|
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables)
|
6 Months Ended |
|
Jun. 30, 2013
|
| FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS |
|
| Schedule of assets and liabilities accounted for at fair value on a recurring basis |
|
|
|
Fair Value Measurements at Reporting Date |
|
|
|
|
June 30, 2013 |
|
December 31, 2012 |
|
|
(US$ in millions) |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
|
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Readily marketable inventories (Note 6) |
|
$ |
— |
|
$ |
3,614 |
|
$ |
1,220 |
|
$ |
4,834 |
|
$ |
— |
|
$ |
4,815 |
|
$ |
436 |
|
$ |
5,251 |
|
|
Unrealized gain on designated derivative contracts (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|
Foreign exchange |
|
— |
|
1 |
|
— |
|
1 |
|
— |
|
1 |
|
— |
|
1 |
|
|
Unrealized gain on undesignated derivative contracts (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|
Foreign exchange |
|
— |
|
448 |
|
— |
|
448 |
|
— |
|
194 |
|
— |
|
194 |
|
|
Commodities |
|
182 |
|
605 |
|
157 |
|
944 |
|
61 |
|
697 |
|
264 |
|
1,022 |
|
|
Freight |
|
16 |
|
— |
|
1 |
|
17 |
|
— |
|
— |
|
1 |
|
1 |
|
|
Energy |
|
15 |
|
— |
|
5 |
|
20 |
|
9 |
|
2 |
|
1 |
|
12 |
|
|
Deferred purchase price receivable (Note 13) |
|
— |
|
123 |
|
— |
|
123 |
|
— |
|
134 |
|
— |
|
134 |
|
|
Other (2) |
|
253 |
|
75 |
|
— |
|
328 |
|
234 |
|
32 |
|
— |
|
266 |
|
|
Total assets |
|
$ |
466 |
|
$ |
4,866 |
|
$ |
1,383 |
|
$ |
6,715 |
|
$ |
304 |
|
$ |
5,875 |
|
$ |
702 |
|
$ |
6,881 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized loss on designated derivative contracts (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
Foreign exchange |
|
— |
|
14 |
|
— |
|
14 |
|
— |
|
— |
|
— |
|
— |
|
|
Unrealized loss on undesignated derivative contracts (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate |
|
— |
|
1 |
|
— |
|
1 |
|
— |
|
— |
|
— |
|
— |
|
|
Foreign exchange |
|
1 |
|
529 |
|
— |
|
530 |
|
1 |
|
119 |
|
— |
|
120 |
|
|
Commodities |
|
164 |
|
580 |
|
52 |
|
796 |
|
153 |
|
667 |
|
180 |
|
1,000 |
|
|
Freight |
|
16 |
|
— |
|
2 |
|
18 |
|
3 |
|
— |
|
— |
|
3 |
|
|
Energy |
|
30 |
|
— |
|
20 |
|
50 |
|
42 |
|
— |
|
20 |
|
62 |
|
|
Total liabilities |
|
$ |
211 |
|
$ |
1,124 |
|
$ |
74 |
|
$ |
1,409 |
|
$ |
199 |
|
$ |
786 |
|
$ |
200 |
|
$ |
1,185 |
|
(1) Unrealized gains on designated and undesignated derivative contracts are generally included in other current assets. There are no such amounts included in other non-current assets at June 30, 2013 and December 31, 2012.
(2) Other assets include primarily the fair values of U.S. Treasury securities held as margin deposits and other marketable securities.
(3) Unrealized losses on designated and undesignated derivative contracts are generally included in other current liabilities. There are no such amounts included in other non-current liabilities at June 30, 2013 and December 31, 2012.
