|
8. OTHER NON-CURRENT ASSETS
Other non-current assets consist of the following:
|
|
|
June 30, |
|
December 31, |
|
|
(US$ in millions) |
|
2012 |
|
2011 |
|
|
Recoverable taxes, net |
|
$ |
473 |
|
$ |
386 |
|
|
Long-term receivables from farmers in Brazil, net |
|
225 |
|
284 |
|
|
Judicial deposits |
|
162 |
|
167 |
|
|
Income taxes receivable |
|
462 |
|
565 |
|
|
Affiliate loans receivable |
|
80 |
|
63 |
|
|
Long-term investments |
|
417 |
|
37 |
|
|
Other |
|
198 |
|
204 |
|
|
Total |
|
$ |
2,017 |
|
$ |
1,706 |
|
Recoverable taxes — Recoverable taxes are reported net of valuation allowances of $36 million and $41 million at June 30, 2012 and December 31, 2011, respectively.
Long-term receivables from farmers in Brazil — Bunge provides financing to farmers in Brazil, primarily through secured advances against farmer commitments to deliver agricultural commodities (primarily soybeans) upon harvest of the then-current year’s crop and through credit sales of fertilizer to farmers.
The table below summarizes Bunge’s recorded investment in long-term receivables from farmers in Brazil for amounts in the legal collection process and renegotiated amounts.
|
|
|
June 30, |
|
December 31, |
|
|
(US$ in millions) |
|
2012 |
|
2011 |
|
|
Legal collection process (1) |
|
$ |
313 |
|
$ |
358 |
|
|
Renegotiated amounts: |
|
|
|
|
|
|
Current on repayment terms |
|
110 |
|
125 |
|
|
Total |
|
$ |
423 |
|
$ |
483 |
|
(1) All amounts in legal process are considered past due upon initiation of legal action.
The average recorded investment in long-term receivables from farmers in Brazil for the six months ended June 30, 2012 and the year ended December 31, 2011 was $485 million and $561 million, respectively. The table below summarizes Bunge’s recorded investment in long-term receivables from farmers in Brazil and the related allowance amounts.
|
|
|
June 30, 2012 |
|
December 31, 2011 |
|
|
|
|
Recorded |
|
|
|
Recorded |
|
|
|
|
(US$ in millions) |
|
Investment |
|
Allowance |
|
Investment |
|
Allowance |
|
|
For which an allowance has been provided: |
|
|
|
|
|
|
|
|
|
|
Legal collection process |
|
$ |
157 |
|
$ |
143 |
|
$ |
162 |
|
$ |
147 |
|
|
Renegotiated amounts |
|
68 |
|
55 |
|
64 |
|
52 |
|
|
For which no allowance has been provided: |
|
|
|
|
|
|
|
|
|
|
Legal collection process |
|
156 |
|
— |
|
196 |
|
— |
|
|
Renegotiated amounts |
|
42 |
|
— |
|
61 |
|
— |
|
|
Total |
|
$ |
423 |
|
$ |
198 |
|
$ |
483 |
|
$ |
199 |
|
The table below summarizes the activity in the allowance for doubtful accounts related to long-term receivables from farmers in Brazil.
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
|
June 30, |
|
June 30, |
|
|
(US$ in millions) |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
|
Beginning balance |
|
$ |
215 |
|
$ |
205 |
|
$ |
199 |
|
$ |
201 |
|
|
Bad debt provisions |
|
11 |
|
3 |
|
26 |
|
4 |
|
|
Recoveries |
|
(5 |
) |
(4 |
) |
(9 |
) |
(5 |
) |
|
Write-offs |
|
(1 |
) |
— |
|
(1 |
) |
— |
|
|
Transfers (1) |
|
— |
|
2 |
|
— |
|
2 |
|
|
Foreign exchange translation |
|
(22 |
) |
9 |
|
(17 |
) |
13 |
|
|
Ending balance |
|
$ |
198 |
|
$ |
215 |
|
$ |
198 |
|
$ |
215 |
|
(1) Represents reclassifications from allowance for doubtful accounts — current for secured advances to suppliers.
Judicial deposits — Judicial deposits are funds that Bunge has placed on deposit with the courts in Brazil. These funds are held in judicial escrow relating to certain legal proceedings pending legal resolution and bear interest at the SELIC rate (benchmark rate of the Brazilian central bank).
Income taxes receivable — Income taxes receivable at June 30, 2012 and December 31, 2011 includes overpayments of current income taxes plus accrued interest. These income tax prepayments are expected to be utilized for settlement of future income tax obligations. Income taxes receivable in Brazil bear interest at the SELIC rate.
Affiliate loans receivable — Affiliate loans receivable are primarily interest bearing receivables from unconsolidated affiliates with an initial maturity of greater than one year.
Long-term investments— Long-term investments primarily relate to investments held by certain managed investment funds (see Note 1) for which Bunge has been deemed the primary beneficiary, resulting in Bunge’s consolidation of the associated entities.
|