories | |||||
Other current assets | |||||
Total current assets | |||||
Property, plant and equipment, net | |||||
Other non-current assets | |||||
Total assets | $ | ||||
Current liabilities: | |||||
Trade accounts payable and accrued liabilities | $ | ||||
Short-term debt | |||||
Other current liabilities | |||||
Total current liabilities | |||||
Non-current liabilities | |||||
Total liabilities | $ |
(US$ in millions) | September 30, 2022 | ||||
Cash and cash equivalents | $ | ||||
Trade accounts receivable (less allowances of | |||||
Inventories | |||||
Other current assets | |||||
Property, plant and equipment, net | |||||
Goodwill & Other intangible assets, net | |||||
Other non-current assets | |||||
Impairment reserve | ( | ||||
Assets held for sale | $ | ||||
Trade accounts payable and accrued liabilities | $ | ||||
Other current liabilities | |||||
Total liabilities held for sale | $ |
(US$ in millions) | |||||
Trade accounts receivable | $ | ||||
Inventories | |||||
Other current assets | |||||
Property, plant and equipment, net | |||||
Operating lease assets | |||||
Goodwill & Other intangible assets, net | |||||
Impairment reserve | ( | ||||
Total assets | $ | ||||
Trade accounts payable | $ | ||||
Current operating lease obligations | |||||
Other current liabilities | |||||
Total liabilities | $ |
Nine Months Ended September 30, 2022 | |||||||||||
Rollforward of the Allowance for Credit Losses (US$ in millions) | Short-term | Long-term (1) | Total | ||||||||
Allowance as of January 1, 2022 | $ | $ | $ | ||||||||
Current period provisions | |||||||||||
Recoveries | ( | ( | ( | ||||||||
Write-offs charged against the allowance | ( | ( | ( | ||||||||
Foreign exchange translation differences | ( | ( | |||||||||
Allowance as of September 30, 2022 | $ | $ | $ |
Nine Months Ended September 30, 2021 | |||||||||||
Rollforward of the Allowance for Credit Losses (US$ in millions) | Short-term | Long-term (1) | Total | ||||||||
Allowance as of January 1, 2021 | $ | $ | $ | ||||||||
Current period provisions | |||||||||||
Recoveries | ( | ( | ( | ||||||||
Write-offs charged against the allowance | ( | ( | |||||||||
Foreign exchange translation differences | ( | ( | ( | ||||||||
Allowance as of September 30, 2021 | $ | $ | $ |
(US$ in millions) | September 30, 2022 | December 31, 2021 | ||||||
Receivables sold that were derecognized from Bunge's condensed consolidated balance sheet | $ | $ | ||||||
Deferred purchase price included in Other current assets (1) | $ | $ |
Nine Months Ended September 30, | ||||||||
(US$ in millions) | 2022 | 2021 | ||||||
Gross receivables sold | $ | $ | ||||||
Proceeds received in cash related to transfers of receivables | $ | $ | ||||||
Cash collections from customers on receivables previously sold | $ | $ | ||||||
Discounts related to gross receivables sold included in Selling, general and administrative expense | $ | $ |
(US$ in millions) | September 30, 2022 | December 31, 2021 | ||||||
Agribusiness (1) | $ | $ | ||||||
Refined and Specialty Oils (2) | ||||||||
Milling (3) | ||||||||
Corporate and Other | ||||||||
Total | $ | $ |
(US$ in millions) | September 30, 2022 | December 31, 2021 | ||||||
Unrealized gains on derivative contracts, at fair value | $ | $ | ||||||
Prepaid commodity purchase contracts (1) | ||||||||
Secured advances to suppliers, net (2) | ||||||||
Recoverable taxes, net | ||||||||
Margin deposits | ||||||||
Deferred purchase price receivable(3) | ||||||||
Marketable securities and other short-term investments(4) | ||||||||
Income taxes receivable | ||||||||
Prepaid expenses | ||||||||
Restricted cash | ||||||||
Other | ||||||||
Total | $ | $ |
(US$ in millions) | September 30, 2022 | December 31, 2021 | ||||||
Foreign government securities | $ | $ | ||||||
Corporate debt securities | ||||||||
Equity securities | ||||||||
Other | ||||||||
Total | $ | $ |
(US$ in millions) | September 30, 2022 | December 31, 2021 | ||||||
Recoverable taxes, net (1) | $ | $ | ||||||
Judicial deposits (1) | ||||||||
Other long-term receivables, net | ||||||||
Income taxes receivable | ||||||||
Long-term investments (2) | ||||||||
Affiliate loans receivable | ||||||||
Long-term receivables from farmers in Brazil, net (1) | ||||||||
Unrealized gains on derivative contracts, at fair value | ||||||||
Other | ||||||||
Total | $ | $ |
September 30, 2022 | December 31, 2021 | ||||||||||||||||
(US$ in millions) | Recorded Investment | Allowance | Recorded Investment | Allowance | |||||||||||||
For which an allowance has been provided: | |||||||||||||||||
Legal collection process (1) | $ | $ | $ | $ | |||||||||||||
Renegotiated amounts | |||||||||||||||||
For which no allowance has been provided: | |||||||||||||||||
Legal collection process (1) | — | — | |||||||||||||||
Renegotiated amounts (2) | — | — | |||||||||||||||
Other long-term receivables (3) | — | — | |||||||||||||||
Total | $ | $ | $ | $ |
Nine Months Ended September 30, | ||||||||
(US$ in millions) | 2022 | 2021 | ||||||
Allowance as of January 1 | $ | $ | ||||||
Bad debt provisions | ||||||||
Recoveries | ( | ( | ||||||
Write-offs | ( | ( | ||||||
Transfers | ( | |||||||
Foreign exchange translation | ( | |||||||
Allowance as of September 30 | $ | $ |
(US$ in millions) | September 30, 2022 | ||||
Current assets: | |||||
Cash and cash equivalents | $ | ||||
Trade accounts receivable | |||||
Inventories | |||||
Other current assets | |||||
Total current assets | |||||
Property, plant and equipment, net | |||||
Total assets | $ | ||||
Current liabilities: | |||||
Trade accounts payable and accrued liabilities | $ | ||||
Other current liabilities | |||||
Total current liabilities | |||||
Total liabilities | $ |
(US$ in millions) | September 30, 2022 | December 31, 2021 | ||||||
Unrealized losses on derivative contracts, at fair value | $ | $ | ||||||
Accrued liabilities | ||||||||
Advances on sales (1) | ||||||||
Income tax payable | ||||||||
Other | ||||||||
Total | $ | $ |
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). Readily marketable inventories. Over-the-counter ("OTC") commodity purchase and sales contracts. OTC derivatives whose value is determined using pricing models with inputs that are generally based on exchange traded prices, adjusted for location specific inputs that are primarily observable in the market or can be derived principally from or corroborated by observable market data. Marketable securities in less active markets. | ||||||
Level 3 | Unobservable inputs that are supported by little or no market activity and that are a significant component of the fair value of the assets or liabilities. | Assets and liabilities whose value is determined using proprietary pricing models, discounted cash flow methodologies or similar techniques. Assets and liabilities for which the determination of fair value requires significant management judgment or estimation. |
Fair Value Measurements at Reporting Date | |||||||||||||||||||||||||||||
September 30, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||
(US$ in millions) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Readily marketable inventories (Note 6) | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
Trade accounts receivable (1) | |||||||||||||||||||||||||||||
Unrealized gain on derivative contracts (2): | |||||||||||||||||||||||||||||
Interest rate | |||||||||||||||||||||||||||||
Foreign exchange | |||||||||||||||||||||||||||||
Commodities | |||||||||||||||||||||||||||||
Freight | |||||||||||||||||||||||||||||
Energy | |||||||||||||||||||||||||||||
Credit | |||||||||||||||||||||||||||||
Equity | |||||||||||||||||||||||||||||
Other (3) | |||||||||||||||||||||||||||||
Total assets | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||
Trade accounts payable (1) | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
Unrealized loss on derivative contracts (4): | |||||||||||||||||||||||||||||
Interest rate | |||||||||||||||||||||||||||||
Foreign exchange | |||||||||||||||||||||||||||||
Commodities | |||||||||||||||||||||||||||||
Freight | |||||||||||||||||||||||||||||
Energy | |||||||||||||||||||||||||||||
Credit | |||||||||||||||||||||||||||||
Total liabilities | $ | $ | $ | $ | $ | $ | $ | $ |
Three Months Ended September 30, 2022 | |||||||||||||||||
(US$ in millions) | Readily Marketable Inventories | Derivatives, Net | Trade Accounts Payable | Other(2) | Total | ||||||||||||
Balance, July 1, 2022 | $ | $ | $ | ( | $ | $ | |||||||||||
Total gains and losses (realized/unrealized) included in cost of goods sold (1) | |||||||||||||||||
Total gains and losses (realized/unrealized) included in Foreign exchange (losses) gains | ( | ( | |||||||||||||||
Total gains and losses (realized/unrealized) included in Other income (expense) - net | ( | ( | |||||||||||||||
Purchases | ( | ||||||||||||||||
Sales | ( | ( | |||||||||||||||
Issuances | |||||||||||||||||
Settlements | ( | ||||||||||||||||
Transfers into Level 3 | ( | ( | |||||||||||||||
Transfers out of Level 3 | ( | ( | ( | ||||||||||||||
Translation adjustment | ( | ( | |||||||||||||||
Balance, September 30, 2022 | $ | $ | $ | ( | $ | $ |
Three Months Ended September 30, 2021 | ||||||||||||||
(US$ in millions) | Readily Marketable Inventories | Derivatives, Net | Trade Accounts Payable | Total | ||||||||||
Balance, July 1, 2021 | $ | $ | ( | $ | ( | $ | ||||||||
Total gains and losses (realized/unrealized) included in cost of goods sold (1) | ||||||||||||||
Purchases | ( | |||||||||||||
Sales | ( | ( | ||||||||||||
Issuances | ||||||||||||||
Settlements | ||||||||||||||
Transfers into Level 3 | ( | |||||||||||||
Transfers out of Level 3 | ( | ( | ( | |||||||||||
Balance, September 30, 2021 | $ | $ | ( | $ | ( | $ |
Nine Months Ended September 30, 2022 | |||||||||||||||||
(US$ in millions) | Readily Marketable Inventories | Derivatives, Net | Trade Accounts Payable | Other(2) | Total | ||||||||||||
Balance, January 1, 2022 | $ | $ | ( | $ | ( | $ | $ | ||||||||||
Total gains and losses (realized/unrealized) included in cost of goods sold (1) | |||||||||||||||||
Total gains and losses (realized/unrealized) included in Foreign exchange (losses) gains | ( | ( | |||||||||||||||
Total gains and losses (realized/unrealized) included in Other income (expense) - net | ( | ( | |||||||||||||||
Purchases | ( | ||||||||||||||||
Sales | ( | ( | |||||||||||||||
Issuances | |||||||||||||||||
Settlements | ( | ||||||||||||||||
Transfers into Level 3 | ( | ||||||||||||||||
Transfers out of Level 3 | ( | ( | ( | ||||||||||||||
Translation adjustment | ( | ( | |||||||||||||||
Balance, September 30, 2022 | $ | $ | $ | ( | $ | $ |
Nine Months Ended September 30, 2021 | ||||||||||||||
(US$ in millions) | Readily Marketable Inventories | Derivatives, Net | Trade Accounts Payable | Total | ||||||||||
Balance, January 1, 2021 | $ | $ | ( | $ | ( | $ | ||||||||
Total gains and losses (realized/unrealized) included in cost of goods sold (1) | ||||||||||||||
Purchases | ( | |||||||||||||
Sales | ( | ( | ||||||||||||
Issuances | ( | ( | ||||||||||||
Settlements | ( | |||||||||||||
Transfers into Level 3 | ( | ( | ||||||||||||
Transfers out of Level 3 | ( | ( | ||||||||||||
Balance, September 30, 2021 | $ | $ | ( | $ | ( | $ |
(US$ in millions) | September 30, 2022 | December 31, 2021 | Unit of Measure | |||||||||||
Hedging instrument type: | ||||||||||||||
Fair value hedges of interest rate risk | ||||||||||||||
Interest rate swap | $ | $ | $ Notional | |||||||||||
Cumulative adjustment to long-term debt from application of hedge accounting | $ | ( | $ | $ Notional | ||||||||||
Carrying value of hedged debt | $ | $ | $ Notional | |||||||||||
Fair value hedges of currency risk | ||||||||||||||
Cross currency swap | $ | $ | $ Notional | |||||||||||
Carrying value of hedged debt | $ | $ | $ Notional | |||||||||||
Cash flow hedges of currency risk | ||||||||||||||
Foreign currency forward | $ | $ | $ Notional | |||||||||||
Foreign currency option | $ | $ | $ Notional | |||||||||||
Net investment hedges | ||||||||||||||
Foreign currency forward | $ | $ | $ Notional | |||||||||||
September 30, | December 31, | ||||||||||||||||
2022 | 2021 | Unit of Measure | |||||||||||||||
(US$ in millions) | Long | (Short) | Long | (Short) | |||||||||||||
Interest rate | |||||||||||||||||
Swaps | $ | $ | ( | $ | $ | ( | $ Notional | ||||||||||
Futures | $ | $ | ( | $ | $ | $ Notional | |||||||||||
Currency | |||||||||||||||||
Forwards | $ | $ | ( | $ | $ | ( | $ Notional | ||||||||||
Swaps | $ | $ | ( | $ | $ | ( | $ Notional | ||||||||||
Futures | $ | $ | $ | $ | ( | $ Notional | |||||||||||
Options | $ | $ | ( | $ | $ | ( | Delta | ||||||||||
Agricultural commodities | |||||||||||||||||
Forwards | ( | ( | Metric Tons | ||||||||||||||
Swaps | ( | ( | Metric Tons | ||||||||||||||
Futures | ( | ( | Metric Tons | ||||||||||||||
Options | ( | ( | Metric Tons | ||||||||||||||
Ocean freight | |||||||||||||||||
FFA | ( | ( | Hire Days | ||||||||||||||
FFA options | Hire Days | ||||||||||||||||
Natural gas | |||||||||||||||||
Swaps | MMBtus | ||||||||||||||||
Futures | ( | MMBtus | |||||||||||||||
Energy - other | |||||||||||||||||
Swaps | ( | ( | Metric Tons | ||||||||||||||
Electricity | |||||||||||||||||
Swaps | ( | ( | Mwh | ||||||||||||||
Energy - CO2 | |||||||||||||||||
Futures | Metric Tons | ||||||||||||||||
Other | |||||||||||||||||
Swaps and futures | $ | $ | ( | $ | $ | ( | $ Notional |
Gain (Loss) Recognized in Income on Derivative Instruments | |||||||||||
Three Months Ended September 30, | |||||||||||
(US$ in millions) | 2022 | 2021 | |||||||||
Income statement classification | Type of derivative | ||||||||||
Net sales | |||||||||||
Hedge accounting | Foreign currency | $ | $ | ||||||||
Cost of goods sold | |||||||||||
Hedge accounting | Foreign currency | $ | $ | ||||||||
Economic hedges | Foreign currency | $ | $ | ( | |||||||
Commodities | $ | ||||||||||
Other (1) | $ | ( | ( | ||||||||
Total Cost of goods sold | $ | $ | ( | ||||||||
Selling, general & administrative | |||||||||||
Hedge Accounting | Foreign exchange | $ | ( | $ | |||||||
Interest expense | |||||||||||
Hedge accounting | Interest rate | $ | ( | $ | |||||||
Foreign exchange gains (losses) | |||||||||||
Hedge accounting | Foreign currency | $ | $ | ( | |||||||
Economic hedges | Foreign currency | ||||||||||
Total Foreign exchange gains (losses) | $ | $ | |||||||||
Other income (expense) | |||||||||||
Economic hedges | Interest Rate | $ | $ | ||||||||
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 | $ | ( | $ | ||||||||
Gains and losses on derivatives used as cash flow hedges of foreign currency risk included in other comprehensive income (loss) during the period | $ | $ | ( | ||||||||
Gains and losses on derivatives used as net investment hedges included in other comprehensive income (loss) during the period | $ | ( | $ | ||||||||
Amounts released from accumulated other comprehensive income (loss) during the period | |||||||||||
Cash flow hedge of foreign currency risk | $ | ( | $ | ( | |||||||
Gain (Loss) Recognized in Income on Derivative Instruments | |||||||||||
Nine months ended September 30, | |||||||||||
(US$ in millions) | 2022 | 2021 | |||||||||
Income statement classification | Type of derivative | ||||||||||
Net sales | |||||||||||
Hedge accounting | Foreign currency | $ | $ | ||||||||
Cost of goods sold | |||||||||||
Hedge accounting | Foreign currency | $ | $ | ||||||||
Economic hedges | Foreign currency | $ | $ | ( | |||||||
Commodities | ( | ( | |||||||||
Other (1) | |||||||||||
Total Cost of goods sold | $ | $ | ( | ||||||||
Selling, general & administrative | |||||||||||
Hedge accounting | Foreign exchange | $ | ( | ||||||||
Interest expense | |||||||||||
Hedge accounting | Interest rate | $ | ( | $ | |||||||
Economic hedges | Interest rate | ||||||||||
Total Interest expense | $ | ( | $ | ||||||||
Foreign exchange gains (losses) | |||||||||||
Hedge accounting | Foreign currency | $ | ( | $ | ( | ||||||
Economic hedges | Foreign currency | ||||||||||
Total Foreign exchange gains (losses) | $ | $ | ( | ||||||||
Other income (expense) | |||||||||||
Economic hedges | Interest rate | $ | $ | ||||||||
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 | $ | $ | ( | ||||||||
Gains and losses on derivatives used as cash flow hedges of foreign currency risk included in other comprehensive income (loss) during the period | $ | $ | ( | ||||||||
Gains and losses on derivatives used as net investment hedges included in other comprehensive income (loss) during the period | $ | ( | $ | ( | |||||||
