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20. SEGMENT INFORMATION
Bunge has five reportable segments—agribusiness, sugar and bioenergy, edible oil products, milling products and fertilizer—which are organized based upon similar economic characteristics and are similar in nature of products and services offered, the nature of production processes, the type and class of customer and distribution methods. The agribusiness segment is characterized by both inputs and outputs being agricultural commodities and thus high volume and low margin. The sugar and bioenergy segment involves sugarcane growing and milling in Brazil, sugar merchandising in various countries, as well as sugarcane-based ethanol production and corn-based ethanol investments and related activities. The edible oil products segment involves the manufacturing and marketing of products derived from vegetable oils. The milling products segment involves the manufacturing and marketing of products derived primarily from wheat and corn.
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, amounts for prior periods presented have been reclassified to conform to the current period segment presentation.
The “Unallocated” column in the following table contains the reconciliation between the totals for reportable segments and Bunge consolidated totals, which consist primarily of corporate items not allocated to the operating segments and inter-segment eliminations. Transfers between the segments are generally valued at market. The revenues generated from these transfers are shown in the following table as “Inter-segment revenues segments or inter-segment eliminations.”
(US$ in millions)
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|
Edible |
|
|
|
|
|
|
|
|
|
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Three Months Ended |
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|
|
Sugar and |
|
Oil |
|
Milling |
|
|
|
|
|
|
|
|
June 30, 2012 |
|
Agribusiness |
|
Bioenergy |
|
Products |
|
Products |
|
Fertilizer |
|
Unallocated (1) |
|
Total |
|
|
Net sales to external customers |
|
$ |
10,580 |
|
$ |
1,079 |
|
$ |
2,331 |
|
$ |
421 |
|
$ |
679 |
|
$ |
— |
|
$ |
15,090 |
|
|
Inter—segment revenues |
|
1,340 |
|
— |
|
33 |
|
— |
|
16 |
|
(1,389 |
) |
— |
|
|
Gross profit |
|
478 |
|
15 |
|
91 |
|
43 |
|
33 |
|
— |
|
660 |
|
|
Foreign exchange gains (losses) |
|
20 |
|
(5 |
) |
(2 |
) |
— |
|
5 |
|
— |
|
18 |
|
|
Noncontrolling interest (1) |
|
5 |
|
3 |
|
1 |
|
— |
|
(1 |
) |
— |
|
8 |
|
|
Other income (expense) — net |
|
4 |
|
(4 |
) |
— |
|
(1 |
) |
(7 |
) |
— |
|
(8 |
) |
|
Gain on sale of investments in affiliates |
|
85 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
85 |
|
|
Gain on acquisition of controlling interest |
|
— |
|
— |
|
— |
|
36 |
|
— |
|
— |
|
36 |
|
|
Segment EBIT (2) |
|
386 |
|
(28 |
) |
2 |
|
44 |
|
(1 |
) |
— |
|
403 |
|
|
Depreciation, depletion and amortization |
|
(56 |
) |
(45 |
) |
(23 |
) |
(6 |
) |
(14 |
) |
— |
|
(144 |
) |
|
Total assets |
|
16,777 |
|
3,925 |
|
2,737 |
|
846 |
|
2,428 |
|
— |
|
26,713 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales to external customers |
|
$ |
9,624 |
|
$ |
1,420 |
|
$ |
2,200 |
|
$ |
491 |
|
$ |
753 |
|
$ |
— |
|
$ |
14,488 |
|
|
Inter—segment revenues |
|
1,300 |
|
— |
|
14 |
|
23 |
|
11 |
|
(1,348 |
) |
— |
|
|
Gross profit |
|
401 |
|
47 |
|
114 |
|
54 |
|
31 |
|
— |
|
647 |
|
|
Foreign exchange gains (losses) |
|
69 |
|
12 |
|
— |
|
— |
|
(4 |
) |
— |
|
77 |
|
|
Noncontrolling interest (1) |
|
(5 |
) |
— |
|
— |
|
— |
|
(1 |
) |
10 |
|
4 |
|
|
Other income (expense) — net |
|
(3 |
) |
3 |
|
(1 |
) |
(3 |
) |
5 |
|
— |
|
1 |
|
|
Gain on sale of investments in affiliates |
|
37 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
37 |
|
|
Segment EBIT (2) |
|
308 |
|
18 |
|
30 |
|
22 |
|
(5 |
) |
— |
|
373 |
|
|
Depreciation, depletion and amortization |
