| SEGMENT INFORMATION |
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 trading and 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 &
|
|
|
|
|
June 30, 2017
|
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Agribusiness
|
|
Products
|
|
Products
|
|
Bioenergy
|
|
Fertilizer
|
|
Unallocated (1)
|
|
Total
|
|
|
Net sales to external customers
|
|
$
|
8,298
|
|
$
|
1,970
|
|
$
|
390
|
|
$
|
906
|
|
$
|
81
|
|
$
|
—
|
|
$
|
11,645
|
|
|
Inter—segment revenues
|
|
1,027
|
|
32
|
|
—
|
|
—
|
|
—
|
|
(1,059
|
)
|
—
|
|
|
Foreign exchange gains (losses)
|
|
43
|
|
1
|
|
(1
|
)
|
4
|
|
4
|
|
—
|
|
51
|
|
|
Noncontrolling interests (1)
|
|
(5
|
)
|
(1
|
)
|
—
|
|
—
|
|
(1
|
)
|
1
|
|
(6
|
)
|
|
Other income (expense) — net
|
|
1
|
|
3
|
|
1
|
|
(3
|
)
|
—
|
|
—
|
|
2
|
|
|
Segment EBIT (2)
|
|
18
|
|
28
|
|
16
|
|
8
|
|
3
|
|
—
|
|
73
|
|
|
Discontinued operations (3)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
6
|
|
6
|
|
|
Depreciation, depletion and amortization
|
|
(66
|
)
|
(26
|
)
|
(15
|
)
|
(42
|
)
|
(3
|
)
|
—
|
|
(152
|
)
|
|
Total assets
|
|
$
|
12,941
|
|
$
|
2,406
|
|
$
|
1,530
|
|
$
|
3,032
|
|
$
|
344
|
|
$
|
180
|
|
$
|
20,433
|
|
|
Three Months Ended
June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales to external customers
|
|
$
|
7,524
|
|
$
|
1,705
|
|
$
|
422
|
|
$
|
809
|
|
$
|
81
|
|
$
|
—
|
|
$
|
10,541
|
|
|
Inter—segment revenues
|
|
991
|
|
25
|
|
1
|
|
2
|
|
—
|
|
(1,019
|
)
|
—
|
|
|
Foreign exchange gains (losses)
|
|
(4
|
)
|
(1
|
)
|
(4
|
)
|
3
|
|
—
|
|
—
|
|
(6
|
)
|
|
Noncontrolling interests (1)
|
|
(2
|
)
|
(1
|
)
|
—
|
|
—
|
|
—
|
|
4
|
|
1
|
|
|
Other income (expense) — net
|
|
(9
|
)
|
—
|
|
—
|
|
(4
|
)
|
—
|
|
—
|
|
(13
|
)
|
|
Segment EBIT (2)
|
|
168
|
|
2
|
|
33
|
|
—
|
|
2
|
|
—
|
|
205
|
|
|
Discontinued operations (3)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(4
|
)
|
(4
|
)
|
|
Depreciation, depletion and amortization
|
|
(59
|
)
|
(23
|
)
|
(17
|
)
|
(39
|
)
|
(3
|
)
|
—
|
|
(141
|
)
|
|
Total assets
|
|
$
|
14,655
|
|
$
|
2,013
|
|
$
|
1,503
|
|
$
|
3,410
|
|
$
|
330
|
|
$
|
184
|
|
$
|
22,095
|
|
|
|
|
|
|
Edible
|
|
|
|
|
|
|
|
Discontinued
|
|
|
|
|
Six Months Ended
|
|
|
|
Oil
|
|
Milling
|
|
Sugar and
|
|
|
|
Operations &
|
|
|
|
|
June 30, 2017
|
|
Agribusiness
|
|
Products
|
|
Products
|
|
Bioenergy
|
|
Fertilizer
|
|
Unallocated (1)
|
|
Total
|
|
|
Net sales to external customers
|
|
$
|
16,117
|
|
$
|
3,850
|
|
$
|
772
|
|
$
|
1,894
|
|
$
|
133
|
|
$
|
—
|
|
$
|
22,766
|
|
|
Inter—segment revenues
|
|
2,040
|
|
70
|
|
5
|
|
—
|
|
—
|
|
(2,115
|
)
|
—
|
|
|
Foreign exchange gains (losses)
|
|
92
|
|
4
