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21. SEGMENT INFORMATION
Bunge has five reportable segments—agribusiness, sugar and bioenergy, edible oil products, milling products and fertilizer, which are organized based upon similar economic characteristics and are similar in nature of products and services offered, the nature of production processes, the type and class of customer and distribution methods. The agribusiness segment is characterized by both inputs and outputs being agricultural commodities and thus high volume and low margin. The sugar and bioenergy segment involves sugarcane growing and milling in Brazil, sugar merchandising in various countries, as well as sugarcane-based ethanol production and corn-based ethanol investments and related activities. The edible oil products segment involves the manufacturing and marketing of products derived from vegetable oils. The milling products segment involves the manufacturing and marketing of products derived primarily from wheat and corn. Following the completion of the sale of Bunge’s Brazilian fertilizer nutrients assets in May 2010, the activities of the fertilizer segment include its fertilizer distribution business in Brazil as well as its operations in Argentina and the United States (see Note 4). Additionally, Bunge has retained its 50% interest in its fertilizer joint venture in Morocco.
The “Unallocated” column in the following table contains the reconciliation between the totals for reportable segments and Bunge consolidated totals, which consists primarily of corporate items not allocated to the operating segments, inter-segment eliminations. Transfers between the segments are generally valued at market. The revenues generated from these transfers are shown in the following table as “Inter-segment revenues” segments or inter-segment eliminations.
(US$ in millions)
|
|
|
|
|
|
|
Edible |
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
Sugar and |
|
Oil |
|
Milling |
|
|
|
|
|
|
|
|
September 30, 2011 |
|
Agribusiness |
|
Bioenergy |
|
Products |
|
Products |
|
Fertilizer |
|
Unallocated (1) |
|
Total |
|
|
Net sales to external customers |
|
$ |
10,025 |
|
$ |
1,731 |
|
$ |
2,337 |
|
$ |
525 |
|
$ |
998 |
|
$ |
— |
|
$ |
15,616 |
|
|
Inter–segment revenues |
|
1,227 |
|
— |
|
17 |
|
— |
|
15 |
|
(1,259 |
) |
— |
|
|
Gross profit |
|
462 |
|
19 |
|
107 |
|
56 |
|
62 |
|
— |
|
706 |
|
|
Foreign exchange gains (losses) |
|
(113 |
) |
(20 |
) |
1 |
|
— |
|
5 |
|
— |
|
(127 |
) |
|
Equity in earnings of affiliates |
|
1 |
|
(1 |
) |
— |
|
2 |
|
(1 |
) |
— |
|
1 |
|
|
Noncontrolling interest (1) |
|
10 |
|
(2 |
) |
(1 |
) |
— |
|
— |
|
— |
|
7 |
|
|
Other income (expense) – net |
|
1 |
|
— |
|
5 |
|
(1 |
) |
(7 |
) |
— |
|
(2 |
) |
|
Segment EBIT (2) |
|
159 |
|
(43 |
) |
28 |
|
24 |
|
23 |
|
— |
|
191 |
|
|
Depreciation, depletion and amortization |
|
(52 |
) |
(55 |
) |
(26 |
) |
(6 |
) |
(12 |
) |
— |
|
(151 |
) |
|
Total assets |
|
14,928 |
|
4,022 |
|
2,303 |
|
704 |
|
2,618 |
|
326 |
|
24,901 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales to external customers |
|
$ |
7,783 |
|
$ |
1,153 |
|
$ |
1,664 |
|
$ |
407 |
|
$ |
655 |
|
$ |
— |
|
$ |
11,662 |
|
|
Inter–segment revenues |
|
954 |
|
— |
|
36 |
|
— |
|
44 |
|
(1,034 |
) |
— |
|
|
Gross profit |
|
442 |
|
63 |
|
106 |
|
58 |
|
43 |
|
— |
|
712 |
|
|
Foreign exchange gains (losses) |
|
62 |
|
6 |
|
2 |
|
(1 |
) |
8 |
|
— |
|
77 |
|
|
Equity in earnings of affiliates |
|
5 |
|
(4 |
) |
— |
|
1 |
|
6 |
|
— |
|
8 |
|
|
Noncontrolling interest (1) |
|
(6 |
) |
— |
|
1 |
|
— |
|
— |
|
11 |
|
6 |
|
|
Other income (expense) – net |
|
(5 |
) |
— |
|
(6 |
) |
6 |
|
— |
|
— |
|
(5 |
) |
|
Segment EBIT (1) (2) (3) |
|
313 |
|
34 |
|
30 |
|
39 |
|
14 |
|
(90 |
) |