|
| Reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) |
|
|
|
Level 3 Instruments |
|
|
|
|
Fair Value Measurements |
|
|
|
|
Three Months Ended June 30, 2013 |
|
|
|
|
|
|
Readily |
|
|
|
|
|
|
Derivatives, |
|
Marketable |
|
|
|
|
(US$ in millions) |
|
Net (1) |
|
Inventories |
|
Total |
|
|
Balance, April 1, 2013 |
|
$ |
(31 |
) |
$ |
1,187 |
|
$ |
1,156 |
|
|
Total gains and (losses) (realized/unrealized) included in cost of goods sold |
|
123 |
|
3 |
|
126 |
|
|
Purchases |
|
— |
|
261 |
|
261 |
|
|
Sales |
|
— |
|
(239 |
) |
(239 |
) |
|
Issuances |
|
(1 |
) |
— |
|
(1 |
) |
|
Settlements |
|
(109 |
) |
— |
|
(109 |
) |
|
Transfers into Level 3 |
|
101 |
|
160 |
|
261 |
|
|
Transfers out of Level 3 |
|
6 |
|
(152 |
) |
(146 |
) |
|
Balance, June 30, 2013 |
|
$ |
89 |
|
$ |
1,220 |
|
$ |
1,309 |
|
(1) Derivatives, net include Level 3 derivative assets and liabilities.
|
|
|
Level 3 Instruments |
|
|
|
|
Fair Value Measurements |
|
|
|
|
Three Months Ended June 30, 2012 |
|
|
|
|
|
|
Readily |
|
|
|
|
|
|
Derivatives, |
|
Marketable |
|
|
|
|
(US$ in millions) |
|
Net (1) |
|
Inventories |
|
Total |
|
|
Balance, April 1, 2012 |
|
$ |
62 |
|
$ |
677 |
|
$ |
739 |
|
|
Total gains and (losses) (realized/unrealized) included in cost of goods sold |
|
172 |
|
190 |
|
362 |
|
|
Purchases |
|
1 |
|
511 |
|
512 |
|
|
Sales |
|
1 |
|
(351 |
) |
(350 |
) |
|
Issuances |
|
(1 |
) |
— |
|
(1 |
) |
|
Settlements |
|
(101 |
) |
— |
|
(101 |
) |
|
Transfers into Level 3 |
|
55 |
|
802 |
|
857 |
|
|
Transfers out of Level 3 |
|
(2 |
) |
(9 |
) |
(11 |
) |
|
Balance, June 30, 2012 |
|
$ |
187 |
|
$ |
1,820 |
|
$ |
2,007 |
|
(1) Derivatives, net include Level 3 derivative assets and liabilities.
|
|
|
Level 3 Instruments |
|
|
|
|
Fair Value Measurements |
|
|
|
|
Six Months Ended June 30, 2013 |
|
|
|
|
|
|
Readily |
|
|
|
|
|
|
Derivatives, |
|
Marketable |
|
|
|
|
(US$ in millions) |
|
Net (1) |
|
Inventories |
|
Total |
|
|
Balance, January 1, 2013 |
|
$ |
66 |
|
$ |
436 |
|
$ |
502 |
|
|
Total gains and (losses) (realized/unrealized) included in cost of goods sold |
|
99 |
|
(82 |
) |
17 |
|
|
Purchases |
|
— |
|
1,213 |
|
1,213 |
|
|
Sales |
|
1 |
|
(505 |
) |
(504 |
) |
|
Issuances |
|
(1 |
) |
— |
|
(1 |
) |
|
Settlements |
|
(182 |
) |
1 |
|
(181 |
) |
|
Transfers into Level 3 |
|
99 |
|
309 |
|
408 |
|
|
Transfers out of Level 3 |
|
7 |
|
(152 |
) |
(145 |
) |
|
Balance, June 30, 2013 |
|
$ |
89 |
|
$ |
1,220 |
|
$ |
1,309 |
|
(1) Derivatives, net include Level 3 derivative assets and liabilities.
