Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 22, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-16625 | |
Entity Registrant Name | BUNGE LIMITED | |
Entity Incorporation, State or Country Code | D0 | |
Entity Tax Identification Number | 98-0231912 | |
Entity Address, Address Line One | 1391 Timberlake Manor Parkway | |
Entity Address, City or Town | Chesterfield | |
Entity Address, State or Province | MO | |
Entity Address, Postal Zip Code | 63017 | |
City Area Code | 314 | |
Local Phone Number | 292-2000 | |
Title of 12(b) Security | Common Shares, $0.01 par value per share | |
Trading Symbol | BG | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 151,898,168 | |
Entity Central Index Key | 0001144519 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
Net sales | $ 17,933 | $ 15,391 | $ 33,813 | $ 28,352 |
Cost of goods sold | (17,161) | (14,726) | (31,837) | (26,540) |
Gross profit | 772 | 665 | 1,976 | 1,812 |
Selling, general and administrative expenses | (334) | (297) | (642) | (568) |
Interest income | 11 | 6 | 20 | 15 |
Interest expense | (92) | (54) | (203) | (127) |
Foreign exchange (losses) gains | (110) | 35 | (98) | 25 |
Other income (expense) – net | (6) | 35 | (53) | 298 |
Income (loss) from affiliates | 20 | 29 | 65 | 73 |
Income (loss) before income tax | 261 | 419 | 1,065 | 1,528 |
Income tax (expense) benefit | (36) | (50) | (144) | (242) |
Net income (loss) | 225 | 369 | 921 | 1,286 |
Net (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests | (19) | (7) | (27) | (92) |
Net income (loss) attributable to Bunge | 206 | 362 | 894 | 1,194 |
Convertible preference share dividends | 0 | (9) | 0 | (17) |
Net income (loss) available to Bunge common shareholders | $ 206 | $ 353 | $ 894 | $ 1,177 |
Earnings per common share—basic (Note 20) | ||||
Net income (loss) attributable to Bunge common shareholders—basic (in dollars per share) | $ 1.36 | $ 2.50 | $ 6.08 | $ 8.35 |
Earnings per common share—diluted (Note 20) | ||||
Net income (loss) attributable to Bunge common shareholders—diluted (in dollars per share) | $ 1.34 | $ 2.37 | $ 5.81 | $ 7.85 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 225 | $ 369 | $ 921 | $ 1,286 |
Other comprehensive income (loss): | ||||
Foreign exchange translation adjustment | (289) | 328 | 100 | 71 |
Unrealized gains (losses) on designated hedges, net of tax benefit (expense) of zero and $(2) in 2022 and $(3) and $(3) in 2021 | 47 | (92) | (70) | (94) |
Pension adjustment, net of tax (expense) benefit of zero and zero in 2022 and $(2) and $(2) in 2021 | 0 | (2) | 0 | (2) |
Reclassification of net (gains) losses to net income, net of tax (benefit) expense of $2 and $12 in 2022 and zero and zero in 2021 | (5) | (1) | (34) | (2) |
Total other comprehensive income (loss) | (247) | 233 | (4) | (27) |
Total comprehensive income (loss) | (22) | 602 | 917 | 1,259 |
Less: comprehensive (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests | 5 | (14) | 12 | (80) |
Total comprehensive income (loss) attributable to Bunge | $ (17) | $ 588 | $ 929 | $ 1,179 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized gains (losses) on designated hedges, tax benefit (expense) | $ 0 | $ (3) | $ (2) | $ (3) |
Pension adjustment, tax (expense) benefit | 0 | (2) | 0 | (2) |
Reclassification of realized net (gains) losses to net income, tax (benefit) expense | $ 2 | $ 0 | $ 12 | $ 0 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 818 | $ 902 |
Trade accounts receivable (less allowances of $82 and $85) (Note 5) | 2,427 | 2,112 |
Inventories (Note 6) | 10,481 | 8,431 |
Assets held for sale (Note 3) | 317 | 264 |
Other current assets (Note 7) | 5,689 | 4,751 |
Total current assets | 19,732 | 16,460 |
Property, plant and equipment, net | 3,463 | 3,499 |
Operating lease assets | 1,038 | 912 |
Goodwill | 468 | 484 |
Other intangible assets, net | 383 | 431 |
Investments in affiliates | 986 | 764 |
Deferred income taxes | 622 | 550 |
Other non-current assets (Note 8) | 727 | 719 |
Total assets | 27,419 | 23,819 |
Current liabilities: | ||
Short-term debt (Note 14) | 2,154 | 673 |
Current portion of long-term debt (Note 14) | 1,303 | 504 |
Trade accounts payable (includes $1,117 and $568 carried at fair value) | 5,347 | 4,250 |
Current operating lease obligations | 396 | 350 |
Liabilities held for sale (Note 3) | 61 | 122 |
Other current liabilities (Note 11) | 3,840 | 3,425 |
Total current liabilities | 13,101 | 9,324 |
Long-term debt (Note 14) | 3,062 | 4,787 |
Deferred income taxes | 315 | 338 |
Non-current operating lease obligations | 585 | 506 |
Other non-current liabilities (Note 17) | 816 | 658 |
Redeemable noncontrolling interest (Note 18) | 351 | 381 |
Equity | ||
Convertible perpetual preference shares, par value $.01; authorized – 21,000,000 shares, issued and outstanding: 2022 - zero shares, 2021 - 6,899,683 shares (liquidation preference $100 per share) | 0 | 690 |
Common shares, par value $.01; authorized – 400,000,000 shares; issued and outstanding: 2022 –151,885,454 shares, 2021 – 141,057,414 shares | 1 | 1 |
Additional paid-in capital | 6,595 | 5,590 |
Retained earnings | 9,692 | 8,979 |
Accumulated other comprehensive income (loss) (Note 19) | (6,436) | (6,471) |
Treasury shares, at cost - 2022 - 16,726,697 shares, 2021 - 16,726,697 shares | (1,120) | (1,120) |
Total Bunge shareholders’ equity | 8,732 | 7,669 |
Noncontrolling interests | 457 | 156 |
Total equity | 9,189 | 7,825 |
Total liabilities, redeemable noncontrolling interest and equity | $ 27,419 | $ 23,819 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Trade accounts receivable, allowances | $ 82 | $ 85 |
Trade accounts payable at fair value | $ 1,117 | $ 568 |
Convertible perpetual preference shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Convertible perpetual preference shares, authorized (in shares) | 21,000,000 | 21,000,000 |
Convertible perpetual preference shares, issued (in shares) | 0 | 6,899,683 |
Convertible perpetual preference shares, outstanding (in shares) | 0 | 6,899,683 |
Convertible perpetual preference shares, liquid preference (in dollars per share) | $ 100 | $ 100 |
Common shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common shares, authorized (in shares) | 400,000,000 | 400,000,000 |
Common shares, issued (in shares) | 151,885,454 | 141,057,414 |
Common shares, outstanding (in shares) | 151,885,454 | 141,057,414 |
Common shares, at cost (in shares) | 16,726,697 | 16,726,697 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
OPERATING ACTIVITIES | ||
Net income (loss) | $ 921 | $ 1,286 |
Adjustments to reconcile net income (loss) to cash provided by (used for) operating activities: | ||
Foreign exchange (gain) loss on net debt | (6) | (133) |
Bad debt expense | 9 | 3 |
Depreciation, depletion and amortization | 204 | 212 |
Share-based compensation expense | 32 | 29 |
Deferred income tax expense (benefit) | (59) | (83) |
(Gain) loss on sale of investments and property, plant and equipment | 0 | (240) |
Other, net | 27 | (56) |
Changes in operating assets and liabilities, excluding the effects of acquisitions and dispositions: | ||
Trade accounts receivable | (341) | (784) |
Inventories | (2,341) | (1,003) |
Secured advances to suppliers | 46 | 25 |
Trade accounts payable and accrued liabilities | 943 | 737 |
Advances on sales | (54) | (150) |
Net unrealized (gains) losses on derivative contracts | (159) | 639 |
Margin deposits | (86) | 391 |
Marketable securities | 285 | (5) |
Beneficial interest in securitized trade receivables | (3,443) | (2,121) |
Other, net | (435) | (183) |
Cash provided by (used for) operating activities | (4,457) | (1,436) |
INVESTING ACTIVITIES | ||
Payments made for capital expenditures | (212) | (133) |
Proceeds from investments | 87 | 26 |
Payments for investments | (117) | (153) |
Settlements of net investment hedges | (143) | (25) |
Proceeds from beneficial interest in securitized trade receivables | 3,311 | 2,049 |
Payments for beneficial interest in securitized trade receivables | 0 | (177) |
Proceeds from disposals of businesses and property, plant and equipment | 1 | 345 |
Payments for investments in affiliates | (54) | (42) |
Other, net | (6) | (1) |
Cash provided by (used for) investing activities | 2,867 | 1,889 |
FINANCING ACTIVITIES | ||
Proceeds from short-term debt | 19,842 | 19,986 |
Repayments of short-term debt | (18,266) | (20,954) |
Proceeds from long-term debt | 50 | 998 |
Repayments of long-term debt | (628) | 0 |
Proceeds from the exercise of options for common shares | 44 | 72 |
Dividends paid to common and preference shareholders | (162) | (158) |
Sale of noncontrolling interest | 521 | 0 |
Acquisition of noncontrolling interest | 0 | (147) |
Other, net | 44 | (27) |
Cash provided by (used for) financing activities | 1,445 | (230) |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | 63 | (100) |
Net increase (decrease) in cash and cash equivalents and restricted cash | (82) | 123 |
Cash and cash equivalents and restricted cash - beginning of period | 905 | 381 |
Cash and cash equivalents and restricted cash - end of period | $ 823 | $ 504 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS - USD ($) $ in Millions | Total | Redeemable Non-Controlling Interests | Convertible Preference Shares | Common Shares | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Shares | Non- Controlling Interests |
Beginning balance at Dec. 31, 2020 | $ 415 | ||||||||
Increase (Decrease) in Temporary Equity | |||||||||
Net income (loss) | 79 | ||||||||
Other comprehensive income (loss) | (12) | ||||||||
Ending balance at Jun. 30, 2021 | 483 | ||||||||
Beginning balance (in shares) at Dec. 31, 2020 | 6,899,683 | ||||||||
Beginning balance (in shares) at Dec. 31, 2020 | 139,790,238 | ||||||||
Beginning balance at Dec. 31, 2020 | $ 6,205 | $ 690 | $ 1 | $ 5,408 | $ 7,236 | $ (6,246) | $ (1,020) | $ 136 | |
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income (loss) | 1,207 | 1,194 | 13 | ||||||
Other comprehensive income (loss) | (12) | (12) | |||||||
Dividends on common shares | (147) | (147) | |||||||
Dividends on preference shares | (17) | (17) | |||||||
Dividends to noncontrolling interests on subsidiary common stock | (2) | (2) | |||||||
Sale of noncontrolling interest | 1 | ||||||||
Acquisition of noncontrolling interest | (3) | (3) | |||||||
Share-based compensation expense | 29 | 29 | |||||||
Issuance of common shares, including stock dividends (in shares) | 1,924,609 | ||||||||
Issuance of common shares, including stock dividends | 71 | 75 | (4) | ||||||
Ending balance (in shares) at Jun. 30, 2021 | 6,899,683 | ||||||||
Ending balance (in shares) at Jun. 30, 2021 | 141,714,847 | ||||||||
Ending balance at Jun. 30, 2021 | 7,331 | $ 690 | $ 1 | 5,512 | 8,259 | (6,258) | (1,020) | 147 | |
Beginning balance at Mar. 31, 2021 | 473 | ||||||||
Increase (Decrease) in Temporary Equity | |||||||||
Net income (loss) | 2 | ||||||||
Other comprehensive income (loss) | 7 | ||||||||
Sale of noncontrolling interest | 1 | ||||||||
Ending balance at Jun. 30, 2021 | 483 | ||||||||
Beginning balance (in shares) at Mar. 31, 2021 | 6,899,683 | ||||||||
Beginning balance (in shares) at Mar. 31, 2021 | 141,260,402 | ||||||||
Beginning balance at Mar. 31, 2021 | 6,781 | $ 690 | $ 1 | 5,468 | 7,982 | (6,484) | (1,020) | 144 | |
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income (loss) | 367 | 363 | 4 | ||||||
Other comprehensive income (loss) | 227 | 226 | 1 | ||||||
Dividends on common shares | (76) | (76) | |||||||
Dividends on preference shares | (9) | (9) | |||||||
Dividends to noncontrolling interests on subsidiary common stock | (2) | (2) | |||||||
Share-based compensation expense | 16 | 16 | |||||||
Issuance of common shares, including stock dividends (in shares) | 454,445 | ||||||||
Issuance of common shares, including stock dividends | 27 | 28 | (1) | ||||||
Ending balance (in shares) at Jun. 30, 2021 | 6,899,683 | ||||||||
Ending balance (in shares) at Jun. 30, 2021 | 141,714,847 | ||||||||
Ending balance at Jun. 30, 2021 | 7,331 | $ 690 | $ 1 | 5,512 | 8,259 | (6,258) | (1,020) | 147 | |
Beginning balance at Dec. 31, 2021 | 381 | 381 | |||||||
Increase (Decrease) in Temporary Equity | |||||||||
Net income (loss) | 6 | ||||||||
Other comprehensive income (loss) | (36) | ||||||||
Ending balance at Jun. 30, 2022 | $ 351 | 351 | |||||||
Beginning balance (in shares) at Dec. 31, 2021 | 6,899,683 | 6,899,683 | |||||||
Beginning balance (in shares) at Dec. 31, 2021 | 141,057,414 | 141,057,414 | |||||||
Beginning balance at Dec. 31, 2021 | $ 7,825 | $ 690 | $ 1 | 5,590 | 8,979 | (6,471) | (1,120) | 156 | |
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income (loss) | 915 | 894 | 21 | ||||||
Other comprehensive income (loss) | 32 | 35 | (3) | ||||||
Dividends on common shares | (176) | (176) | |||||||
Dividends to noncontrolling interests on subsidiary common stock | (4) | (4) | |||||||
Sale of noncontrolling interest | 521 | 234 | 287 | ||||||
Share-based compensation expense | 32 | 32 | |||||||
Conversion of preference shares to common shares (in shares) | (6,899,683) | 8,863,331 | |||||||
Conversion of preference shares to common shares | 0 | $ (690) | 690 | ||||||
Issuance of common shares, including stock dividends (in shares) | 1,964,709 | ||||||||
Issuance of common shares, including stock dividends | $ 44 | 49 | (5) | ||||||
Ending balance (in shares) at Jun. 30, 2022 | 0 | 0 | |||||||
Ending balance (in shares) at Jun. 30, 2022 | 151,885,454 | 151,885,454 | |||||||
Ending balance at Jun. 30, 2022 | $ 9,189 | $ 0 | $ 1 | 6,595 | 9,692 | (6,436) | (1,120) | 457 | |
Beginning balance at Mar. 31, 2022 | 370 | ||||||||
Increase (Decrease) in Temporary Equity | |||||||||
Net income (loss) | 2 | ||||||||
Other comprehensive income (loss) | (21) | ||||||||
Ending balance at Jun. 30, 2022 | 351 | $ 351 | |||||||
Beginning balance (in shares) at Mar. 31, 2022 | 151,653,069 | ||||||||
Beginning balance at Mar. 31, 2022 | 8,741 | $ 1 | 6,332 | 9,581 | (6,213) | (1,120) | 160 | ||
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income (loss) | 223 | 206 | 17 | ||||||
Other comprehensive income (loss) | (226) | (223) | (3) | ||||||
Dividends on common shares | (95) | (95) | |||||||
Dividends to noncontrolling interests on subsidiary common stock | (4) | (4) | |||||||
Sale of noncontrolling interest | 521 | 234 | 287 | ||||||
Share-based compensation expense | 16 | 16 | |||||||
Issuance of common shares, including stock dividends (in shares) | 232,385 | ||||||||
Issuance of common shares, including stock dividends | $ 13 | 13 | |||||||
Ending balance (in shares) at Jun. 30, 2022 | 0 | 0 | |||||||
Ending balance (in shares) at Jun. 30, 2022 | 151,885,454 | 151,885,454 | |||||||
Ending balance at Jun. 30, 2022 | $ 9,189 | $ 0 | $ 1 | $ 6,595 | $ 9,692 | $ (6,436) | $ (1,120) | $ 457 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | |||||
May 12, 2022 | May 11, 2022 | Feb. 23, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||||||
Dividends on common shares (in dollars per share) | $ 0.625 | $ 0.525 | $ 0.625 | $ 0.525 | $ 1.15 | $ 1.025 | |
Dividends on preferred shares (in dollars per share) | $ 1.21875 | $ 1.21875 | $ 2.4375 |
BASIS OF PRESENTATION, PRINCIPL
BASIS OF PRESENTATION, PRINCIPLES OF CONSOLIDATION, AND SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION, PRINCIPLES OF CONSOLIDATION, AND SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION, PRINCIPLES OF CONSOLIDATION, AND SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited condensed consolidated financial statements include the accounts of Bunge Limited ("Bunge" or the "Company"), its subsidiaries and variable interest entities ("VIEs") in which Bunge is considered to be the primary beneficiary, and as a result, include the assets, liabilities, revenues and expenses of all entities over which Bunge has a controlling financial interest. The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X under the Securities Exchange Act of 1934, as amended ("Exchange Act"). Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to Securities and Exchange Commission ("SEC") rules. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation have been included. The condensed consolidated balance sheet at December 31, 2021 has been derived from Bunge’s audited consolidated financial statements at that date. Operating results for the six months ended June 30, 2022 are not necessarily indicative of the results to be expected for the year ending December 31, 2022. The financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2021, forming part of Bunge’s 2021 Annual Report on Form 10-K filed with the SEC on February 24, 2022. On May 1, 2022, Bunge completed a transaction with Chevron Corporation ("Chevron") to create a joint venture, Bunge Chevron Ag Renewables LLC (the "Joint Venture"), leveraging Bunge’s expertise in oilseed processing and farmer relationships, and Chevron’s expertise in fuels manufacturing and marketing, to help meet the demand for renewable fuels and to develop lower carbon intensity feedstocks. Bunge has a 50% ownership interest in the Joint Venture. Bunge contributed certain property, plant, and equipment related to two of its soybean processing facilities to the Joint Venture, with a fair value totaling approximately $521 million, and Chevron contributed an approximately equal value of cash and working capital. Bunge has also committed to undertake certain capital improvements on the soybean processing facilities contributed to the Joint Venture, up to an estimated $80 million, at which point Chevron will contribute an additional equivalent amount in cash. Under the terms of the Joint Venture's agreements, Bunge will operate the Joint Venture’s facilities, and Chevron will have purchase rights for oil produced by the Joint Venture for use as a renewable feedstock to manufacture low lifecycle carbon intensity transportation fuels. See Note 9 - Variable Interest Entities for further accounting considerations related to this transaction. Bunge has operations in Turkey, which until March 31, 2022 used the official exchange rate published by the Turkish government to translate the Company's commercial transactions and for financial statement re-measurement purposes. Over the last several years, Turkey has experienced negative economic trends, as evidenced by multiple periods of increasing inflation rates, depreciation of the Turkish lira , and increasing borrowing rates, which have required the Turkish government to take mitigating actions. During the first quarter of 2022, Turkey became a highly inflationary economy as defined under U.S. GAAP. In accordance with ASC 830, Foreign Currency Matters , the financial statements of foreign entities in highly inflationary economies are required to be remeasured as if the functional currency were the reporting currency, commencing in the period subsequent to such economies becoming highly inflationary. As a result, effective April 1, 2022, the financial statements of Bunge's Turkish subsidiary have been remeasured using the reporting currency, the U.S. dollar, rather than the Turkish lira . This change has not had a material impact on Bunge's condensed consolidated financial statements. Cash, Cash Equivalents, 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 sheets, which sum to the total of the same such amounts shown in the condensed consolidated statement of cash flows. (US$ in millions) June 30, 2022 June 30, 2021 Cash and cash equivalents $ 818 $ 464 Restricted cash included in other current assets 5 40 Total $ 823 $ 504 Cash paid for taxes, which primarily comprises inco me taxes and value added taxes, net of refunds, was $260 million and $121 million for the six months ended June 30, 2022 and 2021, respectively. Cash paid for interest expense was $221 million and $79 million for the six months ended June 30, 2022 and 2021, respectively. Recently Adopted Accounting Pronouncements On January 1, 2022, the Company adopted Accounting Standards Update ("ASU") 2021-10, Government Assistance (Topic 832) - Disclosures by Business Entities About Government Assistance , which requires annual disclosures for transactions with a government authority that are accounted for by applying a grant or contribution accounting model by analogy. The guidance is effective for annual periods beginning after December 15, 2021. This guidance will be applied prospectively to all transactions within the scope of the standard that are reflected in financial statements at the date of initial application and new transactions that are entered into after the date of initial application. As this standard requires annual disclosure only, the Company continues to identify its transactions that are subject to this guidance and evaluate the impact of this standard on its condensed consolidated financial statements. On January 1, 2022, the Company adopted ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40), which simplifies the accounting for convertible instruments and contracts in an entity’s own equity. The guidance also addresses how convertible instruments are accounted for in the diluted earnings per share calculation and requires enhanced disclosures about the terms of convertible instruments and contracts in an entity’s own equity. This guidance will be applied prospectively to modifications or exchanges occurring on or after the effective date of the amendments. The adoption of this guidance did not have a material impact on Bunge's condensed consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting , with subsequent updates through ASU 2021-01, which collectively provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting, to ease the financial reporting burden related to the expected market transition from the London Interbank Offered Rate ("LIBOR") and other interbank offered rates to alternative reference rates. The guidance was effective upon issuance, and per the guidance, the Company is applying it prospectively to all eligible contract modifications through December 31, 2022. In March 2021, the United Kingdom's Financial Conduct Authority ("FCA"), responsible for regulating LIBOR, announced that most LIBOR settings were to be discontinued after December 31, 2021, except for certain USD LIBOR settings, which will continue through June 30, 2023. In September 2021, the FCA further announced that it will require the LIBOR benchmark administrator to publish sterling and Japanese yen LIBOR settings under a synthetic methodology based on term risk-free rates for the duration of 2022. These synthetic LIBOR settings will be available only for use in legacy contracts and are not for use in new business. Bunge has utilized the relief provided by Topic 848 to ensure financial reporting results reflect the intended continuation of such contracts and arrangements during the period of the market-wide transition to alternative reference rates. The expedients allow an eligible modified contract to be accounted for and presented as a continuation of the existing contract. The Company has identified its LIBOR-based contracts that have been, or will be, impacted by the cessation of LIBOR. The Company continues to actively work with counterparties to incorporate fallback language in negotiated contracts, in addition to incorporating non-LIBOR reference rate and fallback language, when applicable, in new contracts. The modification of contracts is ongoing; however, as of June 30, 2022, the adoption of this guidance has not had a material impact on Bunge's condensed consolidated financial statements. |
UKRAINE-RUSSIA WAR
UKRAINE-RUSSIA WAR | 6 Months Ended |
Jun. 30, 2022 | |
Unusual or Infrequent Items, or Both [Abstract] | |
UKRAINE-RUSSIA WAR | UKRAINE-RUSSIA WAR On February 24, 2022, Russia initiated a military invasion of Ukraine. Ukraine is a key international grain originating region and is also the world’s largest supplier of sun seed and sun oil; commodities which cannot be completely replaced from other origins . As a result of the invasion, Bunge temporarily idled its Ukrainian operations, comprising two oilseed crushing facilities in Mykolaiv and Dnipropetrovsk, a grain export terminal in the Mykolaiv commercial seaport, numerous grain elevators, and an office in Kiev. The Company also operates a corn milling facility in Ukraine via a joint venture. As a result of the Ukraine-Russia war (the "war"), Bunge’s Mykolaiv port facility sustained damage on three separate occasions: March 22, June 22, and July 1, 2022. In each of these instances, based on initial visual inspections, there did not appear to be material physical damage to the Mykolaiv port facility, the adjacent Oilseed crush plant, or any other facilities. However, thorough onsite, physical inspections of the damage to the Mykolaiv facility, or potential damage to other Bunge facilities, resulting from the two most recent incidents have not been possible due to safety concerns. Beginning late March, Bunge restarted certain commercial and operational activities in Ukraine, as well as certain rail, truck and barge exports from Ukraine. Such activities have increased during recent months but remain limited, and the activities are performed only where and when the ability to do so safely exists. Furthermore, the ability to continue these activities is unknown. The Company’s Ukrainian operations employ over 1,000 employees. While as of the date of this report, to the Company's knowledge, there have been no reported casualties or injuries to Bunge employees, some of the Company’s Ukrainian employees have been forced to relocate to other countries or elsewhere within Ukraine. The safety of Bunge's employees is Bunge’s top priority; the Company is actively providing support and resources to employees and their families who have been impacted by these events, and Bunge employees in neighboring countries have mobilized to provide accommodation, food, clothing, toys and other supplies for displaced colleagues and their families. Bunge is also committed to supporting humanitarian efforts in Ukraine and has provided over $2 million in food products and monetary assistance to multiple relief organizations helping the people of Ukraine. In response to Russia's invasion of Ukraine, the United States, other North Atlantic Treaty Organization ("NATO") member states, as well as non-member states, have announced targeted economic sanctions on Russia, certain Russian citizens and enterprises. Any continuation or escalation of the war may trigger additional economic and other sanctions. The scope or extent of potential additional sanctions, and the related impact on Bunge is unknown, as of the date of this report. The Company has scaled back its Russian grain trading activities in recent years, including via the sale of its Rostov grain export terminal in 2021. The Company continues to operate its oilseed crush plant in Voronezh, in southwest Russia, doing so in compliance with legal requirements imposed following the start of the war. From a humanitarian standpoint, this plant is important to the local food supply as it provides essential food-related products to the Russian population. Certain companies have experienced negative reactions from their investors, employees, customers, or other stakeholders as a result of their action or inaction related to the war between Russia and Ukraine. The Company therefore continues to monitor the reactions of its investors, employees, customers, and other stakeholders and, as of the date of this report, has neither experienced any material financial impacts nor suffered from the loss of key customers or employees as a result of its continued operations in Russia. The scope, intensity, duration and outcome of the ongoing war is uncertain, and any continuation or escalation of the war may have a material adverse effect on Bunge, including its Ukrainian and Russian operations. In accordance with industry standards, Bunge insures against many types of risks. While insurance may mitigate certain of the risks associated with the ongoing war, the Company's level of insurance may not cover all losses the Company could incur. Further details about the current status and corresponding accounting considerations in Ukraine and Russia are provided below. Ukraine The scope and intensity of the war continues to evolve. Bunge is closely monitoring the evolving situation and currently maintains control over all material operations and facilities in Ukraine. The condensed consolidated balance sheet and related discussion below provides information on the Company’s major classes of assets and liabilities in Ukraine as of June 30, 2022. As of June 30, 2022, the total assets and total liabilities associated with Bunge’s Ukrainian subsidiaries comprise approximately 1% of Bunge’s consolidated total assets and total liabilities, respectively. Due to the nature of the war and its rapidly shifting areas of active combat, it is currently not possible to obtain all information necessary to determine all financial statement impacts. As such, the various financial statement impacts and related disclosures presented in these interim financial statements represent management’s best estimates considering the available facts and circumstances as of the date of this report. The functional currency of Bunge’s Ukrainian subsidiaries is the U.S. dollar and the foreign exchange rates used to convert assets and liabilities denominated in Ukrainian hryvnia represent the official exchange rates published by the National Bank of Ukraine. Following the onset of the war, the Ukrainian government imposed restrictions on companies’ abilities to repatriate or otherwise remit cash from their Ukrainian-based operations to locations outside Ukraine. However, these restrictions are not