| SEGMENT INFORMATION |
26. SEGMENT INFORMATION
Bunge has five reportable segments—Agribusiness, Edible Oil Products, Milling Products, Sugar and Bioenergy, 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 Edible Oil Products segment involves the processing, production and marketing of products derived from vegetable oils. The Milling Products segment involves the processing, production and marketing of products derived primarily from wheat and corn. 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. Following the classification of the Brazilian fertilizer distribution and North American fertilizer businesses as discontinued operations, the activities of the Fertilizer segment include its port operations in Brazil and Argentina and its blending and retail operations in Argentina.
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.
|
(US$ in millions)
|
|
Agribusiness
|
|
Edible
Oil
Products
|
|
Milling
Products
|
|
Sugar and
Bioenergy
|
|
Fertilizer
|
|
Discontinued
Operations &
Unallocated
|
|
Total
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales to external customers
|
|
$
|
31,267
|
|
$
|
6,698
|
|
$
|
1,609
|
|
$
|
3,495
|
|
$
|
386
|
|
$
|
—
|
|
$
|
43,455
|
|
|
Inter-segment revenues
|
|
|
3,499
|
|
|
178
|
|
|
37
|
|
|
12
|
|
|
—
|
|
|
(3,726
|
)
|
|
—
|
|
|
Gross profit
|
|
|
1,858
|
|
|
404
|
|
|
237
|
|
|
164
|
|
|
30
|
|
|
—
|
|
|
2,693
|
|
|
Foreign exchange gains (losses)
|
|
|
67
|
|
|
—
|
|
|
(8
|
)
|
|
(68
|
)
|
|
1
|
|
|
—
|
|
|
(8
|
)
|
|
Noncontrolling interests(1)
|
|
|
(9
|
)
|
|
(8
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
19
|
|
|
1
|
|
|
Other income (expense)—net
|
|
|
(3
|
)
|
|
4
|
|
|
(3
|
)
|
|
(15
|
)
|
|
(1
|
)
|
|
—
|
|
|
(18
|
)
|
|
Segment EBIT(3)
|
|
|
1,108
|
|
|
59
|
|
|
103
|
|
|
(27
|
)
|
|
5
|
|
|
—
|
|
|
1,248
|
|
|
Discontinued operations(2)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
35
|
|
|
35
|
|
|
Depreciation, depletion and amortization
|
|
|
(234
|
)
|
|
(90
|
)
|
|
(46
|
)
|
|
(160
|
)
|
|
(15
|
)
|
|
—
|
|
|
(545
|
)
|
|
Investments in affiliates
|
|
|
249
|
|
|
—
|
|
|
—
|
|
|
80
|
|
|
—
|
|
|
—
|
|
|
329
|
|
|
Total assets
|
|
|
11,840
|
|
|
1,963
|
|
|
1,343
|
|
|
2,318
|
|
|
299
|
|
|
159
|
|
|
17,922
|
|
|
Capital expenditures
|
|
|
359
|
|
|
63
|
|
|
60
|
|
|
125
|
|
|
17
|
|
|
25
|
|
|
649
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales to external customers
|
|
$
|
42,109
|
|
$
|
7,972
|
|
$
|
2,064
|
|
$
|
4,542
|
|
$
|
474
|
|
$
|
—
|
|
$
|
57,161
|
|
|
Inter-segment revenues
|
|
|
3,510
|
|
|
161
|
|
|
88
|
|
|
—
|
|
|
—
|
|
|
(3,759
|
)
|
|
—
|
|
|
Gross profit
|
|
|
1,742
|
|
|
548
|
|
|
311
|
|
|
(41
|
)
|
|
61
|
|
|
—
|
|
|
2,621
|
|
|
Foreign exchange gains (losses)
|
|
|
39
|
|
|
(4
|
)
|
|
(8
|
)
|
|
19
|
|
|
1
|
|
|
—
|
|
|
47
|
|
|
Noncontrolling interests(1)
|
|
|
(23
|
)
|
|
(9
|
)
|
|
—
|
|
|
(1
|
)
|
|
(5
|
)
|
|
36
|
|
|
(2
|
)
|
|
Other income (expense)—net
|
|
|
8
|
|
|
5
|
|
|
(4
|
)
|
|
10
|
|
|
(2
|
)
|
|
—
|
|
|
17
|
|
|
Segment EBIT
|
|
|
890
|
|
|
58
|
|
|
131
|
|
|
(168
|
)
|
|
45
|
|
|
—
|
|
|
956
|
|
|
