v3.20.1
COMMITMENTS AND CONTINGENCIES (Tables)
 3 Months Ended
Mar. 31, 2020
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 March 31, 2020 and December 31, 2019 are the following amounts related to these matters:
(US$ in millions)
 
March 31,
2020
 
December 31,
2019
Non-income tax claims
 
$
20

 
$
23

Labor claims
 
39

 
50

Civil and other claims
 
76

 
88

Total
 
$
135

 
$
161
Summary of tax examinations against Brazilian subsidiaries
As of March 31, 2020, the Brazilian federal and state authorities have concluded examinations of the ICMS and PIS COFINS tax returns and have issued outstanding claims (including applicable interest and penalties). The Company continues to evaluate the merits of each of these claims and will recognize them when loss is considered probable. The outstanding claims are comprised of the following:
(US$ in millions)
Years Examined
March 31, 2020
December 31, 2019
ICMS
1990 to Present
$
174

$
221

PIS/COFINS
2004 through 2016
$
208

$
268
Maximum potential future payments related to guarantees Bunge has issued or was a party to the following guarantees at March 31, 2020:
(US$ in millions)
 
Maximum
Potential
Future
Payments
Unconsolidated affiliates guarantee (1) (2)
 
$
276

Residual value guarantee (3)
 
263

Total
 
$
539

(1)
Bunge has issued financial and performance 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 that have maturity dates 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 March 31, 2020, Bunge's potential liability was $176 million, and it has recorded a $14 million obligation related to these guarantees, inclusive of expected lifetime credit losses, which are determined based on historical financial information and are not expected to be material.
(2)
Bunge has 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 that 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 March 31, 2020, Bunge's maximum potential future payments under these guarantees was $43 million, and no obligation has been recorded related to these guarantees.
(3)
Bunge has issued guarantees to certain financial institutions that are party to certain operating lease arrangements for railcars, barges, and buildings. These guarantees provide for a minimum residual value to be received by the lessor at
the conclusion of the lease term. These leases expire at various dates from 2020 through 2026. At March 31, 2020, no obligation has been recorded related to these guarantees. Any obligation recorded would be recognized in Current operating lease obligations or Non-current operating lease obligations (see Note 4 - Leases).