expected to persist indefinitely as the Ukrainian government has eased certain restrictions surrounding the payment of international purchase invoices subsequent to June 30, 2022. The restrictions have not adversely impacted the Company's Ukrainian operations. Bunge is able to readily purchase U.S. dollars and other non-Ukrainian currencies onshore in Ukraine to pay for imports of goods and allowed services, where needed. Bunge is also able to sell foreign currency onshore in Ukraine. Bunge continues to exercise control of and consolidates its Ukrainian subsidiaries. The condensed consolidated balance sheet related to the Company’s Ukrainian operations as of June 30, 2022 consists of the following: (US$ in millions) June 30, Current assets: Cash and cash equivalents $ 1 Trade accounts receivable (less allowances of zero) 5 Inventories 70 Other current assets 84 Total current assets 160 Property, plant and equipment, net 140 Other non-current assets 50 Total assets $ 350 Current liabilities: Trade accounts payable and accrued liabilities $ 15 Short-term debt 218 Other current liabilities 3 Total current liabilities 236 Non-current liabilities 4 Total liabilities $ 240 Cash and cash equivalents— Comprises cash on deposit with various financial institutions in Ukraine. As of June 30, 2022 and through the date of this report, there are no restrictions on the Company’s access to such cash and cash equivalents. Trade accounts receivable— As a result of the war, the risk characteristics of trade accounts receivable connected to Ukraine differ from those of the Company’s other trade accounts receivable, such that Ukrainian trade receivables may be at a higher risk of default. Additionally, as the scope, intensity, duration, escalation, and outcome of the ongoing war is uncertain, the Company has segregated its Ukrainian trade accounts receivables into a separate risk pool and incorporated an assessment of current and expected future adverse effects related to the war, including customer-specific factors such as their geographical location in relation to combat zones and operating conditions, when determining an allowance for credit losses in relation to such receivables. The assessment resulted in no significant change in recorded allowances for lifetime expected credit losses during the three and six month periods ended June 30, 2022, in relation to the Company's $5 million gross Ukrainian receivables balance at June 30, 2022. Inventories— Bunge’s Ukrainian inventories generally comprise agricultural commodity inventories, primarily sunflower seeds, sunflower meal, sunflower oil, corn, and wheat. Due to their commodity characteristics, widely available markets, and international pricing mechanisms, such inventories are generally carried at fair value. However, as a result of the war, Bunge is neither able to immediately market its inventories located in Ukraine at internationally-quoted prices, nor make such inventories available for immediate delivery at such prices. Therefore, following the onset of the war, the Company has ceased recording its Ukrainian inventories at fair value and instead records all such inventories at the lower of cost or net realizable value, by product category. A thorough onsite physical inspection of all of Bunge’s inventories is currently not able to be conducted due to safety concerns, particularly in areas of active combat. As such, significant judgments have been made in estimating the net realizable value of the Company’s Ukrainian inventories. During the three and six months ended June 30, 2022, the Company recorded reserves of $24 million and $24 million, respectively, for inventories with net realizable values determined to be lower than their costs, which were recorded in Cost of goods sold within the Company’s Agribusiness segment. As of June 30, 2022, the Company evaluated the recoverability of its inventories inside Ukraine considering the latest information available to management regarding: the current status of the war; expectations regarding the likelihood and timing of a potential peaceful resolution to the war; the physical location and condition of Bunge's inventories, including expectations regarding the timing of spoilage and the rate at which inventories can be transported from their current location to markets in other parts of Ukraine or exported to adjacent markets. As a result of this analysis, during the three and six months ended June 30, 2022 the Company wrote off $62 million and $71 million, respectively, of inventories physically located in occupied territories in Ukraine, or in difficult to access locations with high costs of recovery. In connection with its write-off of the above inventories, the Company also wrote off $6 million and $7 million in corresponding recoverable tax assets generated on purchase of inventories subsequently written off during the three and six months ended June 30, 2022, respectively. Other current assets— Comprises $51 million of marketable securities and other short-term investments, $26 million of recoverable taxes, net, and $7 million of various other items, as follows: • Marketable securities and other short-term investments— Primarily comprise Ukrainian (“on-shore”) government debt securities, denominated in Ukrainian hryvnia . Bunge classifies these securities as “trading securities”, carried at fair value in the Company’s condensed consolidated balance sheet, with changes in fair value recorded in the Company’s condensed consolidated statements of income in the period in which they occur. In addition to the marketable securities and other short-term investments belonging to Bunge’s Ukrainian subsidiaries, shown in the above balance sheet, certain of the Company’s non-Ukrainian subsidiaries hold certain U.S. dollar denominated, non-Ukrainian (“off-shore”) corporate debt securities of issuers with significant exposure to Ukraine. The values of these off-shore securities are directly impacted by the ongoing war. Such items, again reported within Other current assets as marketable securities and other short-term investments, totaled $15 million as of June 30, 2022. As a result of the war, trading in the Ukrainian and Ukrainian-exposed debt securities has largely ceased. As such, at June 30, 2022, the prices of such securities were determined using pricing models with inputs based on similar securities adjusted to reflect management’s best estimate of the specific characteristics of the securities held by the Company. Such inputs represent a significant component of the fair value of the securities held by the Company, resulting in the securities being classified as Level 3 in the Company’s table of assets and liabilities accounted for at fair value on a recurring basis in Note 12 - Fair Value Measurements . During the three and six months ended June 30, 2022, the Company recorded a combined $5 million and $69 million loss, respectively, on its “on-shore” and “off-shore” portfolios, within Other income (expense) – net, in the condensed consolidated statement of income, of which $37 million relates to securities still held at June 30, 2022. • Recoverable taxes, net— Comprise $26 million in net value-added taxes paid upon the acquisition of property, plant and equipment, raw materials, taxable services, and other transactional taxes, recoverable in cash from the Ukrainian government. Bunge has continued to receive refunds of recoverable taxes from the Ukrainian government since the start of the war, including as recently as early June. Therefore, as of June 30, 2022, and during the three and six months then ended, Bunge has not recorded any change in allowances for recoverable taxes in Ukraine except for those associated with the Company's write-off of inventories, described above. • Other— Primarily comprise prepaid expenses and advance payments against contracts for future deliveries of specified quantities of agricultural commodities. Property, plant, and equipment, net— As described above, following the onset of the war, Bunge temporarily idled its Ukrainian operations. However, beginning late March, Bunge restarted certain limited activities. On each of March 22, June 22, and July 1, 2022, Bunge’s Mykolaiv port facility sustained damage as a result of the war. In each of these instances, based on initial visual inspections, there did not appear to be material physical damage to the Mykolaiv port facility, the adjacent Oilseed crush plant, or any other facilities. However, thorough onsite physical inspections of the damage to the Mykolaiv facility, or potential damage to other Bunge facilities, resulting from the two most recent incidents have not been possible due to safety concerns. As such, significant judgments have been made in estimating the extent of any damage to the Company’s facilities in Ukraine. Accordingly, the Company has recorded impairment provisions of $1 million and $2 million in relation to such damage, within Cost of goods sold, during the three and six months ended June 30, 2022, respectively. The expense was recorded in the Company’s Agribusiness segment. In light of the war, Bunge evaluated the recoverability of its Ukrainian property, plant and equipment using an income method based on forecasts of expected future cash flows attributable to the respective assets under a range of possible outcomes, including those with reduced or no future cash flows, and concluded that the Company's Ukrainian property, plant and equipment was recoverable. The recoverability tests depend on a number of significant estimates and assumptions, including the likelihood and timing of a potential peaceful resolution to the war, the availability and cost of raw material commodities and other inputs, as well as demand levels for products. During the second quarter, the Company revised these estimates and assumptions to reflect the latest available information pertaining to the likelihood and timing of resuming operations at its Ukrainian facilities, expectations around the size of future harvests in Ukraine, and related changes in the availability and costs of raw materials commodities and inputs. The Company believes these estimates and assumptions are reasonable, and the reported amounts are not highly sensitive to any individual assumption underlying the recoverability tests. However, future changes in the judgments, assumptions and estimates used in these recoverability tests could result in different conclusions regarding the recoverability of the Company's Ukrainian property, plant and equipment and may result in the need for the Company to record non-cash impairment charges of its Ukrainian property, plant and equipment at such time. Other non-current assets— Comprises $26 million of deferred tax assets, $10 million of operating lease right-of-use assets associated with Bunge’s facilities, $7 million of recoverable taxes, net, expected to be realized in periods greater than twelve months from the balance sheet date, and $7 million of various other items. Trade accounts payable and accrued liabilities— Comprise amounts owed by the Company’s Ukrainian subsidiaries for goods delivered to or services consumed by such subsidiaries in the ordinary course of business. Short-term debt— Bunge's short-term debt represents Ukrainian hryvnia denominated debt, primarily used to fund working capital requirements, issued by Ukrainian branches of non-Ukraine-based financial institutions. Other-current liabilities and Other non-current liabilities— Primarily comprise various commercial and other provisions that arise in the normal course of business. Russia The scope of current economic and other sanctions on Russia, certain Russian citizens and enterprises, as well as the nature and extent of potential additional sanctions, is uncertain. Bunge currently maintains control over all material operations and facilities in Russia. Bunge continues to monitor developments regarding the legal and operational environment in Russia together with their related impacts on the Company’s operations. During the three and six months ended June 30, 2022, the Company's Russian subsidiaries have not experienced any material financial statement impacts as a direct result of the war. The condensed consolidated balance sheet below provides information on the Company’s major classes of assets and liabilities in Russia as of June 30, 2022. As of June 30, 2022, the total assets and total liabilities associated with Bunge’s Russian subsidiaries comprise less than 1% of Bunge’s consolidated total assets and total liabilities, respectively. The functional currency of Bunge’s Russian subsidiaries is the Russian ruble (RUB) and the foreign exchange rates used to convert assets and liabilities denominated in Russian ruble represent the official exchange rates published by the Central Bank of the Russian Federation. Since the onset of the war, the Russian government has imposed restrictions on companies’ abilities to repatriate or otherwise remit cash from their Russian-based operations to various locations outside of Russia, including limiting capital repayments to non-Russian entities to RUB 10 million ($0.2 million) per month. However, Bunge remains able to readily purchase U.S. dollars and other non-Russian currencies onshore in Russia in order to make international payments for commercial contracts and is also readily able to exchange Russian rubles in international currency exchange markets. Bunge continues to exercise control of and consolidates its Russian subsidiaries. The condensed consolidated balance sheet related to the Company’s Russian operations as of June 30, 2022 consists of the following: (US$ in millions) June 30, Current assets: Cash and cash equivalents $ 12 Trade accounts receivable (less allowances of zero) 23 Inventories 51 Other current assets 20 Total current assets 106 Property, plant and equipment, net 32 Other non-current assets 19 Total assets $ 157 Current liabilities: Trade accounts payable and accrued liabilities $ 11 Other current liabilities 9 Total current liabilities 20 Total liabilities $ 20 |
ACQUISITIONS AND DISPOSITIONS
ACQUISITIONS AND DISPOSITIONS | 6 Months Ended |
Jun. 30, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
ACQUISITIONS AND DISPOSITIONS | ACQUISITIONS AND DISPOSITIONS Assets held for sale and Liabilities held for sale Mexico Wheat Milling Disposition On October 12, 2021, Bunge entered into an agreement to sell substantially all of its wheat milling business in Mexico in exchange for cash proceeds approximately equal to the book value of Property, plant and equipment, net, plus an additional sum in consideration for the value of net working capital to be transferred upon closing. Additionally, cumulative translation adjustments, among other items related to the disposal group, resulted in a corresponding impairment loss on sale of $170 million, recognized in Cost of goods sold for the year ended December 31, 2021. The agreement is expected to close in the last half of 2022 and is subject to regulatory approval and customary closing conditions. The following table presents the disposal group's major classes of assets and liabilities included in Assets held for sale and Liabilities held for sale, respectively, on the condensed consolidated balance sheet at June 30, 2022, reported under the Milling segment: (US$ in millions) June 30, Trade accounts receivable $ 77 Inventories 141 Other current assets 14 Property, plant and equipment, net 162 Operating lease assets 2 Goodwill & Other intangible assets, net 86 Impairment reserve (170) Assets held for sale (1) (2) $ 312 Trade accounts payable $ 41 Current operating lease obligations 2 Other current liabilities 18 Liabilities held for sale (2) $ 61 (1) Assets held for sale excludes approximately $152 million of cumulative translation adjustments on non-current assets included in the Mexico wheat milling disposal group. (2) In addition to the disposition discussed above, as of June 30, 2022 the Company's reported Assets held for sale include $5 million in relation to certain other insignificant dispositions. There are no Liabilities held for sale related to these transactions as of June 30, 2022. |
TRADE STRUCTURED FINANCE PROGRA
TRADE STRUCTURED FINANCE PROGRAM | 6 Months Ended |
Jun. 30, 2022 | |
Trade Structured Finance Program [Abstract] | |
TRADE STRUCTURED FINANCE PROGRAM | TRADE STRUCTURED FINANCE PROGRAM The Company engages in various trade structured finance activities to leverage the value of its global trade flows. These activities include programs under which the Company generally obtains U.S. dollar-denominated letters of credit ("LCs") from financial institutions, each based on an underlying commodity trade flow, and time deposits denominated in either the local currency of the financial institutions' counterparties or in U.S. dollars, as well as foreign exchange forward contracts, in which trade related payables are set-off against receivables, all of which are subject to legally enforceable set-off agreements. As of June 30, 2022 and December 31, 2021, time deposits and LCs of $6,170 million and $6,543 million, respectively, were presented net on the condensed consolidated balance sheets as the criteria of ASC 210-20, Offsetting , had been met. The net losses and gains related to such activities are included as an adjustment to Cost of goods sold in the accompanying condensed consolidated statements of income. At June 30, 2022 and December 31, 2021, time deposits, including those presented on a net basis, carried weighted-average interest rates of 2.10% and 1.08%, respectively. During the six months ended June 30, 2022 and 2021, total net proceeds from issuances of LCs were $3,689 million and $3,995 million, respectively. These cash inflows were offset by the related cash outflows resulting from placement of the time deposits and repayment of the LCs. All cash flows related to the programs are included in operating activities in the condensed consolidated statements of cash flows. As part of the trade structured finance activities, LCs may be sold to financial institutions on a discounted basis. Bunge does not service derecognized LCs. The terms of the sale may require the Company to continue to make periodic interest payments to financial institutions based on changes in Secured Overnight Financing Rate ("SOFR"), or LIBOR for trades prior to January 1, 2022, for a period of up to 365 days. Bunge’s payment obligation to financial institutions as part of the trade structured finance activities, reported in Other current liabilities, including any unrealized gain or loss on changes in SOFR, or LIBOR for trades prior to January 1, 2022, is not significant as of June 30, 2022 or December 31, 2021. The notional amounts of LCs subject to continuing variable interest payments that have been derecognized from the Company's condensed consolidated balance sheets as of June 30, 2022 and December 31, 2021 are included in Note 13 - Derivative Instruments And Hedging Activities . The net gain or loss included in Cost of goods sold resulting from the fair valuation of such variable interest rate obligations is not significant for the three and six months ended June 30, 2022 and 2021. |
TRADE ACCOUNTS RECEIVABLE AND T
TRADE ACCOUNTS RECEIVABLE AND TRADE RECEIVABLES SECURITIZATION PROGRAM | 6 Months Ended |
Jun. 30, 2022 | |
Transfers and Servicing [Abstract] | |
TRADE ACCOUNTS RECEIVABLE AND TRADE RECEIVABLES SECURITIZATION PROGRAM | TRADE ACCOUNTS RECEIVABLE AND TRADE RECEIVABLES SECURITIZATION PROGRAM Trade Accounts Receivable Changes to the allowance for lifetime expected credit losses related to trade accounts receivable were as follows: Six Months Ended June 30, 2022 Rollforward of the Allowance for Credit Losses (US$ in millions) Short-term Long-term (1) Total Allowance as of January 1, 2022 $ 85 $ 47 $ 132 Current period provisions 27 1 28 Recoveries (19) — (19) Write-offs charged against the allowance (10) (3) (13) Foreign exchange translation differences (1) 2 1 Allowance as of June 30, 2022 $ 82 $ 47 $ 129 (1) Long-term portion of the allowance for credit losses included in Other non-current assets. Six Months Ended June 30, 2021 Rollforward of the Allowance for Credit Losses (US$ in millions) Short-term Long-term (1) Total Allowance as of January 1, 2021 $ 93 $ 51 $ 144 Current period provisions 17 — 17 Recoveries (13) (1) (14) Write-offs charged against the allowance (2) — (2) Foreign exchange translation differences (1) 1 — Allowance as of June 30, 2021 $ 94 $ 51 $ 145 (1) Long-term portion of the allowance for credit losses included in Other non-current assets. Trade Receivables Securitization Program Bunge and certain of its subsidiaries participate in a trade receivables securitization program (the "Program") with a financial institution, as administrative agent, and certain commercial paper conduit purchasers and committed purchasers. On March 31, 2022, Bunge and certain of its subsidiaries renewed and amended the Program. As a result, the aggregate size of the facility that provides funding against receivables sold into the Program increased by $175 million from $925 million to $1.1 billion. Bunge may also, from time to time with the consent of the administrative agent, request one or more of the existing committed purchasers or new committed purchasers to increase the total commitments by an amount not to exceed $250 million pursuant to an accordion provision. The Program will terminate on May 17, 2031; however, each committed purchaser's commitment to purchase trade receivables under the Program will terminate on May 17, 2025, unless extended for an additional period in accordance with the terms of the receivables transfer agreement. The Program was further amended to add sustainability provisions, pursuant to which the applicable margin will be increased or decreased based on Bunge's performance in comparison with certain sustainability targets, including, but not limited to, recently established science-based targets that define Bunge's climate goals within its operations and a commitment to a deforestation-free supply chain in 2025. (US$ in millions) June 30, December 31, Receivables sold that were derecognized from Bunge's condensed consolidated balance sheet $ 1,732 $ 1,426 Deferred purchase price included in Other current assets (1) $ 628 $ 496 (1) Bunge's risk of loss following the sale of the trade receivables is limited to the deferred purchase price ("DPP"), included in Other current assets in the condensed consolidated balance sheets (see Note 7 - Other Current Assets ). The DPP will be repaid in cash as receivables are collected, generally within 30 days of collection. Provisions for delinquencies and credit losses on trade receivables sold under the Program were $4 million and $5 million at June 30, 2022 and December 31, 2021, respectively. The table below summarizes the cash flows and discounts of Bunge’s trade receivables associated with the Program. Servicing fees under the Program were not significant in any period. Six Months Ended (US$ in millions) 2022 2021 Gross receivables sold $ 8,585 $ 6,915 Proceeds received in cash related to transfer of receivables $ 7,876 $ 6,423 Cash collections from customers on receivables previously sold $ 8,372 $ 6,545 Discounts related to gross receivables sold included in Selling, general and administrative expense $ 6 $ 4 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. |
INVENTORIES
INVENTORIES | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories by segment are presented below. Readily marketable inventories ("RMI") are agricultural commodity inventories, such as soybeans, soybean meal, soybean oil, palm oil, corn, and wheat carried at fair value because of their commodity characteristics, widely available markets, and international pricing mechanisms. The Company engages in trading and distribution, or merchandising activities, and part of RMI can be attributable to such activities and is not held for processing. All other inventories are carried at lower of cost or net realizable value. (US$ in millions) June 30, December 31, Agribusiness (1) $ 8,609 $ 6,800 Refined and Specialty Oils (2) 1,585 1,310 Milling (3) 283 319 Corporate and Other 4 2 Total $ 10,481 $ 8,431 (1) Includes RMI of $8,015 million and $6,490 million at June 30, 2022 and December 31, 2021, respectively. Of these amounts, $6,616 million and $4,857 million can be attributable to merchandising activities at June 30, 2022 and December 31, 2021, respectively. (2) Includes RMI of $320 million and $257 million at June 30, 2022 and December 31, 2021, respectively. (3) Includes RMI of $43 million and $122 million at June 30, 2022 and December 31, 2021, respectively. |
OTHER CURRENT ASSETS
OTHER CURRENT ASSETS | 6 Months Ended |
Jun. 30, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER CURRENT ASSETS | OTHER CURRENT ASSETS Other current assets consist of the following: (US$ in millions) June 30, December 31, Unrealized gains on derivative contracts, at fair value $ 2,479 $ 1,630 Prepaid commodity purchase contracts (1) 365 186 Secured advances to suppliers, net (2) 192 375 Recoverable taxes, net 375 347 Margin deposits 639 569 Deferred purchase price receivable (3) 628 496 Marketable securities and other short-term investments (4) 172 520 Income taxes receivable 114 47 Prepaid expenses 434 380 Restricted cash 5 3 Other 286 198 Total $ 5,689 $ 4,751 (1) Prepaid commodity purchase contracts represent advance payments against contracts for future deliveries of specified quantities of agricultural commodities. (2) The Company provides cash advances to suppliers, primarily Brazilian soybean farmers, to finance a portion of the suppliers’ production costs. The Company does not bear any of the costs or operational risks associated with the related growing activities. The advances are largely collateralized by future crops and physical assets of the suppliers, carry a local market interest rate, and settle when the farmers' crops are harvested and sold. The secured advances to farmers are reported net of allowances of $3 million at June 30, 2022 and $3 million at December 31, 2021. Interest earned on secured advances to suppliers of $6 million and $4 million for the three months ended June 30, 2022 and 2021, respectively, and $12 million and $13 million for the six months ended June 30, 2022 and 2021, is included in Net sales in the condensed consolidated statements of income. (3) Deferred purchase price receivable represents additional credit support for the investment conduits in the Company’s trade receivables securitization program (see Note 5 - Trade Accounts Receivable and Trade Receivable Securitization Program ). (4) Marketable securities and other short-term investments - The Company invests in foreign government securities, corporate debt securities, deposits, equity securities, and other securities. The following is a summary of amounts recorded in the Company's condensed consolidated balance sheets as marketable securities and other short-term investments. (US$ in millions) June 30, December 31, Foreign government securities $ 83 $ 261 Corporate debt securities 27 158 Equity securities 25 60 Other 37 41 Total $ 172 $ 520 |
OTHER NON-CURRENT ASSETS
OTHER NON-CURRENT ASSETS | 6 Months Ended |
Jun. 30, 2022 | |
Other Assets, Noncurrent [Abstract] | |
