Table of Contents

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
 
ýQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended SeptemberJune 30, 20172020
OR
¨TRANSITION 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
For the transition period from        to       
Commission File Number 001-16625
BUNGE LIMITED
(Exact name of registrant as specified in its charter)
Bermuda98-0231912
(State or other jurisdiction of incorporation or

organization)
(I.R.S. Employer Identification No.)
50 Main Street, White Plains, New York1391 Timberlake Manor Parkway10606
St. Louis
Missouri63017
(Address of principal executive offices)(Zip Code)
(914) 684-2800(314) 292-2000
(Registrant’s telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes  ý  No  o
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes  ý  No  o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filerý
ý
Accelerated filer¨
☐
Non-accelerated filer¨

(Do not check if a smaller

reporting company)
☐
Smaller reporting company¨
☐
Emerging growth company¨
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Securities Exchange Act of 1934).  Yes    No  
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Securities Exchange Act of 1934).  Yes  ¨☐  No  ý
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Shares, $0.01 par value per shareBGNew York Stock Exchange
As of October 25, 2017July 23, 2020, the number of shares issued of the registrant was:
Common shares, par value $.01 per share: 140,625,046139,642,911


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PART I—I — FINANCIAL INFORMATION
ITEM 1.FINANCIAL STATEMENTS
ITEM 1. FINANCIAL STATEMENTS

BUNGE LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(Unaudited)
(U.S. dollars in millions, except per share data)
  Three Months Ended
September 30,		 Nine Months Ended
September 30,
  2017 2016 2017 2016
Net sales $11,423
 $11,423
 $34,189
 $30,880
Cost of goods sold (10,933) (10,867) (32,884) (29,174)
Gross profit 490
 556
 1,305
 1,706
Selling, general and administrative expenses (340) (324) (1,046) (941)
Interest income 9
 13
 29
 37
Interest expense (64) (73) (191) (189)
Foreign exchange gains (losses) 1
 (6) 108
 9
Other income (expense) – net 25
 4
 24
 (14)
Income (loss) from continuing operations before income tax 121
 170
 229
 608
Income tax (expense) benefit (29) (45) (2) (118)
Income (loss) from continuing operations 92
 125
 227
 490
Income (loss) from discontinued operations, net of tax —
 5
 —
 (8)
Net income (loss) 92
 130
 227
 482
Net (income) loss attributable to noncontrolling interests —

(12)
(7)
(8)
Net income (loss) attributable to Bunge 92
 118
 220
 474
Convertible preference share dividends and other obligations (8) (2) (25) (27)
Net income (loss) available to Bunge common shareholders $84
 $116
 $195
 $447
         
Earnings per common share—basic (Note 17)  
  
  
  
Net income (loss) from continuing operations $0.59
 $0.80
 $1.39
 $3.25
Net income (loss) from discontinued operations —
 0.03
 (0.01) (0.06)
         
Net income (loss) attributable to Bunge common shareholders $0.59
 $0.83
 $1.38
 $3.19
         
Earnings per common share—diluted (Note 17)  
  
  
  
Net income (loss) from continuing operations $0.59
 $0.79
 $1.38
 $3.24
Net income (loss) from discontinued operations —
 0.04
 (0.01) (0.05)
         
Net income (loss) attributable to Bunge common shareholders $0.59
 $0.83
 $1.37
 $3.19
         
Dividends declared per common share $0.46
 $0.42
 $1.34
 $1.22
Three Months Ended
June 30,		Six Months Ended
June 30,
 2020201920202019
Net sales$9,462  $10,096  $18,635  $20,034  
Cost of goods sold(8,357) (9,584) (17,356) (19,085) 
Gross profit1,105  512  1,279  949  
Selling, general and administrative expenses(346) (335) (641) (640) 
Interest income6  7  13  14  
Interest expense(62) (88) (139) (163) 
Foreign exchange gains (losses)27  (11) 21  (18) 
Other income (expense) – net27  181  20  205  
Income (loss) from affiliates(67) 6  (111) 13  
Income (loss) before income tax690  272  442  360  
Income tax (expense) benefit(168) (60) (113) (98) 
Net income (loss)522  212  329  262  
Net (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests(6) 2  3  (3) 
Net income (loss) attributable to Bunge516  214  332  259  
Convertible preference share dividends(9) (9) (17) (17) 
Adjustment of redeemable noncontrolling interest5  —  (10) —  
Net income (loss) available to Bunge common shareholders$512  $205  $305  $242  
Earnings per common share—basic (Note 19)    
Net income (loss) attributable to Bunge common shareholders - basic$3.62  $1.46  $2.15  $1.72  
Earnings per common share—diluted (Note 19)    
Net income (loss) attributable to Bunge common shareholders - diluted$3.47  $1.43  $2.14  $1.71  
The accompanying notes are an integral part of these condensed consolidated financial statements.

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BUNGE LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)
(U.S. dollars in millions)
 Three Months Ended
September 30,		 Nine Months Ended
September 30,		Three Months Ended
June 30,		Six Months Ended
June 30,
 2017 2016 2017 2016 2020201920202019
Net income (loss) $92
 $130
 $227
 $482
Net income (loss)$522  $212  $329  $262  
Other comprehensive income (loss):  
  
  
  
Other comprehensive income (loss):    
Foreign exchange translation adjustment 332
 (87) 458
 898
Foreign exchange translation adjustment(98) 97  (950) 68  
Unrealized gains (losses) on designated cash flow and net investment hedges, net of tax (expense) benefit of nil and nil in 2017 and nil and $(1) in 2016 (37) —
 (108) (339)
Unrealized gains (losses) on investments, net of tax (expense) benefit of nil and $(1) in 2017, nil and nil in 2016 —
 —
 1
 —
Reclassification of realized net losses (gains) to net income, net of tax expense (benefit) of $2 and $1 in 2017, nil and nil in 2016 (12) (13) (31) (13)
Pension adjustment, net of tax (expense) benefit of $(5) and $(1) in 2017, nil and nil in 2016 9
 1
 9
 1
Unrealized gains (losses) on designated hedges, net of tax benefit (expense) of $1 and $6 in 2020 and ($1) and ($1) in 2019Unrealized gains (losses) on designated hedges, net of tax benefit (expense) of $1 and $6 in 2020 and ($1) and ($1) in 20193  (8) 54  (31) 
Reclassification of realized net (gains) losses to net income, net of tax (benefit) expense of ($1) and nil in 2020 and $1 and $1 in 2019Reclassification of realized net (gains) losses to net income, net of tax (benefit) expense of ($1) and nil in 2020 and $1 and $1 in 20194  (1) 1  (2) 
Total other comprehensive income (loss) 292
 (99) 329
 547
Total other comprehensive income (loss)(91) 88  (895) 35  
Total comprehensive income (loss) 384
 31
 556
 1,029
Total comprehensive income (loss)431  300  (566) 297  
Less: comprehensive (income) loss attributable to noncontrolling interests (3) (20) (20) (20)
Less: comprehensive (income) loss attributable to noncontrolling interests and redeemable noncontrolling interestsLess: comprehensive (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests(18) (5) 7  (1) 
Total comprehensive income (loss) attributable to Bunge $381
 $11
 $536
 $1,009
Total comprehensive income (loss) attributable to Bunge$413  $295  $(559) $296  
The accompanying notes are an integral part of these condensed consolidated financial statements.



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BUNGE LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(U.S. dollars in millions, except share data)
 September 30,
2017		 December 31,
2016		June 30,
2020		December 31,
2019
ASSETS  
  
ASSETS  
Current assets:  
  
Current assets:  
Cash and cash equivalents $389
 $934
Cash and cash equivalents$277  $320  
Time deposits under trade structured finance program (Note 5)
 —
 64
Trade accounts receivable (less allowances of $104 and $122) (Note 13) 1,867
 1,676
Inventories (Note 6) 5,848
 4,773
Other current assets (Note 7) 3,881
 3,645
Trade accounts receivable (less allowances of $146 and $108) (Note 6)Trade accounts receivable (less allowances of $146 and $108) (Note 6)1,526  1,705  
Inventories (Note 7)Inventories (Note 7)6,007  5,038  
Assets held for sale (Note 3)Assets held for sale (Note 3)296  72  
Other current assets (Note 8)Other current assets (Note 8)3,362  3,113  
Total current assets 11,985
 11,092
Total current assets11,468  10,248  
Property, plant and equipment, net 5,420
 5,099
Property, plant and equipment, net3,714  4,132  
Operating lease assets (Note 4)Operating lease assets (Note 4)776  796  
Goodwill 515
 373
Goodwill550  611  
Other intangible assets, net 338
 336
Other intangible assets, net524  583  
Investments in affiliates 418
 373
Investments in affiliates565  827  
Deferred income taxes 548
 524
Deferred income taxes295  442  
Time deposits under trade structured finance program (Note 5) 313
 464
Other non-current assets (Note 8) 1,015
 927
Other non-current assets (Note 9)Other non-current assets (Note 9)667  678  
Total assets $20,552
 $19,188
Total assets$18,559  $18,317  
LIABILITIES AND EQUITY  
  
LIABILITIES AND EQUITY  
Current liabilities:  
  
Current liabilities:  
Short-term debt $1,021
 $257
Current portion of long-term debt (Note 12) 287
 938
Letter of credit obligations under trade structured finance program (Note 5) 313
 528
Trade accounts payable (includes $925 and $522 carried at fair value) 3,650
 3,485
Other current liabilities (Note 10) 2,197
 2,476
Short-term debt (Note 14)Short-term debt (Note 14)$1,535  $771  
Current portion of long-term debt (Note 14)Current portion of long-term debt (Note 14)522  507  
Trade accounts payable (includes $514 and $378 carried at fair value)Trade accounts payable (includes $514 and $378 carried at fair value)2,602  2,842  
Current operating lease obligations (Note 4)Current operating lease obligations (Note 4)220  216  
Liabilities held for sale (Note 3)Liabilities held for sale (Note 3)150  4  
Other current liabilities (Note 11)Other current liabilities (Note 11)2,467  2,255  
Total current liabilities 7,468
 7,684
Total current liabilities7,496  6,595  
Long-term debt (Note 12) 4,246
 3,069
Long-term debt (Note 14)Long-term debt (Note 14)3,980  3,716  
Deferred income taxes 246
 239
Deferred income taxes309  329  
Non-current operating lease obligations (Note 4)Non-current operating lease obligations (Note 4)503  539  
Other non-current liabilities 842
 853
Other non-current liabilities665  711  
Commitments and contingencies (Note 15) 

 

Equity (Note 16):
  
  
Convertible perpetual preference shares, par value $.01; authorized, issued and outstanding: 2017 - 6,899,700 and 2016 – 6,900,000 shares (liquidation preference $100 per share) 690
 690
Common shares, par value $.01; authorized – 400,000,000 shares; issued and outstanding: 2017 – 140,608,657 shares, 2016 – 139,500,862 shares 1
 1
Redeemable noncontrolling interest (Note 17)
Redeemable noncontrolling interest (Note 17)
397  397  
Equity (Note 18):
Equity (Note 18):
  
Convertible perpetual preference shares, par value $.01; authorized – 21,000,000 shares, issued and outstanding: 2020 and 2019 - 6,899,683 shares (liquidation preference $100 per share)Convertible perpetual preference shares, par value $.01; authorized – 21,000,000 shares, issued and outstanding: 2020 and 2019 - 6,899,683 shares (liquidation preference $100 per share)690  690  
Common shares, par value $.01; authorized – 400,000,000 shares; issued and outstanding: 2020 – 139,640,018 shares, 2019 – 141,813,142 sharesCommon shares, par value $.01; authorized – 400,000,000 shares; issued and outstanding: 2020 – 139,640,018 shares, 2019 – 141,813,142 shares1  1  
Additional paid-in capital 5,223
 5,143
Additional paid-in capital5,356  5,329  
Retained earnings 8,214
 8,208
Retained earnings6,581  6,437  
Accumulated other comprehensive income (loss) (Note 16) (5,662) (5,978)
Treasury shares, at cost - 2017 and 2016 - 12,882,313 shares, respectively (920) (920)
Accumulated other comprehensive income (loss) (Note 18)Accumulated other comprehensive income (loss) (Note 18)(6,515) (5,624) 
Treasury shares, at cost - 2020 - 15,428,313 and 2019 - 12,882,313 sharesTreasury shares, at cost - 2020 - 15,428,313 and 2019 - 12,882,313 shares(1,020) (920) 
Total Bunge shareholders’ equity 7,546
 7,144
Total Bunge shareholders’ equity5,093  5,913  
Noncontrolling interests 204
 199
Noncontrolling interests116  117  
Total equity 7,750
 7,343
Total equity5,209  6,030  
Total liabilities and equity $20,552
 $19,188
Total liabilities, redeemable noncontrolling interest and equityTotal liabilities, redeemable noncontrolling interest and equity$18,559  $18,317  
The accompanying notes are an integral part of these condensed consolidated financial statements.

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BUNGE LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(U.S. dollars in millions)
 Nine Months Ended
September 30,		Six Months Ended June 30,
 2017 2016 20202019
OPERATING ACTIVITIES  
  
OPERATING ACTIVITIES  
Net income (loss) $227
 $482
Net income (loss)$329  $262  
Adjustments to reconcile net income (loss) to cash provided by (used for) operating activities:  
  
Adjustments to reconcile net income (loss) to cash provided by (used for) operating activities:  
Impairment charges 26
 17
Impairment charges1  22  
Foreign exchange (gain) loss on net debt 28
 115
Foreign exchange (gain) loss on net debt(107) 38  
Bad debt expense 8
 16
Bad debt expense65  4  
Depreciation, depletion and amortization 448
 402
Depreciation, depletion and amortization217  294  
Share-based compensation expense 27
 31
Share-based compensation expense27  17  
Deferred income tax (8) 105
Deferred income tax loss (benefit)Deferred income tax loss (benefit)50  3  
Other, net 14
 1
Other, net105  (13) 
Changes in operating assets and liabilities, excluding the effects of acquisitions:  
  
Changes in operating assets and liabilities, excluding the effects of acquisitions and dispositions:Changes in operating assets and liabilities, excluding the effects of acquisitions and dispositions:  
Trade accounts receivable (200) 28
Trade accounts receivable(99) (106) 
Inventories (837) (487)Inventories(1,308) 5  
Secured advances to suppliers 101
 205
Secured advances to suppliers(218) (120) 
Trade accounts payable and accrued liabilities 265
 233
Trade accounts payableTrade accounts payable75  (503) 
Advances on sales (200) (157)Advances on sales(84) (169) 
Net unrealized gain (loss) on derivative contracts 153
 (157)
Net unrealized (gains) losses on derivative contractsNet unrealized (gains) losses on derivative contracts3  (214) 
Margin deposits (26) (44)Margin deposits(90) 121  
Marketable securities (147) —
Marketable securities62  (272) 
Beneficial interest in securitized trade receivablesBeneficial interest in securitized trade receivables(761) (521) 
Other, net (181) (155)Other, net231  69  
Cash provided by (used for) operating activities (302) 635
Cash provided by (used for) operating activities(1,502) (1,083) 
INVESTING ACTIVITIES  
  
INVESTING ACTIVITIES  
Payments made for capital expenditures (485) (488)Payments made for capital expenditures(127) (265) 
Acquisitions of businesses (net of cash acquired) (369) —
Proceeds from investments 398
 584
Proceeds from investments238  213  
Payments for investments (686) (515)Payments for investments(226) (277) 
Settlement of net investment hedges (23) (210)
Settlements of net investment hedgesSettlements of net investment hedges66  (39) 
Proceeds from beneficial interest in securitized trade receivablesProceeds from beneficial interest in securitized trade receivables748  547  
Payments for investments in affiliates (77) (24)Payments for investments in affiliates(2) (6) 
Other, net 8
 (14)Other, net31  12  
Cash provided by (used for) investing activities (1,234) (667)Cash provided by (used for) investing activities728  185  
FINANCING ACTIVITIES  
  
FINANCING ACTIVITIES  
Net change in short-term debt with maturities of 90 days or less 596
 (128)Net change in short-term debt with maturities of 90 days or less719  1,198  
Proceeds from short-term debt with maturities greater than 90 days 360
 273
Proceeds from short-term debt with maturities greater than 90 days90  44  
Repayments of short-term debt with maturities greater than 90 days (206) (292)Repayments of short-term debt with maturities greater than 90 days(4) (104) 
Proceeds from long-term debt 6,502
 7,933
Proceeds from long-term debt1,762  3,262  
Repayments of long-term debt (6,100) (7,430)Repayments of long-term debt(1,567) (3,496) 
Proceeds from the exercise of options for common shares 58
 —
Proceeds from the exercise of options for common shares2  7  
Repurchases of common shares —
 (200)Repurchases of common shares(100) —  
Dividends paid (207) (191)
Acquisition of noncontrolling interest —
 (39)
Dividends paid to common and preference shareholdersDividends paid to common and preference shareholders(159) (158) 
Other, net (34) (28)Other, net(17) (8) 
Cash provided by (used for) financing activities 969
 (102)Cash provided by (used for) financing activities726  745  
Effect of exchange rate changes on cash and cash equivalents 22
 20
Net increase (decrease) in cash and cash equivalents (545) (114)
Cash and cash equivalents, beginning of period 934
 411
Cash and cash equivalents, end of period $389
 $297
Effect of exchange rate changes on cash and cash equivalents and restricted cashEffect of exchange rate changes on cash and cash equivalents and restricted cash5  8  
Net increase (decrease) in cash and cash equivalents and restricted cashNet increase (decrease) in cash and cash equivalents and restricted cash(43) (145) 
Cash and cash equivalents and restricted cash - beginning of periodCash and cash equivalents and restricted cash - beginning of period322  393  
Cash and cash equivalents and restricted cash - end of periodCash and cash equivalents and restricted cash - end of period$279  $248  
The accompanying notes are an integral part of these condensed consolidated financial statements.

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BUNGE LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS
(Unaudited)
(U.S. dollars in millions, except share data)

Convertible Preference SharesCommon Shares
Redeemable Non- Controlling InterestsSharesAmountSharesAmountAdditional Paid-in CapitalRetained EarningsAccumulated Other Comprehensive Income (Loss)Treasury SharesNon- Controlling InterestsTotal Equity
Balance, April 1, 2020$394  6,899,683  $690  142,146,260  $1  $5,344  $6,158  $(6,411) $(920) $110  $4,972  
Net income (loss)(1) —  —  —  —  —  516  —  —  7  523  
Other comprehensive income (loss)9  —  —  —  —  —  —  (104) —  4  (100) 
Redemption value adjustment(5) —  —  —  —  —  5  —  —  —  5  
Dividends on common shares, $0.50 per share—  —  —  —  —  —  (71) —  —  —  (71) 
Dividends on preference shares, $1.21875 per share—  —  —  —  —  —  (9) —  —  —  (9) 
Dividends to noncontrolling interests on subsidiary common stock—  —  —  —  —  —  —  —  —  —  —  
Acquisition of noncontrolling interest—  —  —  —  —  —  (18) —  —  (5) (23) 
Share-based compensation expense—  —  —  —  —  12  —  —  —  —  12  
Repurchase of common shares—  —  —  (2,546,000) —  —  —  —  (100) —  (100) 
Issuance of common shares, including stock dividends—  —  —  39,758  —  —  —  —  —  —  —  
Balance, June 30, 2020$397  6,899,683  $690  139,640,018  $1  $5,356  $6,581  $(6,515) $(1,020) $116  $5,209  
 Convertible
Preference Shares		Common Shares
 Redeemable
Non-
Controlling
Interests		SharesAmountSharesAmountAdditional
Paid-in
Capital		Retained
Earnings		Accumulated
Other
Comprehensive
Income (Loss)		Treasury
Shares		Non-
Controlling
Interests		Total
Equity
Balance, April 1, 2019$421  6,899,683  $690  141,469,061  $1  $5,284  $8,045  $(7,000) $(920) $204  $6,304  
Net income (loss)(1) —  —  —  —  —  214  —  —  (1) 213  
Other comprehensive income (loss)5  —  —  —  —  —  —  81  —  2  83  
Dividends on common shares, $0.50 per share—  —  —  —  —  —  (71) —  —  —  (71) 
Dividends on preference shares, $1.21875 per share—  —  —  —  —  —  (9) —  —  —  (9) 
Dividends to noncontrolling interests on subsidiary common stock—  —  —  —  —  —  —  —  —  (11) (11) 
Share-based compensation expense—  —  —  —  —  13  —  —  —  —  13  
Issuance of common shares, including stock dividends—  —  —  64,661  —  3  —  —  —  —  3  
Balance, June 30, 2019$425  6,899,683  $690  141,533,722  $1  $5,300  $8,179  $(6,919) $(920) $194  $6,525  
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     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, 2017 $—
  6,900,000
 $690
 139,500,862
 $1
 $5,143
 $8,208
 $(5,978) $(920) $199
 $7,343
Net income (loss) —
  —
 —
 —
 —
 —
 220
 —
 —
 7
 227
Other comprehensive income (loss) —
  —
 —
 —
 —
 —
 —
 316
 —
 13
 329
Dividends on common shares —
  —
 —
 —
 —
 —
 (189) —
 —
 —
 (189)
Dividends on preference shares —
  —
 —
 —
 —
 —
 (25) —
 —
 —
 (25)
Dividends to noncontrolling interests on subsidiary common stock —
  —
 —
 —
 —
 —
 —
 —
 —
 (10) (10)
Noncontrolling decrease from redemption —
  —
 —
 —
 —
 —
 —
 —
 —
 (5) (5)
Share-based compensation expense —
  —
 —
 —
 —
 27
 —
 —
 —
 —
 27
Issuance of common shares —
  (300) —
 1,107,795
 —
 53
 —
 —
 —
 —
 53
Balance, September 30, 2017 $—
  6,899,700
 $690
 140,608,657
 $1
 $5,223
 $8,214
 $(5,662) $(920) $204
 $7,750
 Convertible
Preference Shares		Common Shares
 Redeemable
Non-
Controlling
Interests		SharesAmountSharesAmountAdditional
Paid-in
Capital		Retained
Earnings		Accumulated
Other
Comprehensive
Income (Loss)		Treasury
Shares		Non-
Controlling
Interests		Total
Equity
Balance, January 1, 2020$397  6,899,683  $690  141,813,142  $1  $5,329  $6,437  $(5,624) $(920) $117  $6,030  
Net income (loss)(9) —  —  —  —  —  332  —  —  6  338  
Other comprehensive income (loss)(1) —  —  —  —  —  —  (891) —  (3) (894) 
Redemption value adjustment10  —  —  —  —  —  (10) —  —  —  (10) 
Dividends on common shares, $1.00 per share—  —  —  —  —  —  (142) —  —  —  (142) 
Dividends on preference shares, $2.4375 per share—  —  —  —  —  —  (17) —  —  —  (17) 
Dividends to noncontrolling interests on subsidiary common stock—  —  —  —  —  —  —  —  —  (4) (4) 
Acquisition of noncontrolling interest—  —  —  —  —  —  (17) —  —  —  (17) 
Share-based compensation expense—  —  —  —  —  27  —  —  —  —  27  
Repurchase of common shares—  —  —  (2,546,000) —  —  —  —  (100) —  (100) 
Issuance of common shares, including stock dividends—  —  —  372,876  —  —  (2) —  —  —  (2) 
Balance, June 30, 2020$397  6,899,683  $690  139,640,018  $1  $5,356  $6,581  $(6,515) $(1,020) $116  $5,209  
 Convertible
Preference Shares		Common Shares
 Redeemable
Non-
Controlling
Interests		SharesAmountSharesAmountAdditional
Paid-in
Capital		Retained
Earnings		Accumulated
Other
Comprehensive
Income (Loss)		Treasury
Shares		Non-
Controlling
Interests		Total
Equity
Balance, January 1, 2019$424  6,899,683  $690  141,111,081  $1  $5,278  $8,059  $(6,935) $(920) $205  $6,378  
Net income (loss)4  —  —  —  —  —  259  —  —  (1) 258  
Other comprehensive income (loss)(3) —  —  —  —  —  —  37  —  1  38  
Dividends on common shares, $1.00 per share—  —  —  —  —  —  (142) —  —  —  (142) 
Dividends on preference shares, $2.4375 per share—  —  —  —  —  —  (17) —  —  —  (17) 
Dividends to noncontrolling interests on subsidiary common stock—  —  —  —  —  —  —  —  —  (12) (12) 
Contribution from noncontrolling interest—  —  —  —  —  —  —  —  —  1  1  
Share-based compensation expense—  —  —  —  —  17  —  —  —  —  17  
Impact of adoption of new accounting standards—  —  —  —  —  —  21  (21) —  —  —  
Issuance of common shares, including stock dividends—  —  —  422,641  —  5  (1) —  —  —  4  
Balance, June 30, 2019$425  6,899,683  $690  141,533,722  $1  $5,300  $8,179  $(6,919) $(920) $194  $6,525  
     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, 2016 $37
  6,900,000
 $690
 142,483,467
 $1
 $5,105
 $7,725
 $(6,360) $(720) $211
 $6,652
Net income (loss) 1
  —
 —
 —
 —
 —
 474
 —
 —
 8
 482
Accretion of noncontrolling interest 2
  —
 —
 —
 —
 (2) —
 —
 —
 —
 (2)
Other comprehensive income (loss) (1)  —
 —
 —
 —
 —
 —
 535
 —
 12
 547
Dividends on common shares —
  —
 —
 —
 —
 —
 (170) —
 —
 —
 (170)
Dividends on preference shares —
  —
 —
 —
 —
 —
 (25) —
 —
 —
 (25)
Dividends to noncontrolling interests on subsidiary common stock —
  —
 —
 —
 —
 —
 —
 —
 —
 (7) (7)
Noncontrolling decrease from redemption —
  —
 —
 —
 —
 1
 —
 —
 —
 (8) (7)
Deconsolidation of a subsidiary —
  —
 —
 —
 —
 —
 —
 —
 —
 (22) (22)
Acquisition of noncontrolling interest (39)  —
 —
 —
 —
 —
 —
 —
 —
 —
 —
Share-based compensation expense —
  —
 —
 —
 —
 31
 —
 —
 —
 —
 31
Repurchase of common shares —
  —
 —
 (3,296,230) —
 —
 —
 —
 (200) —
 (200)
Issuance of common shares —
  —
 —
 265,539
 —
 (2) —
 —
 —
 —
 (2)
Balance, September 30, 2016 $—
  6,900,000
 $690
 139,452,776
 $1
 $5,133
 $8,004
 $(5,825) $(920) $194
 $7,277

The accompanying notes are an integral part of these condensed consolidated financial statements.

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Table of Contents
BUNGE LIMITED AND SUBSIDIARIES
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1.BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION
1. 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, 20162019 has been derived from Bunge’s audited consolidated financial statements at that date. Operating results for the ninesix months ended SeptemberJune 30, 20172020 are not necessarily indicative of the results to be expected for the year ending December 31, 2017.2020. The financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2016,2019, forming part of Bunge’s 20162019 Annual Report on Form 10-K filed with the SEC on February 28, 2017.21, 2020.
Effective January 1, 2020, the Company changed its segment reporting to separately disclose Corporate and Other activities from its reporting segments, as further described in Note 20 - Segment Information. Certain reclassifications of prior period amounts within the reporting segments have been made to conform to current presentation.
2.ACCOUNTING PRONOUNCEMENTS

        Cash, Cash Equivalents, and Restricted Cash
        Restricted cash is included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the condensed consolidated statement of cash flows. The following table provides a reconciliation of cash and cash equivalents, and restricted cash reported within the condensed consolidated balance sheet that sums to the total of the same such amounts shown in the condensed consolidated statements of cash flows.
(US$ in millions)June 30, 2020June 30, 2019
Cash and cash equivalents$277  $238  
Restricted cash included in other current assets2  10  
Total$279  $248  

2. ACCOUNTING PRONOUNCEMENTS
The below outlines new accounting pronouncements issued in 2017,2020, as well as updates on certain previously disclosed Accounting StandardStandards Updates (“ASU”("ASUs") not yet adopted..
New Accounting Pronouncements —
        In August 2017,March 2020, the Financial Accounting Standards Board (“FASB”("FASB") issued ASU 2017-12, Derivatives2020-04, Reference Rate Reform (Topic 848)- Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides temporary optional expedients and Hedging (Topic 815): Targeted Improvementexceptions to Accounting for Hedging Activities, which better alignsthe U.S. GAAP guidance on contract modifications and hedge accounting with an organization’s risk management activities in itsto ease the financial statements. In addition,reporting burden related to the ASU simplifiesexpected market transition from the application of hedge accountingLondon Interbank Offered Rate ("LIBOR") and other interbank offered rates to alternative reference rates. The guidance in areas where practice issues exist. The ASU is effective for fiscal yearsupon issuance and to be applied prospectively from any date beginning afterMarch 12, 2020 through December 15, 2018, and interim periods within those fiscal years. Early adoption31, 2022. The Company is permitted, including interim periods within those years. Bunge is assessingevaluating the impact of this standard on its consolidated financial statements.
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Table of Contents
In May 2017, the FASB��issued ASU 2017-10, Service Concession Arrangements (Topic 853): Determining the Customer of the Operation Services. Topic 853 provides guidance for operating entities when they enter into a service concession arrangement with a public-sector grantor who both:
Controls or has the ability to modify or approve the services to be provided with the infrastructure and the related price
Controls, through ownership, beneficial entitlement, or otherwise, any residual interest in the infrastructure at the end of the term of the arrangement.
In a service concession arrangement within the scope of Topic 853, the operating entity should not account for the infrastructure as a lease or as property, plant, and equipment. An operating entity should refer to other Topics to account for various aspects of a service concession arrangement. For example, an operating entity should account for revenue relating to construction, upgrade, or operation services in accordance with Topic 606, Revenue from Contracts with Customers.
The amendments in this ASU apply to the accounting by operating entities for service concession arrangements within the scope of Topic 853. These updates will be effective when Bunge adopts the updates to Topic 606 on January 1, 2018. The adoption of this standard is not expected to have a material impact on Bunge's consolidated financial statements.
In May 2017,December 2019, the FASB issued ASU 2017-09, Compensation 2019-12, Income Taxes (Topic 740)- Stock Compensation (Topic 718): Scope of ModificationSimplifying the Accounting. The new guidance requires an entity for Income Taxes, which reduces complexity in the accounting for income taxes by removing certain exceptions to apply modification accounting to share-based payment awards only if the fair value, vesting conditions, or classification of the award as equity or liability changes as a result of a changegeneral principles in terms or conditions of the award.Topic 740. The amendments in this ASUalso improve consistent application of and simplify U.S. GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The amendments are effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. Early adoption is permitted. The amendments in the ASU should be applied prospectively to an award modified on or after the adoption date. The adoption of this standard is not expected to have a material impact on Bunge's consolidated financial statements.

