Certain U.S. and Brazil based subsidiaries of Bunge have benefit plans to provide certain postretirement healthcare benefits to eligible retired employees of those subsidiaries. The plans require minimum retiree contributions and define the maximum amount the subsidiaries will be obligated to pay under the plans. Bunge's policy is to fund these costs as they become payable.

Plan Amendments—In 2009, Bunge amended its postretirement healthcare plan in Brazil by increasing contributions from retirees to reduce its exposure to increased costs related to this plan.

Plan Settlements—In 2010, Bunge divested its Brazilian fertilizer nutrients assets (see Note 3 and 19 of the notes to the consolidated financial statements), which resulted in a settlement of approximately $32 million.

The following table sets forth a reconciliation of the changes in the postretirement healthcare benefit plans' benefit obligations and funded status at December 31, 2010 and 2009. A measurement date of December 31 was used for all plans.

	U.S. Postretirement Healthcare Benefits December 31,						Foreign Postretirement Healthcare Benefits December 31,

(US$ in millions)	2010			2009			2010			2009
Change in benefit obligations:
Benefit obligation as of beginning of year	$	26		$	25		$	111		$	72
Service cost		—			—			1			2
Interest cost		2			2			10			10
Actuarial (gain) loss, net		(6	)		1			12			11
Employee contributions		1			1			—			—
Net transfers in		—			—			—			4
Plan amendments		—			—			—			(8	)
Plan settlements/divestitures		—			—			(32	)		—
Effect of acquisitions		—			—			1			—
Benefits paid		(3	)		(3	)		(8	)		(6	)
Impact of foreign exchange rates		—			—			5			26

Benefit obligation as of end of year	$	20		$	26		$	100		$	111

Change in plan assets:
Employer contributions	$	2		$	2		$	8		$	6
Employee contributions		1			1			—			—
Benefits paid		(3	)		(3	)		(8	)		(6	)

Fair value of plan assets as of end of year	$	—		$	—		$	—		$	—

Funded status and net amounts recognized:
Plan assets less than benefit obligation	$	(20	)	$	(26	)	$	(100	)	$	(111	)
Net liability recognized in the balance sheet	$	(20	)	$	(26	)	$	(100	)	$	(111	)

Amounts recognized in the balance sheet consist of:
Current liabilities	$	(2	)	$	(3	)	$	(8	)	$	(7	)
Non-current liabilities		(18	)		(23	)		(92	)		(104	)

Net liability recognized	$	(20	)	$	(26	)	$	(100	)	$	(111	)

Included in accumulated other comprehensive income at December 31, 2010 are the following amounts for U.S. and foreign postretirement healthcare benefit plans that have not yet been recognized in net periodic benefit costs: unrecognized prior service credit of $1 million ($1 million, net of tax) and $6 million ($4 million, net of tax), respectively, and unrecognized actuarial gain (loss) of $1 million ($1 million, net of tax) and $(13) million (($8) million, net of tax), respectively. Bunge expects to recognize unrecognized prior service credits in 2011 of $1 million ($1 million, net of tax) and unrecognized actuarial losses of $1 million ($1 million, net of tax) as components of net periodic pension cost for its postretirement healthcare benefit plans

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

	U.S. Postretirement Healthcare Benefits Year Ended December 31,						Foreign Postretirement Healthcare Benefits Year Ended December 31,

(US$ in millions)	2010		2009		2008		2010			2009		2008
Service cost	$	—	$	—	$	—	$	1		$	2	$	1
Interest cost		2		2		1		10			10		6
Amortization of prior service cost		—		—		—		(1	)		—		—
Amortization of net loss		—		—		—		2			—		1
Settlement gain recognized		—		—		—		(26	)		—		—

Net periodic benefit costs	$	2	$	2	$	1	$	(14	)	$	12	$	8

The weighted-average discount rates used in determining the actuarial present value of the accumulated benefit obligations under the U.S. and foreign postretirement healthcare benefit plans are as follows:

The weighted-average discount rate assumptions used in determining the net periodic benefit costs under the U.S. and foreign postretirement healthcare benefit plans are as follows:

At December 31, 2010, for measurement purposes related to U.S. plans, an 11.18% annual rate of increase in the per capita cost of covered healthcare benefits was assumed for 2011, decreasing to 4.50% by 2029, remaining at that level thereafter. At December 31, 2009, for measurement purposes related to U.S. plans, a 12% annual rate of increase in the per capita cost of covered healthcare benefits was assumed for 2010. For foreign plans, the assumed annual rate of increase in the per capita cost of covered healthcare benefits averaged 8.07% and 8.95% for 2010 and 2009, respectively.

A one-percentage point change in assumed healthcare cost trend rates would have the following effects:

(US$ in millions)	One percentage point increase		One percentage point decrease

Effect on total service and interest cost—U.S. plans	$	—	$	—
Effect on total service and interest cost—Foreign plans	$	1	$	(1	)
Effect on postretirement benefit obligation—U.S. plans	$	1	$	(1	)
Effect on postretirement benefit obligation—Foreign plans	$	12	$	(10	)

Bunge expects to contribute $2 million to its U.S. postretirement healthcare benefit plan and $8 million to its foreign postretirement healthcare benefit plans in 2011.

The following benefit payments, which reflect expected future service as appropriate, are expected to be paid:

(US$ in millions)	U.S. Postretirement Healthcare Benefit Expected Payments		Foreign Postretirement Healthcare Benefit Expected Payments

2011	$	2	$	8
2012		2		8
2013		2		8
2014		2		9
2015		2		9
2016-2020		7		51