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DISCONTINUED OPERATIONS AND BUSINESS DIVESTITURES
 12 Months Ended
Dec. 31, 2015
DISCONTINUED OPERATIONS AND BUSINESS DIVESTITURES  
DISCONTINUED OPERATIONS AND BUSINESS DIVESTITURES

3. DISCONTINUED OPERATIONS AND BUSINESS DIVESTITURES

 

In August 2013, Bunge sold its Brazilian fertilizer distribution business, including blending facilities, brands and warehouses to Yara for $750 million in cash. As a result of the transaction, Bunge no longer has significant ongoing cash flows related to the Brazilian fertilizer business or any significant ongoing participation in the operations of this business. Bunge received cash proceeds of the Brazilian real equivalent of $750 million in cash upon closing the transaction, resulting in a gain of $148 million ($112 million net of tax). Included in the gain are approximately $7 million of transaction costs incurred in connection with the divestiture and $41 million release of the cumulative translation adjustment associated with the disposed business.

 

                                                                                                                                                                                    

(US$ in millions)

 

Year Ended
December 31,
2013

 

Net sales

 

$
1,217

 

Cost of goods sold

 

 
(1,138

)

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Gross profit

 

 
79

 

Selling, general and administrative expenses

 

 
(64

)

Interest income

 

 
14

 

Interest expense

 

 
(9

)

Foreign exchange gain (loss)

 

 
(7

)

Other income (expenses)—net

 

 
(12

)

Gain on sale of Brazilian fertilizer business

 

 
148

 

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Income (loss) from discontinued operations before income tax

 

 
149

 

Income tax (expense) benefit

 

 
(52

)

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Income (loss) from discontinued operations, net of tax

 

$
97

 

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