|
|
|
Level 3 Instruments |
|
|
|
|
Fair Value Measurements |
|
|
|
|
Six Months Ended June 30, 2012 |
|
|
|
|
|
|
Readily |
|
|
|
|
|
|
Derivatives, |
|
Marketable |
|
|
|
|
(US$ in millions) |
|
Net (1) |
|
Inventories |
|
Total |
|
|
Balance, January 1, 2012 |
|
$ |
(2 |
) |
$ |
283 |
|
$ |
281 |
|
|
Total gains and (losses) (realized/unrealized) included in cost of goods sold |
|
246 |
|
230 |
|
476 |
|
|
Purchases |
|
3 |
|
1,276 |
|
1,279 |
|
|
Sales |
|
1 |
|
(876 |
) |
(875 |
) |
|
Issuances |
|
(3 |
) |
— |
|
(3 |
) |
|
Settlements |
|
(83 |
) |
— |
|
(83 |
) |
|
Transfers into Level 3 |
|
41 |
|
981 |
|
1,022 |
|
|
Transfers out of Level 3 |
|
(16 |
) |
(74 |
) |
(90 |
) |
|
Balance, June 30, 2012 |
|
$ |
187 |
|
$ |
1,820 |
|
$ |
2,007 |
|
(1) Derivatives, net include Level 3 derivative assets and liabilities. |
| Summary of changes in unrealized gains or (losses) recorded in earnings for Level 3 assets and liabilities |
|
|
|
Level 3 Instruments |
|
|
|
|
Fair Value Measurements |
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
Readily |
|
|
|
|
|
|
Derivatives, |
|
Marketable |
|
|
|
|
(US$ in millions) |
|
Net (1) |
|
Inventories |
|
Total |
|
|
Changes in unrealized gains and (losses) relating to assets and liabilities held at June 30, 2013 |
|
|
|
|
|
|
|
|
Cost of goods sold |
|
$ |
120 |
|
$ |
191 |
|
$ |
311 |
|
|
Changes in unrealized gains and (losses) relating to assets and liabilities held at June 30, 2012 |
|
|
|
|
|
|
|
|
Cost of goods sold |
|
$ |
145 |
|
$ |
600 |
|
$ |
745 |
|
(1) Derivatives, net include Level 3 derivative assets and liabilities.
|
|
|
Level 3 Instruments |
|
|
|
|
Fair Value Measurements |
|
|
|
|
Six Months Ended |
|
|
|
|
|
|
Readily |
|
|
|
|
|
|
Derivatives, |
|
Marketable |
|
|
|
|
(US$ in millions) |
|
Net (1) |
|
Inventories |
|
Total |
|
|
Changes in unrealized gains and (losses) relating to assets and liabilities held at June 30, 2013 |
|
|
|
|
|
|
|
|
Cost of goods sold |
|
$ |
147 |
|
$ |
927 |
|
$ |
1,074 |
|
|
Changes in unrealized gains and (losses) relating to assets and liabilities held at June 30, 2012 |
|
|
|
|
|
|
|
|
Cost of goods sold |
|
$ |
193 |
|
$ |
1,473 |
|
$ |
1,666 |
|
(1) Derivatives, net include Level 3 derivative assets and liabilities. |
| Summary of effect of derivative instruments designated as fair value hedges and undesignated derivative instruments on consolidated statements of income |
|
|
|
|
|
Gain or (Loss) Recognized in |
|
|
|
|
|
|
Income on Derivative Instruments |
|
|
|
|
|
|
Six Months Ended June 30 |
|
|
(US$ in millions) |
|
Location |
|
2013 |
|
2012 |
|
|
Undesignated Derivative Contracts: |
|
|
|
|
|
|
|
|
Foreign Exchange |
|
Foreign exchange gains (losses) |
|
$ |
(104 |
) |
$ |
(72 |
) |
|
Foreign Exchange |
|
Income (loss) from discontinued operations, net of tax |
|
(8 |
) |
— |
|
|
Foreign Exchange |
|
Cost of goods sold |
|
69 |
|
(26 |
) |
|
Commodities |
|
Cost of goods sold |
|
248 |
|
(578 |
) |
|
Freight |
|
Cost of goods sold |
|
(48 |
) |
(9 |
) |
|
Energy |
|
Cost of goods sold |
|
3 |
|
(8 |
) |
|
Total |
|
|
|
$ |
160 |
|
$ |
(693 |
) |
|
| Summary of effect of derivative instruments designated as cash flow and net investment hedges |
|
|
|
Six Months Ended June 30, 2013 |
|
|
|
|
|
|
|
|
|
|
Amount of Gain (Loss) |
|
|
|
|
|
|
|
|
|
|
Recognized in Income on |
|
|
|
|
|
|
Gain or |
|
Gain or (Loss) |
|
Derivative (Ineffective |
|
|
|
|
|
|
(Loss) |
|
Reclassified from |
|
Portion and Amount |
|
|
|
|
|
|
Recognized in |
|
