Employee Defined Benefit Plans—Certain U.S., Canadian, European and Brazilian based subsidiaries of Bunge sponsor non-contributory defined benefit pension plans covering substantially all employees of the subsidiaries. The plans provide benefits based primarily on participants' salary and length of service.

The funding policies for Bunge's defined benefit pension plans are determined in accordance with statutory funding requirements. The most significant defined benefits plan is in the United States. The U.S. funding policy requires at least those amounts required by the Pension Protection Act of 2006. Assets of the plans consist primarily of equity and fixed income investments.

Plan Amendments and Transfers In—At December 31, 2010, there was a transfer in of assets and liabilities of a plan sponsored by one of Bunge's European subsidiaries due to statutory charges. This plan was previously accounted for as a defined contribution plan. In 2009, there was a transfer in that resulted from certain plan combinations in Bunge's European operations. There were no significant amendments to Bunge's employee benefit plans during the years ended December 31, 2010 and 2008.

Plan Settlement and Transfers Out—In 2010, there was a transfer out that resulted from the divestiture of Bunge's Brazilian fertilizer nutrients assets (see Note 3 of the notes to the consolidated financial statements), which included its Brazil-based fertilizer subsidiary, Ultrafertil, SA (Ultrafertil). Ultrafertil was a participating sponsor in a frozen multiple-employer defined benefit pension plan (the "Petros Plan") that was managed by Fundaçao Petrobras de Securidade Social (Petros). The Petros Plan began in 1970 prior to the Brazilian government's deregulation of the fertilizer industry in Brazil. The Petros Plan was funded in accordance with Brazilian statutory requirements. The sale of Bunge's Brazilian fertilizer nutrients assets was accounted for as a settlement of the Petros Plan of approximately $42 million. In 2009, Bunge terminated certain of its Canadian plans which resulted in a $7 million settlement.

The following table sets forth in aggregate a reconciliation of the changes in the U.S. and foreign defined benefit pension plans' benefit obligations, assets and funded status at December 31, 2010 and 2009 for plans with assets in excess of benefit obligations and plans with benefit obligations in excess of plan assets. A measurement date of December 31, Bunge's fiscal year end, was used for all plans.

	U.S. Pension Benefits December 31,						Foreign Pension Benefits December 31,

(US$ in millions)	2010			2009			2010			2009
Change in benefit obligations:
Benefit obligation as of beginning of year	$	394		$	346		$	479		$	328
Service cost		13			12			3			3
Interest cost		24			22			22			41
Actuarial loss (gain), net		19			29			9			28
Employee contributions		—			—			1			2
Net transfers in (out)		—			—			(398	)		14
Plan amendments		—			—			1			—
Plan settlements		—			—			42			(7	)
Effect of plan combinations		—			—			—			(8	)
Benefits paid		(17	)		(14	)		(19	)		(27	)
Expenses paid		(1	)		(1	)		—			—
Impact of foreign exchange rates		—			—			(4	)		105

Benefit obligation as of end of year	$	432		$	394		$	136		$	479

Change in plan assets:
Fair value of plan assets as of beginning of year	$	298		$	220		$	493		$	368
Actual return on plan assets		48			48			28			29
Employer contributions		2			45			14			10
Employee contributions		—			—			1			2
Plan settlements		—			—			(2	)		(7	)
Effect of plan combinations		—			—			—			(2	)
Divestitures		—			—			(398	)		—
Benefits paid		(17	)		(14	)		(19	)		(27	)
Expenses paid		(1	)		(1	)		—			—
Impact of foreign exchange rates		—			—			(2	)		120

Fair value of plan assets as of end of year	$	330		$	298		$	115		$	493

Funded (unfunded) status and net amounts recognized:
Plan assets (less than) in excess of benefit obligation	$	(102	)	$	(96	)	$	(21	)	$	14
Net (liability) asset recognized in the balance sheet	$	(102	)	$	(96	)	$	(21	)	$	14

Amounts recognized in the balance sheet consist of:
Non-current assets	$	2		$	1		$	10		$	69
Current liabilities		(1	)		(1	)		(2	)		(10	)
Non-current liabilities		(103	)		(96	)		(29	)		(45	)

Net (liability) asset recognized	$	(102	)	$	(96	)	$	(21	)	$	14

Included in accumulated other comprehensive income at December 31, 2010 are the following amounts that have not yet been recognized in net periodic benefit costs: unrecognized initial net asset of $1 million ($1 million, net of tax), unrecognized prior service cost of $9 million ($6 million, net of tax) and unrecognized actuarial loss of $110 million ($71 million, net of tax). The prior service cost included in accumulated other comprehensive income that is expected to be recognized in net periodic benefit costs in 2011 is $2 million ($1 million, net of tax) and unrecognized actuarial loss of $6 million ($4 million, net of tax).

Bunge has aggregated certain U.S. and foreign defined benefit pension plans with projected benefit obligations in excess of fair value of plan assets with pension plans that have fair value of plan assets in excess of projected benefit obligations. At December 31, 2010, the $432 million and $136 million projected benefit obligations for U.S. and foreign plans, respectively, include plans with projected benefit obligations of $381 million and $39 million, respectively, which were in excess of the fair value of related plan assets of $276 million and $8 million, respectively. At December 31, 2009, the $394 million and $479 million projected benefit obligations for U.S. and foreign plans, respectively, include plans with projected benefit obligations of $377 million and $64 million, respectively, which were in excess of the fair value of related plan assets of $281 million and $9 million, respectively. The accumulated benefit obligation for the U.S. and foreign defined benefit pension plans, respectively, was $381 million and $81 million at December 31, 2010 and $347 million and $456 million at December 31, 2009, respectively.