|
|
(1
|
)
|
9
|
|
3
|
|
—
|
|
107
|
|
|
Noncontrolling interests (1)
|
|
(5
|
)
|
(3
|
)
|
—
|
|
—
|
|
(1
|
)
|
2
|
|
(7
|
)
|
|
Other income (expense) — net
|
|
4
|
|
1
|
|
(1
|
)
|
(5
|
)
|
—
|
|
—
|
|
(1
|
)
|
|
Segment EBIT (2)
|
|
127
|
|
64
|
|
25
|
|
(9
|
)
|
(1
|
)
|
—
|
|
206
|
|
|
Discontinued operations (3)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
Depreciation, depletion and amortization
|
|
(127
|
)
|
(50
|
)
|
(30
|
)
|
(69
|
)
|
(6
|
)
|
—
|
|
(282
|
)
|
|
Total assets
|
|
$
|
12,941
|
|
$
|
2,406
|
|
$
|
1,530
|
|
$
|
3,032
|
|
$
|
344
|
|
$
|
180
|
|
$
|
20,433
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales to external customers
|
|
$
|
13,807
|
|
$
|
3,231
|
|
$
|
813
|
|
$
|
1,467
|
|
$
|
139
|
|
$
|
—
|
|
$
|
19,457
|
|
|
Inter—segment revenues
|
|
1,849
|
|
51
|
|
1
|
|
2
|
|
—
|
|
(1,903
|
)
|
—
|
|
|
Foreign exchange gains (losses)
|
|
20
|
|
(2
|
)
|
(5
|
)
|
3
|
|
(1
|
)
|
—
|
|
15
|
|
|
Noncontrolling interests (1)
|
|
—
|
|
(3
|
)
|
—
|
|
—
|
|
—
|
|
7
|
|
4
|
|
|
Other income (expense) — net
|
|
(6
|
)
|
(1
|
)
|
(2
|
)
|
(9
|
)
|
—
|
|
—
|
|
(18
|
)
|
|
Segment EBIT (2)
|
|
450
|
|
32
|
|
55
|
|
(14
|
)
|
4
|
|
—
|
|
527
|
|
|
Discontinued operations (3)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(13
|
)
|
(13
|
)
|
|
Depreciation, depletion and amortization
|
|
(114
|
)
|
(45
|
)
|
(31
|
)
|
(58
|
)
|
(6
|
)
|
—
|
|
(254
|
)
|
|
Total assets
|
|
$
|
14,655
|
|
$
|
2,013
|
|
$
|
1,503
|
|
$
|
3,410
|
|
$
|
330
|
|
$
|
184
|
|
$
|
22,095
|
|
|
(1)
| |
Includes noncontrolling interests share of interest and tax to reconcile to consolidated noncontrolling interest. |
|
(2)
| |
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 industry. |
|
(3)
| |
Represents net income (loss) from discontinued operations. |
A reconciliation of total Segment EBIT to net income attributable to Bunge follows:
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
|
June 30,
|
|
June 30,
|
|
|
(US$ in millions)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
Total Segment EBIT from continuing operations
|
|
$
|
73
|
|
$
|
205
|
|
$
|
206
|
|
$
|
527
|
|
|
Interest income
|
|
8
|
|
14
|
|
20
|
|
24
|
|
|
Interest expense
|
|
(62
|
)
|
(59
|
)
|
(127
|
)
|
(116
|
)
|
|
Income tax (expense) benefit
|
|
55
|
|
(39
|
)
|
27
|
|
(73
|
)
|
|
Income (loss) from discontinued operations, net of tax
|
|
6
|
|
(4
|
)
|
—
|
|
(13
|
)
|
|
Noncontrolling interests’ share of interest and tax
|
|
1
|
|
4
|
|
2
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Bunge
|
|
$
|
81
|
|
$
|
121
|
|
$
|
128
|
|
$
|
356
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|