In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which changes the presentation of net periodic benefit cost related to employer sponsored defined benefit plans and other postretirement benefits. Service cost should be included in the same income statement line item as other compensation costs arising from services rendered during the period, while other components of net periodic benefit pension cost should be presented separately outside of operating income. Additionally, only service costs may be capitalized in assets. The standard is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. Early adoption is permitted. Entities should apply the guidance on the presentation of the components of net periodic benefit cost in the income statement retrospectively. The guidance limiting the capitalization of net periodic benefit cost in assets to the service cost component should be applied prospectively. The adoption of this standard is not expected to have a material impact on Bunge’s consolidated financial statements.
In February 2017, the FASB issued ASU 2017-05, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. The new guidance clarifies the scope of Subtopic 610-20 on the sale or transfer of nonfinancial assets to noncustomers, including partial sales. The standard is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. Early adoption is permitted. The new requirements may be implemented either retrospectively to each period presented in the financial statements, or retrospectively with a cumulative-effect adjustment to retained earnings at the date of initial application. The adoption of this standard is not expected to have a material impact on Bunge’s consolidated financial statements.
In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The new guidance eliminates Step 2 from the goodwill impairment test. Instead an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The standard is effective for annual or interim impairment tests in fiscal years beginning after December 15, 2019.2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption of the amendments is permitted. The Company is evaluating the impact of this standard on its consolidated financial statements.
Recently Adopted Accounting Pronouncements
On January 1, 2020 the Company adopted ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), which introduces a new accounting model, referred to as the current expected credit losses ("CECL") model, for estimating credit losses on certain financial instruments and expands the disclosure requirements should be implemented onfor estimating such credit losses. Under the new model, an entity is required to estimate the credit losses expected over the life of an exposure (or pool of exposures). The guidance also amends the current impairment model for debt securities classified as available-for-sale securities. The Company adopted the guidance under a prospective basis.modified-retrospective approach with a cumulative effect adjustment to opening retained earnings. The adoption of this standard is not expected to have a material impact on Bunge’s consolidated financial statements.
In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. The amendments provide that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. Otherwise, to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output. The standard is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. Early adoption is permitted. The new requirements should be implemented on a prospective basis. The adoption of this standard is not expected to have a material impact on Bunge’s consolidated financial statements.
In May 2014, the FASB amended ASC (Topic 605) Revenue Recognition and created ASC (Topic 606): Revenue from Contracts with Customers. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. During 2016, the FASB issued additional implementation guidance and practical expedients in ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), ASU 2016-10, Revenue from Contracts with Customers(Topic 606),Identifying Performance Obligations and Licensing, ASU 2016-12, Revenue from Contracts with Customers(Topic 606): Narrow-Scope Improvements and Practical Expedients, and ASU 2016-20, Technical Corrections and Improvements to Topic 606,Revenue from Contracts with Customers, to improve the guidance. The changes will be effective with respect to Bunge as of January 1, 2018 and it is expected that the modified retrospective approach will be applied with a cumulative-effect adjustment to opening retained earnings. Management has completed its adoption assessment and does not expect a material impact on Bunge's results of operations, financial position or cash flows. This is due to the fact that the majority of Bunge's revenue streams apply fair value accounting and are not within the scope of this guidance and for revenue streams within the scope of this guidance, the current timing and measurement of revenue recognition is not expected to change significantly. Topic 606 also requires expanded disclosure, particularly as it relates to the disclosure of segment revenues.
Recently Adopted Accounting Pronouncements - In October 2016, the FASB issued ASU 2016-17: Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control, which provides that a single decision maker is not required to consider indirect interests held through related parties that are under common control with the decision maker to be equivalents of direct interests in their entity. Bunge adopted this ASU upon its effective date of January 1, 2017 and the adoption did not have a material impact on Bunge's consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This update identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. Bunge adopted this ASU upon its effective date of January 1, 2017
3. PORTFOLIO RATIONALIZATION INITIATIVES
Brazilian Margarine and the adoption did not have a material impact on Bunge's consolidated financial statements.
In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory, which requires entities that measure inventory using the first-in, first-out or average cost methods to measure inventory at the lower of cost or net realizable value. Net realizable value is defined as estimated selling price in the ordinary course of business less reasonably predictable costs of completion, disposal and transportation. Bunge adopted this ASU upon its effective date of January 1, 2017 and the adoption did not have a material impact on Bunge's consolidated financial statements.
3. GLOBAL COMPETITIVENESS PROGRAM
In July 2017, Bunge announced a global competitiveness program (“GCP”) to improve its cost position and deliver increased value to shareholders. The GCP will, among other things, rationalize Bunge’s cost structure and reengineer the way the company operates in order to reduce overhead costs. One of the GCP’s key objectives will be to streamline processes and consolidate back office functions to improve efficiency and scalability.
The GCP will comprise restructuring initiatives that may include the sale or disposal of long-lived assets, reduction of workforce and rationalization of certain investments. As Bunge continues to review its opportunities, certain charges may be recorded in earnings, including severance and other employee benefit costs, other costs related to the disposal of assets or investments and costs related to professional services.
The table below sets forth, by segment, the types of costs recorded for the GCP during the three and nine months ended September 30, 2017.
 Severance and Other Disposal of Assets Professional Total
(US$ in millions)Employee Benefit Costsor InvestmentsServicesCharges
Agribusiness Segment$4
 $17
 $3
 $24
Edible Oils Segment2
 1
 1
 4
Milling Segment1
 1
 1
 3
Sugar and Bioenergy Segment—
 1
 1
 2
Total$7
 $20
 $6
 $33
For the costs recorded above, $2 million were recorded in Cost of goods sold, $18 million were recorded in Selling, general and administrative expenses, and $13 million were recorded in Other income (expense) - net.

Mayonnaise Disposition
On September 27, 2017, as part of the GCP, Bunge offered a voluntary early retirement program to certain U.S. based salaried employees. Those employees had until October 31, 2017 to accept or decline the offer. For those employees who accepted, Bunge will recognize severance and other employee benefit costs of approximately $36 million in the fourth quarter of 2017.

4.BUSINESS ACQUISITIONS
On September 12, 2017,December 20, 2019, Bunge announced that it has entered into a definitivean agreement to acquire a 70% ownership interestsell its margarine and mayonnaise assets in IOI Loders Croklaan ("Loders") from IOI Corporation Berhad ("IOI") for approximately $946 million, comprising €297 million and $595 million in cash.Brazil. The transaction expands Bunge's value-added capabilities, reach,includes 3 production plants and scale across core geographiescertain related brands. The completion of the sale is subject to establish Bunge as a global leader in B2B oil solutions. Loders' portfolio includes a full range of palmregulatory approval and tropical oil-derived products with strength in confectionery, bakery and infant nutrition applications. Loders serves global food industry customers in more than 100 countries around the world. The transaction is expected to close in the firstsecond half of 2018,2020. In connection with this agreement, the Company has classified the assets and liabilities to be sold, which are reported under the Edible Oil Products segment, as held for sale in its condensed consolidated financial statements as of June 30, 2020 and December 31, 2019. The following table presents the disposal group's major classes of assets and liabilities included in Assets held for sale and Liabilities held for sale, respectively, in the condensed consolidated balance sheets at June 30, 2020 and December 31, 2019:
(US$ in millions)June 30,
2020		December 31,
2019
Inventories$16  $19  
Property, plant, and equipment, net32  49  
Other intangible assets, net3  4  
Assets held for sale$51  $72  
Other current liabilities$4  $4  
Liabilities held for sale$4  $4  
US Grain Disposition
On April 21, 2020, Bunge announced that it has entered into an agreement to sell a portfolio of interior grain elevators located in the United States to Zen-Noh Grain Corporation in exchange for cash proceeds of $300 million, subject to customary closing adjustments. The completion of the sale is subject to customary closing conditions, including receipt of required regulatory approvalsapproval, and the approval of a majority of IOI shareholders.
On February 28, 2017, Bunge acquired two oilseed processing plants and related operationsit is expected to close either in the Netherlands and France pursuant to anlast quarter of 2020 or the first quarter of 2021. In connection with this agreement, with Cargill, Inc. Bunge paid a total purchase price of approximately $322 million. The purchase price allocation resulted in $109 million allocated to property, plant and equipment, $103 million to other netthe Company has classified the assets

and liabilities to be sold, which are reported under the Agribusiness segment, as held for sale in its condensed consolidated financial statements as of June 30, 2020. The following table presents the disposal group's major classes of assets and $7 million to finite-lived intangible assets. The transaction also resultedliabilities included in $103 millionAssets held for sale and Liabilities held for sale, respectively, on the condensed consolidated balance sheets at June 30, 2020:
10
Table of goodwill allocated to Bunge’s agribusiness operations.Contents
5.(US$ in millions)TRADE STRUCTURED FINANCE PROGRAMJune 30,
2020
Inventories$99 
Other current assets11 
Property, plant, and equipment, net124 
Operating lease assets6 
Goodwill5 
Assets held for sale$245 
Trade accounts payable$130 
Current operating lease obligations1 
Other current liabilities10 
Non-current operating lease obligations5 
Liabilities held for sale$146 
Bunge

4.  LEASES
        The Company routinely leases storage facilities, transportation equipment, land, and office facilities that are typically classified as operating leases. The accounting for some of the Company's leases may require significant judgment when determining whether a contract is or contains a lease, the lease term, and the likelihood of renewal or termination options. Leases with an initial term of more than 12 months are recognized on the balance sheet as right-of-use assets (Operating lease assets) and lease liabilities for the obligation to make payments under such leases (Current operating lease obligations and Non-current operating lease obligations). As of the lease commencement date, the lease liability is initially measured as the present value of lease payments not yet paid. The lease asset is initially measured equal to the lease liability and adjusted for lease payments made at or before lease commencement (e.g., prepaid rent), lease incentives, and any initial direct costs. Over time, the lease liability is reduced for lease payments made and the lease asset is reduced through expense, classified as either Cost of goods sold or Selling, general and administrative expense, depending upon the nature of the lease. Lease assets are subject to review for impairment in a manner consistent with Property, plant and equipment. Leases with an initial term of 12 months or less (“short-term leases”) are not recorded on the balance sheet, and lease expense for these short-term leases is recognized on a straight-line basis over the lease term.
        The Company’s leases range in length of term, with an average remaining lease term of 4.9 years, but with certain land leases continuing for up to 92 years. Renewal options are generally exercisable solely at the Company’s discretion. When a renewal option is reasonably certain to be exercised, such additional terms are considered when calculating the associated operating lease asset and liability. When determining the lease liability at commencement of the lease, the present value of lease payments is based on the Company’s incremental borrowing rate determined using a portfolio approach and the Company’s incremental cost of debt, adjusted to arrive at the rate in the applicable country and for the applicable term of the lease, as the rate implicit in the lease is generally not readily determinable. As of June 30, 2020, this weighted average discount rate was 4.4%.
        Certain of the Company’s freight supply agreements for ocean freight vessels and rail cars may include rental payments that are variable in nature. Variable payments on time charter agreements for ocean freight vessels under freight supply agreements are dependent on then-current market daily hire rates. Variable payments for certain rail cars can be based on volumes, and in some cases, benchmark interest rates. All such variable payments are not included in the calculation of the associated operating lease asset or liability subsequent to the inception date of the associated lease and are recorded as expense in the period in which the adjustment to the variable payment obligation is incurred. Certain of the Company’s lease agreements related to railcars and barges contain residual value guarantees (see Note 16 - Commitments and Contingencies). None of the Company’s lease agreements contain material restrictive covenants.



11
Table of Contents
The components of lease expense were as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
(US$ in millions)2020201920202019
Operating lease cost$67  $80  $131  $160  
Short-term lease cost142  149  291  301  
Variable lease cost2  5  6  8  
Sublease income(14) (20) (28) (50) 
Total lease cost$197  $214  $400  $419  

        Supplemental cash flow information related to leases was as follows:
Six Months Ended
June 30,
(US$ in millions)20202019
Cash paid for amounts included in the measurement of lease liabilities:
       Operating lease liability principal payments$133  $160  
Supplemental non-cash information:
       Right-of-use assets obtained in exchange for new lease obligations$111  $150  
        Maturities of lease liabilities for operating leases as of June 30, 2020, are as follows:
(US$ in millions)
Remaining in 2020$130  
2021219  
2022165  
2023123  
202466  
Thereafter115  
Total lease payments (1)
818  
Less imputed interest(90) 
Present value of lease liabilities728  
Less present value of lease liabilities held for sale(5) 
Present value of lease liabilities, as separately presented on the condensed consolidated balance sheet$723  

(1)  Minimum lease payments have not been reduced by minimum sublease income receipts of $32 million due in future periods under non-cancelable subleases as of June 30, 2020. Non-cancelable subleases primarily relate to agreements with third parties for the use of portions of certain facilities with remaining sublease terms of approximately five years, as well as an agreement in which the Company subleases rail cars with remaining sublease terms of approximately three years. Subsequent to the balance sheet date, the majority of these rail car subleases were assigned to a third party, such that minimum sublease income receipts due in future periods under non-cancelable subleases were reduced by approximately $7 million, to $25 million. Additionally, from time to time the Company may enter into re-let agreements to sell the right to use ocean freight vessels under time charter agreements when excess capacity is available.

        As of June 30, 2020, the Company has additional operating leases for freight supply agreements on ocean freight vessels that have not yet commenced of $161 million. These operating leases will commence in 2020 with lease terms of up to eight years.

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5. TRADE STRUCTURED FINANCE PROGRAM
The Company engages in various trade structured finance activities to leverage the value of its global trade flows across its operating regions. For the nine months ended September 30, 2017 and 2016, the net returns from these activities were $27 million and $45 million, respectively, and were included as a reduction of cost of goods sold in the accompanying condensed consolidated statements of income.flows. These activities include programs under which Bungethe Company generally obtains U.S. dollar-denominated letters of credit (“LCs”) (each, each based on an underlying commodity trade flow)flow, from financial institutions and time deposits denominated in either the local currency of the financial institutions' counterparties or in U.S. dollars, as well as foreign exchange forward contracts, and other programs in which trade related payables are set-off against receivables, all of which are subject to legally enforceable set-off agreements.
The table below summarizes the assets and liabilities included in the condensed consolidated balance sheets and the associated fair value amounts at SeptemberAs of June 30, 20172020 and December 31, 2016, related to the program.  The fair values approximated the carrying amount of the related financial instruments.
(US$ in millions) September 30,
2017		 December 31,
2016
Current assets:  
  
Carrying value of time deposits $—
 $64
Fair value (Level 2 measurement) of time deposits $—
 $64
     
Non-current assets:    
Carrying value of time deposits $313
 $464
Fair value (Level 2 measurement) of time deposits $313
 $464
     
Current liabilities:    
Carrying value of letters of credit obligations $313
 $528
Fair value (Level 2 measurement) of letters of credit obligations $313
 $528
As of September 30, 2017 and December 31, 2016,2019, time deposits and LCs of $6,766$4,301 million and $5,732$3,409 million, respectively, wereare presented net on the condensed consolidated balance sheets as the criteria of ASC 210-20, Offsetting, hadhave been met. Additionally,The net losses and gains related to such activities are included as an adjustment to Cost of Septembergoods sold in the accompanying condensed consolidated statements of income. At June 30, 20172020 and December 31, 2016, receivables and trade payables of $896 million and nil, respectively, were presented net on the condensed consolidated balance sheets as the criteria of ASC 210-20, Offsetting, had been met. At September 30, 2017 and December 31, 2016,2019, time deposits, including those presented on a net basis, carried weighted-average interest rates of 2.84%2.35% and 2.36%3.10%, respectively. During the ninesix months ended SeptemberJune 30, 20172020 and 2016,2019, total net proceeds from issuances of LCs were $5,889$2,651 million and $5,165$2,030 million, respectively. These cash inflows are offset by the related cash outflows resulting from placement of the time deposits and repayment of the LCs. All cash flows related to the programs are included in operating activities in the condensed consolidated statements of cash flows.

6. TRADE ACCOUNTS RECEIVABLE AND TRADE RECEIVABLES SECURITIZATION PROGRAM
Trade Accounts Receivable
        Bunge establishes an allowance for lifetime expected credit losses utilizing an aging schedule for each pool of trade accounts receivable. The risk characteristics for each individual receivable were homogenous across the pool of trade accounts receivable and the determination of pools was sufficiently granular to address any differences in risk characteristics. Any receivables that did not share similar risk characteristics were separated into different pools for further analysis. Pools are determined based on risks characteristics such as the type of customer and geography. A default rate is derived using a provision matrix with data based on Bunge's historical receivables information. The default rate is then applied to the pool to determine the allowance for expected credit losses. Given the short term nature of the Company's trade accounts receivable, the default rate is only adjusted if significant changes in the credit profile of the portfolio are identified (e.g., poor crop years, credit issues at the country level, systematic risk), resulting in historic loss rates that are not representative of forecasted losses. Specifically, in establishing appropriate default rates as of June 30, 2020, the Company took into consideration expected impacts on its customers and other debtors in view of the COVID-19 pandemic, as well as other factors, which did not result in a material impact on the financial statements.

        Bunge records and reports accrued interest receivable within the same line item as the related receivable. The allowance for expected credit losses is estimated on the amortized cost basis of the trade accounts receivable, including accrued interest receivable. Bunge recognizes credit loss expense when establishing an allowance for accrued interest receivable.

Changes to the allowance for lifetime expected credit losses related to trade accounts receivable are as follows:
Rollforward of the Allowance for Credit Losses (US$ in millions)Short-term
Long-term (1)
Total
Allowance as of January 1, 2020$108  $65  $173  
Current period provisions (2)
42  —  42  
Recoveries(21) (2) (23) 
Write-offs charged against the allowance(21) —  (21) 
Foreign exchange translation differences(13) (12) (25) 
Allowance as of June 30, 2020 (2)
$95  $51  $146  
(1)  Long-term portion of the allowance for credit losses included in Other non-current assets as of June 30, 2020.
(2) In addition to the above mentioned current period provisions associated with lifetime expected credit losses, at June 30, 2020 the Company was engaged in collection proceedings with a customer in relation to an outstanding account receivable dating from 2015. During the three months ended June 30, 2020, Bunge recorded a $51 million bad debt reserve, within Selling, general and administrative expenses, as well as a $15 million legal provision, within Other income/expense – net, in its condensed consolidated financial statements in relation to the matter. As the litigation is ongoing, it is at least reasonably possible that the estimated amount of the loss will change in the near term.

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6.INVENTORIES

Trade Receivables Securitization Program
Bunge and certain of its subsidiaries participate in a trade receivables securitization program (the “Program”) with a financial institution, as administrative agent, and certain commercial paper conduit purchasers and committed purchasers that provides for funding of receivables sold into the Program.
(US$ in millions)June 30,
2020		December 31,
2019
Receivables sold which were derecognized from Bunge's balance sheet$799  $801  
Deferred purchase price included in other current assets$118  $105  

        The table below summarizes the cash flows and discounts of Bunge’s trade receivables associated with the Program. Servicing fees under the Program were not significant in any period.
Six Months Ended
June 30,
(US$ in millions)20202019
Gross receivables sold$4,942  $4,663  
Proceeds received in cash related to transfer of receivables$4,759  $4,469  
Cash collections from customers on receivables previously sold$4,389  $3,846  
Discounts related to gross receivables sold included in SG&A$6  $8  

        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.

7. INVENTORIES
Inventories by segment are presented below. Readily marketable inventories (“RMI”) are agricultural commodity inventories, such as soybeans, soybean meal, soybean oil, corn, and wheat carried at fair value because of their commodity characteristics, widely available markets, and international pricing mechanisms. The Company engages in trading and distribution, or merchandising activities, and part of RMI can be attributable to such activities and is not held for processing. All other inventories are carried at lower of cost or net realizable value.

(US$ in millions)June 30,
2020		December 31,
2019
Agribusiness (1)
$4,903  $4,002  
Edible Oil Products (2)
777  770  
Milling Products216  194  
Sugar and Bioenergy (3)
6  6  
Fertilizer105  66  
Total$6,007  $5,038  
(1)Includes RMI of $4,712 million and $3,796 million at June 30, 2020 and December 31, 2019, respectively.  Assets held for sale includes RMI of $99 million and 0 at June 30, 2020 and December 31, 2019, respectively (see Note 3 - Portfolio Rationalization Initiatives). Of these amounts, $3,841 million and $2,589 million can be attributable to merchandising activities at June 30, 2020 and December 31, 2019, respectively.
(2) Includes RMI of $89 million and $133 million at June 30, 2020 and December 31, 2019, respectively.
(3) Includes RMI of $6 million and $5 million at June 30, 2020 and December 31, 2019, respectively.
14
(US$ in millions) September 30,
2017		 December 31,
2016
Agribusiness (1)
 $4,536
 $3,741
Edible Oil Products (2)
 442
 404
Milling Products 187
 167
Sugar and Bioenergy (3)
 583
 406
Fertilizer 100
 55
Total $5,848
 $4,773
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(1)Includes RMI of $4,398 million and $3,593 million at September 30, 2017 and December 31, 2016, respectively.  Of these amounts, $3,351 million and $2,523 million can be attributable to merchandising activities at September 30, 2017 and December 31, 2016, respectively.
(2)Includes RMI of bulk soybean and canola oil in the aggregate amount of $109 million and $123 million at September 30, 2017 and December 31, 2016, respectively.
(3)Includes sugar RMI of $195 million and $139 million at September 30, 2017 and December 31, 2016, respectively. Of these amounts, $189 million and $139 million can be attributable to merchandising activities at September 30, 2017 and December 31, 2016, respectively.
8. OTHER CURRENT ASSETS
7.OTHER CURRENT ASSETS
Other current assets consist of the following:
(US$ in millions)June 30,
2020		December 31,
2019
Unrealized gains on derivative contracts, at fair value$1,328  $927  
Prepaid commodity purchase contracts (1)
378  153  
Secured advances to suppliers, net (2)
202  346  
Recoverable taxes, net316  476  
Margin deposits372  285  
Marketable securities, at fair value, and other short-term investments321  393  
Deferred purchase price receivable(3)
118  105  
Income taxes receivable11  37  
Prepaid expenses127  221  
Other189  170  
Total$3,362  $3,113  
(US$ in millions) September 30,
2017		 December 31,
2016
Unrealized gains on derivative contracts, at fair value $1,024
 $1,327
Prepaid commodity purchase contracts (1)
 418
 273
Secured advances to suppliers, net (2)
 377
 601
Recoverable taxes, net 459
 467
Margin deposits 277
 251
Marketable securities, at fair value and other short-term investments 544
 94
Deferred purchase price receivable, at fair value (3)
 123
 87
Income taxes receivable 235
 181
Prepaid expenses 147
 148
Other 277
 216
Total $3,881
 $3,645
(1)Prepaid commodity purchase contracts represent advance payments against contracts for future delivery of specified quantities of agricultural commodities.
(2) The Company provides cash advances to suppliers, primarily Brazilian farmers of soybeans, to finance a portion of the suppliers’ production costs. The Company does not bear any of the costs or operational risks associated with the related growing crops. 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 $1 million at June 30, 2020 and $1 million at December 31, 2019.
(1)Prepaid commodity purchase contracts represent advance payments against contracts for future delivery of specified quantities of agricultural commodities.
(2)Bunge provides cash advances to suppliers, primarily Brazilian farmers of soybeans and sugarcane, to finance a portion of the suppliers’ production costs.  Bunge does not bear any of the costs or operational risks associated with the related growing crops.  The advances are largely collateralized by future crops and physical assets of the suppliers, carry a local market interest rate, and settle when the farmer’s crop is harvested and sold.  The secured advances to farmers are reported net of allowances of $1 million at September 30, 2017 and $1 million at December 31, 2016. There were no significant changes in the allowance at September 30, 2017 and December 31, 2016, respectively.
Interest earned on secured advances to suppliers of $7$6 million and $7 million for each of the three months ended SeptemberJune 30, 20172020 and 2016, respectively,2019, and $34$18 million and $25$13 million for the ninesix months ended SeptemberJune 30, 20172020 and 2016,2019, respectively, is included in netNet sales in the condensed consolidated statements of income.
(3)Deferred purchase price receivable represents additional credit support for the investment conduits in Bunge’s accounts receivables sales program (see Note 13).

(3) Deferred purchase price receivable represents additional credit support for the investment conduits in the Company’s trade receivables securitization program (see Note 6 - Trade Accounts Receivable and Trade Receivable Securitization Program).
Marketable Securities and Other Short-Term Investments - BungeThe Company invests in foreign government securities, corporate debt securities, deposits, equity securities, and other securities. The following is a summary of amounts recorded onin the Company's condensed consolidated balance sheets foras marketable securities and other short-term investments.
(US$ in millions)June 30,
2020		December 31,
2019
Foreign government securities$190  $212  
Corporate debt securities130  161  
Equity securities—  14  
Other1  6  
Total$321  $393  
(US$ in millions) September 30,
2017		 December 31,
2016
Foreign government securities $521
 $28
Corporate debt securities 21
 57
Certificate of deposits/time deposits —
 7
Other 2
 2
Total marketable securities and other short-term investments $544
 $94
As of SeptemberJune 30, 2017, total2020 and December 31, 2019, $320 million and $387 million, respectively, of marketable securities and other short-term investments includes $1 million of assets classified as available for sale, $541 million as tradingare recorded at fair value. All other investments are recorded at cost, and $2 million as other short-term investments. As of December 31, 2016, total marketable securities and other short-term investments includes $22 million of assets classified as available for sale, $63 million as trading and $9 million as other short-term investments.  Held-to-maturity foreign government and corporate debt securities and certificate of deposits/time deposits are expected to be converted to cash within a twelve month period and are therefore classified as current. Duedue to the short termshort-term nature of these investments, their carrying value approximatesvalues approximate fair value. For the three months ended June 30, 2020 and 2019, unrealized gains of $21 million and $154 million, respectively have been recorded and recognized in Other income (expense) - net for investments held at June 30, 2020 and 2019. For the six months ended June 30, 2020 and 2019, unrealized gains of $12 million and $159 million, respectively have been recorded and recognized in Other income (expense) - net for investments held at June 30, 2020 and 2019.
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8.OTHER NON-CURRENT ASSETS
9.OTHER NON-CURRENT ASSETS
Other non-current assets consist of the following:
(US$ in millions)June 30,
2020		December 31,
2019
Recoverable taxes, net (1)
$63  $48  
Judicial deposits (1)
68  106  
Other long-term receivables4  6  
Income taxes receivable
181  208  
Long-term investments99  83  
Affiliate loans receivable18  29  
Long-term receivables from farmers in Brazil, net (1)
46  69  
Other188  129  
Total$667  $678  
(US$ in millions) September 30,
2017		 December 31,
2016
Recoverable taxes, net (1)
 $142
 $139
Judicial deposits (1)
 143
 129
Other long-term receivables 13
 23
Income taxes receivable (1)
 294
 261
Long-term investments 63
 54
Affiliate loans receivable 26
 25
Long-term receivables from farmers in Brazil, net (1)
 148
 133
Other 186
 163
Total $1,015
 $927
(1) These non-current assets arise primarily from the Company’s Brazilian operations and their realization could take several years.
(1)These non-current assets arise primarily from Bunge’s Brazilian operations and their realization could take several years.
Recoverable taxes, net - Recoverable taxes are reported net of allowancesallowances of $29$30 million and $32$41 million at SeptemberJune 30, 20172020 and December 31, 2016,2019, respectively.
Judicial deposits - Judicial deposits are funds that Bungethe Company has placed on deposit with the courts in Brazil. These funds are held in judicial escrow relating to certain legal proceedings pending legal resolution and bear interest at the SELICSelic rate, which is the benchmark rate of the Brazilian central bank.
Income taxes receivable - Income taxes receivable includesinclude overpayments of current income taxes plus accrued interest. These income tax prepayments are expected to be primarily utilized for settlement of future income tax obligations. Income taxes receivable in Brazil bear interest at the SELICSelic rate.
Affiliate loans receivable - Affiliate loans receivable are primarily interest bearinginterest-bearing receivables from unconsolidated affiliates with a remaining maturity of greater than one year.
Long-term receivables from farmers in Brazil, net of reserves - Bunge 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 8 - Other Current Assets) and reclassified to other non-current assets when collection issues arise and amounts become past due with resolution of such matters expected to take more than one year.

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The average recorded investment in long-term receivables from farmers in Brazil for the ninesix months ended SeptemberJune 30, 20172020 and the year ended December 31, 2016 was $2632019 was $159 million and $235 and $186 million, respectively. The table below summarizes Bunge’sthe Company’s recorded investment in long-term receivables from farmers in Brazil and the related allowance amounts.
 June 30, 2020December 31, 2019
(US$ in millions)Recorded
Investment		AllowanceRecorded
Investment		Allowance
For which an allowance has been provided:    
Legal collection process (1)
$65  $56  $95  $85  
Renegotiated amounts8  8  11  11  
For which no allowance has been provided:    
Legal collection process (1)
33  —  50  —  
Renegotiated amounts (2)
4  —  5  —  
Other long-term receivables—  —  4  —  
Total$110  $64  $165  $96  
  September 30, 2017 December 31, 2016
(US$ in millions) 
Recorded
Investment
 Allowance 
Recorded
Investment
 Allowance
For which an allowance has been provided:  
  
  
  
Legal collection process (1)
 $102
 $87
 $84
 $78
Renegotiated amounts (2)
 27
 24
 36
 31
For which no allowance has been provided:  
  
  
  
Legal collection process (1)
 77
 —
 60
 —
Renegotiated amounts (2)
 21
 —
 16
 —
Other long-term receivables 32
 —
 46
 —
Total $259
 $111
 $242
 $109
(1) All amounts in legal process are considered past due upon initiation of legal action.
(1)All amounts in legal process are considered past due upon initiation of legal action.
(2)All renegotiated amounts are current on repayment terms.
(2) These renegotiated amounts are current on repayment terms.
The table below summarizes the activity in the allowance for doubtful accounts related to long-term receivables from farmers in Brazil.
Three Months Ended
June 30,		Six Months Ended
June 30,
(US$ in millions)2020201920202019
Beginning balance$68  $105  $96  $106  
Bad debt provisions2  —  4  1  
Recoveries(1) (4) (9) (5) 
Foreign exchange translation(5) 2  (27) 1  
Ending balance$64  $103  $64  $103  

10. INCOME TAXES
  Three Months Ended
September 30,		 Nine Months Ended
September 30,
(US$ in millions) 2017 2016 2017 2016
Beginning balance $109
 $111
 $109
 $100
Bad debt provisions —
 —
 10
 1
Recoveries (3) (2) (11) (11)
Transfers —
 1
 —
 1
Foreign exchange translation 5
 (1) 3
 18
Ending balance $111
 $109
 $111
 $109
9.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 withprojecting a projected loss for the year or a year-to-date loss where no tax benefit can be recognized are excluded fromtreated discretely in the estimated annual effective tax rate.interim period in which they occur. The effective tax rate is highly dependent on the geographic distribution of Bunge’sthe Company’s worldwide earnings or losses and tax regulations in each jurisdiction. Management regularly monitors the assumptions used in estimating its annual effective tax rate and adjusts estimates accordingly, including the realizability of deferred tax assets. Volatility in earnings results inwithin a taxing jurisdiction could result in a determination that additional valuation allowance adjustments may be warranted. While management does not currently believe any future valuation allowance adjustments will be significant,
        Income tax expense was $168 million and $113 million for the actual results may be differentthree and the impact of such amounts will be recorded in the period in which management's assessment changes.
For the ninesix months ended SeptemberJune 30, 20172020, respectively, and 2016, income tax expense related to continuing operations was $2$60 million and $118$98 million respectively, resulting infor the three and six months ended June 30, 2019, respectively. The effective tax rates for each of 1%the three and 19%. The year-to-date effective taxsix month periods ended June 30, 2020 and 2019 were higher than the U.S. statutory rate of 1% in 2017 was21% primarily due to certain discrete items, including an income tax benefit of $32 million for a favorable resolution of income tax matters in Asia and an income tax benefit of $17 million related to a tax election in South America. The 2016 year-to-date effective tax rate of 19% was driven primarily by discrete items, including an income tax benefit of $60 million recorded for a change in estimate resulting from a tax election for North America and an income tax benefit of $11 million recorded for income tax refund claims in Europe, partially offset by an income tax charge of $(32) million recorded for an uncertain tax position related to Asia. Excluding the effect of these discrete items noted above, Bunge's effective tax rate for the nine months ended September 30, 2017 and 2016, was 22% and 26%, respectively. The reduction in the effective tax rate

from 2016 to 2017, taking into account an exclusion of the discrete tax items noted above, is primarily attributable to favorableunfavorable earnings mix and increased tax exempt income.
Bunge believes that it is reasonably possible that approximately $25 million of its unrecognized tax benefits may be recognized within the next twelve months as a result of the lapse of statute of limitations, or settlementassociated with the tax authorities.pretax losses in certain jurisdictions.
As a global enterprise, Bungethe 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 final 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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10.OTHER CURRENT LIABILITIES
11. OTHER CURRENT LIABILITIES
Other current liabilities consist of the following:
(US$ in millions)June 30,
2020		December 31,
2019
Unrealized losses on derivative contracts, at fair value$1,115  $766  
Accrued liabilities464  602  
Advances on sales322  411  
Other566  476  
Total$2,467  $2,255  


(US$ in millions) September 30,
2017		 December 31,
2016
Unrealized losses on derivative contracts, at fair value $1,054
 $1,203
Accrued liabilities 663
 548
Advances on sales 196
 395
Other 284
 330
Total $2,197
 $2,476
12. FAIR VALUE MEASUREMENTS
11.FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS
Bunge’s        Bunge's various financial instruments include certain components of working capital such as cash and cash equivalents, trade accounts receivable and trade accounts payable. Additionally, Bunge uses short and long-term debt to fund operating requirements. Cash and cash equivalents, tradeTrade 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 135 - Trade Structured Finance Program for deferred purchase price receivable (“DPP”) related to sales of trade receivables, structured finance program, Note 89 - Other Non-Current Assets for long-term receivables from farmers in Brazil, net and other long-term investments, and Note 1214 - Debt for long-term debt. Bunge’sBunge's financial instruments also include derivative instruments and marketable securities, which are stated at fair value.
The majorityfair value standard describes three levels within its hierarchy that may be used to measure fair value.
LevelDescriptionFinancial Instrument (Assets / Liabilities)
Level 1Quoted prices (unadjusted) in active markets for identical assets or liabilities.Exchange traded derivative contracts.