Amounts released from accumulated other comprehensive income (loss) during the period | |||||||||||
Cash flow hedge of foreign currency risk | $ | ( | $ | ( | |||||||
September 30, 2022 | December 31, 2021 | ||||||||||||||||
(US$ in millions) | Carrying Value | Fair Value (Level 2) | Carrying Value | Fair Value (Level 2) | |||||||||||||
Long-term debt, including current portion | $ | $ | $ | $ |
(US$ in millions) | September 30, 2022 | December 31, 2021 | ||||||
Non-income tax claims | $ | $ | ||||||
Labor claims | ||||||||
Civil and other claims | ||||||||
Total | $ | $ |
(US$ in millions) | Years Examined | September 30, 2022 | December 31, 2021 | ||||||||
ICMS | 1990 to Present | $ | $ | ||||||||
PIS/COFINS | 2002 to Present | $ | $ |
(US$ in millions) | Maximum Potential Future Payments | ||||
Unconsolidated affiliates guarantee (1) | $ | ||||
Residual value guarantee (2) | |||||
Other guarantees | |||||
Total | $ |
(US$ in millions) | September 30, 2022 | December 31, 2021 | ||||||
Labor, legal, and other provisions | $ | $ | ||||||
Pension and post-retirement obligations (1) | ||||||||
Uncertain income tax positions (2) | ||||||||
Unrealized losses on derivative contracts, at fair value (3) | ||||||||
Other | ||||||||
Total | $ | $ |
(US$ in millions) | Foreign Exchange Translation Adjustment | Deferred Gains (Losses) on Hedging Activities | Pension and Other Postretirement Liability Adjustments | Accumulated Other Comprehensive Income (Loss) | ||||||||||
Balance, July 1, 2022 | $ | ( | $ | ( | $ | ( | $ | ( | ||||||
Other comprehensive income (loss) before reclassifications | ( | ( | ||||||||||||
Acquisition of redeemable noncontrolling interest | ( | ( | ||||||||||||
Amount reclassified from accumulated other comprehensive income (loss) | ( | |||||||||||||
Balance, September 30, 2022 | $ | ( | $ | ( | $ | ( | $ | ( |
(US$ in millions) | Foreign Exchange Translation Adjustment | Deferred Gains (Losses) on Hedging Activities | Pension and Other Postretirement Liability Adjustments | Accumulated Other Comprehensive Income (Loss) | ||||||||||
Balance, July 1, 2021 | $ | ( | $ | ( | $ | ( | $ | ( | ||||||
Other comprehensive income (loss) before reclassifications | ( | ( | ||||||||||||
Amount reclassified from accumulated other comprehensive income (loss) | ( | ( | ||||||||||||
Balance, September 30, 2021 | $ | ( | $ | ( | $ | ( | $ | ( |
(US$ in millions) | Foreign Exchange Translation Adjustment | Deferred Gains (Losses) on Hedging Activities | Pension and Other Postretirement Liability Adjustments | Accumulated Other Comprehensive Income (Loss) | ||||||||||
Balance, January 1, 2022 | $ | ( | $ | ( | $ | ( | $ | ( | ||||||
Other comprehensive income (loss) before reclassifications | ( | ( | ( | |||||||||||
Acquisition of redeemable noncontrolling interest | ( | ( | ||||||||||||
Amount reclassified from accumulated other comprehensive income (loss)(1) | ( | ( | ||||||||||||
Balance, September 30, 2022 | $ | ( | $ | ( | $ | ( | $ | ( |
(US$ in millions) | Foreign Exchange Translation Adjustment | Deferred Gains (Losses) on Hedging Activities | Pension and Other Postretirement Liability Adjustments | Accumulated Other Comprehensive Income (Loss) | ||||||||||
Balance, January 1, 2021 | $ | ( | $ | ( | $ | ( | $ | ( | ||||||
Other comprehensive income (loss) before reclassifications | ( | ( | ( | |||||||||||
Amount reclassified from accumulated other comprehensive income (loss) | ( | ( | ||||||||||||
Balance, September 30, 2021 | $ | ( | $ | ( | $ | ( | $ | ( |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
(US$ in millions, except for share data) | 2022 | 2021 | 2022 | 2021 | |||||||||||||
Net income (loss) | $ | $ | $ | $ | |||||||||||||
Net (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests | ( | ( | ( | ||||||||||||||
Net income (loss) attributable to Bunge | $ | $ | $ | $ | |||||||||||||
Convertible preference share dividends (1) | ( | ( | |||||||||||||||
Net income (loss) available to Bunge common shareholders - Basic | $ | $ | $ | $ | |||||||||||||
Add back convertible preference share dividends | |||||||||||||||||
Net income (loss) available to Bunge common shareholders - Diluted | $ | $ | $ | $ | |||||||||||||
Weighted-average number of common shares outstanding: | |||||||||||||||||
Basic | |||||||||||||||||
Effect of dilutive shares: | |||||||||||||||||
—stock options and awards (2) | |||||||||||||||||
—convertible preference shares (1) | |||||||||||||||||
Diluted | |||||||||||||||||
Earnings per common share: | |||||||||||||||||
Net income (loss) attributable to Bunge common shareholders—basic | $ | $ | $ | $ | |||||||||||||
Net income (loss) attributable to Bunge common shareholders—diluted | $ | $ | $ | $ |
Three Months Ended September 30, 2022 | |||||||||||||||||||||||
(US$ in millions) | Agribusiness | Refined and Specialty Oils | Milling | Sugar and Bioenergy | Corporate and Other | Eliminations | Total | ||||||||||||||||
Net sales to external customers | $ | $ | $ | $ | $ | $ | — | $ | |||||||||||||||
Inter–segment revenues | — | ( | — | ||||||||||||||||||||
Cost of goods sold | ( | ( | ( | ( | ( | — | ( | ||||||||||||||||
Gross profit | ( | — | |||||||||||||||||||||
Selling, general and administrative expenses | ( | ( | ( | ( | ( | ||||||||||||||||||
Foreign exchange gains (losses) | ( | ( | ( | ( | |||||||||||||||||||
EBIT attributable to noncontrolling interests (1) | ( | ( | ( | ||||||||||||||||||||
Other income (expense) - net | ( | ||||||||||||||||||||||
Income (loss) from affiliates | |||||||||||||||||||||||
Total Segment EBIT (2) | ( | ||||||||||||||||||||||
Total assets |
Three Months Ended September 30, 2021 | |||||||||||||||||||||||
(US$ in millions) | Agribusiness | Refined and Specialty Oils | Milling | Sugar and Bioenergy | Corporate and Other | Eliminations | Total | ||||||||||||||||
Net sales to external customers | $ | $ | $ | $ | $ | $ | — | $ | |||||||||||||||
Inter–segment revenues | — | ( | — | ||||||||||||||||||||
Cost of goods sold | ( | ( | ( | ( | ( | — | ( | ||||||||||||||||
Gross profit | ( | — | |||||||||||||||||||||
Selling, general and administrative expenses | ( | ( | ( | ( | ( | ||||||||||||||||||
Foreign exchange gains (losses) | ( | ( | ( | ( | ( | ||||||||||||||||||
EBIT attributable to noncontrolling interests (1) | ( | ||||||||||||||||||||||
Other income (expense) - net | ( | ||||||||||||||||||||||
Income (loss) from affiliates | ( | ||||||||||||||||||||||
Total Segment EBIT (2) | ( | ||||||||||||||||||||||
Total assets |
Nine Months Ended September 30, 2022 | |||||||||||||||||||||||
(US$ in millions) | Agribusiness | Refined and Specialty Oils | Milling | Sugar and Bioenergy | Corporate and Other | Eliminations | Total | ||||||||||||||||
Net sales to external customers | $ | $ | $ | $ | $ | $ | — | $ | |||||||||||||||
Inter–segment revenues | — | ( | — | ||||||||||||||||||||
Cost of goods sold | ( | ( | ( | ( | ( | — | ( | ||||||||||||||||
Gross profit | ( | — | |||||||||||||||||||||
Selling, general and administrative expenses | ( | ( | ( | ( | ( | ( | |||||||||||||||||
Foreign exchange gains (losses) | ( | ( | ( | ( | |||||||||||||||||||
EBIT attributable to noncontrolling interests (1) | ( | ( | ( | ( | ( | ||||||||||||||||||
Other income (expense) - net | ( | ( | ( | ||||||||||||||||||||
Income (loss) from affiliates | ( | ( | |||||||||||||||||||||
Total Segment EBIT (2) | ( | ||||||||||||||||||||||
Total assets |
Nine Months Ended September 30, 2021 | |||||||||||||||||||||||
(US$ in millions) | Agribusiness | Refined and Specialty Oils | Milling | Sugar and Bioenergy | Corporate and Other | Eliminations | Total | ||||||||||||||||
Net sales to external customers | $ | $ | $ | $ | $ | $ | — | $ | |||||||||||||||
Inter–segment revenues | — | ( | — | ||||||||||||||||||||
Cost of goods sold | ( | ( | ( | ( | ( | — | ( | ||||||||||||||||
Gross profit | ( | — | |||||||||||||||||||||
Selling, general and administrative expenses | ( | ( | ( | ( | ( | ( | |||||||||||||||||
Foreign exchange gains (losses) | ( | ( | ( | ( | |||||||||||||||||||
EBIT attributable to noncontrolling interests (1) | ( | ( | ( | ( | |||||||||||||||||||
Other income (expense) - net | |||||||||||||||||||||||
Income (loss) from affiliates | |||||||||||||||||||||||
Total Segment EBIT (2) | ( | ||||||||||||||||||||||
Total assets |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(US$ in millions) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Net income (loss) attributable to Bunge | $ | $ | $ | $ | |||||||||||||||||||
Interest income | ( | ( | ( | ( | |||||||||||||||||||
Interest expense | |||||||||||||||||||||||
Income tax expense (benefit) | |||||||||||||||||||||||
Noncontrolling interests' share of interest and tax | ( | ( | |||||||||||||||||||||
Total Segment EBIT from continuing operations | $ | $ | $ | $ |
Three Months Ended September 30, 2022 | ||||||||||||||||||||
(US$ in millions) | Agribusiness | Refined and Specialty Oils | Milling | Sugar and Bioenergy | Corporate and Other | Total | ||||||||||||||
Sales from other arrangements | $ | $ | $ | $ | $ | $ | ||||||||||||||
Sales from contracts with customers | ||||||||||||||||||||
Net sales to external customers | $ | $ | $ | $ | $ | $ |
Three Months Ended September 30, 2021 | ||||||||||||||||||||
(US$ in millions) | Agribusiness | Refined and Specialty Oils | Milling | Sugar and Bioenergy | Corporate and Other | Total | ||||||||||||||
Sales from other arrangements | $ | $ | $ | $ | $ | $ | ||||||||||||||
Sales from contracts with customers | ||||||||||||||||||||
Net sales to external customers | $ | $ | $ | $ | $ | $ |
Nine Months Ended September 30, 2022 | ||||||||||||||||||||
(US$ in millions) | Agribusiness | Refined and Specialty Oils | Milling | Sugar and Bioenergy | Corporate and Other | Total | ||||||||||||||
Sales from other arrangements | $ | $ | $ | $ | $ | $ | ||||||||||||||
Sales from contracts with customers | ||||||||||||||||||||
Net sales to external customers | $ | $ | $ | $ | $ | $ |
Nine Months Ended September 30, 2021 | ||||||||||||||||||||
(US$ in millions) | Agribusiness | Refined and Specialty Oils | Milling | Sugar and Bioenergy | Corporate and Other | Total | ||||||||||||||
Sales from other arrangements | $ | $ | $ | $ | $ | $ | ||||||||||||||
Sales from contracts with customers | ||||||||||||||||||||
Net sales to external customers | $ | $ | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(US$ in millions) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Net income (loss) attributable to Bunge | $ | 380 | $ | 653 | $ | 1,274 | $ | 1,847 | |||||||||||||||
Interest income | (30) | (19) | (50) | (34) | |||||||||||||||||||
Interest expense | 103 | 57 | 306 | 184 | |||||||||||||||||||
Income tax expense (benefit) | 113 | 92 | 257 | 334 | |||||||||||||||||||
Noncontrolling interests' share of interest and tax | 2 | 1 | (3) | (2) | |||||||||||||||||||
Total Segment EBIT | $ | 568 | $ | 784 | $ | 1,784 | $ | 2,329 | |||||||||||||||
Agribusiness Segment EBIT | 481 | 639 | 1,274 | 1,838 | |||||||||||||||||||
Refined and Specialty Oils Segment EBIT | 128 | 130 | 519 | 541 | |||||||||||||||||||
Milling Segment EBIT | 19 | 43 | 166 | 85 | |||||||||||||||||||
Core Segment EBIT | 628 | 812 | 1,959 | 2,464 | |||||||||||||||||||
Corporate and Other EBIT | (84) | (81) | (238) | (227) | |||||||||||||||||||
Sugar and Bioenergy Segment EBIT | 24 | 53 | 63 | 92 | |||||||||||||||||||
Non Core Segment EBIT | 24 | 53 | 63 | 92 | |||||||||||||||||||
Total Segment EBIT | $ | 568 | $ | 784 | $ | 1,784 | $ | 2,329 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(US$ in millions, except volumes) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Volumes (in thousand metric tons) | 19,622 | 19,534 | 59,182 | 62,827 | |||||||||||||||||||
Net sales | $ | 11,741 | $ | 9,868 | $ | 35,719 | $ | 31,312 | |||||||||||||||
Cost of goods sold | (11,109) | (9,277) | (33,907) | (29,425) | |||||||||||||||||||
Gross profit | 632 | 591 | 1,812 | 1,887 | |||||||||||||||||||
Selling, general and administrative expense | (135) | (118) | (375) | (313) | |||||||||||||||||||
Foreign exchange gains (losses) | (35) | (30) | (119) | (1) | |||||||||||||||||||
EBIT attributable to noncontrolling interests | 3 | 5 | (14) | (6) | |||||||||||||||||||
Other income (expense) – net | 6 | 181 | (71) | 227 | |||||||||||||||||||
Income (loss) from affiliates | 10 | 10 | 41 | 44 | |||||||||||||||||||
Total Agribusiness Segment EBIT | $ | 481 | $ | 639 | $ | 1,274 | $ | 1,838 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(US$ in millions, except volumes) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Volumes (in thousand metric tons) | 2,316 | 2,383 | 6,941 | 6,802 | |||||||||||||||||||
Net sales | $ | 4,302 | $ | 3,648 | $ | 12,723 | $ | 9,572 | |||||||||||||||
Cost of goods sold | (4,070) | (3,430) | (11,904) | (8,924) | |||||||||||||||||||
Gross profit | 232 | 218 | 819 | 648 | |||||||||||||||||||
Selling, general and administrative expense | (86) | (83) | (262) | (259) | |||||||||||||||||||
Foreign exchange gains (losses) | (6) | (1) | (14) | 1 | |||||||||||||||||||
EBIT attributable to noncontrolling interests | (3) | (2) | (7) | (85) | |||||||||||||||||||
Other income (expense) – net | (9) | (2) | (17) | 236 | |||||||||||||||||||
Income (loss) from affiliates | — | — | — | — | |||||||||||||||||||
Total Refined and Specialty Oils Segment EBIT | $ | 128 | $ | 130 | $ | 519 | $ | 541 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
(US$ in millions, except volumes) | 2022 | 2021 | 2022 | 2021 | |||||||||||||
Volumes (in thousand metric tons) | 1,234 | 1,190 | 3,537 | 3,351 | |||||||||||||
Net sales | $ | 631 | $ | 530 | $ | 1,911 | $ | 1,392 | |||||||||
Cost of goods sold | (586) | (460) | (1,669) | (1,231) | |||||||||||||
Gross profit | 45 | 70 | 242 | 161 | |||||||||||||
Selling, general and administrative expense | (26) | (25) | (78) | (73) | |||||||||||||
Foreign exchange gains (losses) | — | (2) | 2 | (2) | |||||||||||||
EBIT attributable to noncontrolling interests | (1) | — | (1) | (1) | |||||||||||||
Other income (expense) – net | 1 | — | 2 | — | |||||||||||||
Income (loss) from affiliates | — | — | (1) | — | |||||||||||||
Total Milling Segment EBIT | $ | 19 | $ | 43 | $ | 166 | $ | 85 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(US$ in millions, except volumes) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Net sales | $ | 11 | $ | 2 | $ | 24 | $ | 3 | |||||||||||||||
Cost of goods sold | (34) | (21) | (39) | (28) | |||||||||||||||||||
Gross profit | (23) | (19) | (15) | (25) | |||||||||||||||||||
Selling, general and administrative expense | (90) | (101) | (263) | (250) | |||||||||||||||||||
Foreign exchange gains (losses) | (11) | (3) | (19) | (9) | |||||||||||||||||||
EBIT attributable to noncontrolling interests | — | 2 | (11) | 2 | |||||||||||||||||||
Other income (expense) – net | 40 | 41 | 71 | 55 | |||||||||||||||||||
Income (loss) from affiliates | — | (1) | (1) | — | |||||||||||||||||||
Total Corporate and Other EBIT | $ | (84) | $ | (81) | $ | (238) | $ | (227) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(US$ in millions, except volumes) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Net sales | $ | 74 | $ | 69 | $ | 195 | $ | 190 | |||||||||||||||
Cost of goods sold | (72) | (67) | (189) | (187) | |||||||||||||||||||
Gross profit | 2 | 2 | 6 | 3 | |||||||||||||||||||
Selling, general and administrative expense | — | — | (1) | (1) | |||||||||||||||||||
Foreign exchange gains (losses) | — | — | — | — | |||||||||||||||||||
EBIT attributable to noncontrolling interests | — | — | — | — | |||||||||||||||||||
Other income (expense) – net | 2 | — | 2 | 1 | |||||||||||||||||||
Income (loss) from affiliates | 20 | 51 | 56 | 89 | |||||||||||||||||||
Total Sugar and Bioenergy Segment EBIT | $ | 24 | $ | 53 | $ | 63 | $ | 92 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(US$ in millions) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Interest income | $ | 30 | $ | 19 | $ | 50 | $ | 34 | |||||||||||||||
Interest expense | (103) | (57) | (306) | (184) |
As of | |||||||||||||||||
US$ in millions, except current ratio | September 30, 2022 | September 30, 2021 | December 31, 2021 | ||||||||||||||
Cash and cash equivalents | $ | 956 | $ | 1,033 | $ | 902 | |||||||||||
Trade accounts receivable, net | 2,336 | 2,431 | 2,112 | ||||||||||||||
Inventories | 8,112 | 8,014 | 8,431 | ||||||||||||||
Other current assets(1) | 5,791 | 5,056 | 5,015 | ||||||||||||||
Total current assets | $ | 17,195 | $ | 16,534 | $ | 16,460 | |||||||||||