OTHER NON-CURRENT ASSETS | OTHER NON-CURRENT ASSETS Other non-current assets consist of the following: (US$ in millions) June 30, December 31, Recoverable taxes, net (1) $ 61 $ 66 Judicial deposits (1) 105 89 Other long-term receivables, net 5 11 Income taxes receivable 140 139 Long-term investments (2) 244 196 Affiliate loans receivable 14 16 Long-term receivables from farmers in Brazil, net (1) 30 33 Unrealized gains on derivative contracts, at fair value 8 49 Other 120 120 Total $ 727 $ 719 (1) A significant portion of these non-current assets arise from the Company’s Brazilian operations and their realization could take several years. (2) As of June 30, 2022 and December 31, 2021, $10 million and $12 million, respectively, of long-term investments are recorded at fair value. Recoverable taxes, net - Recoverable taxes include value-added taxes paid upon the acquisition of property, plant and equipment, raw materials and taxable services, and other transactional taxes which can be recovered in cash or as compensation against income taxes, or other taxes Bunge may owe, primarily in Brazil and Europe. Recoverable taxes are reported net of allow ances of $17 million and $18 million at June 30, 2022 and December 31, 2021, respectively. Judicial deposits - Judicial deposits are funds the Company has placed on deposit with the courts in Brazil. These funds are held in judicial escrow relating to certain legal proceedings pending resolution and bear interest at the Selic rate, which is the benchmark rate of the Brazilian central bank. Income taxes receivable - Income taxes receivable include overpayments of current income taxes plus accrued interest. These income tax prepayments are expected to be primarily used for the settlement of future income tax obligations. Income taxes receivable in Brazil bear interest at the Selic rate. Long-term investments - Long-term investments primarily comprise Bunge's noncontrolling equity investments in growth stage agribusiness and food companies held by Bunge Ventures. Affiliate loans receivable - Affiliate loans receivable are primarily interest-bearing receivables from unconsolidated affiliates with remaining maturities of greater than one year. Long-term receivables from farmers in Brazil, net - The Company provides financing to farmers in Brazil, primarily through secured advances against farmer commitments to deliver agricultural commodities (primarily soybeans) upon harvest of the then-current year’s crop, and through credit sales of fertilizer to farmers. Certain such long-term receivables from farmers are originally recorded in Other current assets as prepaid commodity contracts or secured advances to suppliers (see Note 7 - Other Current Assets ) or Other non-current assets according to their maturity. Advances initially recorded in Other current assets are reclassified to Other non-current assets if collection issues arise and amounts become past due with resolution of such matters expected to take more than one year. The average recorded investment in long-term receivables from farmers in Brazil for the six months ended June 30, 2022 and the year ended December 31, 2021 was $114 million and $92 million, respectively. The table below summarizes the Company’s recorded investment in long-term receivables from farmers in Brazil and the related allowance amounts. June 30, 2022 December 31, 2021 (US$ in millions) Recorded Allowance Recorded Allowance For which an allowance has been provided: Legal collection process (1) $ 41 $ 34 $ 42 $ 35 Renegotiated amounts 1 3 3 1 For which no allowance has been provided: Legal collection process (1) 20 — 20 — Renegotiated amounts (2) 5 — 2 — Other long-term receivables (3) — — 2 — Total $ 67 $ 37 $ 69 $ 36 (1) All amounts in legal collection processes are considered past due upon initiation of legal action. (2) These renegotiated amounts are current on repayment terms. (3) New advances expected to be realized through farmer commitments to deliver agricultural commodities in crop periods greater than twelve months from the balance sheet date. Such advances are reclassified from non-current assets to current assets in later periods depending on the expected date of their realization. The table below summarizes the activity in the allowance for doubtful accounts related to long-term receivables from farmers in Brazil. Six Months Ended (US$ in millions) 2022 2021 Beginning balance $ 36 $ 63 Bad debt provisions 1 3 Recoveries (3) (3) Write-offs — (4) Transfers — — Foreign exchange translation 3 2 Ending balance $ 37 $ 61 |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES Consolidated Variable Interest Entities As indicated in Note 1 - Basis of Presentation, Principles of Consolidation, And Significant Accounting Policies, on May 1, 2022, Bunge completed a transaction with Chevron Corporation ("Chevron") to create a joint venture, Bunge Chevron Ag Renewables LLC (the "Joint Venture"), leveraging Bunge’s expertise in oilseed processing and farmer relationships, and Chevron’s expertise in fuels manufacturing and marketing, to help meet the demand for renewable fuels and to develop lower carbon intensity feedstocks. The Joint Venture is a variable interest entity ("VIE") in which Bunge is considered to be the primary beneficiary because it is responsible for the day-to-day operating decisions of the Joint Venture as well as the marketing of the principal products, primarily soybean meal and oil produced and sold by the Joint Venture, among other factors. The Joint Venture's assets can only be used to settle the Joint Venture’s own obligations and the Joint Venture’s creditors have no recourse to Bunge’s assets beyond Bunge’s maximum exposure to loss associated with the Joint Venture at any given time. The following table presents the values of the assets and liabilities associated with the Joint Venture, which are included in Bunge’s condensed consolidated balance sheet as of June 30, 2022. All amounts exclude intercompany balances, which have been eliminated upon consolidation. For all other VIEs in which Bunge is considered the primary beneficiary, the entities meet the definition of a business, and the VIE's assets can be used other than for the settlement of the VIE’s obligations. As such these VIEs have been excluded from the below table: (US$ in millions) June 30, Current assets: Cash and cash equivalents $ 369 Trade accounts receivable 42 Inventories 56 Other current assets 53 Total current assets 520 Property, plant and equipment, net 56 Total assets $ 576 Current liabilities: Trade accounts payable and accrued liabilities $ 45 Other current liabilities 53 Total current liabilities 98 Total liabilities $ 98 Non-Consolidated Variable Interest Entities On June 10, 2022, Bunge completed its acquisition of a 33% interest in Sinagro Produtos Agropecuários S.A. ("Sinagro"), a Brazilian distributor of agricultural inputs and originator of grains, in exchange for Brazilian real (R$) 273 million (approximately $52 million). As of June 30, 2022, the Company's maximum exposure to loss related to this unconsolidated VIE is limited to the investment balance of approximately $52 million. However, as part of the acquisition cost, Bunge has committed to provide certain future guarantees of Sinagro’s approximately R$730 million (approximately $139 million) third-party indebtedness in proportion to Bunge’s 33% equity holding, representing a maximum expected future guarantee of approximately R$243 million ($46 million). For additional information on VIEs for which Bunge has determined it is not the primary beneficiary, along with the Company's related maximum exposure to losses associated with such investments, please refer to Note 11 - Investments in Affiliates |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income tax expense is provided on an interim basis based on management’s estimate of the annual effective income tax rate and includes the tax effects of certain discrete items, such as changes in tax laws or tax rates or other unusual or non-recurring tax adjustments in the interim period in which they occur. In addition, results from jurisdictions projecting a loss for the year where no tax benefit can be recognized are treated discretely in the interim period in which they occur. The effective tax rate is highly dependent on the geographic distribution of the Company’s worldwide earnings or losses and tax regulations in each jurisdiction. Management regularly monitors the assumptions used in estimating its annual effective tax rate, including the realizability of deferred tax assets, and adjusts estimates accordingly. Volatility in earnings within a taxing jurisdiction could result in a determination that additional valuation allowance adjustments may be warranted. Income tax expense for the three and six months ended June 30, 2022 was $36 million and $144 million, respectively. Income tax expense for the three and six months ended June 30, 2021 was $50 million and $242 million, respectively. The effective tax rate for the three months ended June 30, 2022 was lower than the U.S. statutory rate of 21% primarily due to favorable earnings mix, and the effective tax rate for the six months ended June 30, 2022 was lower than the U.S. statutory rate of 21%, primarily due to favorable earnings mix, incentives in South America, and the release of valuation allowances in Europe and Asia. The effective tax rate for the three and six months ended June 30, 2021 was lower than the U.S. statutory rate of 21% primarily due to favorable earnings mix and incentives in South and North America. As a global enterprise, the Company files income tax returns that are subject to periodic examination and challenge by federal, state, and foreign tax authorities. In many jurisdictions, income tax examinations, including settlement negotiations or litigation, may take several years to finalize. The Company is currently under examination or litigation in various locations throughout the world. While it is difficult to predict the outcome or timing of resolution of any particular matter, management believes that the condensed consolidated financial statements reflect the largest amount of tax benefit that is more likely than not to be realized. |
OTHER CURRENT LIABILITIES
OTHER CURRENT LIABILITIES | 6 Months Ended |
Jun. 30, 2022 | |
Other Liabilities Disclosure [Abstract] | |
OTHER CURRENT LIABILITIES | OTHER CURRENT LIABILITIES Other current liabilities consist of the following: (US$ in millions) June 30, December 31, Unrealized losses on derivative contracts, at fair value $ 2,307 $ 1,713 Accrued liabilities 618 689 Advances on sales (1) 378 437 Income tax payable 83 168 Other 454 418 Total $ 3,840 $ 3,425 (1) The Company records Advances on sales when cash payments are received in advance of the Company’s performance and recognizes revenue once the related performance obligation is completed. Advances on sales are impacted by the seasonality of Bunge's business, including the timing of harvests in the northern and southern hemispheres, and amounts at each balance sheet date will generally be recognized in earnings within twelve months or less. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2022 | |
Financial Instruments And Fair Value Measurements [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Bunge's various financial instruments include certain components of working capital such as trade accounts receivable and trade accounts payable. Additionally, Bunge uses short- and long-term debt to fund operating requirements. Trade accounts receivable, trade accounts payable, and short-term debt are stated at their carrying value, which is a reasonable estimate of fair value. See Note 4 - Trade Structured Finance Program for trade structured finance program, Note 8- Other Non-Current Assets for long-term receivables from farmers in Brazil, net and other long-term investments, and Note 14- Debt for long-term debt. Bunge's financial instruments also include derivative instruments and marketable securities, which are stated at fair value. The fair value standard describes three levels within its hierarchy that may be used to measure fair value. Level Description Financial Instrument (Assets / Liabilities) Level 1 Quoted prices (unadjusted) in active markets for identical assets or liabilities. Exchange traded derivative contracts. Marketable securities in active markets. Level 2 Observable inputs, including adjusted Level 1 quotes, quoted prices for similar assets or liabilities, quoted prices in markets that are less active than traded exchanges and other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Exchange traded derivative contracts (less liquid markets). Level 3 Unobservable inputs that are supported by little or no market activity and that are a significant component of the fair value of the assets or liabilities. Assets and liabilities whose value is determined using proprietary pricing models, discounted cash flow methodologies or similar techniques. In many cases, a valuation technique used to measure fair value includes inputs from multiple levels of the fair value hierarchy. The lowest level of input that is a significant component of the fair value measurement determines the placement of the entire fair value measurement in the hierarchy. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the classification of fair value assets and liabilities within the fair value hierarchy levels. For a further definition of fair value and the associated fair value levels, refer to Note 15 - Fair Value Measurements, included in the Company's 2021 Annual Report on Form 10-K. The following table sets forth, by level, the Company’s assets and liabilities that were accounted for at fair value on a recurring basis. Fair Value Measurements at Reporting Date June 30, 2022 December 31, 2021 (US$ in millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Readily marketable inventories (Note 6) $ — $ 7,437 $ 941 $ 8,378 $ — $ 6,664 $ 205 $ 6,869 Trade accounts receivable (1) — 1 — 1 — 1 — 1 Unrealized gain on derivative contracts (2) : Interest rate — 5 — 5 — 49 — 49 Foreign exchange — 597 — 597 — 340 — 340 Commodities 133 1,311 73 1,517 63 1,055 34 1,152 Freight 71 3 — 74 79 5 — 84 Energy 277 13 — 290 44 4 — 48 Credit — 5 — 5 — 6 — 6 Equity — — — — 1 — — 1 Other (3) 40 44 66 150 91 406 — 497 Total assets $ 521 $ 9,416 $ 1,080 $ 11,017 $ 278 $ 8,530 $ 239 $ 9,047 Liabilities: Trade accounts payable (1) $ — $ 846 $ 271 $ 1,117 $ — $ 545 $ 23 $ 568 Unrealized loss on derivative contracts (4) : Interest rate — 241 — 241 — 47 — 47 Foreign exchange — 531 — 531 — 309 — 309 Commodities 161 1,203 63 1,427 98 1,051 65 1,214 Freight 120 — — 120 162 — — 162 Energy 229 — — 229 29 1 — 30 Credit — — — — — 1 — 1 Total liabilities $ 510 $ 2,821 $ 334 $ 3,665 $ 289 $ 1,954 $ 88 $ 2,331 (1) These receivables and payables are hybrid financial instruments for which Bunge has elected the fair value option as they are derived from purchases and sales of agricultural commodity products in the normal course of business. (2) Unrealized gains on derivative contracts are generally included in Other current assets. There were $8 million and $49 million included in Other non-current assets at June 30, 2022 and December 31, 2021, respectively. There were $1 million and $2 million included in Assets held for sale at June 30, 2022 and December 31, 2021, respectively. (3) Other includes the fair values of marketable securities and investments in Other current assets and Other non-current assets. (4) Unrealized losses on derivative contracts are generally included in Other current liabilities. There were $230 million and $49 million included in Other non-current liabilities at June 30, 2022 and December 31, 2021, respectively. There were no unrealized losses on derivative contracts included in Liabilities held for sale at June 30, 2022 and $1 million was included in Liabilities held for sale at December 31, 2021. Readily marketable inventories —RMI reported at fair value are valued based on commodity futures exchange quotations, broker or dealer quotations, or market transactions in either listed or OTC markets with appropriate adjustments for differences in local markets where the Company's inventories are located. In such cases, the inventory is classified within Level 2. Certain inventories may utilize significant unobservable data related to local market adjustments to determine fair value. In such cases, the inventory is classified as Level 3. If the Company used different methods or factors to determine fair values, amounts reported as unrealized gains and losses on derivative contracts and RMI at fair value in the condensed consolidated balance sheets and condensed consolidated statements of income could differ. Additionally, if market conditions change subsequent to the reporting date, amounts reported in future periods as unrealized gains and losses on derivative contracts and RMI at fair value in the condensed consolidated balance sheets and condensed consolidated statements of income could differ. Derivatives —The majority of exchange traded futures and options contracts and exchange cleared contracts are valued based on unadjusted quoted prices in active markets and are classified within Level 1. The majority of the Company’s exchange traded agricultural commodity futures are cash-settled on a daily basis and, therefore, are not included in these tables. The Company's forward commodity purchase and sales contracts are classified as derivatives along with other OTC derivative instruments, primarily relating to freight, energy, foreign exchange and interest rates, and are classified within Level 2 or Level 3 as described below. The Company estimates fair values based on exchange quoted prices, adjusted as appropriate for differences in local markets. These differences are generally valued using inputs from broker or dealer quotations, or market transactions in either the listed or OTC markets. In such cases, these derivative contracts are classified within Level 2. OTC derivative contracts include swaps, options, and structured transactions that are generally fair valued using quantitative models that require the use of multiple market inputs including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets which are not highly active, other observable inputs relevant to the asset or liability, and market inputs corroborated by correlation or other means. These valuation models include inputs such as interest rates, prices, and indices, to generate continuous yield or pricing curves and volatility factors. Where observable inputs are available for substantially the full term of the asset or liability, the instrument is categorized in Level 2. Certain OTC derivatives trade in less active markets with less availability of pricing information and certain structured transactions can require internally developed model inputs that might not be observable in or corroborated by the market. Marketable securities and investments comprise government treasury securities, corporate debt securities and other investments. Bunge analyzes how the prices are derived and determines whether the prices are liquid or less liquid tradable prices. Marketable securities and investments with liquid prices are valued using prices from publicly available sources and classified as Level 1. Marketable securities and investments with less-liquid prices are valued using third-party quotes or pricing models and classified as Level 2 or Level 3 as described below. Level 3 Measurements The following relates to Level 3 measurements. An instrument may transfer into or out of Level 3 due to inputs becoming either observable or unobservable. Level 3 Measurements —Transfers in and/or out of Level 3 represent existing assets or liabilities that were either previously categorized as a higher level for which the inputs to the model became unobservable or assets and liabilities that were previously classified as Level 3 for which the lowest significant input became observable during the period. Bunge's policy regarding the timing of transfers between levels is to record the transfers at the beginning of the reporting period. Level 3 Readily marketable inventories and trade accounts payable —The significant unobservable inputs resulting in Level 3 classification for RMI, physically settled forward purchase and sales contracts, and trade accounts payable, relate to certain management estimations regarding costs of transportation and other local market or location-related adjustments, primarily freight related adjustments in the interior of Brazil and the lack of market corroborated information in Canada. In both situations, the Company uses proprietary information such as purchase and sales contracts and contracted prices to value freight, premiums and discounts in its contracts. Movements in the prices of these unobservable inputs alone would not have a material effect on the Company's financial statements as these contracts do not typically exceed one future crop cycle. Level 3 Derivatives —Level 3 derivative instruments utilize both market observable and unobservable inputs within the fair value measurements. These inputs include commodity prices, price volatility, interest rates, volumes, and locations. Level 3 Others —primarily relates to marketable securities and investments valued using third-party quotes or pricing models with inputs based on similar securities adjusted to reflect management’s best estimate of the specific characteristics of the securities held by the Company. Such inputs represent a significant component of the fair value of the securities held by the Company, resulting in the securities being classified as Level 3. The tables below present reconciliations for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three and six months ended June 30, 2022 and 2021. These instruments were valued using pricing models that management believes reflect the assumptions that would be used by a marketplace participant. Three Months Ended June 30, 2022 (US$ in millions) Readily Derivatives, Trade Other (2) Total Balance, April 1, 2022 $ 1,131 $ 27 $ (447) $ 70 $ 781 Total gains and losses (realized/unrealized) included in cost of goods sold (1) 35 (9) 18 — 44 Total gains and losses (realized/unrealized) included in Other income (expense) – net — — — (5) (5) Purchases 856 — (80) — 776 Sales (1,310) — — — (1,310) Issuances — — — — — Settlements — — 52 — 52 Transfers into Level 3 451 7 (2) — 456 Transfers out of Level 3 (131) (15) 146 — — Translation adjustment (91) — 42 1 (48) Balance, June 30, 2022 $ 941 $ 10 $ (271) $ 66 $ 746 (1) Readily marketable inventories, derivatives, net and trade accounts payable, include gains/(losses) of $84 million, $(25) million and $17 million, respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at June 30, 2022. (2) Comprises the fair values of marketable securities and investments in Other current assets. Included within Other income (expense) - net of the condensed consolidated statements of income are $5 million in losses related to securities still held at June 30, 2022. Three Months Ended June 30, 2021 (US$ in millions) Readily Derivatives, Trade Total Balance, April 1, 2021 $ 629 $ (68) $ (213) $ 348 Total gains and losses (realized/unrealized) included in cost of goods sold (1) 15 132 5 152 Purchases 534 — (39) 495 Sales (1,094) — — (1,094) Issuances — — — — Settlements — (83) — (83) Transfers into Level 3 454 (1) (30) 423 Transfers out of Level 3 (46) — 185 139 Balance, June 30, 2021 $ 492 $ (20) $ (92) $ 380 (1) Readily marketable inventories, derivatives, net and trade accounts payable, includes gains/(losses) of $139 million, $91 million and $5 million, respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at June 30, 2021. Six Months Ended June 30, 2022 (US$ in millions) Readily Derivatives, Trade Other (2) Total Balance, January 1, 2022 $ 205 $ (31) $ (23) $ — $ 151 Total gains and losses (realized/unrealized) included in cost of goods sold (1) 170 28 33 — 231 Total gains and losses (realized/unrealized) included in Other income (expense) - net — — — (69) (69) Purchases 2,102 — (446) — 1,656 Sales (2,687) — — — (2,687) Issuances — — — — — Settlements — — 325 (84) 241 Transfers into Level 3 1,415 28 (347) 218 1,314 Transfers out of Level 3 (178) (14) 146 — (46) Translation adjustment (86) (1) 41 1 (45) Balance, June 30, 2022 $ 941 $ 10 $ (271) $ 66 $ 746 (1) Readily marketable inventories, derivatives, net and trade accounts payable, includes gains/(losses) of $167 million, $26 million and $27 million, respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at June 30, 2022. (2) Comprises the fair values of marketable securities and investments in Other current assets. Included within Other income (expense) - net of the condensed consolidated statements of income are $37 million in losses related to securities still held at June 30, 2022. Six Months Ended June 30, 2021 (US$ in millions) Readily Derivatives, Trade Total Balance, January 1, 2021 $ 208 $ (8) $ (9) $ 191 Total gains and losses (realized/unrealized) included in cost of goods sold (1) 269 20 8 297 Purchases 1,074 3 (224) 853 Sales (1,856) — — (1,856) Issuances — (2) — (2) Settlements — (49) — (49) Transfers into Level 3 900 (26) (189) 685 Transfers out of Level 3 (103) 42 322 261 Balance, June 30, 2021 $ 492 $ (20) $ (92) $ 380 (1) Readily marketable inventories, derivatives, net and trade accounts payable, includes gains/(losses) of $263 million, $(29) million and $8 million, respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at June 30, 2021. |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES 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 impact the financial statements in different ways, they are discussed separately below. Hedge Accounting Derivatives - The Company uses derivatives in qualifying hedge accounting relationships to manage certain of its interest rate, foreign currency, and commodity risks. In executing these hedge strategies, the Company primarily relies on the shortcut and critical terms match methods in designing its hedge accounting strategy, which results in little to no net earnings impact for these hedge relationships. The Company monitors these relationships on a quarterly basis and performs a quantitative analysis to validate the assertion that the hedges are highly effective if there are changes to the hedged item or hedging derivative. Fair value hedges - These derivatives are used to hedge the effect of interest rate and currency exchange rate changes on certain long-term debt. Under fair value hedge accounting, the derivative is measured at fair value and the carrying value of hedged debt is adjusted for the change in value related to the exposure being hedged, with both adjustments offset to earnings. In other words, the earnings effect of a change in the fair value of the derivative will be substantially offset by the earnings effect of the change in the carrying value of the hedged debt. The net impact of fair value hedge accounting for interest rate swaps is recognized in Interest expense. For cross currency swaps the changes in currency risk on the derivative are recognized in Foreign exchange gains (losses), and the changes in interest rate risk are recognized in Interest expense. Changes in basis risk are held in Accumulated other comprehensive income (loss) until realized through the coupon. Cash flow hedges of currency risk - The Company manages currency risk on certain forecasted purchases, sales, and selling, general and administrative expenses with currency forwards. The change in the value of the forward is held in Accumulated other comprehensive income (loss) until the transaction affects earnings, at which time the change in value of the currency forward is reclassified to Net sales, Cost of goods sold, or Selling, general and administrative expenses. These hedges mature at various times through April 2023. Of the amount currently in Accumulated other comprehensive income (loss), $4 million of deferred losses is expected to be reclassified to earnings in the next twelve months. Net investment hedges - The Company hedges the currency risk of certain of its foreign subsidiaries with currency forwards for which the currency risk is remeasured through Accumulated other comprehensive income (loss). For currency forwards, the forward method is used. The change in the value of the forward is classified in Accumulated other comprehensive income (loss) until the transaction affects earnings by way of either sale or substantial liquidation of the foreign subsidiary. The table below provides information about the balance sheet values of hedged items and the notional amount of derivatives used in hedging strategies. The notional amount of the derivative is the number of units of the underlying (for example, the notional principal amount of the debt in an interest rate swap). The notional amount is used to compute interest or other payment streams to be made under the contract and is a measure of the Company’s level of activity. The Company discloses derivative notional amounts on a gross basis. (US$ in millions) June 30, December 31, 2021 Unit of Hedging instrument type: Fair value hedges of interest rate risk Interest rate swap $ 3,831 $ 4,006 $ Notional Cumulative adjustment to long-term debt from application of hedge accounting $ (232) $ — $ Notional Carrying value of hedged debt $ 3,579 $ 3,990 $ Notional Fair value hedges of currency risk Cross currency swap $ 225 $ 267 $ Notional Carrying value of hedged debt $ 225 $ 267 $ Notional Cash flow hedges of currency risk Foreign currency forward $ 306 $ 148 $ Notional Foreign currency option $ 30 $ 60 $ Notional Net investment hedges Foreign currency forward $ 945 $ 1,020 $ 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 of these instruments is primarily presented in Interest expense. Currency derivatives are used to hedge the balance sheet and commercial exposures that arise from the Company's global operations. The impact of changes in fair value of these instruments is presented in Cost of goods sold when hedging commercial exposures and Foreign exchange gains (losses) when hedging monetary exposures. Agricultural commodity derivatives are used primarily to manage the Company's inventory and forward purchase and sales contracts. Contracts to purchase agricultural commodities generally relate to current or future crop years for delivery periods quoted by regulated commodity exchanges. Contracts for the sale of agricultural commodities generally do not extend beyond one future crop cycle. The impact of changes in fair value of these instruments is presented in Cost of goods sold. The Company uses derivative instruments referred to as forward freight agreements ("FFAs") and FFA options to hedge portions of its current and anticipated ocean freight costs. The impact of changes in fair value of these instruments is presented in Cost of goods sold. The Company uses energy derivative instruments to manage its exposure to volatility in energy costs. Hedges may be entered into for natural gas, electricity, coal and fuel oil, including bunker fuel. The impact of changes in fair value of these instruments is presented in Cost of goods sold. The Company may also enter into other derivatives, including credit default swaps, carbon emission derivatives and equity derivatives to manage its exposure to credit risk and broader macroeconomic risks, respectively. The impact of changes in fair value of these instruments is presented in Cost of goods sold. The table below summarizes the volume of economic derivatives as of June 30, 2022 and December 31, 2021. For those contracts traded bilaterally through the OTC markets (e.g., forwards, forward rate agreements ("FRAs"), swaps, and variable interests rate obligations), the gross position is provided. For exchange traded (e.g., futures, FFAs and options) and cleared positions (e.g., energy swaps), the net position is provided. June 30, December 31, 2022 2021 Unit of (US$ in millions) Long (Short) Long (Short) Interest rate Swaps $ 373 $ (1,726) $ 2,924 $ (2,506) $ Notional Futures $ — $ (141) $ — $ — $ Notional Currency Forwards $ 11,476 $ (13,095) $ 12,961 $ (14,065) $ Notional Swaps $ 2,281 $ (1,799) $ 1,362 $ (1,422) $ Notional Futures $ — $ (10) $ — $ (8) $ Notional Options $ 105 $ (95) $ 88 $ (106) Delta Agricultural commodities Forwards 27,140,385 (31,127,699) 29,329,244 (34,810,969) Metric Tons Swaps — (2,272,498) 33,250 (502,652) Metric Tons Futures — (3,478,696) — (7,221,848) Metric Tons Options 300,204 — 218,106 (116,370) Metric Tons Ocean freight FFA — (14,919) — (6,713) Hire Days FFA options 372 — 548 — Hire Days Natural gas Swaps 1,046,445 — 1,764,455 — MMBtus Futures 6,759,096 — 5,147,500 — MMBtus Energy - other Swaps 491,977 (258,525) 741,307 (426,476) Metric Tons Electricity Swaps 536,325 (169,356) 670,973 (256,949) Mwh Energy - CO2 Futures 258,000 — — — Metric Tons Other Swaps and futures $ 10 $ (40) $ 20 $ (585) $ Notional The Effect of Derivative Instruments and Hedge Accounting on the Condensed Consolidated Statements of Income The tables below summarize the net effect of derivative instruments and hedge accounting on the condensed consolidated statements of income for the three and six months ended June 30, 2022 and 2021. Gain (Loss) Recognized in Three Months Ended June 30, (US$ in millions) 2022 2021 Income statement classification Type of derivative Net sales Hedge accounting Foreign currency $ 5 $ 1 Cost of goods sold Economic hedges Foreign currency $ (70) $ 470 Commodities 638 (1,139) Other (1) 9 131 Total Cost of goods sold $ 577 $ (538) Interest expense Hedge accounting Interest rate $ 3 $ 7 Total Interest expense $ 3 $ 7 Foreign exchange gains (losses) Hedge accounting Foreign currency $ (25) $ 1 Economic hedges Foreign currency 57 (154) Total Foreign exchange gains (losses) $ 32 $ (153) 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 $ (4) Gains and losses on derivatives used as cash flow hedges of foreign currency risk included in other comprehensive income (loss) during the period $ 4 $ 7 Gains and losses on derivatives used as net investment hedges included in other comprehensive income (loss) during the period $ 41 $ (96) Amounts released from accumulated other comprehensive income (loss) during the period Cash flow hedge of foreign currency risk $ (5) $ (2) (1) Other includes results from freight, energy and other derivatives. Gain (Loss) Recognized in Six months ended June 30, (US$ in millions) 2022 2021 Income statement classification Type of derivative Net sales Hedge accounting Foreign currency $ 7 $ 1 Cost of goods sold Economic hedges Foreign currency $ 423 $ 185 Commodities (618) (1,736) Other (1) 90 259 Total Cost of goods sold $ (105) $ (1,292) Interest expense Hedge accounting Interest rate $ (4) $ 13 Economic hedges Interest rate 1 1 Total Interest expense $ (3) $ 14 Foreign exchange gains (losses) Hedge accounting Foreign currency $ (37) $ (17) Economic hedges Foreign currency 116 (67) Total Foreign exchange gains (losses) $ 79 $ (84) Other income (expense) Economic hedges Interest rate $ 1 $ 1 Total Other income/(expense) $ 1 $ 1 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 $ (2) Gains and losses on derivatives used as cash flow hedges of foreign currency risk included in other comprehensive income (loss) during the period $ 36 $ 3 Gains and losses on derivatives used as net investment hedges included in other comprehensive income (loss) during the period $ (108) $ (58) Amounts released from accumulated other comprehensive income (loss) during the period Cash flow hedge of foreign currency risk $ (7) $ (3) (1) Other includes results from freight, energy and other derivatives. |