Marketable securities in active markets.
Level 2Observable 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 market).

Readily marketable inventories.

Over-the-counter (‘‘OTC’’) commodity purchase and sale 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 3Unobservable 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.
        In many cases, a valuation technique used to measure fair value includes inputs from multiple levels of Bunge’s exchange traded agricultural commodity futures are settled daily, generally through its clearing subsidiary and therefore, such futures are not included in the table below.  Assets and liabilities are classified in their entirety based on thefair value hierarchy. The lowest level of input that is a significant component of the fair value measurement.measurement determines the placement of the entire fair value measurement in the hierarchy. The lowest levelCompany’s assessment of the significance of a particular input is considered Level 3.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 2019 Annual Report on Form 10-K.
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The following table sets forth, by level, Bunge’sthe Company’s assets and liabilities that were accounted for at fair value on a recurring basis.
  Fair Value Measurements at Reporting Date
  September 30, 2017 December 31, 2016
(US$ in millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Assets:  
  
  
  
  
  
  
  
Readily marketable inventories (Note 6) $—
 $4,133
 $569
 $4,702
 $—
 $3,618
 $237
 $3,855
Trade accounts receivable (1)
 —
 6
 —
 6
 —
 6
 —
 6
Unrealized gain on designated derivative contracts(2):
    
  
  
  
  
  
  
Interest rate —
 —
 —
 —
 —
 1
 —
 1
Foreign exchange —
 25
 —
 25
 —
 29
 —
 29
Unrealized gain on undesignated derivative contracts (2):
  
  
  
  
  
  
  
  
Interest rate —
 —
 —
 —
 —
 1
 —
 1
Foreign exchange —
 416
 —
 416
 —
 312
 —
 312
Commodities 107
 406
 19
 532
 421
 431
 96
 948
Freight 25
 —
 6
 31
 16
 —
 —
 16
Energy 20
 —
 —
 20
 23
 1
 —
 24
Deferred purchase price receivable (Note 13 ) —
 123
 —
 123
 —
 87
 —
 87
Other (3)
 14
 684
 —
 698
 18
 108
 —
 126
Total assets $166
 $5,793
 $594
 $6,553
 $478
 $4,594
 $333
 $5,405
Liabilities:  
  
  
  
  
  
  
  
Trade accounts payable (1)
 $—
 $676
 $249
 $925
 $—
 $478
 $44
 $522
Unrealized loss on designated derivative contracts (4):
  
  
  
  
  
  
  
  
Interest rate —
 20
 —
 20
 —
 18
 —
 18
Unrealized loss on undesignated derivative contracts (4):
  
  
  
  
  
  
  
  
Interest rate —
 1
 —
 1
 —
 —
 —
 —
Foreign exchange —
 419
 —
 419
 —
 233
 —
 233
Commodities 141
 432
 20
 593
 356
 444
 144
 944
Freight 19
 —
 5
 24
 14
 —
 1
 15
Energy 14
 —
 3
 17
 9
 —
 2
 11
Total liabilities $174
 $1,548
 $277
 $1,999
 $379
 $1,173
 $191
 $1,743
 Fair Value Measurements at Reporting Date
 June 30, 2020December 31, 2019
(US$ in millions)Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets:        
Readily marketable inventories(1) (Note 7)
$—  $4,310  $596  $4,906  $—  $3,703  $231  $3,934  
Trade accounts receivable (2)
—  1  —  1  —  —  —  —  
Unrealized gain on derivative contracts (3):
1      
Interest rate—  110  —  110  —  45  —  45  
Foreign exchange—  376  —  376  —  331  —  331  
Commodities44  827  13  884  34  481  9  524  
Freight36  —  3  39  10  —  —  10  
Energy34  —  —  34  56  —  —  56  
Credit—  1  —  1  —  —  —  —  
Other (4)
24  307  —  331  47  370  —  417  
Total assets$138  $5,932  $612  $6,682  $147  $4,930  $240  $5,317  
Liabilities:        
Trade accounts payable (5)
$—  $427  $133  $560  $—  $347  $31  $378  
Unrealized loss on derivative contracts (6):
        
Interest rate—  16  —  16  —  4  —  4  
Foreign exchange—  629  —  629  —  257  —  257  
Commodities46  340  28  414  49  388  31  468  
Freight33  —  1  34  10  —  —  10  
Energy31  —  —  31  26  —  2  28  
Total liabilities$110  $1,412  $162  $1,684  $85  $996  $64  $1,145  
(1)  At June 30, 2020, there were RMI totaling $99 million included in Assets held for sale.
(2)  These receivables are hybrid financial instruments for which Bunge has elected the fair value option.
(3)  Unrealized gains on derivative contracts are generally included in Other current assets. There were $106 million and $39 million included in Other non-current assets at June 30, 2020 and December 31, 2019, respectively. At June 30, 2020 and December 31, 2019, there were $11 million and 0, respectively, included in Assets held for sale.
(4) Other includes the fair values of marketable securities and investments in Other current assets and Other non-current assets.
(5) These payables are hybrid financial instruments for which the Company has elected the fair value option. At June 30, 2020 and December 31, 2019, there were $46 million and 0, respectively, included in Assets held for sale.
(6) Unrealized losses on derivative contracts are generally included in Other current liabilities. There are $1 million included in Other non-current liabilities at both June 30, 2020 and December 31, 2019, respectively. At June 30, 2020 and December 31, 2019, there were $7 million and 0, respectively, included in Assets held for sale.
        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.
19
(1)Trade accounts receivable and payable are generally stated at historical amounts, net of write-offs and allowances, with the exception of $6 million and $925 million, respectively, at September 30, 2017 and $6 million and $522 million, respectively, at December 31, 2016, related to certain delivered inventory for which the receivable and payable fluctuate based on changes in commodity prices. These receivables and payables are hybrid financial instruments for which Bunge has elected the fair value option.
(2)Unrealized gains on designated and undesignated derivative contracts are generally included in other current assets. There are nil and $5 million included in other non-current assets at September 30, 2017 and December 31, 2016, respectively.
(3)Other includes the fair values of marketable securities and investments in other current assets and other non-current assets.

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(4)Unrealized losses on designated and undesignated derivative contracts are generally included in other current liabilities. There are $20 million and $18 million included in other non-current liabilities at September 30, 2017 and December 31, 2016, respectively.
Derivatives— ExchangeThe 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. Bunge’sThe majority of the Company’s exchange-traded agricultural commodity futures are cash-settled on a daily basis and, therefore, are not included in these tables. The Company's forward commodity purchase and sale contracts are classified as derivatives along with other OTC derivative instruments relating primarily to freight, energy, foreign exchange and interest rates, and are classified within Level 2 or Level 3 as described below. BungeThe 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 valued atgenerally fair value generally determinedvalued 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.  When unobservable inputs have a significant impact on the measurement of fair value, the
Level 3 Measurements
        The following relates to Level 3 measurements. An instrument is categorized in Level 3.
Exchange traded or cleared derivative contracts are classified in Level 1. Transfers of assets and liabilities into and/or out of Level 1 occur infrequently.  Transfers into Level 1 would generally only be expected to occur when an exchange cleared derivative contract historically valued using a valuation model as the result of a lack of observable inputs becomes sufficiently observable, resulting in the valuation price being essentially the exchange traded price.  There were no significant transfersmay transfer into or out of Level 1 during the periods presented.3 due to inputs becoming either observable or unobservable.
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 Bunge’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 Bunge 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.
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 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.  In addition, with the exception of the exchange cleared instruments, Bunge is exposed to loss in the event of the non-performance by counterparties on OTC derivative instruments and forward purchase and sale contracts.  Adjustments are made to fair values on occasions when non-performance risk is determined to represent a significant input in Bunge’s fair value determination.  These adjustments are based on Bunge’s estimate of the potential loss in the event of counterparty non-performance. Bunge did not have significant adjustments related to non-performance by derivative counterparties at September 30, 2017 and December 31, 2016, respectively.
Level 3 Readily marketable inventories and other—The significant unobservable inputs resulting in Level 3 classification for RMI, physically settled forward purchase and sale contracts, and trade accounts receivable, and trade accounts payable, net, 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, Bungethe Company uses proprietary information such as purchase and sale contracts and contracted prices for

to value freight, premiums and discounts to valuein its contracts. Movements in the priceprices of these unobservable inputs alone would not have a material effect on Bunge’sthe Company's financial statements as these contracts do not typically exceed one future crop cycle.
        Level 3 Derivatives—Level 3 derivative instruments utilize both market observable and unobservable inputs within the fair value measurements. These inputs include commodity prices, price volatility, interest rates, volumes and locations.
The tables below present reconciliations for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three and ninesix months ended SeptemberJune 30, 20172020 and 2016.2019. These instruments were valued using pricing models that management believes reflect the assumptions that would be used by a marketplace participant.
 Three Months Ended September 30, 2017Three Months Ended June 30, 2020
(US$ in millions) 
Derivatives,
Net
 
Readily
Marketable
Inventories
 
Trade
Accounts
Receivable/
Payable, Net
 Total(US$ in millions)Readily
Marketable
Inventories		Derivatives,
Net		Trade
Accounts
Payable		Total
Balance, July 1, 2017 $—
 $623
 $(453) $170
Total gains and (losses), realized/unrealized included in cost of goods sold (4) 23
 (2) 17
Balance, April 1, 2020Balance, April 1, 2020$619  $(16) $(261) $342  
Total gains and losses (realized/unrealized) included in cost of goods sold (1)
Total gains and losses (realized/unrealized) included in cost of goods sold (1)
150  (10) 9  149  
Purchases 3
 233
 (5) 231
Purchases668  —  (42) 626  
Sales —
 (443) —
 (443)Sales(970) —  —  (970) 
Issuances (3) —
 —
 (3)Issuances—  —  —  —  
Settlements (1) —
 214
 213
Settlements—  18  107  125  
Transfers into Level 3 (1) 162
 (4) 157
Transfers into Level 3277  7  (13) 271  
Transfers out of Level 3 3
 (29) 1
 (25)Transfers out of Level 3(148) (12) 67  (93) 
Balance, September 30, 2017 $(3) $569
 $(249) $317
Balance, June 30, 2020Balance, June 30, 2020$596  $(13) $(133) $450  
  Three Months Ended September 30, 2016
(US$ in millions) 
Derivatives,
Net
 
Readily
Marketable
Inventories
 
Trade
Accounts
Receivable/
Payable, Net
 Total
Balance, July 1, 2016 $127
 $917
 $(188) $856
Total gains and (losses), realized/unrealized included in cost of goods sold (120) 12
 7
 (101)
Purchases —
 171
 (8) 163
Sales —
 (517) —
 (517)
Issuances —
 —
 —
 —
Settlements (37) —
 95
 58
Transfers into Level 3 (5) 208
 —
 203
Transfers out of Level 3 (1) (499) 51
 (449)
Balance, September 30, 2016 $(36) $292
 $(43) $213
  Nine Months Ended September 30, 2017
(US$ in millions) 
Derivatives,
Net
 
Readily
Marketable
Inventories
 
Trade Accounts
Receivable/
Payable, Net
 Total
Balance, January 1, 2017 $(51) $237
 $(44) $142
Total gains and losses (realized/unrealized) included in cost of goods sold (36) 95
 9
 68
Purchases 8
 1,376
 (460) 924
Sales —
 (1,472) —
 (1,472)
Issuances (8) —
 —
 (8)
Settlements 70
 —
 305
 375
Transfers into Level 3 (8) 503
 (59) 436
Transfers out of Level 3 22
 (170) —
 (148)
Balance, September 30, 2017 $(3) $569
 $(249) $317

  Nine Months Ended September 30, 2016
(US$ in millions) 
Derivatives,
Net
 
Readily
Marketable
Inventories
 
Trade Accounts
Receivable/
Payable, Net
 Total
Balance, January 1, 2016 $167
 $245
 $(44) $368
Total gains and losses (realized/unrealized) included in cost of goods sold (87) 143
 15
 71
Purchases —
 904
 (220) 684
Sales —
 (1,022) —
 (1,022)
Issuances (1) —
 —
 (1)
Settlements (110) —
 195
 85
Transfers into Level 3 (7) 569
 (59) 503
Transfers out of Level 3 2
 (547) 70
 (475)
Balance, September 30, 2016 $(36) $292
 $(43) $213
The tables below summarize changes(1) Readily marketable inventories, derivatives, net and trade accounts payable, include gains/(losses) of $96 million, $(9) million and $8 million, respectively, that are attributable to the change in unrealized gains or gains/(losses) recorded in earnings during the three and nine months ended September 30, 2017 and 2016 forrelating to Level 3 assets and liabilities that werestill held at SeptemberJune 30, 20172020.
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Three Months Ended June 30, 2019
(US$ in millions)Readily
Marketable
Inventories		Derivatives,
Net		Trade
Accounts Payable		Total
Balance, April 1, 2019$633  $(2) $(397) $234  
Total gains and losses (realized/unrealized) included in cost of goods sold (1)
145  (9) 7  143  
Purchases626  —  (71) 555  
Sales(764) —  —  (764) 
Issuances—  (1) —  (1) 
Settlements—  —  113  113  
Transfers into Level 3189  (2) (2) 185  
Transfers out of Level 3(57) —  15  (42) 
Balance, June 30, 2019$772  $(14) $(335) $423  
(1) Readily marketable inventories, derivatives, net and 2016.trade accounts payable, includes gains/(losses) of $63 million, $(11) million and 0, respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at June 30, 2019.
Six Months Ended June 30, 2020
(US$ in millions)Readily
Marketable
Inventories		Derivatives,
Net		Trade
Accounts
Payable		Total
Balance, January 1, 2020$231  $(24) $(31) $176  
Total gains and losses (realized/unrealized) included in cost of goods sold (1)
314  3  14  331  
Purchases1,346  2  (278) 1,070  
Sales(1,596) —  —  (1,596) 
Issuances—  (2) —  (2) 
Settlements—  —  168  168  
Transfers into Level 3547  10  (73) 484  
Transfers out of Level 3(246) (2) 67  (181) 
Balance, June 30, 2020$596  $(13) $(133) $450  
(1) Readily marketable inventories, derivatives, net and trade accounts payable, include gains/(losses) of $169 million, $5 million and $13 million, respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at June 30, 2020.
Six Months Ended June 30, 2019
(US$ in millions)Readily
Marketable
Inventories		Derivatives,
Net		Trade
Accounts
Payable		Total
Balance, January 1, 2019$246  $(6) $(47) $193  
Total gains and losses (realized/unrealized) included in cost of goods sold (1)
183  (7) 12  188  
Purchases1,325  —  (432) 893  
Sales(1,334) —  —  (1,334) 
Issuances—  (1) —  (1) 
Settlements—  —  145  145  
Transfers into Level 3465  —  (28) 437  
Transfers out of Level 3(113) —  15  (98) 
Balance, June 30, 2019$772  $(14) $(335) $423  
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  Three Months Ended
(US$ in millions) 
Derivatives,
Net
 
Readily
Marketable
Inventories
 
Trade Accounts
Receivable and
Payable, Net
 Total
Changes in unrealized gains and (losses) relating to assets and liabilities held at September 30, 2017  
  
  
  
Cost of goods sold $(2) $11
 $(3) $6
Changes in unrealized gains and (losses) relating to assets and liabilities held at September 30, 2016  
  
  
  
Cost of goods sold $(127) $(12) $2
 $(137)
(1) Readily marketable inventories, derivatives, net and trade accounts payable, include gains/(losses) of $99 million, $(6) million and 0, respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at June 30, 2019.
  Nine Months Ended
(US$ in millions) 
Derivatives,
Net
 
Readily
Marketable
Inventories
 
Trade Accounts
Receivable and
Payable, Net
 Total
Changes in unrealized gains and (losses) relating to assets and liabilities held at September 30, 2017  
  
  
  
Cost of goods sold $(6) $(19) $3
 $(22)
Changes in unrealized gains and (losses) relating to assets and liabilities held at September 30, 2016  
  
  
  
Cost of goods sold $9
 $(26) $1
 $(16)

Derivative Instruments13. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
Interest rate derivatives — Bunge may use various        The Company uses derivative instruments to manage several market risks, such as interest rate, foreign currency, and commodity risk. Some of those hedges the Company enters into qualify for hedge accounting in the financial statements (Hedge Accounting Derivatives) and some, while intended as economic hedges, do not qualify or are not designated for hedge accounting (Economic Hedge Derivatives). As these derivatives forimpact the purpose of managingfinancial 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, exposures.foreign currency, and commodity risks. In executing these hedge strategies, the Company primarily relies on the shortcut and critical terms match methods in designing its hedge accounting strategy, which results in little to no net earnings impact for these hedge relationships. The Company monitors these relationships on a quarterly basis and performs a quantitative analysis to validate the assertion that the hedges are highly effective if there are changes to the hedged item or hedging derivative.
        Fair value hedges - These derivatives are used to hedge the effect of interest rate and currency exchange rate changes on certain long-term debt. Under fair value hedge accounting, the derivative is measured at fair value and the carrying value of hedged debt is adjusted for the change in value related to the exposure being hedged, with both adjustments offset to earnings. In other words, the earnings effect of an increase in the fair value of the derivative will be substantially offset by the earnings effect of the increase in the carrying value of the hedged debt. The net impact of fair value hedge accounting for interest rate swaps used by Bunge as hedging instruments have been recorded at fair valueis recognized in Interest expense. For cross currency swaps the changes in currency risk on the derivative are recognized in Foreign exchange gains (losses), and the changes in interest rate risk are recognized in Interest expense. Changes in basis risk are held in Accumulated other comprehensive income (loss) until realized through the coupon.
        Cash flow hedges of currency risk - The Company manages currency risk on certain forecasted purchases, sales, and selling, general and administrative expenses with currency forwards. The change in the condensed consolidatedvalue 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 December 2020. Of the amount currently in Accumulated other comprehensive income (loss), $(7) million of deferred losses is expected to be reclassified to earnings in the next twelve months.
Net investment hedges - The Company hedges the currency risk of certain of its foreign subsidiaries with currency forwards and intercompany loans for which the currency risk is remeasured through Accumulated other comprehensive income (loss). For currency forwards, the forward method is used. The change in the value of the forward is classified in Accumulated other comprehensive income (loss) until the transaction affects earnings.
        The table below provides information about the balance sheets withsheet values of hedged items and the notional amount of derivatives used in hedging strategies. The notional amount of the derivative is the number of units of the underlying (for example, the notional principal amount of the debt in an interest rate swap). The notional amount is used to compute interest or other payment streams to be made under the contract and is a measure of the Company’s level of activity. The Company discloses derivative notional amounts on a gross basis.
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Table of Contents
(US$ in millions)June 30, 2020December 31, 2019Unit of
Measure
Hedging instrument type:
Fair value hedges of interest rate risk
Carrying value of hedged debt$2,349  $2,279  $ Notional
Cumulative adjustment to long-term debt from application of hedge accounting$108  $37  $ Notional
Interest rate swap - notional amount$2,246  $2,249  $ Notional
Fair value hedges of currency risk
Carrying value of hedged debt$285  $281  $ Notional
Cross currency swap - notional amount$285  $281  $ Notional
Cash flow hedges of currency risk
Foreign currency forward - notional amount$201  $99  $ Notional
Foreign currency option - notional amount$50  $75  $ Notional
Net investment hedges
Foreign currency forward - notional amount$1,530  $928  $ Notional
Carrying value of non-derivative hedging instrument$892  $895  $ Notional
        Economic Hedge Derivatives -In addition to using derivatives in qualifying hedge relationships, the Company enters into derivatives to economically hedge its exposure to a variety of market risks it incurs in the normal course of operations.
        Interest rate derivatives are used to hedge exposures to the Company's financial instrument portfolios and debt issuances. The impact of changes in fair value recordedof these instruments is primarily presented in earnings. Additionally,Interest expense.
        Currency derivatives are used to hedge the carrying amountbalance sheet and commercial exposures that arise from the Company's global operations. The impact of the associated hedged debt is adjusted through earnings for changes in the fair value arising from changes in benchmark interest rates. No ineffectiveness is recognized on the hedging relationships, as they have been determined to be perfectly effective.

As of September 30, 2017, Bunge had several fixed-to-variable interest rate swap agreements that were designated as fair value hedges. Below is a summary of Bunge’s current interest rate swap agreements designated as fair value hedging instruments as of September 30, 2017.
Notional
Amount of
Hedged Obligation
Notional
Amount of
Derivative
Maturity Date
Payment
Weighted Average
Rate Payable
Fixed Rate
Receivable
$500
 $500
 November 24, 2020 3 month LIBOR plus 1.91% 3.50%
€800
 €800
 June 16, 2023 6 month EURIBOR plus 1.64% 1.85%
$550
 $550
 August 15, 2026 3 month LIBOR plus 1.12% 3.25%
Bunge may also enter into various interest rate derivatives that do not qualify for hedge accounting and, therefore, Bunge has not designated these as hedging instruments for accounting purposes. These interest rate derivatives have been recorded at fair value in the condensed consolidated balance sheets with changes in fair value recordedof these instruments is presented in earnings. Below is a summaryCost of Bunge's outstanding interest rate derivatives that do not qualify for hedge accounting.
September 30, 2017
Exchange Traded
Net (Short)Non-exchange TradedUnit of
(US$ in millions)& Long(Short)LongMeasure
Interest Rate
Swaps—
(1,574)—
Notional
Forward Rate Agreements—
(800)—
Notional
goods sold when hedging commercial exposures and Foreign exchange derivatives andgains (losses) when hedging activities - Bunge may use a combination of various foreign exchangemonetary exposures.
        Agricultural commodity derivatives to mitigate the risk from exchange rate fluctuations in connection with certain commercial and balance sheet exposures. The foreign exchange forward and option contracts may be designated as cash flow hedges. Bunge may also use net investment hedges to partially offset the translation adjustments arising from the remeasurement of its investments in certain of its foreign subsidiaries.
Foreign exchange risk is also managed through the use of foreign currency debt. Bunge has 800 million euro senior unsecured euro-denominated notes of which 697 million euro is designated and is effective as a net investment hedge of euro-denominated assets. Accordingly, foreign currency transaction gains or losses due to spot rate fluctuations on the euro-denominated debt instruments are included in foreign currency translation adjustment within other comprehensive income (loss) ("OCI").
Bunge assesses, both at the inception of the hedge relationship and on an ongoing basis, whether the derivatives that are used in hedge transactions are highly effective in offsetting changes in the hedged items. No ineffectiveness is recognized on the hedging relationships that have been determined to be perfectly effective.
The table below summarizes the notional amounts of open foreign exchange positions.
  September 30, 2017
  Exchange Traded      
  Net (Short) Non-exchange Traded Unit of
(US$ in millions) & Long (Short) Long Measure
Foreign Exchange  
  
  
  
Options $—
 $(368) $430
 Delta
Forwards —
 (10,824) 10,548
 Notional
Futures (10) 

 

 Notional
Swaps —
 (552) 593
 Notional
Commodity derivatives - Bunge uses various commodity derivative instrumentsprimarily to manage its exposure to movements associated with agricultural commodity prices. Bunge generally uses exchange traded futures and options contracts to minimize the effects of changes in the prices of agricultural commodities on its agricultural commodity inventoriesCompany's inventory and forward purchase and sale contracts, but may also enter into OTC commodity transactions, including swaps, which are settled in cash at maturity or termination based on exchange-quoted futures prices. Forward purchase and sale contracts are primarily settled through delivery of agricultural commodities. While Bunge considers these exchange traded futures and forward purchase and sale

contracts to be effective economic hedges, Bunge does not designate or account for its commodity contracts as accounting hedges. The forward contracts require performance of both Bunge and the contract counterparty in future periods.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 table below summarizes the volumes of open agricultural commodity derivative contracts.
  September 30, 2017
  Exchange Traded      
  Net (Short) Non-exchange Traded Unit of
  & Long (Short) Long Measure
Agricultural Commodities  
  
  
  
Futures 2,244,228
 —
 —
 Metric Tons
Options 63,027
 —
 —
 Metric Tons
Forwards —
 (31,604,107) 22,381,787
 Metric Tons
Swaps —
 (6,483,877) 300,458
 Metric Tons
Ocean freight derivatives — Bunge may useCompany uses derivative instruments referred to as forward freight forward agreements ("FFA") and FFA options to hedge portions of its current and anticipated ocean freight costs. ChangesThe impact of changes in the fair valuesvalue of ocean freight derivatives that are not designated as hedges are recordedthese instruments is presented in earnings. There were no designated accounting hedges at September 30, 2017 and December 31, 2016.Cost of goods sold.
The table below summarizes the open ocean freight positions.
September 30, 2017
Exchange Cleared
Net (Short)Non-exchange ClearedUnit of
& Long(Short)LongMeasure
Ocean Freight


FFA(2,098)—
—
Hire Days
FFA Options315
—
—
Hire Days
Energy derivatives — Bunge may use variousCompany uses energy derivative instruments to manage its exposure to volatility in energy costs. Energy costs incurred in Bunge's operations include electricity,Hedges may be entered into for natural gas, electricity, coal and fuel oil, including bunker fuel. The impact of changes in fair value of these instruments is presented in Cost of goods sold.
        The Company may also enter into other derivatives, including credit default swaps and equity derivatives to manage exposure to credit risk and broader macroeconomic risks, respectively. The impact of changes in fair value of these instruments is presented in Cost of goods sold.
The table below summarizes the openvolume of economic derivatives as of June 30, 2020 and December 31, 2019. For those contracts traded bilaterally through the OTC markets (e.g., forwards, forward rate agreements ("FRA") and swaps), the gross position is provided. For exchange traded (e.g., futures, FFAs and options) and cleared positions (e.g., energy positions.swaps), the net position is provided.
September 30, 2017
Exchange Traded / Cleared
Net (Short)Non-exchange TradedUnit of
& Long(Short)Long
Measure (1)
23
Natural Gas


Futures4,553,161
—
—
MMBtus
Swaps—
—
635,687
MMBtus
Energy—Other


Futures351,786
—
—
Metric Tons
Forwards—
—
6,048,869
Metric Tons
Swaps227,600
—
—
Metric Tons
 June 30,December 31, 
 20202019Unit of
Measure
Long(Short)Long(Short)
Interest rate    
   Swaps$2,168  $(142) $4,062  $(39) $ Notional
   FRAs$346  $(173) $213  $(418) $ Notional
Currency
   Forwards$10,061  $(13,006) $7,164  $(9,983) $ Notional
   Swaps$393  $(483) $191  $(170) $ Notional
   Futures$—  $(22) $—  $(16) $ Notional
   Options$234  $(241) $132  $(157) Delta
Agricultural commodities
   Forwards33,752,261  (36,812,787) 27,914,141  (25,321,595) Metric Tons
   Swaps—  —  —  (1,114,704) Metric Tons
   Futures—  (8,663,129) —  (1,960,051) Metric Tons
   Options—  (409,554) —  (115,232) Metric Tons
Ocean freight
   FFA6,515  —  —  (133) Hire Days
   FFA options347  —  42  —  Hire Days
Natural gas
   Swaps699,526  —  215,640  —  MMBtus
   Futures10,317,500  —  2,802,500  —  MMBtus
Energy - other
   Forwards5,534,290  —  5,534,290  —  Metric Tons
   Futures933  —  —  —  Metric Tons
   Swaps341,281  —  239,836  —  Metric Tons
Other
Swaps and futures$20  $—  $50  $(14) $ Notional
24
(1)Million British Thermal Units ("MMBtus") are standard units of measurement used to denote an amount of natural gas.

Table of Contents

The Effect of FinancialDerivative Instruments and Hedge Accounting on the Condensed Consolidated Statements of Income
The tabletables below summarizessummarize the net effect of derivative instruments that are designated as fair value hedges and the related hedged items, and also derivative instruments that are undesignatedhedge accounting on the condensed consolidated statements of income for the ninethree and six months ended SeptemberJune 30, 20172020 and 2016.2019.
  Gain (Loss) Recognized in
Income on Derivative Instruments
  Three Months Ended June 30,
(US$ in millions)20202019
Income statement classificationType of derivative
Net sales
Hedge accountingForeign currency$(5) $1  
Cost of goods sold
   Economic hedgesForeign currency(198) 91  
Commodities265  (244) 
Other (1)
39  —  
     Total Cost of goods sold $106  $(153) 
Interest expense
   Hedge accountingInterest rate$3  $(5) 
   Economic hedgesInterest rate—  (7) 
     Total Interest expense $3  $(12) 
Foreign exchange gains (losses)
   Hedge accountingForeign currency$3  $9  
   Economic hedgesForeign currency(53) (7) 
     Total Foreign exchange gains (losses)$(50) $2  
Other comprehensive income (loss)
Gains and losses on derivatives used as fair value hedges of foreign currency risk included in other comprehensive income (loss) during the period$(3) $3  
Gains and losses on derivatives used as cash flow hedges of foreign currency risk included in other comprehensive income (loss) during the period$(3) $8  
Gains and losses on derivatives used as net investment hedges included in other comprehensive income (loss) during the period$7  $(7) 
Foreign currency gains and losses on intercompany loans used as net investment hedges included in other comprehensive income (loss) during the period$(19) $(12) 
Amounts released from accumulated other comprehensive income (loss) during the period
   Cash flow hedge of foreign currency risk$(3) $1  
(1)  Other includes the results from freight, energy and other derivatives.

25
Table of Contents
    
Gain or (Loss) Recognized in
Income on Derivative Instruments
    Nine Months Ended September 30,
(US$ in millions) Location 2017 2016
Designated Derivative Contracts:    
  
Interest Rate Interest expense $11
 $3
Total   $11
 $3
Undesignated Derivative Contracts:    
  
Interest Rate Interest income (expense) $—
 $(4)
Foreign Exchange Foreign exchange gains (losses) 82
 262
Foreign Exchange Cost of goods sold 62
 646
Commodities Cost of goods sold 514
 (531)
Freight Cost of goods sold 4
 (1)
Energy Cost of goods sold (6) 12
Total   $656
 $384
  Gain (Loss) Recognized in
Income on Derivative Instruments
  Six Months Ended June 30,
(US$ in millions)20202019
Income statement classificationType of derivative
Net sales
Hedge accountingForeign currency$(5) $2  
Cost of goods sold
   Economic hedgesForeign currency(1,115) 166  
Commodities986  (106) 
Other (1)
(42) 28  
     Total Cost of goods sold $(171) $88  
Interest expense
   Hedge accountingInterest rate$2  $(8) 
   Economic hedgesInterest rate—  (10) 
     Total Interest expense $2  $(18) 
Foreign exchange gains (losses)
   Hedge accountingForeign currency$10  $8  
   Economic hedgesForeign currency(237) 31  
     Total Foreign exchange gains (losses)$(227) $39  
Other comprehensive income (loss)
Gains and losses on derivatives used as fair value hedges of foreign currency risk included in other comprehensive income (loss) during the period$—  $(2) 
Gains and losses on derivatives used as cash flow hedges of foreign currency risk included in other comprehensive income (loss) during the period$(17) $3  
Gains and losses on derivatives used as cash flow hedges of commodity price risk included in other comprehensive income (loss) during the period$—  $8  
Gains and losses on derivatives used as net investment hedges included in other comprehensive income (loss) during the period$53  $(45) 
Foreign currency gains and losses on intercompany loans used as net investment hedges included in other comprehensive income (loss) during the period$3  $5  
Amounts released from accumulated other comprehensive income (loss) during the period
   Cash flow hedge of foreign currency risk$1  $2  
The table below summarizes(1)  Other includes the effect of derivative instruments that are designatedresults from freight, energy and qualify as cash flow and net investment hedges on the condensed consolidated statement of income for the nine months ended September 30, 2017.
  Nine Months Ended September 30, 2017
  Notional 
Gain or
(Loss)
Recognized in
Accumulated
 
Gain or (Loss)
Reclassified from
Accumulated OCI into
Income (1)
 
Gain or (Loss) Recognized
in Income on Derivatives
(US$ in millions) Amount 
OCI (1)
 Location Amount Location 
Amount (2)
Cash Flow Hedge:  
  
    
    
Foreign exchange (3)
 $339
 $15
 Foreign exchange gains (losses) $27
 Foreign exchange gains (losses) $—
Total $339
 $15
   $27
   $—
             
Net Investment Hedge:  
  
    
    
Foreign currency denominated debt (4)
 $786
 $(101) Foreign currency denominated debt $—
 Foreign currency denominated debt $—
Foreign exchange (3)
 516
 (21) Foreign exchange gains (losses) —
 Foreign exchange gains (losses) —
Total $1,302
 $(122)   $—
   $—
other derivatives.
(1)The gain (loss) recognized in OCI relates to the effective portion of the hedging relationship.  At September 30, 2017, Bunge expects to reclassify into income in the next 12 months the full $15 million of after-tax gain (loss) related to its foreign exchange cash flow hedges and nil for net investment hedges.
(2)There was no gain or loss recognized in income relating to the ineffective portion of the hedging relationships or relating to amounts excluded from the assessment of hedge effectiveness.
(3)The foreign exchange contracts mature at various dates through June 2018.
(4)
The euro-denominated loans mature in 2023.