Accumulated OCI into |
|
Excluded from |
|
|
|
|
Notional |
|
Accumulated |
|
Income (1) |
|
Effectiveness Testing) |
|
|
(US$ in millions) |
|
Amount |
|
OCI (1) |
|
Location |
|
Amount |
|
Location |
|
Amount (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flow Hedge: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign Exchange (3) |
|
$ |
426 |
|
$ |
(11 |
) |
Cost of goods sold |
|
$ |
(1 |
) |
Cost of goods sold |
|
$ |
— |
|
|
Total |
|
$ |
426 |
|
$ |
(11 |
) |
|
|
$ |
(1 |
) |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Investment Hedge: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign Exchange (3) |
|
$ |
— |
|
$ |
37 |
|
Foreign exchange gains (losses) |
|
$ |
— |
|
Foreign exchange gains (losses) |
|
$ |
— |
|
|
Total |
|
$ |
— |
|
$ |
37 |
|
|
|
$ |
— |
|
|
|
$ |
— |
|
(1) The gain or (loss) recognized relates to the effective portion of the hedging relationship. At June 30, 2013, Bunge expects to reclassify into income in the next 12 months $(11) million after-tax loss related to its foreign exchange cash flow hedges. At June 30, 2013, Bunge expects to reclassify into income in the next 12 months $37 million after-tax gain related to its foreign exchange net investment hedges.
(2) There was no gain or loss recognized in income relating to the ineffective portion of the hedging relationships or relating to amounts excluded from the assessment of hedge effectiveness.
(3) The foreign exchange contracts mature at various dates in 2013 and 2014.
|
|
|
Six Months Ended June 30, 2012 |
|
|
|
|
|
|
|
|
|
|
|
|
Amount of Gain (Loss) |
|
|
|
|
|
|
|
|
|
|
|
|
Recognized in Income on |
|
|
|
|
|
|
Gain or |
|
Gain or (Loss) |
|
Derivative (Ineffective |
|
|
|
|
|
|
(Loss) |
|
Reclassified from |
|
Portion and Amount |
|
|
|
|
|
|
Recognized in |
|
Accumulated OCI into |
|
Excluded from |
|
|
|
|
Notional |
|
Accumulated |
|
Income (1) |
|
Effectiveness Testing) |
|
|
(US$ in millions) |
|
Amount |
|
OCI (1) |
|
Location |
|
Amount |
|
Location |
|
Amount (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flow Hedge: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign Exchange (3) |
|
$ |
475 |
|
$ |
(16 |
) |
Cost of goods sold |
|
$ |
(2 |
) |
Cost of goods sold |
|
$ |
— |
|
|
Total |
|
$ |
475 |
|
$ |
(16 |
) |
|
|
$ |
(2 |
) |
|
|
$ |
— |
|
(1) The gain or (loss) recognized relates to the effective portion of the hedging relationship. At June 30, 2012, Bunge expected to reclassify into income in the next 12 months approximately $(18) million after-tax losses related to its foreign exchange cash flow hedges.
(2) There was no gain or loss recognized in income relating to the ineffective portion of the hedging relationships or to amounts excluded from the assessment of hedge effectiveness.
(3) The foreign exchange contracts mature at various dates in 2012 and 2013. |
|
Foreign Exchange Derivatives
|
|
| Derivative Instruments |
|
| Summary of outstanding derivative instruments |
|
|
|
June 30, 2013 |
|
|
|
|
Exchange Traded |
|
|
|
|
|
|
|
|
|
|
Net (Short) |
|
Non-exchange Traded |
|
Unit of |
|
|
(US$ in millions) |
|
& Long (1) |
|
(Short) (2) |
|
Long (2) |
|
Measure |
|
|
Foreign Exchange |
|
|
|
|
|
|
|
|
|
|
Options |
|
$ |
4 |
|
$ |
(191 |
) |
$ |
70 |
|
Delta |
|
|
Forwards |
|
(107 |
) |
(15,928 |
) |
20,528 |
|
Notional |
|
|
Swaps |
|
— |
|
(48 |
) |
174 |
|
Notional |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Exchange traded futures and options are presented on a net (short) and long position basis.
