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TRADE ACCOUNTS RECEIVABLE AND TRADE RECEIVABLES SECURITIZATION PROGRAM | 3 Months Ended
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Mar. 31, 2020
Transfers and Servicing [Abstract] |
TRADE ACCOUNTS RECEIVABLE AND TRADE RECEIVABLES SECURITIZATION PROGRAM | TRADE ACCOUNTS RECEIVABLE AND TRADE RECEIVABLES SECURITIZATION PROGRAM Trade Accounts Receivable Bunge establishes an allowance for lifetime expected credit losses utilizing an aging schedule for each pool of trade accounts receivable. The risk characteristics for each individual receivable were homogenous across the pool of trade accounts receivable and the determination of pools was sufficiently granular to address any differences in risk characteristics. Any receivables that did not share similar risk characteristics were separated into different pools for further analysis. Pools are determined based on risks characteristics such as the type of customer and geography. A default rate is derived using a provision matrix with data based on Bunge's historical receivables information. The default rate is then applied to the pool to determine the allowance for expected credit losses. Given the short term nature of the Company's trade accounts receivable, the default rate is only adjusted if significant changes in the credit profile of the portfolio are identified (e.g., poor crop years, credit issues at the country level, systematic risk), resulting in historic loss rates that are not representative of forecasted losses. Specifically, in establishing appropriate default rates as of March 31, 2020, the Company took into consideration expected impacts on its customers and other debtors in view of the COVID-19 pandemic, as well as other factors, which did not result in a material impact on the financial statements. Bunge records and reports accrued interest receivable within the same line item as the related receivable. The allowance for expected credit losses is estimated on the amortized cost basis of the trade accounts receivable, including accrued interest receivable. Bunge recognizes credit loss expense when establishing an allowance for accrued interest receivable. Changes to the allowance for lifetime expected credit losses related to trade account receivables are as follows:
Rollforward of the Allowance for Credit Losses (US$ in millions) | Short-term | Long-term (1) | Total
Allowance as of January 1, 2020 | $ | 108 |  | $ | 65 |  | $ | 173 |
Current period provisions | 13 |  | — |  | 13 |
Write-offs charged against the allowance | (1 | ) | — |  | (1 | )
Foreign exchange translation differences | (3 | ) | (10 | ) | (13 | )
Allowance as of March 31, 2020 | $ | 117 |  | $ | 55 |  | $ | 172 |
(1) | Long-term portion of the allowance for credit losses included in Other non-current assets as of March 31, 2020.
Trade Receivables Securitization Program Bunge and certain of its subsidiaries participate in a trade receivables securitization program (the “Program”) with a financial institution, as administrative agent, and certain commercial paper conduit purchasers and committed purchasers that provides for funding of receivables sold into the Program. On February 19, 2019, Bunge exercised a portion of the $300 million accordion feature under the Program to increase the aggregate size of the facility by $100 million from $700 million to an aggregate of $800 million.
(US$ in millions) |  | March 31, 2020 |  | December 31, 2019
Receivables sold which were derecognized from Bunge's balance sheet |  | $ | 818 |  |  | $ | 801 |
Deferred purchase price included in other current assets |  | $ | 112 |  |  | $ | 105 |
The table below summarizes the cash flows and discounts of Bunge’s trade receivables associated with the Program. Servicing fees under the Program were not significant in any period.
|  | Three Months Ended March 31,
(US$ in millions) |  | 2020 |  | 2019
Gross receivables sold |  | $ | 2,634 |  |  | $ | 2,258 |
Proceeds received in cash related to transfer of receivables |  | $ | 2,485 |  |  | $ | 2,101 |
Cash collections from customers on receivables previously sold |  | $ | 2,341 |  |  | $ | 1,875 |
Discounts related to gross receivables sold included in SG&A |  | $ | 3 |  |  | $ | 4 |
Non-cash activity for the program in the reporting period is represented by the difference between gross receivables sold and cash collections from customers on receivables previously sold.

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- Definition The entire disclosure for a transferor's continuing involvement in financial assets that it has transferred in a securitization or asset-backed financing arrangement, the nature of any restrictions on assets reported by an entity in its statement of financial position that relate to a transferred financial asset (including the carrying amounts of such assets), how servicing assets and servicing liabilities are reported, and (for securitization or asset-backed financing arrangements accounted for as sales) when a transferor has continuing involvement with the transferred financial assets and transfers of financial assets accounted for as secured borrowings, how the transfer of financial assets affects an entity's financial position, financial performance, and cash flows. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -URI http://asc.fasb.org/topic&trid=2197590 + Details
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