v3.10.0.1
COMMITMENTS AND CONTINGENCIES (Tables)
 6 Months Ended
Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]  
Liabilities related to general claims and lawsuits included in other non-current liabilities
Included in other non-current liabilities at June 30, 2018 and December 31, 2017 are the following amounts related to these matters:
(US$ in millions)
 
June 30,
2018
 
December 31,
2017
Non-income tax claims
 
$
135

 
$
161

Labor claims
 
78

 
92

Civil and other claims
 
94

 
103

Total
 
$
307

 
$
356
Summary of tax examinations against Brazilian subsidiaries
As of June 30, 2018, the Brazilian federal and state authorities have concluded examinations of the ICMS and PIS COFINS tax returns and have issued the outstanding claims (including applicable interest and penalties) as of:
(US$ in millions)
Years Examined
June 30, 2018
December 31, 2017
ICMS
1990 to Present
$
244

$
281

PIS/COFINS
2004 through 2013
$
167

$
200
Maximum potential future payments related to guarantees
Bunge has issued or was a party to the following guarantees at June 30, 2018:
(US$ in millions)
 
Maximum
Potential
Future
Payments
Unconsolidated affiliates financing (1) (2)
 
$
318

Residual value guarantee (3)
 
269

Total
 
$
587

 
(1)
Bunge issued guarantees to certain financial institutions related to debt of certain of its unconsolidated affiliates. The terms of the guarantees are equal to the terms of the related financings which have maturity dates in 2018 through 2034. There are no recourse provisions or collateral that would enable Bunge to recover any amounts paid under these guarantees. In addition, a Bunge subsidiary has guaranteed the obligations of two of its affiliates and in connection therewith has secured its guarantee obligations through a pledge of one of its affiliate's shares plus loans receivable from the affiliate to the financial institutions in the event that the guaranteed obligations are enforced. Based on the amounts drawn under such debt facilities at June 30, 2018, Bunge's potential liability was $113 million, and it had recorded a $19 million obligation related to these guarantees.
(2)
Bunge issued guarantees to certain third parties related to performance of its unconsolidated affiliates. The terms of the guarantees are equal to the completion date of a port terminal which is expected to be completed in 2020. There are no recourse provisions or collateral that would enable Bunge to recover any amounts paid under these guarantees. At June 30, 2018, Bunge's maximum potential future payments under these guarantees was $92 million, and no obligation has been recorded related to these guarantees.
(3)
Bunge issued guarantees to certain financial institutions which are party to certain operating lease arrangements for railcars and barges. These guarantees provide for a minimum residual value to be received by the lessor at conclusion of the lease term. These leases expire at various dates from 2019 through 2024. At June 30, 2018, Bunge’s recorded obligation related to these guarantees was $2 million.