v2.4.0.6
GOODWILL (Tables)
 9 Months Ended
Sep. 30, 2012
GOODWILL  
Summary of the carrying amount of goodwill by segment

 

 

 

 

 

 

Sugar and

 

Edible Oil

 

Milling

 

 

 

 

 

(US$ in millions)

 

Agribusiness

 

Bioenergy

 

Products

 

Products

 

Fertilizer

 

Total

 

Balance, December 31, 2010

 

$

215

 

$

631

 

$

80

 

$

7

 

$

1

 

$

934

 

Acquired goodwill

 

34

 

—

 

41

 

—

 

—

 

75

 

Reallocation of acquired goodwill

 

(5

)

—

 

—

 

—

 

—

 

(5

)

Tax benefit on goodwill amortization (3)

 

(7

)

—

 

—

 

—

 

—

 

(7

)

Foreign exchange translation

 

(21

)

(71

)

(11

)

(1

)

—

 

(104

)

Balance, December 31, 2011

 

$

216

 

$

560

 

$

110

 

$

6

 

$

1

 

$

893

 

Acquired goodwill (1)

 

—

 

7

 

—

 

45

 

—

 

52

 

Reallocation of acquired goodwill (2)

 

(1

)

—

 

(13

)

—

 

1

 

(13

)

Tax benefit on goodwill amortization (3)

 

(4

)

—

 

—

 

—

 

—

 

(4

)

Foreign exchange translation

 

(12

)

(43

)

3

 

2

 

—

 

(50

)

Balance, September 30, 2012

 

$

199

 

$

524

 

$

100

 

$

53

 

$

2

 

$

878

 

 

(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, $1 million of 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 inventories 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.