|
(47 |
) |
(54 |
) |
(21 |
) |
(7 |
) |
(14 |
) |
— |
|
(143 |
) |
|
Total assets |
|
15,518 |
|
4,710 |
|
2,475 |
|
854 |
|
2,743 |
|
208 |
|
26,508 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Edible |
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
|
Sugar and |
|
Oil |
|
Milling |
|
|
|
|
|
|
|
|
June 30, 2012 |
|
Agribusiness |
|
Bioenergy |
|
Products |
|
Products |
|
Fertilizer |
|
Unallocated (1) |
|
Total |
|
|
Net sales to external customers |
|
$ |
19,897 |
|
$ |
1,960 |
|
$ |
4,552 |
|
$ |
848 |
|
$ |
1,279 |
|
$ |
— |
|
$ |
28,536 |
|
|
Inter—segment revenues |
|
2,400 |
|
— |
|
64 |
|
— |
|
34 |
|
(2,498 |
) |
— |
|
|
Gross profit |
|
830 |
|
23 |
|
204 |
|
99 |
|
25 |
|
— |
|
1,181 |
|
|
Foreign exchange gains (losses) |
|
74 |
|
— |
|
(3 |
) |
— |
|
13 |
|
— |
|
84 |
|
|
Noncontrolling interest (1) |
|
3 |
|
4 |
|
1 |
|
— |
|
(1 |
) |
4 |
|
11 |
|
|
Other income (expense) — net |
|
11 |
|
(7 |
) |
2 |
|
1 |
|
(44 |
) |
— |
|
(37 |
) |
|
Gain on sale of investments in affiliates |
|
85 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
85 |
|
|
Gain on acquisition of controlling interest |
|
— |
|
— |
|
— |
|
36 |
|
— |
|
— |
|
36 |
|
|
Segment EBIT (2) |
|
583 |
|
(61 |
) |
23 |
|
71 |
|
(75 |
) |
— |
|
541 |
|
|
Depreciation, depletion and amortization |
|
(105 |
) |
(72 |
) |
(47 |
) |
(13 |
) |
(27 |
) |
— |
|
(264 |
) |
|
Total assets |
|
16,777 |
|
3,925 |
|
2,737 |
|
846 |
|
2,428 |
|
— |
|
26,713 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales to external customers |
|
$ |
17,726 |
|
$ |
2,481 |
|
$ |
4,216 |
|
$ |
991 |
|
$ |
1,268 |
|
$ |
— |
|
$ |
26,682 |
|
|
Inter—segment revenues |
|
2,458 |
|
— |
|
36 |
|
49 |
|
22 |
|
(2,565 |
) |
— |
|
|
Gross profit |
|
801 |
|
79 |
|
228 |
|
111 |
|
67 |
|
— |
|
1,286 |
|
|
Foreign exchange gains (losses) |
|
103 |
|
23 |
|
(1 |
) |
— |
|
(6 |
) |
— |
|
119 |
|
|
Noncontrolling interest (1) |
|
(10 |
) |
(2 |
) |
(4 |
) |
— |
|
(2 |
) |
19 |
|
1 |
|
|
Other income (expense) — net |
|
(8 |
) |
2 |
|
(2 |
) |
1 |
|
— |
|
— |
|
(7 |
) |
|
Gain on sale of investments in affiliates |
|
37 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
37 |
|
|
Segment EBIT (2) |
|
557 |
|
20 |
|
64 |
|
55 |
|
(6 |
) |
— |
|
690 |
|
|
Depreciation, depletion and amortization |
|
(91 |
) |
(74 |
) |
(41 |
) |
(14 |
) |
(27 |
) |
— |
|
(247 |
) |
|
Total assets |
|
15,518 |
|
4,710 |
|
2,475 |
|
854 |
|
2,743 |
|
208 |
|
26,508 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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(1) Includes noncontrolling interest share of interest and tax to reconcile to consolidated noncontrolling interest.
(2) Total segment earnings before interest and taxes (EBIT) is an operating performance measure used by Bunge’s management to evaluate segment operating activities. Bunge’s management believes total segment EBIT is a useful measure of operating profitability, since the measure allows for an evaluation of the performance of its segments without regard to its financing methods or capital structure. In addition, EBIT is a financial measure that is widely used by analysts and investors in Bunge’s industries.
A reconciliation of total segment EBIT to net income attributable to Bunge follows:
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
|
June 30, |
|
June 30, |
|
|
(US$ in millions) |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
|
Total segment EBIT |
|
$ |
403 |
|
$ |
373 |
|
$ |
541 |
|
$ |
690 |
|
|
Interest income |
|
21 |
|
23 |
|
47 |
|
44 |
|
|
Interest expense |
|
(82 |
) |
(70 |
) |
(144 |
) |
(142 |
) |
|
Income tax (expense) benefit |
|
(68 |
) |
(20 |
) |
(82 |
) |
(63 |
) |
|
Noncontrolling interest share of interest and tax |
|
— |
|
10 |
|
4 |
|
19 |
|
|
Net income attributable to Bunge |
|
$ |
274 |
|
$ |
316 |
|
$ |
366 |
|
$ |
548 |
|
|