v2.4.0.6
Commitments and Contingencies (Tables)
 12 Months Ended
Dec. 31, 2011
Commitments and Contingencies  
Liabilities related to general claims and lawsuits included in other non-current liabilities

 

 

 
   December 31,  
(US$ in millions)
  2011   2010  

Tax claims (1)

   $ 70   $ 127  

Labor claims

     77     78  

Civil and other claims (1)

     76     114  
           

Total

   $ 223   $ 319  
           
(1)
Pursuant to the terms of the 2009 Brazilian amnesty program to settle tax and other financial claims with the Brazilian government, certain of the tax and civil and other claims were settled during the third quarter 2011.
Maximum potential future payments related to guarantees

 

 

(US$ in millions)
  Maximum
Potential Future
Payments 		 

Customer financing (1)

   $ 45  

Unconsolidated affiliates financing (2)

     54  

Residual value guarantee (3)

     69  
       

Total

   $ 168  
       
(1)
Bunge has issued guarantees to third parties in Brazil related to amounts owed to these third parties by certain of Bunge's customers. The terms of the guarantees are equal to the terms of the related financing arrangements, which are generally one year or less, with the exception of guarantees issued under certain Brazilian government programs, primarily from 2006 and 2007, where terms are up to five years. In the event that the customers default on their payments to the third parties and Bunge would be required to perform under the guarantees, Bunge has obtained collateral from the customers. At December 31, 2011, Bunge had approximately $34 million of tangible property that had been pledged to Bunge as collateral against certain of these refinancing arrangements. Bunge evaluates the likelihood of customer repayments of the amounts due under these guarantees based upon an expected loss analysis and records the fair value of such guarantees as an obligation in its consolidated financial statements. Bunge's recorded obligation related to these outstanding guarantees was $7 million at December 31, 2011.

(2)
Bunge issued guarantees to certain financial institutions related to debt of certain of its unconsolidated joint ventures. The terms of the guarantees are equal to the terms of the related financings which have maturity dates in 2012, 2016 and 2018. There are no recourse provisions or collateral that would enable Bunge to recover any amounts paid under these guarantees. At December 31, 2011, Bunge's recorded obligation related to these guarantees was $1 million.

(3)
Bunge issued guarantees to certain financial institutions which are party to certain operating lease arrangements for railcars and barges. These guarantees provide for a minimum residual value to be received by the lessor at conclusion of the lease term. These leases expire in 2018. At December 31, 2011, Bunge's recorded obligation related to these guarantees was $6 million.
Future minimum payment obligations under freight supply agreements

 

 

(US$ in millions)
  Future
Minimum Payment
Obligations 		 

Less than 1 year

   $ 218  

1 to 3 years

     206  

3 to 5 years

     58  

After five years

     329  
       

Total

   $ 811