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TRADE RECEIVABLES SECURITIZATION PROGRAM
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3 Months Ended |
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Mar. 31, 2013
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| TRADE RECEIVABLES SECURITIZATION PROGRAM | |
| TRADE RECEIVABLES SECURITIZATION PROGRAM | 13. TRADE RECEIVABLES SECURITIZATION PROGRAM
Bunge accounts for its trade receivables securitization program (the Program) under the provisions of ASC Topic 860, Transfers and Servicing. The securitization program terminates on June 1, 2016. However, each committed purchaser’s commitment to fund trade receivables sold under the securitization program will terminate on May 29, 2013 unless extended for additional 364-day periods in accordance with the terms of the receivables transfer agreement.
As of March 31, 2013 and December 31, 2012, $751 million and $772 million, respectively, of receivables sold under the Program were derecognized from Bunge’s condensed consolidated balance sheets. Proceeds received in cash related to transfers of receivables under the program totaled $3,017 million and $3,240 million for the three months ended March 31, 2013 and 2012, respectively. In addition, cash collections from customers on receivables previously sold were $3,177 million and $3,549 million, respectively. As this is a revolving facility, cash collections from customers are reinvested to fund new receivable sales. Gross receivables sold under the program for the three months ended March 31, 2013 and 2012 were $3,174 million and $3,466 million, respectively. These sales resulted in discounts of $2 million for each of the three months ended March 31, 2013 and 2012, which were included in SG&A in the condensed consolidated statements of income. Servicing fees under the program were not significant in any period.
Bunge’s risk of loss following the sale of the accounts receivable is limited to the deferred purchase price receivable, which was $137 million and $134 million at March 31, 2013 and December 31, 2012, respectively, and is included in other current assets in the condensed consolidated balance sheets (see Note 7). The deferred purchase price will be repaid in cash as receivables are collected, generally within 30 days. Delinquencies and credit losses on accounts receivable sold under the program during the three months ended March 31, 2013 and 2012 were insignificant. Bunge has reflected all cash flows under the securitization program as operating cash flows in the condensed consolidated statements of cash flows for the three months ended March 31, 2013 and 2012, including changes in the fair value of the deferred purchase price of less than $1 million for each of those periods.
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