DEBT
DEBT | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Bunge’s $600 million commercial paper program is supported by an identical amount of committed back-up bank credit lines (the "Liquidity Facility") provide d 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 June 30, 2022 and December 31, 2021, there were no borrowings outstanding under the commercial paper program and no borrowings under the Liquidity Facility, respectively. The Liquidity Facility is Bunge's only revolving credit facility that requires lenders to maintain minimum credit ratings. The Liquidity Facility is set to expire on July 16, 2026. Bunge had no borrowings outstanding at June 30, 2022 and December 31, 2021 under the unsecured $1 billion 364-day Revolving Credit Agreement (the "$1 Billion Credit Agreement") with a group of lenders, that matured on July 15, 2022. On July 15, 2022, Bunge entered into an unsecured $1.1 billion 364-day Revolving Credit Agreement (the "$1.1 Billion Credit Agreement"), with a group of lenders, maturing on July 14, 2023. Bunge may from time-to-time request one or more of the existing or new lenders to increase the total participations under the $1.1 Billion Credit Agreement by an aggregate amount up to $250 million pursuant to an accordion provision. Borrowings will bear interest at the daily simple or term SOFR plus an applicable margin, as defined in the $1.1 Billion Credit Agreement. The $1.1 Billion Credit Agreement replaces the existing $1 Billion Credit Agreement. Bunge had no borrowings outstanding at June 30, 2022 and December 31, 2021 under the unsecured committed $1.35 billion 5-year Revolving Credit Agreement (the "$1.35 Billion Credit Agreement") with a group of lenders, maturing July 16, 2026. Bunge may, from time to time, request one or more of the existing or new lenders to increase the total commitments under the $1.35 Billion Credit Agreement by an aggregate amount up to $200 million pursuant to an accordion provision. Borrowings will bear interest at LIBOR plus an applicable margin, as defined in the $1.35 Billion Credit Agreement. Bunge had no borrowings outstanding at June 30, 2022 and December 31, 2021 under the unsecured $865 million Revolving Credit Agreement (the "$865 Million 2026 Facility") with a group of lenders, set to mature on October 29, 2026. Borrowings will bear interest at LIBOR plus an applicable margin, as defined in the $865 Million 2026 Facility. Bunge had no borrowings outstanding at June 30, 2022 and December 31, 2021 under the unsecured $1.75 billion Revolving Credit Facility ("$1.75 Billion Revolving Credit Facility"), set to mature on December 16, 2024. The interest rate under the $1.75 Billion Revolving Credit Facility is tied to certain sustainability criteria, including, but not limited to, recently established science-based targets that define Bunge's climate goals within its operations and a commitment to a deforestation-free supply chain in 2025. Bunge may from time to time, with the consent of the agent, request one or more of the existing lenders or new lenders to increase the total commitments by an amount not to exceed $250 million pursuant to an accordion provision set forth in the $1.75 Billion Revolving Credit Facility. Borrowings under the $1.75 Billion Revolving Credit Facility will bear interest at LIBOR plus a margin, which will vary from 0.30% to 1.30%, based on the senior long-term unsecured debt ratings provided by Moody’s Investors Services Inc. and S&P Global Ratings. Bunge will also pay a fee that will vary from 0.10% to 0.40% based on its utilization of the Revolving Credit Facility. At June 30, 2022 and December 31, 2021, Bunge had $5,815 million unused and available committed borrowing capacity under committed revolving credit facilities and the commercial paper program, totaling $5,565 million, in addition to a committed unsecured $250 million delayed draw term loan, as discussed below. In addition to committed facilities, from time to time, Bunge Limited and/or its financing subsidiaries enter into uncommitted bilateral short-term credit lines as necessary based on financing requirements. At June 30, 2022 and December 31, 2021 there were $1,150 million in borrowings and no borrowings, respectively, outstanding under these bilateral short-term credit lines. Loans under such credit lines are non-callable by the respective lenders. In addition, Bunge's operating companies had $1,004 million a nd $673 million in short-term borrowings outstanding under local bank lines of credit at June 30, 2022 and December 31, 2021 , respectively, to support working capital requirements. The fair value of Bunge’s long-term debt is based on interest rates currently available on comparable maturities to companies with credit standing similar to that of Bunge. The carrying amounts and fair value of long-term debt are as follows: June 30, 2022 December 31, 2021 (US$ in millions) Carrying Fair Value Carrying Fair Value Long-term debt, including current portion $ 4,365 $ 4,365 $ 5,291 $ 5,489 On February 23, 2022, Bunge issued a notice of redemption for all of the issued and outstanding 4.35% unsecured senior notes (the "4.35% Senior Notes") due March 15, 2024. The redemption for the 4.35% Senior Notes occurred on March 10, 2022. In connection with the redemption, during the six months ended June 30, 2022, the Company recorded a $47 million charge within Interest expense, of which $31 million related to a "make-whole" provision based on the sum of the present values of the remaining scheduled payments of principal and interest on the 4.35% Senior Notes, plus accrued and unpaid interest as of the March 10, 2022 redemption date, and $16 million related to the reclassification of unrealized mark-to-market losses on terminated and de-designated interest rate hedges. On October 29, 2021, Bunge entered into an unsecured $250 million delayed draw term loan (the "$250 Million Delayed Draw Term Loan") with a group of lenders that is required to be drawn by October 27, 2022. The $250 Million Delayed Draw Term Loan will bear interest at LIBOR plus an applicable margin, as defined in the $250 Million Delayed Draw Term Loan agreement. The $250 Million Delayed Draw Term Loan matures on October 29, 2028 and was not drawn as of June 30, 2022. On July 26, 2022, Bunge entered into an unsecured $750 million delayed draw term loan (the "$750 Million Delayed Draw Term Loan") with a group of lenders giving Bunge the option to draw the loan prior to October 26, 2022. The $750 Million Delayed Draw Term Loan will bear interest at daily simple SOFR plus a credit spread adjustment and applicable margin, as defined in the $750 Million Delayed Draw Term Loan agreement. The $750 Million Delayed Draw Term Loan matures on the third anniversary of the drawdown date. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Bunge purchases agricultural commodity products from certain of its unconsolidated investees and other related parties. Such related party purchases comprised approximately 7% or less of total Cost of goods sold for the three and six months ended June 30, 2022 and 2021. Bunge also sells agricultural commodity products to certain of its unconsolidated investees and other related parties. Such related party sales comprised approximately 2% or less of total Net sales for the three and six months ended June 30, 2022 and 2021. In addition, Bunge receives services from and provides services to its unconsolidated investees and other related parties, including tolling, port handling, administrative support, and other services. For the three and six months ended June 30, 2022 and 2021, such services were not material to the Company's consolidated results. At June 30, 2022 and December 31, 2021, receivables related to the above related party transactions comprised approximately 2% or less of total Trade accounts receivable. At June 30, 2022 and December 31, 2021, payables related to the above related party transactions comprised approximately 5% or less of total Trade accounts payable. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Bunge is party to claims and lawsuits, primarily non-income tax and labor claims in South America, arising in the normal course of business. Bunge is also involved from time to time in various contract, antitrust, environmental litigation and remediation, and other litigation, claims, government investigations, and legal proceedings. The ability to predict the ultimate outcome of such matters involves judgments, estimates and inherent uncertainties. Bunge records liabilities related to legal matters when the exposure item becomes probable and can be reasonably estimated. Bunge management does not expect these matters to have a material adverse effect on Bunge’s financial condition, results of operations, or liquidity. However, these matters are subject to inherent uncertainties and there exists the remote possibility that a liability arising from these matters could have a material adverse impact in the period in which the uncertainties are resolved should the liability substantially exceed the amount of provisions included in the condensed consolidated balance sheets. Information regarding the claims appears in Bunge’s Report on Form 10-K for the year ended December 31, 2021. Included in Other non-current liabilities as of June 30, 2022 and December 31, 2021 are the following amounts related to these matters: (US$ in millions) June 30, December 31, Non-income tax claims $ 17 $ 15 Labor claims 69 72 Civil and other claims 92 95 Total $ 178 $ 182 Non-income tax claims Brazil Indirect Taxes - These tax claims relate to ongoing claims against Bunge’s Brazilian subsidiaries, primarily value-added tax claims (ICMS, ISS, IPI and PIS/COFINS). As of June 30, 2022, the Brazilian federal and state authorities have concluded examinations of the ICMS and PIS/COFINS tax returns and have issued outstanding claims. The Company continues to evaluate the merits of each of these claims and will recognize them when loss is considered probable. The outstanding claims comprise the following: (US$ in millions) Years Examined June 30, 2022 December 31, 2021 ICMS 1990 to Present $ 235 $ 222 PIS/COFINS 2002 to Present $ 347 $ 228 Labor claims The labor claims are principally against Bunge’s Brazilian subsidiaries. The labor claims primarily relate to dismissals, severance, health and safety, salary adjustments, and supplementary retirement benefits. Civil and other claims The civil and other claims relate to various disputes with third parties, including suppliers and customers. Guarantees Bunge has issued or was a party to the following guarantees at June 30, 2022: (US$ in millions) Maximum Unconsolidated affiliates guarantee (1) $ 240 Residual value guarantee (2) 298 Other guarantees 5 Total $ 543 (1) Bunge has issued guarantees to certain financial institutions related to debt of certain of its unconsolidated affiliates. The terms of the guarantees are equal to the terms of the related financings, which have maturity dates through 2034. There are no recourse provisions or collateral that would enable Bunge to recover any amounts paid under these guarantees. In addition, certain Bunge subsidiaries have guaranteed the obligations of certain of their unconsolidated affiliates and in connection therewith have secured their guarantee obligation s through a pledge to the financial institutions of certain of their unconsolidated affiliates' shares plus loans receivable from the unconsolidated affiliates in the event that the guaranteed obligations are enforced. Based on amounts drawn under such debt facilities at June 30, 2022, Bunge's potential liability was $230 million, and it has recorded a $5 million obligation related to these guarantees within Other non-current liabilities. (2) Bunge has issued guarantees to certain financial institutions that are party to certain operating lease arrangements for railcars, barges, and buildings. These guarantees provide for a minimum residual value to be received by the lessor at the conclusion of the lease term. These leases expire at various dates from 2022 through 2029. At June 30, 2022, no obligation has been recorded related to these guarantees. Any obligation recorded would be recognized in Current operating lease obligations or Non-current operating lease obligations. Bunge Limited has provided a guarantee to the Director of the Illinois Department of Agriculture as Trustee for Bunge North America, Inc. ("BNA"), an indirect wholly-owned subsidiary, which guarantees all amounts due and owing by BNA to grain producers and/or depositors in the State of Illinois who have delivered commodities to BNA’s Illinois facilities. |
OTHER NON-CURRENT LIABILITIES
OTHER NON-CURRENT LIABILITIES | 6 Months Ended |
Jun. 30, 2022 | |
Other Liabilities Disclosure [Abstract] | |
OTHER NON-CURRENT LIABILITIES | OTHER NON-CURRENT LIABILITIES (US$ in millions) June 30, December 31, Labor, legal, and other provisions $ 183 $ 187 Pension and post-retirement obligations (1) 217 227 Uncertain income tax positions (2) 78 73 Unrealized losses on derivative contracts, at fair value (3) 230 49 Other 108 122 Total $ 816 $ 658 (1) On February 28, 2022, the Company, together with plan participants and related employee unions, agreed to the transition of one of the Company's international defined benefit pension plans to a multi-employer pension plan. Following the transition, the Company accounts for the multi-employer plan similar to a defined contribution plan, resulting in full settlement of the related defined benefit plan obligations. In connection with the settlement, during the six months ended June 30, 2022, the Company recorded a $41 million pretax gain within Other income (expense) - net in its condensed consolidated statements of income, comprising a $4 million settlement of the related defined benefit plan obligations as well as the reclassification of $37 million in unamortized actuarial gains from Accumulated other comprehensive income (loss). Of this pretax gain, $12 million was attributable to Redeemable non-controlling interests. (2) See Note 10- Income Taxes. (3) See Note 12 - Fair Value Measurements. |
REDEEMABLE NONCONTROLLING INTER
REDEEMABLE NONCONTROLLING INTEREST | 6 Months Ended |
Jun. 30, 2022 | |
Redeemable Noncontrolling Interest, Equity, Carrying Amount [Abstract] | |
REDEEMABLE NONCONTROLLING INTEREST | REDEEMABLE NONCONTROLLING INTEREST In connection with the acquisition of a 70% ownership interest in Bunge Loders Croklaan Group B.V. ("Loders"), the Company 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, equity capital contributions and distributions, are affected via a charge against Retained earnings. Additionally, any such charges to Retained earnings will affect Net income (loss) available to Bunge common shareholders as part of Bunge's calculation of earnings per common share. |
EQUITY
EQUITY | 6 Months Ended |
Jun. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
EQUITY | EQUITY Cumulative Convertible Perpetual Preference Shares — On March 18, 2022, Bunge announced all issued and outstanding shares of its 4.875% Cumulative Convertible Perpetual Preference Shares ("convertible preference shares") would automatically convert into common shares of the Company, par value $0.01 per share, effective March 23, 2022 (the "Conversion Date"). On March 18, 2022, the closing price of the common shares of the Company on the New York Stock Exchange ("NYSE") was $104.91, marking the 20th trading day in the previous 30 trading days that the closing price of the common shares of the Company exceeded 130% of the conversion price, triggering the Company's right under the certificate of designation for the convertible preference shares, at its option, to mandatorily convert the convertible preference shares. The conversion price adjusted from $78.1322, per Note 24 - Equity included in the Company's 2021 Annual Report on Form 10-K, to $77.8482 on February 16, 2022. Each convertible preference share automatically converted into 1.2846 common shares of the Company on the Conversion Date and cash was paid in lieu of fractional common shares of the Company. There were 6,898,268 convertible preference shares issued and outstanding prior to the conversion, which resulted in the issuance of 8,861,515 new common shares of the Company. Additionally, in the first quarter of 2022 prior to the conversion, 1,415 convertible preference shares were voluntarily converted by preference shareholders into 1,816 common shares. As a result of the conversions, no convertible preference shares were issued or outstanding as of June 30, 2022, and all rights of the former holders of the convertible preference shares terminated, as of March 23, 2022. Dividends on the convertible preference shares ceased to accrue on the Conversion Date. Accordingly, holders of the convertible preference shares were not entitled to receive the $1.21875 per share dividend declared by the Company in respect of the convertible preference shares on February 23, 2022 and payable to holders of record on May 15, 2022. Following the conversion, holders of the convertible preference shares as of the Conversion Date were entitled to receive the $0.525 per share dividend declared by the Company with respect to the common shares on February 23, 2022, but only to the extent such holder remained a holder of record of common shares of the Company on May 19, 2022. Dividends on common shares — On May 12, 2022, Bunge announced that the Company's Board of Directors had declared a dividend of $0.625 per common share, payable on September 2, 2022 to shareholders of record on August 19, 2022. The $0.625 per common share dividend represents a $0.10, or 19%, increase from the Company's previous quarterly cash dividend of $0.525. During the six months ended June 30, 2022, the Company's Board of Directors declared total dividends on common shares of $1.15 per common share. Accumulated other comprehensive income (loss) attributable to Bunge — The following table summarizes the balances of related after-tax components of Accumulated other comprehensive income (loss) attributable to Bunge: (US$ in millions) Foreign Exchange Deferred Pension and Other Accumulated Balance, April 1, 2022 $ (5,697) $ (373) $ (143) $ (6,213) Other comprehensive income (loss) before reclassifications (265) 47 — (218) Amount reclassified from accumulated other comprehensive income (loss) — (5) — (5) Balance, June 30, 2022 $ (5,962) $ (331) $ (143) $ (6,436) (US$ in millions) Foreign Exchange Deferred Pension and Other Accumulated Balance, April 1, 2021 $ (6,092) $ (218) $ (174) $ (6,484) Other comprehensive income (loss) before reclassifications 321 (92) (2) 227 Amount reclassified from accumulated other comprehensive income (loss) — (1) — (1) Balance, June 30, 2021 $ (5,771) $ (311) $ (176) $ (6,258) (US$ in millions) Foreign Exchange Deferred Pension and Other Accumulated Balance, January 1, 2022 $ (6,093) $ (254) $ (124) $ (6,471) Other comprehensive income (loss) before reclassifications 131 (70) — 61 Amount reclassified from accumulated other comprehensive income (loss) (1) — (7) (19) (26) Balance, June 30, 2022 $ (5,962) $ (331) $ (143) $ (6,436) (1) On February 28, 2022, the Company, together with plan participants and related employee unions, agreed to the transition of one of the Company's international defined benefit pension plans to a multi-employer pension plan. Following the transition, the Company accounts for the multi-employer plan similar to a defined contribution plan, resulting in full settlement of the related defined benefit plan obligations. In connection with the settlement, during the six months ended June 30, 2022, the Company reclassified $27 million (net of $10 million tax expense) in unamortized actuarial gains from Accumulated other comprehensive income (loss), of which $19 million was attributable to Bunge (net of $7 million in tax expense), and $8 million was attributable to redeemable non-controlling interests (net of $3 million in tax expense). (US$ in millions) Foreign Exchange Deferred Pension and Other Accumulated Balance, January 1, 2021 $ (5,857) $ (215) $ (174) $ (6,246) Other comprehensive income (loss) before reclassifications 86 (94) (2) (10) Amount reclassified from accumulated other comprehensive income (loss) — (2) — (2) Balance, June 30, 2021 $ (5,771) $ (311) $ (176) $ (6,258) |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE The following table sets forth the computation of basic and diluted earnings per common share. Three Months Ended Six Months Ended (US$ in millions, except for share data) 2022 2021 2022 2021 Net income (loss) $ 225 $ 369 $ 921 $ 1,286 Net (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests (19) (7) (27) (92) Net income (loss) attributable to Bunge $ 206 $ 362 $ 894 $ 1,194 Convertible preference share dividends (1) — (9) — (17) Net income (loss) available to Bunge common shareholders - Basic $ 206 $ 353 $ 894 $ 1,177 Add back convertible preference share dividends — 9 — 17 Net income (loss) available to Bunge common shareholders - Diluted $ 206 $ 362 $ 894 $ 1,194 Weighted-average number of common shares outstanding: Basic 151,799,677 141,536,775 147,183,925 140,942,885 Effect of dilutive shares: —stock options and awards (2) 2,273,037 2,386,791 2,687,006 2,397,053 —convertible preference shares (1) — 8,756,388 3,966,347 8,756,388 Diluted 154,072,714 152,679,954 153,837,278 152,096,326 Earnings per common share: Net income (loss) attributable to Bunge common shareholders—basic $ 1.36 $ 2.50 $ 6.08 $ 8.35 Net income (loss) attributable to Bunge common shareholders—diluted $ 1.34 $ 2.37 $ 5.81 $ 7.85 (1) Effective March 23, 2022 (the "Conversion Date"), in accordance with the terms of the certificate of designation governing the convertible preference shares, all of the Company's issued and outstanding convertible preference shares were automatically converted into 1.2846 common shares of the Company, par value $0.01 per share. As a result of this conversion, dividends on the convertible preference shares ceased to accrue on the Conversion Date. Accordingly, holders of the convertible preference shares were not entitled to receive the $1.21875 per share dividend declared by the Company in respect of the convertible preference shares on February 23, 2022 and payable to holders of record on May 15, 2022, and no convertible preference shares were issued or outstanding as of June 30, 2022. Refer to Note 19 - Equity for further information. (2) There were no anti-dilutive outstanding stock options and contingently issuable restricted stock units excluded from the weighted-average number of common shares outstanding for the three month periods ended June 30, 2022 or 2021 . The weighted-average common shares outstanding-diluted exclude approximately zero and 2 million stock options and contingently issuable restricted stock units, which were not dilutive and not included in the computation of earnings per share, for the six months ended June 30, 2022 and 2021, respectively. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company's operations are organized, managed, and classified into four reportable segments - Agribusiness, Refined and Specialty Oils, Milling, and Sugar and Bioenergy, based upon their similar economic characteristics, products and services offered, production processes, types and classes of customer, and distribution methods. The Company’s remaining operations are not reportable segments, as defined by the applicable accounting standard, and are classified as Corporate and Other. The Agribusiness reportable segment is characterized by both inputs and outputs being agricultural commodities and thus high volume and low margin. The Refined and Specialty Oils reportable segment involves the processing, production, and marketing of products derived from vegetable oils. The Milling reportable segment involves the processing, production, and marketing of products derived primarily from wheat and corn. The Sugar and Bioenergy reportable segment primarily comprises the net earnings in the Company’s 50% interest in BP Bunge Bioenergia, a joint venture with BP p.l.c. ("BP"). Corporate and Other includes salaries and overhead for corporate functions that are not allocated to the Company’s individual reporting segments because the operating performance of each reporting segment is evaluated by the Company's chief operating decision maker exclusive of these items, as well as certain other activities, including Bunge Ventures, as well as the Company's captive insurance activities, securitization program, and certain income tax assets and liabilities. Transfers between segments are generally valued at market. Segment revenues generated from these transfers are shown in the following table as “Inter-segment revenues.” Three Months Ended June 30, 2022 (US$ in millions) Agribusiness Refined and Specialty Oils Milling Sugar and Corporate and Other Eliminations Total Net sales to external customers $ 12,747 $ 4,445 $ 677 $ 57 $ 7 $ — $ 17,933 Inter–segment revenues 2,892 86 92 — — (3,070) — Cost of goods sold (12,431) (4,120) (551) (55) (4) — (17,161) Gross profit 316 325 126 2 3 — 772 Selling, general and administrative expenses (119) (87) (28) — (100) — (334) Foreign exchange gains (losses) (93) (8) — — (9) — (110) EBIT attributable to noncontrolling interests (1) (13) (7) (1) — 1 — (20) Other income (expense) - net (14) (5) — — 13 — (6) Income (loss) from affiliates 16 — — 4 — — 20 Total Segment EBIT (2) 93 218 97 6 (92) — 322 Total assets 18,889 4,616 1,488 376 2,050 — 27,419 Three Months Ended June 30, 2021 (US$ in millions) Agribusiness Refined and Specialty Oils Milling Sugar and Corporate and Other Eliminations Total Net sales to external customers $ 11,654 $ 3,198 $ 471 $ 68 $ — $ — $ 15,391 Inter–segment revenues 2,045 125 15 — — (2,185) — Cost of goods sold (11,244) (3,003) (414) (67) 2 — (14,726) Gross profit 410 195 57 1 2 — 665 Selling, general and administrative expenses (114) (90) (25) — (68) — (297) Foreign exchange gains (losses) 36 1 2 — (4) — 35 EBIT attributable to noncontrolling interests (1) (3) (5) — — — — (8) Other income (expense) - net 24 1 — — 10 — 35 Income (loss) from affiliates 11 — — 18 — — 29 Total Segment EBIT (2) 364 102 34 19 (60) — 459 Total assets 18,046 4,061 1,362 171 1,445 — 25,085 Six Months Ended June 30, 2022 (US$ in millions) Agribusiness Refined and Specialty Oils Milling Sugar and Corporate and Other Eliminations Total Net sales to external customers $ 23,978 $ 8,421 $ 1,280 $ 121 $ 13 $ — $ 33,813 Inter–segment revenues 5,379 198 467 — — (6,044) — Cost of goods sold (22,798) (7,834) (1,083) (117) (5) — (31,837) Gross profit 1,180 587 197 4 8 — 1,976 Selling, general and administrative expenses (240) (176) (52) — (174) — (642) Foreign exchange gains (losses) (84) (8) 3 — (9) — (98) EBIT attributable to noncontrolling interests (1) (17) (4) (1) — (11) — (33) Other income (expense) - net (77) (8) — — 32 — (53) Income (loss) from affiliates 30 — — 36 (1) — 65 Total Segment EBIT (2) 792 391 147 40 (155) — 1,215 Total assets 18,889 4,616 1,488 376 2,050 — 27,419 Six Months Ended June 30, 2021 (US$ in millions) Agribusiness Edible Milling Sugar and Corporate and Other Eliminations Total Net sales to external customers $ 21,444 $ 5,924 $ 862 $ 122 $ — $ — $ 28,352 Inter–segment revenues 3,511 227 108 — — (3,846) — Cost of goods sold (20,149) (5,494) (771) (120) (6) — (26,540) Gross profit 1,295 430 91 2 (6) — 1,812 Selling, general and administrative expenses (194) (176) (48) — (150) — (568) Foreign exchange gains (losses) 29 2 — — (6) — 25 EBIT attributable to noncontrolling interests (1) (11) (83) (1) — — — (95) Other income (expense) - net 46 237 — — 15 — 298 Income (loss) from affiliates 35 — — 37 1 — 73 Total Segment EBIT (2) 1,200 410 42 39 (146) — 1,545 Total assets 18,046 4,061 1,362 171 1,445 — 25,085 (1) Include noncontrolling interests' share of interest and tax with EBIT attributable to noncontrolling interests in order to reconcile to consolidated Net (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests. (2) Total segment earnings before interest and taxes ("EBIT") is an operating performance measure used by Bunge’s management to evaluate segment operating activities. Bunge’s management believes Total Segment EBIT is a useful measure of operating profitability, since the measure allows for an evaluation of the performance of its segments without regard to its financing methods or capital structure. In addition, Total Segment EBIT is a financial measure that is widely used by analysts and investors in Bunge’s industry. 