Short-term debt | $ | 1,327 | $ | 1,151 | $ | 673 | |||||||||||
Current portion of long-term debt | 773 | 510 | 504 | ||||||||||||||
Trade accounts payable | 4,455 | 3,944 | 4,250 | ||||||||||||||
Current operating lease obligations | 436 | 332 | 350 | ||||||||||||||
Other current liabilities(2) | 3,576 | 3,822 | 3,547 | ||||||||||||||
Total current liabilities | $ | 10,567 | $ | 9,759 | $ | 9,324 | |||||||||||
Working capital(3) | $ | 6,628 | $ | 6,775 | $ | 7,136 | |||||||||||
Current ratio(4) | 1.63 | 1.69 | 1.77 |
(US$ in millions) | Total Committed Capacity | Borrowings Outstanding | ||||||||||||||||||||||||
Commercial Paper Program and Revolving Credit Facilities(1) | Maturities | September 30, 2022 | September 30, 2022 | December 31, 2021 | ||||||||||||||||||||||
Commercial paper | 2026 | $ | 600 | $ | 215 | $ | — | |||||||||||||||||||
Revolving credit facilities | ||||||||||||||||||||||||||
$1.1 Billion 364-day Revolving Credit Agreement(2) | 2023 | 1,100 | — | — | ||||||||||||||||||||||
$1.75 Billion 2024 Revolving Credit Facility | 2024 | 1,750 | — | — | ||||||||||||||||||||||
$1.35 Billion 5-year Revolving Credit Agreement | 2026 | 1,350 | — | — | ||||||||||||||||||||||
$865 Million 2026 Revolving Credit Facility | 2026 | 865 | — | — | ||||||||||||||||||||||
Total revolving credit facilities | $ | 5,065 | $ | — | $ | — | ||||||||||||||||||||
Total(3) | $ | 5,665 | $ | 215 | $ | — |
(US$ in millions) | Outstanding Balance at September 30, 2022 | Weighted Average Interest Rate at September 30, 2022 | Highest Balance Outstanding During Quarter Ended September 30, 2022 | Average Balance During Quarter Ended September 30, 2022 | Weighted Average Interest Rate During Quarter Ended September 30, 2022 | |||||||||||||||||||||||||||
Bank borrowings (1) | $ | 1,112 | 10.15 | % | $ | 2,154 | $ | 1,477 | 12.63 | % | ||||||||||||||||||||||
Commercial paper | 215 | 3.20 | % | 215 | 69 | 3.04 | % | |||||||||||||||||||||||||
Total | $ | 1,327 | $ | 2,369 | $ | 1,546 |
(US$ in millions) | September 30, 2022 | December 31, 2021 | ||||||||||||
Short-term debt: (1) | ||||||||||||||
Short-term debt | $ | 1,327 | $ | 673 | ||||||||||
Current portion of long-term debt | 773 | 504 | ||||||||||||
Total short-term debt | 2,100 | 1,177 | ||||||||||||
Long-term debt: | ||||||||||||||
Term loan due 2024 - three-month TONAR plus 0.75% (Tranche A)(2) | 213 | 267 | ||||||||||||
Term loan due 2024 - three-month LIBOR plus 1.30% (Tranche B) | 90 | 89 | ||||||||||||
3.00% Senior Notes due 2022(4) | — | 399 | ||||||||||||
1.85% Senior Notes due 2023 - Euro | 780 | 906 | ||||||||||||
4.35% Senior Notes due 2024(3) | — | 598 | ||||||||||||
1.63% Senior Notes due 2025 | 597 | 596 | ||||||||||||
3.25% Senior Notes due 2026 | 697 | 697 | ||||||||||||
3.75% Senior Notes due 2027 | 597 | 596 | ||||||||||||
2.75% Senior Notes due 2031 | 990 | 989 | ||||||||||||
Other | (194) | 154 | ||||||||||||
Subtotal | 3,770 | 5,291 | ||||||||||||
Less: Current portion of long-term debt | (773) | (504) | ||||||||||||
Total long-term debt(5) | 2,997 | 4,787 | ||||||||||||
Total debt | $ | 5,097 | $ | 5,964 |
Short-term Debt (1) | Long-term Debt | Outlook | ||||||||||||||||||
Standard & Poor’s | A-1 | BBB | Positive | |||||||||||||||||
Moody’s | P-1 | Baa2 | Stable | |||||||||||||||||
Fitch | BBB | Stable |
(US$ in millions) | September 30, 2022 | December 31, 2021 | ||||||||||||
Equity: | ||||||||||||||
Convertible perpetual preference shares | $ | — | $ | 690 | ||||||||||
Common shares | 1 | 1 | ||||||||||||
Additional paid-in capital | 6,655 | 5,590 | ||||||||||||
Retained earnings | 9,980 | 8,979 | ||||||||||||
Accumulated other comprehensive income (loss) | (6,611) | (6,471) | ||||||||||||
Treasury shares, at cost; 2022 - 18,835,812 shares, and 2021 - 16,726,697 shares | (1,320) | (1,120) | ||||||||||||
Total Bunge shareholders’ equity | 8,705 | 7,669 | ||||||||||||
Noncontrolling interest | 666 | 156 | ||||||||||||
Total equity | $ | 9,371 | $ | 7,825 |
Nine Months Ended September 30, | ||||||||||||||
US$ in millions | 2022 | 2021 | ||||||||||||
Cash provided by (used for) operating activities | $ | (5,031) | $ | (1,642) | ||||||||||
Cash provided by (used for) investing activities | 5,113 | 3,562 | ||||||||||||
Cash provided by (used for) financing activities | (102) | (1,166) | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents, restricted cash, and cash held for sale | 112 | (79) | ||||||||||||
Net increase (decrease) in cash and cash equivalents, restricted cash, and cash held for sale | $ | 92 | $ | 675 |
Nine Months Ended September 30, | ||||||||||||||
US$ in millions | 2022 | 2021 | ||||||||||||
Cash provided by (used for) operating activities | $ | (5,031) | $ | (1,642) | ||||||||||
Net proceeds from beneficial interest in securitized trade receivables | 5,176 | 3,255 | ||||||||||||
Cash provided by (used for) operating activities, adjusted | $ | 145 | $ | 1,613 |
Nine Months Ended September 30, 2022 | Year Ended December 31, 2021 | |||||||||||||||||||||||||
(US$ in millions) | Value | Market Risk | Value | Market Risk | ||||||||||||||||||||||
Highest daily aggregated position value | $ | 1,809 | $ | (181) | $ | 1,706 | $ | (171) | ||||||||||||||||||
Lowest daily aggregated position value | $ | (416) | $ | 42 | $ | (3) | $ | — |
Period | Total Number of Shares (or Units) Purchased | Average Price Paid per Share (or Unit) | Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs(1) | Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs(1) | ||||||||||||||||||||||
July 1, 2022 - July 31, 2022 | — | $ | — | — | $ | 500,000,000 | ||||||||||||||||||||
August 1, 2022 - August 31, 2022 | 2,109,115 | $ | 94.83 | 2,109,115 | $ | 300,000,071 | ||||||||||||||||||||
September 1, 2022 - September 30, 2022 | — | $ | — | — | $ | 300,000,071 | ||||||||||||||||||||
Total | 2,109,115 | $ | — | 2,109,115 |
Revolving Credit Agreement, among Bunge Limited Finance Corp., as borrower, Sumitomo Mitsui Banking Corporation, as syndication agent, BNP Paribas, Citibank, N.A., Natixis, New York Branch, and U.S. Bank National Association, as co-documentation agents, Coöperatieve Rabobank U.A., New York Branch, as administrative agent, and certain lenders party thereto, dated July 15, 2022 (the “Rabobank Credit Agreement”) (incorporated by reference from the Registrant’s Form 8-K filed July 18, 2022) | ||||||||
Guaranty by Bunge Limited pursuant to the Rabobank Credit Agreement, dated July 15, 2022 (incorporated by reference from the Registrant’s Form 8-K filed July 18, 2022) | ||||||||
Term Loan Agreement among Bunge Limited Finance Corp., as borrower, Sumitomo Mitsui Banking Corporation, Bank of America, N.A., BNP Paribas, Citibank, N.A., Coöperatieve Rabobank U.A., New York Branch, ING Bank, N.V., JPMorgan Chase Bank, N.A., Mizuho Bank, Ltd., PNC Bank, National Association, Royal Bank of Canada, The Toronto-Dominion Bank, New York Branch, Truist Bank, U.S. Bank National Association and Wells Fargo Bank, National Association, as syndication agents, JPMorgan Chase Bank, N.A., as administrative agent, and certain lenders party thereto, dated July 26, 2022 (the “Term Loan Agreement”) (incorporated by reference from the Registrant’s Form 8-K filed July 26, 2022) | ||||||||
Guaranty by Bunge Limited pursuant to the Term Loan Agreement, dated July 26, 2022 (incorporated by reference from the Registrant’s Form 8-K filed July 26, 2022) | ||||||||
Credit Agreement among Bunge Limited Finance Corp., as borrower, CoBank, ACB, as administrative agent and lead arranger, and certain lenders party thereto from time to time, dated August 5, 2022 (the “CoBank Credit Agreement”) (incorporated by reference from the Registrant’s Form 8-K filed August 9, 2022) | ||||||||
Guaranty by Bunge Limited pursuant to the CoBank Credit Agreement, dated August 5, 2022 (incorporated by reference from the Registrant’s Form 8-K filed August 9, 2022) | ||||||||
* | Subsidiary Issuers of Guaranteed Securities | |||||||
* | Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes Oxley Act of 2002 | |||||||
* | Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes Oxley Act of 2002 | |||||||
** | Certification of Chief Executive Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002 | |||||||
** | Certification of Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002 | |||||||
101 SCH | XBRL Taxonomy Extension Schema Document | |||||||
101 CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101 LAB | XBRL Taxonomy Extension Labels Linkbase Document | |||||||
101 PRE | XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
101 DEF | XBRL Taxonomy Extension Definition Linkbase Document | |||||||
101 INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
BUNGE LIMITED | |||||||||||
Date: October 26, 2022 | By: | /s/ John W. Neppl | |||||||||
John W. Neppl | |||||||||||
Executive Vice President, Chief Financial Officer | |||||||||||
/s/ J. Matt Simmons, Jr. | |||||||||||
J. Matt Simmons, Jr. | |||||||||||
Controller and Principal Accounting Officer |
Name of Subsidiary Issuer | State of Formation of Issuer | Description of Registered Notes | |||||||||||||||
Bunge Finance Europe B.V. | The Netherlands | 1.85% Senior Notes due 2023 - Euro | |||||||||||||||
Bunge Limited Finance Corp. | Delaware | 1.63% Senior Notes due 2025 | |||||||||||||||
Bunge Limited Finance Corp. | Delaware | 3.25% Senior Notes due 2026 | |||||||||||||||
Bunge Limited Finance Corp. | Delaware | 3.75% Senior Notes due 2027 | |||||||||||||||
Bunge Limited Finance Corp. | Delaware | 2.75% Senior Notes Due 2031 |
/s/ Gregory A. Heckman | |||||
Gregory A. Heckman | |||||
Chief Executive Officer (Principal Executive Officer) |
/s/ John W. Neppl | |||||
John W. Neppl | |||||
Executive Vice President, Chief Financial Officer |
/s/ Gregory A. Heckman | |||||
Gregory A. Heckman | |||||
Chief Executive Officer (Principal Executive Officer) |
/s/ John W. Neppl | |||||
John W. Neppl | |||||
Executive Vice President, Chief Financial Officer |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parentheticals) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Statement of Comprehensive Income [Abstract] | ||||
Unrealized gains (losses) on designated hedges, tax benefit (expense) | $ 0 | $ 1 | $ (2) | $ (2) |
Pension adjustment, tax (expense) benefit | 0 | 2 | 0 | 0 |
Reclassification of net (gains) losses to net income, (benefit) expense | $ 0 | $ 0 | $ 12 | $ 0 |
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS (Parenthetical) - $ / shares |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Aug. 11, 2022 |
Feb. 23, 2022 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Statement of Stockholders' Equity [Abstract] | ||||||
Dividends on common shares (in dollars per share) | $ 0.625 | $ 0.625 | $ 0.525 | $ 1.775 | $ 1.550 | |
Dividends on preferred shares (in dollars per share) | $ 1.21875 | $ 1.21875 | $ 3.65625 |
BASIS OF PRESENTATION, PRINCIPLES OF CONSOLIDATION, AND SIGNIFICANT ACCOUNTING POLICIES |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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, 2021 has been derived from Bunge’s audited consolidated financial statements at that date. Operating results for the nine months ended September 30, 2022 are not necessarily indicative of the results to be expected for the year ending December 31, 2022. The financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2021, forming part of Bunge’s 2021 Annual Report on Form 10-K filed with the SEC on February 24, 2022. On September 4, 2022, Argentina’s government published Emergency Decree 576/2022, Programa de Incremento Exportador (the "Export Program"), aimed at boosting farmer selling, and in turn soybean exports. The Export Program introduced a new preferential U.S. dollar to Argentinian peso foreign exchange rate, available exclusively during the period between September 5 and September 30, 2022, payable to Argentinian farmers on qualifying Argentinian peso denominated sales of soybeans. Purchasers of the qualifying soybeans, including Bunge, received the same preferential rate on U.S. dollar funds placed onshore in Argentina and converted to Argentinian peso to fund soybean purchases. Bunge is both a receiver of the preferential exchange rate for cash converted to Argentinian peso, as well as a payer of the same preferential rate on purchases of soybeans from farmers and related export duties. Transactions and monetary balances related to the Export Program were accounted for at the preferential rate. The net impact of the Export Program on Bunge's condensed consolidated statements of income was not material. On August 1, 2022, Bayer AG (FRA: BAYN) acquired a 65% controlling interest in CoverCress Inc. ("CCI"), a Bunge Ventures portfolio company that has developed a novel low carbon-intensity winter oilseed crop called CoverCress™, by purchasing all equity interests in CCI other than those held by Bunge Ventures and Chevron USA, Inc., a subsidiary of Chevron Corporation ("Chevron", NYSE: CVX). As a result of the transaction, during the three months ended September 30, 2022, the Company recorded an $18 million unrealized gain on its remaining 21.93% ownership interest in CCI within Other income (expense) – net of the Company’s condensed consolidated statements of income. Additionally, the Company reclassified its $44 million investment in CCI as of September 30, 2022 from Long-term Investments, within Other Non-current Assets, to Investments in affiliates in the condensed consolidated balance sheet. Both Bunge's investment in CCI and the above mentioned related unrealized gain are recorded within Corporate and Other activities. On May 1, 2022, Bunge completed a transaction with Chevron to create a joint venture, Bunge Chevron Ag Renewables LLC (the "Joint Venture"), leveraging Bunge’s expertise in oilseed processing and farmer relationships, and Chevron’s expertise in fuels manufacturing and marketing, to help meet the demand for renewable fuels and to develop lower carbon intensity feedstocks. Bunge has a 50% ownership interest in the Joint Venture. Bunge contributed certain property, plant, and equipment related to two of its soybean processing facilities to the Joint Venture, with a fair value totaling approximately $521 million, and Chevron contributed an approximately equal value of cash and working capital. Bunge has also committed to undertake certain capital improvements on the soybean processing facilities contributed to the Joint Venture, up to an estimated $80 million, at which point Chevron will contribute an additional equivalent amount in cash. Under the terms of the Joint Venture's agreements, Bunge will operate the Joint Venture’s facilities, and Chevron will have purchase rights for oil produced by the Joint Venture for use as a renewable feedstock to manufacture low lifecycle carbon intensity transportation fuels. See Note 9 - Variable Interest Entities for further accounting considerations related to this transaction. Bunge has operations in Turkey, which until March 31, 2022, used the official exchange rate published by the Turkish government to translate the Company's commercial transactions and for financial statement re-measurement purposes. Over the last several years, Turkey has experienced negative economic trends, as evidenced by multiple periods of increasing inflation rates, depreciation of the Turkish lira, and increasing borrowing rates, which have required the Turkish government to take mitigating actions. During the first quarter of 2022, Turkey became a highly inflationary economy as defined under U.S. GAAP. In accordance with ASC 830, Foreign Currency Matters, the financial statements of foreign entities in highly inflationary economies are required to be remeasured as if the functional currency were the reporting currency, commencing in the period subsequent to such economies becoming highly inflationary. As a result, effective April 1, 2022, the financial statements of Bunge's Turkish subsidiary have been remeasured using the reporting currency, the U.S. dollar, rather than the Turkish lira. This change has not had a material impact on Bunge's condensed consolidated financial statements. Cash, Cash Equivalents, Restricted Cash, and Cash held for sale Restricted cash and cash held for sale 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, restricted cash, and cash held for sale, reported within the condensed consolidated balance sheets, which sum to the total of the same such amounts shown in the condensed consolidated statement of cash flows.
