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Other Current Assets
12 Months Ended
Dec. 31, 2010
Other Current Assets  
Other Current Assets

5. Other Current Assets

        Other current assets consist of the following:

 
  December 31,  
(US$ in millions)
  2010   2009  

Prepaid commodity purchase contracts (1)

  $ 267   $ 110  

Secured advances to suppliers (2)

    245     275  

Unrealized gains on derivative contracts

    2,619     1,202  

Recoverable taxes—current

    500     680  

Margin deposits (3)

    926     530  

Marketable securities

    39     15  

Other

    872     687  
           

Total

  $ 5,468   $ 3,499  
           

(1)
Prepaid commodity purchase contracts represent advance payments against fixed priced contracts for future delivery of specified quantities of agricultural commodities. These contracts are recorded at fair value based on prices of the underlying agricultural commodities.

(2)
Bunge provides cash advances to suppliers, primarily Brazilian farmers of soybeans and other agricultural commodities, to finance a portion of the suppliers' production costs. These advances are strictly financial in nature. Bunge does not bear any of the costs or risks associated with the related growing crops. The advances are largely collateralized by the farmer's crop, land and physical assets, carry a local market interest rate and settle when the farmer's crop is harvested and sold. The secured advances to farmers are reported net of allowances of $3 million at December 31, 2010 and 2009. Changes in the allowance for 2010 included an increase of $1 million for additional bad debt provisions and a reduction in the allowance for recoveries of $1 million. Changes in the allowance for 2009 included an increase of $1 million for additional bad debt provisions and a reduction as the result of foreign exchange adjustments of $1 million.


Interest earned on secured advances to suppliers of $25 million, $41 million and $48 million for 2010, 2009, and 2008, respectively, is included in net sales in the consolidated statements of income.

(3)
Margin deposits include U.S. treasury securities at fair value and cash.