The table below summarizes the effect of derivative instruments that are designated and qualify as cash flow and net investment hedges on the condensed consolidated statement of income for the nine months ended September 30, 2016.
  Nine Months Ended September 30, 2016
  Notional Gain or
(Loss)
Recognized in
Accumulated		 
Gain or (Loss)
Reclassified from
Accumulated OCI into
Income (1)
 
Gain or (Loss) Recognized
in Income on Derivatives
(US$ in millions) Amount 
OCI (1)
 Location Amount Location 
Amount (2)
Cash Flow Hedge:  
  
    
    
Foreign exchange (3)
 $166
 $43
 Foreign exchange gains (losses) $13
 Foreign exchange gains (losses) $—
Total $166
 $43
   $13
   $—
             
Net Investment Hedge:  
  
    
    
Foreign currency denominated debt (4)
 $663
 $1
 Foreign currency denominated debt $—
 Foreign currency denominated debt $—
Foreign exchange (3)
 653
 (384) Foreign exchange gains (losses) —
 Foreign exchange gains (losses) —
Total $1,316
 $(383)   $—
   $—

14.DEBT
(1)The gain or (loss) recognized in OCI relates to the effective portion of the hedging relationship.  At September 30, 2016, Bunge expected to reclassify into income in the next 12 months approximately $31 million of after-tax gains (losses) related to its foreign exchange cash flow hedges and nil for net investment hedges.
(2)There was no gain or loss recognized in income relating to the ineffective portion of the hedging relationships or relating to amounts excluded from the assessment of hedge effectiveness.
(3)The foreign exchange contracts mature at various dates through 2018.
(4)
The euro-denominated loans mature in 2023.
12.DEBT
Bunge’s commercial paper program is supported by an identical amount of committed back-up bank credit lines (the “Liquidity Facility”) providedprovided 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 SeptemberJune 30, 2017,2020, there were no$498 million of borrowings outstanding under the commercial paper program and no0 borrowings under the Liquidity Facility.
In connection with Bunge entering into a definitive agreement to acquire a 70% ownership interest in IOI Loders Croklaan from IOI Corporation Berhad (the “Loders Acquisition”), on September 12, 2017, Bunge entered into an unsecured $900 million term loan agreement. Following the completion of the offering of senior notes described below, onFacility, and effective as of September 25, 2017, Bunge terminated the loan agreement.  No funds had been drawnat December 31, 2019, there were 0 borrowings outstanding under the loan agreement as of the date of termination.
September 25, 2017, Bunge completed the salecommercial paper program and issuance of $400 million aggregate principal amount of 3.00% unsecured senior notes due September 25, 2022, and $600 million aggregate principal amount of 3.75% unsecured senior notes due September 25, 2027. The senior notes are fully and unconditionally guaranteed by Bunge Limited. The offering was made pursuant to a registration statement filed with the U.S. Securities and Exchange Commission. Interest on the senior notes is payable semi-annually in arrears in March and September of each year, commencing on March 25, 2018. The net proceeds of the offering were approximately $989 million after deducting underwriting commissions and offering expenses.  Bunge intends to use the net proceeds from this offering to fund the purchase price for the Loders Acquisition. Pending the closing of the Loders Acquisition, the net proceeds from the offering were used to repay0 borrowings outstanding indebtedness of Bunge.
On September 6, 2017, Bunge entered into an amendment agreement to its unsecured $865 million Amended and Restated Credit Agreement, dated as of June 17, 2014 (the “Credit Agreement”). The amendment agreement extends the maturity date of the Credit Agreement to September 6, 2022. The amendment agreement also lowers the range of margin

applicable to Bunge’s borrowings under the Credit Agreement. Borrowings under the Credit Agreement will bear interest at LIBOR plus a margin, which will vary from 1.00% to 1.75% per annum, based on the credit ratingsLiquidity Facility.

26
Table of Bunge's senior long-term unsecured debt. Amounts under the Credit Agreement that remain undrawn are subject to a commitment fee payable quarterly based on the average undrawn portion of the Credit Agreement at rates ranging from 0.125% to 0.275%Contents
At June 30, 2020, based on the credit ratings of Bunge’s senior long-term unsecured debt. Bunge had $75 million of borrowings outstanding at September 30, 2017 under the Credit Agreement.
At September 30, 2017, Bunge had $4,740$3,617 million of unused and available borrowing capacity under its committed credit facilities totaling $5,015$4,315 million with a number of lending institutions. At December 31, 2019, Bunge had $4,315 million of unused and available borrowing capacity under its committed long-term credit facilities with a number of lending institutions.
In addition to committed facilities, from time to time, Bunge Limited and/or its financing subsidiaries enter into uncommitted bilateral short-term credit lines as necessary based on its financing requirements. At June 30, 2020 and December 31, 2019 there were $451 million and 0 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 $586 million and $771 million in short-term borrowings outstanding under local bank lines of credit at June 30, 2020 and December 31, 2019, respectively, to support working capital requirements.
The fair value of Bunge’s long-term debt is based on interest rates currently available on comparable maturities to companies with credit standing similar to that of Bunge. The carrying amounts and fair value of long-term debt are as follows:
 June 30, 2020December 31, 2019
(US$ in millions)Carrying
Value		Fair Value
(Level 2)		Carrying
Value		Fair Value
(Level 2)
Long-term debt, including current portion$4,502  $4,548  $4,223  $4,319  

  September 30, 2017 December 31, 2016
(US$ in millions) 
Carrying
Value
 
Fair Value
(Level 2)
 Carrying
Value		 Fair Value
(Level 2)
Long-term debt, including current portion $4,533
 $4,714
 $4,007
 $4,163
15. RELATED PARTY TRANSACTIONS
13.TRADE RECEIVABLES SECURITIZATION PROGRAM
Bunge and certain of its subsidiaries participate in a $700 million trade receivables securitization program (the “Program”) with a financial institution, as administrative agent, and certain commercial paper conduit purchasers and committed purchasers that provides for funding of up to $700 million against receivables sold into the Program.
The table below summarizes the cash flows and discounts of Bunge’s trade receivables associated with the Program. Servicing fees under the Program were not significant in any period.
  Nine Months Ended
September 30,
(US$ in millions) 2017 2016
Gross receivables sold $7,074
 $6,624
Proceeds received in cash related to transfer of receivables $6,811
 $6,439
Cash collections from customers on receivables previously sold $6,827
 $6,461
Discounts related to gross receivables sold included in SG&A $6
 $4
     
(US$ in millions) September 30,
2017		 December 31,
2016
Receivables sold which were derecognized on Bunge balance sheet $738
 $628
Deferred purchase price included in other current assets $123
 $87
14.RELATED PARTY TRANSACTIONS

Notes receivable - Bunge holds a note receivable from Navegações Unidas Tapajós S.A., a 50% equity method investment in Brazil, having a carrying value of $24 million at September 30, 2017, which matures in June 2019, with interest based on 80% of CDI, the average one‑day interbank deposit rate in Brazil.
Bunge holds a note receivable from Solazyme Bunge Renewable Oils Cooperatief U.A., a 49.9% equity method investment in Brazil, having a carrying value of $9 million at September 30, 2017, which matures in January 2018, with an interest rate based on 100% of CDI, the average one-day interbank deposit rate in Brazil.
In addition, Bunge held notes receivables from other related parties totaling $3 million at September 30, 2017.
Notes payable - Bunge holds a note payable with its affiliate Bunge SCF Grain LLC, a 50% equity method investment, with a carrying value of $9 million at September 30, 2017. This note matures on March 31, 2019 with an interest rate based on LIBOR and is included in other long‑term liabilities in Bunge’s condensed consolidated balance sheet.
Other - Bunge purchased soybeans and otherannually purchases agricultural commodity products and received port services from certain of its unconsolidated investees totaling $182 million and $255 millionother related parties. Such related party purchases comprised less than 6% of total Cost of goods sold for the three and six months ended SeptemberJune 30, 20172020 and 2016, respectively, and $682 million and $724 million for the nine months ended September 30, 2017 and 2016, respectively.2019. Bunge also sold soybeans and othersells agricultural commodity products and provided port services to certain of its unconsolidated investees totaling

$76 million and $89 millionother related parties. Such related party sales comprised less than 3% of total Net sales for the three and six months ended SeptemberJune 30, 20172020 and 2016, respectively,2019.
        In addition, Bunge receives services from and $387 millionprovides services to its unconsolidated investees, including tolling, port handling, administrative support, and $218 million forother services. For the ninethree and six months ended SeptemberJune 30, 20172020 and 2016, 2019, such services werespectively. not material to the Company's consolidated results.
        At June 30, 2020 and December 31, 2019, receivables and payables related to the above related party transactions, and included in Trade accounts receivable and Trade accounts payable, respectively, in the consolidated balance sheets were not material.
15.        Bunge believes all transaction values to be similar to those that would be conducted with third parties.

16. COMMITMENTS AND CONTINGENCIES
Bunge is party to a large number of claims and lawsuits, primarily non-income tax and labor claims in Brazil and non-income tax claims in Argentina,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 its general claims and lawsuitslegal 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 of anthat a liability arising from these matters could have a material adverse impact on Bunge’s position in the period the uncertainties are resolved wherebyshould the settlement of the identified contingencies couldliability 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, 2019. Included in otherOther non-current liabilities at SeptemberJune 30, 20172020 and December 31, 20162019 are the following amounts related to these matters:
(US$ in millions)June 30,
2020		December 31,
2019
Non-income tax claims$19  $23  
Labor claims41  50  
Civil and other claims74  88  
Total$134  $161  
27
Table of Contents
(US$ in millions) September 30,
2017		 December 31,
2016
Non-income tax claims $176
 $170
Labor claims 96
 82
Civil and other claims 94
 98
Total $366
 $350
Brazil Indirect Taxes
Non-income tax claims - These tax claims relate principally to ongoing claims against Bunge’s Brazilian subsidiaries, primarily value addedvalue-added tax claims (ICMS, ISS, IPI and PIS/COFINS). The determination of the manner in which various Brazilian federal, state and municipal taxes applyBunge expects to the operations of Bunge is subject to varying interpretations arising from the complex nature of Brazilian tax law. In addition to the matter discussed below, Bunge monitors other potential claims in Brazil regarding these value-added taxes. In particular, Bunge monitors the Brazilian federal and state governments’ responses to recent Brazilian Supreme Court decisions invalidating on constitutional grounds certain ICMS incentives and benefits granted by various states. While Bunge was not a recipient of any of the incentives and benefits that were the subject of these Supreme Court decisions, it has received other similar tax incentives and benefits which are being challenged before the Supreme Court. Bunge has not received any tax assessment from the states that granted these incentives or benefits related to their validity and, based on Bunge's evaluation of this matter as required by U.S. GAAP, no liability has been recorded in the consolidated financial statements.
On February 13, 2015, Brazil’s Supreme Federal Court ruled in a leading case that certain state ICMS tax credits for staple foods (including soy oil, margarine, and mayonnaise and wheat flours) are unconstitutional. Bunge, like other companies in the Brazilian food industry, is involved in several administrative and judicial disputes with Brazilian states regarding these tax credits. While the leading case does not involve Bunge and each case is unique in facts and circumstances and applicable state law, the ruling has general precedent authority in lower court cases. Based on management’s review of the ruling (without considering the future success of any potential clarification or modulation of the ruling) and its general application to Bunge’s pending cases, management recorded a liability of 468pay 38 million Brazilian reais (approximately $177$7 million), plus applicable interest, as of December 31, 2014. Since 2015, Bunge settled in 2020 or 2021 to settle a portion of its outstanding liabilities in amnesty programs in certain Brazilian states.states regarding certain tax credits.
        As of SeptemberJune 30, 2017,2020, the accrued liability was 407 million Brazilian reais (approximately $128 million), plus applicable interest.
As of September 30, 2017, the Brazilianfederal and state authorities have concluded examinations of the ICMS tax returns from 1990 to the present and have issued over 1,300 assessments to Bunge totaling approximately 1,060 million Brazilian reais (approximately $335 million as of September 30, 2017),  plus applicable interest and penalties on the outstanding amount.  As of December 31, 2016, the claims were approximately 797 million Brazilian reais (approximately $252 million), plus applicable interest and penalties.  Management intends to continue to vigorously defend against its pending state cases.  Management, in consultation with external legal advisors, has established appropriate reserves for potential exposures.
As of September 30, 2017 the Brazilian authorities have concluded examinations of the PIS COFINS tax returns and have issued assessmentsoutstanding claims. The Company continues to Bunge relating to years 2004 through 2011. Asevaluate the merits of September 30, 2017,each of these claims and will recognize them when loss is considered probable. The outstanding claims are comprised of the cumulative claims for 2004 through 2011 were approximately 550 million Brazilian reais (approximately $174 million), plus applicable interest and penalties. As of December 31, 2016, the cumulative claims were approximately 510 million Brazilian reais (approximately $161 million), plus applicable interest and penalties. Management, in consultation with external legal advisors, has established appropriate reserves for potential exposures.following:
Since 2010, the Argentine tax authorities have been conducting a review of income and other taxes paid by exporters and processors of cereals and other agricultural commodities in the country. In that regard, Bunge has been subject to a number
(US$ in millions)Years ExaminedJune 30, 2020December 31, 2019
ICMS1990 to Present$168  $221  
PIS/COFINS2004 through 2016$197  $268  

of assessments, proceedings and claims related to its activities. In 2011, Bunge’s subsidiary in Argentina paid $112 million of accrued export tax obligations under protest and preserved its rights with respect to such payment. In 2012, the Argentine tax authorities further assessed interest on these payments, which as of September 30, 2017, totaled approximately $255 million. In 2012, the Argentine government suspended Bunge’s Argentine subsidiary from a registry of grain traders. While the suspension has not had a material adverse effect on Bunge’s business in Argentina, these actions have resulted in additional administrative requirements and increased logistical costs on domestic grain shipments within Argentina. Bunge is challenging these actions in the Argentine courts.
Labor claims — The labor claims are principally claims 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 2016, Bunge received a notice from the Brazilian Administrative Council for Economic Defense ("CADE") initiating an administrative proceeding against its Brazilian subsidiary and two2 of its employees, certain of its former employees, several other companies in the Brazilian wheat milling industry, and others for alleged anticompetitive activities in the north and northeast of Brazil. This proceeding was put on hold due to a Court injunction obtained by one of the defendants in a case related to the application of the statute of limitations. Additionally, in the second quarter of 2018, Bunge received a notification from CADE that it has extended the scope of an existing administrative proceeding relating to alleged anticompetitive practices in the Rio Grande port in Brazil to include certain of Bunge's Brazilian subsidiaries and certain former employees of those subsidiaries. Bunge is defending against this action; however,these administrative proceedings and, in case it is unsuccessful, the proceedings are at an early stage andcan be further litigated in the judicial courts. Therefore, Bunge cannot at this time reasonably predict the ultimate outcome of the proceedingscases or sanctions, if any, whichthat may be imposed.

Refer to Note 6 - Trade Accounts Receivable and Trade Receivable Securitization Program for additional information regarding contingencies in relation to outstanding customer claims at the balance sheet date.
Guarantees — Bunge has issued or was a party to the following guarantees at SeptemberJune 30, 2017:
(US$ in millions) 
Maximum
Potential
Future
Payments
Unconsolidated affiliates financing (1) (2)
 $169
Residual value guarantee (3)
 227
Total $396
2020:
(1)Bunge issued guarantees to certain financial institutions related to debt of certain of its unconsolidated affiliates. The terms of the guarantees are equal to the terms of the related financings which have maturity dates(US$ in 2017 through 2022. There are no recourse provisions or collateral that would enable Bunge to recover any amounts paid under these guarantees. At September 30, 2017, Bunge recorded no obligation related to these guarantees.millions)
Maximum
Potential
Future
Payments
Unconsolidated affiliates guarantee (1) (2)
Bunge issued guarantees to certain third parties related to performance of its unconsolidated affiliates. The terms of the guarantees are equal to the completion date of a port terminal which is expected to be completed in 2020. There are no recourse provisions or collateral that would enable Bunge to recover any amounts paid under these guarantees. At September 30, 2017, Bunge recorded no obligation related to these guarantees.
$277 
Residual value guarantee (3)
Bunge issued guarantees to certain financial institutions which are party to certain operating lease arrangements for railcars and barges. These guarantees provide for a minimum residual value to be received by the lessor at conclusion of the lease term. These leases expire at various dates from 2018 through 2021. At September 30, 2017, Bunge’s recorded obligation related to these guarantees was $3 million.270 
Total$547 
(1) Bunge has issued financial and performance guarantees to certain financial institutions related to debt of certain of its unconsolidated affiliates. The terms of the guarantees are equal to the terms of the related financings that 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, a Bunge subsidiary has guaranteed the obligations of two of its affiliates and in connection therewith has secured its guarantee obligations through a pledge of one of its affiliate's shares plus loans receivable from the affiliate to the financial institutions in the event that the guaranteed obligations are enforced. Based on the amounts drawn under such debt facilities at June 30, 2020, Bunge's potential liability was $189 million, and it has recorded a $13 million obligation related to these guarantees, inclusive of expected lifetime credit losses, which are determined based on historical financial information and are not expected to be material.
(2) As of June 30, 2020, Bunge has issued guarantees to certain third parties related to performance of its unconsolidated affiliates. The terms of the guarantees are equal to the completion date of a port terminal that was substantially completed subsequent to June 30, 2020. There are no recourse provisions or collateral that would enable Bunge to recover any amounts paid under these guarantees. At June 30, 2020, Bunge's maximum potential future payments under these guarantees was $37 million, and 0 obligation has been recorded related to these guarantees.
(3) 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
28
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the conclusion of the lease term. These leases expire at various dates from 2020 through 2026. At June 30, 2020, 0 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 (see Note 4 - Leases).
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‑ownedwholly-owned subsidiary, which guarantees all amounts due and owing by BNA to grain producers and/or depositors in the State of Illinois who have delivered commodities to BNA’s Illinois facilities.
In addition, Bunge Limited has provided full and unconditional parent level guarantees of the outstanding indebtedness under certain credit facilities entered into, and senior notes issued, by its 100% owned subsidiaries. As of SeptemberAt June 30, 2017,2020, Bunge’s condensed consolidated balance sheet includes debt with a carrying amountamount of $5,229$5,662 million related to these guarantees. This debt includes the senior notes issued by two2 of Bunge’s 100% owned financefinance subsidiaries, Bunge Limited Finance Corp. and Bunge Finance Europe, B.V. There are largely no restrictions on the ability of Bunge Limited Finance Corp. and Bunge Finance Europe B.V. or any other Bunge subsidiary to transfer funds to Bunge Limited.
16.EQUITY

17. REDEEMABLE NONCONTROLLING INTEREST
In connection with the acquisition of a 70% ownership interest in IOI Loders Croklaan ("Loders"), the Company has entered into a put/call arrangement with the Loders minority shareholder and may be required or elect to purchase the additional 30% ownership interest in Loders within a specified time frame.
        The Company classifies these redeemable equity securities outside of permanent stockholders’ equity as the equity securities are redeemable at the option of the holder. The carrying amount of redeemable noncontrolling interests is the greater of: (i) the initial carrying amount, increased or decreased for the noncontrolling interests’ share of net income or loss, equity capital contributions and distributions or (ii) the redemption value. Any resulting increases in the redemption amount, in excess of the initial carrying amount, increased or decreased for the noncontrolling interests’ share of net income or loss and distributions, are affected by corresponding charges against retained earnings. Additionally, any such charges to Retained earnings will affect Net income (loss) available to Bunge common shareholders as part of the Company's calculation of earnings per common share.

18. EQUITY
Share repurchase program - In May 2015, Bunge established 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. Bunge did not repurchase anyrepurchased 2,546,000 common shares during the quarterthree and ninesix months ended SeptemberJune 30, 2017. Bunge repurchased 3,296,230 common shares in 2016

2020 under this program, for $200$100 million. Total repurchases under the program from its inception in May 2015 through June 30, 2020 were 4,707,4407,253,440 shares for $300$400 million.
Pension liability adjustment - On September 19, 2017, Bunge approved changes to certain U.S. defined benefit pension plans (“Plans”). The changes were announced on September 26, 2017 to all U.S. employees of Bunge. These changes will freeze the Plans for future benefit accruals effective January 1, 2023, and these Plans will be closed for participation for employees hired on or after January 1, 2018. As a result, Bunge recognized a curtailment gain associated with the Plans’ freeze and as such, the projected benefit obligations for these Plans were remeasured as of September 30, 2017. At September 30, 2017, a $31 million pension curtailment gain and $18 million remeasurement loss were recognized and recorded in OCI.
Accumulated other comprehensive income (loss) attributable to Bunge — The following table summarizes the balances of related after-tax components of accumulatedAccumulated other comprehensive income (loss) attributable to Bunge.Bunge:
(US$ in millions)Foreign Exchange
Translation
Adjustment		Deferred
Gains (Losses)
on Hedging
Activities		Pension and Other
Postretirement
Liability
Adjustments		Accumulated
Other
Comprehensive
Income (Loss)
Balance, April 1, 2020$(6,098) $(123) $(190) $(6,411) 
Other comprehensive income (loss) before reclassifications(111) 3  —  (108) 
Amount reclassified from accumulated other comprehensive income (loss)—  3  1  4  
Balance, June 30, 2020$(6,209) $(117) $(189) $(6,515) 
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(US$ in millions) 
Foreign Exchange
Translation
Adjustment
 
Deferred
Gains (Losses)
on Hedging
Activities
 
Pension and Other
Postretirement
Liability
Adjustments
 
Unrealized
Gains (Losses)
on
Investments
 
Accumulated
Other
Comprehensive
Income (Loss)
Balance, July 1, 2017 $(5,618) $(192) $(145) $4
 $(5,951)
Other comprehensive income (loss) before reclassifications 329
 (37) 9
 —
 301
Amount reclassified from accumulated other comprehensive income —
 (8) —
 (4) (12)
Balance, September 30, 2017 $(5,289) $(237) $(136) $—
 $(5,662)

(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, April 1, 2019$(6,657) $(169) $(174) $(7,000) 
Other comprehensive income (loss) before reclassifications90  (8) —  82  
Amount reclassified from accumulated other comprehensive income (loss)—  (1) —  (1) 
Balance, June 30, 2019$(6,567) $(178) $(174) $(6,919) 

(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, 2020$(5,263) $(170) $(191) $(5,624) 
Other comprehensive income (loss) before reclassifications(946) 54  —  (892) 
Amount reclassified from accumulated other comprehensive income (loss)—  (1) 2  1  
Balance, June 30, 2020$(6,209) $(117) $(189) $(6,515) 

(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, 2019$(6,637) $(145) $(153) $(6,935) 
Other comprehensive income (loss) before reclassifications70  (31) —  39  
Amount reclassified from accumulated other comprehensive income (loss)—  (2) (21) (23) 
Balance, June 30, 2019$(6,567) $(178) $(174) $(6,919) 
30
(US$ in millions) Foreign Exchange
Translation
Adjustment		 Deferred
Gains (Losses)
on Hedging
Activities		 Pension and Other
Postretirement
Liability
Adjustments		 Unrealized
Gains (Losses)
on
Investments		 Accumulated
Other
Comprehensive
Income (Loss)
Balance, July 1, 2016 $(5,462) $(125) $(134) $3
 $(5,718)
Other comprehensive income (loss) before reclassifications (95) —
 1
 —
 (94)
Amount reclassified from accumulated other comprehensive income —
 (13) —
 —
 (13)
Balance, September 30, 2016 $(5,557) $(138) $(133) $3
 $(5,825)
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(US$ in millions) Foreign Exchange
Translation
Adjustment		 Deferred
Gains (Losses)
on Hedging
Activities		 Pension and Other
Postretirement
Liability
Adjustments		 Unrealized
Gains (Losses)
on
Investments		 Accumulated
Other
Comprehensive
Income (Loss)
Balance, January 1, 2017 $(5,734) $(102) $(145) $3
 $(5,978)
Other comprehensive income (loss) before reclassifications 445
 (108) 9
 1
 347
Amount reclassified from accumulated other comprehensive income —
 (27) —
 (4) (31)
Balance, September 30, 2017 $(5,289) $(237) $(136) $—
 $(5,662)

19. EARNINGS PER COMMON SHARE
(US$ in millions) Foreign Exchange
Translation
Adjustment		 Deferred
Gains (Losses)
on Hedging
Activities		 Pension and Other
Postretirement
Liability
Adjustments		 Unrealized
Gains (Losses)
on
Investments		 Accumulated
Other
Comprehensive
Income (Loss)
Balance, January 1, 2016 $(6,443) $214
 $(134) $3
 $(6,360)
Other comprehensive income (loss) before reclassifications 886
 (339) 1
 —
 548
Amount reclassified from accumulated other comprehensive income —
 (13) —
 —
 (13)
Balance, September 30, 2016 $(5,557) $(138) $(133) $3
 $(5,825)

17.EARNINGS PER COMMON SHARE
The following table sets forth the computation of basic and diluted earnings per common share.
  Three Months Ended
September 30,		 Nine Months Ended
September 30,
(US$ in millions, except for share data) 2017 2016 2017 2016
Income (loss) from continuing operations $92
 $125
 $227
 $490
Net (income) loss attributable to noncontrolling interests —
 (12) (7) (8)
Income (loss) from continuing operations attributable to Bunge 92
 113
 220
 482
Other redeemable obligations (1)
 —
 6
 —
 (2)
Convertible preference share dividends (8) (8) (25) (25)
Income (loss) from discontinued operations, net of tax —
 5
 —
 (8)
Net income (loss) available to Bunge common shareholders $84
 $116
 $195
 $447
         
Weighted-average number of common shares outstanding:  
  
  
  
Basic 140,601,605
 139,444,320
 140,276,421
 139,969,200
Effect of dilutive shares:  
  
  
  
—stock options and awards 954,694
 483,525
 1,008,169
 341,890
—convertible preference shares —
 —
 —
 7,909,470
Diluted (2)
 141,556,299
 139,927,845
 141,284,590
 148,220,560
         
Basic earnings per common share:        
Net income (loss) from continuing operations $0.59
 $0.80
 $1.39
 $3.25
Net income (loss) from discontinued operations —
 0.03
 (0.01) (0.06)
Net income (loss) attributable to Bunge common shareholders—basic $0.59
 $0.83
 $1.38
 $3.19
         
Diluted earnings per common share:        
Net income (loss) from continuing operations $0.59
 $0.79
 $1.38
 $3.24
Net income (loss) from discontinued operations —
 0.04
 (0.01) (0.05)
Net income (loss) attributable to Bunge common shareholders—diluted $0.59
 $0.83
 $1.37
 $3.19
Three Months Ended
June 30,		Six Months Ended
June 30,
(US$ in millions, except for share data)2020201920202019
Net income (loss)$522  $212  $329  $262  
Net (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests(6) 2  3  (3) 
Net income (loss) attributable to Bunge516  214  332  259  
Convertible preference share dividends(9) (9) (17) (17) 
Adjustment of redeemable noncontrolling interest (1)
5  —  (10) —  
Net income (loss) available to Bunge common shareholders - Basic and Diluted$512  $205  305  242  
Add back convertible preference share dividends9  9  17  —  
Net income (loss) available to Bunge common shareholders - Diluted$521  $214  $322  $242  
Weighted-average number of common shares outstanding:   
Basic141,565,298  141,497,071  141,734,488  141,351,844  
Effect of dilutive shares:    
—stock options and awards (2)
67,683  310,272  201,365  345,445  
—convertible preference shares (3)
8,570,096  8,329,297  8,570,096  —  
Diluted150,203,077  150,136,640  150,505,949  141,697,289  
Earnings per common share:
Net income (loss) attributable to Bunge common shareholders—basic$3.62  $1.46  $2.15  $1.72  
Net income (loss) attributable to Bunge common shareholders—diluted$3.47  $1.43  $2.14  $1.71  
(1)Accretion of redeemable noncontrolling interest of $6
(1) The redemption value adjustment of the Company's redeemable noncontrolling interest is added to or deducted from income (loss) as discussed further in Note 17 - Redeemable Noncontrolling Interest.
(2) The weighted-average common shares outstanding-diluted excludes approximately 7 million and 6 million gain and $2 million loss for the three and nine months ended September 30, 2016, respectively, related to a non-fair value variable put arrangement whereby the noncontrolling interest holder could require Bunge to purchase the remaining shares of an oilseed processing operation in Central and Eastern Europe. Accretion for the respective periods include the effect of losses incurred by the operations for the three and nine months ended September 30, 2016. In the second quarter of 2016, Bunge exercised its call option. This transaction concluded in September 2016.
(2)Approximately 3 million outstanding stock options and contingently issuable restricted stock units were not dilutive and not included in the weighted-average number of common shares outstanding for the three and nine months ended September 30, 2017. Approximately 8 million weighted-average common shares that are issuable upon conversion of the convertible preference shares were not dilutive and not included in the weighted-average number of common shares outstanding for the three and nine months ended September 30, 2017.
Approximately 4 million outstanding stock options and contingently issuable restricted stock units, which were not dilutive and not included in the computation of earnings per share for the three months ended June 30, 2020 and 2019, respectively.
The weighted-average common shares outstanding-diluted excludes approximately 6 million and 5 million stock options and contingently issuable restricted stock units, which were not dilutive and not included in the computation of earnings per share for the six months ended June 30, 2020 and 2019, respectively.
(3) Weighted-average common shares outstanding-diluted for the six months ended June 30, 2019 excludes approximately 8 million weighted-average common shares that are issuable upon conversion of the convertible preference shares that were not dilutive and not included in the weighted-average number of common shares outstanding for the threeshares.

