v3.5.0.2
OTHER CURRENT ASSETS (TABLES)
6 Months Ended
Jun. 30, 2016
OTHER CURRENT ASSETS  
Schedule of other current assets

 

 

 

June 30,

 

December 31,

 

(US$ in millions)

 

2016

 

2015

 

Unrealized gains on derivative contracts, at fair value

 

$

2,965 

 

$

1,456 

 

Prepaid commodity purchase contracts (1)

 

415 

 

287 

 

Secured advances to suppliers, net (2)

 

240 

 

521 

 

Recoverable taxes, net

 

323 

 

364 

 

Margin deposits

 

595 

 

467 

 

Marketable securities, at fair value and other short-term investments

 

215 

 

234 

 

Deferred purchase price receivable, at fair value (3)

 

103 

 

79 

 

Prepaid expenses

 

213 

 

132 

 

Other

 

325 

 

359 

 

 

 

 

 

 

 

Total

 

$

5,394 

 

$

3,899 

 

 

 

 

 

 

 

 

 

 

 

(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 $2 million and $2 million at June 30, 2016 and December 31, 2015, respectively.

 

Interest earned on secured advances to suppliers of $7 million and $9 million for the three months ended June 30, 2016 and 2015, respectively, and $18 million and $20 million for the six months ended June 30, 2016 and 2015, respectively, is included in net sales in the condensed consolidated statements of income.

 

(3)

Deferred purchase price receivable represents additional credit support for the investment conduits in Bunge’s accounts receivables sales program (see Note 12).

Summary of marketable securities and short-term investments

 

 

 

June 30,

 

December 31,

 

(US$ in millions)

 

2016

 

2015

 

Foreign government securities

 

$

81 

 

$

61 

 

Corporate debt securities

 

77 

 

92 

 

Certificate of deposits/time deposits

 

47 

 

55 

 

Other

 

10 

 

26 

 

 

 

 

 

 

 

Total marketable securities and other short-term investments

 

$

215 

 

$

234