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) attributable to Bunge in the table below. A reconciliation of Net income (loss) attributable to Bunge to Total Segment EBIT follows: Three Months Ended Six Months Ended (US$ in millions) 2022 2021 2022 2021 Net income (loss) attributable to Bunge $ 206 $ 362 $ 894 $ 1,194 Interest income (11) (6) (20) (15) Interest expense 92 54 203 127 Income tax expense (benefit) 36 50 144 242 Noncontrolling interests' share of interest and tax (1) (1) (6) (3) Total Segment EBIT from continuing operations $ 322 $ 459 $ 1,215 $ 1,545 The Company’s Net sales comprise sales from commodity contracts accounted for under ASC 815, Derivatives and Hedging (ASC 815) and sales of other products and services accounted for under ASC 606, Revenue from Contracts with Customers (ASC 606). The following tables provide a disaggregation of Net sales to external customers between sales from contracts with customers and sales from other arrangements: Three Months Ended June 30, 2022 (US$ in millions) Agribusiness Refined and Specialty Oils Milling Sugar and Corporate and Other Total Sales from other arrangements $ 11,929 $ 379 $ 47 $ 56 $ — $ 12,411 Sales from contracts with customers 818 4,066 630 1 7 5,522 Net sales to external customers $ 12,747 $ 4,445 $ 677 $ 57 $ 7 $ 17,933 Three Months Ended June 30, 2021 (US$ in millions) Agribusiness Refined and Specialty Oils Milling Sugar and Corporate and Other Total Sales from other arrangements $ 11,128 $ 243 $ 6 $ 67 $ — $ 11,444 Sales from contracts with customers 526 2,955 465 1 — 3,947 Net sales to external customers $ 11,654 $ 3,198 $ 471 $ 68 $ — $ 15,391 Six Months Ended June 30, 2022 (US$ in millions) Agribusiness Refined and Specialty Oils Milling Sugar and Corporate and Other Total Sales from other arrangements $ 22,496 $ 630 $ 109 $ 119 $ — $ 23,354 Sales from contracts with customers 1,482 7,791 1,171 2 13 10,459 Net sales to external customers $ 23,978 $ 8,421 $ 1,280 $ 121 $ 13 $ 33,813 Six Months Ended June 30, 2021 (US$ in millions) Agribusiness Refined and Specialty Oils Milling Sugar and Corporate and Other Total Sales from other arrangements $ 20,486 $ 429 $ — $ 120 $ — $ 21,035 Sales from contracts with customers 958 5,495 862 2 — 7,317 Net sales to external customers $ 21,444 $ 5,924 $ 862 $ 122 $ — $ 28,352 |
BASIS OF PRESENTATION, PRINCI_2
BASIS OF PRESENTATION, PRINCIPLES OF CONSOLIDATION, AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION, PRINCIPLES OF CONSOLIDATION, AND SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION, PRINCIPLES OF CONSOLIDATION, AND SIGNIFICANT ACCOUNTING POLICIESThe accompanying unaudited condensed consolidated financial statements include the accounts of Bunge Limited ("Bunge" or the "Company"), its subsidiaries and variable interest entities ("VIEs") in which Bunge is considered to be the primary beneficiary, and as a result, include the assets, liabilities, revenues and expenses of all entities over which Bunge has a controlling financial interest. The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X under the Securities Exchange Act of 1934, as amended ("Exchange Act"). Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to Securities and Exchange Commission ("SEC") rules. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation have been included. The condensed consolidated balance sheet at December 31, 2021 has been derived from Bunge’s audited consolidated financial statements at that date. Operating results for the six months ended June 30, 2022 are not necessarily indicative of the results to be expected for the year ending December 31, 2022. The financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2021, forming part of Bunge’s 2021 Annual Report on Form 10-K filed with the SEC on February 24, 2022. |
Cash, Cash Equivalents and Restricted Cash | 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. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements On January 1, 2022, the Company adopted Accounting Standards Update ("ASU") 2021-10, Government Assistance (Topic 832) - Disclosures by Business Entities About Government Assistance , which requires annual disclosures for transactions with a government authority that are accounted for by applying a grant or contribution accounting model by analogy. The guidance is effective for annual periods beginning after December 15, 2021. This guidance will be applied prospectively to all transactions within the scope of the standard that are reflected in financial statements at the date of initial application and new transactions that are entered into after the date of initial application. As this standard requires annual disclosure only, the Company continues to identify its transactions that are subject to this guidance and evaluate the impact of this standard on its condensed consolidated financial statements. On January 1, 2022, the Company adopted ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40), which simplifies the accounting for convertible instruments and contracts in an entity’s own equity. The guidance also addresses how convertible instruments are accounted for in the diluted earnings per share calculation and requires enhanced disclosures about the terms of convertible instruments and contracts in an entity’s own equity. This guidance will be applied prospectively to modifications or exchanges occurring on or after the effective date of the amendments. The adoption of this guidance did not have a material impact on Bunge's condensed consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting , with subsequent updates through ASU 2021-01, which collectively provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting, to ease the financial reporting burden related to the expected market transition from the London Interbank Offered Rate ("LIBOR") and other interbank offered rates to alternative reference rates. The guidance was effective upon issuance, and per the guidance, the Company is applying it prospectively to all eligible contract modifications through December 31, 2022. In March 2021, the United Kingdom's Financial Conduct Authority ("FCA"), responsible for regulating LIBOR, announced that most LIBOR settings were to be discontinued after December 31, 2021, except for certain USD LIBOR settings, which will continue through June 30, 2023. In September 2021, the FCA further announced that it will require the LIBOR benchmark administrator to publish sterling and Japanese yen LIBOR settings under a synthetic methodology based on term risk-free rates for the duration of 2022. These synthetic LIBOR settings will be available only for use in legacy contracts and are not for use in new business. Bunge has utilized the relief provided by Topic 848 to ensure financial reporting results reflect the intended continuation of such contracts and arrangements during the period of the market-wide transition to alternative reference rates. The expedients allow an eligible modified contract to be accounted for and presented as a continuation of the existing contract. The Company has identified its LIBOR-based contracts that have been, or will be, impacted by the cessation of LIBOR. The Company continues to actively work with counterparties to incorporate fallback language in negotiated contracts, in addition to incorporating non-LIBOR reference rate and fallback language, when applicable, in new contracts. The modification of contracts is ongoing; however, as of June 30, 2022, the adoption of this guidance has not had a material impact on Bunge's condensed consolidated financial statements. |
BASIS OF PRESENTATION, PRINCI_3
BASIS OF PRESENTATION, PRINCIPLES OF CONSOLIDATION, AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Restricted Cash | The following table provides a reconciliation of cash and cash equivalents, and restricted cash, reported within the condensed consolidated balance sheets, which sum to the total of the same such amounts shown in the condensed consolidated statement of cash flows. (US$ in millions) June 30, 2022 June 30, 2021 Cash and cash equivalents $ 818 $ 464 Restricted cash included in other current assets 5 40 Total $ 823 $ 504 |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash and cash equivalents, and restricted cash, reported within the condensed consolidated balance sheets, which sum to the total of the same such amounts shown in the condensed consolidated statement of cash flows. (US$ in millions) June 30, 2022 June 30, 2021 Cash and cash equivalents $ 818 $ 464 Restricted cash included in other current assets 5 40 Total $ 823 $ 504 |
UKRAINE-RUSSIA WAR (Tables)
UKRAINE-RUSSIA WAR (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Schedule of Assets and Liabilities held in Ukraine and Russia | The condensed consolidated balance sheet related to the Company’s Ukrainian operations as of June 30, 2022 consists of the following: (US$ in millions) June 30, Current assets: Cash and cash equivalents $ 1 Trade accounts receivable (less allowances of zero) 5 Inventories 70 Other current assets 84 Total current assets 160 Property, plant and equipment, net 140 Other non-current assets 50 Total assets $ 350 Current liabilities: Trade accounts payable and accrued liabilities $ 15 Short-term debt 218 Other current liabilities 3 Total current liabilities 236 Non-current liabilities 4 Total liabilities $ 240 (US$ in millions) June 30, Current assets: Cash and cash equivalents $ 12 Trade accounts receivable (less allowances of zero) 23 Inventories 51 Other current assets 20 Total current assets 106 Property, plant and equipment, net 32 Other non-current assets 19 Total assets $ 157 Current liabilities: Trade accounts payable and accrued liabilities $ 11 Other current liabilities 9 Total current liabilities 20 Total liabilities $ 20 |
ACQUISITIONS AND DISPOSITIONS (
ACQUISITIONS AND DISPOSITIONS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets and Liabilities Held for Sale | The following table presents the disposal group's major classes of assets and liabilities included in Assets held for sale and Liabilities held for sale, respectively, on the condensed consolidated balance sheet at June 30, 2022, reported under the Milling segment: (US$ in millions) June 30, Trade accounts receivable $ 77 Inventories 141 Other current assets 14 Property, plant and equipment, net 162 Operating lease assets 2 Goodwill & Other intangible assets, net 86 Impairment reserve (170) Assets held for sale (1) (2) $ 312 Trade accounts payable $ 41 Current operating lease obligations 2 Other current liabilities 18 Liabilities held for sale (2) $ 61 (1) Assets held for sale excludes approximately $152 million of cumulative translation adjustments on non-current assets included in the Mexico wheat milling disposal group. (2) In addition to the disposition discussed above, as of June 30, 2022 the Company's reported Assets held for sale include $5 million in relation to certain other insignificant dispositions. There are no Liabilities held for sale related to these transactions as of June 30, 2022. |
TRADE ACCOUNTS RECEIVABLE AND_2
TRADE ACCOUNTS RECEIVABLE AND TRADE RECEIVABLES SECURITIZATION PROGRAM (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Transfers and Servicing [Abstract] | |
Changes to the Allowance for Lifetime Expected Credit Losses Related to Accounts Receivable | Changes to the allowance for lifetime expected credit losses related to trade accounts receivable were as follows: Six Months Ended June 30, 2022 Rollforward of the Allowance for Credit Losses (US$ in millions) Short-term Long-term (1) Total Allowance as of January 1, 2022 $ 85 $ 47 $ 132 Current period provisions 27 1 28 Recoveries (19) — (19) Write-offs charged against the allowance (10) (3) (13) Foreign exchange translation differences (1) 2 1 Allowance as of June 30, 2022 $ 82 $ 47 $ 129 (1) Long-term portion of the allowance for credit losses included in Other non-current assets. Six Months Ended June 30, 2021 Rollforward of the Allowance for Credit Losses (US$ in millions) Short-term Long-term (1) Total Allowance as of January 1, 2021 $ 93 $ 51 $ 144 Current period provisions 17 — 17 Recoveries (13) (1) (14) Write-offs charged against the allowance (2) — (2) Foreign exchange translation differences (1) 1 — Allowance as of June 30, 2021 $ 94 $ 51 $ 145 (1) Long-term portion of the allowance for credit losses included in Other non-current assets. |
Assets that Continue to be Recognized, Transferred Financial Assets and Other Financial Assets Managed Together | (US$ in millions) June 30, December 31, Receivables sold that were derecognized from Bunge's condensed consolidated balance sheet $ 1,732 $ 1,426 Deferred purchase price included in Other current assets (1) $ 628 $ 496 (1) Bunge's risk of loss following the sale of the trade receivables is limited to the deferred purchase price ("DPP"), included in Other current assets in the condensed consolidated balance sheets (see Note 7 - Other Current Assets ). The DPP will be repaid in cash as receivables are collected, generally within 30 days of collection. Provisions for delinquencies and credit losses on trade receivables sold under the Program were $4 million and $5 million at June 30, 2022 and December 31, 2021, respectively. Six Months Ended (US$ in millions) 2022 2021 Gross receivables sold $ 8,585 $ 6,915 Proceeds received in cash related to transfer of receivables $ 7,876 $ 6,423 Cash collections from customers on receivables previously sold $ 8,372 $ 6,545 Discounts related to gross receivables sold included in Selling, general and administrative expense $ 6 $ 4 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories by Segment | Inventories by segment are presented below. Readily marketable inventories ("RMI") are agricultural commodity inventories, such as soybeans, soybean meal, soybean oil, palm oil, corn, and wheat carried at fair value because of their commodity characteristics, widely available markets, and international pricing mechanisms. The Company engages in trading and distribution, or merchandising activities, and part of RMI can be attributable to such activities and is not held for processing. All other inventories are carried at lower of cost or net realizable value. (US$ in millions) June 30, December 31, Agribusiness (1) $ 8,609 $ 6,800 Refined and Specialty Oils (2) 1,585 1,310 Milling (3) 283 319 Corporate and Other 4 2 Total $ 10,481 $ 8,431 (1) Includes RMI of $8,015 million and $6,490 million at June 30, 2022 and December 31, 2021, respectively. Of these amounts, $6,616 million and $4,857 million can be attributable to merchandising activities at June 30, 2022 and December 31, 2021, respectively. (2) Includes RMI of $320 million and $257 million at June 30, 2022 and December 31, 2021, respectively. (3) Includes RMI of $43 million and $122 million at June 30, 2022 and December 31, 2021, respectively. |
OTHER CURRENT ASSETS (Tables)
OTHER CURRENT ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Current Assets | Other current assets consist of the following: (US$ in millions) June 30, December 31, Unrealized gains on derivative contracts, at fair value $ 2,479 $ 1,630 Prepaid commodity purchase contracts (1) 365 186 Secured advances to suppliers, net (2) 192 375 Recoverable taxes, net 375 347 Margin deposits 639 569 Deferred purchase price receivable (3) 628 496 Marketable securities and other short-term investments (4) 172 520 Income taxes receivable 114 47 Prepaid expenses 434 380 Restricted cash 5 3 Other 286 198 Total $ 5,689 $ 4,751 (1) Prepaid commodity purchase contracts represent advance payments against contracts for future deliveries of specified quantities of agricultural commodities. (2) The Company provides cash advances to suppliers, primarily Brazilian soybean farmers, to finance a portion of the suppliers’ production costs. The Company does not bear any of the costs or operational risks associated with the related growing activities. The advances are largely collateralized by future crops and physical assets of the suppliers, carry a local market interest rate, and settle when the farmers' crops are harvested and sold. The secured advances to farmers are reported net of allowances of $3 million at June 30, 2022 and $3 million at December 31, 2021. Interest earned on secured advances to suppliers of $6 million and $4 million for the three months ended June 30, 2022 and 2021, respectively, and $12 million and $13 million for the six months ended June 30, 2022 and 2021, is included in Net sales in the condensed consolidated statements of income. (3) Deferred purchase price receivable represents additional credit support for the investment conduits in the Company’s trade receivables securitization program (see Note 5 - Trade Accounts Receivable and Trade Receivable Securitization Program ). (4) Marketable securities and other short-term investments - The Company invests in foreign government securities, corporate debt securities, deposits, equity securities, and other securities. The following is a summary of amounts recorded in the Company's condensed consolidated balance sheets as marketable securities and other short-term investments. |
Summary of Marketable Securities and Other Short-Term Investments | (US$ in millions) June 30, December 31, Foreign government securities $ 83 $ 261 Corporate debt securities 27 158 Equity securities 25 60 Other 37 41 Total $ 172 $ 520 |
OTHER NON-CURRENT ASSETS (Table
OTHER NON-CURRENT ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Other Assets, Noncurrent [Abstract] | |
Schedule of Other Non-Current Assets | Other non-current assets consist of the following: (US$ in millions) June 30, December 31, Recoverable taxes, net (1) $ 61 $ 66 Judicial deposits (1) 105 89 Other long-term receivables, net 5 11 Income taxes receivable 140 139 Long-term investments (2) 244 196 Affiliate loans receivable 14 16 Long-term receivables from farmers in Brazil, net (1) 30 33 Unrealized gains on derivative contracts, at fair value 8 49 Other 120 120 Total $ 727 $ 719 (1) A significant portion of these non-current assets arise from the Company’s Brazilian operations and their realization could take several years. (2) As of |
Summary of Gross Investment in Long-Term Receivables and the Related Allowance Amounts from Brazilian Farmers | The table below summarizes the Company’s recorded investment in long-term receivables from farmers in Brazil and the related allowance amounts. June 30, 2022 December 31, 2021 (US$ in millions) Recorded Allowance Recorded Allowance For which an allowance has been provided: Legal collection process (1) $ 41 $ 34 $ 42 $ 35 Renegotiated amounts 1 3 3 1 For which no allowance has been provided: Legal collection process (1) 20 — 20 — Renegotiated amounts (2) 5 — 2 — Other long-term receivables (3) — — 2 — Total $ 67 $ 37 $ 69 $ 36 (1) All amounts in legal collection processes are considered past due upon initiation of legal action. (2) These renegotiated amounts are current on repayment terms. (3) New advances expected to be realized through farmer commitments to deliver agricultural commodities in crop periods greater than twelve months from the balance sheet date. Such advances are reclassified from non-current assets to current assets in later periods depending on the expected date of their realization. |
Summary of the Activity in the Allowance for Doubtful Accounts Related to Long-Term Receivables from Brazilian Farmers | The table below summarizes the activity in the allowance for doubtful accounts related to long-term receivables from farmers in Brazil. Six Months Ended (US$ in millions) 2022 2021 Beginning balance $ 36 $ 63 Bad debt provisions 1 3 Recoveries (3) (3) Write-offs — (4) Transfers — — Foreign exchange translation 3 2 Ending balance $ 37 $ 61 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | As such these VIEs have been excluded from the below table: (US$ in millions) June 30, Current assets: Cash and cash equivalents $ 369 Trade accounts receivable 42 Inventories 56 Other current assets 53 Total current assets 520 Property, plant and equipment, net 56 Total assets $ 576 Current liabilities: Trade accounts payable and accrued liabilities $ 45 Other current liabilities 53 Total current liabilities 98 Total liabilities $ 98 |
OTHER CURRENT LIABILITIES (Tabl
OTHER CURRENT LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Liabilities | Other current liabilities consist of the following: (US$ in millions) June 30, December 31, Unrealized losses on derivative contracts, at fair value $ 2,307 $ 1,713 Accrued liabilities 618 689 Advances on sales (1) 378 437 Income tax payable 83 168 Other 454 418 Total $ 3,840 $ 3,425 (1) The Company records Advances on sales when cash payments are received in advance of the Company’s performance and recognizes revenue once the related performance obligation is completed. Advances on sales are impacted by the seasonality of Bunge's business, including the timing of harvests in the northern and southern hemispheres, and amounts at each balance sheet date will generally be recognized in earnings within twelve months or less. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Financial Instruments And Fair Value Measurements [Abstract] | |
Hierarchy Levels that may be Used to Measure Fair Value | The fair value standard describes three levels within its hierarchy that may be used to measure fair value. Level Description Financial Instrument (Assets / Liabilities) Level 1 Quoted prices (unadjusted) in active markets for identical assets or liabilities. Exchange traded derivative contracts. Marketable securities in active markets. Level 2 Observable inputs, including adjusted Level 1 quotes, quoted prices for similar assets or liabilities, quoted prices in markets that are less active than traded exchanges and other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Exchange traded derivative contracts (less liquid markets). Level 3 Unobservable inputs that are supported by little or no market activity and that are a significant component of the fair value of the assets or liabilities. Assets and liabilities whose value is determined using proprietary pricing models, discounted cash flow methodologies or similar techniques. |
Schedule of Assets and Liabilities Accounted for at Fair Value on a Recurring Basis | The following table sets forth, by level, the Company’s assets and liabilities that were accounted for at fair value on a recurring basis. Fair Value Measurements at Reporting Date June 30, 2022 December 31, 2021 (US$ in millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Readily marketable inventories (Note 6) $ — $ 7,437 $ 941 $ 8,378 $ — $ 6,664 $ 205 $ 6,869 Trade accounts receivable (1) — 1 — 1 — 1 — 1 Unrealized gain on derivative contracts (2) : Interest rate — 5 — 5 — 49 — 49 Foreign exchange — 597 — 597 — 340 — 340 Commodities 133 1,311 73 1,517 63 1,055 34 1,152 Freight 71 3 — 74 79 5 — 84 Energy 277 13 — 290 44 4 — 48 Credit — 5 — 5 — 6 — 6 Equity — — — — 1 — — 1 Other (3) 40 44 66 150 91 406 — 497 Total assets $ 521 $ 9,416 $ 1,080 $ 11,017 $ 278 $ 8,530 $ 239 $ 9,047 Liabilities: Trade accounts payable (1) $ — $ 846 $ 271 $ 1,117 $ — $ 545 $ 23 $ 568 Unrealized loss on derivative contracts (4) : Interest rate — 241 — 241 — 47 — 47 Foreign exchange — 531 — 531 — 309 — 309 Commodities 161 1,203 63 1,427 98 1,051 65 1,214 Freight 120 — — 120 162 — — 162 Energy 229 — — 229 29 1 — 30 Credit — — — — — 1 — 1 Total liabilities $ 510 $ 2,821 $ 334 $ 3,665 $ 289 $ 1,954 $ 88 $ 2,331 (1) These receivables and payables are hybrid financial instruments for which Bunge has elected the fair value option as they are derived from purchases and sales of agricultural commodity products in the normal course of business. (2) Unrealized gains on derivative contracts are generally included in Other current assets. There were $8 million and $49 million included in Other non-current assets at June 30, 2022 and December 31, 2021, respectively. There were $1 million and $2 million included in Assets held for sale at June 30, 2022 and December 31, 2021, respectively. (3) Other includes the fair values of marketable securities and investments in Other current assets and Other non-current assets. |
Reconciliation of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) | The tables below present reconciliations for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three and six months ended June 30, 2022 and 2021. These instruments were valued using pricing models that management believes reflect the assumptions that would be used by a marketplace participant. Three Months Ended June 30, 2022 (US$ in millions) Readily Derivatives, Trade Other (2) Total Balance, April 1, 2022 $ 1,131 $ 27 $ (447) $ 70 $ 781 Total gains and losses (realized/unrealized) included in cost of goods sold (1) 35 (9) 18 — 44 Total gains and losses (realized/unrealized) included in Other income (expense) – net — — — (5) (5) Purchases 856 — (80) — 776 Sales (1,310) — — — (1,310) Issuances — — — — — Settlements — — 52 — 52 Transfers into Level 3 451 7 (2) — 456 Transfers out of Level 3 (131) (15) 146 — — Translation adjustment (91) — 42 1 (48) Balance, June 30, 2022 $ 941 $ 10 $ (271) $ 66 $ 746 (1) Readily marketable inventories, derivatives, net and trade accounts payable, include gains/(losses) of $84 million, $(25) million and $17 million, respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at June 30, 2022. (2) Comprises the fair values of marketable securities and investments in Other current assets. Included within Other income (expense) - net of the condensed consolidated statements of income are $5 million in losses related to securities still held at June 30, 2022. Three Months Ended June 30, 2021 (US$ in millions) Readily Derivatives, Trade Total Balance, April 1, 2021 $ 629 $ (68) $ (213) $ 348 Total gains and losses (realized/unrealized) included in cost of goods sold (1) 15 132 5 152 Purchases 534 — (39) 495 Sales (1,094) — — (1,094) Issuances — — — — Settlements — (83) — (83) Transfers into Level 3 454 (1) (30) 423 Transfers out of Level 3 (46) — 185 139 Balance, June 30, 2021 $ 492 $ (20) $ (92) $ 380 (1) Readily marketable inventories, derivatives, net and trade accounts payable, includes gains/(losses) of $139 million, $91 million and $5 million, respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at June 30, 2021. Six Months Ended June 30, 2022 (US$ in millions) Readily Derivatives, Trade Other (2) Total Balance, January 1, 2022 $ 205 $ (31) $ (23) $ — $ 151 Total gains and losses (realized/unrealized) included in cost of goods sold (1) 170 28 33 — 231 Total gains and losses (realized/unrealized) included in Other income (expense) - net — — — (69) (69) Purchases 2,102 — (446) — 1,656 Sales (2,687) — — — (2,687) Issuances — — — — — Settlements — — 325 (84) 241 Transfers into Level 3 1,415 28 (347) 218 1,314 Transfers out of Level 3 (178) (14) 146 — (46) Translation adjustment (86) (1) 41 1 (45) Balance, June 30, 2022 $ 941 $ 10 $ (271) $ 66 $ 746 (1) Readily marketable inventories, derivatives, net and trade accounts payable, includes gains/(losses) of $167 million, $26 million and $27 million, respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at June 30, 2022. (2) Comprises the fair values of marketable securities and investments in Other current assets. Included within Other income (expense) - net of the condensed consolidated statements of income are $37 million in losses related to securities still held at June 30, 2022. Six Months Ended June 30, 2021 (US$ in millions) Readily Derivatives, Trade Total Balance, January 1, 2021 $ 208 $ (8) $ (9) $ 191 Total gains and losses (realized/unrealized) included in cost of goods sold (1) 269 20 8 297 Purchases 1,074 3 (224) 853 Sales (1,856) — — (1,856) Issuances — (2) — (2) Settlements — (49) — (49) Transfers into Level 3 900 (26) (189) 685 Transfers out of Level 3 (103) 42 322 261 Balance, June 30, 2021 $ 492 $ (20) $ (92) $ 380 (1) Readily marketable inventories, derivatives, net and trade accounts payable, includes gains/(losses) of $263 million, $(29) million and $8 million, respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at June 30, 2021. |