(2) Non-exchange traded swaps, options and forwards are presented on a gross (short) and long position basis.
|
|
Agricultural Commodity Derivatives
|
|
| Derivative Instruments |
|
| Summary of outstanding derivative instruments |
|
|
|
June 30, 2013 |
|
|
|
|
Exchange Traded |
|
|
|
|
|
|
|
|
|
|
Net (Short) & |
|
Non-exchange Traded |
|
Unit of |
|
|
|
|
Long (1) |
|
(Short) (2) |
|
Long (2) |
|
Measure |
|
|
Agricultural Commodities |
|
|
|
|
|
|
|
|
|
|
Futures |
|
(8,069,066 |
) |
— |
|
— |
|
Metric Tons |
|
|
Options |
|
(54,804 |
) |
(142,958 |
) |
— |
|
Metric Tons |
|
|
Forwards |
|
— |
|
(30,112,730 |
) |
25,457,612 |
|
Metric Tons |
|
|
Swaps |
|
(105,000 |
) |
(1,460,811 |
) |
957,399 |
|
Metric Tons |
|
(1) Exchange traded futures and options are presented on a net (short) and long position basis.
(2) Non-exchange traded swaps, options and forwards are presented on a gross (short) and long position basis.
|
|
Ocean Freight Derivatives
|
|
| Derivative Instruments |
|
| Summary of outstanding derivative instruments |
|
|
|
June 30, 2013 |
|
|
|
|
Exchange Cleared |
|
|
|
|
|
|
|
|
|
|
Net (Short) & |
|
Non-exchange Cleared |
|
Unit of |
|
|
|
|
Long (1) |
|
(Short) (2) |
|
Long (2) |
|
Measure |
|
|
Ocean Freight |
|
|
|
|
|
|
|
|
|
|
FFA |
|
(5,900 |
) |
— |
|
— |
|
Hire Days |
|
|
FFA Options |
|
(775 |
) |
— |
|
— |
|
Hire Days |
|
(1) Exchange cleared futures and options are presented on a net (short) and long position basis.
(2) Non-exchange cleared options and forwards are presented on a gross (short) and long position basis.
|
|
Energy Derivatives
|
|
| Derivative Instruments |
|
| Summary of outstanding derivative instruments |
|
|
|
June 30, 2013 |
|
|
|
|
Exchange
Traded |
|
|
|
|
|
|
|
|
|
|
Net (Short) & |
|
Non-exchange Traded |
|
Unit of |
|
|
|
|
Long (1) |
|
(Short) (2) |
|
Long (2) |
|
Measure (3) |
|
|
Natural Gas (3) |
|
|
|
|
|
|
|
|
|
|
Futures |
|
1,630,684 |
|
— |
|
— |
|
MMBtus |
|
|
Swaps |
|
— |
|
— |
|
635,355 |
|
MMBtus |
|
|
Options |
|
(3,572,871 |
) |
— |
|
— |
|
MMBtus |
|
|
Energy—Other |
|
|
|
|
|
|
|
|
|
|
Futures |
|
2,891,880 |
|
— |
|
— |
|
Metric Tons |
|
|
Forwards |
|
— |
|
(320,210 |
) |
47,852,211 |
|
Metric Tons |
|
|
Swaps |
|
38,000 |
|
— |
|
— |
|
Metric Tons |
|
|
Options |
|
116,164 |
|
— |
|
— |
|
Metric Tons |
|
(1) Exchange traded futures and options are presented on a net (short) and long position basis.
(2) Non-exchange traded swaps, options and forwards are presented on a gross (short) and long position basis.
(3) Million British Thermal Units (MMBtus) are the standard unit of measurement used to denote an amount of natural gas.
|