v2.4.0.8
OTHER CURRENT ASSETS
9 Months Ended
Sep. 30, 2013
OTHER CURRENT ASSETS  
OTHER CURRENT ASSETS

7.                                      OTHER CURRENT ASSETS

 

Other current assets consist of the following:

 

 

 

September 30,

 

December 31,

 

(US$ in millions)

 

2013

 

2012

 

Prepaid commodity purchase contracts (1)

 

$

549

 

$

299

 

Secured advances to suppliers, net (2)

 

493

 

390

 

Unrealized gains on derivative contracts at fair value

 

1,733

 

1,230

 

Recoverable taxes, net

 

483

 

465

 

Margin deposits (3)

 

462

 

363

 

Marketable securities

 

148

 

105

 

Deferred purchase price receivable (4)

 

104

 

134

 

Prepaid expenses

 

289

 

314

 

Other

 

763

 

518

 

Total

 

$

5,024

 

$

3,818

 

 

(1)             Prepaid commodity purchase contracts represent advance payments against fixed price contracts for future delivery of specified quantities of agricultural commodities.

 

(2)             Bunge provides cash advances to suppliers, primarily Brazilian farmers of soybeans and sugarcane, to finance a portion of the suppliers’ production costs.  Bunge does not bear any of the costs or risks associated with the related growing crops.  The advances are largely collateralized by future crops and physical assets of the suppliers, carry a local market interest rate and settle when the farmer’s crop is harvested and sold.  The secured advances to farmers are reported net of allowances of $19 million and $12 million at September 30, 2013 and December 31, 2012, respectively.

 

Interest earned on secured advances to suppliers of $7 million and $5 million for the three months ended September 30, 2013 and 2012, respectively, and $22 million and $18 million for the nine months ended September 30, 2013 and 2012, respectively, is included in net sales in the condensed consolidated statements of income.

 

(3)             Margin deposits include U.S. treasury securities at fair value and cash.

 

(4)             Deferred purchase price receivable represents additional credit support for the investment conduits in Bunge’s accounts receivables sales program (see Note 13) and is recognized at its estimated fair value.