Reconciliation of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) | The tables below present reconciliations for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three and six months ended June 30, 2022 and 2021. These instruments were valued using pricing models that management believes reflect the assumptions that would be used by a marketplace participant. Three Months Ended June 30, 2022 (US$ in millions) Readily Derivatives, Trade Other (2) Total Balance, April 1, 2022 $ 1,131 $ 27 $ (447) $ 70 $ 781 Total gains and losses (realized/unrealized) included in cost of goods sold (1) 35 (9) 18 — 44 Total gains and losses (realized/unrealized) included in Other income (expense) – net — — — (5) (5) Purchases 856 — (80) — 776 Sales (1,310) — — — (1,310) Issuances — — — — — Settlements — — 52 — 52 Transfers into Level 3 451 7 (2) — 456 Transfers out of Level 3 (131) (15) 146 — — Translation adjustment (91) — 42 1 (48) Balance, June 30, 2022 $ 941 $ 10 $ (271) $ 66 $ 746 (1) Readily marketable inventories, derivatives, net and trade accounts payable, include gains/(losses) of $84 million, $(25) million and $17 million, respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at June 30, 2022. (2) Comprises the fair values of marketable securities and investments in Other current assets. Included within Other income (expense) - net of the condensed consolidated statements of income are $5 million in losses related to securities still held at June 30, 2022. Three Months Ended June 30, 2021 (US$ in millions) Readily Derivatives, Trade Total Balance, April 1, 2021 $ 629 $ (68) $ (213) $ 348 Total gains and losses (realized/unrealized) included in cost of goods sold (1) 15 132 5 152 Purchases 534 — (39) 495 Sales (1,094) — — (1,094) Issuances — — — — Settlements — (83) — (83) Transfers into Level 3 454 (1) (30) 423 Transfers out of Level 3 (46) — 185 139 Balance, June 30, 2021 $ 492 $ (20) $ (92) $ 380 (1) Readily marketable inventories, derivatives, net and trade accounts payable, includes gains/(losses) of $139 million, $91 million and $5 million, respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at June 30, 2021. Six Months Ended June 30, 2022 (US$ in millions) Readily Derivatives, Trade Other (2) Total Balance, January 1, 2022 $ 205 $ (31) $ (23) $ — $ 151 Total gains and losses (realized/unrealized) included in cost of goods sold (1) 170 28 33 — 231 Total gains and losses (realized/unrealized) included in Other income (expense) - net — — — (69) (69) Purchases 2,102 — (446) — 1,656 Sales (2,687) — — — (2,687) Issuances — — — — — Settlements — — 325 (84) 241 Transfers into Level 3 1,415 28 (347) 218 1,314 Transfers out of Level 3 (178) (14) 146 — (46) Translation adjustment (86) (1) 41 1 (45) Balance, June 30, 2022 $ 941 $ 10 $ (271) $ 66 $ 746 (1) Readily marketable inventories, derivatives, net and trade accounts payable, includes gains/(losses) of $167 million, $26 million and $27 million, respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at June 30, 2022. (2) Comprises the fair values of marketable securities and investments in Other current assets. Included within Other income (expense) - net of the condensed consolidated statements of income are $37 million in losses related to securities still held at June 30, 2022. Six Months Ended June 30, 2021 (US$ in millions) Readily Derivatives, Trade Total Balance, January 1, 2021 $ 208 $ (8) $ (9) $ 191 Total gains and losses (realized/unrealized) included in cost of goods sold (1) 269 20 8 297 Purchases 1,074 3 (224) 853 Sales (1,856) — — (1,856) Issuances — (2) — (2) Settlements — (49) — (49) Transfers into Level 3 900 (26) (189) 685 Transfers out of Level 3 (103) 42 322 261 Balance, June 30, 2021 $ 492 $ (20) $ (92) $ 380 (1) Readily marketable inventories, derivatives, net and trade accounts payable, includes gains/(losses) of $263 million, $(29) million and $8 million, respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at June 30, 2021. |
DERIVATIVE INSTRUMENTS AND HE_2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Outstanding Derivative Instruments | The notional amount is used to compute interest or other payment streams to be made under the contract and is a measure of the Company’s level of activity. The Company discloses derivative notional amounts on a gross basis. (US$ in millions) June 30, December 31, 2021 Unit of Hedging instrument type: Fair value hedges of interest rate risk Interest rate swap $ 3,831 $ 4,006 $ Notional Cumulative adjustment to long-term debt from application of hedge accounting $ (232) $ — $ Notional Carrying value of hedged debt $ 3,579 $ 3,990 $ Notional Fair value hedges of currency risk Cross currency swap $ 225 $ 267 $ Notional Carrying value of hedged debt $ 225 $ 267 $ Notional Cash flow hedges of currency risk Foreign currency forward $ 306 $ 148 $ Notional Foreign currency option $ 30 $ 60 $ Notional Net investment hedges Foreign currency forward $ 945 $ 1,020 $ Notional June 30, December 31, 2022 2021 Unit of (US$ in millions) Long (Short) Long (Short) Interest rate Swaps $ 373 $ (1,726) $ 2,924 $ (2,506) $ Notional Futures $ — $ (141) $ — $ — $ Notional Currency Forwards $ 11,476 $ (13,095) $ 12,961 $ (14,065) $ Notional Swaps $ 2,281 $ (1,799) $ 1,362 $ (1,422) $ Notional Futures $ — $ (10) $ — $ (8) $ Notional Options $ 105 $ (95) $ 88 $ (106) Delta Agricultural commodities Forwards 27,140,385 (31,127,699) 29,329,244 (34,810,969) Metric Tons Swaps — (2,272,498) 33,250 (502,652) Metric Tons Futures — (3,478,696) — (7,221,848) Metric Tons Options 300,204 — 218,106 (116,370) Metric Tons Ocean freight FFA — (14,919) — (6,713) Hire Days FFA options 372 — 548 — Hire Days Natural gas Swaps 1,046,445 — 1,764,455 — MMBtus Futures 6,759,096 — 5,147,500 — MMBtus Energy - other Swaps 491,977 (258,525) 741,307 (426,476) Metric Tons Electricity Swaps 536,325 (169,356) 670,973 (256,949) Mwh Energy - CO2 Futures 258,000 — — — Metric Tons Other Swaps and futures $ 10 $ (40) $ 20 $ (585) $ Notional |
Summary of Effect of Derivative Instruments Designated as Fair Value Hedges and Undesignated Derivative Instruments on Condensed Consolidated Statements of Income | The tables below summarize the net effect of derivative instruments and hedge accounting on the condensed consolidated statements of income for the three and six months ended June 30, 2022 and 2021. Gain (Loss) Recognized in Three Months Ended June 30, (US$ in millions) 2022 2021 Income statement classification Type of derivative Net sales Hedge accounting Foreign currency $ 5 $ 1 Cost of goods sold Economic hedges Foreign currency $ (70) $ 470 Commodities 638 (1,139) Other (1) 9 131 Total Cost of goods sold $ 577 $ (538) Interest expense Hedge accounting Interest rate $ 3 $ 7 Total Interest expense $ 3 $ 7 Foreign exchange gains (losses) Hedge accounting Foreign currency $ (25) $ 1 Economic hedges Foreign currency 57 (154) Total Foreign exchange gains (losses) $ 32 $ (153) 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 $ (4) Gains and losses on derivatives used as cash flow hedges of foreign currency risk included in other comprehensive income (loss) during the period $ 4 $ 7 Gains and losses on derivatives used as net investment hedges included in other comprehensive income (loss) during the period $ 41 $ (96) Amounts released from accumulated other comprehensive income (loss) during the period Cash flow hedge of foreign currency risk $ (5) $ (2) (1) Other includes results from freight, energy and other derivatives. Gain (Loss) Recognized in Six months ended June 30, (US$ in millions) 2022 2021 Income statement classification Type of derivative Net sales Hedge accounting Foreign currency $ 7 $ 1 Cost of goods sold Economic hedges Foreign currency $ 423 $ 185 Commodities (618) (1,736) Other (1) 90 259 Total Cost of goods sold $ (105) $ (1,292) Interest expense Hedge accounting Interest rate $ (4) $ 13 Economic hedges Interest rate 1 1 Total Interest expense $ (3) $ 14 Foreign exchange gains (losses) Hedge accounting Foreign currency $ (37) $ (17) Economic hedges Foreign currency 116 (67) Total Foreign exchange gains (losses) $ 79 $ (84) Other income (expense) Economic hedges Interest rate $ 1 $ 1 Total Other income/(expense) $ 1 $ 1 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 $ (2) Gains and losses on derivatives used as cash flow hedges of foreign currency risk included in other comprehensive income (loss) during the period $ 36 $ 3 Gains and losses on derivatives used as net investment hedges included in other comprehensive income (loss) during the period $ (108) $ (58) Amounts released from accumulated other comprehensive income (loss) during the period Cash flow hedge of foreign currency risk $ (7) $ (3) (1) Other includes results from freight, energy and other derivatives. |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Carrying Amounts and Fair Values of Long-Term Debt | The carrying amounts and fair value of long-term debt are as follows: June 30, 2022 December 31, 2021 (US$ in millions) Carrying Fair Value Carrying Fair Value Long-term debt, including current portion $ 4,365 $ 4,365 $ 5,291 $ 5,489 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Liabilities Related to General Claims and Lawsuits Included in Other Non-Current Liabilities | Included in Other non-current liabilities as of June 30, 2022 and December 31, 2021 are the following amounts related to these matters: (US$ in millions) June 30, December 31, Non-income tax claims $ 17 $ 15 Labor claims 69 72 Civil and other claims 92 95 Total $ 178 $ 182 |
Summary of Tax Examinations Against Brazilian Subsidiaries | As of June 30, 2022, the Brazilian federal and state authorities have concluded examinations of the ICMS and PIS/COFINS tax returns and have issued outstanding claims. The Company continues to evaluate the merits of each of these claims and will recognize them when loss is considered probable. The outstanding claims comprise the following: (US$ in millions) Years Examined June 30, 2022 December 31, 2021 ICMS 1990 to Present $ 235 $ 222 PIS/COFINS 2002 to Present $ 347 $ 228 |
Maximum Potential Future Payments Related to Guarantees | Bunge has issued or was a party to the following guarantees at June 30, 2022: (US$ in millions) Maximum Unconsolidated affiliates guarantee (1) $ 240 Residual value guarantee (2) 298 Other guarantees 5 Total $ 543 (1) Bunge has issued guarantees to certain financial institutions related to debt of certain of its unconsolidated affiliates. The terms of the guarantees are equal to the terms of the related financings, which have maturity dates through 2034. There are no recourse provisions or collateral that would enable Bunge to recover any amounts paid under these guarantees. In addition, certain Bunge subsidiaries have guaranteed the obligations of certain of their unconsolidated affiliates and in connection therewith have secured their guarantee obligation s through a pledge to the financial institutions of certain of their unconsolidated affiliates' shares plus loans receivable from the unconsolidated affiliates in the event that the guaranteed obligations are enforced. Based on amounts drawn under such debt facilities at June 30, 2022, Bunge's potential liability was $230 million, and it has recorded a $5 million obligation related to these guarantees within Other non-current liabilities. (2) Bunge has issued guarantees to certain financial institutions that are party to certain operating lease arrangements for railcars, barges, and buildings. These guarantees provide for a minimum residual value to be received by the lessor at the conclusion of the lease term. These leases expire at various dates from 2022 through 2029. At June 30, 2022, no obligation has been recorded related to these guarantees. Any obligation recorded would be recognized in Current operating lease obligations or Non-current operating lease obligations. |
OTHER NON-CURRENT LIABILITIES (
OTHER NON-CURRENT LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Summary of Other Non-Current Liabilities | (US$ in millions) June 30, December 31, Labor, legal, and other provisions $ 183 $ 187 Pension and post-retirement obligations (1) 217 227 Uncertain income tax positions (2) 78 73 Unrealized losses on derivative contracts, at fair value (3) 230 49 Other 108 122 Total $ 816 $ 658 (1) On February 28, 2022, the Company, together with plan participants and related employee unions, agreed to the transition of one of the Company's international defined benefit pension plans to a multi-employer pension plan. Following the transition, the Company accounts for the multi-employer plan similar to a defined contribution plan, resulting in full settlement of the related defined benefit plan obligations. In connection with the settlement, during the six months ended June 30, 2022, the Company recorded a $41 million pretax gain within Other income (expense) - net in its condensed consolidated statements of income, comprising a $4 million settlement of the related defined benefit plan obligations as well as the reclassification of $37 million in unamortized actuarial gains from Accumulated other comprehensive income (loss). Of this pretax gain, $12 million was attributable to Redeemable non-controlling interests. (2) See Note 10- Income Taxes. (3) See Note 12 - Fair Value Measurements. |
EQUITY (Tables)
EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
Schedule of After-Tax Components of Accumulated Other Comprehensive Income (Loss) Attributable to Bunge | The following table summarizes the balances of related after-tax components of Accumulated other comprehensive income (loss) attributable to Bunge: (US$ in millions) Foreign Exchange Deferred Pension and Other Accumulated Balance, April 1, 2022 $ (5,697) $ (373) $ (143) $ (6,213) Other comprehensive income (loss) before reclassifications (265) 47 — (218) Amount reclassified from accumulated other comprehensive income (loss) — (5) — (5) Balance, June 30, 2022 $ (5,962) $ (331) $ (143) $ (6,436) (US$ in millions) Foreign Exchange Deferred Pension and Other Accumulated Balance, April 1, 2021 $ (6,092) $ (218) $ (174) $ (6,484) Other comprehensive income (loss) before reclassifications 321 (92) (2) 227 Amount reclassified from accumulated other comprehensive income (loss) — (1) — (1) Balance, June 30, 2021 $ (5,771) $ (311) $ (176) $ (6,258) (US$ in millions) Foreign Exchange Deferred Pension and Other Accumulated Balance, January 1, 2022 $ (6,093) $ (254) $ (124) $ (6,471) Other comprehensive income (loss) before reclassifications 131 (70) — 61 Amount reclassified from accumulated other comprehensive income (loss) (1) — (7) (19) (26) Balance, June 30, 2022 $ (5,962) $ (331) $ (143) $ (6,436) (1) On February 28, 2022, the Company, together with plan participants and related employee unions, agreed to the transition of one of the Company's international defined benefit pension plans to a multi-employer pension plan. Following the transition, the Company accounts for the multi-employer plan similar to a defined contribution plan, resulting in full settlement of the related defined benefit plan obligations. In connection with the settlement, during the six months ended June 30, 2022, the Company reclassified $27 million (net of $10 million tax expense) in unamortized actuarial gains from Accumulated other comprehensive income (loss), of which $19 million was attributable to Bunge (net of $7 million in tax expense), and $8 million was attributable to redeemable non-controlling interests (net of $3 million in tax expense). (US$ in millions) Foreign Exchange Deferred Pension and Other Accumulated Balance, January 1, 2021 $ (5,857) $ (215) $ (174) $ (6,246) Other comprehensive income (loss) before reclassifications 86 (94) (2) (10) Amount reclassified from accumulated other comprehensive income (loss) — (2) — (2) Balance, June 30, 2021 $ (5,771) $ (311) $ (176) $ (6,258) |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings per Common Share | The following table sets forth the computation of basic and diluted earnings per common share. Three Months Ended Six Months Ended (US$ in millions, except for share data) 2022 2021 2022 2021 Net income (loss) $ 225 $ 369 $ 921 $ 1,286 Net (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests (19) (7) (27) (92) Net income (loss) attributable to Bunge $ 206 $ 362 $ 894 $ 1,194 Convertible preference share dividends (1) — (9) — (17) Net income (loss) available to Bunge common shareholders - Basic $ 206 $ 353 $ 894 $ 1,177 Add back convertible preference share dividends — 9 — 17 Net income (loss) available to Bunge common shareholders - Diluted $ 206 $ 362 $ 894 $ 1,194 Weighted-average number of common shares outstanding: Basic 151,799,677 141,536,775 147,183,925 140,942,885 Effect of dilutive shares: —stock options and awards (2) 2,273,037 2,386,791 2,687,006 2,397,053 —convertible preference shares (1) — 8,756,388 3,966,347 8,756,388 Diluted 154,072,714 152,679,954 153,837,278 152,096,326 Earnings per common share: Net income (loss) attributable to Bunge common shareholders—basic $ 1.36 $ 2.50 $ 6.08 $ 8.35 Net income (loss) attributable to Bunge common shareholders—diluted $ 1.34 $ 2.37 $ 5.81 $ 7.85 (1) Effective March 23, 2022 (the "Conversion Date"), in accordance with the terms of the certificate of designation governing the convertible preference shares, all of the Company's issued and outstanding convertible preference shares were automatically converted into 1.2846 common shares of the Company, par value $0.01 per share. As a result of this conversion, dividends on the convertible preference shares ceased to accrue on the Conversion Date. Accordingly, holders of the convertible preference shares were not entitled to receive the $1.21875 per share dividend declared by the Company in respect of the convertible preference shares on February 23, 2022 and payable to holders of record on May 15, 2022, and no convertible preference shares were issued or outstanding as of June 30, 2022. Refer to Note 19 - Equity for further information. (2) There were no anti-dilutive outstanding stock options and contingently issuable restricted stock units excluded from the weighted-average number of common shares outstanding for the three month periods ended June 30, 2022 or 2021 . The weighted-average common shares outstanding-diluted exclude approximately zero and 2 million stock options and contingently issuable restricted stock units, which were not dilutive and not included in the computation of earnings per share, for the six months ended June 30, 2022 and 2021, respectively. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Operating Segment Information | Segment revenues generated from these transfers are shown in the following table as “Inter-segment revenues.” Three Months Ended June 30, 2022 (US$ in millions) Agribusiness Refined and Specialty Oils Milling Sugar and Corporate and Other Eliminations Total Net sales to external customers $ 12,747 $ 4,445 $ 677 $ 57 $ 7 $ — $ 17,933 Inter–segment revenues 2,892 86 92 — — (3,070) — Cost of goods sold (12,431) (4,120) (551) (55) (4) — (17,161) Gross profit 316 325 126 2 3 — 772 Selling, general and administrative expenses (119) (87) (28) — (100) — (334) Foreign exchange gains (losses) (93) (8) — — (9) — (110) EBIT attributable to noncontrolling interests (1) (13) (7) (1) — 1 — (20) Other income (expense) - net (14) (5) — — 13 — (6) Income (loss) from affiliates 16 — — 4 — — 20 Total Segment EBIT (2) 93 218 97 6 (92) — 322 Total assets 18,889 4,616 1,488 376 2,050 — 27,419 Three Months Ended June 30, 2021 (US$ in millions) Agribusiness Refined and Specialty Oils Milling Sugar and Corporate and Other Eliminations Total Net sales to external customers $ 11,654 $ 3,198 $ 471 $ 68 $ — $ — $ 15,391 Inter–segment revenues 2,045 125 15 — — (2,185) — Cost of goods sold (11,244) (3,003) (414) (67) 2 — (14,726) Gross profit 410 195 57 1 2 — 665 Selling, general and administrative expenses (114) (90) (25) — (68) — (297) Foreign exchange gains (losses) 36 1 2 — (4) — 35 EBIT attributable to noncontrolling interests (1) (3) (5) — — — — (8) Other income (expense) - net 24 1 — — 10 — 35 Income (loss) from affiliates 11 — — 18 — — 29 Total Segment EBIT (2) 364 102 34 19 (60) — 459 Total assets 18,046 4,061 1,362 171 1,445 — 25,085 Six Months Ended June 30, 2022 (US$ in millions) Agribusiness Refined and Specialty Oils Milling Sugar and Corporate and Other Eliminations Total Net sales to external customers $ 23,978 $ 8,421 $ 1,280 $ 121 $ 13 $ — $ 33,813 Inter–segment revenues 5,379 198 467 — — (6,044) — Cost of goods sold (22,798) (7,834) (1,083) (117) (5) — (31,837) Gross profit 1,180 587 197 4 8 — 1,976 Selling, general and administrative expenses (240) (176) (52) — (174) — (642) Foreign exchange gains (losses) (84) (8) 3 — (9) — (98) EBIT attributable to noncontrolling interests (1) (17) (4) (1) — (11) — (33) Other income (expense) - net (77) (8) — — 32 — (53) Income (loss) from affiliates 30 — — 36 (1) — 65 Total Segment EBIT (2) 792 391 147 40 (155) — 1,215 Total assets 18,889 4,616 1,488 376 2,050 — 27,419 Six Months Ended June 30, 2021 (US$ in millions) Agribusiness Edible Milling Sugar and Corporate and Other Eliminations Total Net sales to external customers $ 21,444 $ 5,924 $ 862 $ 122 $ — $ — $ 28,352 Inter–segment revenues 3,511 227 108 — — (3,846) — Cost of goods sold (20,149) (5,494) (771) (120) (6) — (26,540) Gross profit 1,295 430 91 2 (6) — 1,812 Selling, general and administrative expenses (194) (176) (48) — (150) — (568) Foreign exchange gains (losses) 29 2 — — (6) — 25 EBIT attributable to noncontrolling interests (1) (11) (83) (1) — — — (95) Other income (expense) - net 46 237 — — 15 — 298 Income (loss) from affiliates 35 — — 37 1 — 73 Total Segment EBIT (2) 1,200 410 42 39 (146) — 1,545 Total assets 18,046 4,061 1,362 171 1,445 — 25,085 (1) Include noncontrolling interests' share of interest and tax with EBIT attributable to noncontrolling interests in order to reconcile to consolidated Net (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests. (2) Total segment earnings before interest and taxes ("EBIT") is an operating performance measure used by Bunge’s management to evaluate segment operating activities. Bunge’s management believes Total Segment EBIT is a useful measure of operating profitability, since the measure allows for an evaluation of the performance of its segments without regard to its financing methods or capital structure. In addition, Total Segment EBIT is a financial measure that is widely used by analysts and investors in Bunge’s industry. 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) attributable to Bunge in the table below. |
Reconciliation of Total Segment EBIT to Net Income Attributable to Bunge | A reconciliation of Net income (loss) attributable to Bunge to Total Segment EBIT follows: Three Months Ended Six Months Ended (US$ in millions) 2022 2021 2022 2021 Net income (loss) attributable to Bunge $ 206 $ 362 $ 894 $ 1,194 Interest income (11) (6) (20) (15) Interest expense 92 54 203 127 Income tax expense (benefit) 36 50 144 242 Noncontrolling interests' share of interest and tax (1) (1) (6) (3) Total Segment EBIT from continuing operations $ 322 $ 459 $ 1,215 $ 1,545 |
Net Sales by Product Group to External Customers | The following tables provide a disaggregation of Net sales to external customers between sales from contracts with customers and sales from other arrangements: Three Months Ended June 30, 2022 (US$ in millions) Agribusiness Refined and Specialty Oils Milling Sugar and Corporate and Other Total Sales from other arrangements $ 11,929 $ 379 $ 47 $ 56 $ — $ 12,411 Sales from contracts with customers 818 4,066 630 1 7 5,522 Net sales to external customers $ 12,747 $ 4,445 $ 677 $ 57 $ 7 $ 17,933 Three Months Ended June 30, 2021 (US$ in millions) Agribusiness Refined and Specialty Oils Milling Sugar and Corporate and Other Total Sales from other arrangements $ 11,128 $ 243 $ 6 $ 67 $ — $ 11,444 Sales from contracts with customers 526 2,955 465 1 — 3,947 Net sales to external customers $ 11,654 $ 3,198 $ 471 $ 68 $ — $ 15,391 Six Months Ended June 30, 2022 (US$ in millions) Agribusiness Refined and Specialty Oils Milling Sugar and Corporate and Other Total Sales from other arrangements $ 22,496 $ 630 $ 109 $ 119 $ — $ 23,354 Sales from contracts with customers 1,482 7,791 1,171 2 13 10,459 Net sales to external customers $ 23,978 $ 8,421 $ 1,280 $ 121 $ 13 $ 33,813 Six Months Ended June 30, 2021 (US$ in millions) Agribusiness Refined and Specialty Oils Milling Sugar and Corporate and Other Total Sales from other arrangements $ 20,486 $ 429 $ — $ 120 $ — $ 21,035 Sales from contracts with customers 958 5,495 862 2 — 7,317 Net sales to external customers $ 21,444 $ 5,924 $ 862 $ 122 $ — $ 28,352 |
BASIS OF PRESENTATION, PRINCI_4
BASIS OF PRESENTATION, PRINCIPLES OF CONSOLIDATION, AND SIGNIFICANT ACCOUNTING POLICIES - NARRATIVE (Details) $ in Millions | 6 Months Ended | ||
May 01, 2022 USD ($) soybeanProcessingFacility | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | |
Variable Interest Entity [Line Items] | |||
Cash paid for taxes, net of refunds | $ 260 | $ 121 | |
Cash paid for interest expense | $ 221 | $ 79 | |
Bunge Chevron Ag Renewables LLC | |||
Variable Interest Entity [Line Items] | |||
Equity method investment, ownership percentage | 50% | ||
Number of soybean processing facilities | soybeanProcessingFacility | 2 | ||
Fair value | $ 521 | ||
Contingent contributions | $ 80 |
BASIS OF PRESENTATION, PRINCI_5
BASIS OF PRESENTATION, PRINCIPLES OF CONSOLIDATION, AND SIGNIFICANT ACCOUNTING POLICIES - RECONCILIATION OF CASH, CASH EQUIVALENTS, AND RESTRICTED CASH (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 818 | $ 902 | $ 464 | |
Restricted cash included in other current assets | 5 | 3 | 40 | |
Total | $ 823 | $ 905 | $ 504 | $ 381 |
UKRAINE-RUSSIA WAR - SCHEDULE O
UKRAINE-RUSSIA WAR - SCHEDULE OF ASSETS AND LIABILITIES HELD IN UKRAINE AND RUSSIA (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
Current assets: | |||
Cash and cash equivalents | $ 818 | $ 902 | $ 464 |
Trade accounts receivable, less allowances | 2,427 | 2,112 | |
Trade accounts receivable, allowances | 82 | 85 | |
Inventories | 10,481 | 8,431 | |
Other current assets | 5,689 | 4,751 | |
Total current assets | 19,732 | 16,460 | |
Property, plant and equipment, net | 3,463 | 3,499 | |
Other non-current assets | 727 | 719 | |
Total assets | 27,419 | 23,819 | $ 25,085 |
Current liabilities: | |||
Trade accounts payable and accrued liabilities | 5,347 | 4,250 | |
Short-term debt | 2,154 | 673 | |
Other current liabilities | 3,840 | 3,425 | |
Total current liabilities | 13,101 | 9,324 | |
Other non-current liabilities | 816 | $ 658 | |
Ukraine | International Conflicts | |||
Current assets: | |||
Cash and cash equivalents | 1 | ||
Trade accounts receivable, less allowances | 5 | ||
Inventories | 70 | ||
Other current assets | 84 | ||
Total current assets | 160 | ||
Property, plant and equipment, net | 140 | ||
Other non-current assets | 50 | ||
Total assets | 350 | ||
Current liabilities: | |||
Trade accounts payable and accrued liabilities | 15 | ||
Short-term debt | 218 | ||
Other current liabilities | 3 | ||
Total current liabilities | 236 | ||
Other non-current liabilities | 4 | ||
Total liabilities | 240 | ||
Russia | International Conflicts | |||
Current assets: | |||
Cash and cash equivalents | 12 | ||
Trade accounts receivable, less allowances | 23 | ||
Trade accounts receivable, allowances | 0 | ||
Inventories | 51 | ||
Other current assets | 20 | ||
Total current assets | 106 | ||
Property, plant and equipment, net | 32 | ||
Other non-current assets | 19 | ||
Total assets | 157 | ||
Current liabilities: | |||
Trade accounts payable and accrued liabilities | 11 | ||
Other current liabilities | 9 | ||
Total current liabilities | 20 | ||
Total liabilities | $ 20 |
UKRAINE-RUSSIA WAR - NARRATIVE
UKRAINE-RUSSIA WAR - NARRATIVE (Details) employee in Thousands, ₽ in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 USD ($) employee | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) employee | Jun. 30, 2022 RUB (₽) | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Unusual or Infrequent Item, or Both [Line Items] | ||||||
Trade accounts receivable, allowances | $ 82 | $ 82 | $ 85 | |||
Marketable securities and other short-term investments | 172 | 172 | 520 | |||
Recoverable taxes, net | 140 | 140 | 139 | |||
Other current assets | 5,689 | 5,689 | 4,751 | |||
Deferred tax assets | 622 | 622 | 550 | |||
Operating lease right-of-use assets | 1,038 | 1,038 | 912 | |||
Other non-current assets | 727 | 727 | $ 719 | |||
Cost of goods sold | $ 17,161 | $ 14,726 | $ 31,837 | $ 26,540 | ||
Ukraine | International Conflicts | ||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||
Number of employees | employee | 1 | 1 | ||||
Payments for food and other monetary assistance | $ 2 | |||||