Discontinued operations(2)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
32
|
|
|
32
|
|
|
Depreciation, depletion and amortization
|
|
|
(240
|
)
|
|
(96
|
)
|
|
(47
|
)
|
|
(208
|
)
|
|
(16
|
)
|
|
—
|
|
|
(607
|
)
|
|
Investments in affiliates
|
|
|
178
|
|
|
—
|
|
|
—
|
|
|
116
|
|
|
—
|
|
|
—
|
|
|
294
|
|
|
Total assets
|
|
|
14,275
|
|
|
2,235
|
|
|
1,174
|
|
|
3,143
|
|
|
356
|
|
|
249
|
|
|
21,432
|
|
|
Capital expenditures
|
|
|
411
|
|
|
95
|
|
|
103
|
|
|
193
|
|
|
16
|
|
|
21
|
|
|
839
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales to external customers
|
|
$
|
45,507
|
|
$
|
9,165
|
|
$
|
2,012
|
|
$
|
4,215
|
|
$
|
448
|
|
$
|
—
|
|
$
|
61,347
|
|
|
Inter-segment revenues
|
|
|
4,978
|
|
|
138
|
|
|
9
|
|
|
61
|
|
|
3
|
|
|
(5,189
|
)
|
|
—
|
|
|
Gross profit
|
|
|
1,797
|
|
|
540
|
|
|
262
|
|
|
92
|
|
|
69
|
|
|
—
|
|
|
2,760
|
|
|
Foreign exchange gains (losses)
|
|
|
41
|
|
|
5
|
|
|
(1
|
)
|
|
3
|
|
|
5
|
|
|
—
|
|
|
53
|
|
|
Noncontrolling interests(1)
|
|
|
31
|
|
|
(7
|
)
|
|
—
|
|
|
9
|
|
|
(5
|
)
|
|
71
|
|
|
99
|
|
|
Other income (expense)—net
|
|
|
(2
|
)
|
|
10
|
|
|
2
|
|
|
—
|
|
|
34
|
|
|
—
|
|
|
44
|
|
|
Segment EBIT
|
|
|
1,032
|
|
|
163
|
|
|
125
|
|
|
(60
|
)
|
|
69
|
|
|
—
|
|
|
1,329
|
|
|
Discontinued operations(2)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
97
|
|
|
97
|
|
|
Depreciation, depletion and amortization
|
|
|
(240
|
)
|
|
(99
|
)
|
|
(28
|
)
|
|
(184
|
)
|
|
(17
|
)
|
|
—
|
|
|
(568
|
)
|
|
Investments in affiliates
|
|
|
185
|
|
|
—
|
|
|
—
|
|
|
56
|
|
|
—
|
|
|
—
|
|
|
241
|
|
|
Total assets
|
|
|
18,898
|
|
|
2,420
|
|
|
1,242
|
|
|
3,512
|
|
|
353
|
|
|
356
|
|
|
26,781
|
|
|
Capital expenditures
|
|
|
395
|
|
|
146
|
|
|
56
|
|
|
346
|
|
|
23
|
|
|
76
|
|
|
1,042
|
|
|
|
|
|
(1)
|
Includes the noncontrolling interests' share of interest and tax to reconcile to consolidated noncontrolling interests.
|
|
(2)
|
Represents net income (loss) from discontinued operations.
|
|
(3)
|
In addition, Bunge recorded pre-tax impairment charges of $57 million, of which $15 million, $14 million and $13 million are included in cost of goods sold, selling, general and administrative expenses and goodwill impairment, respectively primarily related to the announced closure of an oil packaging plant in the United States, the impairment of an equity method investment in a freight shipping company in Europe, a pre-tax goodwill impairment charge related to the tomato products business in Brazil. Of these pre-tax impairment charges, $14 million was allocated to the Agribusiness segment and $28 million was allocated to the Edible Oil segment.
|
Total segment earnings before interest and taxes ("EBIT") is an operating performance measure used by Bunge's management to evaluate segment operating activities. Bunge's management believes total segment EBIT is a useful measure of operating profitability, since the measure allows for an evaluation of the performance of its segments without regard to its financing methods or capital structure. In addition, EBIT is a financial measure that is widely used by analysts and investors in Bunge's industries.
