v2.4.0.6
DISCONTINUED OPERATIONS
 3 Months Ended
Mar. 31, 2013
DISCONTINUED OPERATIONS  
DISCONTINUED OPERATIONS

4.                                      DISCONTINUED OPERATIONS

 

On December 6, 2012, Bunge entered into a definitive agreement with Yara International ASA (Yara) under which Yara will acquire Bunge’s Brazilian fertilizer distribution business, including blending facilities, brands and warehouses, for $750 million in cash. Upon completion of the transaction, which is expected in 2013, Bunge will not have significant ongoing cash flows related to the Brazilian fertilizer business or any significant ongoing participation in the operations of this business. Assets and liabilities subject to the purchase and sale agreement have been classified as held for sale in Bunge’s condensed consolidated balance sheets.  The operating results of the Brazilian fertilizer distribution businesses are reported as income from discontinued operations, net of tax, in the condensed consolidated statements of income and have been excluded from segment results for all periods presented (see Note 18).

 

The following table summarizes the results from discontinued operations.

 

 

 

Three Months Ended March 31,

 

(US$ in millions)

 

2013

 

2012

 

Net sales

 

$

456

 

$

537

 

Cost of goods sold

 

(431

)

(553

)

Gross profit

 

25

 

(16

)

Selling, general and administrative expenses

 

(19

)

(26

)

Interest income

 

4

 

1

 

Interest expense

 

(3

)

—

 

Foreign exchange gain (loss)

 

3

 

8

 

Other income (expenses)—net

 

1

 

(28

)

Income (loss) from discontinued operations before income tax

 

11

 

(61

)

Income tax (expense) benefit

 

(20

)

26

 

Income (loss) from discontinued operations, net of tax

 

$

(9

)

$

(35

)

 

Assets held for sale associated with discontinued operations as of March 31, 2013 and December 31, 2012 are as follows:

 

 

 

March 31,

 

December 31,

 

(US$ in millions)

 

2013

 

2012

 

Assets:

 

 

 

 

 

Cash and cash equivalents

 

$

2

 

$

2

 

Trade accounts receivable (less allowance of $2 and $2)

 

265

 

189

 

Inventories

 

445

 

402

 

Other current assets

 

35

 

67

 

Current assets held for sale

 

$

747

 

$

660

 

Property, plant and equipment, net

 

$

227

 

$

218

 

Deferred income taxes

 

24

 

40

 

Other non-current assets

 

—

 

(8

)

Non-current assets held for sale

 

$

251

 

$

250

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

Trade accounts payable

 

$

181

 

$

157

 

Other current liabilities

 

97

 

140

 

Current liabilities held for sale

 

$

278

 

$

297

 

Deferred income taxes

 

$

8

 

$

—

 

Other non-current liabilities

 

13

 

13

 

Non-current liabilities held for sale

 

$

21

 

$

13