Investments in Affiliates

12 Months Ended

Dec. 31, 2011

10. Investments in Affiliates

Bunge participates in several unconsolidated joint ventures and other investments accounted for using the equity method. Significant equity method investments at December 31, 2011 are described below. Bunge allocates equity in earnings of affiliates to its reporting segments.

Agribusiness

Bunge-SCF Grain, LLC. Bunge has a 50% interest in Bunge-SCF Grain, LLC, a joint venture with SCF Agri/Fuels LLC. that provides improved infrastructure for commodities in the United States and export markets.

Complejo Agroindustrial Angostura S.A. Bunge has a 33.33% ownership interest in this joint venture with Louis Dreyfus Commodities and Aceitera General Deheza S.A. (AGD), which is constructing an oilseed processing facility in Paraguay.

Diester Industries International S.A.S. (DII). Bunge is a party to a joint venture with Diester Industries, a subsidiary of Sofiproteol, specializing in the production and marketing of biodiesel in Europe. Bunge has a 40% interest in DII.

The Solae Company. Solae is a joint venture with E.I. du Pont de Nemours and Company. Solae is engaged in the global production and distribution of soy-based ingredients, including soy proteins and lecithins. Bunge has a 28.06% interest in Solae.

Terminal 6 S.A. and Terminal 6 Industrial S.A. Bunge has a joint venture in Argentina with Aceitera General Deheza S.A. (AGD), for the operation of the Terminal 6 port facility located in the Santa Fe province of Argentina. Bunge is also a party to a second joint venture with AGD that operates a crushing facility located adjacent to the Terminal 6 port facility. Bunge owns 40% and 50%, respectively, of these joint ventures. In 2010, Ecofuel S.A., of which Bunge was a 50% owner with the remaining 50% owned by AGD, merged with Terminal 6 Industrial S.A. Ecofuel manufactured biodiesel products in the Santa Fe province of Argentina.

Sugar and Bioenergy

Bunge-Ergon Vicksburg, LLC (BEV). Bunge is a 50% owner of BEV along with Ergon Ethanol, Inc. BEV operates an ethanol plant at the Port of Vicksburg, Mississippi, where Bunge operates grain elevator facilities.

Southwest Iowa Renewable Energy, LLC (SIRE). Bunge is a 25% owner of SIRE. The other owners are primarily agricultural producers located in Southwest Iowa. SIRE operates an ethanol plant near Bunge's oilseed processing facility in Council Bluffs, Iowa.

Food Products

Harinera La Espiga, S.A. de C.V. Bunge is a party to this joint venture in Mexico with Grupo Neva, S.A. de C.V. and Cerrollera, S.A. de C.V. The joint venture has wheat milling and bakery dry mix operations. Bunge has a 31.5% interest in the joint venture.

Fertilizers

Bunge Maroc Phosphore S.A. Bunge has a 50% interest in this joint venture to produce fertilizers in Morocco with Office Cherifien Des Phosphates (OCP). The joint venture was formed to produce fertilizer products for shipment to Brazil, Argentina and certain other markets in Latin America.

Summarized combined financial information reported for all equity method affiliates and a summary of the amounts recorded in Bunge's consolidated financial statements as of December 31, 2011 and 2010 and for the years ended December 31, 2011, 2010 and 2009 follows:

	December 31,

(US$ in millions)	2011		2010
Combined financial position:
Current assets	$	1,135	$	1,269
Non-current assets		1,988		2,004

Total assets	$	3,123	$	3,273

Current liabilities	$	665	$	778
Non-current liabilities		590		600
Stockholders' equity		1,868		1,895

Total liabilities and stockholders' equity	$	3,123	$	3,273

Amounts recorded by Bunge:
Investments ⁽¹⁾	$	600	$	609

	December 31,

(US$ in millions)	2011		2010		2009
Combined results of operations:
Revenues	$	3,540	$	2,902	$	5,407
Gross profit		311		330		505
Income before income tax and noncontrolling interest		27		82		94
Net income		65		66		82
Amounts recorded by Bunge:
Equity in earnings of affiliates ⁽²⁾	$	44	$	27	$	80

⁽¹⁾: At December 31, 2011 and 2010, Bunge's investment of $365 million and $367 million, respectively, equaled its underlying equity in the net assets of Solae.
⁽²⁾: In 2011, equity in earnings of affiliates includes a $37 million gain on sale of our interest in an oilseed processing facility joint venture. In 2009, equity in earnings of affiliates includes a $66 million (net of tax of $3 million) gain on the sale of Saipol S.A.S., a European edible oils joint venture.

- Definition

The entire disclosure for equity investment, or group of investments, for which combined disclosure is appropriate, including: (a) the name of each investee and percentage of ownership of common stock, (b) accounting policies for investments in common stock, (c) difference between the amount at which the investment is carried and the amount of underlying equity in net assets and the accounting treatment of the difference, (d) the total fair value of each identified investment for which a market value is available, (e) summarized information as to assets, liabilities, and results of operations of the investees (for investments in unconsolidated subsidiaries, common stock of joint ventures, or other investments using the equity method), and (f) material effects of possible conversions, exercises, or contingent issuances of the investee. Other disclosures include (a) the names of any investee in which the investor owns 20 percent or more of the voting stock and investment is not accounted for using the equity method, and the reasons why not, and (b) the names of any investee in which the investor owns less than 20 percent of the voting stock and the investment is accounted for using the equity method, and the reasons why it is.

+ References+ Details