Cash paid for taxes, which primarily comprises income taxes and value added taxes, net of refunds, was $383 million and $309 million for the nine months ended September 30, 2022 and 2021, respectively. Cash paid for interest expense was $315 million and $231 million for the nine months ended September 30, 2022 and 2021, respectively. Recently Adopted Accounting Pronouncements On January 1, 2022, the Company adopted Accounting Standards Update ("ASU") 2021-10, Government Assistance (Topic 832) - Disclosures by Business Entities About Government Assistance, which requires annual disclosures for transactions with a government authority that are accounted for by applying a grant or contribution accounting model by analogy. The guidance is effective for annual periods beginning after December 15, 2021. This guidance will be applied prospectively to all transactions within the scope of the standard that are reflected in financial statements at the date of initial application and new transactions that are entered into after the date of initial application. As this standard requires annual disclosure only, the Company continues to identify its transactions that are subject to this guidance and evaluate the impact of this standard on its condensed consolidated financial statements. On January 1, 2022, the Company adopted 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. This guidance will be applied prospectively to modifications or exchanges occurring on or after the effective date of the amendments. The adoption of this guidance did not have a material impact on Bunge's 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, with subsequent updates through ASU 2021-01, which collectively provide 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 was effective upon issuance, and per the guidance, the Company is applying it prospectively to all eligible contract modifications through December 31, 2022. In March 2021, the United Kingdom's Financial Conduct Authority ("FCA"), responsible for regulating LIBOR, announced that most LIBOR settings would be discontinued after December 31, 2021, except for certain USD LIBOR settings, which will continue through June 30, 2023. In September 2021, the FCA further announced that it will require the LIBOR benchmark administrator to publish sterling and Japanese yen LIBOR settings under a synthetic methodology based on term risk-free rates for the duration of 2022. These synthetic LIBOR settings will be available only for use in legacy contracts and are not for use in new business. Bunge has utilized the relief provided by Topic 848 to ensure financial reporting results reflect the intended continuation of such contracts and arrangements during the period of the market-wide transition to alternative reference rates. The expedients allow an eligible modified contract to be accounted for and presented as a continuation of the existing contract. The Company has identified its LIBOR-based contracts that have been, or will be, impacted by the cessation of LIBOR. The Company continues to actively work with counterparties to incorporate fallback language in negotiated contracts, in addition to incorporating non-LIBOR reference rate and fallback language, when applicable, in new contracts. The modification of contracts is ongoing; however, as of September 30, 2022, the adoption of this guidance has not had a material impact on Bunge's condensed consolidated financial statements.
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UKRAINE-RUSSIA WAR |
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Unusual or Infrequent Items, or Both [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
UKRAINE-RUSSIA WAR | UKRAINE-RUSSIA WAR On February 24, 2022, Russia initiated a military invasion of Ukraine (the "war"). Ukraine forms part of a key international grain originating region and is also the world’s largest supplier of sunflower seed and sunflower oil; commodities that cannot be completely replaced from other origins. The scope, intensity, duration and outcome of the ongoing war is uncertain, and any continuation or escalation of the war may have a material adverse effect on Bunge, including its Ukrainian and Russian operations. Further details concerning the impact of the war and its corresponding accounting considerations relating to Bunge's Ukrainian and Russian operations are provided below. Ukraine Bunge's Ukrainian operations comprise two oilseed crushing facilities, located in Mykolaiv and Dnipropetrovsk, a grain export terminal in the Mykolaiv commercial seaport, numerous grain elevators, and an office in Kiev. The Company also operates a corn milling facility in Ukraine via a joint venture. Bunge currently maintains control over all of its material operations and facilities in Ukraine. As of the date of this report, no material damage has been noted at any of Bunge's Ukrainian facilities, including its Mykolaiv port facility, which sustained minor shelling damage earlier in the year. However, due to safety concerns, it is not always possible to conduct onsite physical inspections of all of the Company's Ukrainian facilities. Immediately after the start of the invasion, Bunge temporarily idled its Ukrainian operations. However, Bunge has subsequently restarted certain commercial and operational activities in Ukraine, including oilseed crushing activities at its Dnipropetrovsk facility, as well as certain exports from Ukraine, including via the Black Sea from three Ukrainian ports (Pivdennyi/Yuzhnvi, Odesa, and Chornomorsk; the "POC corridor”), under an agreement between Ukraine and Russia, brokered by the United Nations and Turkey. Although operations in Ukraine have steadily increased during recent months, they remain limited and are subject to Bunge's ability to perform activities safely. Furthermore, Bunge's ability to continue these activities indefinitely is unknown. The Company’s Ukrainian operations employ over 1,000 employees. While, as of the date of this report, some of the Company’s Ukrainian employees have been forced to relocate to other countries or elsewhere within Ukraine, our workforce remains largely intact. The safety of Bunge's employees is its top priority. The Company is actively providing support and resources to employees and their families who have been impacted by these events, and Bunge employees in neighboring countries have mobilized to provide accommodation, food, clothing, toys and other supplies for displaced colleagues and their families. Bunge is also committed to supporting humanitarian efforts in Ukraine and has provided approximately $3 million in food products and monetary assistance to multiple relief organizations helping the people of Ukraine. In accordance with industry standards, Bunge has insured against many types of risks, including against certain of the losses that we have or may experience in the future. However, the Company's level of insurance may not cover all losses the Company could incur. The condensed consolidated balance sheet and related discussion below provides information on the Company’s major classes of assets and liabilities in Ukraine. As of September 30, 2022, total assets and total liabilities associated with Bunge’s Ukrainian subsidiaries each comprise approximately 1% of Bunge’s consolidated Total assets and Total liabilities, respectively. Due to the nature of the war and its rapidly shifting areas of active combat, it is currently not possible to obtain all information necessary to determine all financial statement impacts. As such, the various financial statement impacts and related disclosures presented in these interim financial statements represent management’s best estimates considering available facts and circumstances as of the date of this report. The functional currency of Bunge’s Ukrainian subsidiaries is the U.S. dollar and the foreign exchange rates used to convert assets and liabilities denominated in Ukrainian hryvnia represent the official exchange rates published by the National Bank of Ukraine. Following the onset of the war, the Ukrainian government imposed restrictions on companies’ abilities to repatriate or otherwise remit cash from their Ukrainian-based operations to locations outside Ukraine. However, these restrictions are not expected to persist indefinitely and the Ukrainian government has eased certain restrictions surrounding the payment of international purchase invoices during the three months ended September 30, 2022. The restrictions have not adversely impacted the Company's Ukrainian operations. Bunge is able to readily purchase U.S. dollars and other non-Ukrainian currencies onshore in Ukraine to pay for imports of goods and allowed services, where needed. Bunge is also able to sell foreign currency onshore in Ukraine. Bunge continues to exercise control of and consolidates its Ukrainian subsidiaries. The condensed consolidated balance sheet related to the Company’s Ukrainian operations as of September 30, 2022 consists of the following:
Inventories—Bunge’s Ukrainian inventories generally comprise agricultural commodity inventories, primarily sunflower seeds, sunflower meal, sunflower oil, corn, and wheat. Due to their commodity characteristics, widely available markets, and international pricing mechanisms, such inventories are generally carried at fair value. Following the creation of the POC corridor during the three months ended September 30, 2022, Bunge is able to market and make available for immediate delivery certain of its Ukrainian inventories at internationally-quoted prices. These inventories were carried at fair value as of September 30, 2022. Where the Company's inventories do not qualify to be recorded at fair value, primarily due to their physical location being close to active combat zones or in difficult to access locations with high costs of recovery, they are recorded at the lower of cost or net realizable value, by product category. In such instances, a thorough onsite physical inspection of the inventories is not currently possible due to safety concerns. As such, significant judgments have been made in estimating the net realizable value of the Company’s Ukrainian inventories. As of September 30, 2022, the Company evaluated the recoverability of its inventories inside Ukraine considering the latest information available to management regarding: the current status of the war; expectations regarding continued escalation of conflict and the likelihood and timing of a potential peaceful resolution to the war; the physical location and condition of Bunge's inventories, including expectations regarding the timing of spoilage and the rate at which inventories can be transported from their current location to markets in other parts of Ukraine or exported to adjacent markets. As a result of this analysis, during the three and nine months ended September 30, 2022, the Company recorded reserves of zero and $71 million, respectively, related to inventories physically located in occupied territories in Ukraine, or in difficult to access locations with high costs of recovery. The Company also recorded zero and $6 million in corresponding allowances for recoverable tax assets generated on the purchase of such inventories during the three and nine months ended September 30, 2022, respectively. Other current assets—Comprises $28 million of marketable securities and other short-term investments, $22 million of recoverable taxes, net, and $6 million of various other items, as follows: •Marketable securities and other short-term investments—Primarily comprise Ukrainian (“on-shore”) government debt securities, denominated in Ukrainian hryvnia. Bunge classifies these securities as “trading securities”, carried at fair value in the Company’s condensed consolidated balance sheet, with changes in fair value recorded in the Company’s condensed consolidated statements of income in the period in which they occur. In addition to the marketable securities and other short-term investments belonging to Bunge’s Ukrainian subsidiaries, as shown in the above balance sheet, certain of the Company’s non-Ukrainian subsidiaries hold certain U.S. dollar denominated, non-Ukrainian (“off-shore”) corporate debt securities of issuers with significant exposure to Ukraine. The values of these off-shore securities are directly impacted by the ongoing war. Such items, again reported within Other current assets as marketable securities and other short-term investments, totaled $8 million as of September 30, 2022. As a result of the war, trading in the Ukrainian and Ukrainian-exposed debt securities has largely ceased. As such, at September 30, 2022, the prices of such securities were determined using pricing models with inputs based on similar securities adjusted to reflect management’s best estimate of the specific characteristics of the securities held by the Company. Such inputs represent a significant component of the fair value of the securities held by the Company, resulting in the securities being classified as Level 3 in the Company’s table of assets and liabilities accounted for at fair value on a recurring basis in Note 12 - Fair Value Measurements. During the three and nine months ended September 30, 2022, the Company recorded a combined $7 million and $76 million loss, respectively, on its “on-shore” and “off-shore” portfolios, within Other income (expense) – net, in the condensed consolidated statement of income, of which $45 million relates to securities still held at September 30, 2022. • Recoverable taxes, net—Comprise value-added taxes paid upon the acquisition of property, plant and equipment, raw materials, taxable services, and other transactional taxes, recoverable in cash from the Ukrainian government. Bunge has continued to receive refunds of recoverable taxes from the Ukrainian government since the start of the war, including as recently as early October, 2022. Therefore, as of September 30, 2022, and during the three and nine months then ended, Bunge has not recorded any change in allowances for recoverable taxes in Ukraine except for those associated with the Company's write-off of inventories, described above. •Other—Primarily comprise prepaid expenses and advance payments against contracts for future deliveries of specified quantities of agricultural commodities. Property, plant, and equipment, net—As described above, since the onset of the war, Bunge’s Mykolaiv port facility has sustained immaterial damage. Accordingly, the Company has recorded impairment provisions of zero and $2 million in relation to such damage, within Cost of goods sold, during the three and nine months ended September 30, 2022, respectively. The expense was recorded in the Agribusiness segment. In light of the war, as of September 30, 2022, Bunge evaluated the recoverability of its Ukrainian property, plant and equipment using an income method based on forecasts of expected future cash flows attributable to the respective assets under a range of possible outcomes, including those with reduced or no future cash flows, and concluded that the Company's Ukrainian property, plant and equipment was recoverable. The recoverability tests depend on a number of significant estimates and assumptions, including the likelihood and timing of a potential peaceful resolution to the war, the likelihood and timing of resuming Bunge's remaining Ukrainian operations, expectations around the size of future harvests in Ukraine and the availability and costs of raw materials commodities and inputs, and market demand levels for products. The Company believes these estimates and assumptions are reasonable, and the reported amounts are not highly sensitive to any individual assumption underlying the recoverability tests. However, future changes in the judgments, assumptions, and estimates used in these recoverability tests could result in different conclusions regarding the recoverability of the Company's Ukrainian property, plant and equipment and may result in the need for the Company to record non-cash impairment charges of its Ukrainian property, plant and equipment at such time. Other non-current assets—Comprises $34 million of deferred tax assets, $12 million of operating lease right-of-use assets associated with Bunge’s facilities, $5 million of recoverable taxes, net, expected to be realized in periods greater than twelve months from the balance sheet date, and $6 million of various other items. Trade accounts payable and accrued liabilities—Comprise amounts owed by the Company’s Ukrainian subsidiaries for goods delivered to or services consumed by such subsidiaries in the ordinary course of business. Short-term debt—Bunge's short-term debt represents Ukrainian hryvnia denominated debt, primarily used to fund working capital requirements, issued by Ukrainian branches of non-Ukraine-based financial institutions. Russia In response to Russia's invasion of Ukraine, the United States, other North Atlantic Treaty Organization ("NATO") member states, as well as non-member states, have announced targeted economic sanctions on Russia, certain Russian citizens and Russian enterprises. The continuation or escalation of the war may trigger additional economic and other sanctions. The scope or extent of potential additional sanctions, and the related impact on Bunge is unknown, as of the date of this report. Bunge currently maintains control over its Russian subsidiary and related operations and continues to monitor developments regarding the legal and operational environments in Russia together with their related impacts on the Company’s operations. During the three and nine months ended September 30, 2022, the Company's Russian subsidiaries have not experienced any material financial statement impacts as a result of the war. On September 16, 2022, Bunge signed an agreement to sell its remaining Russian operations, primarily comprising an oilseed crushing and refining facility in Voronezh, southwest Russia, to Karen Vanetsyan. Please refer to Note 3 - Acquisitions and Dispositions for further details regarding the transaction. The functional currency of Bunge’s Russian subsidiaries is the Russian ruble (RUB) and the foreign exchange rates used to convert assets and liabilities denominated in Russian rubles represent the official exchange rates published by the Central Bank of the Russian Federation. Since the onset of the war, the Russian government has imposed restrictions on companies’ abilities to repatriate or otherwise remit cash from their Russian-based operations to various locations outside of Russia, including limiting capital repayments to non-Russian entities to RUB 10 million ($0.2 million) per month. However, Bunge currently remains able to readily purchase U.S. dollars and other non-Russian currencies onshore in Russia in order to make international payments for commercial contracts.