20. SEGMENT INFORMATION
The Company's operations are organized, managed and nine months ended September 30, 2016. Approximately 8 million weighted-average common shares that are issuable upon conversion of

the convertible preference shares were not dilutive and not included in the weighted-average number of common shares outstanding for the three months ended September 30, 2016.
18.SEGMENT INFORMATION
Bunge has fiveclassified into 5 reportable segments - Agribusiness, Edible Oil Products, Milling Products, Sugar and Bioenergy, and Fertilizer, which are organized based upon their similar economic characteristics, and are similar in nature of products and services offered, the nature of production processes, types and the type and classclasses of customer, and distribution methods.
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Table of Contents
The Company’s remaining operations are not reportable segments, as defined by the applicable accounting standard, and are classified as Corporate and Other. See Note 1 - Basis of Presentation, Principles Of Consolidation, And Significant Accounting Policies.
The Agribusiness segment is characterized by both inputs and outputs being agricultural commodities and thus high volume and low margin. The Edible Oil Products segment involves the processing, production and marketing of products derived from vegetable oils. The Milling Products segment involves the processing, production and marketing of products derived primarily from wheat and corn. TheUp until December 2019, when the Company contributed its Brazilian sugar and bioenergy operations forming the majority of its Sugar and Bioenergy segment involvesinto a joint venture with the Brazilian biofuels business of BP p.l.c., the Sugar and Bioenergy segment primarily involved sugarcane growing and milling in Brazil, sugar trading and merchandising in various countries, as well as sugarcane-based ethanol production and corn-based ethanol investments and related activities. Following the classification of the Brazilian fertilizer distribution and North American fertilizer businesses as discontinued operations, theThe activities of the Fertilizer segment include its port operations in Brazil and Argentina and its blending and retail operations in Argentina.
The “Discontinued OperationsCorporate & Unallocated” column in the following table contains the reconciliation between the totalsOther includes salaries and overhead for reportable segments and Bunge consolidated totals, which consist primarily of amounts attributable to discontinued operations, corporate itemsfunctions that are not allocated to the Company’s individual reporting segments because operating segments,performance of each reporting segment is evaluated by the Company's chief operating decision maker exclusive of these items, as well as certain other activities including Bunge Ventures, the Company's captive insurance, and inter-segment eliminations. securitization activities.
Transfers between the segments are generally valued at market. The segment revenues generated from these transfers are shown in the following table as “Inter-segment revenues”.revenues.”
Three Months Ended June 30, 2020
(US$ in millions)AgribusinessEdible
Oil
Products		Milling
Products		Sugar and
Bioenergy		Fertilizer
Corporate and Other (1)
EliminationsTotal
Net sales to external customers$6,810  $2,128  $381  $26  $117  $—  $—  $9,462  
Inter–segment revenues1,256  44  —  —  1  —  (1,301) —  
Foreign exchange gains (losses)30  (4) 1  —  —  —  —  27  
Noncontrolling interests (1)
(6) —  —  —  —  —  —  (6) 
Other income (expense) – net30  (1) —  —  —  (2) —  27  
Income (loss) from affiliates18  —  —  (85) —  —  —  (67) 
Segment EBIT (2)
843  51  30  (85) 19  (120) —  738  
Depreciation, depletion and amortization(50) (37) (11) —  (1) (5) —  (104) 
Total assets12,566  3,615  1,240  176  320  642  —  18,559  
Three Months Ended June 30, 2019
(US$ in millions)AgribusinessEdible
Oil
Products		Milling
Products		Sugar and
Bioenergy		Fertilizer
Corporate and Other (1)
EliminationsTotal
Net sales to external customers$7,068  $2,206  $430  $284  $108  $—  $—  $10,096  
Inter–segment revenues1,078  41  —  1  18  —  (1,138) —  
Foreign exchange gains (losses)(10) (3) 1  1  —  —  —  (11) 
Noncontrolling interests (1)
1  —  —  1  —  —  —  2  
Other income (expense) – net25  (2) 8  (2) (1) 153  —  181  
Income (loss) from affiliates7  —  —  (1) —  —  —  6  
Segment EBIT (2)
209  43  25  (5) 6  76  —  354  
Depreciation, depletion and amortization(62) (39) (13) (36) (1) (5) —  (156) 
Total assets12,010  3,914  1,508  1,922  345  725  —  20,424  

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Table of Contents
 Three Months Ended September 30, 2017Six Months Ended June 30, 2020
(US$ in millions) Agribusiness 
Edible
Oil
Products
 
Milling
Products
 
Sugar and
Bioenergy
 Fertilizer 
Discontinued
Operations &
Unallocated (1)
 Total(US$ in millions)AgribusinessEdible
Oil
Products		Milling
Products		Sugar and
Bioenergy		Fertilizer
Corporate and Other (1)
EliminationsTotal
Net sales to external customers $7,720
 $2,027
 $397
 $1,158
 $121
 $—
 $11,423
Net sales to external customers$13,139  $4,452  $797  $76  $171  $—  $—  $18,635  
Inter–segment revenues 1,097
 40
 —
 19
 3
 (1,159) —
Inter–segment revenues2,463  87  —  —  1  —  (2,551) —  
Foreign exchange gains (losses) 1
 —
 —
 1
 (1) —
 1
Foreign exchange gains (losses)17  3  —  —  —  1  —  21  
Noncontrolling interests (1)
 2
 (2) —
 —
 (1) 1
 —
Noncontrolling interests (1)
(4) 7  —  —  —  —  —  3  
Other income (expense) – net 24
 (2) (1) 4
 —
 —
 25
Other income (expense) – net24  (2) (1) —  —  (1) —  20  
Income (loss) from affiliatesIncome (loss) from affiliates25  —  —  (136) —  —  —  (111) 
Segment EBIT (2)
 103
 34
 23
 10
 5
 —
 175
Segment EBIT (2)
716  97  48  (135) 24  (182) —  568  
Discontinued operations (3)
 —
 —
 —
 —
 —
 —
 —
Depreciation, depletion and amortization (69) (27) (16) (51) (3) —
 (166)Depreciation, depletion and amortization(107) (74) (23) —  (3) (10) —  (217) 
Total assets $13,286
 $2,508
 $1,542
 $2,670
 $357
 $189
 $20,552
Total assets12,566  3,615  1,240  176  320  642  —  18,559  
Six Months Ended June 30, 2019
(US$ in millions)AgribusinessEdible
Oil
Products		Milling
Products		Sugar and
Bioenergy		Fertilizer
Corporate and Other (1)
EliminationsTotal
Net sales to external customers$13,987  $4,445  $856  $569  $177  $—  $—  $20,034  
Inter–segment revenues2,246  73  —  1  20  —  (2,340) —  
Foreign exchange gains (losses)(19) (1) 3  (2) —  1  —  (18) 
Noncontrolling interests (1)
3  (6) —  —  —  —  —  (3) 
Other income (expense) – net49  (5) 6  (2) (1) 158  —  205  
Income (loss) from affiliates14  —  —  (1) —  —  —  13  
Segment EBIT (2)
350  102  47  (24) 8  22  —  505  
Depreciation, depletion and amortization(122) (78) (26) (55) (3) (10) —  (294) 
Total assets12,010  3,914  1,508  1,922  345  725  —  20,424  
  Three Months Ended September 30, 2016
(US$ in millions) Agribusiness Edible
Oil
Products		 Milling
Products		 Sugar and
Bioenergy		 Fertilizer 
Discontinued
Operations &
Unallocated (1)
 Total
Net sales to external customers $8,063
 $1,727
 $430
 $1,074
 $129
 $—
 $11,423
Inter–segment revenues 972
 29
 —
 8
 —
 (1,009) —
Foreign exchange gains (losses) (7) —
 —
 2
 (1) —
 (6)
Noncontrolling interests (1)
 (13) (2) —
 —
 (2) 5
 (12)
Other income (expense) – net 11
 (3) (1) (4) 1
 —
 4
Segment EBIT (2)
 83
 34
 52
 35
 9
 —
 213
Discontinued operations (3)
 —
 —
 —
 —
 —
 5
 5
Depreciation, depletion and amortization (61) (24) (16) (45) (3) —
 (149)
Total assets $12,396
 $2,030
 $1,508
 $3,532
 $352
 $227
 $20,045
(1) Include noncontrolling interests share of interest and tax to reconcile to consolidated Noncontrolling interests.

  Nine Months Ended September 30, 2017
(US$ in millions) Agribusiness Edible
Oil
Products		 Milling
Products		 Sugar and
Bioenergy		 Fertilizer 
Discontinued
Operations &
Unallocated (1)
 Total
Net sales to external customers $23,837
 $5,877
 $1,169
 $3,052
 $254
 $—
 $34,189
Inter—segment revenues 3,136
 111
 5
 19
 3
 (3,274) —
Foreign exchange gains (losses) 93
 4
 (1) 10
 2
 —
 108
Noncontrolling interests (1)
 (3) (5) —
 —
 (2) 3
 (7)
Other income (expense) – net 28
 (1) (2) (1) —
 —
 24
Segment EBIT (2)
 230
 98
 48
 1
 4
 —
 381
Discontinued operations (3)
 —
 —
 —
 —
 —
 —
 —
Depreciation, depletion and amortization (196) (77) (46) (120) (9) —
 (448)
Total assets $13,286
 $2,508
 $1,542
 $2,670
 $357
 $189
 $20,552
  Nine Months Ended September 30, 2016
(US$ in millions) Agribusiness Edible
Oil
Products		 Milling
Products		 Sugar and
Bioenergy		 Fertilizer 
Discontinued
Operations &
Unallocated (1)
 Total
Net sales to external customers $21,870
 $4,958
 $1,243
 $2,541
 $268
 $—
 $30,880
Inter–segment revenues 2,822
 80
 1
 10
 —
 (2,913) —
Foreign exchange gains (losses) 13
 (2) (5) 5
 (2) —
 9
Noncontrolling interests (1)
 (13) (5) —
 —
 (2) 12
 (8)
Other income (expense) – net 5
 (4) (3) (13) 1
 —
 (14)
Segment EBIT (2)
 533
 66
 107
 21
 13
 —
 740
Discontinued operations (3)
 —
 —
 —
 —
 —
 (8) (8)
Depreciation, depletion and amortization (174) (69) (47) (103) (9) —
 (402)
Total assets $12,396
 $2,030
 $1,508
 $3,532
 $352
 $227
 $20,045
(1)Includes noncontrolling interests share of interest and tax to reconcile to consolidated noncontrolling interest.
(2) Total segment earnings before interest and taxes (“EBIT”) is an operating performance measure used by Bunge’s management to evaluate segment operating activities. Bunge’s management believes total segment EBIT is a useful measure of operating profitability, since the measure allows for an evaluation of the performance of its segments without regard to its financing methods or capital structure. In addition, total segment EBIT is a financial measure that is widely used by analysts and investors in Bunge’s industry. However, total segment EBIT is a non-GAAP financial measure and is not intended to replace net income (loss) attributable to Bunge, the most directly comparable U.S. GAAP financial measure. Further, total segment EBIT is not a measure of consolidated operating results under U.S.GAAP and should not be considered as an alternative to net income (loss) or any other measure of consolidated operating results under U.S. GAAP. See the reconciliation of total segment EBIT to net income (loss) in the table below.
(3)Represents net income (loss) from discontinued operations.

(2) Total segment earnings before interest and taxes (“EBIT”) is an operating performance measure used by Bunge’s management to evaluate segment operating activities. Bunge’s management believes total Segment EBIT is a useful measure of operating profitability, since the measure allows for an evaluation of the performance of its segments without regard to its financing methods or capital structure. In addition, total Segment EBIT is a financial measure that is widely used by analysts and investors in Bunge’s industry. However, total Segment EBIT is a non-GAAP financial measure and is not intended to replace Net income (loss) attributable to Bunge, the most directly comparable U.S. GAAP financial measure. Further, total Segment EBIT is not a measure of consolidated operating results under U.S. GAAP and should not be considered as an alternative to Net income (loss) or any other measure of consolidated operating results under U.S. GAAP. See the reconciliation of total Segment EBIT to Net income (loss) in the table below.
A reconciliation of total Segment EBIT to netNet income (loss) attributable to Bunge follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
(US$ in millions)2020201920202019
Net income (loss) attributable to Bunge$516  $214  $332  $259  
Interest income(6) (7) (13) (14) 
Interest expense62  88  139  163  
Income tax expense (benefit)168  60  113  98  
Noncontrolling interests' share of interest and tax(2) (1) (3) (1) 
Total Segment EBIT from continuing operations$738  $354  $568  $505  
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Table of Contents
  Three Months Ended
September 30,		 Nine Months Ended
September 30,
(US$ in millions) 2017 2016 2017 2016
Total Segment EBIT from continuing operations $175
 $213
 $381
 $740
Interest income 9
 13
 29
 37
Interest expense (64) (73) (191) (189)
Income tax (expense) benefit (29) (45) (2) (118)
Income (loss) from discontinued operations, net of tax —
 5
 —
 (8)
Noncontrolling interests' share of interest and tax 1
 5
 3
 12
Net income (loss) attributable to Bunge $92
 $118
 $220
 $474
The Company’s revenue comprises sales from commodity contracts that are accounted for under ASC 815, Derivatives and Hedging (ASC 815)and sales of other products and services that are accounted for under ASC 606, Revenue from Contracts with Customers (ASC 606). The following tables provide a disaggregation of Net sales to external customers between sales from contracts with customers and sales from other arrangements:

Three Months Ended June 30, 2020
(US$ in millions)AgribusinessEdible
Oil
Products		Milling
Products		Sugar and
Bioenergy		FertilizerTotal
Sales from other arrangements$6,611  $498  $15  $23  $—  $7,147  
Sales from contracts with customers199  1,630  366  3  117  2,315  
Net sales to external customers$6,810  $2,128  $381  $26  $117  $9,462  
Three Months Ended June 30, 2019
(US$ in millions)AgribusinessEdible
Oil
Products		Milling
Products		Sugar and
Bioenergy		FertilizerTotal
Sales from other arrangements$6,842  $453  $20  $151  $—  $7,466  
Sales from contracts with customers226  1,753  410  133  108  2,630  
Net sales to external customers$7,068  $2,206  $430  $284  $108  $10,096  
Six Months Ended June 30, 2020
(US$ in millions)AgribusinessEdible
Oil
Products		Milling
Products		Sugar and
Bioenergy		FertilizerTotal
Sales from other arrangements$12,695  $990  $30  $70  $—  $13,785  
Sales from contracts with customers444  3,462  767  6  171  4,850  
Net sales to external customers$13,139  $4,452  $797  $76  $171  $18,635  
Six Months Ended June 30, 2019
(US$ in millions)AgribusinessEdible
Oil
Products		Milling
Products		Sugar and
Bioenergy		FertilizerTotal
Sales from other arrangements$13,559  $912  $35  $356  $—  $14,862  
Sales from contracts with customers428  3,533  821  213  177  5,172  
Net sales to external customers$13,987  $4,445  $856  $569  $177  $20,034  


21. SUBSEQUENT EVENT
On July 22, 2020 the Company approved an increase in the expected contributions to its defined benefit pension plans to $65 million for the year, compared to the $19 million previously disclosed in the Company's 2019 Annual Report on Form 10-K, filed on February 21, 2020. The full amount of the expected contribution was paid on July 24, 2020.
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Cautionary Statement Regarding Forward Looking Statements
This report contains both historical and forward looking statements. All statements, other than statements of historical fact are, or may be deemed to be, forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (Exchange Act). These forward looking statements are not based on historical facts, but rather reflect our current expectations and projections about our future results, performance, prospects and opportunities. We have tried to identify these forward looking statements by using words including “may,” “will,” “should,” “could,” “expect,” “anticipate,” “believe,” “plan,” “intend,” “estimate,” “continue” and similar expressions. These forward looking statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward looking statements. The following important factors, among others, could affect our business and financial performance,cause actual results to differ from these forward-looking statements: industry conditions, including fluctuations in supply, demand and prices for agricultural commodities and other raw materials and products used in our business, fluctuations in energy and freight costs andcosts; competitive developments in our industries; the effects of weather conditions and the outbreak of crop and animal disease on our business; global and regional economic, agricultural, economic, financial and commodities market, political, social and health conditions; the impacts of pandemic outbreaks, including COVID-19; the outcome of pending regulatory and legal proceedings; our ability to complete, integrate and benefit from acquisitions, dispositions, joint ventures and strategic alliances; our ability to achieve the efficiencies, savings and other benefits anticipated from our cost reduction, margin improvement, operational excellence and other business optimization initiatives; changes in government policies, laws and regulations affecting our business, including agricultural and trade policies and environmental, tax regulations and biofuels legislation;regulation; our capital allocation plans, funding needs and financing sources; changes in foreign exchange policy or rates; the outcome of our portfolio rationalization initiatives; the effectiveness of our risk management strategies; our ability to attract and retain executive management and key personnel; operational risks, including industrial accidents, natural disasters and cybersecurity incidents; and other factors affecting our business generally.
The forward looking statements included in this report are made only as of the date of this report, and except as otherwise required by federal securities law, we do not have any obligation to publicly update or revise any forward looking statements to reflect subsequent events or circumstances.
You should refer to “Item 1A.  Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2016,2019, filed with the SEC on February 28, 2017,21, 2020, and “Part II — Item 1A. Risk Factors” in this Quarterly Report on Form 10-Q for a more detailed discussion of these factors.

35
ITEM 2.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Third
Table of Contents

ITEM 2.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Second Quarter 20172020 Overview


You should refer to “Item 7.7, Management’s Discussion and Analysis of Financial Condition and Results of Operations - Factors Affecting Operating ResultsResults" in our Annual Report on Form 10-K for the year ended December 31, 20162019 for a discussion of key factors affecting operating results in each of our business segments. In addition, you should refer to “Item 9A, Controls and Procedures” in our Annual Report on Form 10-K for the year ended December 31, 20162019 and to “Item 4, Controls and Procedures” in this Quarterly Report on Form 10-Q for the period ended SeptemberJune 30, 20172020 for a discussion of our internal controls over financial reporting.


Non-U.S. GAAP Financial Measures


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 segmentSegment EBIT is a useful measure of operating profitability, since the measure allows for an evaluation of the performance of its segments without regard to its financing methods or capital structure. In addition, EBIT is a financial measure that is widely used by analysts and investors in Bunge’s industry. Total Segment EBIT is a non-U.S. GAAP financial measure and is not intended to replace netNet income (loss) attributable to Bunge, the most directly comparable U.S. GAAP financial measure. Further, Totaltotal Segment EBIT excludes EBIT attributable to noncontrolling interests and is not a measure of consolidated operating results under U.S.GAAPU.S. GAAP and should not be considered as an alternative to netNet 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 below.

Segment Overview

Agribusiness - EBIT for the third quarter of 2017 was $103 million compared to $83 million in the third quarter of 2016. The increase was primarily driven by improvements in our South American grain origination operations, contributions from our Financial Services Group and effective risk management in our soybean processing operations that more than offset lower crush margins.
Edible oil products -EBIT for the third quarter of 2017 was $34 million compared to $34 million in the third quarter of 2016.Increases to gross profit from acquisitions in Europe and Argentina and increased volumes in Asia were offset by charges related to our Global Competitiveness Program (“GCP”).
Milling products - EBIT for the third quarter of 2017 was $23 million compared to $52 million in the third quarter of 2016. Lower gross profit was driven by continued weak economic conditions and lower demand for wheat products in Brazil and Mexico. Additionally, the third quarter of 2016 included a recovery of $14 million in Brazilian import taxes related to prior years.
Sugar and Bioenergy - EBIT for the third quarter of 2017 was $10 million compared to $35 million in the third quarter of 2016. Our sugarcane milling, trading and merchandising operations were impacted by lower sugar and ethanol prices, lower sales volumes and decreased trading and risk management results compared to the third quarter 2016.
Fertilizer - EBIT for the third quarter of 2017 was $5 million compared to $9 million in the third quarter of 2016.A decrease in gross profit from lower margins in Argentina was partially offset by decreases in SG&A expenses compared to the third quarter of 2016.
Segment Results
Three Months Ended September 30, 2017 Compared to Three Months Ended September 30, 2016

Net Income (Loss) Attributable to Bunge - For the quarter ended September 30, 2017, net income attributable to Bunge decreased by $26 million to $92 million from $118 million in the quarter ended September 30, 2016. This decrease resulted primarily from a decrease in segment EBIT of $38 million, particularly in milling products and sugar and bioenergy.

Income Tax Expense - In the quarter ended September 30, 2017, income tax expense was $29 million compared to $45 million in the quarter ended September 30, 2016. The effective tax rate in the third quarter was 24% compared to 26% in the third quarter of 2016. The lower effective tax rate in 2017 was primarily due to favorable earnings mix and increased tax-exempt income on a lower base of pretax income.
A summary of certain items in our condensed consolidated statements of income and volumes by reportable segment for the periods indicated is set forth below.
  Three Months Ended
September 30,
(US$ in millions, except volumes) 2017 2016
Volumes (in thousands of metric tons):  
  
Agribusiness 37,316
 35,079
Edible oil products 1,945
 1,762
Milling products 1,127
 1,153
Sugar and Bioenergy 2,696
 2,304
Fertilizer 422
 417
     
Net sales:  
  
Agribusiness $7,720
 $8,063
Edible oil products 2,027
 1,727
Milling products 397
 430
Sugar and Bioenergy 1,158
 1,074
Fertilizer 121
 129
Total $11,423
 $11,423
     
Cost of goods sold:  
  
Agribusiness $(7,459) $(7,797)
Edible oil products (1,902) (1,610)
Milling products (338) (341)
Sugar and Bioenergy (1,122) (1,007)
Fertilizer (112) (112)
Total $(10,933) $(10,867)
     
Gross profit:  
  
Agribusiness $261
 $266
Edible oil products 125
 117
Milling products 59
 89
Sugar and Bioenergy 36
 67
Fertilizer 9
 17
Total $490
 $556
     
Selling, general and administrative expenses:  
  
Agribusiness $(187) $(174)
Edible oil products (87) (77)
Milling products (33) (36)
Sugar and Bioenergy (31) (31)
Fertilizer (2) (6)
Total $(340) $(324)
     

Foreign exchange gains (losses):  
  
Agribusiness $1
 $(7)
Edible oil products —
 —
Milling products —
 —
Sugar and Bioenergy 1
 2
Fertilizer (1) (1)
Total $1
 $(6)
     
Noncontrolling interest losses (gains):  
  
Agribusiness $2
 $(13)
Edible oil products (2) (2)
Milling products —
 —
Sugar and Bioenergy —
 —
Fertilizer (1) (2)
Total $(1) $(17)
     
Other income (expense) - net:  
  
Agribusiness $24
 $11
Edible oil products (2) (3)
Milling products (1) (1)
Sugar and Bioenergy 4
 (4)
Fertilizer —
 1
Total $25
 $4
     
Segment EBIT:  
  
Agribusiness $103
 $83
Edible oil products 34
 34
Milling products 23
 52
Sugar and Bioenergy 10
 35
Fertilizer 5
 9
Total $175
 $213
A reconciliation of Net income (loss) attributable to Bunge to Total Segment EBIT follows:
below.
  Three Months Ended
September 30,
(US$ in millions) 2017 2016
Net income (loss) attributable to Bunge $92
 $118
Interest income (9) (13)
Interest expense 64
 73
Income tax expense (benefit) 29
 45
(Income) loss from discontinued operations, net of tax —
 (5)
Noncontrolling interest's share of interest and tax (1) (5)
Total Segment EBIT $175
 $213


Executive Summary
Agribusiness Segment - Agribusiness segment net sales decreased by 4% to $7.7 billion in the third quarter of 2017, compared to $8.1 billion in the third quarter of 2016. An increase in volumes in Brazil from larger corn and soybean crops was primarily offset by lower commodity prices.


Cost of goods sold decreased by 4%, substantially in line with the decreases in net sales noted above. Additionally, the third quarter was impacted by higher industrial costs and depreciation from the acquisition of oilseed processing facilities in Western Europe in the first quarter of 2017 compared to the third quarter of 2016.

Despite overall increased volumes, gross profit decreased by $5 million in the third quarter of 2017, from $266 million in the third quarter of 2016. The benefits of stronger contributions from risk management and increased farmer selling in South America during the early part of the quarter only partially offset the impacts of compressed margins across our operations from excess supply and impacts to logistics costs from adverse weather conditions in our North American grain origination business.

SG&A expenses increased $13 million to $187 million in the third quarter of 2017. The increase includes impairment charges of $4 million for intangible assets related to patents for aluminum phosphate technology, one-time employee separation costs of $4 million and professional services charges of $3 million related to our GCP. The increase also included added general and administrative expenses in Europe for acquisitions made in the fourth quarter of 2016 and the first quarter of 2017, and was partially offset by lower professional services costs.

Foreign exchange results in the third quarter of 2017 were gains of $1 million, compared to losses of $7 million in the third quarter of 2016, primarily driven by foreign currency hedges, which were offset by losses on U.S. dollar-denominated loans to fund operations.

Other income (expenses) - net was income of $24 million in the third quarter of 2017, compared to income of $11 million in the third quarter of 2016. The third quarter of 2017 included stronger contributions from our Financial Services Group offset by a $13 million impairment charge related to our Indonesian palm oil plantation affiliate. The third quarter of 2016 included income generated by certain non-consolidated investments; primarily in our transportation and logistics affiliates in Brazil and the United States.

Segment EBIT increased by $20 million to $103 million in the third quarter of 2017 from $83 million in the third quarter of 2016. Increased volumes in Brazil from larger corn and soybean crops, effective risk management in our soybean processing operations, improvements in our South American grain origination operations and contributions from our Financial Services Group more than offset impacts from lower commodity prices and crush margins and charges related to our GCP and increased general and administrative expenses from acquisitions made in Europe during the fourth quarter of 2016 and the first quarter of 2017.

Edible Oil Products Segment - Edible oil products segment net sales increased by 17% in the third quarter of 2017 to $2.0 billion, compared to $1.7 billion in the third quarter of 2016, resulting primarily from a 10% increase in volumes, driven by the acquisitions of two edible oil production facilities in Europe, our recent acquisition of an edible oil production facility in Argentina and increased volumes in Asia from an earlier start of the Diwali holiday season.

Cost of goods sold in the third quarter of 2017 increased 18% from the same period of 2016, which is in line with the increase in net sales noted above, and primarily driven by the impact of the recent acquisitions and increased volumes in Asia.

Gross profit in the third quarter of 2017 increased to $125 million compared to $117 million for the third quarter of 2016. The increase was primarily driven by higher volumes.

SG&A expenses increased by 13% to $87 million in the third quarter of 2017 compared with $77 million in the same period a year ago. The increase primarily related to added general and administrative expenses in Europe and Argentina from new acquisitions. Additionally, the third quarter of 2017 included impairment charges of $2 million for intangible assets related to patents for aluminum phosphate technology and professional services charges of $1 million related to our GCP.

Segment EBIT of $34 million for the third quarter of 2017, was equal to the third quarter of 2016. Increases to gross profit from acquisitions in Argentina and Europe and increased volumes in Asia were offset by charges related to our GCP during the third quarter of 2017, and higher SG&A from our new acquisitions.

Milling Products Segment - Milling products segment net sales were $397 million in the third quarter of 2017, 8% lower compared to $430 million for the same period a year ago, resulting primarily from a 2% decrease in volumes driven by continued weak economic conditions and lower demand for wheat products in Brazil and Mexico.


Cost of goods sold decreased by 1% to $338 million for the third quarter of 2017 from $341 million in the third quarter of 2016, primarily driven by lower commodity prices in wheat, our primary raw material. In addition, the third quarter was impacted by $1 million of severance and other employee benefit costs related to our GCP and the third quarter of 2016 included a recovery of $14 million in Brazilian import taxes paid in prior years.

Gross profit decreased by 34% to $59 million in the third quarter of 2017, down from $89 million in the third quarter of 2016, primarily due to increased competition and competitive pricing in Brazil driven by challenging macro-economic conditions, the large domestic wheat crop that reduced margins and lower volume.

SG&A expenses decreased to $33 million in the third quarter of 2017 from $36 million in 2016 from lower spending in Brazil and Mexico. The decrease was partially offset by impairment charges of $1 million for intangible assets related to patents for aluminum phosphate technology and professional services charges of $1 million related to our GCP.

Segment EBIT decreased to $23 million in the third quarter of 2017, from $52 million last year, primarily as a result of lower gross profit driven by continued weak economic conditions and lower demand for wheat products in Brazil. The third quarter of 2016 included a recovery of $14 million in Brazilian import taxes paid in prior years.

Sugar and Bioenergy Segment - Sugar and Bioenergy segment net sales increased 8% to $1.2 billion in the third quarter of 2017 compared to $1.1 billion in the same quarter last year. The increase in net sales was primarily driven by trading and merchandising sales volumes.

Cost of goods sold increased 11% in the third quarter of 2017 compared to the same period of 2016, which is in line with the increase in net sales. The third quarter of 2017 results also included $8 million of indirect tax credits and $6 million of severance and restructuring charges related to our industrial operations.

Gross profit decreased to $36 million in the third quarter of 2017 from $67 million reported in the third quarter of 2016, primarily due to lower prices and lower sales volumes in our sugar milling operations and weaker contributions from risk management opportunities in our sugar trading & merchandising operations.

SG&A expenses of $31 million in the third quarter of 2017 were flat compared to the same period of 2016, primarily due to lower amortization expense in the quarter, offset by impairment charges of $1 million for intangible assets related to patents for aluminum phosphate technology and professional services charges of $1 million related to our GCP in the third quarter of 2017.

Foreign exchange results in the third quarter of 2017 were $1 million compared to $2 million in the same period of 2016. These results relate primarily to foreign currency hedges.

Segment EBIT decreased to $10 million in the third quarter of 2017 from $35 million in the third quarter of 2016, primarily due to lower prices and lower sales volumes in our sugar milling operations and weaker contributions from risk management opportunities in our sugar trading & merchandising operations. The third quarter results were also impacted by $6 million of severance and restructuring charges related to our industrial operations, $2 million of SG&A charges related to our GCP, $3 million of losses from our renewable oils affiliate in Brazil and $8 million of indirect tax credits.

Fertilizer Segment - Fertilizer segment net sales were $121 million in the third quarter of 2017 compared to $129 million in the third quarter of 2016, with no significant change in volumes.

Cost of goods sold were $112 million in the third quarter of 2017, consistent with the third quarter of 2016.

Gross profit decreased by $8 million to $9 million in the third quarter of 2017, down from $17 million in the comparable period of 2016. The decrease was primarily driven by lower margins in Argentina.

SG&A expenses were $2 million in the third quarter of 2017, compared to $6 million in the comparable period of 2016, primarily due to a reduction of bad debt expense.

Segment EBIT decreased by $4 million to $5 million in the third quarter of 2017 as compared to $9 million in the same period a year ago. The decrease in gross profit from lower margins in Argentina was offset by decreases in SG&A expenses compared to third quarter of 2016.

Interest - A summary of consolidated interest income and expense follows:

  Three Months Ended
September 30,
(US$ in millions) 2017 2016
Interest income $9
 $13
Interest expense (64) (73)

Interest income decreased to $9 million in the third quarter of 2017 compared to $13 million in the third quarter of 2016. Interest expense decreased primarily due to impacts from interest rate hedges.

Discontinued Operations - Discontinued operations results for the third quarter of 2017 were nil, compared to income of $5 million, net of tax, in the third quarter of 2016. Results in 2017 were primarily driven by the recovery of bad debt provisions and interest received related to long-term receivables from farmers that offset ongoing administrative expenses, income taxes and foreign exchange losses.

