4. TRADE STRUCTURED FINANCE PROGRAM

Bunge engages in various trade structured finance activities to leverage the value of its trade flows across its operating regions. For the three months ended March 31, 2017 and 2016, the net return from these activities, was $11 million and $15 million, respectively, and were included as a reduction of cost of goods sold in the accompanying consolidated statements of income. These activities include programs under which Bunge generally obtains U.S. dollar-denominated letters of credit (“LCs”) (each based on an underlying commodity trade flow) from financial institutions, and time deposits denominated in either the local currency of the financial institutions counterparties or in U.S. dollars, as well as foreign exchange forward contracts, all of which are subject to legally enforceable set-off agreements. The LCs and foreign exchange contracts are presented within the line item letter of credit obligations under trade structured finance program on the condensed consolidated balance sheets as of March 31, 2017 and December 31, 2016.

The table below summarizes the assets and liabilities included in the condensed consolidated balance sheets and the associated fair value amounts at March 31, 2017 and December 31, 2016, related to the program. The fair values approximated the carrying amount of the related financial instruments.

	March 31,		December 31,
(US$ in millions)	2017		2016
Current assets:
Carrying value of time deposits	$	26	$	64

Fair value (Level 2 measurement) of time deposits	$	26	$	64


Non-current assets:
Carrying value of time deposits	$	464	$	464

Fair value (Level 2 measurement) of time deposits	$	464	$	464


Current liabilities:
Carrying value of letters of credit obligations and foreign exchange contracts	$	490	$	528


Fair value (Level 2 measurement) of letters of credit obligations	$	489	$	528
Fair value (Level 2 measurement) of foreign exchange forward contracts-(gains) losses	1		—

Total fair value (Level 2 measurement) of letters of credit obligations and foreign exchange contracts	$	490	$	528

As of March 31, 2017 and December 31, 2016, time deposits, LCs, and foreign exchange contracts of $6,110 million and $5,732 million, respectively, were presented net on the condensed consolidated balance sheets as the criteria of ASC 210-20, Offsetting, had been met. At March 31, 2017 and December 31, 2016, time deposits, including those presented on a net basis, carried weighted-average interest rates of 2.45% and 2.36%, respectively. During the three months ended March 31, 2017 and 2016, total net proceeds from issuances of LCs were $1,604 million and $1,396 million, respectively. These cash inflows are offset by the related cash outflows resulting from placement of the time deposits and repayment of the LCs. All cash flows related to the programs are included in operating activities in the condensed consolidated statements of cash flows.