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ACQUISITIONS AND DISPOSITIONS |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACQUISITIONS AND DISPOSITIONS | ACQUISITIONS AND DISPOSITIONS Assets held for sale and Liabilities held for sale Russian Oilseed Processing and Refining Operations Disposition On September 16, 2022, Bunge signed an agreement to sell its remaining Russian operations, primarily comprising an oilseed crushing and refining facility in Voronezh, southwest Russia, to Karen Vanetsyan (the "Buyer"), in exchange for a cash price approximately equal to the book value of the disposal group's net assets. Additionally, cumulative translation adjustment losses, among other items related to the disposal group, resulted in a corresponding impairment loss on sale of $84 million, recognized in Cost of goods sold during the three and nine months ended September 30, 2022. In connection with the transaction, Bunge has agreed to indemnify the Buyer against certain legal claims involving Bunge's Russian subsidiary. Management believes the likelihood of any loss related to the claims underlying the expected indemnity is remote. Completion of the sale is subject to customary closing conditions, including regulatory approvals. 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 sheet as of September 30, 2022. Intercompany balances between the disposal group and other Bunge consolidated entities have been omitted. Assets held for sale comprise $15 million, $37 million, and $6 million, reported under the Agribusiness segment, Refined and Specialty Oils segment, and Corporate and Other, respectively. Liabilities held for sale comprise $4 million and $9 million, reported under the Agribusiness segment and Refined and Specialty Oils segment, respectively.
Mexico Wheat Milling Disposition On October 12, 2021, Bunge entered into an agreement to sell substantially all of its wheat milling business in Mexico in exchange for cash proceeds approximately equal to the book value of Property, plant and equipment, net, plus an additional sum in consideration for the value of net working capital to be transferred on closing. Additionally, cumulative translation adjustments, among other items related to the disposal group, resulted in a corresponding impairment loss on sale of $170 million, recognized in Cost of goods sold for the year ended December 31, 2021. The Company also incurred a $30 million tax expense in connection with the disposal. On September 14, 2022, the transaction closed in accordance with the terms of the agreement. The following table presents the book values of the major classes of assets and liabilities that were included in the disposal group, reported under the Milling segment:
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TRADE STRUCTURED FINANCE PROGRAM |
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Sep. 30, 2022 | |
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, in which trade related payables are set-off against receivables, all of which are subject to legally enforceable set-off agreements. As of September 30, 2022 and December 31, 2021, time deposits and LCs of $6,123 million and $6,543 million, respectively, were presented net on the condensed consolidated balance sheets as the criteria of ASC 210-20, Offsetting, had 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 September 30, 2022 and December 31, 2021, time deposits, including those presented on a net basis, carried weighted-average interest rates of 2.84% and 1.08%, respectively. During the nine months ended September 30, 2022 and 2021, total net proceeds from issuances of LCs were $5,045 million and $5,379 million, respectively. These cash inflows were 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 Secured Overnight Financing Rate ("SOFR"), or LIBOR for trades prior to January 1, 2022, for a period of up to 365 days. Bunge’s payment obligation to financial institutions as part of the trade structured finance activities, reported in Other current liabilities, including any unrealized gain or loss on changes in SOFR, or LIBOR for trades prior to January 1, 2022, is not significant as of September 30, 2022 or December 31, 2021. 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 September 30, 2022 and December 31, 2021 are included in Note 13 - 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 nine month periods ended September 30, 2022 and 2021.
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TRADE ACCOUNTS RECEIVABLE AND TRADE RECEIVABLES SECURITIZATION PROGRAM |
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Transfers and Servicing [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
TRADE ACCOUNTS RECEIVABLE AND TRADE RECEIVABLES SECURITIZATION PROGRAM | TRADE ACCOUNTS RECEIVABLE AND TRADE RECEIVABLES SECURITIZATION PROGRAM Trade Accounts Receivable Changes to the allowance for lifetime expected credit losses related to trade accounts receivable were as follows:
(1) Long-term portion of the allowance for credit losses included in Other non-current assets.
(1) Long-term portion of the allowance for credit losses included in Other non-current assets. 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. On March 31, 2022, Bunge and certain of its subsidiaries renewed and amended the Program. As a result, the aggregate size of the facility that provides funding against receivables sold into the Program increased by $175 million from $925 million to $1.1 billion. Bunge may also, 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 by an amount not to exceed $250 million pursuant to an accordion provision. The Program will terminate on May 17, 2031; however, each committed purchaser's commitment to purchase trade receivables under the Program will terminate on May 17, 2025, unless extended for an additional period in accordance with the terms of the receivables transfer agreement. The Program was further amended to add sustainability provisions, pursuant to which the applicable margin will be increased or decreased based on Bunge's performance in comparison with certain sustainability targets, including, but not limited to, recently established science-based targets that define Bunge's climate goals within its operations and a commitment to a deforestation-free supply chain in 2025.
(1) Bunge's risk of loss following the sale of the trade receivables is limited to the deferred purchase price ("DPP"), included in Other current assets in the condensed consolidated balance sheets (see Note 7 - Other Current Assets). The DPP will be repaid in cash as receivables are collected, generally within 30 days of collection. Provisions for delinquencies and credit losses on trade receivables sold under the Program were $5 million and $5 million at September 30, 2022 and December 31, 2021, respectively. 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.
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.
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INVENTORIES |
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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.
(1) Includes RMI of $6,144 million and $6,490 million at September 30, 2022, and December 31, 2021, respectively. Of these amounts, $4,834 million and $4,857 million can be attributable to merchandising activities at September 30, 2022, and December 31, 2021, respectively. (2) Includes RMI of $296 million and $257 million at September 30, 2022, and December 31, 2021, respectively. (3) Includes RMI of $3 million and $122 million at September 30, 2022, and December 31, 2021, respectively.
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OTHER CURRENT ASSETS |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER CURRENT ASSETS | OTHER CURRENT ASSETS Other current assets consist of the following:
(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 soybean farmers, 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 $6 million at September 30, 2022, and $3 million at December 31, 2021. Interest earned on secured advances to suppliers of $4 million and $5 million for the three months ended September 30, 2022, and 2021, respectively, and $16 million and $18 million for the nine months ended September 30, 2022, and 2021, 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). (4) 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.
As of September 30, 2022, and December 31, 2021, $73 million and $479 million, respectively, of marketable securities and other short-term investments were recorded at fair value. All other investments were recorded at cost, and due to the short-term nature of these investments, their carrying values approximated their fair values. For the three months ended September 30, 2022, and 2021, unrealized losses of $9 million and unrealized gains of $42 million, respectively, have been recognized in Other income (expense) - net for investments held at September 30, 2022, and 2021. For the nine months ended September 30, 2022 and 2021, unrealized losses of $123 million and unrealized gains of $60 million, respectively, have been recognized in Other income (expense) - net for investments held at September 30, 2022, and 2021.
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OTHER NON-CURRENT ASSETS |
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Other Assets, Noncurrent [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER NON-CURRENT ASSETS | OTHER NON-CURRENT ASSETS Other non-current assets consist of the following:
(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 September 30, 2022, and December 31, 2021, $9 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 allowances of $14 million and $18 million at September 30, 2022, and December 31, 2021, 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 include overpayments of current income taxes plus accrued interest. These income tax prepayments are expected to be primarily used for the settlement of future income tax obligations. Income taxes receivable in Brazil bear interest at the Selic rate. Long-term investments - Long-term investments primarily comprise Bunge's 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 nine months ended September 30, 2022, and the year ended December 31, 2021, was $98 million and $92 million, respectively. The table below summarizes the Company’s recorded investment in long-term receivables from farmers in Brazil and the related allowance amounts.
(1) All amounts in legal collection processes 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 Other non-current assets to Other 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.
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VARIABLE INTEREST ENTITIES |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES Consolidated Variable Interest Entities As indicated in Note 1 - Basis of Presentation, Principles of Consolidation, And Significant Accounting Policies, on May 1, 2022, Bunge completed a transaction with Chevron Corporation ("Chevron") to create a joint venture, Bunge Chevron Ag Renewables LLC (the "Joint Venture"), leveraging Bunge’s expertise in oilseed processing and farmer relationships, and Chevron’s expertise in fuels manufacturing and marketing, to help meet the demand for renewable fuels and to develop lower carbon intensity feedstocks. The Joint Venture is a variable interest entity ("VIE") in which Bunge is considered to be the primary beneficiary because it is responsible for the day-to-day operating decisions of the Joint Venture as well as the marketing of the principal products, primarily soybean meal and oil produced and sold by the Joint Venture, among other factors. The Joint Venture's assets can only be used to settle the Joint Venture’s own obligations and the Joint Venture’s creditors have no recourse to Bunge’s assets beyond Bunge’s maximum exposure to loss associated with the Joint Venture at any given time. The following table presents the values of the assets and liabilities associated with the Joint Venture, which are included in Bunge’s condensed consolidated balance sheet as of September 30, 2022. All amounts exclude intercompany balances, which have been eliminated upon consolidation. For all other VIEs in which Bunge is considered the primary beneficiary, the entities meet the definition of a business, and the VIE's assets can be used other than for the settlement of the VIE’s obligations. As such these VIEs have been excluded from the below table:
Non-Consolidated Variable Interest Entities On June 10, 2022, Bunge completed its acquisition of a 33% interest in Sinagro Produtos Agropecuários S.A. ("Sinagro"), a Brazilian distributor of agricultural inputs and originator of grains, in exchange for Brazilian real (R$) 280 million (approximately $53 million). As of September 30, 2022, the Company's maximum exposure to loss related to this unconsolidated VIE is limited to the investment balance of approximately $49 million. However, as part of the acquisition cost, Bunge has committed to provide certain future guarantees of Sinagro’s approximately R$329 million (approximately $61 million) third-party indebtedness in proportion to Bunge’s 33% equity holding, representing a maximum expected future guarantee of approximately R$110 million (approximately $20 million). For additional information on VIEs for which Bunge has determined it is not the primary beneficiary, along with the Company's related maximum exposure to losses associated with such investments, please refer to Note 11 - Investments in Affiliates, included in the Company's 2021 Annual Report on Form 10-K.
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INCOME TAXES |
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Sep. 30, 2022 | |
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, including the realizability of deferred tax assets, and adjusts estimates accordingly. Volatility in earnings within a taxing jurisdiction could result in a determination that additional valuation allowance adjustments may be warranted. Income tax expense for the three and nine months ended September 30, 2022, was $113 million and $257 million, respectively. Income tax expense for the three and nine months ended September 30, 2021, was $92 million and $334 million, respectively. The effective tax rate for the three months ended September 30, 2022, was higher than the U.S. statutory rate of 21% primarily due to unfavorable tax impact on North American and expected European dispositions and the effective tax rate for the nine months ended September 30, 2022, was lower than the U.S. statutory rate of 21%, primarily due to favorable earnings mix, incentives in South America, and the release of valuation allowances in Europe and Asia. The effective tax rate for the three and nine months ended September 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. 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.
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OTHER CURRENT LIABILITIES |
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Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER CURRENT LIABILITIES | OTHER CURRENT LIABILITIES Other current liabilities consist of the following:
(1) The Company records advances on sales when cash payments are received in advance of the Company’s performance and recognizes revenue once the related performance obligation is completed. Advances on sales are impacted by the seasonality of Bunge's business, including the timing of harvests in the northern and southern hemispheres, and amounts at each balance sheet date will generally be recognized in earnings within twelve months or less.
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FAIR VALUE MEASUREMENTS |
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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 14- 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.
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 2021 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.
(1) These receivables and payables 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. (2) Unrealized gains on derivative contracts are generally included in Other current assets. There were $5 million and $49 million included in Other non-current assets at September 30, 2022, and December 31, 2021, respectively. There were no unrealized gains on derivative contracts included in Assets held for sale at September 30, 2022, and $2 million included in Assets held for sale at December 31, 2021. (3) Other includes the fair values of marketable securities and investments in Other current assets and Other non-current assets. (4) Unrealized losses on derivative contracts are generally included in Other current liabilities. There were $351 million and $49 million included in Other non-current liabilities at September 30, 2022, and December 31, 2021, respectively. There were no unrealized losses on derivative contracts included in Liabilities held for sale at September 30, 2022, and $1 million was included in Liabilities held for sale at December 31, 2021. 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 sales contracts are classified as derivatives along with other OTC derivative instruments, primarily relating to freight, energy, foreign exchange and interest rates, and are classified within Level 2 or Level 3 as described below. The Company estimates fair values based on exchange quoted prices, adjusted as appropriate for differences in local markets. These differences are generally valued using inputs from broker or dealer quotations, or market transactions in either the listed or OTC markets. In such cases, these derivative contracts are classified within Level 2. OTC derivative contracts include swaps, options, and structured transactions that are generally fair valued using quantitative models that require the use of multiple market inputs including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets which are not highly active, other observable inputs relevant to the asset or liability, and market inputs corroborated by correlation or other means. These valuation models include inputs such as interest rates, prices, and indices, to generate continuous yield or pricing curves and volatility factors. Where observable inputs are available for substantially the full term of the asset or liability, the instrument is categorized in Level 2. Certain OTC derivatives trade in less active markets with less availability of pricing information and certain structured transactions can require internally developed model inputs that might not be observable in or corroborated by the market. Marketable securities and investments—comprise government treasury securities, corporate debt securities and other investments. Bunge analyzes how the prices are derived and determines whether the prices are liquid or less liquid tradable prices. Marketable securities and investments with liquid prices are valued using prices from publicly available sources and classified as Level 1. Marketable securities and investments with less-liquid prices are valued using third-party quotes or pricing models and classified as Level 2 or Level 3 as described below. 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 Measurements—Transfers in and/or out of Level 3 represent existing assets or liabilities that were either previously categorized as a higher level for which the inputs to the model became unobservable or assets and liabilities that were previously classified as Level 3 for which the lowest significant input became observable during the period. Bunge's policy regarding the timing of transfers between levels is to record the transfers at the beginning of the reporting period. Level 3 Readily marketable inventories and trade accounts payable—The significant unobservable inputs resulting in Level 3 classification for RMI, physically settled forward purchase and sales 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 sales 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. Level 3 Others—primarily relates to marketable securities and investments valued using third-party quotes or pricing models with inputs based on similar securities adjusted to reflect management’s best estimate of the specific characteristics of the securities held by the Company. Such inputs represent a significant component of the fair value of the securities held by the Company, resulting in the securities being classified as 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 nine months ended September 30, 2022, and 2021. These instruments were valued using pricing models that management believes reflect the assumptions that would be used by a marketplace participant.