Nine Months Ended September 30, 2017 Compared to Nine Months Ended September 30, 2016
Net Income (Loss) Attributable to Bunge - For the nine monthsquarter ended SeptemberJune 30, 2017,2020, net income attributable to Bunge decreased by $254was $516 million, an increase of $302 million compared to $220net income attributable to Bunge of $214 million from $474 million infor the ninequarter ended June 30, 2019. For the six months ended SeptemberJune 30, 2016. This decrease resulted2020, net income attributable to Bunge was $332 million, an increase of $73 million, compared to net income attributable to Bunge of $259 million for the six months ended June 30, 2019. The increase for the three months ended June 30, 2020 was primarily from a decreasedue to higher Segment EBIT in segment EBIT of $359 million, particularly in agribusiness,our Agribusiness, Edible Oils Products, Milling Products and Fertilizer segments, partially offset by decreaseslower Segment EBIT in losses from discontinued operationsour Sugar and Bioenergy segment and Corporate and Other activities. The increase for the six months ended June 30, 2020 was primarily due to higher Segment EBIT in our Agribusiness and Fertilizer segments, partially offset by lower Segment in our Edible Oils Products and Sugar and Bioenergy segments, and Corporate and Other activities.
Earnings Per Common Share - Diluted - For the quarter ended June 30, 2020, net income tax expense.attributable to Bunge common shareholders, diluted, was $3.47 per share, an increase of $2.04 per share, compared to $1.43 per share for the quarter ended June 30, 2019. For the six months ended June 30, 2020, net income attributable to Bunge common shareholders, diluted, was $2.14 per share, an increase of $0.43 per share, compared to $1.71 per share for the six months ended June 30, 2019.
EBIT - For the quarter ended June 30, 2020, EBIT was $738 million, an increase of $384 million compared to EBIT of $354 million for the quarter ended June 30, 2019. For the six months ended June 30, 2020, EBIT was $568 million, an increase of $63 million compared to EBIT of $505 million for the six months ended June 30, 2019. The increase for the three months ended June 30, 2020 was primarily due to higher Segment EBIT in our Agribusiness, Edible Oils Products, Milling Products and Fertilizer segments, partially offset by lower Segment EBIT in our Sugar and Bioenergy segment and Corporate and Other activities. The increase for the six months ended June 30, 2020 was primarily due to higher Segment EBIT in our Agribusiness and Fertilizer segments, partially offset by lower Segment in our Edible Oils Products and Sugar and Bioenergy segments, and Corporate and Other activities.
Income Tax Expense(Expense) Benefit - InIncome tax expense for the ninethree months ended SeptemberJune 30, 2017, income tax (expense) / benefit2020 was $(2)$168 million compared to income tax expense of $(118) million infor the ninethree months ended SeptemberJune 30, 2016. The effective2019 of $60 million. Income tax rateexpense for the ninesix months ended SeptemberJune 30, 2017, decreased to 1%2020 was $113 million compared to 19% inincome tax expense for the ninesix months ended SeptemberJune 30, 2016.2019 of $98 million. The lowerincrease in income tax rate in 2017expense for the three and six month periods ended June 30, 2020 was primarily due to certain discrete items, includinghigher pretax income, associated with higher EBIT, as noted above.
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Liquidity and capital resources – At June 30, 2020, working capital, which equals total current assets less total current liabilities, was $3,972 million, an income tax benefitincrease of $32$322 million, for a favorable resolutioncompared to working capital of income tax matters in Asia$3,650 million at June 30, 2019, and an income tax benefitincrease of $17$319 million relatedcompared to a prior year tax electionworking capital of $3,653 million at December 31, 2019. The increase in South America. The 2016 year-to-date effective tax rate of 19% was drivenworking capital is primarily due to certain discrete items including an income tax benefitincreased RMI purchases associated with the timing of $60 million recorded for a change in estimate resulting from a tax election for North Americathe South American harvest period and an income tax benefit of $11 million recorded for income tax refund claims in Europe, partially offset by an income tax charge of $(32) million recorded for an uncertain tax position related to Asia. Excludingstrong farmer selling activity during the effect of these discrete items noted above, our effective tax rate for the ninesix months ended SeptemberJune 30, 2017,2020.
Segment Overview & Results of Operations
The Company's operations are organized, managed and 2016, was 22%classified into five reportable segments - Agribusiness, Edible Oil Products, Milling Products, Sugar and 26%, respectively. The reductionBioenergy, and Fertilizer, which are organized based upon their similar economic characteristics, nature of products and services offered, production processes, types and classes of customer, and distribution methods.
In December 2019, the Company contributed its Brazilian sugar and bioenergy operations, comprising the majority of its Sugar and Bioenergy segment, into a joint venture with the Brazilian biofuels business of BP p.l.c. ("BP") in exchange for cash and a 50% equity interest in the effective tax ratecombined entity, BP Bunge Bioenergia (the “Joint Venture”). The Company’s reported Sugar and Bioenergy results for 2020 therefore include its share of the net earnings in the Joint Venture, whereas the Company’s Sugar and Bioenergy results for 2019 reflect its 100% ownership interest in the Brazilian sugar and bioenergy operations contributed to the Joint Venture.
The Company’s remaining operations are not reportable segments, as defined by the applicable accounting standard, and are classified as Corporate and Other. Effective January 1, 2020, the Company changed its segment reporting to separately disclose Corporate and Other activities from 2016, after taking into accountits reporting segments, as further described in Note 20 - Segment Information. Certain reclassifications of prior period amounts within the discrete tax items noted above, is primarily attributablereporting segments have been made to favorable earnings mix and increased tax-exempt income applied on a lower base of pretax income.
A summary of certain items in our condensed consolidated statements of income and volumes by reportable segment for the periods indicated is set forth below.
  Nine Months Ended
September 30,
(US$ in millions, except volumes) 2017
2016
Volumes (in thousands of metric tons):  

 
Agribusiness 108,512
 101,776
Edible oil products 5,681
 5,106
Milling products 3,300
 3,395
Sugar and Bioenergy 6,677
 6,343
Fertilizer 830
 832
     
Net sales:  
  
Agribusiness $23,837
 $21,870
Edible oil products 5,877
 4,958
Milling products 1,169
 1,243
Sugar and Bioenergy 3,052
 2,541
Fertilizer 254
 268
Total $34,189
 $30,880
     

Cost of goods sold:  
  
Agribusiness $(23,141) $(20,831)
Edible oil products (5,518) (4,642)
Milling products (1,014) (1,031)
Sugar and Bioenergy (2,974) (2,433)
Fertilizer (237) (237)
Total $(32,884) $(29,174)
     
Gross profit:  
  
Agribusiness $696
 $1,039
Edible oil products 359
 316
Milling products 155
 212
Sugar and Bioenergy 78
 108
Fertilizer 17
 31
Total $1,305
 $1,706
     
Selling, general and administrative expenses:  
  
Agribusiness $(585) $(511)
Edible oil products (258) (238)
Milling products (103) (97)
Sugar and Bioenergy (87) (80)
Fertilizer (13) (15)
Total $(1,046) $(941)
     
Foreign exchange gains (losses):  
  
Agribusiness $93
 $13
Edible oil products 4
 (2)
Milling products (1) (5)
Sugar and Bioenergy 10
 5
Fertilizer 2
 (2)
Total $108
 $9
     
Noncontrolling interest losses (gains):  
  
Agribusiness $(3) $(13)
Edible oil products (5) (5)
Milling products —
 —
Sugar and Bioenergy —
 —
Fertilizer (2) (2)
Total $(10) $(20)
     
Other income (expense) - net:  
  
Agribusiness (1)
 $28
 $5
Edible oil products (1) (4)
Milling products (2) (3)
Sugar and Bioenergy (1) (13)
Fertilizer —
 1
Total $24
 $(14)

     
Segment EBIT:    
Agribusiness $230
 $533
Edible oil products 98
 66
Milling products 48
 107
Sugar and Bioenergy 1
 21
Fertilizer 4
 13
Total $381
 $740

conform to current presentation.
A reconciliation of Net income (loss) attributable to Bunge to Total Segment EBIT follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
(US$ in millions)2020201920202019
Net income (loss) attributable to Bunge$516  $214  $332  $259  
Interest income(6) (7) (13) (14) 
Interest expense62  88  139  163  
Income tax expense (benefit)168  60  113  98  
Noncontrolling interests' share of interest and tax(2) (1) (3) (1) 
Total Segment EBIT$738  $354  $568  $505  
Agribusiness Segment EBIT843  209  716  350  
Edible Oil Products Segment EBIT51  43  97  102  
Milling Products Segment EBIT30  25  48  47  
Fertilizer Segment EBIT19  6  24  8  
Sugar and Bioenergy Segment EBIT(85) (5) (135) (24) 
Corporate and Other EBIT(120) 76  (182) 22  
Total Segment EBIT$738  $354  $568  $505  

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  Nine Months Ended
September 30,
(US$ in millions) 2017 2016
Net income (loss) attributable to Bunge $220
 $474
Interest income (29) (37)
Interest expense 191
 189
Income tax expense (benefit) 2
 118
(Income) loss from discontinued operations, net of tax —
 8
Noncontrolling interest's share of interest and tax (3) (12)
Total Segment EBIT $381
 $740

Agribusiness Segment -
Three Months Ended
June 30,		Six Months Ended
June 30,
(US$ in millions, except volumes)2020201920202019
Volumes (in thousand metric tons)38,035  34,009  71,335  68,438  
Net sales$6,810  $7,068  $13,139  $13,987  
Cost of goods sold(5,925) (6,756) (12,265) (13,445) 
Gross profit885  312  874  542  
Selling, general and administrative expense(114) (125) (220) (238) 
Foreign exchange gains (losses)30  (10) 17  (19) 
EBIT attributable to noncontrolling interests(6) —  (4) 2  
Other income (expense) – net30  25  24  49  
Income (loss) from affiliates18  7  25  14
Total Agribusiness Segment EBIT$843  $209  $716  $350  

Three Months Ended June 30, 2020 Compared to Three Months Ended June 30, 2019
Agribusiness segment net sales increaseddecreased by 9%$258 million, or 4%, to $23.8 billion in the nine months ended September 30, 2017, compared to $21.9 billion in the nine months ended September 30, 2016. Volumes overall increased 7% compared to the nine months ended September 30, 2016. Higher crush volumes in Europe due to our new crush plant in Ukraine which started operations$6,810 million in the second quarter of 2016, the recent acquisition of two oilseed crushing facilities in Western Europe2020, compared to $7,068 million in the firstsecond quarter of 2017 and increased volumes in Brazil2019. The net decrease was primarily due to larger soybean and corn crops led to the increase infollowing:
•In Oilseeds, net sales comparedincreased $235 million due to 2016.higher soy volumes, primarily in China and Brazil, and higher overall softseed volumes.

•In Grains, net sales decreased $493 million due to lower overall commodity sales prices, which more than offset higher trading and distribution sales volumes.
Cost of goods sold increaseddecreased by 11%$831 million, or 12%, aligned withto $5,925 million in the increasessecond quarter of 2020 compared to $6,756 million in the second quarter of 2019. The net sales noted above. decrease was primarily due to the following:
•In addition,our Oilseeds business, the $104 million net decrease was primarily due to favorable mark-to-market results in our oilseed processing and distribution businesses, which more than offset the increase in cost of goods sold forassociated with higher net sales, as described above. Additionally, the nine months ended September 30, 2017, was impacted by higherbusiness benefited from favorable translation impacts on industrial costs, and depreciation from the recent acquisitionsas most currencies in Europe and an 11% appreciation of the Brazilian real againstwhich such expenses are denominated depreciated versus the U.S. dollar during the quarter.
•In our Grains business, the $727 million net decrease was primarily due to the decrease in net sales above, as well as favorable mark-to-market results in our ocean freight business, primarily related to the nine months ended September 30, 2017 compared to 2016.

reversal of bunker fuel hedges that negatively impacted the first quarter. Additionally the business benefited from favorable translation impacts on industrial costs, as most currencies in which such expenses are denominated depreciated versus the U.S. dollar during the quarter.
Gross profit decreasedincreased by $573 million, or 184%, to $696$885 million in the nine months ended September 30, 2017, from $1.0 billion in the nine months ended September 30, 2016, primarily driven by the combinationsecond quarter of farmer retention and increased competition in South America which impacted margins in our grain origination, oilseed processing and trading and distribution businesses and limited contributions from risk management due2020, compared to a lack of positioning opportunities.

SG&A expenses increased $74 million to $585$312 million in the nine months ended September 30, 2017,second quarter of 2019. The net increase was primarily due to the following:
•In Oilseeds, the increase of $339 million was due to higher net sales and lower cost of goods sold, as described above.
•In Grains, the increase of $234 million was due to significantly lower cost of goods sold, which represented a 14% increase from the $511more than offset lower net sales, as described above.
SG&A expenses decreased $11 million, or 9%, to $114 million in the same period last year. This increase included added general and administrative expenses in Europe relatedsecond quarter of 2020, compared to new acquisitions and an 11% appreciation of the Brazilian real against the U.S. dollar$125 million in the nine months ended September 30, 2016.second quarter of 2019. The increase also included a $9 million credit adjustment in Brazil, $7 million of transaction related costsdecrease was mainly due to savings associated with ongoing cost initiatives, lower expenses due to COVID-19 travel restrictions, and favorable translation impacts, as most currencies in which SG&A expenses are denominated depreciated versus the acquisitionUS dollar during the quarter.
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Table of two oilseed processing facilities in Europe that will not repeat, $4 million of impairment charges for intangible assets related to patents for aluminum phosphate technology, $4 million of one-time employee separation costs and $3 million of professional services charges related to our GCP.These increases were partially offset by cost savings and operating efficiencies in the nine months ended September 30, 2017.Contents
Foreign exchange results in the nine months ended September 30, 2017 were gainsincreased $40 million, to a gain of $93 million, compared to gains of $13$30 million in the nine months ended September 30, 2016. Thesesecond quarter of 2020, compared to a loss of $10 million in the second quarter of 2019. Foreign exchange results were primarily driven by gains on U.S. dollar-denominateddollar denominated loans receivable in non-U.S. functional currency operations.
Other income (expense) - net increased $5 million, or 20%, to fund operations and foreign exchange gains realizedincome of $30 million in the second quarter of 2020, compared to income of $25 million in the second quarter of 2019. The increase was primarily due to higher income earned from financial services activities.
Segment EBIT increased $634 million, or 303%, to $843 million in the second quarter of 2020, compared to $209 million in the second quarter of 2019. The net increase was primarily due to the appreciationfollowing:
•In Oilseeds, the increase of $371 million for the Chinese renminbisecond quarter of 2020 was primarily due to higher gross profit, lower SG&A expenses, increased foreign exchange results and increased Other income (expense) - net, as described above.
•In Grains, the increase of $263 million for the second quarter of 2020 was primarily due to higher gross profit, lower SG&A expenses, increased foreign exchange results and increased Other income (expense) - net, as described above.
Six Months Ended June 30, 2020 Compared to Six Months Ended June 30, 2019
Agribusiness segment net sales decreased by $848 million, or 6%, to $13,139 million in the six months ended June 30, 2020, compared to $13,987 million in the six months ended June 30, 2019. The net decrease was primarily due to the following:
•In Oilseeds, the decrease of $94 million for the six months ended June 30, 2020 was primarily due to lower sales volumes in our oilseed trading and distribution businesses in the first quarter of the year, in part due to COVID-19, partially offset by higher volumes in our soy processing businessdivision, primarily in Asia.China and Brazil, and higher overall softseed volumes in the second quarter of the year.

•In Grains, the decrease of $754 million for the six months ended June 30, 2020 was due to lower commodity sales prices and lower volumes in our grain trading and distribution businesses.

Cost of goods sold decreased by $1,180 million, or 9%, to $12,265 million in the six months ended June 30, 2020, compared to $13,445 million in the six months ended June 30, 2019. The net decrease was primarily due to the following:
•In Oilseeds, the decrease of $210 million for the six months ended June 30, 2020 was due to the decrease in net sales noted above, as well as favorable translation impacts on industrial costs, as most currencies in which such expenses are denominated depreciated versus the U.S. dollar during the year.
•In Grains, the decrease of $970 million for the six months ended June 30, 2020 was due to the decrease in net sales noted above, as well as favorable translation impacts on industrial costs, as most currencies in which such expenses are denominated depreciated versus the U.S. dollar during the year.
Gross profit increased by $332 million, or 61%, to $874 million in the six months ended June 30, 2020, compared to $542 million in the six months ended June 30, 2019. The net increase was primarily due to the following:
•In Oilseeds, the increase of $116 million for the six months ended June 30, 2020 was due to lower cost of goods sold, which more than offset lower net sales, as described above.
•In Grains, the increase of $216 million for the six months ended June 30, 2020 was due to lower cost of goods sold, which more than offset lower net sales, as described above.
SG&A decreased by $18 million, or 8%, to $220 million in the six months ended June 30, 2020, compared to $238 million in the six months ended June 30, 2019. The decrease was mainly due to savings associated with ongoing cost initiatives, lower expenses due to COVID-19 travel restrictions, and favorable translation impacts, as most currencies in which SG&A expenses are denominated depreciated versus the U.S. dollar during the year.
Foreign exchange results increased $36 million, or 189%, to $17 million in the six months ended June 30, 2020, compared to a loss of $19 million in the six months ended June 30, 2019. Foreign exchange results were primarily driven by gains on U.S. dollar denominated loans receivable in non-U.S. functional currency operations.
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Other income (expenses)(expense) - net wasdecreased by $25 million, or 51%, to income of $28$24 million in the ninesix months ended SeptemberJune 30, 2017,2020, compared to gainsincome of $5$49 million in the ninesix months ended SeptemberJune 30, 2016. Results for2019. The decrease was primarily due to lower results from our financial services activities earlier in the nine months ended September 30, 2017 included income earned in our Financial Services Group, offset by a $13 million impairment of our palm oil plantation affiliate in Indonesia. Results for the nine months ended September 30, 2016 included an impairment charge of $12 million on intangible assets related to certain patents of intellectual property.current year.

Segment EBIT decreasedincreased by $303$366 million, or 105%, to $230$716 million in the ninesix months ended SeptemberJune 30, 2017 from $5332020, compared to $350 million in the ninesix months ended SeptemberJune 30, 2016. This decrease2019. The increase was primarily driven by slow farmer selling in South America, which impacted margins in our grain origination, oilseed processing and trading distribution businesses, and lower contribution from risk management activities in the nine months ended September 30, 2017. Also contributing to lower EBIT, were the impact on costs from the appreciation of the Brazilian real against the U.S. dollar as compareddue to the nine months ended September 30, 2016, transaction costs related to the acquisition of two oilseed crushing facilities in Western Europe andfollowing:
•In Oilseeds, the increase of general$112 million for the six months ended June 30, 2020 was primarily due to higher gross profit, lower SG&A expenses, and administrativehigher foreign exchange results, as described above.
•In Grains, the increase of $254 million for the six months ended June 30, 2020 was primarily due to higher gross profit, lower SG&A expenses, for recent acquisitions and certain charges related to our GCP. These werehigher foreign exchange results, partially offset by foreign exchange gains in our edible oil production businesses in Europe and Asia compared to 2016.lower Other income (expense) - net, as described above.

Edible Oil Products Segment -
Three Months Ended
June 30,		Six Months Ended
June 30,
(US$ in millions, except volumes)2020201920202019
Volumes (in thousand metric tons)2,279  2,328  4,628  4,637  
Net sales$2,128  $2,206  $4,452  $4,445  
Cost of goods sold(1,982) (2,065) (4,178) (4,155) 
Gross profit146  141  274  290  
Selling, general and administrative expense(88) (93) (182) (176) 
Foreign exchange gains (losses)(4) (3) 3(1) 
EBIT attributable to noncontrolling interests(2) —  4(6) 
Other income (expense) – net(1) (2) (2) (5) 
Income (loss) from affiliates—  —  —  —  
Total Edible Oils Products Segment EBIT$51  $43  $97  $102  
Three Months Ended June 30, 2020 Compared to Three Months Ended June 30, 2019
Edible oil productsOil Products segment net sales decreased $78 million, or 4%, to $2,128 million in the second quarter of 2020, compared to $2,206 million in the second quarter of 2019, due to a combination of lower sales volumes and prices. Lower overall volumes and prices primarily relate to lower food services demand in North America and Europe and lower biofuel demand in Europe, due to local stay-at-home orders associated with COVID-19.
Cost of goods sold decreased $83 million, or 4%, to $1,982 million in the second quarter of 2020, compared to $2,065 million the second quarter of 2019. The decrease in cost of goods sold during the quarter was slightly higher than the decrease in net sales due to favorable translation impacts on industrial costs, as most currencies in which such expenses are denominated depreciated versus the U.S. dollar during the quarter.
Gross profit in the second quarter of 2020 increased $5 million, or 4%, to $146 million, compared to $141 million for the second quarter of 2019. The increase was primarily due to decreased cost of goods sold in excess of decreased net sales, as described above.
SG&A expenses decreased $5 million, or 5%, to $88 million in the second quarter of 2020, compared to $93 million in the second quarter of 2019, primarily due to lower expenses related to COVID-19 travel restrictions, as well as favorable translation impacts, as most currencies in which such expenses are denominated depreciated versus the U.S. dollar during the quarter.
Segment EBIT increased $8 million, or 19%, to $51 million for the second quarter of 2020, compared to $43 million in the second quarter of 2019. The increase was primarily due to higher gross profit and lower SG&A, as described above.
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Six Months Ended June 30, 2020 Compared to Six Months Ended June 30, 2019
Edible Oil Products segment net sales increased by 19%only $7 million, less than one percent, to $4,452 million in the ninesix months ended SeptemberJune 30, 2017 to $5.9 billion,2020, compared to $5.0 billion$4,445 million in the ninesix months ended SeptemberJune 30, 2016, resulting primarily from an 11% increase in2019, due to relatively flat volumes driven by our acquisitions of two edible oil production facilities in Europe, recent acquisition of an edible oil production facility in Argentina and increased volumes in Asia.

prices between the comparative periods.
Cost of goods sold increased by $23 million, or 1%, to $4,178 million in the ninesix months ended SeptemberJune 30, 2017 increased 19% from the same period of 2016, which is in line with the increase in net sales noted above, and primarily driven by the impact of the recent acquisitions in Europe and Argentina2020, compared to $4,155 million in the ninesix months ended SeptemberJune 30, 2016.

2019. The increase was primarily due to unfavorable mark-to-market results on hedges of palm oil purchases in Asia during the first quarter, which more than offset favorable translation impacts on industrial costs during the second quarter, as described above.
Gross profit in the ninesix months ended SeptemberJune 30, 2017 increased2020 decreased $16 million, or 6%, to $359$274 million, compared to $316$290 million for the ninesix months ended SeptemberJune 30, 2016.2019. The increasedecrease was primarily driven by stronger volumes and margins in Brazil and increases in Europe and Argentina from our recent acquisitions, offset in part by lower refining and packaging margins in the U.S. due to increased competition.

result of higher cost of goods sold, as described above.
SG&A expenses increased by 8%$6 million, or 3%, to $258$182 million in the ninesix months ended SeptemberJune 30, 20172020, compared to $176 million in the six months ended June 30, 2019. The increase was primarily due to increased bad debt expense in the first quarter, which more than offset favorable translation impacts on SG&A during the second quarter, as described above.
EBIT attributable to noncontrolling interests, an expense when subsidiaries with $238noncontrolling interests generate earnings before interest and tax, versus income when subsidiaries with noncontrolling interests generate loss before interest and tax, changed by $10 million, or 167%, to income of $4 million in the six months ended June 30, 2020, compared to expense of $6 million in the six months ended June 30, 2019. The change was primarily due to losses before interest and tax associated with our non-wholly-owned Bunge Loders Croklaan ("Loders") subsidiary in the six months ended June 30, 2020, primarily driven by factors mentioned above, compared to earnings before interest and tax in the same business during the six months ended June 30, 2019.
Segment EBIT decreased by $5 million, or 5%, to $97 million in the six months ended June 30, 2020, compared to $102 million in the six months ended June 30, 2019. The decrease was due to lower gross profit and increased SG&A, as noted above, partially offset by a lower share of EBIT attributable to noncontrolling interests.

Milling Products Segment

Three Months Ended
June 30,		Six Months Ended
June 30,
(US$ in millions, except volumes)2020201920202019
Volumes (in thousand metric tons)1,127  1,113  2,275  2,218  
Net sales$381  $430  $797  $856  
Cost of goods sold(330) (389) (700) (767) 
Gross profit51  41  97  89  
Selling, general and administrative expense(22) (25) (48) (51) 
Foreign exchange gains (losses)1  1  —  3  
EBIT attributable to noncontrolling interests—  —  —  —  
Other income (expense) – net—  8  (1) 6  
Income (loss) from affiliates—  —  —  —  
Total Milling Products Segment EBIT$30  $25  $48  $47  
Three Months Ended June 30, 2020 Compared to Three Months Ended June 30, 2019

Milling Products segment net sales decreased $49 million, or 11%, to $381 million in the second quarter of 2020, compared to $430 million in the second quarter of 2019. The decrease was primarily due to lower average wheat sales prices in Mexico and South America. Sales volumes were relatively flat.

Cost of goods sold decreased $59 million, or 15%, to $330 million in the second quarter of 2020, compared to $389 million in the second quarter of 2019. The decrease was primarily due to lower average raw material commodity prices, in line with the decrease in net sales above, as well as favorable translation impacts on industrial costs, as the Brazilian real and Mexican peso, in which many such costs are denominated, bothdepreciated versus the U.S. dollar
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during the quarter. Additionally, cost of goods sold in the prior year was negatively impacted by an impairment charge recorded in respect of our U.S. extrusion business, which was sold in the second quarter of 2020.

Gross profit increased $10 million, or 24%, to $51 million in the second quarter of 2020, compared to $41 million in the second quarter of 2019. The increase was primarily due to a decrease in cost of goods sold in excess of that in net sales, as described above.

SG&A expenses decreased $3 million, or 12%, to $22 million in the second quarter of 2020, compared to $25 million in the same period a year ago. The decrease was primarily due to favorable translation impacts, following the depreciation of the Brazilian real and Mexican peso versus the U.S. dollar in the quarter.

Other income (expense) - net decreased by $8 million, or 100%, to zero in the second quarter of 2020, compared to income of $8 million in the second quarter of 2019. The decrease is primarily due to a one-time gain recorded on the settlement of an arbitration case in the prior year.

Segment EBIT increased $5 million, or 20%, to $30 million in the second quarter of 2020,compared to $25 million in the second quarter of 2019. The increase includeswas due to higher gross profit and lower SG&A expenses, as described above.

Six Months Ended June 30, 2020 Compared to Six Months Ended June 30, 2019

Milling Products segment net sales decreased by $59 million, or 7%, to $797 million in the six months ended June 30, 2020, compared to $856 million in the six months ended June 30, 2019. The decrease was primarily due to lower average wheat sales prices in Mexico and South America, which more than offset a slight volume increase.

Cost of goods sold decreased by $67 million, or 9%, to $700 million in the six months ended June 30, 2020, compared to $767 million in the six months ended June 30, 2019. The decrease was primarily due to lower average raw material commodity prices, in line with the decrease in net sales above, as well as favorable translation impacts on industrial costs, as the Brazilian real and Mexican peso, in which many such costs are denominated, bothdepreciated versus the U.S. dollar during the year. Additionally, cost of goods sold in the prior year was negatively impacted by an impairment chargescharge associated with our U.S. extrusion business, which was sold in the second quarter of $22020.

Gross profit increased by $8 million, for intangible assets relatedor 9%, to patents for aluminum phosphate technology$97 million in the six months ended June 30, 2020, compared to $89 million in the six months ended June 30, 2019. The increase was primarily due to a decrease in cost of goods sold in excess of a decrease in net sales, as described above.

SG&A expenses decreased by $3 million, or 6%, to $48 million in the six months ended June 30, 2020, compared to $51 million in the six months ended June 30, 2019. The decrease is primarily due to lower expenses associated with COVID-19 travel restrictions, as well as favorable translation impacts following the depreciation of the Brazilian real and professional services chargesMexican peso, versus the U.S. dollar during the quarter.

Other income (expense) - net decreased by $7 million, or 117%, to an expense of $1 million related to our GCP and acquisition related costs and increased general and administrative expenses associated with our recent acquisitions.

Foreign exchange results in the ninesix months ended SeptemberJune 30, 20172020, compared to income of $6 million in the six months ended June 30, 2019. The decrease is primarily due to a one-time gain on the settlement of an arbitration case in the prior year.

Segment EBIT increased by $1 million, or 2%, to $48 million in the six months ended June 30, 2020, compared to $47 million in the six months ended June 30, 2019. The slight increase was due to higher gross profit and lower SG&A expenses, offset by lower Other income (expense) - net, as described above.


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Fertilizer Segment

Three Months Ended
June 30,		Six Months Ended
June 30,
(US$ in millions, except volumes)2020201920202019
Volumes (in thousand metric tons)375  305  551  501  
Net sales$117  $108  $171  $177  
Cost of goods sold(95) (97) (140) (161) 
Gross profit22  11  31  16  
Selling, general and administrative expense(3) (4) (7) (7) 
Foreign exchange gains (losses)—  —  —  —  
EBIT attributable to noncontrolling interests—  —  —  —  
Other income (expense) – net—  (1) —  (1) 
Income (loss) from affiliates—  —  —  —  
Total Fertilizer Segment EBIT$19  $6  $24  $8  
Three Months Ended June 30, 2020 Compared to Three Months Ended June 30, 2019
Fertilizer segment net sales increased $9 million, or 8%, to $117 million in the second quarter of 2020, compared to $108 million in the second quarter of 2019. The increase was primarily due to higher sales volumes and average sales prices in Argentina, as farmers accelerated purchases in anticipation of higher local prices, as well as higher sales volumes in Brazil, partially offset by lower average sales prices in Brazil.
Cost of goods sold decreased $2 million, or 2%, to $95 million in the second quarter of 2020, compared to $97 million in the second quarter of 2019. The decrease was due to lower average raw material costs in Argentina and Brazil, as well as favorable translation impacts on industrial costs, as the Brazilian real and Argentinian peso, in which many such costs are denominated, bothdepreciated versus the U.S. dollar in the quarter.
Gross profit increased $11 million, or 100%, to $22 million in the second quarter of 2020, compared to $11 million in the second quarter of 2019. The increase was due to a combination of higher net sales and lower cost of goods sold, as described above.
SG&A expenses decreased $1 million, or 25%, to $3 million in the second quarter of 2020, compared to $4 million in the second quarter of 2019. The decrease was mainly due to favorable translation impacts following the depreciation of the Brazilian real and Argentinian peso versus the U.S. dollar in the quarter.
        Segment EBIT increased $13 million, or 217%, to $19 million in the second quarter of 2020, compared to $6 million in the second quarter of 2019. The increase was due to higher gross profits and lower SG&A expenses, as described above.
Six Months Ended June 30, 2020 Compared to Six Months Ended June 30, 2019
Fertilizer segment net sales decreased by $6 million, or 3%, to $171 million in the six months ended June 30, 2020, compared to $177 million in the six months ended June 30, 2019. The decrease was due to lower average prices in Argentina and Brazil, primarily during the first quarter, partially offset by higher sales volumes in Argentina, especially in the second quarter.
Cost of goods sold decreased by $21 million, or 13%, to $140 million in the six months ended June 30, 2020, compared to $161 million in the six months ended June 30, 2019. The decrease was primarily due to lower average raw material costs in Argentina and Brazil, as well as favorable translation impacts on industrial costs, as the Brazilian real and Argentinian peso, in which many such costs are denominated, bothdepreciated versus the U.S. dollar in the six month period.
Gross profit increased by $15 million, or 94%, to $31 million in the six months ended June 30, 2020, compared to $16 million in the six months ended June 30, 2019. The increase was primarily due to lower cost of goods sold in excess of lower net sales, as described above.
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SG&A expenses were flat at $7 million in the six months ended June 30, 2020 and $7 million in the six months ended June 30, 2019, as higher bad debt expenses in the first quarter of 2020 offset favorable translation impacts in the second quarter of 2020.
        Segment EBIT increased by $16 million, or 200%, to $24 million in the six months ended June 30, 2020, compared to $8 million in the six months ended June 30, 2019. The increase was due to higher gross profit and lower SG&A expenses, as described above.
Corporate and Other
Three Months Ended
June 30,		Six Months Ended
June 30,
(US$ in millions, except volumes)2020201920202019
Net sales$—  $—  $—  $—  
Cost of goods sold1  3  1  11  
Gross profit1  3  1  11  
Selling, general and administrative expense(119) (80) (183) (148) 
Foreign exchange gains (losses)—  —  1  1  
EBIT attributable to noncontrolling interests—  —  —  —  
Other income (expense) – net(2) 153  (1) 158  
Income (loss) from affiliates—  —  —  —  
Total Corporate and Other$(120) $76  $(182) $22  

Three Months Ended June 30, 2020 Compared to Three Months Ended June 30, 2019
Segment EBIT decreased $196 million, or 258%, to a loss of $120 million in the second quarter of 2020, compared to income of $76 million in the second quarter of 2019. The decrease is primarily due to lower results from our corporate venture capital unit, which benefited from the initial public offering of one of its investments, and subsequent mark-to-market gains, in the prior year, as well as a bad debt reserve and related legal provision in relation to a disputed account receivable balance stemming from an historical business dating back to 2015, which was deemed uncollectible in the current period.
Six Months Ended June 30, 2020 Compared to Six Months Ended June 30, 2019
Segment EBIT decreased by $204 million, or 927%, to a loss of $182 million in the six months ended June 30, 2020, compared to income of $22 million in the six months ended June 30, 2019. The decrease is primarily due to lower results from our corporate venture capital unit, which benefited from the initial public offering of one of its investments, and subsequent mark-to-market gains in the prior year period, as well as a bad debt reserve and related legal provision in relation to a disputed account receivable balance stemming from an historical business dating back to 2015, which deemed uncollectible in the current period.