The following table summarizes information relating to aggregated U.S. and foreign defined benefit pension plans with an accumulated benefit obligation in excess of plan assets:

The components of net periodic benefit costs are as follows for U.S. and foreign defined benefit plans:

	U.S. Pension Benefits December 31,									Foreign Pension Benefits December 31,

(US$ in millions)	2010			2009			2008			2010			2009			2008
Service cost	$	13		$	12		$	11		$	3		$	3		$	5
Interest cost		24			22			21			22			41			37
Expected return on plan assets		(24	)		(22	)		(20	)		(25	)		(43	)		(39	)
Amortization of prior service cost		2			2			1			1			1			1
Amortization of net loss		5			3			1			—			(2	)		—
Settlement loss recognized		—			—			—			26			1			—

Net periodic benefit costs	$	20		$	17		$	14		$	27		$	1		$	4

The weighted-average actuarial assumptions used in determining the benefit obligation under the U.S. and foreign defined benefit pension plans are as follows:

The weighted-average actuarial assumptions used in determining the net periodic benefit cost under the U.S. and foreign defined benefit pension plans are as follows:

The sponsoring subsidiaries select the expected long-term rate of return on assets in consultation with their investment advisors and actuaries. These rates are intended to reflect the average rates of earnings expected to be earned on the funds invested or to be invested to provide required plan benefits. The plans are assumed to continue in effect as long as assets are expected to be invested.

In estimating the expected long-term rate of return on assets, appropriate consideration is given to historical performance for the major asset classes held or anticipated to be held by the applicable plan trusts and to current forecasts of future rates of return for those asset classes. Cash flows and expenses are taken into consideration to the extent that the expected returns would be affected by them. As assets are generally held in qualified trusts, anticipated returns are not reduced for taxes.

Plan Assets—Beginning with the year ended December 31, 2009, Bunge adopted prospectively the guidance of a FASB issued standard that requires expanded and more detailed disclosures about its sponsored postretirement defined benefit plan assets, including Bunge's investment strategies, major categories of plan assets, concentration of risks within plan assets and valuation techniques used to measure the fair value of plan assets.

The objectives of the U.S. plans' trust funds are to sufficiently diversify plan assets to maintain a reasonable level of risk without imprudently sacrificing return, with a target asset allocation of approximately 40% fixed income securities and approximately 60% equities. Bunge implements its investment strategy through a combination of indexed mutual funds and a proprietary portfolio of fixed income securities. Bunge's policy is not to invest plan assets in Bunge Limited shares. Investments for the Petros Plan in Brazil were pooled, managed and administered by Petros. Bunge did not control the investment policies or practices of the Petros Plan.

Plan investments are stated at fair value which is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Plan classifies its investments in Level 1, which refers to securities that are actively traded on a public exchange and valued using quoted prices from active markets for identical assets, Level 2, which refers to securities not traded in an active market but for which observable market inputs are readily available and Level 3, which refers to other assets valued based on significant unobservable inputs. In 2009, Level 3 assets were comprised of Brazilian real estate investment assets of $23 million and relate to the Petros Plan (a multiple-employer plan) of Bunge's Fosfertil investment (see Note 3 of the notes to the consolidated financial statements). The assets of the Petros Plan were pooled, managed and administered by Petros. Bunge did not have control over the invested assets therefore additional Level 3 disclosure was not practicable at December 31, 2009.

The fair values of Bunge's U.S. and foreign defined benefit pension plans' assets as of the measurement date for 2010 and 2009, by category, are as follows:

(US$ in millions)		Fair Value Measurements at December 31, 2010

Asset Category		Total				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
		U.S. Pension Benefits		Foreign Pension Benefits		U.S. Pension Benefits		Foreign Pension Benefits		U.S. Pension Benefits		Foreign Pension Benefits		U.S. Pension Benefits		Foreign Pension Benefits
Equities:
	Mutual Funds (1)	$	213	$	20	$	213	$	1	$	—	$	19	$	—	$	—
Fixed income securities:
	Mutual Funds (2)		117		95		65		—		52		46		—		49

Total		$	330	$	115	$	278	$	1	$	52	$	65	$	—	$	49

(US$ in millions)		Fair Value Measurements at December 31, 2009

Asset Category		Total				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
		U.S. Pension Benefits		Foreign Pension Benefits		U.S. Pension Benefits		Foreign Pension Benefits		U.S. Pension Benefits		Foreign Pension Benefits		U.S. Pension Benefits		Foreign Pension Benefits
Cash		$	4	$	—	$	4	$	—	$	—	$	—	$	—	$	—
Equities:
	Mutual Funds (1)		247		153		247		138		—		15		—		—
Fixed income securities:
	Mutual Funds (2)		47		317		—		—		47		317		—		—
Real estate			—		23		—		—		—		—		—		23

Total		$	298	$	493	$	251	$	138	$	47	$	332	$	—	$	23

(US$ in millions)		Fair Value Measurements Using Significant Unobservable Input (Level 3)

		Insured
		Asset
Beginning balance, January 1, 2010		$	—
Actual return on plan assets:
	Relating to assets still held at December 31, 2010		—
	Relating to assets sold during 2010		—
Purchase, sales and settlements			—
Transfers into Level 3 (1)		$	49
Ending balance, December 31, 2010		$	49

Bunge expects to contribute $20 million and $9 million, respectively, to its U.S. and foreign based defined benefit pension plans in 2011.

The following benefit payments, which reflect future service as appropriate, are expected to be paid related to U.S. and foreign defined benefit pension plans:

Employee Defined Contribution Plans—Bunge also makes contributions to qualified defined contribution plans for eligible employees. Contributions to these plans amounted to $12 million, $17 million and $16 million in 2010, 2009 and 2008, respectively.