| SEGMENT INFORMATION |
SEGMENT INFORMATION The Company's operations are organized, managed and classified into 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 Company’s remaining operations are not reportable segments, as defined by the applicable accounting standard, and are classified as Corporate and Other. See Note 1 - Basis of Presentation, Principles Of Consolidation, And Significant Accounting Policies. 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. Up until December 2019, when the Company contributed its Brazilian sugar and bioenergy operations forming the majority of its Sugar and Bioenergy segment into a joint venture with the Brazilian biofuels business of BP p.l.c, the Sugar and Bioenergy segment primarily involved sugarcane growing and milling in Brazil, as well as sugarcane-based ethanol production and corn-based ethanol investments and related activities. The activities of the Fertilizer segment include port operations in Brazil and Argentina and blending and retail operations in Argentina. Corporate & Other includes salaries and overhead for corporate functions that are not allocated to the Company’s individual reporting segments because operating performance of each reporting segment is evaluated by the Company's chief operating decision maker exclusive of these items, as well as certain other activities including Bunge Ventures, the Company's captive insurance, and securitization activities. 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 March 31, 2020 | (US$ in millions) | | Agribusiness | | Edible Oil Products | | Milling Products | | Sugar and Bioenergy | | Fertilizer | | Corporate and Other (1) | | Eliminations | | Total | Net sales to external customers | | $ | 6,329 |
| | $ | 2,324 |
| | $ | 416 |
| | $ | 50 |
| | $ | 54 |
| | $ | — |
| | $ | — |
| | $ | 9,173 |
| Inter–segment revenues | | 1,207 |
| | 43 |
| | — |
| | — |
| | — |
| | — |
| | (1,250 | ) | | — |
| Foreign exchange gains (losses) | | (13 | ) | | 7 |
| | (1 | ) | | — |
| | — |
| | 1 |
| | — |
| | (6 | ) | Noncontrolling interests (1) | | 2 |
| | 7 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 9 |
| Other income (expense) – net | | 1 |
| | (1 | ) | | (1 | ) | | (51 | ) | | — |
| | 1 |
| | — |
| | (51 | ) | Segment EBIT (2) | | (127 | ) | | 46 |
| | 18 |
| | (50 | ) | | 5 |
| | (62 | ) | | — |
| | (170 | ) | Depreciation, depletion and amortization | | (57 | ) | | (37 | ) | | (12 | ) | | — |
| | (2 | ) | | (5 | ) | | — |
| | (113 | ) | Total assets | | 12,394 |
| | 3,604 |
| | 1,277 |
| | 323 |
| | 294 |
| | 704 |
| | — |
| | 18,596 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended March 31, 2019 | (US$ in millions) | | Agribusiness | | Edible
Oil
Products | | Milling
Products | | Sugar and
Bioenergy | | Fertilizer | | Corporate and Other (1) | | Eliminations | | Total | Net sales to external customers | | $ | 6,919 |
| | $ | 2,239 |
| | $ | 426 |
| | $ | 285 |
| | $ | 69 |
| | $ | — |
| | $ | — |
| | $ | 9,938 |
| Inter–segment revenues | | 1,168 |
| | 32 |
| | — |
| | — |
| | 1 |
| | — |
| | (1,201 | ) | | — |
| Foreign exchange gains (losses) | | (9 | ) | | 2 |
| | 2 |
| | (3 | ) | | — |
| | 1 |
| | — |
| | (7 | ) | Noncontrolling interests (1) | | 2 |
| | (6 | ) | | — |
| | (1 | ) | | — |
| | — |
| | — |
| | (5 | ) | Other income (expense) – net | | 29 |
| | (1 | ) | | (2 | ) | | — |
| | — |
| | 5 |
| | — |
| | 31 |
| Segment EBIT (2) | | 141 |
| | 59 |
| | 22 |
| | (19 | ) | | 2 |
| | (54 | ) | | — |
| | 151 |
| Depreciation, depletion and amortization | | (60 | ) | | (39 | ) | | (14 | ) | | (19 | ) | | (2 | ) | | (5 | ) | | — |
| | (139 | ) | Total assets | | 12,118 |
| | 3,942 |
| | 1,542 |
| | 1,861 |
| | 315 |
| | 757 |
| | — |
| | 20,535 |
|
| | (1) | Includes noncontrolling interests share of interest and tax to reconcile to consolidated Noncontrolling interests. |
| | (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. |
A reconciliation of total Segment EBIT to Net income (loss) attributable to Bunge follows: | | | | | | | | | | | | | Three Months Ended
March 31, | | (US$ in millions) | | 2020 | | 2019 | | Total Segment EBIT from continuing operations | | $ | (170 | ) | | $ | 151 |
| | Interest income | | 7 |
| | 7 |
| | Interest expense | | (77 | ) | | (75 | ) | | Income tax (expense) benefit | | 55 |
| | (38 | ) | | Noncontrolling interests' share of interest and tax | | 1 |
| | — |
| | Net income (loss) attributable to Bunge | | $ | (184 | ) | | $ | 45 |
| |
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 March 31, 2020 | (US$ in millions) | | Agribusiness | | Edible Oil Products | | Milling Products | | Sugar and Bioenergy | | Fertilizer | | Total | Sales from other arrangements | | $ | 6,084 |
| | $ | 492 |
| | $ | 15 |
| | $ | 47 |
| | $ | — |
| | $ | 6,638 |
| Sales from contracts with customers | | 245 |
| | 1,832 |
| | 401 |
| | 3 |
| | 54 |
| | 2,535 |
| Net sales to external customers | | $ | 6,329 |
| | $ | 2,324 |
| | $ | 416 |
| | $ | 50 |
| | $ | 54 |
| | $ | 9,173 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended March 31, 2019 | (US$ in millions) | | Agribusiness | | Edible
Oil
Products | | Milling
Products | | Sugar and
Bioenergy | | Fertilizer | | Total | Sales from other arrangements | | $ | 6,717 |
| | $ | 459 |
| | $ | 15 |
| | $ | 205 |
| | $ | — |
| | $ | 7,396 |
| Sales from contracts with customers | | 202 |
| | 1,780 |
| | 411 |
| | 80 |
| | 69 |
| | 2,542 |
| Net sales to external customers | | $ | 6,919 |
| | $ | 2,239 |
| | $ | 426 |
| | $ | 285 |
| | $ | 69 |
| | $ | 9,938 |
|
|