v2.4.0.6
Operating Segments and Geographic Areas (Tables)
12 Months Ended
Dec. 31, 2010
Operating Segments and Geographic Areas  
Operating Segment Information

(US$ in millions)
  Agribusiness   Sugar and
Bioenergy
  Edible Oil
Products
  Milling
Products
  Fertilizer   Unallocated   Total  

2010

                                           

Net sales to external customers

  $ 30,138   $ 4,455   $ 6,783   $ 1,605   $ 2,726   $   $ 45,707  

Inter-segment revenues

    3,902     24     96     41     115     (4,178 )    

Gross profit(1)

    1,660     101     427     168     155         2,511  

Foreign exchange gain (loss)

    (4 )   30         (1 )   (23 )       2  

Equity in earnings of affiliates

    18     (6 )       3     12         27  

Noncontrolling interest(2)

    (47 )   9     (5 )       (35 )   44     (34 )

Other income (expense)

    2     (8 )   (10 )   5     (15 )       (26 )

Segment EBIT(3)

    840     (13 )   80     67     2,344     (90 )   3,228  

Depreciation, depletion and amortization expense

    (179 )   (116 )   (78 )   (27 )   (43 )       (443 )

Investments in affiliates

    509     20     15     13     52         609  

Total assets

    16,100     4,679     2,243     771     2,208         26,001  

Capital expenditures

    409     365     66     23     182     27     1,072  

2009

                                           

Net sales to external customers

  $ 27,934     2,577   $ 6,184   $ 1,527   $ 3,704   $   $ 41,926  

Inter-segment revenues

    3,462     77     131     17     18     (3,705 )    

Gross profit(1)

    1,330     49     412     152     (739 )       1,204  

Foreign exchange gain (loss)

    216     2     (4 )   (1 )   256         469  

Equity in earnings of affiliates

    15     (12 )   86     4     (13 )       80  

Noncontrolling interest(2)

    (26 )   6     (10 )       87     (31 )   26  

Other income (expense)

    (4 )   2     (7 )   (1 )   (15 )       (25 )

Segment EBIT

    812     8     181     58     (616 )       443  

Depreciation, depletion and amortization expense

    (179 )   (15 )   (73 )   (27 )   (149 )       (443 )

Investments in affiliates

    506     20     15     14     67         622  

Total assets

    11,172     2,691     2,030     670     4,683     40     21,286  

Capital expenditures

    222     257     55     24     329     31     918  

2008

                                           

Net sales to external customers

  $ 35,670     1,018   $ 8,216   $ 1,810   $ 5,860   $   $ 52,574  

Inter-segment revenues

    7,871     289     112     6     173     (8,451 )    

Gross profit(1)

    2,009     20     356     202     1,449         4,036  

Foreign exchange gain (loss)

    (196 )   (2 )   (22 )   1     (530 )       (749 )

Equity in earnings of affiliates

    12     (6 )   17     4     7         34  

Noncontrolling interest(2)

    (26 )   2     (8 )       (323 )   93     (262 )

Other income (expense)

    (21 )   15     14         2         10  

Segment EBIT

    959     (10 )   (11 )   104     321         1,363  

Depreciation, depletion and amortization expense

    (178 )   (8 )   (74 )   (18 )   (161 )       (439 )

Investments in affiliates

    484     41     155     12     69         761  

Total assets

    11,404     795     2,093     597     5,030     311     20,230  

Capital expenditures

    286     177     101     70     230     32     896  

(1)
In 2010, Bunge recorded pretax impairment charges of $77 million in cost of goods sold related to its operations in Europe, Brazil and the U.S. Of these pretax impairment charges $35 million of these charges was allocated to the agribusiness segment, $28 million to the edible oil products segment and $14 million to the milling products segment. In addition, Bunge recorded pretax restructuring charges of $19 million in cost of goods sold, related primarily to termination benefit costs of its U.S. and Brazil operations, which it allocated $10 million, $1 million, $4 million and $4 million to its agribusiness, sugar and bioenergy, edible oil products and fertilizer segment, respectively. Bunge also recorded $10 million in selling, general and administrative expenses, related to its Brazilian operations, which it allocated $3 million, $3 million, $3 million and $1 million to its agribusiness, sugar and bioenergy, edible oil products and milling products segment, respectively, in its consolidated statements of income (see Note 9 of the notes to the consolidated financial statements).

