18. 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 and 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 segment revenues generated from these transfers are shown in the following table as “Inter-segment revenues”.

(US$ in millions)

				Edible												Discontinued
Three Months Ended				Oil			Milling			Sugar and						Operations &
September 30, 2016	Agribusiness			Products			Products			Bioenergy			Fertilizer			Unallocated (1)			Total
Net sales to external customers	$	8,063		$	1,727		$	430		$	1,074		$	129		$	—		$	11,423
Inter–segment revenues	972			29			—			8			—			(1,009		)	—
Gross profit	266			117			89			67			17			—			556
Foreign exchange gains (losses)	(7		)	—			—			2			(1		)	—			(6		)
Noncontrolling interests (1)	(13		)	(2		)	—			—			(2		)	5			(12		)
Other income (expense) – net	11			(3		)	(1		)	(4		)	1			—			4
Segment EBIT (3)	83			34			52			35			9			—			213
Discontinued operations (5)	—			—			—			—			—			5			5
Depreciation, depletion and amortization	(61		)	(24		)	(16		)	(45		)	(3		)	—			(149		)
Total assets	$	12,396		$	2,030		$	1,508		$	3,532		$	352		$	227		$	20,045

Three Months Ended
September 30, 2015
Net sales to external customers	$	7,718		$	1,659		$	375		$	891		$	119		$	—		$	10,762
Inter–segment revenues	999			44			—			9			—			(1,052		)	—
Gross profit	527			98			66			53			1			—			745
Foreign exchange gains (losses)	5			(4		)	(4		)	(23		)	2			—			(24		)
Noncontrolling interests (1)	5			(2		)	—			—			(1		)	3			5
Other income (expense) – net(2)	47			3			(1		)	(1		)	1			—			49
Segment EBIT (3)	369			13			32			3			(3		)	—			414
Discontinued operations (5)	—			—			—			—			—			21			21
Depreciation, depletion and amortization	(58		)	(22		)	(10		)	(43		)	(3		)	—			(136		)
Total assets	$	12,669		$	1,975		$	1,037		$	2,219		$	358		$	181		$	18,439

				Edible												Discontinued
Nine Months Ended				Oil			Milling			Sugar and						Operations &
September 30, 2016	Agribusiness			Products			Products			Bioenergy			Fertilizer			Unallocated (1)			Total
Net sales to external customers	$	21,870		$	4,958		$	1,243		$	2,541		$	268		$	—		$	30,880
Inter—segment revenues	2,822			80			1			10			—			(2,913		)	—
Gross profit	1,039			316			212			108			31			—			1,706
Foreign exchange gains (losses)	13			(2		)	(5		)	5			(2		)	—			9
Noncontrolling interests (1)	(13		)	(5		)	—			—			(2		)	12			(8		)
Other income (expense) – net	5			(4		)	(3		)	(13		)	1			—			(14		)
Segment EBIT (3) (4)	533			66			107			21			13			—			740
Discontinued operations (5)	—			—			—			—			—			(8		)	(8		)
Depreciation, depletion and amortization	(174		)	(69		)	(47		)	(103		)	(9		)	—			(402		)
Total assets	$	12,396		$	2,030		$	1,508		$	3,532		$	352		$	227		$	20,045

Nine Months Ended
September 30, 2015
Net sales to external customers	$	23,373		$	4,974		$	1,230		$	2,519		$	254		$	—		$	32,350
Inter–segment revenues	2,570			126			36			12			—			(2,744		)	—
Gross profit	1,393			297			193			99			8			—			1,990
Foreign exchange gains (losses)	29			—			(8		)	(38		)	2			—			(15		)
Noncontrolling interests (1)	(6		)	(5		)	—			—			(1		)	13			1
Other income (expense) – net(2)	47			3			(3		)	(7		)	1			—			41
Segment EBIT (3) (4)	863			43			88			(32		)	(8		)	—			954
Discontinued operations (5)	—			—			—			—			—			36			36
Depreciation, depletion and amortization	(173		)	(65		)	(33		)	(121		)	(11		)	—			(403		)
Total assets	$	12,669		$	1,975		$	1,037		$	2,219		$	358		$	181		$	18,439

⁽¹⁾

Includes noncontrolling interests share of interest and tax to reconcile to consolidated noncontrolling interest and discontinued operations of Brazilian fertilizer distribution business and certain asset management operations.

⁽²⁾

Includes a pre-tax gain of $47 million on the sale from certain Agribusiness grain assets in Canada.

⁽³⁾

Bunge uses total segment earnings before interest and taxes (“Total Segment EBIT”) to evaluate Bunge’s operating performance. Total Segment EBIT is the aggregate of each of our five reportable segments’ earnings before interest and taxes. Total Segment EBIT is a non-GAAP financial measure and is not intended to replace net income (loss) attributable to Bunge, the most directly comparable GAAP financial measure. Bunge’s management believes Total Segment EBIT is a useful measure of its reportable segments’ operating profitability, since the measure allows for an evaluation of segment performance without regard to its financing methods or capital structure. For this reason, operating performance measures such as Total Segment EBIT are widely used by analysts and investors in Bunge’s industries. Total Segment EBIT is not a measure of consolidated operating results under U.S. GAAP and should not be considered as an alternative to net income (loss) or any other measure of consolidated operating results under U.S. GAAP.

⁽⁴⁾

Includes a pre-tax, non-cash impairment charge of $12 million in other income (expense) - net recorded in the second quarter of 2016, related to intangible assets of certain patents of intellectual property. Includes a pre-tax, non-cash impairment charge of $15 million in cost of goods sold recorded in the second quarter of 2015, related to the announced closure of Bunge’s oil packaging plant in the United States.

⁽⁵⁾

Represents net income (loss) from discontinued operations.

A reconciliation of Net income attributable to Bunge to Total Segment EBIT follows:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(US$ In millions)	2016			2015			2016			2015
Net income attributable to Bunge	$	118		$	239		$	474		$	588
Interest income	(13		)	(18		)	(37		)	(42		)
Interest expense	73			77			189			187
Income tax expense	45			140			118			270
(Income) loss from discontinued operations, net of tax	(5		)	(21		)	8			(36		)
Noncontrolling interest share of interest and tax	(5		)	(3		)	(12		)	(13		)

Total Segment EBIT from continuing operations	$	213		$	414		$	740		$	954