(1) Readily marketable inventories, derivatives, net, and trade accounts payable, include gains/(losses) of $313 million, $62 million and $3 million, respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at September 30, 2022. (2) Comprises the fair values of marketable securities and investments in Other current assets. Included within Other income (expense) - net of the condensed consolidated statements of income are $7 million in mark-to-market losses related to securities still held at September 30, 2022.
(1) Readily marketable inventories, derivatives, net, and trade accounts payable, includes gains/(losses) of $84 million, $15 million and $7 million, respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at September 30, 2021.
(1) Readily marketable inventories, derivatives, net and trade accounts payable, includes gains/(losses) of $480 million, $89 million and $30 million, respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at September 30, 2022. (2) Comprises the fair values of marketable securities and investments in Other current assets. Included within Other income (expense) - net of the condensed consolidated statements of income are $45 million in mark-to-market losses related to securities still held at September 30, 2022.
(1) Readily marketable inventories, derivatives, net and trade accounts payable, includes gains/(losses) of $347 million, $(19) million and $15 million, respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at September 30, 2021.
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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIESThe 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 a change in the fair value of the derivative will be substantially offset by the earnings effect of the change 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 sales, purchases 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 forward is reclassified to Net sales, Cost of goods sold, or Selling, general and administrative expenses. These hedges mature at various times through July 2023. Of the amount currently in Accumulated other comprehensive income (loss), $4 million of deferred losses 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 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 by way of either sale or substantial liquidation of the foreign subsidiary. 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.
Economic Hedge Derivatives - In addition to using derivatives in qualifying hedge relationships, the Company enters into derivatives to economically hedge its exposure to a variety of market risks it incurs in the normal course of operations. Interest rate derivatives are used to hedge exposures to the Company's financial instrument portfolios and debt issuances. The impact of changes in fair value of these instruments is primarily presented in Interest expense. Currency derivatives are used to hedge the balance sheet and commercial exposures that arise from the Company's global operations. The impact of changes in fair value of these instruments is presented in Cost of goods sold when hedging commercial exposures and Foreign exchange gains (losses) when hedging monetary exposures. Agricultural commodity derivatives are used primarily to manage the Company's inventory and forward purchase and sales contracts. Contracts to purchase agricultural commodities generally relate to current or future crop years for delivery periods quoted by regulated commodity exchanges. Contracts for the sale of agricultural commodities generally do not extend beyond one future crop cycle. The impact of changes in fair value of these instruments is presented in Cost of goods sold. The Company uses derivative instruments referred to as forward freight agreements ("FFAs") 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, carbon emission derivatives and equity derivatives to manage its 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 September 30, 2022 and December 31, 2021. For those contracts traded bilaterally through the OTC markets (e.g., forwards, forward rate agreements ("FRAs"), 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.
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 nine months ended September 30, 2022 and 2021.
(1) Other includes results from freight, energy and other derivatives.
(1) Other includes results from freight, energy and other derivatives.
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DEBT |
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DEBT | DEBT Bunge’s $600 million commercial paper program is supported by an identical amount of committed back-up bank credit lines (the "Liquidity Facility") provided 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 September 30, 2022, and December 31, 2021, there were $215 million and no borrowings outstanding under the commercial paper program and no borrowings under the Liquidity Facility, respectively. The Liquidity Facility is Bunge's only revolving credit facility that requires lenders to maintain minimum credit ratings. The Liquidity Facility is set to expire on July 16, 2026. Bunge had no borrowings outstanding at September 30, 2022, under the unsecured $1.1 billion 364-day Revolving Credit Agreement (the "$1.1 Billion Credit Agreement"), with a group of lenders, entered into on July 15, 2022, and maturing on July 14, 2023. Bunge may from time-to-time request one or more of the existing or new lenders to increase the total participations under the $1.1 Billion Credit Agreement by an aggregate amount up to $250 million pursuant to an accordion provision. Borrowings will bear interest at the SOFR plus a credit spread adjustment and applicable margin, as defined in the $1.1 Billion Credit Agreement. The $1.1 Billion Credit Agreement replaces the previous unsecured $1 billion 364-day Revolving Credit Agreement (the "$1 Billion Credit Agreement") that matured on July 15, 2022. Bunge had no borrowings outstanding at September 30, 2022, and December 31, 2021, under the 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. Bunge had no borrowings outstanding at September 30, 2022, and December 31, 2021, under the unsecured $865 million Revolving Credit Agreement (the "$865 Million 2026 Facility") with a group of lenders, set to mature on October 29, 2026. Borrowings will bear interest at SOFR plus a credit spread adjustment and applicable margin, as defined in the $865 Million 2026 Facility. Bunge had no borrowings outstanding at September 30, 2022, and December 31, 2021, under the unsecured $1.75 billion Revolving Credit Facility ("$1.75 Billion Revolving Credit Facility"), set to mature on December 16, 2024. The interest rate under the $1.75 Billion Revolving Credit Facility is tied to certain sustainability criteria, including, but not limited to, recently established science-based targets that define Bunge's climate goals within its operations and a commitment to a deforestation-free supply chain in 2025. Bunge may from time to time, with the consent of the agent, request one or more of the existing lenders or new lenders to increase the total commitments by an amount not to exceed $250 million pursuant to an accordion provision. Borrowings under the $1.75 Billion Revolving Credit Facility will bear interest at LIBOR plus a margin, which will vary from 0.30% to 1.30%, based on the senior long-term unsecured debt ratings provided by Moody’s Investors Services Inc. and S&P Global Ratings. Bunge will also pay a fee that will vary from 0.10% to 0.40% based on its utilization of the Revolving Credit Facility. At September 30, 2022, Bunge had $6,700 million unused and available committed borrowing capacity under committed revolving credit facilities and the commercial paper program, totaling $5,665 million, in addition to $1,250 million in committed unsecured delayed draw term loans, as discussed below. At December 31, 2021, Bunge had $5,815 million unused and available committed borrowing capacity under committed revolving credit facilities and the commercial paper program, totaling $5,565 million, in addition to $250 million in committed unsecured delayed draw term loans, as discussed below. 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 financing requirements. At September 30, 2022, and December 31, 2021, there were $125 million in borrowings and no 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 $987 million and $673 million in short-term borrowings outstanding under local bank lines of credit at September 30, 2022, and December 31, 2021, respectively, to support working capital requirements. 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:
On February 23, 2022, Bunge issued a notice of redemption for all of the issued and outstanding 4.35% unsecured senior notes (the "4.35% Senior Notes") due March 15, 2024. The redemption for the 4.35% Senior Notes occurred on March 10, 2022. In connection with the redemption, during the nine months ended September 30, 2022, the Company recorded a $47 million charge within Interest expense, of which $31 million related to a "make-whole" provision based on the sum of the present values of the remaining scheduled payments of principal and interest on the 4.35% Senior Notes, plus accrued and unpaid interest as of the March 10, 2022, redemption date, and $16 million related to the reclassification of unrealized mark-to-market losses on terminated and de-designated interest rate hedges. On August 23, 2022, Bunge issued a notice of redemption for all of the issued and outstanding 3.00% senior notes (the "3.00% Senior Notes") due September 25, 2022. The redemption for the 3.00% Senior Notes occurred on September 7, 2022. In connection with the redemption, during the three and nine months ended September 30, 2022, the Company recorded a $405 million payment for redemption of the notes, at par, plus accrued and unpaid interest. On July 26, 2022, and later amended on October 7, 2022, Bunge entered into an unsecured $750 million delayed draw term loan (the "$750 Million Delayed Draw Term Loan") with a group of lenders giving Bunge the option to draw the loan by January 25, 2023. The $750 Million Delayed Draw Term Loan will bear interest at SOFR plus a credit spread adjustment and applicable margin, as defined in the $750 Million Delayed Draw Term Loan agreement. The $750 Million Delayed Draw Term Loan matures on October 24, 2025. On August 5, 2022, Bunge entered into an unsecured $250 million delayed draw term loan (the "$250 Million February 2023 Delayed Draw Term Loan") with a group of lenders that is required to be drawn by February 2, 2023. The $250 Million February 2023 Delayed Draw Term Loan will bear interest at SOFR plus a credit spread adjustment and applicable margin, as defined in the $250 Million February 2023 Delayed Draw Term Loan agreement. The $250 Million February 2023 Delayed Draw Term Loan matures on August 5, 2027. On October 29, 2021, Bunge entered into an unsecured $250 million delayed draw term loan (the "$250 Million October 2022 Delayed Draw Term Loan") with a group of lenders that is required to be drawn by October 27, 2022. The $250 Million October 2022 Delayed Draw Term Loan will bear interest at SOFR plus a credit spread adjustment and applicable margin, as defined in the $250 Million October 2022 Delayed Draw Term Loan agreement. The $250 Million October 2022 Delayed Draw Term Loan matures on October 29, 2028, and was drawn on October 21, 2022.
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RELATED PARTY TRANSACTIONS |
9 Months Ended |
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Sep. 30, 2022 | |
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 approximately 6% or less of total Cost of goods sold for the three and nine months ended September 30, 2022, and 2021. Bunge also sells agricultural commodity products to certain of its unconsolidated investees and other related parties. Such related party sales comprised approximately 2% or less of total Net sales for the three and nine months ended September 30, 2022, and 2021. In addition, Bunge receives services from and provides services to its unconsolidated investees and other related parties, including tolling, port handling, administrative support, and other services. For the three and nine months ended September 30, 2022, and 2021, such services were not material to the Company's consolidated results. At September 30, 2022, and December 31, 2021, receivables related to the above related party transactions comprised approximately 1% or less of total Trade accounts receivable. At September 30, 2022, and December 31, 2021, payables related to the above related party transactions comprised approximately 5% or less of total Trade accounts payable. Bunge believes all transaction values to be similar to those that would be conducted with third parties.
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COMMITMENTS AND CONTINGENCIES |
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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 in which 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, 2021. Included in Other non-current liabilities as of September 30, 2022, and December 31, 2021, are the following amounts related to these matters:
Non-income tax claims Brazil Indirect Taxes - These tax claims relate to ongoing claims against Bunge’s Brazilian subsidiaries, primarily value-added tax claims (ICMS, ISS, IPI and PIS/COFINS). As of September 30, 2022, 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:
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, and several other companies in the Brazilian wheat milling industry, and others for alleged anticompetitive activities in the north and northeast of Brazil. While a co-defendant obtained an injunction to stay the proceeding in 2019, on October 24, 2022, a Brazilian appellate court reversed that injunction and the proceeding has resumed before the Brazilian CADE. Guarantees Bunge has issued or was a party to the following guarantees at September 30, 2022:
(1) Bunge has issued guarantees to certain financial institutions related to debt of certain of its unconsolidated affiliates. The terms of the guarantees are equal to the terms of the related financings, which have maturity dates through 2034. There are no recourse provisions or collateral that would enable Bunge to recover any amounts paid under these guarantees. In addition, certain Bunge subsidiaries have guaranteed the obligations of certain of their unconsolidated affiliates and in connection therewith have secured their guarantee obligations through a pledge to the financial institutions of certain of their unconsolidated affiliates' shares plus loans receivable from the unconsolidated affiliates in the event that the guaranteed obligations are enforced. Based on amounts drawn under such debt facilities at September 30, 2022, Bunge's potential liability was $228 million, and it has recorded a $3 million obligation related to these guarantees within Other non-current liabilities. (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 value to be received by the lessor at the conclusion of the lease term. These leases expire at various dates from 2022 through 2029. At September 30, 2022, 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.
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OTHER NON-CURRENT LIABILITIES |
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Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER NON-CURRENT LIABILITIES | OTHER NON-CURRENT LIABILITIES
(1)On February 28, 2022, the Company, together with plan participants and related employee unions, agreed to the transition of one of the Company's international defined benefit pension plans to a multi-employer pension plan. Following the transition, the Company accounts for the multi-employer plan similar to a defined contribution plan, resulting in full settlement of the related defined benefit plan obligations. In connection with the settlement, during the nine months ended September 30, 2022, the Company recorded a $41 million pretax gain within Other income (expense) - net in its condensed consolidated statements of income, comprising a $4 million settlement of the related defined benefit plan obligations as well as the reclassification of $37 million in unamortized actuarial gains from Accumulated other comprehensive income (loss). Of this pretax gain, $12 million was attributable to Redeemable non-controlling interests. (2)See Note 10- Income Taxes. (3)See Note 12 - Fair Value Measurements.
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REDEEMABLE NONCONTROLLING INTEREST |
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Redeemable Noncontrolling Interest, Equity, Carrying Amount [Abstract] | |
REDEEMABLE NONCONTROLLING INTEREST | REDEEMABLE NONCONTROLLING INTEREST In connection with the acquisition of a 70% ownership interest in Bunge Loders Croklaan Group B.V. ("Loders"), the Company entered into a put/call arrangement with the Loders minority shareholder through which it may be required or elect to purchase the additional 30% ownership interest in Loders within a specified time frame. Since the acquisition of the 70% ownership in Loders, the Company classified 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 interest was the greater of: (i) the initial carrying amount, increased or decreased for the noncontrolling interest's 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 interest's share of net income or loss, equity capital contributions and distributions, were affected via a charge against Retained earnings. Additionally, any such charges to Retained earnings would affect Net income (loss) available to Bunge common shareholders as part of Bunge's calculation of earnings per common share. On August 5, 2022, Bunge and the Loders minority shareholder completed a transaction in which Bunge acquired an additional 10% interest in Loders in exchange for approximately $102 million in cash, and the existing put/call arrangement over Loders' noncontrolling equity interest was terminated. Bunge's ownership interest in Loders following the transaction increased from 70% to 80%. As Loders' remaining $235 million noncontrolling interest is no longer redeemable at the option of the holder, it was reclassified from Redeemable noncontrolling interest to Noncontrolling interests within Bunge's condensed consolidated balance sheet and condensed consolidated statement of changes in equity at a value representing the noncontrolling interest's proportionate share in the carrying value of Loders' net assets at the transaction date.
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EQUITY |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EQUITY | EQUITY Cumulative Convertible Perpetual Preference Shares — On March 18, 2022, Bunge announced all issued and outstanding shares of its 4.875% Cumulative Convertible Perpetual Preference Shares ("convertible preference shares") would automatically convert into common shares of the Company, par value $0.01 per share, effective March 23, 2022 (the "Conversion Date"). On March 18, 2022, the closing price of the common shares of the Company on the New York Stock Exchange ("NYSE") was $104.91, marking the 20th trading day in the previous 30 trading days that the closing price of the common shares of the Company exceeded 130% of the conversion price, triggering the Company's right under the certificate of designation for the convertible preference shares, at its option, to mandatorily convert the convertible preference shares. The conversion price adjusted from $78.1322, per Note 24 - Equity included in the Company's 2021 Annual Report on Form 10-K, to $77.8482 on February 16, 2022. Each convertible preference share automatically converted into 1.2846 common shares of the Company on the Conversion Date and cash was paid in lieu of fractional common shares of the Company. There were 6,898,268 convertible preference shares issued and outstanding prior to the conversion, which resulted in the issuance of 8,861,515 new common shares of the Company. Additionally, in the first quarter of 2022, prior to the conversion, 1,415 convertible preference shares were voluntarily converted by preference shareholders into 1,816 common shares. As a result of the conversions, no convertible preference shares were issued or outstanding as of September 30, 2022, and all rights of the former holders of the convertible preference shares terminated, as of March 23, 2022. Dividends on the convertible preference shares ceased to accrue on the Conversion Date. Accordingly, holders of the convertible preference shares were not entitled to receive the $1.21875 per share dividend declared by the Company in respect of the convertible preference shares on February 23, 2022, and payable to holders of record on May 15, 2022. Following the conversion, holders of the convertible preference shares as of the Conversion Date were entitled to receive the $0.525 per share dividend declared by the Company with respect to the common shares on February 23, 2022, but only to the extent such holder remained a holder of record of common shares of the Company on May 19, 2022. Share repurchase program — During October 2021, Bunge's Board of Directors approved a new program for the repurchase of up to $500 million of Bunge's issued and outstanding common shares. The program has no expiration date. Under this program, 2,109,115 common shares were repurchased for $200 million during the three and nine month periods ended September 30, 2022. As of September 30, 2022, $300 million remains outstanding for repurchases under the program. During the three and nine month periods ended September 30, 2021, Bunge repurchased 1,298,384 common shares for $100 million, thereby completing a previous $500 million share repurchase program, established May 2015. Dividends on common shares — On August 11, 2022, Bunge announced that the Company's Board of Directors had declared a dividend of $0.625 per common share, payable on December 2, 2022, to shareholders of record on November 18, 2022. During the nine months ended September 30, 2022, the Company's Board of Directors declared total dividends on common shares of $1.775 per common share. 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:
(1)On February 28, 2022, the Company, together with plan participants and related employee unions, agreed to the transition of one of the Company's international defined benefit pension plans to a multi-employer pension plan. Following the transition, the Company accounts for the multi-employer plan similar to a defined contribution plan, resulting in full settlement of the related defined benefit plan obligations. In connection with the settlement, during the nine months ended September 30, 2022, the Company reclassified $27 million (net of $10 million tax expense) in unamortized actuarial gains from Accumulated other comprehensive income (loss), of which $19 million was attributable to Bunge (net of $7 million in tax expense), and $8 million was attributable to redeemable non-controlling interest (net of $3 million in tax expense).