Write-down on inventory to net realizable value | $ 62 | 71 | ||||
Write-down of recoverable tax assets | 6 | 7 | ||||
Recoverable taxes, net | 26 | 26 | ||||
Other current assets | 84 | 84 | ||||
Impairment of property, plant, and equipment, net (less than) | 1 | 2 | ||||
Operating lease right-of-use assets | 10 | 10 | ||||
Other non-current assets | 50 | 50 | ||||
Ukraine | International Conflicts | Agribusiness | ||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||
Write-down on inventory to net realizable value | 24 | 24 | ||||
Ukraine | International Conflicts | Non-US Government and Corporate Debt Securities | Other Income (Expense) - Net | ||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||
Loss on portfolios | 5 | $ 69 | ||||
Ukraine | International Conflicts | Liabilities, Total | Geographic Concentration Risk | ||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||
Concentration percentage | 1% | 1% | ||||
Ukraine | International Conflicts | Other Current Assets | ||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||
Marketable securities and other short-term investments | 51 | $ 51 | ||||
Recoverable taxes, net | 26 | 26 | ||||
Other current assets | 7 | 7 | ||||
Ukraine | International Conflicts | Other Current Assets | Non-US Government and Corporate Debt Securities Held | ||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||
Loss on portfolios | 37 | |||||
Ukraine | International Conflicts | Other Non-Current Assets | ||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||
Recoverable taxes, net | 7 | 7 | ||||
Deferred tax assets | 26 | 26 | ||||
Other non-current assets | 7 | 7 | ||||
Russia | International Conflicts | ||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||
Trade accounts receivable, allowances | 0 | 0 | ||||
Other current assets | 20 | 20 | ||||
Other non-current assets | 19 | 19 | ||||
Restricted repayments to non-Russian entities | $ 0.2 | ₽ 10 | ||||
Russia | International Conflicts | Assets, Total | Geographic Concentration Risk | ||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||
Concentration percentage | 1% | 1% | ||||
Russia | International Conflicts | Liabilities, Total | Geographic Concentration Risk | ||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||
Concentration percentage | 1% | 1% | ||||
Non-Ukrainian, Off-Shore | International Conflicts | Other Current Assets | Non-US Government and Corporate Debt Securities | ||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||
Marketable securities and other short-term investments | $ 15 | $ 15 |
ACQUISITIONS AND DISPOSITIONS -
ACQUISITIONS AND DISPOSITIONS - NARRATIVE (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Jun. 30, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Assets held for sale | $ 264 | $ 317 |
Liabilities held for sale | 122 | 61 |
Held-for-Sale | Insignificant Dispositions | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Assets held for sale | 5 | |
Liabilities held for sale | $ 0 | |
Maximum | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Wheat Milling in Mexico | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Loss on sale from cumulative translation adjustments | $ 170 |
ACQUISITIONS AND DISPOSITIONS_2
ACQUISITIONS AND DISPOSITIONS - COMPOSITION OF ASSETS AND LIABILITIES HELD FOR SALE (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Impairment reserve | $ (170) | |
Assets held for sale | 317 | $ 264 |
Liabilities held for sale | 61 | $ 122 |
Held-for-Sale | Mexico Wheat Milling | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Trade accounts receivable | 77 | |
Inventories | 141 | |
Other current assets | 14 | |
Property, plant and equipment, net | 162 | |
Operating lease assets | 2 | |
Goodwill & Other intangible assets, net | 86 | |
Assets held for sale | 312 | |
Trade accounts payable | 41 | |
Current operating lease obligations | 2 | |
Other current liabilities | 18 | |
Liabilities held for sale | 61 | |
Cumulative translation adjustments | $ 152 |
TRADE STRUCTURED FINANCE PROG_2
TRADE STRUCTURED FINANCE PROGRAM (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Trade structured finance program | |||
Weighted-average interest rate of time deposits (as a percent) | 2.10% | 1.08% | |
Total net proceeds from issuances of LCs | $ 3,689 | $ 3,995 | |
London Interbank Offered Rate (LIBOR) | |||
Trade structured finance program | |||
Term to cover changes in variable rate | 365 days | ||
Time deposits and LC's presented net in the balance sheet | |||
Trade structured finance program | |||
Face value of time deposits and LCs | $ 6,170 | $ 6,543 |
TRADE ACCOUNTS RECEIVABLE AND_3
TRADE ACCOUNTS RECEIVABLE AND TRADE RECEIVABLES SECURITIZATION PROGRAM - ROLLFORWARD OF THE ALLOWANCE FOR CREDIT LOSSES (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Rollforward of the Allowance for Credit Losses | ||
Allowance, beginning balance | $ 132 | $ 144 |
Current period provisions | 28 | 17 |
Recoveries | (19) | (14) |
Write-offs charged against the allowance | (13) | (2) |
Foreign exchange translation differences | 1 | 0 |
Allowance, ending balance | 129 | 145 |
Short-term | ||
Rollforward of the Allowance for Credit Losses | ||
Allowance, beginning balance | 85 | 93 |
Current period provisions | 27 | 17 |
Recoveries | (19) | (13) |
Write-offs charged against the allowance | (10) | (2) |
Foreign exchange translation differences | (1) | (1) |
Allowance, ending balance | 82 | 94 |
Long-term | ||
Rollforward of the Allowance for Credit Losses | ||
Allowance, beginning balance | 47 | 51 |
Current period provisions | 1 | 0 |
Recoveries | 0 | (1) |
Write-offs charged against the allowance | (3) | 0 |
Foreign exchange translation differences | 2 | 1 |
Allowance, ending balance | $ 47 | $ 51 |
TRADE ACCOUNTS RECEIVABLE AND_4
TRADE ACCOUNTS RECEIVABLE AND TRADE RECEIVABLES SECURITIZATION PROGRAM - NARRATIVE (Details) - Bunge Securitization B.V. - USD ($) $ in Millions | Mar. 31, 2022 | Mar. 30, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Increase in maximum funding amount under trade receivables securitization program | $ 175 | |
Maximum funding under trade receivables securitization program | 1,100 | $ 925 |
Accordion provision | $ 250 |
TRADE ACCOUNTS RECEIVABLE AND_5
TRADE ACCOUNTS RECEIVABLE AND TRADE RECEIVABLES SECURITIZATION PROGRAM - CONSIDERATION (Details) - Bunge Securitization B.V. - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Accounts Receivable Securitization Facilities Disclosures | |||
Receivables sold that were derecognized from Bunge's condensed consolidated balance sheet | $ 1,732 | $ 1,426 | |
Deferred purchase price included in Other current assets | $ 628 | 496 | |
Payment term for receivables | 30 days | ||
Delinquencies and credit losses on trade receivables sold | $ 4 | $ 5 | |
Gross receivables sold | 8,585 | $ 6,915 | |
Proceeds received in cash related to transfer of receivables | 7,876 | 6,423 | |
Cash collections from customers on receivables previously sold | 8,372 | 6,545 | |
Discounts related to gross receivables sold included in Selling, general and administrative expense | $ 6 | $ 4 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
INVENTORIES | ||
Total | $ 10,481 | $ 8,431 |
Corporate and Other | ||
INVENTORIES | ||
Total | 4 | 2 |
Agribusiness | ||
INVENTORIES | ||
Total | 8,609 | 6,800 |
Readily marketable inventories at fair value | 8,015 | 6,490 |
Agribusiness | Merchandising Activities | ||
INVENTORIES | ||
Readily marketable inventories at fair value | 6,616 | 4,857 |
Refined and Specialty Oils | ||
INVENTORIES | ||
Total | 1,585 | 1,310 |
Readily marketable inventories at fair value | 320 | 257 |
Milling | ||
INVENTORIES | ||
Total | 283 | 319 |
Readily marketable inventories at fair value | $ 43 | $ 122 |
OTHER CURRENT ASSETS - SUMMARY
OTHER CURRENT ASSETS - SUMMARY OF OTHER CURRENT ASSETS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Other Current Assets: | |||||
Unrealized gains on derivative contracts, at fair value | $ 2,479 | $ 2,479 | $ 1,630 | ||
Prepaid commodity purchase contracts | 365 | 365 | 186 | ||
Secured advances to suppliers, net | 192 | 192 | 375 | ||
Recoverable taxes, net | 375 | 375 | 347 | ||
Margin deposits | 639 | 639 | 569 | ||
Deferred purchase price receivable | 628 | 628 | 496 | ||
Marketable securities and other short-term investments | 172 | 172 | 520 | ||
Income taxes receivable | 114 | 114 | 47 | ||
Prepaid expenses | 434 | 434 | 380 | ||
Restricted cash | 5 | $ 40 | 5 | $ 40 | 3 |
Other | 286 | 286 | 198 | ||
Total | 5,689 | 5,689 | 4,751 | ||
Allowance on secured advance to farmers | 3 | 3 | $ 3 | ||
Interest earned on secured advances to suppliers | $ 6 | $ 4 | $ 12 | $ 13 |
OTHER CURRENT ASSETS - MARKETAB
OTHER CURRENT ASSETS - MARKETABLE SECURITIES AND OTHER SHORT-TERM INVESTMENTS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Net Investment Income [Line Items] | |||||
Marketable securities and other short-term investments | $ 172 | $ 172 | $ 520 | ||
Marketable securities at fair value | 135 | 135 | 479 | ||
Unrealized gains (losses) | (18) | $ 16 | (119) | $ 22 | |
Foreign government securities | |||||
Net Investment Income [Line Items] | |||||
Marketable securities and other short-term investments | 83 | 83 | 261 | ||
Corporate debt securities | |||||
Net Investment Income [Line Items] | |||||
Marketable securities and other short-term investments | 27 | 27 | 158 | ||
Equity securities | |||||
Net Investment Income [Line Items] | |||||
Marketable securities and other short-term investments | 25 | 25 | 60 | ||
Other | |||||
Net Investment Income [Line Items] | |||||
Marketable securities and other short-term investments | $ 37 | $ 37 | $ 41 |
OTHER NON-CURRENT ASSETS - COMP
OTHER NON-CURRENT ASSETS - COMPOSITION (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Other Assets, Noncurrent [Abstract] | ||
Recoverable taxes, net | $ 61 | $ 66 |
Judicial deposits | 105 | 89 |
Other long-term receivables, net | 5 | 11 |
Income taxes receivable | 140 | 139 |
Long-term investments | 244 | 196 |
Affiliate loans receivable | 14 | 16 |
Long-term receivables from farmers in Brazil, net | 30 | 33 |
Unrealized gains on derivative contracts, at fair value | 8 | 49 |
Other | 120 | 120 |
Total | 727 | 719 |
Long-term investments recorded at fair value | 10 | 12 |
Allowance for recoverable taxes | $ 17 | $ 18 |
Minimum initial maturity of affiliate loans receivable | 1 year |
OTHER NON-CURRENT ASSETS - RECE
OTHER NON-CURRENT ASSETS - RECEIVABLES FROM FARMERS IN BRAZIL AND ALLOWANCE AMOUNTS (Details) - Long-term receivables - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | |
Recorded Investment | ||||
Average recorded investment in long-term receivables | $ 114 | $ 92 | ||
Total | 67 | 69 | ||
Allowance | 37 | 36 | $ 61 | $ 63 |
Legal collection process | ||||
Recorded Investment | ||||
Recorded investment for which an allowance has been provided | 41 | 42 | ||
Recorded investment for which no allowance has been provided | 20 | 20 | ||
Allowance | 34 | 35 | ||
Renegotiated amounts | ||||
Recorded Investment | ||||
Recorded investment for which an allowance has been provided | 1 | 3 | ||
Recorded investment for which no allowance has been provided | 5 | 2 | ||
Allowance | 3 | 1 | ||
Other long-term receivables | ||||
Recorded Investment | ||||
Recorded investment for which no allowance has been provided | $ 0 | $ 2 |
OTHER NON-CURRENT ASSETS - ALLO
OTHER NON-CURRENT ASSETS - ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) - Long-term receivables - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Financing Receivable, Allowance for Credit Loss | ||
Beginning balance | $ 36 | $ 63 |
Bad debt provisions | 1 | 3 |
Recoveries | (3) | (3) |
Write-offs | 0 | (4) |
Transfers | 0 | 0 |
Foreign exchange translation | 3 | 2 |
Ending balance | $ 37 | $ 61 |
VARIABLE INTEREST ENTITIES - SC
VARIABLE INTEREST ENTITIES - SCHEDULE OF VARIABLE INTEREST ENTITIES (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
Current assets: | |||
Cash and cash equivalents | $ 818 | $ 902 | $ 464 |
Trade accounts receivable | 2,427 | 2,112 | |
Inventories | 10,481 | 8,431 | |
Other current assets | 5,689 | 4,751 | |
Total current assets | 19,732 | 16,460 | |
Property, plant and equipment, net | 3,463 | 3,499 | |
Total assets | 27,419 | 23,819 | $ 25,085 |
Current liabilities: | |||
Trade accounts payable and accrued liabilities | 5,347 | 4,250 | |
Other current liabilities | 3,840 | 3,425 | |
Total current liabilities | 13,101 | $ 9,324 | |
Variable Interest Entity, Primary Beneficiary | |||
Current assets: | |||
Cash and cash equivalents | 369 | ||
Trade accounts receivable | 42 | ||
Inventories | 56 | ||
Other current assets | 53 | ||
Total current assets | 520 | ||
Property, plant and equipment, net | 56 | ||
Total assets | 576 | ||
Current liabilities: | |||
Trade accounts payable and accrued liabilities | 45 | ||
Other current liabilities | 53 | ||
Total current liabilities | 98 | ||
Total liabilities | $ 98 |
VARIABLE INTEREST ENTITIES - NA
VARIABLE INTEREST ENTITIES - NARRATIVE (Details) R$ in Millions, $ in Millions | Jun. 10, 2022 BRL (R$) | Jun. 10, 2022 USD ($) | Jun. 30, 2022 USD ($) | Jun. 10, 2022 USD ($) |
Sinagro Produtos Agropecuários S.A. | ||||
Variable Interest Entity [Line Items] | ||||
Long-term debt including current portion, carrying value | R$ 730 | $ 139 | ||
Sinagro Produtos Agropecuários S.A. | ||||
Variable Interest Entity [Line Items] | ||||
Equity holding percentage | 33% | 33% | ||
Payments to acquire business interest | R$ 273 | $ 52 | ||
Book value of investment, exposure to loss amount | $ 52 | |||
Guarantee amount | R$ 243 | $ 46 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 36 | $ 50 | $ 144 | $ 242 |
OTHER CURRENT LIABILITIES (Deta
OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Other Liabilities Disclosure [Abstract] | ||
Unrealized losses on derivative contracts, at fair value | $ 2,307 | $ 1,713 |
Accrued liabilities | 618 | 689 |
Advances on sales | 378 | 437 |
Income tax payable | 83 | 168 |
Other | 454 | 418 |
Total | $ 3,840 | $ 3,425 |
FAIR VALUE MEASUREMENTS - ASSET
FAIR VALUE MEASUREMENTS - ASSETS AND LIABILITIES AT FAIR VALUE (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Unrealized gain on derivative contracts: | ||
Unrealized gain | $ 2,479 | $ 1,630 |
Liabilities: | ||
Trade accounts payable | 1,117 | 568 |
Unrealized loss on derivative contracts: | ||
Unrealized loss | 2,307 | 1,713 |
Held-for-Sale | ||
Unrealized gain on derivative contracts: | ||
Unrealized gain | 1 | 2 |
Unrealized loss on derivative contracts: | ||
Unrealized loss | 0 | 1 |
Other noncurrent assets | ||
Unrealized loss on derivative contracts: | ||
Unrealized gains (losses) on derivative contracts | 8 | 49 |
Assets and liabilities measured at fair value on a recurring basis | ||
Assets: | ||
Readily marketable inventories | 8,378 | 6,869 |
Trade accounts receivable | 1 | 1 |
Unrealized gain on derivative contracts: | ||
Total assets | 11,017 | 9,047 |
Liabilities: | ||
Trade accounts payable | 1,117 | 568 |
Unrealized loss on derivative contracts: | ||
Total liabilities | 3,665 | 2,331 |
Assets and liabilities measured at fair value on a recurring basis | Hedge accounting | Interest rate | ||
Unrealized gain on derivative contracts: | ||
Unrealized gain | 5 | 49 |
Unrealized loss on derivative contracts: | ||
Unrealized loss | 241 | 47 |
Assets and liabilities measured at fair value on a recurring basis | Hedge accounting | Foreign exchange | ||
Unrealized gain on derivative contracts: | ||
Unrealized gain | 597 | 340 |
Unrealized loss on derivative contracts: | ||
Unrealized loss | 531 | 309 |
Assets and liabilities measured at fair value on a recurring basis | Economic hedges | ||
Unrealized gain on derivative contracts: | ||
Other | 150 | 497 |
Assets and liabilities measured at fair value on a recurring basis | Economic hedges | Commodities | ||
Unrealized gain on derivative contracts: | ||
Unrealized gain | 1,517 | 1,152 |
Unrealized loss on derivative contracts: | ||
Unrealized loss | 1,427 | 1,214 |
Assets and liabilities measured at fair value on a recurring basis | Economic hedges | Freight | ||
Unrealized gain on derivative contracts: | ||
Unrealized gain | 74 | 84 |
Unrealized loss on derivative contracts: | ||
Unrealized loss | 120 | 162 |
Assets and liabilities measured at fair value on a recurring basis | Economic hedges | Energy | ||
Unrealized gain on derivative contracts: | ||
Unrealized gain | 290 | 48 |
Unrealized loss on derivative contracts: | ||
Unrealized loss | 229 | 30 |
Assets and liabilities measured at fair value on a recurring basis | Economic hedges | Credit | ||
Unrealized gain on derivative contracts: | ||
Unrealized gain | 5 | 6 |
Unrealized loss on derivative contracts: | ||
Unrealized loss | 0 | 1 |
Assets and liabilities measured at fair value on a recurring basis | Economic hedges | Equity | ||
Unrealized gain on derivative contracts: | ||
Unrealized gain | 0 | 1 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | ||
Assets: | ||
Readily marketable inventories | 0 | 0 |
Trade accounts receivable | 0 | 0 |
Unrealized gain on derivative contracts: | ||
Total assets | 521 | 278 |
Liabilities: | ||
Trade accounts payable | 0 | 0 |
Unrealized loss on derivative contracts: | ||
Total liabilities | 510 | 289 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Hedge accounting | Interest rate | ||
Unrealized gain on derivative contracts: | ||
Unrealized gain | 0 | 0 |
Unrealized loss on derivative contracts: | ||
Unrealized loss | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Hedge accounting | Foreign exchange | ||
Unrealized gain on derivative contracts: | ||
Unrealized gain | 0 | 0 |
Unrealized loss on derivative contracts: | ||
Unrealized loss | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Economic hedges | ||
Unrealized gain on derivative contracts: | ||
Other | 40 | 91 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Economic hedges | Commodities | ||
Unrealized gain on derivative contracts: | ||
Unrealized gain | 133 | 63 |
Unrealized loss on derivative contracts: | ||
Unrealized loss | 161 | 98 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Economic hedges | Freight | ||
Unrealized gain on derivative contracts: | ||
Unrealized gain | 71 | 79 |
Unrealized loss on derivative contracts: | ||
Unrealized loss | 120 | 162 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Economic hedges | Energy | ||
Unrealized gain on derivative contracts: | ||
Unrealized gain | 277 | 44 |
Unrealized loss on derivative contracts: | ||
Unrealized loss | 229 | 29 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Economic hedges | Credit | ||
Unrealized gain on derivative contracts: | ||
Unrealized gain | 0 | 0 |
Unrealized loss on derivative contracts: | ||
Unrealized loss | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Economic hedges | Equity | ||
Unrealized gain on derivative contracts: | ||
Unrealized gain | 0 | 1 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | ||
Assets: | ||
Readily marketable inventories | 7,437 | 6,664 |
Trade accounts receivable | 1 | 1 |
Unrealized gain on derivative contracts: | ||
Total assets | 9,416 | 8,530 |
Liabilities: | ||
Trade accounts payable | 846 | 545 |
Unrealized loss on derivative contracts: | ||
Total liabilities | 2,821 | 1,954 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Hedge accounting | Interest rate | ||
Unrealized gain on derivative contracts: | ||
Unrealized gain | 5 | 49 |
Unrealized loss on derivative contracts: | ||
Unrealized loss | 241 | 47 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Hedge accounting | Foreign exchange | ||
Unrealized gain on derivative contracts: | ||
Unrealized gain | 597 | 340 |
Unrealized loss on derivative contracts: | ||
Unrealized loss | 531 | 309 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Economic hedges | ||
Unrealized gain on derivative contracts: | ||
Other | 44 | 406 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Economic hedges | Commodities | ||
Unrealized gain on derivative contracts: | ||
Unrealized gain | 1,311 | 1,055 |
Unrealized loss on derivative contracts: | ||
Unrealized loss | 1,203 | 1,051 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Economic hedges | Freight | ||
Unrealized gain on derivative contracts: | ||
Unrealized gain | 3 | 5 |
Unrealized loss on derivative contracts: | ||
Unrealized loss | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Economic hedges | Energy | ||
Unrealized gain on derivative contracts: | ||
Unrealized gain | 13 | 4 |
Unrealized loss on derivative contracts: | ||
Unrealized loss | 0 | 1 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Economic hedges | Credit | ||
Unrealized gain on derivative contracts: | ||
Unrealized gain | 5 | 6 |
Unrealized loss on derivative contracts: | ||
Unrealized loss | 0 | 1 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Economic hedges | Equity | ||
Unrealized gain on derivative contracts: | ||
Unrealized gain | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | ||
Assets: | ||
Readily marketable inventories | 941 | 205 |
Trade accounts receivable | 0 | 0 |
Unrealized gain on derivative contracts: | ||
Total assets | 1,080 | 239 |
Liabilities: | ||
Trade accounts payable | 271 | 23 |
Unrealized loss on derivative contracts: | ||
Total liabilities | 334 | 88 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Hedge accounting | Interest rate | ||
Unrealized gain on derivative contracts: | ||
Unrealized gain | 0 | 0 |
Unrealized loss on derivative contracts: | ||
Unrealized loss | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Hedge accounting | Foreign exchange | ||
Unrealized gain on derivative contracts: | ||
Unrealized gain | 0 | 0 |
Unrealized loss on derivative contracts: | ||
Unrealized loss | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Economic hedges | ||
Unrealized gain on derivative contracts: | ||
Other | 66 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Economic hedges | Commodities | ||
Unrealized gain on derivative contracts: | ||
Unrealized gain | 73 | 34 |
Unrealized loss on derivative contracts: | ||
Unrealized loss | 63 | 65 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Economic hedges | Freight | ||
Unrealized gain on derivative contracts: | ||
Unrealized gain | 0 | 0 |
Unrealized loss on derivative contracts: | ||
Unrealized loss | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Economic hedges | Energy | ||
Unrealized gain on derivative contracts: | ||
Unrealized gain | 0 | 0 |
Unrealized loss on derivative contracts: | ||
Unrealized loss | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Economic hedges | Credit | ||
Unrealized gain on derivative contracts: | ||
Unrealized gain | 0 | 0 |
Unrealized loss on derivative contracts: | ||
Unrealized loss | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Economic hedges | Equity | ||
Unrealized gain on derivative contracts: | ||
Unrealized gain | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - RECON
FAIR VALUE MEASUREMENTS - RECONCILIATION FOR ASSETS AND LIABILITIES MEASURE AT FAIR VALUE USING LEVEL 3 (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Total | ||||
Balance at beginning of period | $ 781 | $ 348 | $ 151 | $ 191 |
Total gains and losses (realized/unrealized) included in cost of goods sold | 152 | 297 | ||
Purchases | 776 | 495 | 1,656 | 853 |
Sales | (1,310) | (1,094) | (2,687) | (1,856) |
Issuances | 0 | 0 | 0 | (2) |
Settlements | 52 | (83) | 241 | (49) |
Transfers into Level 3 | 456 | 423 | 1,314 | 685 |
Transfers out of Level 3 | 0 | 139 | (46) | 261 |
Translation adjustment | (48) | (45) | ||
Balance at end of period | 746 | 380 | 746 | 380 |
Ukraine | Other Current Assets | Non-US Government and Corporate Debt Securities Held | International Conflicts | ||||
Total | ||||
Loss on portfolios | 37 | |||
Cost of goods sold | ||||
Total | ||||
Total gains and losses (realized/unrealized) included in cost of goods sold | 44 | 231 | ||
Other income (expense) - net | ||||
Trade Accounts Payable/Other | ||||
Total gains and losses (realized/unrealized) included in cost of goods sold | (69) | |||
Total | ||||
Total gains and losses (realized/unrealized) included in cost of goods sold | (5) | |||
Other income (expense) - net | Ukraine | Non-US Government and Corporate Debt Securities | International Conflicts | ||||
Total | ||||
Loss on portfolios | 5 | 69 | ||
Readily Marketable Inventories | ||||
Readily Marketable Inventories | ||||
Balance at beginning of period | 1,131 | 629 | 205 | 208 |
Total gains and losses (realized/unrealized) included in cost of goods sold | 15 | 269 | ||
Purchases | 856 | 534 | 2,102 | 1,074 |
Sales | (1,310) | (1,094) | (2,687) | (1,856) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 451 | 454 | 1,415 | 900 |
Transfers out of Level 3 | (131) | (46) | (178) | (103) |
Translation adjustment | (91) | (86) | ||
Balance at end of period | 941 | 492 | 941 | 492 |
Total | ||||
Changes in unrealized gains (losses) relating to Level 3 assets and liabilities | 84 | 139 | 167 | 263 |
Readily Marketable Inventories | Cost of goods sold | ||||
Readily Marketable Inventories | ||||
Total gains and losses (realized/unrealized) included in cost of goods sold | 35 | 170 | ||
Readily Marketable Inventories | Other income (expense) - net | ||||
Readily Marketable Inventories | ||||
Total gains and losses (realized/unrealized) included in cost of goods sold | 0 | 0 | ||
Derivatives, Net | ||||
Derivatives, Net | ||||
Balance at beginning of period | 27 | (68) | (31) | (8) |
Total gains and losses (realized/unrealized) included in cost of goods sold | 132 | 20 | ||
Purchases | 0 | 0 | 0 | 3 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | (2) |
Settlements | 0 | (83) | 0 | (49) |
Transfers into Level 3 | 7 | (1) | 28 | (26) |
Transfers out of Level 3 | (15) | 0 | (14) | 42 |
Translation adjustment | 0 | (1) | ||
Balance at end of period | 10 | (20) | 10 | (20) |
Total | ||||
Changes in unrealized gains (losses) relating to Level 3 assets and liabilities | (25) | 91 | 26 | (29) |
Derivatives, Net | Cost of goods sold | ||||
Derivatives, Net | ||||
Total gains and losses (realized/unrealized) included in cost of goods sold | (9) | 28 | ||
Derivatives, Net | Other income (expense) - net | ||||
Derivatives, Net | ||||
Total gains and losses (realized/unrealized) included in cost of goods sold | 0 | 0 | ||
Trade Accounts Payable | ||||
Trade Accounts Payable/Other | ||||
Balance at beginning of period | (447) | (213) | (23) | (9) |
Total gains and losses (realized/unrealized) included in cost of goods sold | 5 | 8 | ||
Purchases | (80) | (39) | (446) | (224) |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 52 | 0 | 325 | 0 |
Transfers into Level 3 | (2) | (30) | (347) | (189) |
Transfers out of Level 3 | 146 | 185 | 146 | 322 |
Translation adjustment | 42 | 41 | ||
Balance at end of period | (271) | (92) | (271) | (92) |
Total | ||||
Changes in unrealized gains (losses) relating to Level 3 assets and liabilities | 17 | $ 5 | 27 | $ 8 |
Trade Accounts Payable | Cost of goods sold | ||||
Trade Accounts Payable/Other | ||||
Total gains and losses (realized/unrealized) included in cost of goods sold | 18 | 33 | ||
Trade Accounts Payable | Other income (expense) - net | ||||
Trade Accounts Payable/Other | ||||
Total gains and losses (realized/unrealized) included in cost of goods sold | 0 | 0 | ||
Other Current Assets | ||||
Trade Accounts Payable/Other | ||||
Balance at beginning of period | 70 | 0 | ||
Purchases | 0 | 0 | ||
Sales | 0 | 0 | ||
Issuances | 0 | 0 | ||
Settlements | 0 | (84) | ||
Transfers into Level 3 | 0 | 218 | ||
Transfers out of Level 3 | 0 | 0 | ||
Translation adjustment | 1 | 1 | ||
Balance at end of period | 66 | 66 | ||
Other Current Assets | Cost of goods sold | ||||
Trade Accounts Payable/Other | ||||
Total gains and losses (realized/unrealized) included in cost of goods sold | 0 | 0 | ||
Other Current Assets | Other income (expense) - net | ||||
Trade Accounts Payable/Other | ||||
Total gains and losses (realized/unrealized) included in cost of goods sold | $ (5) | $ (69) |
DERIVATIVE INSTRUMENTS AND HE_3
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - DERIVATIVE POSITIONS (Details) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 USD ($) MMBTU MWh day t | Dec. 31, 2021 USD ($) MWh MMBTU day t | |
Interest rate | Long | Swaps | ||
Derivative | ||
Notional amount of derivative | $ 373 | $ 2,924 |
Interest rate | Long | Futures | ||
Derivative | ||
Notional amount of derivative | 0 | 0 |
Interest rate | Short | Swaps | ||
Derivative | ||
Notional amount of derivative | 1,726 | 2,506 |
Interest rate | Short | Futures | ||
Derivative | ||
Notional amount of derivative | 141 | 0 |
Foreign exchange | Long | Swaps | ||
Derivative | ||
Notional amount of derivative | 2,281 | 1,362 |
Foreign exchange | Long | Futures | ||
Derivative | ||
Notional amount of derivative | 0 | 0 |
Foreign exchange | Long | Forwards | ||
Derivative | ||
Notional amount of derivative | 11,476 | 12,961 |
Foreign exchange | Long | Options | ||
Derivative | ||
Delta | 105 | 88 |
Foreign exchange | Short | Swaps | ||
Derivative | ||
Notional amount of derivative | 1,799 | 1,422 |
Foreign exchange | Short | Futures | ||
Derivative | ||
Notional amount of derivative | 10 | 8 |
Foreign exchange | Short | Forwards | ||
Derivative | ||
Notional amount of derivative | 13,095 | 14,065 |
Foreign exchange | Short | Options | ||
Derivative | ||
Delta | $ 95 | $ 106 |
Agricultural commodities | Long | Swaps | ||
Derivative | ||
Nonmonetary notional amount of derivatives (in Metric Tons) | t | 0 | 33,250 |
Agricultural commodities | Long | Futures | ||
Derivative | ||
Nonmonetary notional amount of derivatives (in Metric Tons) | t | 0 | 0 |
