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 $750 million in cash. Upon completion of the transaction, which is expected in the third quarter of 2013, Bunge will not have significant ongoing cash flows related to the Brazilian fertilizer business or any significant ongoing participation in the operations of this business. Assets and liabilities subject to the purchase and sale agreement have been classified as held for sale in Bunge’s condensed consolidated balance sheets. The operating results of the Brazilian fertilizer distribution businesses are reported as income from discontinued operations, net of tax, in the condensed consolidated statements of income and have been excluded from segment results for all periods presented (see Note 18).
The following table summarizes the results from discontinued operations.
|
|
|
Three Months Ended June 30, |
|
|
(US$ in millions) |
|
2013 |
|
2012 |
|
|
Net sales |
|
$ |
607 |
|
$ |
592 |
|
|
Cost of goods sold |
|
(567 |
) |
(575 |
) |
|
Gross profit |
|
40 |
|
17 |
|
|
Selling, general and administrative expenses |
|
(31 |
) |
(22 |
) |
|
Interest income |
|
9 |
|
5 |
|
|
Interest expense |
|
(13 |
) |
(4 |
) |
|
Foreign exchange gain (loss) |
|
(2 |
) |
5 |
|
|
Other income (expenses)—net |
|
(8 |
) |
(1 |
) |
|
Income (loss) from discontinued operations before income tax |
|
(5 |
) |
— |
|
|
Income tax (expense) benefit |
|
6 |
|
7 |
|
|
Income (loss) from discontinued operations, net of tax |
|
$ |
1 |
|
$ |
7 |
|
|
|
|
Six Months Ended June 30, |
|
|
(US$ in millions) |
|
2013 |
|
2012 |
|
|
Net sales |
|
$ |
1,063 |
|
$ |
1,128 |
|
|
Cost of goods sold |
|
(998 |
) |
(1,127 |
) |
|
Gross profit |
|
65 |
|
1 |
|
|
Selling, general and administrative expenses |
|
(50 |
) |
(48 |
) |
|
Interest income |
|
13 |
|
9 |
|
|
Interest expense |
|
(16 |
) |
(7 |
) |
|
Foreign exchange gain (loss) |
|
1 |
|
13 |
|
|
Other income (expenses)—net |
|
(6 |
) |
(29 |
) |
|
Income (loss) from discontinued operations before income tax |
|
7 |
|
(61 |
) |
|
Income tax (expense) benefit |
|
(15 |
) |
33 |
|
|
Income (loss) from discontinued operations, net of tax |
|
$ |
(8 |
) |
$ |
(28 |
) |
Assets and liabilities held for sale associated with discontinued operations as of June 30, 2013 and December 31, 2012 are as follows:
|
|
|
June 30, |
|
December 31, |
|
|
(US$ in millions) |
|
2013 |
|
2012 |
|
|
Assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
2 |
|
$ |
2 |
|
|
Trade accounts receivable (less allowance of $3 and $2) |
|
170 |
|
189 |
|
|
Inventories |
|
567 |
|
402 |
|
|
Other current assets |
|
32 |
|
67 |
|
|
Current assets held for sale |
|
$ |
771 |
|
$ |
660 |
|
|
Property, plant and equipment, net |
|
$ |
222 |
|
$ |
218 |
|
|
Deferred income taxes |
|
— |
|
40 |
|
|
Other non-current assets |
|
29 |
|
(8 |
) |
|
Non-current assets held for sale |
|
$ |
251 |
|
$ |
250 |
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
Trade accounts payable |
|
$ |
241 |
|
$ |
157 |
|
|
Other current liabilities |
|
215 |
|
140 |
|
|
Current liabilities held for sale |
|
$ |
456 |
|
$ |
297 |
|
|
Deferred income taxes |
|
$ |
7 |
|
$ |
— |
|
|
Other non-current liabilities |
|
13 |
|
13 |
|
|
Non-current liabilities held for sale |
|
$ |
20 |
|
$ |
13 |
|