v2.4.0.6
Other Current Assets (Tables)
12 Months Ended
Dec. 31, 2011
Other Current Assets  
Other current assets

 

 

 
  December 31,  
(US$ in millions)
  2011   2010  

Prepaid commodity purchase contracts (1)

  $ 206   $ 267  

Secured advances to suppliers, net (2)

    349     245  

Unrealized gains on derivative contracts at fair value

    1,283     2,619  

Recoverable taxes, net

    528     500  

Margin deposits (3)

    352     926  

Marketable securities

    50     39  

Deferred purchase price receivable (4)

    192      

Prepaid expenses

    369     308  

Restricted cash (5)

    43      

Other

    424     564  
           

Total

  $ 3,796   $ 5,468  
           

(1)
Prepaid commodity purchase contracts represent advance payments against fixed priced contracts for future delivery of specified quantities of agricultural commodities. These contracts are recorded at fair value based on prices of the underlying agricultural commodities.

(2)
Bunge provides cash advances to suppliers, primarily Brazilian farmers of soybeans and other agricultural commodities, to finance a portion of the suppliers' production costs. Bunge does not bear any of the costs or risks associated with the related growing crops. The advances are largely collateralized by future crops and physical assets of the suppliers, carry a local market interest rate and settle when the farmer's crop is harvested and sold. The secured advances to farmers are reported net of allowances of $3 million at December 31, 2011 and 2010. Changes in the allowance for 2011 included an increase of $2 million for additional bad debt provisions and a reduction in the allowance for recoveries of $2 million. Changes in the allowance for 2010 included an increase of $1 million for additional bad debt provisions and a reduction in the allowance for recoveries of $1 million.

Interest earned on secured advances to suppliers of $25 million, $25 million and $41 million for 2011, 2010, and 2009, respectively, is included in net sales in the consolidated statements of income.

(3)
Margin deposits include U.S. treasury securities at fair value and cash.

(4)
Deferred purchase price receivable represents additional credit support for the investment conduits in Bunge's accounts receivables sales program (see Note 18) and is recognized at its estimated fair value.

(5)
Restricted cash includes an escrowed cash deposit related to a pending equity investment.