340 |
|
|
Depreciation, depletion and amortization |
|
(44 |
) |
(33 |
) |
(18 |
) |
(7 |
) |
(9 |
) |
— |
|
(111 |
) |
|
Total assets |
|
13,726 |
|
4,393 |
|
2,007 |
|
693 |
|
2,196 |
|
86 |
|
23,101 |
|
(US$ in millions)
|
|
|
|
|
|
|
Edible |
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
|
Sugar and |
|
Oil |
|
Milling |
|
|
|
|
|
|
|
|
September 30, 2011 |
|
Agribusiness |
|
Bioenergy |
|
Products |
|
Products |
|
Fertilizer |
|
Unallocated (1) |
|
Total |
|
|
Net sales to external customers |
|
$ |
27,800 |
|
$ |
4,212 |
|
$ |
6,553 |
|
$ |
1,516 |
|
$ |
2,217 |
|
$ |
— |
|
$ |
42,298 |
|
|
Inter–segment revenues |
|
3,685 |
|
— |
|
53 |
|
49 |
|
37 |
|
(3,824 |
) |
— |
|
|
Gross profit |
|
1,283 |
|
98 |
|
335 |
|
167 |
|
109 |
|
— |
|
1,992 |
|
|
Foreign exchange gains (losses) |
|
(10 |
) |
3 |
|
— |
|
— |
|
(1 |
) |
— |
|
(8 |
) |
|
Equity in earnings of affiliates |
|
36 |
|
(1 |
) |
— |
|
4 |
|
3 |
|
— |
|
42 |
|
|
Noncontrolling interest (1) |
|
(2 |
) |
(4 |
) |
(5 |
) |
— |
|
— |
|
19 |
|
8 |
|
|
Other income (expense) – net |
|
(5 |
) |
2 |
|
3 |
|
(2 |
) |
(11 |
) |
— |
|
(13 |
) |
|
Segment EBIT (2) |
|
731 |
|
(23 |
) |
92 |
|
79 |
|
2 |
|
— |
|
881 |
|
|
Depreciation, depletion and amortization |
|
(149 |
) |
(129 |
) |
(67 |
) |
(20 |
) |
(33 |
) |
— |
|
(398 |
) |
|
Total assets |
|
14,928 |
|
4,022 |
|
2,303 |
|
704 |
|
2,618 |
|
326 |
|
24,901 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales to external customers |
|
$ |
21,834 |
|
$ |
3,141 |
|
$ |
4,815 |
|
$ |
1,196 |
|
$ |
1,995 |
|
$ |
— |
|
$ |
32,981 |
|
|
Inter–segment revenues |
|
2,753 |
|
18 |
|
79 |
|
41 |
|
71 |
|
(2,962 |
) |
— |
|
|
Gross profit |
|
1,041 |
|
131 |
|
291 |
|
126 |
|
93 |
|
— |
|
1,682 |
|
|
Foreign exchange gains (losses) |
|
(15 |
) |
13 |
|
(2 |
) |
(1 |
) |
(17 |
) |
— |
|
(22 |
) |
|
Equity in earnings of affiliates |
|
12 |
|
(6 |
) |
— |
|
2 |
|
9 |
|
— |
|
17 |
|
|
Noncontrolling interest (1) |
|
(21 |
) |
6 |
|
(3 |
) |
— |
|
(35 |
) |
33 |
|
(20 |
) |
|
Other income (expense) – net |
|
(1 |
) |
(5 |
) |
(5 |
) |
6 |
|
(3 |
) |
— |
|
(8 |
) |
|
Segment EBIT (1) (2) (3) |
|
463 |
|
43 |
|
35 |
|
53 |
|
2,343 |
|
(90 |
) |
2,847 |
|
|
Depreciation, depletion and amortization |
|
(135 |
) |
(79 |
) |
(58 |
) |
(21 |
) |
(33 |
) |
— |
|
(326 |
) |
|
Total assets |
|
13,726 |
|
4,393 |
|
2,007 |
|
693 |
|
2,196 |
|
86 |
|
23,101 |
|
(1) Includes the noncontrolling interest share of interest and tax to reconcile to consolidated noncontrolling interest. In addition, included in unallocated for the three and nine months ended September 30, 2010, is $90 million loss on extinguishment of debt (see Note 14).
(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, EBIT is a financial measure that is widely used by analysts and investors in Bunge’s industries.
(3) On May 27, 2010, Bunge closed on the sale of its Brazilian fertilizer nutrients assets. As a result of this transaction, Bunge recorded a pre-tax gain on the sale of $2,440 million.
A reconciliation of total segment EBIT to net income attributable to Bunge follows:
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
|
September 30, |
|
September 30, |
|
|
(US$ in millions) |
|
2011 |
|
2010 |
|
2011 |
|
2010 |
|
|
Reconciliation of total segment earnings before interest and tax: |
|
|
|
|
|
|
|
|
|
|
Total segment EBIT |
|
$ |
191 |
|
$ |
340 |
|
$ |
881 |
|
$ |
2,847 |
|
|
Interest income |
|
28 |
|
20 |
|
72 |
|
62 |
|
|
Interest expense |
|
(80 |
) |
(62 |
) |
(222 |
) |
(241 |
) |
|
Income tax (expense) benefit |
|
1 |
|
(97 |
) |
(62 |
) |
(648 |
) |
|
Noncontrolling interest share of interest and tax |
|
— |
|
11 |
|
19 |
|
33 |
|
|
Net income attributable to Bunge |
|
$ |
140 |
|
$ |
212 |
|
$ |
688 |
|
$ |
2,053 |
|
|