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Sugar and Bioenergy Segment
Three Months Ended
June 30,		Six Months Ended
June 30,
(US$ in millions, except volumes)2020201920202019
Volumes (in thousand metric tons)62  828  148  1,644  
Net sales$26  $284  $76  $569  
Cost of goods sold(26) (280) (74) (568) 
Gross profit—  4  2  1  
Selling, general and administrative expense—  (8) (1) (20) 
Foreign exchange gains (losses)—  1  —  (2) 
EBIT attributable to noncontrolling interests—  1  —  —  
Other income (expense) – net—  (2) —  (2) 
Income (loss) from affiliates(85) (1) (136) (1) 
Total Sugar and Bioenergy Segment EBIT$(85) $(5) $(135) $(24) 

Three Months Ended June 30, 2020 Compared to Three Months Ended June 30, 2019
Sugar and Bioenergy segment net sales decreased $258 million, or 91%, to $26 million in the second quarter of 2020, compared to $284 million in the second quarter of 2019. The decrease was primarily due to the contribution of our Brazilian sugar and bioenergy operations, comprising the majority of our Sugar and Bioenergy segment, into the Joint Venture during the fourth quarter of 2019. Remaining sales comprise corn-based ethanol distribution activities in North America.
Cost of goods sold decreased $254 million, or 91%, to $26 million in the second quarter of 2020, compared to $280 million in the second quarter of 2019. The decrease was in line with the decrease in net sales above, and is due to the contribution of our Brazilian sugar and bioenergy operations, comprising the majority of our Sugar and Bioenergy segment, into the Joint Venture during the fourth quarter of 2019. Remaining cost of goods sold comprise corn-based ethanol distribution activities in North America.
Gross profit decreased $4 million, or 100%, to zero in the second quarter of 2020, compared to income of $4 million in the second quarter of 2019. The decrease is due to lower net sales and cost of goods sold, as described above.
SG&A expenses decreased by $8 million, or 100%, to zero in the second quarter of 2020, compared to losses of $2$8 million in 2016 relatedthe second quarter of 2019. The decrease was due to contribution of our Brazilian sugar and bioenergy operations, comprising the majority of our Sugar and Bioenergy segment, into the Joint Venture during the fourth quarter of 2019.
Income (loss) from affiliates decreased $84 million, to a loss of $85 million in the second quarter of 2020, compared to a loss of $1 million in the second quarter of 2019. The decrease is due to our share of losses associated with the Joint Venture. The main drivers of the loss of the Joint Venture were significant foreign exchange gainslosses on U.S. dollar denominated debt, due to a large depreciation in the Brazilian real in the quarter, as well as operating losses driven by lower ethanol volumes and derivative instruments and hedges.

prices associated with lower global crude oil demand in the wake of COVID-19 travel restrictions.
Segment EBIT increaseddecreased $80 million, or 1,600%, to $98 million for the nine months ended September 30, 2017, up from $66a loss of $85 million in the nine months ended Septembersecond quarter of 2020, compared to a loss of $5 million in the second quarter of 2019. The decrease is due to a large decrease in income (loss) from affiliates, as described above.
Six Months Ended June 30, 2016, primarily from higher margins2020 Compared to Six Months Ended June 30, 2019
Sugar and volumes in our Brazil business and increased volumes with acquisitions in Argentina and Europe. The increases were partially offset by the one-time charges related to our GCP.

Milling Products Segment - Milling productsBioenergy segment net sales were $1.2 billiondecreased by $493 million, or 87%, to $76 million in the ninesix months ended SeptemberJune 30, 2017,2020, compared to $1.2 billion from$569 million in the same period a year ago resulting primarily from a 3%six months ended June 30, 2019. The decrease in volumes driven by weak macro-economic conditions and pressure from the record wheat crop in Brazil, which increased local competition, and softer demand for flour in Mexico comparedsales was primarily due to the nine months ended September 30, 2016.

contribution of our Brazilian sugar and bioenergy operations, comprising the majority of our Sugar and Bioenergy segment, into the Joint Venture during the fourth quarter of 2019.
Cost of goods sold decreased by 2%$494 million, or 87%, to $1,014 million for the nine months ended September 30, 2017 from $1,031$74 million in the ninesix months ended SeptemberJune 30, 2016, primarily due2020, compared to lower volumes in Brazil. The nine months ended September 30, 2017, was impacted by $1 million of severance and other employee benefit costs related to our GCP and the nine months ended September 30, 2016, included a recovery of $14 million in Brazilian import taxes paid in prior years.

Gross profit decreased by 27% to $155$568 million in the ninesix months ended June 30, 2019. The decrease was in line with the decrease in net sales
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Table of 2017, down from $212 million in the nine months ended September 30, 2016, primarily due to increased competitionContents
above, and competitive pricing in Brazil that reduced margins and lower volume and unfavorable product mix in Mexico.

SG&A expenses increased to $103 million in the nine months ended September 30, 2017 from $97 million, primarilyis due to the 11% appreciationcontribution of our Brazilian sugar and bioenergy operations, comprising the Brazilian real against the U.S. dollar compared to the nine months ended

September 30, 2016, $1 millionmajority of impairment charges for intangible assets and $1 million of professional services charges related to our GCP.

Segment EBIT decreased to $48 million in the nine months ended September 30, 2017, from $107 million last year as a result of lower gross profit driven by continued weak economic conditions and lower demand for wheat products in Brazil and Mexico. In addition, the nine months ended September 30, 2016 included a recovery of $14 million in Brazilian import taxes paid in prior years.

Sugar and Bioenergy Segment - Sugar and Bioenergy segment, net sales increased to $3.1 billion ininto the nine months ended September 30, 2017 compared to $2.5 billion inJoint Venture during the same period last year. The 20% increase in sales was primarily driven by higher sugar sales volumes and an 11% appreciationfourth quarter of the Brazilian real against the U.S. dollar which positively impacted domestic sales of sugar and ethanol in Brazil when converted into U.S. dollar.

Cost of goods sold increased 22% in the nine months ended September 30, 2017 compared to the same period September 30, 2016, primarily due to higher sales volumes and the appreciation of the Brazilian real compared to the U.S. dollar. Results for the nine months ended September 30, 2017 also included $15 million of severance and restructuring charges related to our industrial operations and $8 million of indirect tax credits.

2019.
Gross profit decreasedincreased by $1 million, or 100%, to $78$2 million in the ninesix months ended SeptemberJune 30, 2017 from the $108 million reported in the nine months ended September 30, 2016. Higher sales volumes and $8 million related to indirect tax credits were offset by lower margins in our sugar trading and merchandising business and $15 million in severance and restructuring charges. Results and related development costs associated with our renewable oils affiliate in Brazil were a loss of $15 million for the nine months ended September 30, 2017.

SG&A expenses increased by 9% to $87 million in the nine months ended September 30, 2017 from $80 million in the comparable period September 30, 2016, primarily due to the 11% appreciation of the Brazilian real and by impairment charges of $1 million for intangible assets related to patents for aluminum phosphate technology and professional services charges of $1 million related to our GCP.

Foreign exchange results in the nine months ended September 30, 2017 were $10 million2020, compared to $5 million in the same period September 30, 2016. These results relate primarily to gains on foreign currency hedges.

Segment EBIT decreased to $1 million in the ninesix months ended SeptemberJune 30, 2017 from $212019. The decrease is driven by lower cost of goods sold in excess of lower sales, as described above.
SG&A expenses decreased by $19 million, or 95%, to $1 million in the ninesix months ended SeptemberJune 30, 2016, as higher sugar sales volumes along with foreign exchange gains and indirect tax credits were offset by lower margins in our sugar trading and merchandising business, $16 million in severance and restructuring charges and $1 million of impairment charges related2020, compared to our GCP.

Fertilizer Segment - Fertilizer segment net sales decreased 5% to $254$20 million in the ninesix months ended SeptemberJune 30, 2017, compared to $268 million in the nine months ended September 30, 2016, primarily due to lower export volumes and lower prices in Argentina compared to nine months ended 2016.

Cost of goods sold for the nine months ended September 30, 2017 were $237 million, unchanged compared to the nine months ended September 30, 2016.

Gross profit decreased by $14 million to $17 million in the nine months ended September 30, 2017, from $31 million in the comparable period September 30, 2016.2019. The decrease was primarily due to the contribution of our Brazilian sugar and bioenergy operations, comprising the majority of our Sugar and Bioenergy segment, into the Joint Venture during the fourth quarter of 2019.
Income (loss) from affiliates decreased $135 million, to a loss of $136 million in the six months ended June 30, 2020, from a loss of $1 million for the six months ended June 30, 2019. The decrease is due to our share of losses associated with our investment in the Joint Venture. The main drivers of the loss of the joint venture were significant foreign exchange losses on U.S. dollar denominated debt, due to a large depreciation in the Brazilian real in the six months ended June 30, 2020, as well as operating losses driven by lower ethanol volumes and prices associated with lower marginsglobal crude oil demand in Argentina from higher raw material costs.

the wake of COVID-19 travel restrictions.
Segment EBIT decreased by $9$111 million, or 463%, to $4a loss $135 million in the ninesix months ended SeptemberJune 30, 2017 from $132020, compared to a loss of $24 million in the same period a year ago, primarily driven by lower volumes and margins in 2017 when compared to the ninesix months ended SeptemberJune 30, 2016.2019. The decrease is due to a large decrease in income (loss) from affiliates, as described above.

Interest - A summary of consolidated interest income and expense follows:

Three Months Ended
June 30,		Six Months Ended
June 30,
(US$ in millions)2020201920202019
Interest income$6  $7  $13  $14  
Interest expense(62) (88) (139) (163) 
  Nine Months Ended
September 30,
(US$ in millions) 2017 2016
Interest income $29
 $37
Interest expense (191) (189)

Interest income decreased $8was $6 million between 2017 and 2016.in the second quarter of 2020, compared to $7 million in the second quarter of 2019. Interest expense remained relatively unchangeddecreased by $26 million, or 30%, to $62 million in the second quarter of 2020, compared to nine months$88 million in the second quarter of 2016.2019. The decrease in net interest expense was due to lower average debt levels following the contribution of our Brazilian sugar and bioenergy operations, comprising the majority of our Sugar and Bioenergy segment, into the Joint Venture during the fourth quarter of 2019.


Discontinued Operations - Discontinued operations results forInterest income was $13 million in the ninesix months ended SeptemberJune 30, 2017 were nil,2020, compared to a loss of $8$14 million net of tax, in the same period as 2016.

Results improvedsix months ended June 30, 2019. Interest expense decreased by $24 million, or 15%, to $139 million in 2017 primarily driven by the recovery of bad debt provisions related to long-term receivables from farmers that offset ongoing administrative expenses and lower foreign exchange lossessix months ended June 30, 2020, compared to $163 million in the same periodsix months ended June 30, 2019. The decrease in 2016.net interest expense was due to lower variable interest rates in the six months ended June 30, 2020, as well as lower average debt levels following the contribution of our Brazilian sugar and bioenergy operations, and related debt, to the Joint Venture, during the fourth quarter of 2019.
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Liquidity and Capital Resources
Liquidity
Our main financial objectives are to prudently manage financial risks, ensure consistent access to liquidity and minimize cost of capital in order to efficiently finance our business and maintain balance sheet strength. We generally finance our ongoing operations with cash flows generated from operations, issuance of commercial paper, borrowings under various bilateral and syndicated revolving credit facilities, term loans and proceeds from the issuance of senior notes. Acquisitions and long-lived assets are generally financed with a combination of equity and long-term debt.
OurWorking Capital
As of
US$ in millions, except current ratioJune 30, 2020June 30, 2019December 31, 2019
Cash and cash equivalents$277  $238  $320  
Trade accounts receivable, net1,526  1,711  1,705  
Inventories6,007  5,875  5,038  
Other current assets(1)
3,658  3,283  3,185  
Total current assets$11,468  $11,107  $10,248  
Short-term debt$1,535  $1,885  $771  
Current portion of long-term debt522  424  507  
Trade accounts payable2,602  3,053  2,842  
Current operating lease obligations220  231  216  
Other current liabilities(2)
2,617  1,864  2,259  
Total current liabilities$7,496  $7,457  $6,595  
Working capital(3)
$3,972  $3,650  $3,653  
Current ratio(3)
1.53  1.49  1.55  
(1) Includes assets held for sale and other current assets.
(2) Includes liabilities held for sale and other current liabilities.
(3) Working capital is total current assets less total current liabilities; current ratio which is a widely used measure of liquidity and is defined asrepresents total current assets divided by total current liabilities,liabilities.
Working capital was 1.60 and 1.44$3,972 million at SeptemberJune 30, 2017 and2020, an increase of $319 million, or 9%, from working capital of $3,653 million at December 31, 2016, respectively.2019, and an increase of $322 million, or 9% from working capital of $3,650 million at June 30, 2019.
Cash and Cash Equivalents - Cash and cash equivalents were $389 million and $934$277 million at SeptemberJune 30, 2017 and2020, a decrease of $43 million from $320 million at December 31, 2016, respectively.2019, and an increase of $39 million from $238 million at June 30, 2019. Cash balances are managed in accordance with our investment policy, the objectives of which are to preserve the principal value of our cash assets, maintain a high degree of liquidity and deliver competitive returns subject to prevailing market conditions. Cash balances are typically invested in short term deposits with highly-rated financial institutions and in U.S. government securities.
Readily Marketable Trade accounts receivable, net - Trade accounts receivable, net were $1,526 million at June 30, 2020, a decrease of $179 million from $1,705 million at December 31, 2019, and a decrease of $185 million from $1,711 million at June 30, 2019. The decreases from December 31, 2019 and June 30, 2019 are primarily due to negative foreign exchange impacts in Brazil, the recording of a bad debt reserve in relation to collection proceedings involving an historical outstanding account receivable due from a customer, and the timing of collections in our fertilizer business in South America.
Inventories (“RMI”) - Inventories were $6,007 million at June 30, 2020, an increase of $969 million from $5,038 million at December 31, 2019, and an increase of $132 million from inventory of $5,875 million at June 30, 2019. The increase from December 31, 2019 is primarily related to an increase in RMI arecoinciding with the timing of the South American harvest, and accelerated inventory purchases following a strong willingness of local farmers to sell agricultural commodity products priced in U.S. dollars, in response to a depreciation in local currencies versus the U.S. dollar.
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RMI comprises agricultural commodity inventories, such as soybeans, soybean meal, soybean oil, corn, wheat and sugarwheat that are readily convertible to cash because of their commodity characteristics, widely available markets and international pricing mechanisms. Total RMI in our Agribusiness segment are reported at fair value and were $4,398was $4,807 million and $3,593and $3,934 million at SeptemberJune 30, 20172020 and December 31, 2016, respectively. Of these amounts $3,3512019, respectively (see Note 7 - Inventories, to our condensed consolidated financial statements).
Other current assets - Other current assets were $3,658 million and $2,523at June 30, 2020, an increase of $473 million were attributable to merchandising activitiesfrom $3,185 million at September 30, 2017 and December 31, 2016, respectively. RMI at fair value in the aggregate amount2019, and an increase of $109$375 million and $123from $3,283 million at SeptemberJune 30, 20172019. The increase in Other current assets at June 30, 2020 is primarily due to unrealized gains on derivative contracts and the reclassification of certain U.S. grain assets as held for sale (see Note 3 - Portfolio Rationalization Initiatives, to our condensed consolidated financial statements).
Short term debt - Short term debt was $1,535 million at June 30, 2020, an increase of $764 million from $771 million at December 31, 2016, respectively, were included2019, and a decrease of $350 million from $1,885 million at June 30, 2019. The increase in our Edible Oil Products segment inventories. RMI at fair value inshort term debt from December 31, 2019 was primarily to fund higher average working capital levels, primarily increased RMI. The decrease from June 30, 2019 is primarily due to lower debt levels following the sale of the Company's Brazilian sugar and bioenergy assets, forming the majority of its Sugar and Bioenergy segment in late 2019, offset by higher average working capital funding requirements, as described above.
Trade accounts payable - Trade accounts payable were $195 million and $139$2,602 million at SeptemberJune 30, 2017 and2020, a decrease of $240 million from $2,842 million at December 31, 2016, respectively. Of these amounts, $1892019, and a decrease of $451 million and $139from $3,053 million at SeptemberJune 30, 2017 and2019. The decrease in Trade accounts payable from December 31, 2016, respectively, can be attributed 2019 and June 30, 2019 is due to the reclassification of certain liabilities associated with U.S. grain liabilities as held for sale, as well as the timing of payments on account.
Other current liabilities - Other current liabilities were $2,617 million at June 30, 2020, a increase of $358 million from $2,259 million at December 31, 2019, and an increase of $753 million from $1,864 million at June 30, 2019. The increases from December 31, 2019 and June 30, 2019 are primarily due to unrealized losses on derivative contracts and liabilities held for sale (see Note 3 - Portfolio Rationalization Initiatives, to our merchandising business.condensed consolidated financial statements).
Debt
Financing Arrangements and Outstanding Indebtedness - We conduct most of our financing activities through a centralized financing structure that provides the companyCompany with efficient access to debt and capital markets. This structure includes a master trust, the primary assets of which consist of intercompany loans made to Bunge Limited and its subsidiaries. Certain of Bunge Limited’s 100% owned finance subsidiaries, Bunge Limited Finance Corp., Bunge Finance Europe B.V. and Bunge Asset Funding Corp., fund the master trust with short and long-term debt obtained from third parties, including through our commercial paper program and certain credit facilities, as well as the issuance of senior notes. Borrowings by these finance subsidiaries carry full, unconditional guarantees by Bunge Limited.
Revolving Credit Facilities - At SeptemberJune 30, 2017,2020, we had approximately $5,015$4,315 million of aggregate committed borrowing capacity under our commercial paper program and various revolving bilateral and syndicated credit facilities, of which $4,740

$3,617 million was unused and available. The following table summarizes these facilities as of the periods presented:
(US$ in millions)   
Total Committed
Capacity
 Borrowings Outstanding
Commercial Paper Program
and Revolving Credit Facilities
 Maturities September 30,
2017		 September 30,
2017		 December 31,
2016
Commercial paper 2019 $600
 $—
 $—
Long-term revolving credit facilities (1)
 2018 - 2022 4,415
 275
 —
Total   $5,015
 $275
 $—
(US$ in millions) Total Committed
Capacity		Borrowings Outstanding
Commercial Paper Program
and Revolving Credit Facilities		MaturitiesJune 30,
2020		June 30,
2020		December 31,
2019
Commercial paper2023$600  $498  $—  
Long-term revolving credit facilities (1)
2022 - 2023$3,715  200  —  
Total $4,315  $698  $—  
(1)
(1)Borrowings under the revolving credit facilities that have maturities greater than one year from the date of the condensed consolidated balance sheets are classified as long-term debt, consistent with the long-term maturity of the underlying facilities. However, individual borrowings under the revolving credit facilities are generally short-term in nature, bear interest at variable rates and can be repaid or renewed as each such individual borrowing matures.
        We had no borrowings outstanding at June 30, 2020 under the revolving credit facilities that have maturities greater than one year from the date of the condensed consolidated balance sheets are classified as long-term debt, consistent with the long-term maturity of the underlying facilities. However, individual borrowings under the revolving credit facilities are generally short-term in nature, bear interest at variable rates and can be repaid or renewed as each such individual borrowing matures.
On September 6, 2017, we entered into an amendment agreement to our unsecured $865$1,100 million Amended and Restated Credit Agreement, dated asfive-year syndicated revolving credit agreement (the "Credit Agreement") with certain lenders party thereto maturing December 14, 2023. We have the option to request an extension of June 17, 2014 (the “Credit Agreement”). The amendment agreement extends the maturity date of the Credit Agreement for two additional one-year periods,
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subject to September 6, 2022. The amendment agreement also lowers the rangeconsent of margin applicable to our borrowings under the Credit Agreement.lenders. Borrowings under the Credit Agreement will bear interest at LIBOR plus a margin, which will vary from 1.00% to 1.75% per annum,1.625%, based on the credit ratings of our senior long-term unsecured debt.debt ("Rating Level"). Amounts under the Credit Agreement that remain undrawn are subject to a commitment fee payable quarterly based on the average undrawn portion of the Credit Agreement at rates ranging from 0.125%0.09% to 0.275%0.225%, varying based on the credit ratingsRating Level. We may, from time to time, request one or more of our senior long-term unsecured debt. the existing lenders or new lenders to increase the total commitments under the Credit Agreement by up to $200 million pursuant to an accordion provision.
We had $75$200 million of borrowings outstanding Septemberat June 30, 20172020 under our $1,750 million unsecured syndicated revolving credit facility with certain lenders party thereto maturing December 12, 2022 (the ‘‘$1.75 Billion 2022 Facility’’). Borrowings under the Credit Agreement.
We had no borrowings outstanding at September 30, 2017 under our three-year unsecured bilateral revolving credit facilities (the “Facilities”) totaling $700 million, which are maturing at various dates in June and September, 2019. Borrowings under these Facilities$1.75 Billion 2022 Facility bear interest at LIBOR plus a margin, which will vary from 0.65%0.30% to 1.40%1.30% per annum, based on the credit ratings of our senior long-term unsecured debt. Amounts under the Facilities that remain undrawn areThe applicable margin is also subject to a commitment fee payable at a rate ranging from 0.20%certain premiums or discounts tied to 0.25%.
We had $200 million of borrowings outstanding at September 30, 2017 under our $1,750 million unsecured syndicated revolving credit facility (the ‘‘Facility’’) withcriteria determined by certain lenders party thereto maturing August 10, 2018. Borrowings under the Facility bear interest at LIBOR plus a margin, which will vary from 0.35% to 1.35% per annum, based on the credit ratings of our senior long-term unsecured debt.sustainability targets. We also pay a fee that varies from 0.10% to 0.40% per annum, based on the utilization of the $1.75 Billion 2022 Facility. Amounts under the $1.75 Billion 2022 Facility that remain undrawn are subject to a commitment fee payable quarterly in arrears at a rate of 35% of the margin specified above, which varies based on the rating level at each quarterly payment date. We may, from time to time, with the consent of the facility agent, request one or more of the existing lenders or new lenders to increase the total commitments under the $1.75 Billion 2022 Facility by up to $250 million pursuant to an accordion provision.
We had no borrowings outstanding at SeptemberJune 30, 20172020 under our $1,100unsecured $865 million five-year unsecured syndicated revolving credit agreementfacility, maturing September 6, 2022 (the ‘‘Credit Agreement’’"$865 Million 2022 Facility") with certain lenders party thereto, maturing November 20, 2019.. Borrowings under the Credit Agreement$865 Million 2022 Facility bear interest at LIBOR plus a margin, which will vary from 1.00% to 1.75% per annum, based on the credit ratings of our senior long-term unsecured debt (‘‘Rating Level’’).debt. Amounts under the Credit Agreement$865 Million 2022 Facility that remain undrawn are subject to a commitment fee ranging from 0.10% to 0.25%, varyingpayable quarterly based on the Rating Level.average undrawn portion of the $865 Million 2022 Facility at rates ranging from 0.125% to 0.275%, based on the credit ratings of our senior long-term unsecured debt.
Our commercial paper program is supported by committed back-up bank credit lines (the ‘‘Liquidity Facility’’) equal to the amount of the commercial paper program provided by lending institutions that are required to be rated at least A-1 by Standard & Poor’s and P-1 by Moody’s Investor Services. The cost of borrowing under the Liquidity Facility would typically be higher than the cost of issuance under our commercial paper program. At SeptemberJune 30, 2017, no2020, $498 million of borrowings were outstanding under the commercial paper program and no borrowings were outstanding under the Liquidity Facility. The Liquidity Facility is our only revolving credit facility that requires lenders to maintain minimum credit ratings.
In addition to committed credit facilities, from time to time, we, through our financing subsidiaries, we enter into bilateral short-term credit lines as necessary based on our financing requirements. At SeptemberJune 30, 20172020 there were $395$451 million of borrowings outstanding under these bilateral short-term credit lines.lines.

Short and long-term debt - Our short and long-term debt increased by $1,290$1,043 million, or 20.9%, to $6,037 million at SeptemberJune 30, 20172020, from $4,994 million at December 31, 2016,2019, primarily due to the funding of working capital financing requirements. For the nine month periodsix months ended SeptemberJune 30, 2017,2020, our average short and long-term debt outstanding was approximately $5,438$5,395 million, compared to approximately $5,183$6,159 million for the ninesix months ended at SeptemberJune 30, 2016.2019. Our long-term debt balance was $4,533$4,502 million at SeptemberJune 30, 20172020, compared to $4,007$4,223 million at December 31, 2016.2019, an increase of $279 million, or 6.6%. The following table summarizes our short-term debt at SeptemberJune 30, 2017.
2020.
(US$ in millions) Outstanding
Balance at
Quarter End		 Weighted
Average
Interest
Rate at
Quarter End (1)		 Highest
Balance
Outstanding
During
Quarter (1)		 Average
Balance
During Quarter (1)		 Weighted
Average
Interest
Rate
During
Quarter (1)
Bank borrowings $1,021
 3.59% $1,450
 $1,298
 3.06%
Commercial paper —
 —
 595
 273
 1.42%
Total $1,021
 3.59% $2,045
 $1,571
 2.78%
(US$ in millions)Outstanding
Balance at
June 30, 2020		Weighted Average
Interest Rate at
June 30, 2020		Highest Balance
Outstanding During
Quarter Ended June 30, 2020		Average Balance
During Quarter Ended
June 30, 2020		Weighted Average
Interest Rate
During Quarter Ended June 30, 2020
Bank borrowings (1)
$1,037  6.44 %$1,069  $918  9.34 %
Commercial paper498  1.04 %599  347  0.98 %
Total$1,535  $1,668  $1,265  
(1)Includes $179
(1) Includes $310 million of local currency bank borrowings in certain Central and Eastern European, South American, African and Asia Pacific countries at a weighted average interest rate of 11.60% as of September 30, 2017.
In connection with Bunge entering into a definitive agreement to acquireweighted average interest rate of 18.55% a 70% ownership interest in IOI Loders Croklaan from IOI Corporation Berhad (the “Loders Acquisition”), on September 12, 2017, we entered into an unsecured $900 million term loan agreement. Following the completions of the offeringJune 30, 2020.

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Table of senior notes described below, effective as of September 25, 2017, we terminated the loan agreement.  No funds had been drawn under the loan agreement as of the date of termination.Contents
On September 25, 2017, we completed the sale and issuance of $400 million aggregate principal amount of 3.00% unsecured senior notes due September 25, 2022 and $600 million aggregate principal amount of 3.75% unsecured senior notes due September 25, 2027. The senior notes are fully and unconditionally guaranteed by Bunge Limited. The offering was made pursuant to a registration statement filed with the U.S. Securities and Exchange Commission. Interest on the senior notes is payable semi-annually in arrears in March and September of each year, commencing on March 25, 2018. The net proceeds of the offering were approximately $989 million after deducting underwriting commissions and offering expenses.  We intend to use the net proceeds from this offering to fund the purchase price for the Loders Acquisition. Pending the closing of the Loders Acquisition, the net proceeds from the offering were used to repay outstanding indebtedness of Bunge.
The following table summarizes our short and long-term indebtedness:

(US$ in millions) September 30,
2017
December 31,
2016
Short-term debt: (1)
  
  
Short-term debt (2)
 $1,021
 $257
Current portion of long-term debt 287
 938
Total short-term debt 1,308
 1,195
Long-term debt (3):
  
  
     
Revolving credit facilities expiry 2018 200
 —
Term loan due 2019 - three-month Yen LIBOR plus 0.75% (Tranche A) 253
 243
Term loan due 2019 - fixed Yen interest rate of 0.96% (Tranche B) 53
 51
Term loan due 2019 - three-month LIBOR plus 1.30% (Tranche C) 85
 85
Revolving credit facility expiry 2022 (4)
 75
 —
5.90% Senior Notes due 2017 —
 250
3.20% Senior Notes due 2017 —
 600
8.50% Senior Notes due 2019 600
 600
3.50% Senior Notes due 2020 497
 497
3.00% Senior Notes due 2022 397
 —
1.85% Senior Notes due 2023 - Euro
 945
 843
3.25% Senior Notes due 2026 694
 694
3.75% Senior Notes due 2027 594
 —
Other 140
 144
Subtotal 4,533
 4,007
Less: Current portion of long-term debt (287) (938)
Total long-term debt 4,246
 3,069
Total debt $5,554
 $4,264
(US$ in millions)June 30,
2020		December 31,
2019
Short-term debt: (1)
 
Short-term debt (2)
$1,535  $771  
Current portion of long-term debt522  507  
Total short-term debt2,057  1,278  
Long-term debt (3):
  
Revolving credit facility expiry 2022200  —  
Term loan due 2024 - three-month Yen LIBOR plus 0.75% (Tranche A)285  281  
Term loan due 2024 - three-month LIBOR plus 1.30% (Tranche B)89  89  
3.50% Senior Notes due 2020500  499  
3.00% Senior Notes due 2022398  398  
1.85% Senior Notes due 2023 - Euro
896  899  
4.35% Senior Notes due 2024596  596  
3.25% Senior Notes due 2026696  696  
3.75% Senior Notes due 2027595  595  
Other247  170  
Subtotal4,502  4,223  
Less: Current portion of long-term debt(522) (507) 
Total long-term debt3,980  3,716  
Total debt$6,037  $4,994  
(1)
Includes secured debt of $7 million and $7 million at September 30, 2017 and December 31, 2016, respectively.
(2)
Includes $179 million and $148 million of local currency borrowings in certain Central and Eastern European, South American, African and Asia-Pacific countries at a weighted average interest rate of 11.60% and 13.63% as of September 30, 2017 and December 31, 2016, respectively.
(3)
Includes secured debt of $35 million and $34 million at September 30, 2017 and December 31, 2016, respectively.
(4) (1)On September 6, 2017, Bunge entered into an amendment agreement to its unsecured $865 Includes secured debt of $13 million Amendedand $1 million at June 30, 2020 and Restated Credit Agreement, datedDecember 31, 2019, respectively.
(2) Includes $310 million and $348 million of local currency bank borrowings in certain Central and Eastern European, South American and Asia-Pacific countries at a weighted average interest rate of 18.55% and 27.16% as of June 17, 2014, which extends the maturity date to September 6, 2022.30, 2020 and December 31, 2019, respectively.

(3) Includes secured debt of $9 million and $15 million at June 30, 2020 and December 31, 2019, respectively.
Credit Ratings— Bunge’s debt ratings and outlook by major credit rating agencies at SeptemberJune 30, 2017 was2020 were as follows:
Short-term
Debt (1)
Long-term

Debt
Outlook
Standard & Poor’sA-1BBBStableNegative
Moody’sP-1Baa2Baa3NegativeStable
FitchF1BBBBBB-Stable
(1)Short-term debt rating applies only to Bunge Asset Funding Corp., the issuer under our commercial paper program.
(1) Short-term debt rating applies only to Bunge Asset Funding Corp., the issuer under our commercial paper program.
Our debt agreements do not have any credit rating downgrade triggers that would accelerate maturity of our debt. However, credit rating downgrades would increase our borrowing costs under our syndicated credit facilities and, depending on their severity, could impede our ability to obtain credit facilities or access the capital markets in the future on competitive

terms. A significant increase in our borrowing costs could impair our ability to compete effectively in our business relative to competitors with higher credit ratings.
Our credit facilities and certain senior notes require us to comply with specified financial covenants including minimum net worth, minimum current ratio, a maximum debt to capitalization ratio and limitations on secured indebtedness. We were in compliance with these covenants as of SeptemberJune 30, 2017.2020.
Trade Receivable Securitization Program - Bunge and certain
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Table of its subsidiaries participate in $700 million trade receivables securitization program, which terminates on May 26, 2021. However, each committed purchaser’s commitment to fund trade receivables sold under the Program will terminate on May 26, 2019 unless extended in accordance with the terms of the receivables transfer agreement.Contents
Equity
Total equity is set forth in the following table:
(US$ in millions) September 30,
2017
December 31, 2016(US$ in millions)June 30,
2020		December 31, 2019
Equity:  
  
Equity:  
Convertible perpetual preference shares $690
 $690
Convertible perpetual preference shares$690  $690  
Common shares 1
 1
Common shares1  1  
Additional paid-in capital 5,223
 5,143
Additional paid-in capital5,356  5,329  
Retained earnings 8,214
 8,208
Retained earnings6,581  6,437  
Accumulated other comprehensive income (5,662) (5,978)
Treasury shares, at cost - 2017 and 2016 - 12,882,313 shares, respectively (920) (920)
Accumulated other comprehensive income (loss)Accumulated other comprehensive income (loss)(6,515) (5,624) 
Treasury shares, at cost - 2020 - 15,428,313 and 2019 - 12,882,313 sharesTreasury shares, at cost - 2020 - 15,428,313 and 2019 - 12,882,313 shares(1,020) (920) 
Total Bunge shareholders’ equity 7,546
 7,144
Total Bunge shareholders’ equity5,093  5,913  
Noncontrolling interest 204
 199
Noncontrolling interest116  117  
Total equity $7,750
 $7,343
Total equity$5,209  $6,030  
Total Bunge shareholders’ equity was $7,546$5,093 million at SeptemberJune 30, 20172020, compared to $7,144$5,913 million at December 31, 2016.2019, a decrease of $820 million. The increase in shareholders’ equitydecrease during the six months ended June 30, 2020 was primarily due to cumulative$891 million translation gains of $445losses, $142 million and $220$17 million net income attributable to Bunge for the nine months ended September 30, 2017. These increases were partially offset byof declared dividends to common and preferred shareholders, respectively, and $100 million of $189common share repurchases, partially offset by $332 million and $25 million, respectively.
Noncontrolling interest increased to $204 million at September 30, 2017 from $199 million at December 31, 2016, primarily due toof net income attributable to our noncontrolling interest entities and the effect of currency translation, partially offset by dividends to noncontrolling interests.Bunge.
As of SeptemberJune 30, 2017,2020, we had 6,899,7006,899,683 of 4.875% cumulative convertible perpetual preference shares outstanding with an aggregate liquidation preference of $690 million. Each convertible perpetual preference share has an initial liquidation preference of $100, which will be adjusted for any accumulated and unpaid dividends. The convertible perpetual preference shares carry an annual dividend of $4.875 per share, payable quarterly. As a result of adjustments made to the initial conversion price because cash dividends paid on Bunge Limited’s common shares exceeded certain specified thresholds, each convertible perpetual preference share is convertible, at the holder’s option, at any time into 1.16401.2421 Bunge Limited common shares, based on the conversion price of $85.91$80.5082 per share, subject to certain additional anti-dilution adjustments (which represents 8,031,2518,570,096 Bunge Limited common shares at SeptemberJune 30, 2017)2020). At any time, if the closing price of our common shares equals or exceeds 130% of the conversion price for 20 trading days during any consecutive 30 trading days (including the last trading day of such period), we may elect to cause the convertible perpetual preference shares to be automatically converted into Bunge Limited common shares at the then-prevailing conversion price. The convertible perpetual preference shares are not redeemable by us at any time.
Share repurchase program - In May 2015, we established a new program for the repurchase of up to $500 million of our issued and outstanding common shares. The program has no expiration date. We repurchased 2,546,000 common shares during the three and six months ended June 30, 2020 under this program for $100 million. Total repurchases under the program from its inception in May 2015 through June 30, 2020 were 7,253,440 shares for $400 million.

