v3.20.1

FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

Hierarchy levels that may be used to measure fair value

The fair value standard describes three levels within its hierarchy that may be used to measure fair value.

Level	Description	Financial Instrument (Assets / Liabilities)
Level 1	Quoted prices (unadjusted) in active markets for identical assets or liabilities.	Exchange traded derivative contracts. Marketable securities in active markets.
Level 2	Observable inputs, including adjusted Level 1 quotes, quoted prices for similar assets or liabilities, quoted prices in markets that are less active than traded exchanges and other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.	Exchange traded derivative contracts (less liquid market). Readily marketable inventories. Over-the-counter (‘‘OTC’’) commodity purchase and sale contracts. OTC derivatives whose value is determined using pricing models with inputs that are generally based on exchange traded prices, adjusted for location specific inputs that are primarily observable in the market or can be derived principally from or corroborated by observable market data. Marketable securities in less active markets.
Level 3	Unobservable inputs that are supported by little or no market activity and that are a significant component of the fair value of the assets or liabilities.	Assets and liabilities whose value is determined using proprietary pricing models, discounted cash flow methodologies or similar techniques.   Assets and liabilities for which the determination of fair value requires significant management judgment or estimation.

Schedule of assets and liabilities accounted for at fair value on a recurring basis

The following table sets forth, by level, the Company’s assets and liabilities that were accounted for at fair value on a recurring basis.

	Fair Value Measurements at Reporting Date
	March 31, 2020																December 31, 2019
(US$ in millions)	Level 1				Level 2				Level 3				Total				Level 1				Level 2				Level 3				Total
Assets:
Readily marketable inventories (Note 7)	$	—			$	3,660			$	619			$	4,279			$	—			$	3,703			$	231			$	3,934
Trade accounts receivable (1)	—				19				—				19				—				—				—				—
Unrealized gain on derivative contracts (2):					1
Interest rate	—				103				—				103				—				45				—				45
Foreign exchange	—				494				—				494				—				331				—				331
Commodities	36				1,019				18				1,073				34				481				9				524
Freight	21				—				1				22				10				—				—				10
Energy	47				—				—				47				56				—				—				56
Other (3)	51				244				—				295				47				370				—				417
Total assets	$	155			$	5,539			$	638			$	6,332			$	147			$	4,930			$	240			$	5,317
Liabilities:
Trade accounts payable (4)	$	—			$	384			$	261			$	645			$	—			$	347			$	31			$	378
Unrealized loss on derivative contracts (5):
Interest rate	—				17				—				17				—				4				—				4
Foreign exchange	—				1,162				—				1,162				—				257				—				257
Commodities	57				590				33				680				49				388				31				468
Freight	21				—				2				23				10				—				—				10
Energy	89				1				—				90				26				—				2				28
Equity	—				—				—				—				—				—				—				—
Total liabilities	$	167			$	2,154			$	296			$	2,617			$	85			$	996			$	64			$	1,145

(1) These receivables are financial instruments for which Bunge has elected the fair value option.

(2) Unrealized gains on derivative contracts are generally included in other current assets. There were $100 million and $39 million included in other non-current assets at March 31, 2020 and December 31, 2019, respectively.

(3) Other includes the fair values of marketable securities and investments in other current assets and other non-current assets.

(4) These payables are hybrid financial instruments for which the Company has elected the fair value option.

(5)

Unrealized losses on derivative contracts are generally included in other current liabilities. There are $12 million and $1 million included in other non-current liabilities at March 31, 2020 and December 31, 2019, respectively.

Reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3)

The tables below present reconciliations for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three months ended March 31, 2020 and 2019.  These instruments were valued using pricing models that management believes reflect the assumptions that would be used by a marketplace participant.

		Three Months Ended March 31, 2020
(US$ in millions)		Readily Marketable Inventories				Derivatives, Net				Trade Accounts Payable				Total
Balance, January 1, 2020		$	231			$	(24	)		$	(31	)		$	176
Total gains and losses (realized/unrealized) included in cost of goods sold (1)		164				14				4				182
Purchases		678				1				(236		)		443
Sales		(627		)		—				—				(627		)
Issuances		—				(2		)		—				(2		)
Settlements		—				(18		)		61				43
Transfers into Level 3		271				3				(59		)		215
Transfers out of Level 3		(98		)		10				—				(88		)
Balance, March 31, 2020		$	619			$	(16	)		$	(261	)		$	342

(1) Readily marketable inventories, derivatives, net and trade accounts payable, include gains/(losses) of $73 million, $13 million and $5 million, respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at March 31, 2020.

		Three Months Ended March 31, 2019
(US$ in millions)		Readily Marketable Inventories				Derivatives, Net				Trade Accounts Payable				Total
Balance, January 1, 2019		$	246			$	(6	)		$	(47	)		$	193
Total gains and losses (realized/unrealized) included in cost of goods sold (1)		37				2				5				44
Purchases		699				—				(361		)		338
Sales		(570		)		—				—				(570		)
Settlements		—				1				(21		)		(20		)
Transfers into Level 3		276				1				27				304
Transfers out of Level 3		(55		)		—				—				(55		)
Balance, March 31, 2019		$	633			$	(2	)		$	(397	)		$	234

(1)

Readily marketable inventories, derivatives, net and trade accounts payable, includes gains/(losses) of $37 million, $6 million and $5 million, respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at March 31, 2019.

Reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3)

The tables below present reconciliations for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three months ended March 31, 2020 and 2019.  These instruments were valued using pricing models that management believes reflect the assumptions that would be used by a marketplace participant.

		Three Months Ended March 31, 2020
(US$ in millions)		Readily Marketable Inventories				Derivatives, Net				Trade Accounts Payable				Total
Balance, January 1, 2020		$	231			$	(24	)		$	(31	)		$	176
Total gains and losses (realized/unrealized) included in cost of goods sold (1)		164				14				4				182
Purchases		678				1				(236		)		443
Sales		(627		)		—				—				(627		)
Issuances		—				(2		)		—				(2		)
Settlements		—				(18		)		61				43
Transfers into Level 3		271				3				(59		)		215
Transfers out of Level 3		(98		)		10				—				(88		)
Balance, March 31, 2020		$	619			$	(16	)		$	(261	)		$	342

(1) Readily marketable inventories, derivatives, net and trade accounts payable, include gains/(losses) of $73 million, $13 million and $5 million, respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at March 31, 2020.

		Three Months Ended March 31, 2019
(US$ in millions)		Readily Marketable Inventories				Derivatives, Net				Trade Accounts Payable				Total
Balance, January 1, 2019		$	246			$	(6	)		$	(47	)		$	193
Total gains and losses (realized/unrealized) included in cost of goods sold (1)		37				2				5				44
Purchases		699				—				(361		)		338
Sales		(570		)		—				—				(570		)
Settlements		—				1				(21		)		(20		)
Transfers into Level 3		276				1				27				304
Transfers out of Level 3		(55		)		—				—				(55		)
Balance, March 31, 2019		$	633			$	(2	)		$	(397	)		$	234

(1)

Readily marketable inventories, derivatives, net and trade accounts payable, includes gains/(losses) of $37 million, $6 million and $5 million, respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at March 31, 2019.

X

- Definition

Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis.

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Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

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Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

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