Agricultural commodities | Long | Forwards | ||
Derivative | ||
Nonmonetary notional amount of derivatives (in Metric Tons) | t | 27,140,385 | 29,329,244 |
Agricultural commodities | Long | Options | ||
Derivative | ||
Nonmonetary notional amount of derivatives (in Metric Tons) | t | 300,204 | 218,106 |
Agricultural commodities | Short | Swaps | ||
Derivative | ||
Nonmonetary notional amount of derivatives (in Metric Tons) | t | 2,272,498 | 502,652 |
Agricultural commodities | Short | Futures | ||
Derivative | ||
Nonmonetary notional amount of derivatives (in Metric Tons) | t | 3,478,696 | 7,221,848 |
Agricultural commodities | Short | Forwards | ||
Derivative | ||
Nonmonetary notional amount of derivatives (in Metric Tons) | t | 31,127,699 | 34,810,969 |
Agricultural commodities | Short | Options | ||
Derivative | ||
Nonmonetary notional amount of derivatives (in Metric Tons) | t | 0 | 116,370 |
Ocean freight | Long | FFA | ||
Derivative | ||
Nonmonetary notional amount of derivatives (in Hire Days) | day | 0 | 0 |
Ocean freight | Long | Options | ||
Derivative | ||
Nonmonetary notional amount of derivatives (in Hire Days) | day | 372 | 548 |
Ocean freight | Short | FFA | ||
Derivative | ||
Nonmonetary notional amount of derivatives (in Hire Days) | day | 14,919 | 6,713 |
Ocean freight | Short | Options | ||
Derivative | ||
Nonmonetary notional amount of derivatives (in Hire Days) | day | 0 | 0 |
Natural gas | Long | Swaps | ||
Derivative | ||
Nonmonetary notional amount of derivatives (in MMBtus and Mwh) | MMBTU | 1,046,445 | 1,764,455 |
Natural gas | Long | Futures | ||
Derivative | ||
Nonmonetary notional amount of derivatives (in MMBtus and Mwh) | MMBTU | 6,759,096 | 5,147,500 |
Natural gas | Short | Swaps | ||
Derivative | ||
Nonmonetary notional amount of derivatives (in MMBtus and Mwh) | MMBTU | 0 | 0 |
Natural gas | Short | Futures | ||
Derivative | ||
Nonmonetary notional amount of derivatives (in MMBtus and Mwh) | MMBTU | 0 | 0 |
Energy - other | Long | Swaps | ||
Derivative | ||
Nonmonetary notional amount of derivatives (in Metric Tons) | t | 491,977 | 741,307 |
Energy - other | Short | Swaps | ||
Derivative | ||
Nonmonetary notional amount of derivatives (in Metric Tons) | t | 258,525 | 426,476 |
Electricity | Long | Swaps | ||
Derivative | ||
Nonmonetary notional amount of derivatives (in MMBtus and Mwh) | MWh | 536,325 | 670,973 |
Electricity | Short | Swaps | ||
Derivative | ||
Nonmonetary notional amount of derivatives (in MMBtus and Mwh) | MWh | 169,356 | 256,949 |
Energy - CO2 | Long | Futures | ||
Derivative | ||
Nonmonetary notional amount of derivatives (in Metric Tons) | t | 258,000 | 0 |
Energy - CO2 | Short | Futures | ||
Derivative | ||
Nonmonetary notional amount of derivatives (in Metric Tons) | t | 0 | 0 |
Other | Long | Swaps and futures | ||
Derivative | ||
Notional amount of derivative | $ 10 | $ 20 |
Other | Short | Swaps and futures | ||
Derivative | ||
Notional amount of derivative | 40 | 585 |
Fair value hedges | Interest rate | ||
Derivative | ||
Notional amount of derivative | 3,831 | 4,006 |
Cumulative adjustment to long-term debt from application of hedge accounting | (232) | 0 |
Carrying value of hedged debt | 3,579 | 3,990 |
Fair value hedges | Foreign exchange | ||
Derivative | ||
Notional amount of derivative | 225 | 267 |
Carrying value of hedged debt | 225 | 267 |
Cash flow hedges | Foreign exchange | ||
Derivative | ||
Amounts expected to be reclassified from AOCI to earnings in the next twelve months | 4 | |
Cash flow hedges | Foreign exchange | Forwards | ||
Derivative | ||
Notional amount of derivative | 306 | 148 |
Cash flow hedges | Foreign exchange | Options | ||
Derivative | ||
Notional amount of derivative | 30 | 60 |
Net investment hedges | Foreign exchange | ||
Derivative | ||
Notional amount of derivative | $ 945 | $ 1,020 |
DERIVATIVE INSTRUMENTS AND HE_4
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - EFFECT OF DERIVATIVE INSTRUMENTS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Net investment hedges | ||||
Derivative Instruments, Gain (Loss) | ||||
Gains and losses on derivatives used as fair value hedges of foreign currency risk / net investment hedges included in other comprehensive income (loss) during the period | $ 41 | $ (96) | $ (108) | $ (58) |
Cost of goods sold | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (loss) recognized in income on derivative instruments | 577 | (538) | (105) | (1,292) |
Interest expense | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (loss) recognized in income on derivative instruments | 3 | 7 | (3) | 14 |
Foreign exchange gains (losses) | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (loss) recognized in income on derivative instruments | 32 | (153) | 79 | (84) |
Other income (expense) | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (loss) recognized in income on derivative instruments | 1 | 1 | ||
Foreign currency | Fair value hedges | ||||
Derivative Instruments, Gain (Loss) | ||||
Gains and losses on derivatives used as fair value hedges of foreign currency risk / net investment hedges included in other comprehensive income (loss) during the period | 2 | (4) | 2 | (2) |
Foreign currency | Cash flow hedges | ||||
Derivative Instruments, Gain (Loss) | ||||
Gains and losses on derivative instruments used as cash flow hedges included in other comprehensive income (loss) during the period | 4 | 7 | 36 | 3 |
Amounts released from accumulated other comprehensive income (loss) during the period - Cash flow hedge of foreign currency risk | (5) | (2) | (7) | (3) |
Hedge accounting | Foreign currency | Net sales | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (loss) on hedge accounting | 5 | 1 | 7 | 1 |
Hedge accounting | Foreign currency | Foreign exchange gains (losses) | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (loss) on hedge accounting | (25) | 1 | (37) | (17) |
Hedge accounting | Interest rate | Interest expense | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (loss) on hedge accounting | 3 | 7 | (4) | 13 |
Economic hedges | Foreign currency | Cost of goods sold | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (loss) on economic hedges | (70) | 470 | 423 | 185 |
Economic hedges | Foreign currency | Foreign exchange gains (losses) | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (loss) on economic hedges | 57 | (154) | 116 | (67) |
Economic hedges | Commodities | Cost of goods sold | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (loss) on economic hedges | 638 | (1,139) | (618) | (1,736) |
Economic hedges | Other | Cost of goods sold | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (loss) on economic hedges | $ 9 | $ 131 | 90 | 259 |
Economic hedges | Interest rate | Interest expense | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (loss) on economic hedges | 1 | 1 | ||
Economic hedges | Interest rate | Other income (expense) | ||||
Derivative Instruments, Gain (Loss) | ||||
Gain (loss) on economic hedges | $ 1 | $ 1 |
DEBT (Details)
DEBT (Details) - USD ($) | 6 Months Ended | |||||||
Jul. 15, 2022 | Dec. 16, 2021 | Jul. 16, 2021 | Jun. 30, 2022 | Jul. 26, 2022 | Mar. 10, 2022 | Dec. 31, 2021 | Oct. 29, 2021 | |
Debt Instrument [Line Items] | ||||||||
Borrowings outstanding | $ 2,154,000,000 | $ 673,000,000 | ||||||
Carrying Value | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, including current portion | 4,365,000,000 | 5,291,000,000 | ||||||
Fair Value | Level 2 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, including current portion | 4,365,000,000 | 5,489,000,000 | ||||||
Delayed Draw Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount | 250,000,000 | 250,000,000 | $ 250,000,000 | |||||
Senior Notes 4.35 Percent Due 2024 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 4.35% | |||||||
Interest expense | 47,000,000 | |||||||
Amount paid for make-whole provision | 31,000,000 | |||||||
Senior Notes 4.35 Percent Due 2024 | De-designated hedges | ||||||||
Debt Instrument [Line Items] | ||||||||
Unrealized mark-to-market losses on terminated and de-designated interest rate hedges | 16,000,000 | |||||||
$750 Million Delayed Draw Term Loan | Delayed Draw Term Loan | Subsequent event | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount | $ 750,000,000 | |||||||
Liquidity Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility, borrowings outstanding | 0 | 0 | ||||||
Commercial paper program | ||||||||
Debt Instrument [Line Items] | ||||||||
Commercial paper, outstanding issuances | 0 | 0 | ||||||
Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | 5,565,000,000 | 5,565,000,000 | ||||||
Unused and available committed borrowing capacity | 5,815,000,000 | 5,815,000,000 | ||||||
Line of Credit | Revolving Credit Facility | Revolving Credit Facility Maturing July 2022 | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowings outstanding | 0 | 0 | ||||||
Maximum borrowing capacity | $ 1,000,000,000 | |||||||
Term of credit agreement | 364 days | |||||||
Option to add additional borrowing capacity, maximum amount | $ 250,000,000 | |||||||
Line of Credit | Revolving Credit Facility | Revolving Credit Facility Maturing July 2023 | Subsequent event | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 1,100,000,000 | |||||||
Term of credit agreement | 364 days | |||||||
Line of Credit | Revolving Credit Facility | Revolving Credit Facility Maturing July 2026 | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowings outstanding | 0 | 0 | ||||||
Maximum borrowing capacity | $ 1,350,000,000 | |||||||
Term of credit agreement | 5 years | |||||||
Option to add additional borrowing capacity, maximum amount | $ 200,000,000 | |||||||
Line of Credit | Revolving Credit Facility | Revolving Credit Facility Maturing October 2026 | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowings outstanding | 0 | 0 | ||||||
Maximum borrowing capacity | $ 865,000,000 | |||||||
Line of Credit | Revolving Credit Facility | Revolving Credit Facility Maturing December 2024 | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowings outstanding | 0 | 0 | ||||||
Maximum borrowing capacity | $ 1,750,000,000 | |||||||
Maximum additional commitments that may be made available | $ 250,000,000 | |||||||
Bilateral Credit Lines | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowings outstanding | 1,150,000,000 | 0 | ||||||
Local Bank Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowings outstanding | 1,004,000,000 | $ 673,000,000 | ||||||
Maximum | Commercial paper program | ||||||||
Debt Instrument [Line Items] | ||||||||
Commercial paper, outstanding issuances | $ 600,000,000 | |||||||
Maximum | Line of Credit | Revolving Credit Facility | Revolving Credit Facility Maturing December 2024 | ||||||||
Debt Instrument [Line Items] | ||||||||
Utilization fee percentage | 0.40% | |||||||
Maximum | Line of Credit | Revolving Credit Facility | Revolving Credit Facility Maturing December 2024 | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.30% | |||||||
Minimum | Line of Credit | Revolving Credit Facility | Revolving Credit Facility Maturing December 2024 | ||||||||
Debt Instrument [Line Items] | ||||||||
Utilization fee percentage | 0.10% | |||||||
Minimum | Line of Credit | Revolving Credit Facility | Revolving Credit Facility Maturing December 2024 | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 0.30% |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - Related parties - Less than | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Dec. 31, 2021 | |
Supplier Concentration | Cost of Goods Sold | ||||
Related Party Transactions | ||||
Related party purchase and sales composition (percent) | 7% | 7% | ||
Supplier Concentration | Trade Accounts Payable Benchmark | ||||
Related Party Transactions | ||||
Related party purchase and sales composition (percent) | 5% | 5% | ||
Customer Concentration | Net Sales | ||||
Related Party Transactions | ||||
Related party purchase and sales composition (percent) | 2% | 2% | ||
Customer Concentration | Accounts Receivable | ||||
Related Party Transactions | ||||
Related party purchase and sales composition (percent) | 2% | 2% |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Loss Contingencies and Guarantees | ||
Non-income tax claims | $ 178 | $ 182 |
Maximum Potential Future Payments | 543 | |
Non-income tax claims | ||
Loss Contingencies and Guarantees | ||
Non-income tax claims | 17 | 15 |
Labor claims | ||
Loss Contingencies and Guarantees | ||
Non-income tax claims | 69 | 72 |
Civil and other claims | ||
Loss Contingencies and Guarantees | ||
Non-income tax claims | 92 | 95 |
ICMS tax liability | Brazil | Tax return examination 1990 - Present | ||
Loss Contingencies and Guarantees | ||
Total assessment | 235 | 222 |
PIS COFINS liability | Brazil | Tax return examination 2004 - 2016 | ||
Loss Contingencies and Guarantees | ||
Total assessment | 347 | $ 228 |
Unconsolidated affiliates financing | ||
Loss Contingencies and Guarantees | ||
Maximum Potential Future Payments | 240 | |
Potential liability | 230 | |
Obligation related to outstanding guarantees | 5 | |
Residual value guarantee | ||
Loss Contingencies and Guarantees | ||
Maximum Potential Future Payments | 298 | |
Obligation related to outstanding guarantees | 0 | |
Other guarantees | ||
Loss Contingencies and Guarantees | ||
Maximum Potential Future Payments | $ 5 |
OTHER NON-CURRENT LIABILITIES_2
OTHER NON-CURRENT LIABILITIES (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | ||
Labor, legal and other provisions | $ 183 | $ 187 |
Pension and post-retirement obligations | 217 | 227 |
Uncertain income tax positions | 78 | 73 |
Unrealized loss on derivative contracts, at fair value | 230 | 49 |
Other | 108 | 122 |
Other non-current liabilities | 816 | $ 658 |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pre-tax gain recorded in other income (expense) - net | 37 | |
Decrease in recorded pension benefit obligations | 4 | |
Other Income (Expense) - Net | Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pre-tax gain recorded in other income (expense) - net | 41 | |
Other Income (Expense) - Net | Pension Plan | Non- Controlling Interests | ||
Defined Benefit Plan Disclosure [Line Items] | ||
After tax gain recorded in adjustment of redeemable noncontrolling interests | $ 12 |
REDEEMABLE NONCONTROLLING INT_2
REDEEMABLE NONCONTROLLING INTEREST (Details) - Loders | Jun. 30, 2022 |
Redeemable Noncontrolling Interest [Line Items] | |
Interest acquired | 70% |
Loders | |
Redeemable Noncontrolling Interest [Line Items] | |
Ownership interest by minority shareholder | 30% |
EQUITY - NARRATIVE (Details)
EQUITY - NARRATIVE (Details) | 3 Months Ended | 6 Months Ended | ||||||||||
May 12, 2022 $ / shares | May 11, 2022 $ / shares | Mar. 23, 2022 day $ / shares shares | Feb. 23, 2022 $ / shares | Jun. 30, 2022 $ / shares | Mar. 31, 2022 shares | Jun. 30, 2021 $ / shares | Jun. 30, 2022 $ / shares | Jun. 30, 2021 $ / shares | Mar. 22, 2022 shares | Feb. 16, 2022 $ / shares | Dec. 31, 2021 $ / shares | |
Class of Stock [Line Items] | ||||||||||||
Convertible perpetual preference shares, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||
Share price (in dollars per share) | $ 104.91 | |||||||||||
Dividends on preferred shares (in dollars per share) | $ 1.21875 | $ 1.21875 | $ 2.4375 | |||||||||
Dividends on common shares (in dollars per share) | $ 0.625 | $ 0.525 | $ 0.625 | $ 0.525 | $ 1.15 | $ 1.025 | ||||||
Increase in dividends declared on common stock (in dollars per share) | $ 0.10 | |||||||||||
Percentage increase in dividends declared on common stock | 19% | |||||||||||
Convertible Preference Shares | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Number of shares outstanding (in shares) | shares | 8,861,515 | 6,898,268 | ||||||||||
Dividends on preferred shares (in dollars per share) | $ 0.525 | |||||||||||
Convertible Perpetual Preference Shares | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Convertible preference shares accrued dividends (as a percent) | 4.875% | |||||||||||
Convertible perpetual preference shares, par value (in dollars per share) | $ 0.01 | |||||||||||
Number of trading days that share price is over a specified threshold to trigger conversion of the notes | day | 20 | |||||||||||
The consecutive trading days which must occur to trigger the conversion of the notes | day | 30 | |||||||||||
Target ratio of closing share price to conversion price as a condition for conversion or redemption of Convertible Notes (as a percent) | 130% | |||||||||||
Conversion price, convertible preference share (in dollars per share) | $ 77.8482 | $ 78.1322 | ||||||||||
Convertible preference share, common shares issued upon conversion | 1.2846 | |||||||||||
Convertible Preferred Stock | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Number of shares voluntarily converted (in shares) | shares | 1,415 | |||||||||||
Common Stock | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Number of shares after conversion (in shares) | shares | 1,816 |
EQUITY - AOCI (Details)
EQUITY - AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
AOCI, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 7,669 | |||
Other comprehensive income (loss) before reclassifications | $ (218) | $ 227 | 61 | $ (10) |
Amount reclassified from accumulated other comprehensive income (loss) | (5) | (1) | (26) | (2) |
Ending balance | 8,732 | 8,732 | ||
Pension Plan | ||||
AOCI, Net of Tax [Roll Forward] | ||||
Pre-tax gain recorded in other income (expense) - net | 27 | |||
Pre-tax gain recorded in other income (expense), tax expense | 10 | |||
Decrease in recorded pension benefit obligations | 4 | |||
Accumulated Other Comprehensive Income (Loss) | ||||
AOCI, Net of Tax [Roll Forward] | ||||
Beginning balance | (6,213) | (6,484) | (6,471) | (6,246) |
Ending balance | (6,436) | (6,258) | (6,436) | (6,258) |
Foreign Exchange Translation Adjustment | ||||
AOCI, Net of Tax [Roll Forward] | ||||
Beginning balance | (5,697) | (6,092) | (6,093) | (5,857) |
Other comprehensive income (loss) before reclassifications | (265) | 321 | 131 | 86 |
Amount reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Ending balance | (5,962) | (5,771) | (5,962) | (5,771) |
Deferred Gains (Losses) on Hedging Activities | ||||
AOCI, Net of Tax [Roll Forward] | ||||
Beginning balance | (373) | (218) | (254) | (215) |
Other comprehensive income (loss) before reclassifications | 47 | (92) | (70) | (94) |
Amount reclassified from accumulated other comprehensive income (loss) | (5) | (1) | (7) | (2) |
Ending balance | (331) | (311) | (331) | (311) |
Pension and Other Postretirement Liability Adjustments | ||||
AOCI, Net of Tax [Roll Forward] | ||||
Beginning balance | (143) | (174) | (124) | (174) |
Other comprehensive income (loss) before reclassifications | 0 | (2) | 0 | (2) |
Amount reclassified from accumulated other comprehensive income (loss) | 0 | 0 | (19) | 0 |
Ending balance | (143) | $ (176) | (143) | $ (176) |
Parent | Pension Plan | ||||
AOCI, Net of Tax [Roll Forward] | ||||
Pre-tax gain recorded in other income (expense) - net | 19 | |||
Pre-tax gain recorded in other income (expense), tax expense | 7 | |||
Non- Controlling Interests | Pension Plan | ||||
AOCI, Net of Tax [Roll Forward] | ||||
Pre-tax gain recorded in other income (expense) - net | 8 | |||
Pre-tax gain recorded in other income (expense), tax expense | $ 3 | |||
Non- Controlling Interests | Other Income (Expense) - Net | Pension Plan | ||||
AOCI, Net of Tax [Roll Forward] | ||||
After tax gain recorded in adjustment of redeemable noncontrolling interests | $ 12 |
EARNINGS PER COMMON SHARE (Deta
EARNINGS PER COMMON SHARE (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Feb. 23, 2022 $ / shares | Jun. 30, 2022 USD ($) $ / shares shares | Jun. 30, 2021 USD ($) $ / shares shares | Jun. 30, 2022 USD ($) $ / shares shares | Jun. 30, 2021 USD ($) $ / shares shares | Mar. 23, 2022 $ / shares | Dec. 31, 2021 $ / shares | |
Earnings Per Share | |||||||
Net income (loss) | $ 225 | $ 369 | $ 921 | $ 1,286 | |||
Net (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests | (19) | (7) | (27) | (92) | |||
Net income (loss) attributable to Bunge | 206 | 362 | 894 | 1,194 | |||
Convertible preference share dividends | 0 | (9) | 0 | (17) | |||
Net income (loss) available to Bunge common shareholders | 206 | 353 | 894 | 1,177 | |||
Add back convertible preference share dividends | 0 | 9 | 0 | 17 | |||
Net income (loss) available to Bunge common shareholders - Diluted | $ 206 | $ 362 | $ 894 | $ 1,194 | |||
Weighted-average number of common shares outstanding: | |||||||
Basic (in shares) | shares | 151,799,677 | 141,536,775 | 147,183,925 | 140,942,885 | |||
Effect of dilutive shares: | |||||||
—stock options and awards (in shares) | shares | 2,273,037 | 2,386,791 | 2,687,006 | 2,397,053 | |||
—convertible preference shares (in shares) | shares | 0 | 8,756,388 | 3,966,347 | 8,756,388 | |||
Diluted (in shares) | shares | 154,072,714 | 152,679,954 | 153,837,278 | 152,096,326 | |||
Earnings per common share: | |||||||
Net income (loss) attributable to Bunge common shareholders—basic (in dollars per share) | $ / shares | $ 1.36 | $ 2.50 | $ 6.08 | $ 8.35 | |||
Net income (loss) attributable to Bunge common shareholders—diluted (in dollars per share) | $ / shares | 1.34 | 2.37 | 5.81 | 7.85 | |||
Convertible perpetual preference shares, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||||
Dividends on preferred shares (in dollars per share) | $ / shares | $ 1.21875 | $ 1.21875 | $ 2.4375 | ||||
Convertible Perpetual Preference Shares | |||||||
Earnings per common share: | |||||||
Convertible preference share, common shares issued upon conversion | 1.2846 | ||||||
Convertible perpetual preference shares, par value (in dollars per share) | $ / shares | $ 0.01 | ||||||
Stock options and contingently issuable restricted stock units | |||||||
Earnings per common share: | |||||||
Antidilutive shares excluded from computation of EPS (in shares) | shares | 0 | 0 | 0 | 2,000,000 |
SEGMENT INFORMATION - NARRATIVE
SEGMENT INFORMATION - NARRATIVE (Details) | 6 Months Ended |
Jun. 30, 2022 segment | |
Segment Reporting Information | |
Number of reportable segments | 4 |
Sugar and Bioenergy | BP Bunge Bioenergia | |
Segment Reporting Information | |
Equity method investment, ownership percentage | 50% |
SEGMENT INFORMATION - FINANCIAL
SEGMENT INFORMATION - FINANCIAL INFORMATION BY SEGMENT (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Operating Segment Information | |||||
Net sales | $ 17,933 | $ 15,391 | $ 33,813 | $ 28,352 | |
Cost of goods sold | (17,161) | (14,726) | (31,837) | (26,540) | |
Gross profit | 772 | 665 | 1,976 | 1,812 | |
Selling, general and administrative expenses | (334) | (297) | (642) | (568) | |
Foreign exchange gains (losses) | (110) | 35 | (98) | 25 | |
EBIT attributable to noncontrolling interests | (20) | (8) | (33) | (95) | |
Other income (expense) – net | (6) | 35 | (53) | 298 | |
Income (loss) from affiliates | 20 | 29 | 65 | 73 | |
Total segment EBIT | 322 | 459 | 1,215 | 1,545 | |
Total assets | 27,419 | 25,085 | 27,419 | 25,085 | $ 23,819 |
Inter—Segment Revenues | |||||
Operating Segment Information | |||||
Net sales | (3,070) | (2,185) | (6,044) | (3,846) | |
Selling, general and administrative expenses | 0 | 0 | 0 | 0 | |
Foreign exchange gains (losses) | 0 | 0 | 0 | 0 | |
EBIT attributable to noncontrolling interests | 0 | 0 | 0 | 0 | |
Other income (expense) – net | 0 | 0 | 0 | 0 | |
Income (loss) from affiliates | 0 | 0 | 0 | 0 | |
Total segment EBIT | 0 | 0 | 0 | 0 | |
Total assets | 0 | 0 | 0 | 0 | |
Inter—Segment Revenues | Agribusiness | |||||
Operating Segment Information | |||||
Net sales | (2,892) | (2,045) | (5,379) | (3,511) | |
Inter—Segment Revenues | Refined and Specialty Oils | |||||
Operating Segment Information | |||||
Net sales | (86) | (125) | (198) | (227) | |
Inter—Segment Revenues | Milling | |||||
Operating Segment Information | |||||
Net sales | (92) | (15) | (467) | (108) | |
Inter—Segment Revenues | Sugar and Bioenergy | |||||
Operating Segment Information | |||||
Net sales | 0 | 0 | 0 | 0 | |
Operating | Agribusiness | |||||
Operating Segment Information | |||||
Net sales | 12,747 | 11,654 | 23,978 | 21,444 | |
Cost of goods sold | (12,431) | (11,244) | (22,798) | (20,149) | |
Gross profit | 316 | 410 | 1,180 | 1,295 | |
Selling, general and administrative expenses | (119) | (114) | (240) | (194) | |
Foreign exchange gains (losses) | (93) | 36 | (84) | 29 | |
EBIT attributable to noncontrolling interests | (13) | (3) | (17) | (11) | |
Other income (expense) – net | (14) | 24 | (77) | 46 | |
Income (loss) from affiliates | 16 | 11 | 30 | 35 | |
Total segment EBIT | 93 | 364 | 792 | 1,200 | |
Total assets | 18,889 | 18,046 | 18,889 | 18,046 | |
Operating | Refined and Specialty Oils | |||||
Operating Segment Information | |||||
Net sales | 4,445 | 3,198 | 8,421 | 5,924 | |
Cost of goods sold | (4,120) | (3,003) | (7,834) | (5,494) | |
Gross profit | 325 | 195 | 587 | 430 | |
Selling, general and administrative expenses | (87) | (90) | (176) | (176) | |
Foreign exchange gains (losses) | (8) | 1 | (8) | 2 | |
EBIT attributable to noncontrolling interests | (7) | (5) | (4) | (83) | |
Other income (expense) – net | (5) | 1 | (8) | 237 | |
Income (loss) from affiliates | 0 | 0 | 0 | 0 | |
Total segment EBIT | 218 | 102 | 391 | 410 | |
Total assets | 4,616 | 4,061 | 4,616 | 4,061 | |
Operating | Milling | |||||
Operating Segment Information | |||||
Net sales | 677 | 471 | 1,280 | 862 | |
Cost of goods sold | (551) | (414) | (1,083) | (771) | |
Gross profit | 126 | 57 | 197 | 91 | |
Selling, general and administrative expenses | (28) | (25) | (52) | (48) | |
Foreign exchange gains (losses) | 0 | 2 | 3 | 0 | |
EBIT attributable to noncontrolling interests | (1) | 0 | (1) | (1) | |
Other income (expense) – net | 0 | 0 | 0 | 0 | |
Income (loss) from affiliates | 0 | 0 | 0 | 0 | |
Total segment EBIT | 97 | 34 | 147 | 42 | |
Total assets | 1,488 | 1,362 | 1,488 | 1,362 | |
Operating | Sugar and Bioenergy | |||||
Operating Segment Information | |||||
Net sales | 57 | 68 | 121 | 122 | |
Cost of goods sold | (55) | (67) | (117) | (120) | |
Gross profit | 2 | 1 | 4 | 2 | |
Selling, general and administrative expenses | 0 | 0 | 0 | 0 | |
Foreign exchange gains (losses) | 0 | 0 | 0 | 0 | |
EBIT attributable to noncontrolling interests | 0 | 0 | 0 | 0 | |
Other income (expense) – net | 0 | 0 | 0 | 0 | |
Income (loss) from affiliates | 4 | 18 | 36 | 37 | |
Total segment EBIT | 6 | 19 | 40 | 39 | |
Total assets | 376 | 171 | 376 | 171 | |
Corporate and Other | |||||
Operating Segment Information | |||||
Net sales | 7 | 0 | 13 | 0 | |
Cost of goods sold | (4) | 2 | (5) | (6) | |
Gross profit | 3 | 2 | 8 | (6) | |
Selling, general and administrative expenses | (100) | (68) | (174) | (150) | |
Foreign exchange gains (losses) | (9) | (4) | (9) | (6) | |
EBIT attributable to noncontrolling interests | 1 | 0 | (11) | 0 | |
Other income (expense) – net | 13 | 10 | 32 | 15 | |
Income (loss) from affiliates | 0 | 0 | (1) | 1 | |
Total segment EBIT | (92) | (60) | (155) | (146) | |
Total assets | $ 2,050 | $ 1,445 | 2,050 | 1,445 | |
Corporate and Other | Sugar and Bioenergy | |||||
Operating Segment Information | |||||
Net sales | $ 13 | $ 0 |
SEGMENT INFORMATION - NET INCOM
SEGMENT INFORMATION - NET INCOME TO SEGMENT EBIT (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Reconciliation of total segment EBIT: | ||||
Net income (loss) attributable to Bunge | $ 206 | $ 362 | $ 894 | $ 1,194 |
Interest income | (11) | (6) | (20) | (15) |
Interest expense | 92 | 54 | 203 | 127 |
Income tax expense (benefit) | 36 | 50 | 144 | 242 |
Noncontrolling interests' share of interest and tax | (1) | (1) | (6) | (3) |
Total Segment EBIT from continuing operations | $ 322 | $ 459 | $ 1,215 | $ 1,545 |
SEGMENT INFORMATION - NET SALES
SEGMENT INFORMATION - NET SALES TO EXTERNAL CUSTOMERS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue from External Customer [Line Items] | ||||
Sales from other arrangements | $ 12,411 | $ 11,444 | $ 23,354 | $ 21,035 |
Sales from contracts with customers | 5,522 | 3,947 | 10,459 | 7,317 |
Net sales to external customers | 17,933 | 15,391 | 33,813 | 28,352 |
Corporate and Other | ||||
Revenue from External Customer [Line Items] | ||||
Sales from other arrangements | 0 | 0 | ||
Sales from contracts with customers | 7 | 0 | ||
Net sales to external customers | 7 | 0 | 13 | 0 |
Agribusiness | Operating | ||||
Revenue from External Customer [Line Items] | ||||
Sales from other arrangements | 11,929 | 11,128 | 22,496 | 20,486 |
Sales from contracts with customers | 818 | 526 | 1,482 | 958 |
Net sales to external customers | 12,747 | 11,654 | 23,978 | 21,444 |
Refined and Specialty Oils | Operating | ||||
Revenue from External Customer [Line Items] | ||||
Sales from other arrangements | 379 | 243 | 630 | 429 |
Sales from contracts with customers | 4,066 | 2,955 | 7,791 | 5,495 |
Net sales to external customers | 4,445 | 3,198 | 8,421 | 5,924 |
Milling | Operating | ||||
Revenue from External Customer [Line Items] | ||||
Sales from other arrangements | 47 | 6 | 109 | 0 |
Sales from contracts with customers | 630 | 465 | 1,171 | 862 |
Net sales to external customers | 677 | 471 | 1,280 | 862 |
Sugar and Bioenergy | Operating | ||||
Revenue from External Customer [Line Items] | ||||
Sales from other arrangements | 56 | 67 | 119 | 120 |
Sales from contracts with customers | 1 | 1 | 2 | 2 |
Net sales to external customers | $ 57 | $ 68 | 121 | 122 |
Sugar and Bioenergy | Corporate and Other | ||||
Revenue from External Customer [Line Items] | ||||
Sales from other arrangements | 0 | 0 | ||
Sales from contracts with customers | 13 | 0 | ||
Net sales to external customers | $ 13 | $ 0 |