Unrealized gains on derivative contracts at fair value
2,084
1,283
Recoverable taxes, net
530
528
Margin deposits (3)
408
352
Marketable securities
98
50
Deferred purchase price receivable (4)
125
192
Prepaid expenses
443
369
Restricted cash (5)
12
43
Other
620
424
Total
$
5,194
$
3,796
(1)
Prepaid commodity purchase contracts represent advance payments against fixed price 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, 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 both September 30, 2012 and December 31, 2011.
Interest earned on secured advances to suppliers of $5 million and $5 million for the three months ended September 30, 2012 and 2011, respectively, and $18 million and $17 million for the nine months ended September 30, 2012 and 2011, respectively, is included in net sales in the condensed 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 14) and is recognized at its estimated fair value.
(5)
Restricted cash at December 31, 2011, includes an escrowed cash deposit related to an equity investment, which was completed in the first quarter of 2012.