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TRADE ACCOUNTS RECEIVABLE AND TRADE RECEIVABLES SECURITIZATION PROGRAM
 3 Months Ended
Mar. 31, 2021
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 risk 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, 2021, 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 accounts receivable are as follows:
Three Months Ended March 31, 2021
Rollforward of the Allowance for Credit Losses (US$ in millions)Short-term
Long-term (1)
Total
Allowance as of January 1, 2021$93 $51 $144 
Current period provisions7 — 7 
Recoveries(9)— (9)
Write-offs charged against the allowance(1)— (1)
Foreign exchange translation differences(2)(3)(5)
Allowance as of March 31, 2021$88 $48 $136 
(1)     Long-term portion of the allowance for credit losses included in Other non-current assets.
Three Months Ended March 31, 2020
Rollforward of the Allowance for Credit Losses (US$ in millions)Short-term
Long-term (1)
Total
Allowance as of January 1, 2020$108 $65 $173 
Current period provisions13 — 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.

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.
(US$ in millions)March 31,
2021		December 31,
2020
Receivables sold that were derecognized from Bunge's balance sheet$1,074 $969 
Deferred purchase price included in other current assets$235 $177 

    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)20212020
Gross receivables sold$3,345 $2,634 
Proceeds received in cash related to transfer of receivables $3,067 $2,485 
Cash collections from customers on receivables previously sold $3,324 $2,341 
Discounts related to gross receivables sold included in Selling, general and administrative expense$2 $3 

    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.