| SEGMENT INFORMATION |
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.” | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, 2018 | (US$ in millions) | | Agribusiness | | Edible Oil Products | | Milling Products | | Sugar and Bioenergy | | Fertilizer | | Discontinued Operations & Unallocated (1) | | Total | Net sales to external customers | | $ | 7,905 |
| | $ | 2,298 |
| | $ | 427 |
| | $ | 629 |
| | $ | 153 |
| | $ | — |
| | $ | 11,412 |
| Inter–segment revenues | | 1,162 |
| | 38 |
| | — |
| | — |
| | 1 |
| | (1,201 | ) | | — |
| Foreign exchange gains (losses) | | (23 | ) | | (2 | ) | | 4 |
| | 3 |
| | (2 | ) | | — |
| | (20 | ) | Noncontrolling interests (1) | | (10 | ) | | (1 | ) | | — |
| | 1 |
| | (1 | ) | | 2 |
| | (9 | ) | Other income (expense) – net | | (4 | ) | | (1 | ) | | (1 | ) | | (1 | ) | | — |
| | (12 | ) | | (19 | ) | Segment EBIT (2) | | 464 |
| | 30 |
| | 30 |
| | — |
| | 23 |
| | (12 | ) | | 535 |
| Discontinued operations (3) | | — |
| | — |
| | — |
| | — |
| | — |
| | 7 |
| | 7 |
| Depreciation, depletion and amortization | | (61 | ) | | (40 | ) | | (15 | ) | | (41 | ) | | (2 | ) | | — |
| | (159 | ) | Total assets | | 13,767 |
| | 3,926 |
| | 1,498 |
| | 1,763 |
| | 345 |
| | 147 |
| | 21,446 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, 2017 | (US$ in millions) | | Agribusiness | | Edible
Oil
Products | | Milling
Products | | Sugar and
Bioenergy | | Fertilizer | | Discontinued Operations & Unallocated (1) | | Total | Net sales to external customers | | $ | 7,720 |
| | $ | 2,027 |
| | $ | 397 |
| | $ | 1,158 |
| | $ | 121 |
| | $ | — |
| | $ | 11,423 |
| Inter–segment revenues | | 1,097 |
| | 40 |
| | — |
| | 19 |
| | 3 |
| | (1,159 | ) | | — |
| Foreign exchange gains (losses) | | 1 |
| | — |
| | — |
| | 1 |
| | (1 | ) | | — |
| | 1 |
| Noncontrolling interests (1) | | 2 |
| | (2 | ) | | — |
| | — |
| | (1 | ) | | 1 |
| | — |
| Other income (expense) – net | | 24 |
| | (2 | ) | | (1 | ) | | 4 |
| | — |
| | — |
| | 25 |
| Segment EBIT (2) | | 103 |
| | 34 |
| | 23 |
| | 10 |
| | 5 |
| | — |
| | 175 |
| Discontinued operations (3) | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| Depreciation, depletion and amortization | | (69 | ) | | (27 | ) | | (16 | ) | | (51 | ) | | (3 | ) | | — |
| | (166 | ) | Total assets | | 13,286 |
| | 2,508 |
| | 1,542 |
| | 2,670 |
| | 357 |
| | 189 |
| | 20,552 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Nine Months Ended September 30, 2018 | (US$ in millions) | | Agribusiness | | Edible Oil Products | | Milling Products | | Sugar and Bioenergy | | Fertilizer | | Discontinued Operations & Unallocated (1) | | Total | Net sales to external customers | | $ | 24,092 |
| | $ | 6,772 |
| | $ | 1,262 |
| | $ | 1,774 |
| | $ | 300 |
| | $ | — |
| | $ | 34,200 |
| Inter–segment revenues | | 3,457 |
| | 128 |
| | — |
| | 18 |
| | 1 |
| | (3,604 | ) | | — |
| Foreign exchange gains (losses) | | (116 | ) | | 2 |
| | 4 |
| | — |
| | (6 | ) | | — |
| | (116 | ) | Noncontrolling interests (1) | | (9 | ) | | (6 | ) | | — |
| | 1 |
| | (2 | ) | | 3 |
| | (13 | ) | Other income (expense) – net | | 42 |
| | (5 | ) | | (3 | ) | | (14 | ) | | 1 |
| | (12 | ) | | 9 |
| Segment EBIT (2) | | 612 |
| | 69 |
| | 73 |
| | (87 | ) | | 12 |
| | (12 | ) | | 667 |
| Discontinued operations (3) | | — |
| | — |
| | — |
| | — |
| | — |
| | 12 |
| | 12 |
| Depreciation, depletion and amortization | | (192 | ) | | (113 | ) | | (44 | ) | | (108 | ) | | (6 | ) | | — |
| | (463 | ) | Total assets | | 13,767 |
| | 3,926 |
| | 1,498 |
| | 1,763 |
| | 345 |
| | 147 |
| | 21,446 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Nine Months Ended September 30, 2017 | (US$ in millions) | | Agribusiness | | Edible
Oil
Products | | Milling
Products | | Sugar and
