18. SEGMENT INFORMATION

Bunge has five reportable segments—agribusiness, sugar and bioenergy, edible oil products, milling products and fertilizer—which are organized based upon similar economic characteristics and are similar in nature of products and services offered, the nature of production processes, the type and class of customer and distribution methods. The agribusiness segment is characterized by both inputs and outputs being agricultural commodities and thus high volume and low margin. The sugar and bioenergy segment involves sugarcane growing and milling in Brazil, sugar merchandising in various countries, as well as sugarcane-based ethanol production and corn-based ethanol investments and related activities. The edible oil products segment involves the manufacturing and marketing of products derived from vegetable oils. The milling products segment involves the manufacturing and marketing of products derived primarily from wheat and corn. Following the classification of the Brazilian fertilizer distribution and North American fertilizer businesses as discontinued operations (see Note 4), the activities of the fertilizer segment include its port operations in Brazil and its operations in Argentina. Additionally, Bunge has retained its 50% interest in its fertilizer joint venture in Morocco.

The “Discontinued Operations & Unallocated” column in the following table contains the reconciliation between the totals for reportable segments and Bunge consolidated totals, which consist primarily of amounts attributable to discontinued operations, corporate items not allocated to the operating segments and inter-segment eliminations. Transfers between the segments are generally valued at market. The revenues generated from these transfers are shown in the following table as “Inter-segment revenues segments or inter-segment eliminations.”

(US$ in millions)

							Edible									Discontinued
Three Months Ended				Sugar and			Oil			Milling						Operations &
June 30, 2013	Agribusiness			Bioenergy			Products			Products			Fertilizer			Unallocated (1)			Total
Net sales to external customers	$	11,566		$	939		$	2,376		$	509		$	101		$	—		$	15,491
Inter-segment revenues	1,238			—			39			9			27			(1,313		)	—
Gross profit	370			34			137			61			14			—			616
Foreign exchange gains (losses)	(2		)	(4		)	—			—			3			—			(3		)
Noncontrolling interests (1)	4			3			—			—			(1		)	8			14
Other income (expense) — net	(1		)	3			—			(1		)	(2		)	—			(1		)
Segment EBIT (2)	170			(3		)	34			29			9			—			239
Discontinued operations (3)	—			—			—			—			—			1			1
Depreciation, depletion and amortization	(58		)	(53		)	(25		)	(8		)	(5		)	—			(149		)
Total assets	20,885			4,088			2,531			872			944			1,023			30,343

Three Months Ended
June 30, 2012
Net sales to external customers	$	10,580		$	1,079		$	2,331		$	421		$	88		$	—		$	14,499
Inter-segment revenues	1,340			—			33			—			16			(1,389		)	—
Gross profit	478			15			91			43			16			—			643
Foreign exchange gains (losses)	20			(5		)	(2		)	—			—			—			13
Noncontrolling interest (1)	5			3			1			—			(1		)	—			8
Other income (expense) — net	4			(4		)	—			(1		)	(6		)	—			(7		)
Gain on sale of investments in affiliates	85			—			—			—			—			—			85
Gain on acquisition of controlling interest	—			—			—			36			—			—			36
Segment EBIT (2)	386			(28		)	2			44			—			—			404
Discontinued operations (3)	—			—			—			—			—			7			7
Depreciation, depletion and amortization	(56		)	(45		)	(23		)	(6		)	(5		)	—			(135		)
Total assets	16,777			3,925			2,737			846			2,428			—			26,713

							Edible									Discontinued
Six Months Ended				Sugar and			Oil			Milling						Operations &
June 30, 2013	Agribusiness			Bioenergy			Products			Products			Fertilizer			Unallocated (1)			Total
Net sales to external customers	$	22,340		$	2,052		$	4,673		$	1,044		$	167		$	—		$	30,276
Inter-segment revenues	2,655			—			59			9			36			(2,759		)	—
Gross profit	768			91			253			124			27			—			1,263
Foreign exchange gains (losses)	(43		)	(1		)	(1		)	—			2			—			(43		)
Noncontrolling interest (1)	30			4			—			—			(2		)	14			46
Other income (expense) — net	(4		)	2			8			5			27			—			38
Segment EBIT (2)	361			20			72			65			44			—			562
Discontinued operations (3)	—			—			—			—			—			(8		)	(8		)
Depreciation, depletion and amortization	(118		)	(79		)	(49		)	(15		)	(9		)	—			(270		)
Total assets	20,885			4,088			2,531			872			944			1,023			30,343

Six Months Ended
June 30, 2012
Net sales to external customers	$	19,897		$	1,960		$	4,552		$	848		$	151		$	—		$	27,408
Inter-segment revenues	2,400			—			64			—			34			(2,498		)	—
Gross profit	830			23			204			99			24			—			1,180
Foreign exchange gains (losses)	74			—			(3		)	—			—			—			71
Noncontrolling interest (1)	3			4			1			—			(1		)	4			11
Other income (expense) — net	11			(7		)	2			1			(15		)	—			(8		)
Gain on sale of investments in affiliates	85			—			—			—			—			—			85
Gain on acquisition of controlling interest	—			—			—			36			—			—			36
Segment EBIT (2)	583			(61		)	23			71			(12		)	—			604
Discontinued operations (3)	—			—			—			—			—			(28		)	(28		)
Depreciation, depletion and amortization	(105		)	(72		)	(47		)	(13		)	(9		)	—			(246		)
Total assets	16,777			3,925			2,737			846			2,428			—			26,713

(1) Includes noncontrolling interests share of interest and tax to reconcile to consolidated noncontrolling interest.

(2) Total segment earnings before interest and taxes (EBIT) is an operating performance measure used by Bunge’s management to evaluate segment operating activities. Bunge’s management believes total segment EBIT is a useful measure of operating profitability, since the measure allows for an evaluation of the performance of its segments without regard to its financing methods or capital structure. In addition, EBIT is a financial measure that is widely used by analysts and investors in Bunge’s industries.

(3) Represents net income (loss) from discontinued operations (see Note 4).

A reconciliation of total segment EBIT to net income attributable to Bunge follows:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(US$ in millions)	2013			2012			2013			2012
Total segment EBIT	$	239		$	404		$	562		$	604
Interest income	12			16			21			38
Interest expense	(86		)	(78		)	(162		)	(137		)
Income tax (expense) benefit	(38		)	(75		)	(111		)	(115		)
Income (loss) from discontinued operations, net of tax	1			7			(8		)	(28		)
Noncontrolling interests’ share of interest and tax	8			—			14			4
Net income attributable to Bunge	$	136		$	274		$	316		$	366