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21. Related Party Transactions
Notes receivable—Bunge holds a note receivable under a revolving credit facility from Bunge-Ergon Vicksburg LLC, a 50% owned U.S. joint venture. The amounts outstanding were $29 million and $24 million at December 31, 2011 and 2010, respectively. This note matures in May 2013 with interest payable at a rate of LIBOR plus 2.0%.
Bunge holds a note receivable from Southwest Iowa Renewable Energy, a 25% owned U.S. investment, having a carrying value of approximately $27 million and $34 million at December 31, 2011 and 2010, respectively. This note matures in August 2014 with interest payable at a rate of LIBOR plus 7.5%.
Bunge holds a note receivable from Biodiesel Bilbao S.A., a 20% owned investment in Spain, having a carrying value of approximately $6 million and $7 million at December 31, 2011 and 2010, respectively. This note matures in December 2015 with interest payable at a rate of EURIBOR plus 2.0%.
Bunge holds a note receivable from B-G Fertilizer, a 50% owned U.S. investment, having a carrying value of approximately $9 million at December 31, 2011. This is a revolving note with interest payable at a rate of LIBOR plus 3.00%.
Bunge holds a note receivable from Biocolza-Oleos E Farinhas de Colza S.A., a 40% owned investment in Portugal, having a carrying value of approximately $5 million at December 31, 2011. This note matures in December 2012 with interest payable at a rate of EURIBOR plus 8.5%.
Bunge has recognized interest income related to these notes receivable of approximately $2 million, $4 million and $1 million for the years ended December 31, 2011, 2010 and 2009, respectively, in interest income in its consolidated statements of income. Notes receivable at December 31, 2011 and 2010, with carrying values of $79 million and $90 million, respectively, are included in other current assets or other non-current assets in the consolidated balance sheets, according to payment terms.
Notes payable—Bunge has a note payable with a carrying value of $7 million at December 31, 2011 and 2010, respectively, to a joint venture partner in one of its port terminals in Brazil. The real-denominated note is payable on demand with interest payable annually at the Brazilian interbank deposit rate (11.595% at December 31, 2011). This notes payable is included in other current liabilities in Bunge's consolidated balance sheets at December 31, 2011 and 2010. Bunge recorded interest expense of approximately $1 million, $1 million and $1 million in 2011, 2010 and 2009, respectively, related to this note.
Other—Bunge purchased soybeans, other commodity products and phosphate-based products from certain of its unconsolidated joint ventures, which totaled $835 million, $525 million and $1,073 million for the years ended December 31, 2011, 2010 and 2009, respectively. Bunge also sold soybean and other commodity products to certain of these joint ventures, which totaled $452 million, $478 million, and $596 million for the years ended December 31, 2011, 2010 and 2009, respectively. At December 31, 2011 and 2010, Bunge had approximately $67 million and $69 million, respectively, of receivables from these joint ventures recorded in trade accounts receivable in the consolidated balance sheets as of those dates. In addition, at December 31, 2011 and 2010, Bunge had approximately $32 million and $42 million, respectively, of payables to these joint ventures recorded in trade accounts payable in the consolidated balance sheets. Bunge believes these transactions are recorded at values similar to those with third parties. |