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EARNINGS PER COMMON SHARE |
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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.
(1) Effective March 23, 2022, (the "Conversion Date"), in accordance with the terms of the certificate of designation governing the convertible preference shares, all of the Company's issued and outstanding convertible preference shares were automatically converted into 1.2846 common shares of the Company, par value $0.01 per share. As a result of this conversion, dividends on the convertible preference shares ceased to accrue on the Conversion Date. Accordingly, holders of the convertible preference shares were not entitled to receive the $1.21875 per share dividend declared by the Company in respect of the convertible preference shares on February 23, 2022, and payable to holders of record on May 15, 2022, and no convertible preference shares were issued or outstanding as of September 30, 2022. Refer to Note 19 - Equity for further information. (2) The weighted-average common shares outstanding-diluted exclude approximately zero and 2 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 September 30, 2022, and 2021, respectively. The weighted-average common shares outstanding-diluted exclude approximately zero and 2 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 nine months ended September 30, 2022, and 2021, respectively.
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SEGMENT INFORMATION |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT INFORMATION | SEGMENT INFORMATION The Company's operations are 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, as well as the Company's captive insurance activities, securitization program, and certain income tax assets and liabilities. Transfers between segments are generally valued at market. Segment revenues generated from these transfers are shown in the following table as “Inter-segment revenues.”
(1) Include noncontrolling interests' share of interest and tax with EBIT attributable to noncontrolling interests in order to reconcile to consolidated Net (income) loss attributable to noncontrolling interests and redeemable 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. 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 Net income (loss) attributable to Bunge to Total Segment EBIT follows:
The Company’s Net sales comprise sales from commodity contracts accounted for under ASC 815, Derivatives and Hedging (ASC 815) and sales of other products and services 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:
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BASIS OF PRESENTATION, PRINCIPLES OF CONSOLIDATION, AND SIGNIFICANT ACCOUNTING POLICIES (Policies) |
9 Months Ended |
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Sep. 30, 2022 | |
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, 2021 has been derived from Bunge’s audited consolidated financial statements at that date. Operating results for the nine months ended September 30, 2022 are not necessarily indicative of the results to be expected for the year ending December 31, 2022. The financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2021, forming part of Bunge’s 2021 Annual Report on Form 10-K filed with the SEC on February 24, 2022. On September 4, 2022, Argentina’s government published Emergency Decree 576/2022, Programa de Incremento Exportador (the "Export Program"), aimed at boosting farmer selling, and in turn soybean exports. The Export Program introduced a new preferential U.S. dollar to Argentinian peso foreign exchange rate, available exclusively during the period between September 5 and September 30, 2022, payable to Argentinian farmers on qualifying Argentinian peso denominated sales of soybeans. Purchasers of the qualifying soybeans, including Bunge, received the same preferential rate on U.S. dollar funds placed onshore in Argentina and converted to Argentinian peso to fund soybean purchases. Bunge is both a receiver of the preferential exchange rate for cash converted to Argentinian peso, as well as a payer of the same preferential rate on purchases of soybeans from farmers and related export duties. Transactions and monetary balances related to the Export Program were accounted for at the preferential rate. The net impact of the Export Program on Bunge's condensed consolidated statements of income was not material. On August 1, 2022, Bayer AG (FRA: BAYN) acquired a 65% controlling interest in CoverCress Inc. ("CCI"), a Bunge Ventures portfolio company that has developed a novel low carbon-intensity winter oilseed crop called CoverCress™, by purchasing all equity interests in CCI other than those held by Bunge Ventures and Chevron USA, Inc., a subsidiary of Chevron Corporation ("Chevron", NYSE: CVX). As a result of the transaction, during the three months ended September 30, 2022, the Company recorded an $18 million unrealized gain on its remaining 21.93% ownership interest in CCI within Other income (expense) – net of the Company’s condensed consolidated statements of income. Additionally, the Company reclassified its $44 million investment in CCI as of September 30, 2022 from Long-term Investments, within Other Non-current Assets, to Investments in affiliates in the condensed consolidated balance sheet. Both Bunge's investment in CCI and the above mentioned related unrealized gain are recorded within Corporate and Other activities.
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Cash, Cash Equivalents, Restricted Cash, and Cash held for sale | Cash, Cash Equivalents, Restricted Cash, and Cash held for sale Restricted cash and cash held for sale 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. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements On January 1, 2022, the Company adopted Accounting Standards Update ("ASU") 2021-10, Government Assistance (Topic 832) - Disclosures by Business Entities About Government Assistance, which requires annual disclosures for transactions with a government authority that are accounted for by applying a grant or contribution accounting model by analogy. The guidance is effective for annual periods beginning after December 15, 2021. This guidance will be applied prospectively to all transactions within the scope of the standard that are reflected in financial statements at the date of initial application and new transactions that are entered into after the date of initial application. As this standard requires annual disclosure only, the Company continues to identify its transactions that are subject to this guidance and evaluate the impact of this standard on its condensed consolidated financial statements. On January 1, 2022, the Company adopted 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. This guidance will be applied prospectively to modifications or exchanges occurring on or after the effective date of the amendments. The adoption of this guidance did not have a material impact on Bunge's 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, with subsequent updates through ASU 2021-01, which collectively provide 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 was effective upon issuance, and per the guidance, the Company is applying it prospectively to all eligible contract modifications through December 31, 2022. In March 2021, the United Kingdom's Financial Conduct Authority ("FCA"), responsible for regulating LIBOR, announced that most LIBOR settings would be discontinued after December 31, 2021, except for certain USD LIBOR settings, which will continue through June 30, 2023. In September 2021, the FCA further announced that it will require the LIBOR benchmark administrator to publish sterling and Japanese yen LIBOR settings under a synthetic methodology based on term risk-free rates for the duration of 2022. These synthetic LIBOR settings will be available only for use in legacy contracts and are not for use in new business. Bunge has utilized the relief provided by Topic 848 to ensure financial reporting results reflect the intended continuation of such contracts and arrangements during the period of the market-wide transition to alternative reference rates. The expedients allow an eligible modified contract to be accounted for and presented as a continuation of the existing contract. The Company has identified its LIBOR-based contracts that have been, or will be, impacted by the cessation of LIBOR. The Company continues to actively work with counterparties to incorporate fallback language in negotiated contracts, in addition to incorporating non-LIBOR reference rate and fallback language, when applicable, in new contracts. The modification of contracts is ongoing; however, as of September 30, 2022, the adoption of this guidance has not had a material impact on Bunge's condensed consolidated financial statements.
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BASIS OF PRESENTATION, PRINCIPLES OF CONSOLIDATION, AND SIGNIFICANT ACCOUNTING POLICIES (Tables) |
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restricted Cash | The following table provides a reconciliation of cash and cash equivalents, restricted cash, and cash held for sale, reported within the condensed consolidated balance sheets, which sum to the total of the same such amounts shown in the condensed consolidated statement of cash flows.
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Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash and cash equivalents, restricted cash, and cash held for sale, reported within the condensed consolidated balance sheets, which sum to the total of the same such amounts shown in the condensed consolidated statement of cash flows.
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UKRAINE-RUSSIA WAR (Tables) |
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unusual or Infrequent Items, or Both [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assets and Liabilities held in Ukraine and Russia | The condensed consolidated balance sheet related to the Company’s Ukrainian operations as of September 30, 2022 consists of the following:
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ACQUISITIONS AND DISPOSITIONS (Tables) |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assets 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 sheet as of September 30, 2022. Intercompany balances between the disposal group and other Bunge consolidated entities have been omitted. Assets held for sale comprise $15 million, $37 million, and $6 million, reported under the Agribusiness segment, Refined and Specialty Oils segment, and Corporate and Other, respectively. Liabilities held for sale comprise $4 million and $9 million, reported under the Agribusiness segment and Refined and Specialty Oils segment, respectively.
The following table presents the book values of the major classes of assets and liabilities that were included in the disposal group, reported under the Milling segment:
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TRADE ACCOUNTS RECEIVABLE AND TRADE RECEIVABLES SECURITIZATION PROGRAM (Tables) |
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers and Servicing [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of 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 were as follows:
(1) Long-term portion of the allowance for credit losses included in Other non-current assets.
(1) Long-term portion of the allowance for credit losses included in Other non-current assets.
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Schedule of Assets that Continue to be Recognized, Transferred Financial Assets and Other Financial Assets Managed Together |
(1) Bunge's risk of loss following the sale of the trade receivables is limited to the deferred purchase price ("DPP"), included in Other current assets in the condensed consolidated balance sheets (see Note 7 - Other Current Assets). The DPP will be repaid in cash as receivables are collected, generally within 30 days of collection. Provisions for delinquencies and credit losses on trade receivables sold under the Program were $5 million and $5 million at September 30, 2022 and December 31, 2021, respectively.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.
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INVENTORIES (Tables) |
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Sep. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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.
(1) Includes RMI of $6,144 million and $6,490 million at September 30, 2022, and December 31, 2021, respectively. Of these amounts, $4,834 million and $4,857 million can be attributable to merchandising activities at September 30, 2022, and December 31, 2021, respectively. (2) Includes RMI of $296 million and $257 million at September 30, 2022, and December 31, 2021, respectively. (3) Includes RMI of $3 million and $122 million at September 30, 2022, and December 31, 2021, respectively.
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OTHER CURRENT ASSETS (Tables) |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Current Assets | Other current assets consist of the following:
(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 soybean farmers, 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 $6 million at September 30, 2022, and $3 million at December 31, 2021. Interest earned on secured advances to suppliers of $4 million and $5 million for the three months ended September 30, 2022, and 2021, respectively, and $16 million and $18 million for the nine months ended September 30, 2022, and 2021, 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). (4) 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.
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Schedule of Marketable Securities and Other Short-Term Investments |
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OTHER NON-CURRENT ASSETS (Tables) |
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Other Assets, Noncurrent [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Non-Current Assets | Other non-current assets consist of the following:
(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 September 30, 2022, and December 31, 2021, $9 million and $12 million, respectively, of long-term investments are recorded at fair value.
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Schedule 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.
(1) All amounts in legal collection processes 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 Other non-current assets to Other current assets in later periods depending on the expected date of their realization.
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Schedule 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.
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VARIABLE INTEREST ENTITIES (Tables) |
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Variable Interest Entities | As such these VIEs have been excluded from the below table:
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OTHER CURRENT LIABILITIES (Tables) |
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Current Liabilities | Other current liabilities consist of the following:
(1) The Company records advances on sales when cash payments are received in advance of the Company’s performance and recognizes revenue once the related performance obligation is completed. Advances on sales are impacted by the seasonality of Bunge's business, including the timing of harvests in the northern and southern hemispheres, and amounts at each balance sheet date will generally be recognized in earnings within twelve months or less.
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FAIR VALUE MEASUREMENTS (Tables) |
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Financial Instruments And Fair Value Measurements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of 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.
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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.
(1) These receivables and payables 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. (2) Unrealized gains on derivative contracts are generally included in Other current assets. There were $5 million and $49 million included in Other non-current assets at September 30, 2022, and December 31, 2021, respectively. There were no unrealized gains on derivative contracts included in Assets held for sale at September 30, 2022, and $2 million included in Assets held for sale at December 31, 2021. (3) Other includes the fair values of marketable securities and investments in Other current assets and Other non-current assets. (4) Unrealized losses on derivative contracts are generally included in Other current liabilities. There were $351 million and $49 million included in Other non-current liabilities at September 30, 2022, and December 31, 2021, respectively. There were no unrealized losses on derivative contracts included in Liabilities held for sale at September 30, 2022, and $1 million was included in Liabilities held for sale at December 31, 2021.
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Schedule of 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 nine months ended September 30, 2022, and 2021. These instruments were valued using pricing models that management believes reflect the assumptions that would be used by a marketplace participant.
(1) Readily marketable inventories, derivatives, net, and trade accounts payable, include gains/(losses) of $313 million, $62 million and $3 million, respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at September 30, 2022. (2) Comprises the fair values of marketable securities and investments in Other current assets. Included within Other income (expense) - net of the condensed consolidated statements of income are $7 million in mark-to-market losses related to securities still held at September 30, 2022.
(1) Readily marketable inventories, derivatives, net, and trade accounts payable, includes gains/(losses) of $84 million, $15 million and $7 million, respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at September 30, 2021.
(1) Readily marketable inventories, derivatives, net and trade accounts payable, includes gains/(losses) of $480 million, $89 million and $30 million, respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at September 30, 2022. (2) Comprises the fair values of marketable securities and investments in Other current assets. Included within Other income (expense) - net of the condensed consolidated statements of income are $45 million in mark-to-market losses related to securities still held at September 30, 2022.
(1) Readily marketable inventories, derivatives, net and trade accounts payable, includes gains/(losses) of $347 million, $(19) million and $15 million, respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at September 30, 2021.
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Schedule of 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 nine months ended September 30, 2022, and 2021. These instruments were valued using pricing models that management believes reflect the assumptions that would be used by a marketplace participant.
(1) Readily marketable inventories, derivatives, net, and trade accounts payable, include gains/(losses) of $313 million, $62 million and $3 million, respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at September 30, 2022. (2) Comprises the fair values of marketable securities and investments in Other current assets. Included within Other income (expense) - net of the condensed consolidated statements of income are $7 million in mark-to-market losses related to securities still held at September 30, 2022.
(1) Readily marketable inventories, derivatives, net, and trade accounts payable, includes gains/(losses) of $84 million, $15 million and $7 million, respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at September 30, 2021.
(1) Readily marketable inventories, derivatives, net and trade accounts payable, includes gains/(losses) of $480 million, $89 million and $30 million, respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at September 30, 2022. (2) Comprises the fair values of marketable securities and investments in Other current assets. Included within Other income (expense) - net of the condensed consolidated statements of income are $45 million in mark-to-market losses related to securities still held at September 30, 2022.
(1) Readily marketable inventories, derivatives, net and trade accounts payable, includes gains/(losses) of $347 million, $(19) million and $15 million, respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at September 30, 2021.
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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule 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.
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Schedule 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 nine months ended September 30, 2022 and 2021.
(1) Other includes results from freight, energy and other derivatives.
(1) Other includes results from freight, energy and other derivatives.
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DEBT (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
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COMMITMENTS AND CONTINGENCIES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Liabilities Related to General Claims and Lawsuits Included in Other Non-Current Liabilities | Included in Other non-current liabilities as of September 30, 2022, and December 31, 2021, are the following amounts related to these matters:
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Schedule of Tax Examinations Against Brazilian Subsidiaries | As of September 30, 2022, 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:
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Schedule of Maximum Potential Future Payments Related to Guarantees | Bunge has issued or was a party to the following guarantees at September 30, 2022:
(1) Bunge has issued guarantees to certain financial institutions related to debt of certain of its unconsolidated affiliates. The terms of the guarantees are equal to the terms of the related financings, which have maturity dates through 2034. There are no recourse provisions or collateral that would enable Bunge to recover any amounts paid under these guarantees. In addition, certain Bunge subsidiaries have guaranteed the obligations of certain of their unconsolidated affiliates and in connection therewith have secured their guarantee obligations through a pledge to the financial institutions of certain of their unconsolidated affiliates' shares plus loans receivable from the unconsolidated affiliates in the event that the guaranteed obligations are enforced. Based on amounts drawn under such debt facilities at September 30, 2022, Bunge's potential liability was $228 million, and it has recorded a $3 million obligation related to these guarantees within Other non-current liabilities. (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 value to be received by the lessor at the conclusion of the lease term. These leases expire at various dates from 2022 through 2029. At September 30, 2022, 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.