A reconciliation of total segment EBIT to net income attributable to Bunge follows:
|
|
|
Year Ended December 31,
|
|
|
(US$ in millions)
|
|
2015
|
|
2014
|
|
2013
|
|
|
Total segment EBIT from continuing operations
|
|
$
|
1,248
|
|
$
|
956
|
|
$
|
1,329
|
|
|
Interest income
|
|
|
43
|
|
|
87
|
|
|
76
|
|
|
Interest expense
|
|
|
(258
|
)
|
|
(347
|
)
|
|
(363
|
)
|
|
Income tax (expense) benefit
|
|
|
(296
|
)
|
|
(249
|
)
|
|
(904
|
)
|
|
Income (loss) from discontinued operations, net of tax
|
|
|
35
|
|
|
32
|
|
|
97
|
|
|
Noncontrolling interests' share of interest and tax
|
|
|
19
|
|
|
36
|
|
|
71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Bunge
|
|
$
|
791
|
|
$
|
515
|
|
$
|
306
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales by product group to external customers were as follows:
|
|
|
Year Ended December 31,
|
|
|
(US$ in millions)
|
|
2015
|
|
2014
|
|
2013
|
|
|
Agricultural Commodity Products
|
|
$
|
31,267
|
|
$
|
42,109
|
|
$
|
45,507
|
|
|
Edible Oil Products
|
|
|
6,698
|
|
|
7,972
|
|
|
9,165
|
|
|
Wheat Milling Products
|
|
|
1,054
|
|
|
1,462
|
|
|
1,226
|
|
|
Corn Milling Products
|
|
|
555
|
|
|
602
|
|
|
786
|
|
|
Sugar and Bioenergy Products
|
|
|
3,495
|
|
|
4,542
|
|
|
4,215
|
|
|
Fertilizer Products
|
|
|
386
|
|
|
474
|
|
|
448
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
43,455
|
|
$
|
57,161
|
|
$
|
61,347
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Geographic area information for net sales to external customers, determined based on the location of the subsidiary making the sale, and long-lived assets follows:
|
|
|
Year Ended December 31,
|
|
|
(US$ in millions)
|
|
2015
|
|
2014
|
|
2013
|
|
|
Net sales to external customers:
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
|
$
|
14,346
|
|
$
|
18,234
|
|
$
|
19,821
|
|
|
United States
|
|
|
10,256
|
|
|
12,199
|
|
|
12,764
|
|
|
Brazil
|
|
|
6,117
|
|
|
10,422
|
|
|
9,679
|
|
|
Asia-Pacific
|
|
|
8,680
|
|
|
10,932
|
|
|
12,516
|
|
|
Argentina
|
|
|
1,490
|
|
|
1,857
|
|
|
2,609
|
|
|
Canada
|
|
|
1,245
|
|
|
1,784
|
|
|
2,220
|
|
|
Rest of world
|
|
|
1,321
|
|
|
1,733
|
|
|
1,738
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
43,455
|
|
$
|
57,161
|
|
$
|
61,347
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
(US$ in millions)
|
|
2015
|
|
2014
|
|
2013
|
|
|
Long-lived assets(1):
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
|
$
|
1,074
|
|
$
|
1,181
|
|
$
|
1,301
|
|
|
United States
|
|
|
1,130
|
|
|
1,022
|
|
|
965
|
|
|
Brazil
|
|
|
2,086
|
|
|
2,711
|
|
|
3,145
|
|
|
Asia-Pacific
|
|
|
558
|
|
|
572
|
|
|
565
|
|
|
Argentina
|
|
|
204
|
|
|
257
|
|
|
248
|
|
|
Canada
|
|
|
400
|
|
|
347
|
|
|
316
|
|
|
Rest of world
|
|
|
377
|
|
|
480
|
|
|
540
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
5,829
|
|
$
|
6,570
|
|
$
|
7,080
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)Long-lived assets include property, plant and equipment, net, goodwill and other intangible assets, net, investments in affiliates and non-current assets held for sale.
|