In 2009, Bunge recorded pretax impairment charges of $5 million in cost of goods sold, relating to the permanent closure of a smaller, older and less efficient oilseed processing and refining facility, in its agribusiness segment. In addition, Bunge recorded pretax impairment charges of $26 million in selling, general and administrative expenses, relating to the write-down of certain real estate assets and a biodiesel equity investment, in its agribusiness segment.

In 2008, Bunge recorded pretax asset impairment and restructuring charges of $23 million in the agribusiness segment and $3 million in the edible oil products segment. The impairment and restructuring charges related to permanent closure of older less efficient facilities and related employee termination costs, and environmental expenses. These impairment and restructuring charges are recorded in cost of goods sold in Bunge's consolidated statements of income (see Note 9 of the notes to the consolidated financial statements).

(2)
Includes noncontrolling interest share of interest and tax to reconcile to consolidated net income attributable to noncontrolling interest and other amounts not attributable to Bunge's operating segments.

(3)
In 2010, Bunge sold its Brazilian fertilizer nutrients assets, including its interest in Fertilizantes Fosfatados S.A. (Fosfertil). Bunge recognized a pretax gain of $2,440 million on this transaction which is included in segment EBIT (see Note 3 of the notes to the consolidated financial statements). Also, included in segment EBIT for 2010 is an unallocated loss of $90 million related to loss on extinguishment of debt (see Note 17 of the notes to the consolidated financial statements).
Reconciliation of total segment EBIT to net income attributable to Bunge

 
  Year Ended December 31,  
(US$ in millions)
  2010   2009   2008  

Total segment EBIT

  $ 3,228   $ 443   $ 1,363  

Interest income

    69     122     214  

Interest expense

    (298 )   (283 )   (361 )

Income tax (expense) benefit

    (689 )   110     (245 )

Noncontrolling interest share of interest and tax

    44     (31 )   93  
               

Net income attributable to Bunge

  $ 2,354   $ 361   $ 1,064  
               
Net sales by product group to external customers

 
  Year Ended December 31,  
(US$ in millions)
  2010   2009   2008  

Agricultural commodities products

  $ 30,138   $ 27,934   $ 35,670  

Sugar and bioenergy products

    4,455     2,577     1,018  

Edible oil products

    6,783     6,184     8,216  

Wheat milling products

    1,082     985     1,285  

Corn milling products

    523     542     525  

Fertilizer products

    2,726     3,704     5,860  
               

Total

  $ 45,707   $ 41,926   $ 52,574  
               
Geographic area information for net sales to external customers, determined based on the location of the subsidiary making the sale, and long-lived assets

 
  Year Ended December 31,  
(US$ in millions)
  2010   2009   2008  

Net sales to external customers:

                   

Europe

  $ 15,490   $ 13,815   $ 18,189  

United States

    10,441     10,267     12,153  

Brazil

    9,027     9,203     11,998  

Asia

    6,136     5,385     5,524  

Argentina

    2,918     1,836     2,730  

Canada

    1,658     1,388     1,954  

Rest of world

    37     32     26  
               

Total

  $ 45,707   $ 41,926   $ 52,574  
               

  Year Ended December 31,  
(US$ in millions)
  2010   2009   2008  

Long-lived assets (1):

                   
 

Europe

  $ 986   $ 1,021   $ 1,080  
 

United States

    1,176     977     904  
 

Brazil

    4,103     3,971     2,620  
 

Asia

    279     178     161  
 

Argentina

    300     228     226  
 

Canada

    172     174     157  
 

Rest of world

    25     17     14  
               

Total

  $ 7,041   $ 6,566   $ 5,162  
               


 


(1)
Long-lived assets include property, plant and equipment, net, goodwill and other intangible assets, net and investments in affiliates.