Cash Flows
As of
US$ in millionsJune 30, 2020June 30, 2019
Cash provided by (used for) operating activities$(1,502) $(1,083) 
Cash provided by (used for) investing activities728  185  
Cash provided by (used for) financing activities726  745  
Effect of exchange rate changes on cash and cash equivalents and restricted cash5  8  
Net increase (decrease) in cash and cash equivalents and restricted cash$(43) $(145) 
Our cash flows from operations vary depending on, among other items, the market prices and timing of the purchase and sale of our inventories. Generally, during periods when commodity prices are rising, our Agribusiness operations require increased use of cash to support working capital to acquire inventories and fund daily settlement
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requirements on exchange traded futures that we use to minimize price risk related to the purchase and sale of our inventories.
For the ninesix months ended SeptemberJune 30, 2017,2020, our cash and cash equivalents and restricted cash decreased by $545$43 million, reflecting the net effect of cash flows from operating, investing and financing activities. This comparescompared to a decrease of $114$145 million in cash and cash equivalents for the ninesix months ended SeptemberJune 30, 2016.2019.

Operating: Cash used for operating activities was $1,502 million for the six months ended June 30, 2020, an increase $419 million, compared to $1,083 million for the six months ended June 30, 2019. The increase was due to higher net working capital requirements, primarily driven by higher RMI, as well as increased beneficial interest in securitized trade receivables, partially offset by higher net income during the six months ended June 30, 2020.
As of
US$ in millionsJune 30, 2020June 30, 2019
Cash provided by (used for) operating activities$(1,502) $(1,083) 
Proceeds from beneficial interest in securitized trade receivables748  547  
Cash provided by (used for) operating activities, adjusted$(754) $(536) 

Cash used for operating activities, adjusted for the proceeds from beneficial interest in securitized trade receivables was $302$754 million for the ninesix months ended SeptemberJune 30, 20172020, compared to cash provided by operating activities of $635$536 million for the ninesix months ended SeptemberJune 30, 2016. Net cash outflows for operating activities2019. The increase was lower fordue to higher RMI purchases, partially offset by higher net income during the ninesix months ended SeptemberJune 30, 2017, principally due to increased working capital and lower net income, including adjustments for non-cash items, compared to the nine months ended September 30, 2016.2020.
Certain of our non-U.S. operating subsidiaries are primarily funded with U.S. dollar-denominated debt, while currency risk is hedged with U.S. dollar-denominated assets. The functional currency of our operating subsidiaries is generally the local currency. Also, certain of our U.S. dollar functional operating subsidiaries outside the U.S. are partially funded with local currency borrowings, while the currency risk is hedged with local currency denominated assets. The financial statements of our subsidiaries are calculated in the functional currency, and when the local currency is the functional currency, translated into U.S. dollar. U.S. dollar-denominated loans are remeasured into their respective functional currencies at exchange rates at the applicable balance sheet date. Also, certain of our U.S. dollar functional operating subsidiaries outside the U.S. are partially funded with local currency borrowings, while the currency risk is hedged with local currency denominated assets. Local currency loans in U.S. dollar functional currency subsidiaries outside the U.S. are remeasured into U.S. dollardollars at the exchange rate aton the applicable balance sheet date. The resulting gain or loss is included in our condensed consolidated statements of income as foreign exchange gains or losses. For the ninesix months ended SeptemberJune 30, 2017 and 2016,2020, we recorded a foreign exchange losscurrency gain on our debt of $28$107 million and, and for six months ended June 30, 2019, we recorded a foreign currency loss on our debt of $115$38 million, respectively, which were included as adjustments to reconcile net income to cash used for operating activities in the line item “Foreign exchange (gain)(gains) loss on net debt” in our condensed consolidated statements of cash flows. This adjustment isThese adjustments are required becauseas the cash flow impacts of these gains orand losses are non-cash items and will representthat arise from financing activities when the subsidiary repays the underlying debt and therefore will have no impact on cash flows from operations.
Investing: Cash used forprovided by investing activities was $1,234$728 million infor the ninesix months ended SeptemberJune 30, 20172020, an increase of $543 million, compared to $667cash provided by investing activities of $185 million infor the ninesix months ended SeptemberJune 30, 2016. 2019. The increase was due to higher proceeds from beneficial interests in securitized trade receivables, lower capital expenditures, higher cash inflows from settlements of net investment hedges, and higher net proceeds from investments for the six months ended June 30, 2020.
For the ninesix months ended SeptemberJune 30, 2017,2020, cash from beneficial interests in securitized trade receivables was $748 million. In addition, we received proceeds from investments of $238 million, primarily promissory notes related to financial services investments, which were partially offset by payments wereof $226 million made for such investments. We also made payments for capital expenditures of $485$127 million related to capital projects at various facilities. For the six months ended June 30, 2019, cash from beneficial interests in securitized trade receivables was $547 million. In addition, we received proceeds from investments of $213 million, primarily from promissory notes related to upgrade and expansionfinancial services investments, which were more than offset by payments of an export terminal in the U.S.,$277 million made for such investments. We also made payments for capital expenditures of $265 million, which primarily related to replanting of sugarcane for our industrialBrazilian sugar and biofuels business comprising the expansion of one crushing facility in Brazil and upgrademajority of our crush facilitySugar and Bioenergy segment, that was contributed to the Joint Venture in Italy. In addition, we acquired two oilseed processing plants in the Netherlands and France for $318 million, and an olive oil and seed oil producer in Turkey for $23 million, net of cash acquired. For the nine months ended September 30, 2016, payments made forlate 2019, as well as other capital expenditures were $488 million, primarily related to upgrade and expansion of an export terminal in the U.S., replanting of sugarcane for our industrial sugar business in Brazil and continued construction of a wheat milling facility in Brazil. We also had settlement of net investment hedges of $210 million in the nine months ended September 30, 2016.projects at various facilities.
Financing: Cash provided by financing activities was $969$726 million infor the ninesix months ended SeptemberJune 30, 2017,2020, a $19 million decrease, compared to cash used forprovided by financing activities of $102$745 million infor the ninesix months ended SeptemberJune 30, 2016. 2019.
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In the ninesix months ended SeptemberJune 30, 2017, the2020, we had a net increase in short-term and long-term debt of $1,152$1,000 million, borrowingswhich was primarily reflected higherused to fund seasonal working capital needs to fund acquisitions and finance capital expenditures. In addition, werequirements, mostly comprising RMI, in South America. We also paid dividends of $207$159 million to our common shareholders and holders of our convertible preference shares.shares, and repurchased $100 million of common shares in the six months ended June 30, 2020. In the ninesix months ended SeptemberJune 30, 2016,2019, the net increase of $904 million in borrowings was primarily related to working capital funding needs and to finance capital expenditures. In addition, we paid dividends of $191$158 million to our common shareholders and holders of our convertible preference shares. Further, in connection with our common share repurchase program, in 2016 we purchased 3,296,230 of our common shares at a cost of $200 million.

Off-Balance Sheet Arrangements
Guarantees - We have issued or were a party to the following guarantees at SeptemberJune 30, 2017:
(US$ in millions) 
Maximum
Potential
Future
Payments
Unconsolidated affiliates financing (1)(2)
 $169
Residual value guarantee (3)
 227
Total $396
2020:
(US$ in millions)Maximum
Potential
Future
Payments
Unconsolidated affiliates guarantee (1)(2)
$277 
Residual value guarantee (3)
270 
Total$547 
(1)
(1)We have issued financial and performance guarantees to certain financial institutions related to debt of certain of our 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 us to recover any amounts paid under these guarantees. In addition, one of our subsidiaries has guaranteed the obligations of two of its affiliates and in connection therewith has secured its guarantee obligations through a pledge of one of its affiliate's shares plus loans receivable from the affiliate to the financial institutions in the event that the guaranteed obligations are enforced. Based on the amounts drawn under such debt facilities at June 30, 2020, our potential liability was $189 million, and we have recorded a $13 million obligation related to these guarantees inclusive of expected lifetime credit losses which are determined based on historical financial information and are not expected to be material.
(2) At the June 30, 2020 balance sheet date we had issued guarantees to certain third parties related to the performance of our unconsolidated affiliates. The terms of the guarantees are equal to the completion date of a port terminal, which was substantially completed subsequent to the June 30, 2020 balance sheet date. There are no recourse provisions or collateral that would enable us to recover any amounts paid under these guarantees. At June 30, 2020, Bunge's maximum potential future payments under these guarantees was $37 million, and no obligation has been recorded related to these guarantees.
(3) We have issued guarantees to certain financial institutions which 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 2020 through 2026. At June 30, 2020, 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 (see Note 4 - Leases to our condensed consolidated financial statements).
We have maturity dates in 2017 through 2022. There are no recourse provisions or collateral that would enable us to recover any amounts paid under these guarantees. At September 30, 2017, we recorded no obligation related to these guarantees.
(2)
We issued guarantees to certain third parties related to performance of our unconsolidated affiliates. The term of the guarantees are equal to the completion date of a port terminal which is expected to be completed in 2020. There are no recourse provisions or collateral that would enable us to recover any amounts paid under these guarantees. At September 30, 2017, we recorded no obligation related to these guarantees.

(3)
We issued guarantees to certain financial institutions which are party to certain operating lease arrangements for railcars and barges. 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 2018 through 2021. At September 30, 2017, our recorded obligation related to these guarantees was $3 million.
Bunge Limited has provided a guarantee to the Director of the Illinois Department of Agriculture as Trustee for Bunge North America, Inc. (“BNA”), an indirect wholly-owned subsidiary, which guarantees all amounts due and owing by BNA to grain producers and/or depositors in the State of Illinois who have delivered commodities to BNA’s Illinois facilities.
In addition, Bunge Limited has provided full and unconditional parent level guarantees of the outstanding indebtedness under certain credit facilities entered into and senior notes issued by itsour 100% owned subsidiaries. At SeptemberJune 30, 2017,2020, debt with a carrying amount of $5,229$5,662 million related to these guarantees is included in our condensed consolidated balance sheet. This debt includes the senior notes issued by two of our 100% owned finance subsidiaries, Bunge Limited Finance Corp. and Bunge Finance Europe B.V. There are largely no significant restrictions on the ability of Bunge Limited Finance Corp. and Bunge Finance Europe B.V. or any other of our subsidiaries to transfer funds to Bunge Limited.

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Dividends
We paid a regular quarterly cash dividend of $0.46$0.50 per share on September 5, 2017June 1, 2020 to common shareholders of record on August 22, 2017.May 18, 2020. In addition, we paid a quarterly dividend of $1.21875 per share on our cumulative convertible perpetual preference shares on SeptemberJune 1, 20172020 to shareholders of record on AugustMay 15, 2017.2020. On August 8, 2017,May 22, 2020, we announced that our Board of Directors had approved a regular quarterly cash dividend of $0.46$0.50 per common share. The dividend will be payable on December 4, 2017September 1, 2020 to common shareholders of record on November 20, 2017.August 17, 2020. We also announced on August 8, 2017May 22, 2020 that we will pay a quarterly cash dividend of $1.21875 per share on our cumulative convertible perpetual preference shares on DecemberSeptember 1, 20172020 to shareholders of record on NovemberAugust 15, 2017.2020.

Critical Accounting Policies and Estimates
Critical accounting policies are defined as those policies that are significant to our financial condition and results of operations and require management to exercise significant judgment. For a complete discussion of our accounting policies, see Note 1 to our Annual Report on Form 10-K for the year ended December 31, 2016,2019, filed with the Securities and Exchange Commission. There were noCommission on February 21, 2020. Following is a material changeschange to Bunge’sour critical accounting policies during the ninesix months ended SeptemberJune 30, 2017.2020. For recent accounting pronouncements refer to Note 2 - Accounting Pronouncements, to the condensed consolidated financial statements in this Quarterly Report on Form 10-Q.

Effective January 1, 2020, we changed our segment reporting policy to separately disclose Corporate and Other activities from individual business segments, as further described in Note 20 - Segment Information. Certain reclassifications of prior period amounts within the reporting segments have been made to conform to current presentation.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Risk Management
As a result of our global operating, investing and financing activities, we are exposed to changes in, among other things, agricultural commodity prices, transportation costs, foreign currency exchange rates, interest rates and energy costs which may directly or indirectly affect our results of operations and financial position. We actively monitor and manage these various market risks associated with our business activities. Our risk management decisions take place in various locations, but exposure limits are centrally set and monitored, operating under a global governance framework. Our corporate risk management group analyzes and monitors various risk exposures globally. Additionally, our Board of Directors’ Finance andDirectors' Enterprise Risk PolicyManagement Committee oversees our global market risk governance framework, including all risk management policies and limits.
We use derivative instruments for the purpose of managing the exposures associated with commodity prices, transportation costs, foreign currency exchange rates, interest rates and energy costs and for positioning our overall portfolio relative to potentialexpected market movements in accordance with established policies, limits and procedures. We enter into derivative instruments primarily with major financial institutions, commodity exchanges in the case of commodity futures and options, major financial institutions in the case of foreign currency and interest rate derivatives, or approved exchange clearing shipping companies in the case of ocean freight. While these derivative instruments are subject to fluctuations in value, for hedged exposures those fluctuations are generally offset by the changes in fair value of the underlying exposures. The derivative instruments that we use for hedging purposes are intended to reduce the volatility onof our results of operations;operations, however, they can occasionally result in earnings volatility, which may be material. See Note 1113 - Derivative Instruments And Hedging Activities to the condensed consolidated financial statements in this Quarterly Report on Form 10-Q for a more detailed discussion of our use of derivative instruments.
Credit and Counterparty Risk
Through our normal business activities, we are subject to significant credit and counterparty risks that arise through normal commercial sales and purchases, including forward commitments to buy or sell, and through various other over-the-counter ("OTC") derivative instruments that we utilizeuse to manage risks inherent in our business activities. We define credit and counterparty risk as a potential financial loss due to the failure of a counterparty to honor its obligations. The exposure is measured based upon several factors, including unpaid accounts receivable from counterparties and unrealized gains from forward cash contracts, as well as OTC derivative instruments (including forward purchase and sale contracts).instruments. Credit and counterparty risk also includes sovereign credit risk. We actively monitor credit and counterparty risk through regular reviews of exposures and credit analysis by the localregional credit staff and reviewteams, as well as reviews by various local and corporate committees which monitor credit andour Management Credit Committee that monitors counterparty performance.exposures. We record provisions for counterparty losses from time to time as a result of our credit and counterparty analysis.
During periods of tight conditions in global credit markets, downturns in regional or global economic conditions, low levels of available (funding) liquidity and/or significant price volatility, credit and counterparty risks are heightened. This increased risk is monitored through, among other things, exposure reporting, increased communication with key counterparties, management reviews and specific focus on counterparties or groups of counterparties that we may determine as high risk. In addition, we may limit new credit extensionshave limited exposures and limits in certain cases and reduced our use of non-exchange cleared derivative instruments.
Commodities Risk
We operate in many areas of the food industry, from agricultural raw materials to the production and sale of branded food products.and other specialty products via Bunge’s majority ownership in Loders. As a result, we purchase and produce various materials, many of which are agricultural commodities, includingincluding: soybeans, soybean oil, soybean meal, palm oil, softseeds (including sunflower seed, rapeseed and canola) and related oil and meal derived from them, wheat, barley, shea nut, and corn. In addition, we growproduce bioenergy products as a consequence of our production of soybean oil and purchase sugarcane to produce sugar, ethanolother oil feedstocks. Agricultural and electricity. Agriculturalenergy commodities are subject to price fluctuations due to a number of unpredictable factors that may create price risk. As described above, we are also subject to the risk of counterparty non-performance under forward purchase or sale contracts. From time to time, we have experienced instances of counterparty non-performance including as a result of significant declines in counterparty profitability under these contracts due to significant movements in commodity and energy prices between the time the contracts were executed and the contractual forward delivery period.
We enter into various derivative contracts with the primary objective of managing our exposure to adverse price movements in the agricultural and energy commodities used and produced in our business operations. We have established policies that limit the amount of unhedged fixed price agricultural commodity positions permissible for our operating companies, which are generally a combination of volumevolumetric and value-at-risk (“VaR”)(VaR) limits. We measure and review our net commodities position on a daily basis. BungeWe also employsemploy stress testing techniques, including stressed VaR techniques in order to quantify itsour exposures to price and liquidity risks under non-normal or event driven market conditions.
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Our daily net agricultural commodity position consists of inventory, forward purchase and sale contracts, and OTC and exchange traded derivative instruments, including those used to hedge portions of our production requirements. The fair value of that position is a summation of the fair values calculated for each agricultural commodity by valuing all of our commodity positions at quoted market prices for the period where available, or utilizingusing a close proxy. VaR is calculated on the net position and

monitored at the 95% confidence interval. In addition, scenario analysis and custom stress testing are regularly performed. For example, one measure of market risk is estimated as the potential loss in fair value resulting from a hypothetical 10% adverse change in prices. The results of this analysis, which may differ from actual results, are as follows:
 Nine Months Ended
September 30, 2017		 Year Ended
December 31, 2016		Six Months Ended
June 30, 2020		Year Ended
December 31, 2019
(US$ in millions) Value 
Market
Risk
 Value 
Market
Risk
(US$ in millions)ValueMarket
Risk		ValueMarket
Risk
Highest daily aggregated position value $685
 $(69) $1,207
 $(121)Highest daily aggregated position value$751  $(75) $852  $(85) 
Lowest daily aggregated position value $(711) $(71) $(682) $(68)Lowest daily aggregated position value$54  $(5) $(724) $(72) 
Ocean Freight Risk
Ocean freight representsand bunker fuel represent a significant portion of our operating costs. The market priceMarket prices for ocean freight variesnd bunker fuel vary depending on the supply and demand for ocean vessels, global economic conditions, the price of crude petroleum oil and other factors. We enter into time charter agreements for time on ocean freight vessels based on forecasted requirements for the purpose of transporting agricultural commodities. Our time charter agreements generally have terms ranging from two months to approximately seven years. We use financial derivatives generally freight forward agreements, to hedge portions of our ocean freight costs (generally freight forward agreements) and bunker fuel costs. The ocean freight derivatives are included in other current assets and other current liabilities on the condensed consolidated balance sheets at fair value.
Energy Risk
We purchase various energy commodities such as electricity, natural gas and bunker fuel, that are used to operate our manufacturing facilities and ocean freight vessels. We also refine and produce biofuels. The energy commodities are subject to price risk. We use financial derivatives, including exchange traded and OTC swaps and options for various purposes including to manage our exposure to volatility in energy costs.costs and market prices. These energy derivatives are included in other current assets and other current liabilities on the condensed consolidated balance sheets at fair value.
Currency Risk
Our global operations require active participation in foreign exchange markets. Our primary foreign currency exposures are the Brazilian real, Canadian dollar, the euro and other European currencies, the Argentine peso,Euro and the Chinese yuan/renminbi. To reduce the risk arising from foreign exchange rate fluctuations, we enter into derivative instruments, such as foreign currency forward contracts, swaps and options. The changes in market value of such contracts have a high correlation to the price changes in the related currency exposures. The potential loss in fair value for such net currency position resulting from a hypothetical 10% adverse change in foreign currency exchange rates as of SeptemberJune 30, 20172020 was not material.
When determining our exposure, we exclude intercompany loans that are deemed to be permanently invested. The repayments of permanently invested intercompany loans are notneither planned ornor anticipated in the foreseeable future and therefore, are treated as analogous to equity for accounting purposes. As a result, the foreign exchange gains and losses on these borrowings are excluded from the determination of net income and recorded as a component of accumulated other comprehensive income (loss) in the condensed consolidated balance sheets. Included in other comprehensive income (loss) are foreign exchange losses of $101$216 million for the ninesix months ended SeptemberJune 30, 20172020 and foreign exchange lossesgains of $257$929 million for the year ended December 31, 20162019 related to permanently invested intercompany loans.
Interest Rate Risk
We have debt in fixed and floating rate instruments. We are exposed to market risk due to changes in interest rates. We may enter into interest rate swap agreements to manage our interest rate exposure related to our debt portfolio.
The aggregate fair value of our short and long-term debt based on market yields at SeptemberJune 30, 2017,2020, was $5,735$6,084 million with a carrying value of $5,554$6,037 million. There was no significant change in our interest rate risk at SeptemberJune 30, 2017.2020.
A hypothetical 100 basis point increase in the interest yields on our senior note debt at SeptemberJune 30, 20172020 would result in a decrease of approximately $83$55 million in the fair value of our debt. Similarly, a decrease of 100 basis points in the interest yields on our debt at SeptemberJune 30, 20172020 would cause an increase of approximately $83$62 million in the fair value of our debt.
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A hypothetical 1%100 basis point change in LIBOR would result in a change of approximately $37$45 million in our interest expense on our variable rate debt at SeptemberJune 30, 2017.2020. Some of our variable rate debt is denominated in currencies other than in U.S. dollars and is indexed to non-U.S. dollar-based interest rate indices, such as EURIBOR and TJLP and certain benchmark rates in local bank markets. As such, the hypothetical 1%100 basis point change in interest rate ignores the potential impact of any currency movements.

ITEM 4.CONTROLS AND PROCEDURES

ITEM 4.CONTROLS AND PROCEDURES
Disclosure Controls and Procedures - Disclosure controls and procedures are the controls and other procedures that are designed to provide reasonable assurance that information required to be disclosed by thean issuer in the reports that it files or submits under the Exchange Act of 1934, as amended (the “Exchange Act”) is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including the principal executive and principal financial officer, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure.
As of SeptemberJune 30, 2017,2020, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures, as that term is defined in Exchange Act Rules 13a-15(e) and 15d-15(e), as of the end of the period covered by this Quarterly Report on Form 10-Q. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were effective at the reasonable assurance level as of the end of the period covered by this Quarterly Report on Form 10-Q.
Internal ControlsControl Over Financial Reporting - There have been no changes in the Company’s internal controlscontrol over financial reporting during the thirdsecond quarter ended SeptemberJune 30, 2017,2020, that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
As part of the Company’s ongoing portfolio rationalization initiatives (see Note 3 - Portfolio Rationalization Initiatives to our condensed consolidated financial statements), the Company is simplifying organizational structures, streamlining processes and consolidating back office functions globally. In connection with this initiative, the Company has and will continue to align and streamline the design and operation of its internal controls over financial reporting. These initiatives are not in response to any identified deficiency or weakness in the Company’s internal controls over financial reporting, but are expected, over time, to result in changes to such internal controls over financial reporting.


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PART II.
INFORMATION
ITEM 1.LEGAL PROCEEDINGS
ITEM 1.LEGAL PROCEEDINGS
From time to time, we are involved in litigation that we consider to be ordinary and other claims, investigations and proceedings incidental to our business. While the outcome of pending legal actionsthese matters cannot be predicted with certainty, we believe the outcome of these proceedings, net of established reserves, will not have a material adverse effect on our consolidated financial position, results of operations or liquidity.
For a discussion of certain legal and tax matters, relating to Argentinasee Note 16 - Commitments and Brazil, see Notes 9 and 15Contingencies, to our condensed consolidated financial statements included as part of this Quarterly Report on Form 10-Q. Additionally, we are a party to a large number of labor and civil and other claims, primarily relating to our Brazilian operations. We have reserved an aggregate of $90$33 million and $73$62 million, for labor and civil claims, respectively, as of SeptemberJune 30, 2017.2020. The labor claims primarily relate to dismissals, severance, health and safety, salary adjustments and supplementary retirement benefits. The civil claims relate to various legal proceedings and disputes, including disputes with suppliers and customers and include approximately 95137 million Brazilian reais (approximately $30$25 million as of SeptemberJune 30, 2017)2020) related to a legacy environmental claim in Brazil.
ITEM 1A.RISK FACTORS

ITEM 1A. RISK FACTORS
In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, “Item 1A. Risk Factors” in our 20162019 Annual Report on Form 10-K, which could materially affect our business, financial condition or future results. The risks described in our Annual Report on Form 10-K are not the only risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results. Following is a material update to the risk factors previously disclosed in our 2019 Annual Report on Form 10-K.
ITEM 2.UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
None.
ITEM 3.DEFAULTS UPON SENIOR SECURITIES
None.Our operations may be adversely impacted as a result of pandemic outbreaks, including COVID-19.
ITEM 4.MINE SAFETY DISCLOSURES
Not applicable.
ITEM 5.OTHER INFORMATION
In December 2019, a strain of novel coronavirus, or COVID-19, was first reported in Wuhan, China. On March 11, 2020, as COVID-19 spread outside of China, the World Health Organization designated the outbreak as a global pandemic. To enhance retentiondate, millions of cases have been confirmed globally, and alignthe number of reported cases continues to increase, including in all major geographies in which we operate. The ongoing pandemic could adversely affect our operations, major facilities, or employees’ and consumers’ health, which could interfere with market practice,general commercial activity related to our supply chain and customer base, and in turn could have a material adverse effect on November 1, 2017,our business, financial condition, or results of operations.

Throughout the Company entered into executive changesecond quarter of control severance agreements (the “agreements”) with its executive officers, including2020, government officials in numerous countries around the named executive officers identifiedworld implemented quarantines and significant restrictions that prohibit many employees from travelling and entering their place of work. Many of these restrictions remain in place today.

Additionally, in recent weeks, as many European countries and US states started to ease certain travel and workplace restrictions, the Company’s proxy statement (other than Soren Schroder, the Company’s Chief Executive Officer, whose existing employment agreement containsnumber of observed COVID-19 cases in such locations again began to increase, which may lead to governments re-imposing previous travel and work restrictions, or imposing additional restrictions. As a changeresult, it may be challenging to obtain and process raw materials to support our business needs, and individuals could become ill, quarantined or otherwise unable to work and/or travel due to health reasons or governmental restrictions. Also, governments may impose other laws, regulations or taxes that could adversely impact our business, financial condition or results of control provision).operations. Further, if our customers’ businesses are similarly affected, they might delay or reduce purchases from us, which could adversely affect our business, financial condition or results of operations.

The agreements, which reflect a double trigger changepotential effects of control provision, provide for cash severance benefits ifCOVID-19 also could impact many of our risk factors included in Part 1, Item A of our 2019 Form 10-K, including, but not limited to our profitability, laws and regulations affecting our business, fluctuations in foreign currency markets, the executive’s employment is terminated byavailability of future borrowings, the Company without “cause” or by the individual for “good reason,” in each case before the second anniversarycosts of a “changecurrent and future borrowings, valuation of control”our pension assets and obligations, credit risks of our customers and counterparties, our business transformation initiatives and an impairment of the Company, as those terms are defined in the agreements. The agreements provide that, upon a qualifying termination, the executive would be entitled to a lump sum payment equal to (i) 24 monthscarrying value of the executive’s base salary in effect immediately prior to the termination date, and (ii) an amount equal to two times the executive’s annual target bonus for the year in which the termination occurs.
In addition, the executive will be entitled to receive accelerated vesting of all outstanding equity awards, with any stock options remaining exercisable for the remainder of their full term, and with unvested performance-based equity awards deemed vested at the greater of (i) actual performance or (ii) target levels with respect to performance goalsgoodwill or other vesting criteria.indefinite-lived intangible assets. However, given the evolving health, economic, social, and governmental environments, the potential impact that COVID-19 could have on our risk factors that are further described in our 2019 Form 10-K remains uncertain.

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ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Issuer Purchases of Equity Securities

The agreements provide that the Company’s obligations to pay severance benefits under the agreements is subject to the execution by the executive of a general release of claims against the Company and contain an 18-month non-competition covenant. The agreements do not provide for a tax gross-up.
The foregoingfollowing table is a summary of any purchases of equity securities during the termssecond quarter of the change of control agreements2020 by Bunge and does not purportany affiliated purchasers, pursuant to be complete. This summary is qualified in its entirety by reference to the form of change of control agreement filed as an exhibit to this Quarterly Report on Form 10-Q.SEC rules.
PeriodTotal Number of Shares (or Units) PurchasedAverage Price Paid per Share (or Unit)Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or ProgramsMaximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs
April 1, 2020 - April 30, 2020—$—  —$200,000,000  
May 1, 2020 - May 31, 2020545,000$37.98  545,000$179,302,900  
June 1, 2020 - June 30, 20202,001,000$39.63  2,001,000$100,001,230  
Total2,546,000$39.28  2,546,000
ITEM 6.EXHIBITS

ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.

ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.

ITEM 5. OTHER INFORMATION
None.

ITEM 6.EXHIBITS
(a) The exhibits in the accompanying Exhibit Index on page E-1 are filed or furnished as part of this Quarterly Report.

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EXHIBIT INDEX
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 SCHXBRL Taxonomy Extension Schema Document
101 CALXBRL Taxonomy Extension Calculation Linkbase Document
101 LABXBRL Taxonomy Extension Labels Linkbase Document
101 PREXBRL Taxonomy Extension Presentation Linkbase Document
101 DEFXBRL Taxonomy Extension Definition Linkbase Document
101 INSXBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
*Filed herewith.
E-1

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
BUNGE LIMITED
Date: November 1, 2017July 29, 2020By:/s/ Thomas M. BoehlertJohn W. Neppl
Thomas M. BoehlertJohn W. Neppl
Executive Vice President, Chief Financial Officer
/s/ J. Matt Simmons, Jr.
J. Matt Simmons, Jr.
Controller and Principal Accounting Officer

EXHIBIT INDEX
10.1
Form of Executive Change of Control Agreement.
31.1
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
31.2
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
32.1
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
32.2
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
The following financial information from Bunge Limited’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017 formatted in Extensible Business Reporting Language (XBRL): (i) the Condensed Consolidated Statements of Income, (ii) the Condensed Consolidated Statements of Comprehensive Income (Loss), (iii) the Condensed Consolidated Balance Sheets, (iv) the Condensed Consolidated Statements of Cash Flows, (v) the Condensed Consolidated Statements of Changes in Equity and Redeemable Noncontrolling Interests, and (vi) the Notes to the Condensed Consolidated Financial Statements.*
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*Filed herewith.
E-1


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