v2.4.0.6
GOODWILL (Tables)
 3 Months Ended
Mar. 31, 2012
GOODWILL  
Changes in the carrying value of goodwill by segment

 

 

 

 

 

 

Sugar and

 

Edible Oil

 

Milling

 

 

 

 

 

(US$ in millions)

 

Agribusiness

 

Bioenergy

 

Products

 

Products

 

Fertilizer

 

Total

 

Balance, December 31, 2011

 

$

216

 

$

560

 

$

110

 

$

6

 

$

1

 

$

893

 

Acquired goodwill (1)

 

8

 

—

 

—

 

—

 

—

 

8

 

Reallocation of acquired goodwill(2)

 

(1

)

—

 

(13

)

—

 

1

 

(13

)

Tax benefit on goodwill amortization (3)

 

(2

)

—

 

—

 

—

 

—

 

(2

)

Foreign exchange translation

 

4

 

17

 

8

 

—

 

—

 

29

 

Balance, March 31, 2012

 

$

225

 

$

577

 

$

105

 

$

6

 

$

2

 

$

915

 

 

(1)   See Note 3.

 

(2)   Beginning in the first quarter of 2012, the management responsibilities for certain Brazilian port facilities were moved from the agribusiness segment to the fertilizer segment. Accordingly, goodwill attributable to these port facilities was reclassified to conform to the 2012 segment presentation.  Also in the first quarter of 2012, the purchase price allocation for the 2011 edible oil products acquisition was revised resulting in a reduction of goodwill of $13 million, a reduction of inventory of $6 million, an increase in finite-lived intangibles of $14 million and a reduction of deferred tax liabilities of $5 million.

 

(3)   Bunge’s Brazilian subsidiary’s tax deductible goodwill is in excess of its book goodwill.  For financial reporting purposes, for goodwill acquired prior to 2009, the tax benefits attributable to the excess tax goodwill are first used to reduce associated goodwill and then other intangible assets to zero, prior to recognizing any income tax benefit in the condensed consolidated statements of income.