Bioenergy | | Fertilizer | | Discontinued Operations & Unallocated (1) | | Total | Net sales to external customers | | $ | 23,837 |
| | $ | 5,877 |
| | $ | 1,169 |
| | $ | 3,052 |
| | $ | 254 |
| | $ | — |
| | $ | 34,189 |
| Inter–segment revenues | | 3,136 |
| | 111 |
| | 5 |
| | 19 |
| | 3 |
| | (3,274 | ) | | — |
| Foreign exchange gains (losses) | | 93 |
| | 4 |
| | (1 | ) | | 10 |
| | 2 |
| | — |
| | 108 |
| Noncontrolling interests (1) | | (3 | ) | | (5 | ) | | — |
| | — |
| | (2 | ) | | 3 |
| | (7 | ) | Other income (expense) – net | | 27 |
| | — |
| | (2 | ) | | (1 | ) | | — |
| | — |
| | 24 |
| Segment EBIT (2) | | 230 |
| | 98 |
| | 48 |
| | 1 |
| | 4 |
| | — |
| | 381 |
| Discontinued operations (3) | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| Depreciation, depletion and amortization | | (196 | ) | | (77 | ) | | (46 | ) | | (120 | ) | | (9 | ) | | — |
| | (448 | ) | Total assets | | 13,286 |
| | 2,508 |
| | 1,542 |
| | 2,670 |
| | 357 |
| | 189 |
| | 20,552 |
|
| | (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, total segment EBIT is a financial measure that is widely used by analysts and investors in Bunge’s industry. However, 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 U.S. GAAP financial measure. Further, 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. See the reconciliation of total segment EBIT to net income (loss) in the table below. |
| | (3) | Represents net income (loss) from discontinued operations. |
A reconciliation of total Segment EBIT to net income (loss) attributable to Bunge follows: | | | | | | | | | | | | | | | | | | | | Three Months Ended
September 30, | | Nine Months Ended
September 30, | (US$ in millions) | | 2018 | | 2017 | | 2018 | | 2017 | Total Segment EBIT from continuing operations | | $ | 535 |
| | $ | 175 |
| | $ | 667 |
| | $ | 381 |
| Interest income | | 7 |
| | 9 |
| | 21 |
| | 29 |
| Interest expense | | (101 | ) | | (64 | ) | | (265 | ) | | (191 | ) | Income tax (expense) benefit | | (85 | ) | | (29 | ) | | (106 | ) | | (2 | ) | Income (loss) from discontinued operations, net of tax | | 7 |
| | — |
| | 12 |
| | — |
| Noncontrolling interests' share of interest and tax | | 2 |
| | 1 |
| | 3 |
| | 3 |
| Net income (loss) attributable to Bunge | | $ | 365 |
| | $ | 92 |
| | $ | 332 |
| | $ | 220 |
|
The Company’s revenue comprises sales from commodity contracts that are accounted for under ASC 815, Derivatives and Hedging (ASC 815) and sales of other products and services that are accounted for under ASC 606, Revenue from Contracts with Customers (ASC 606). The following tables provide a disaggregation of net sales to external customers between sales from contracts with customers and sales from other arrangements: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, 2018 | (US$ in millions) | | Agribusiness | | Edible Oil Products | | Milling Products | | Sugar and Bioenergy | | Fertilizer | | Total | Sales from other arrangements | | 7,641 |
| | 492 |
| | 22 |
| | 431 |
| | — |
| | 8,586 |
| Sales from contracts with customers | | $ | 264 |
| | $ | 1,806 |
| | $ | 405 |
| | $ | 198 |
| | $ | 153 |
| | $ | 2,826 |
| Net sales to external customers | | 7,905 |
| | 2,298 |
| | 427 |
| | 629 |
| | 153 |
| | 11,412 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | Nine Months Ended September 30, 2018 | (US$ in millions) | | Agribusiness | | Edible Oil Products | | Milling Products | | Sugar and Bioenergy | | Fertilizer | | Total | Sales from other arrangements | | 23,209 |
| | 1,334 |
| | 48 |
| | 1,317 |
| | — |
| | 25,908 |
| Sales from contracts with customers | | $ | 883 |
| | $ | 5,438 |
| | $ | 1,214 |
| | $ | 457 |
| | $ | 300 |
| | $ | 8,292 |
| Net sales to external customers | | 24,092 |
| | 6,772 |
| | 1,262 |
| | 1,774 |
| | 300 |
| | 34,200 |
|
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