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OTHER NON-CURRENT LIABILITIES (Tables) |
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Non-Current Liabilities |
(1)On February 28, 2022, the Company, together with plan participants and related employee unions, agreed to the transition of one of the Company's international defined benefit pension plans to a multi-employer pension plan. Following the transition, the Company accounts for the multi-employer plan similar to a defined contribution plan, resulting in full settlement of the related defined benefit plan obligations. In connection with the settlement, during the nine months ended September 30, 2022, the Company recorded a $41 million pretax gain within Other income (expense) - net in its condensed consolidated statements of income, comprising a $4 million settlement of the related defined benefit plan obligations as well as the reclassification of $37 million in unamortized actuarial gains from Accumulated other comprehensive income (loss). Of this pretax gain, $12 million was attributable to Redeemable non-controlling interests. (2)See Note 10- Income Taxes. (3)See Note 12 - Fair Value Measurements.
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EQUITY (Tables) |
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
(1)On February 28, 2022, the Company, together with plan participants and related employee unions, agreed to the transition of one of the Company's international defined benefit pension plans to a multi-employer pension plan. Following the transition, the Company accounts for the multi-employer plan similar to a defined contribution plan, resulting in full settlement of the related defined benefit plan obligations. In connection with the settlement, during the nine months ended September 30, 2022, the Company reclassified $27 million (net of $10 million tax expense) in unamortized actuarial gains from Accumulated other comprehensive income (loss), of which $19 million was attributable to Bunge (net of $7 million in tax expense), and $8 million was attributable to redeemable non-controlling interest (net of $3 million in tax expense).
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EARNINGS PER COMMON SHARE (Tables) |
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Computation of Basic and Diluted Earnings per Common Share | The following table sets forth the computation of basic and diluted earnings per common share.
(1) Effective March 23, 2022, (the "Conversion Date"), in accordance with the terms of the certificate of designation governing the convertible preference shares, all of the Company's issued and outstanding convertible preference shares were automatically converted into 1.2846 common shares of the Company, par value $0.01 per share. As a result of this conversion, dividends on the convertible preference shares ceased to accrue on the Conversion Date. Accordingly, holders of the convertible preference shares were not entitled to receive the $1.21875 per share dividend declared by the Company in respect of the convertible preference shares on February 23, 2022, and payable to holders of record on May 15, 2022, and no convertible preference shares were issued or outstanding as of September 30, 2022. Refer to Note 19 - Equity for further information. (2) The weighted-average common shares outstanding-diluted exclude approximately zero and 2 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 September 30, 2022, and 2021, respectively. The weighted-average common shares outstanding-diluted exclude approximately zero and 2 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 nine months ended September 30, 2022, and 2021, respectively.
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SEGMENT INFORMATION (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Operating Segment Information | Segment revenues generated from these transfers are shown in the following table as “Inter-segment revenues.”
(1) Include noncontrolling interests' share of interest and tax with EBIT attributable to noncontrolling interests in order to reconcile to consolidated Net (income) loss attributable to noncontrolling interests and redeemable 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. 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.
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Schedule of Reconciliation of Total Segment EBIT to Net Income Attributable to Bunge | A reconciliation of Net income (loss) attributable to Bunge to Total Segment EBIT follows:
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Schedule of 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:
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BASIS OF PRESENTATION, PRINCIPLES OF CONSOLIDATION, AND SIGNIFICANT ACCOUNTING POLICIES - RECONCILIATION OF CASH, CASH EQUIVALENTS, AND RESTRICTED CASH (Details) - USD ($) $ in Millions |
Sep. 30, 2022 |
Dec. 31, 2021 |
Sep. 30, 2021 |
---|---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Cash and cash equivalents | $ 956 | $ 902 | $ 1,033 |
Restricted cash included in Other current assets | 5 | $ 3 | 23 |
Cash and cash equivalents in Assets held for sale | 36 | 0 | |
Total | $ 997 | $ 1,056 |
TRADE STRUCTURED FINANCE PROGRAM (Details) - USD ($) $ in Millions |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Dec. 31, 2021 |
|
Trade structured finance program | |||
Weighted-average interest rate of time deposits (as a percent) | 2.84% | 1.08% | |
Total net proceeds from issuances of LCs | $ 5,045 | $ 5,379 | |
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 | $ 6,123 | $ 6,543 |
TRADE ACCOUNTS RECEIVABLE AND TRADE RECEIVABLES SECURITIZATION PROGRAM - NARRATIVE (Details) - Bunge Securitization B.V. - USD ($) $ in Millions |
Mar. 31, 2022 |
Mar. 30, 2022 |
---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Increase in maximum funding amount under trade receivables securitization program | $ 175 | |
Maximum funding under trade receivables securitization program | 1,100 | $ 925 |
Accordion provision | $ 250 |
TRADE ACCOUNTS RECEIVABLE AND TRADE RECEIVABLES SECURITIZATION PROGRAM - CONSIDERATION (Details) - Bunge Securitization B.V. - USD ($) $ in Millions |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Dec. 31, 2021 |
|
Accounts Receivable Securitization Facilities Disclosures | |||
Receivables sold that were derecognized from Bunge's condensed consolidated balance sheet | $ 1,712 | $ 1,426 | |
Deferred purchase price included in Other current assets | $ 607 | 496 | |
Payment term for receivables | 30 days | ||
Delinquencies and credit losses on trade receivables sold | $ 5 | $ 5 | |
Gross receivables sold | 13,182 | $ 10,658 | |
Proceeds received in cash related to transfers of receivables | 12,455 | 10,015 | |
Cash collections from customers on receivables previously sold | 13,035 | 10,061 | |
Discounts related to gross receivables sold included in Selling, general and administrative expense | $ 12 | $ 6 |
INVENTORIES (Details) - USD ($) $ in Millions |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
INVENTORIES | ||
Total | $ 8,112 | $ 8,431 |
Corporate and Other | ||
INVENTORIES | ||
Total | 4 | 2 |
Agribusiness | ||
INVENTORIES | ||
Total | 6,552 | 6,800 |
Readily marketable inventories at fair value | 6,144 | 6,490 |
Agribusiness | Merchandising Activities | ||
INVENTORIES | ||
Readily marketable inventories at fair value | 4,834 | 4,857 |
Refined and Specialty Oils | ||
INVENTORIES | ||
Total | 1,318 | 1,310 |
Readily marketable inventories at fair value | 296 | 257 |
Milling | ||
INVENTORIES | ||
Total | 238 | 319 |
Readily marketable inventories at fair value | $ 3 | $ 122 |
OTHER CURRENT ASSETS - SUMMARY OF OTHER CURRENT ASSETS (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Dec. 31, 2021 |
|
Other Current Assets: | |||||
Unrealized gains on derivative contracts, at fair value | $ 2,484 | $ 2,484 | $ 1,630 | ||
Prepaid commodity purchase contracts | 254 | 254 | 186 | ||
Secured advances to suppliers, net | 305 | 305 | 375 | ||
Recoverable taxes, net | 394 | 394 | 347 | ||
Margin deposits | 596 | 596 | 569 | ||
Deferred purchase price receivable | 607 | 607 | 496 | ||
Marketable securities and other short-term investments | 90 | 90 | 520 | ||
Income taxes receivable | 122 | 122 | 47 | ||
Prepaid expenses | 548 | 548 | 380 | ||
Restricted cash | 5 | $ 23 | 5 | $ 23 | 3 |
Other | 328 | 328 | 198 | ||
Total | 5,733 | 5,733 | 4,751 | ||
Allowance on secured advance to farmers | 6 | 6 | $ 3 | ||
Interest earned on secured advances to suppliers | $ 4 | $ 5 | $ 16 | $ 18 |
OTHER CURRENT ASSETS - MARKETABLE SECURITIES AND OTHER SHORT-TERM INVESTMENTS (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Dec. 31, 2021 |
|
Net Investment Income [Line Items] | |||||
Marketable securities and other short-term investments | $ 90 | $ 90 | $ 520 | ||
Marketable securities at fair value | 73 | 73 | 479 | ||
Unrealized gains (losses) | (9) | $ 42 | (123) | $ 60 | |
Foreign government securities | |||||
Net Investment Income [Line Items] | |||||
Marketable securities and other short-term investments | 39 | 39 | 261 | ||
Corporate debt securities | |||||
Net Investment Income [Line Items] | |||||
Marketable securities and other short-term investments | 10 | 10 | 158 | ||
Equity securities | |||||
Net Investment Income [Line Items] | |||||
Marketable securities and other short-term investments | 26 | 26 | 60 | ||
Other | |||||
Net Investment Income [Line Items] | |||||
Marketable securities and other short-term investments | $ 15 | $ 15 | $ 41 |
OTHER NON-CURRENT ASSETS - COMPOSITION (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2022 |
Dec. 31, 2021 |
|
Other Assets, Noncurrent [Abstract] | ||
Recoverable taxes, net | $ 50 | $ 66 |
Judicial deposits | 109 | 89 |
Other long-term receivables, net | 6 | 11 |
Income taxes receivable | 143 | 139 |
Long-term investments | 218 | 196 |
Affiliate loans receivable | 10 | 16 |
Long-term receivables from farmers in Brazil, net | 30 | 33 |
Unrealized gains on derivative contracts, at fair value | 5 | 49 |
Other | 113 | 120 |
Total | 684 | 719 |
Long-term investments recorded at fair value | 9 | 12 |
Allowance for recoverable taxes | $ 14 | $ 18 |
Minimum initial maturity of affiliate loans receivable | 1 year |
OTHER NON-CURRENT ASSETS - RECEIVABLES FROM FARMERS IN BRAZIL AND ALLOWANCE AMOUNTS (Details) - Long-term receivables - USD ($) $ in Millions |
9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Dec. 31, 2021 |
Sep. 30, 2021 |
Dec. 31, 2020 |
|
Recorded Investment | ||||
Average recorded investment in long-term receivables | $ 98 | $ 92 | ||
Total | 64 | 69 | ||
Allowance | 34 | 36 | $ 54 | $ 63 |
Legal collection process | ||||
Recorded Investment | ||||
Recorded investment for which an allowance has been provided | 38 | 42 | ||
Recorded investment for which no allowance has been provided | 20 | 20 | ||
Allowance | 32 | 35 | ||
Renegotiated amounts | ||||
Recorded Investment | ||||
Recorded investment for which an allowance has been provided | 2 | 3 | ||
Recorded investment for which no allowance has been provided | 4 | 2 | ||
Allowance | 2 | 1 | ||
Other long-term receivables | ||||
Recorded Investment | ||||
Recorded investment for which no allowance has been provided | $ 0 | $ 2 |
OTHER NON-CURRENT ASSETS - ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) - Long-term receivables - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Financing Receivable, Allowance for Credit Loss | ||
Allowance as of January 1 | $ 36 | $ 63 |
Bad debt provisions | 2 | 2 |
Recoveries | (6) | (4) |
Write-offs | (1) | (4) |
Transfers | 1 | (1) |
Foreign exchange translation | 2 | (2) |
Allowance as of September 30 | $ 34 | $ 54 |
VARIABLE INTEREST ENTITIES - SCHEDULE OF VARIABLE INTEREST ENTITIES (Details) - USD ($) $ in Millions |
Sep. 30, 2022 |
Dec. 31, 2021 |
Sep. 30, 2021 |
---|---|---|---|
Current assets: | |||
Cash and cash equivalents | $ 956 | $ 902 | $ 1,033 |
Trade accounts receivable | 2,336 | 2,112 | |
Inventories | 8,112 | 8,431 | |
Other current assets | 5,733 | 4,751 | |
Total current assets | 17,195 | 16,460 | |
Property, plant and equipment, net | 3,408 | 3,499 | |
Total assets | 24,792 | 23,819 | $ 24,109 |
Current liabilities: | |||
Trade accounts payable and accrued liabilities | 4,455 | 4,250 | |
Other current liabilities | 3,563 | 3,425 | |
Total current liabilities | 10,567 | $ 9,324 | |
Variable Interest Entity, Primary Beneficiary | |||
Current assets: | |||
Cash and cash equivalents | 509 | ||
Trade accounts receivable | 5 | ||
Inventories | 74 | ||
Other current assets | 131 | ||
Total current assets | 719 | ||
Property, plant and equipment, net | 61 | ||
Total assets | 780 | ||
Current liabilities: | |||
Trade accounts payable and accrued liabilities | 49 | ||
Other current liabilities | 129 | ||
Total current liabilities | 178 | ||
Total liabilities | $ 178 |
VARIABLE INTEREST ENTITIES - NARRATIVE (Details) R$ in Millions, $ in Millions |
Jun. 10, 2022
BRL (R$)
|
Jun. 10, 2022
USD ($)
|
Sep. 30, 2022
USD ($)
|
Jun. 10, 2022
USD ($)
|
---|---|---|---|---|
Sinagro Produtos Agropecuários S.A. | ||||
Variable Interest Entity [Line Items] | ||||
Long-term debt including current portion, carrying value | R$ 329 | $ 61 | ||
Sinagro Produtos Agropecuários S.A. | ||||
Variable Interest Entity [Line Items] | ||||
Equity holding percentage | 33.00% | 33.00% | ||
Payments to acquire business interest | R$ 280 | $ 53 | ||
Book value of investment, exposure to loss amount | $ 49 | |||
Guarantee amount | R$ 110 | $ 20 |
INCOME TAXES (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 113 | $ 92 | $ 257 | $ 334 |
OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Millions |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Other Liabilities Disclosure [Abstract] | ||
Unrealized losses on derivative contracts, at fair value | $ 2,041 | $ 1,713 |
Accrued liabilities | 686 | 689 |
Advances on sales | 339 | 437 |
Income tax payable | 54 | 168 |
Other | 443 | 418 |
Total | $ 3,563 | $ 3,425 |
Debt - CARRYING AMOUNTS AND FAIR VALUES OF LONG-TERM DEBT (Details) - USD ($) $ in Millions |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Carrying Value | ||
Debt Instrument [Line Items] | ||
Long-term debt, including current portion | $ 3,770 | $ 5,291 |
Fair Value | Level 2 | ||
Debt Instrument [Line Items] | ||
Long-term debt, including current portion | $ 3,800 | $ 5,489 |
RELATED PARTY TRANSACTIONS (Details) - Related parties - Less than |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Dec. 31, 2021 |
|
Supplier Concentration | Cost of Goods Sold | |||||
Related Party Transactions | |||||
Related party purchase and sales composition (percent) | 6.00% | 6.00% | 6.00% | 6.00% | |
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) | 1.00% | 1.00% |
OTHER NON-CURRENT LIABILITIES (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2022 |
Dec. 31, 2021 |
|
Other Liabilities Disclosure [Abstract] | ||
Labor, legal and other provisions | $ 196 | $ 187 |
Pension and post-retirement obligations | 207 | 227 |
Uncertain income tax positions | 65 | 73 |
Unrealized loss on derivative contracts, at fair value | 351 | 49 |
Other | 99 | 122 |
Other non-current liabilities | 918 | $ 658 |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pre-tax gain recorded in other income (expense) - net | 37 | |
Decrease in recorded pension benefit obligations | 4 | |
Other Income (Expense) - Net | Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pre-tax gain recorded in other income (expense) - net | 41 | |
Other Income (Expense) - Net | Pension Plan | Non- Controlling Interests | ||
Defined Benefit Plan Disclosure [Line Items] | ||
After tax gain recorded in adjustment of redeemable noncontrolling interests | $ 12 |
REDEEMABLE NONCONTROLLING INTEREST (Details) - Loders - USD ($) $ in Millions |
Aug. 05, 2022 |
Sep. 30, 2022 |
Aug. 04, 2022 |
---|---|---|---|
Redeemable Noncontrolling Interest [Line Items] | |||
Interest acquired | 70.00% | ||
Loders | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Ownership interest by minority shareholder | 30.00% | ||
Voting interests additionally acquired | 10.00% | ||
Business acquisition in cash | $ 102 | ||
Loders | Minimum | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Interest acquired | 70.00% | ||
Loders | Maximum | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Interest acquired | 80.00% |
SEGMENT INFORMATION - NARRATIVE (Details) |
9 Months Ended |
---|---|
Sep. 30, 2022
segment
| |
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 - NET INCOME TO SEGMENT EBIT (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Reconciliation of total segment EBIT: | ||||
Net income (loss) attributable to Bunge | $ 380 | $ 653 | $ 1,274 | $ 1,847 |
Interest income | (30) | (19) | (50) | (34) |
Interest expense | 103 | 57 | 306 | 184 |
Income tax expense (benefit) | 113 | 92 | 257 | 334 |
Noncontrolling interests' share of interest and tax | 2 | 1 | (3) | (2) |
Total Segment EBIT from continuing operations | $ 568 | $ 784 | $ 1,784 | $ 2,329 |
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