| Summary of Outstanding Derivative Instruments |
The notional amount is used to compute interest or other payment streams to be made under the contract and is a measure of the Company’s level of activity. The Company discloses derivative notional amounts on a gross basis. | | | | | | | | | | | | | | | | (US$ in millions) | September 30, 2021 | December 31, 2020 | Unit of
Measure | | Hedging instrument type: | | | | | Fair value hedges of interest rate risk | | | | | Carrying value of hedged debt | $ | 3,740 | | $ | 2,465 | | $ Notional | | Cumulative adjustment to long-term debt from application of hedge accounting | $ | 30 | | $ | 92 | | $ Notional | | Interest rate swap | $ | 3,726 | | $ | 2,382 | | $ Notional | | | | | | | Fair value hedges of currency risk | | | | | Carrying value of hedged debt | $ | 274 | | $ | 297 | | $ Notional | | | | | | | Cross currency swap | $ | 274 | | $ | 297 | | $ Notional | | | | | | | | | | | | | | | | | | | | | Cash flow hedges of currency risk | | | | | Foreign currency forward | $ | 12 | | $ | 182 | | $ Notional | | Foreign currency option | $ | 39 | | $ | 90 | | $ Notional | | | | | | | | | | | | | | | | | | | | | Net investment hedges | | | | | Foreign currency forward | $ | 1,355 | | $ | 1,875 | | $ Notional | | | | | |
| | | | | | | | | | | | | | | | | | | | September 30, | December 31, | | | | 2021 | 2020 | Unit of
Measure | | (US$ in millions) | Long | (Short) | Long | (Short) | | Interest rate | | | | | | | Swaps | $ | 1,791 | | $ | (1,943) | | $ | 1,989 | | $ | (1,418) | | $ Notional | | FRAs | $ | — | | $ | — | | $ | 1,216 | | $ | (805) | | $ Notional | | Currency | | | | | | | Forwards | $ | 14,033 | | $ | (14,813) | | $ | 11,272 | | $ | (13,171) | | $ Notional | | Swaps | $ | 562 | | $ | (510) | | $ | 422 | | $ | (413) | | $ Notional | | Futures | $ | 14 | | $ | — | | $ | — | | $ | (55) | | $ Notional | | Options | $ | 86 | | $ | (75) | | $ | 100 | | $ | (142) | | Delta | | Agricultural commodities | | | | | | | Forwards | 35,140,835 | | (29,994,625) | | 38,332,313 | | (39,743,593) | | Metric Tons | | Swaps | 7,348 | | (5,896,696) | | — | | (1,700,972) | | Metric Tons | | Futures | — | | (709,252) | | — | | (11,422,365) | | Metric Tons | | Options | 137,405 | | (763,548) | | — | | (280,240) | | Metric Tons | | Ocean freight | | | | | | | FFA | 16,783 | | (22,386) | | 3,055 | | — | | Hire Days | | FFA options | 567 | | — | | — | | — | | Hire Days | | Natural gas | | | | | | | Swaps | 574,408 | | — | | 1,040,284 | | — | | MMBtus | | Futures | 3,000,000 | | — | | 7,210,000 | | — | | MMBtus | | Energy - other | | | | | | | | | | | | | | | | | | | | | | | | | Swaps | 754,301 | | (532,541) | | 413,542 | | — | | Metric Tons | | Electricity | | | | | | | Swaps | 670,973 | | (256,949) | | — | | — | | Mwh | | Other | | | | | | | Swaps and futures | $ | — | | $ | (323) | | $ | 30 | | $ | (30) | | $ Notional |
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| Summary of Effect of Derivative Instruments Designated as Fair Value Hedges and Undesignated Derivative Instruments on Condensed Consolidated Statements of Income |
The tables below summarize the net effect of derivative instruments and hedge accounting on the condensed consolidated statements of income for the three and nine months ended September 30, 2021 and 2020. | | | | | | | | | | | | | | | Gain (Loss) Recognized in
Income on Derivative Instruments | | | | Three Months Ended September 30, | | (US$ in millions) | | 2021 | 2020 | | Income statement classification | Type of derivative | | | | Net sales | | | | | Hedge accounting | Foreign currency | $ | 1 | | $ | (4) | | | | | | | Cost of goods sold | | | | | | | | | | | | | Economic hedges | Foreign currency | $ | (207) | | $ | (344) | | | Commodities | 242 | | (403) | | | Other (1) | (84) | | 51 | | | Total Cost of goods sold | | $ | (49) | | $ | (696) | | | | | | | | | | | | | | | | | | | Interest expense | | | | | Hedge accounting | Interest rate | $ | 8 | | $ | 6 | | | | | | | Total Interest expense | | $ | 8 | | $ | 6 | | | | | | | Foreign exchange gains (losses) | | | | | Hedge accounting | Foreign currency | $ | (3) | | $ | 13 | | | Economic hedges | Foreign currency | 68 | | 35 | | | Total Foreign exchange gains (losses) | | $ | 65 | | $ | 48 | | | | | | | | | | | | | | | | | | | Other comprehensive income (loss) | | | | | Gains and losses on derivatives used as fair value hedges of foreign currency risk included in other comprehensive income (loss) during the period | $ | 1 | | $ | (1) | | Gains and losses on derivatives used as cash flow hedges of foreign currency risk included in other comprehensive income (loss) during the period (2) | $ | (5) | | $ | (4) | | | | | Gains and losses on derivatives used as net investment hedges included in other comprehensive income (loss) during the period | $ | 52 | | $ | 47 | | | Foreign currency gains and losses on intercompany loans used as net investment hedges included in other comprehensive income (loss) during the period | $ | — | | $ | (40) | | | | | | | | | Amounts released from accumulated other comprehensive income (loss) during the period | | | | | | | | | | Cash flow hedge of foreign currency risk | $ | (1) | | $ | 3 | | | | |
(1) Other includes the results from freight, energy and other derivatives. (2) Includes $(5) million and $(20) million Bunge share of other comprehensive income (loss) related to cash flow hedges associated with the Company's equity investment in BP Bunge Bioenergia for the three months ended September 30, 2021 and 2020, respectively. | | | | | | | | | | | | | | | Gain (Loss) Recognized in
Income on Derivative Instruments | | | | Nine months ended September 30, | | (US$ in millions) | | 2021 | 2020 | | Income statement classification | Type of derivative | | | | Net sales | | | | | Hedge accounting | Foreign currency | $ | 2 | | $ | (10) | | | | | | | Cost of goods sold | | | | | | | | | | | | | Economic hedges | Foreign currency | $ | (23) | | $ | (1,459) | | | Commodities | (1,494) | | 583 | | | Other (1) | 175 | | 9 | | | Total Cost of goods sold | | $ | (1,342) | | $ | (867) | | | | | | | | | | | | | | | | | | | Interest expense | | | | | Hedge accounting | Interest rate | $ | 21 | | $ | 8 | | | | | | | Total Interest expense | | $ | 21 | | $ | 8 | | | | | | | Foreign exchange gains (losses) | | | | | Hedge accounting | Foreign currency | $ | (20) | | $ | 23 | | | Economic hedges | Foreign currency | 1 | | (202) | | | Total Foreign exchange gains (losses) | | $ | (19) | | $ | (179) | | | | | | | Other income (expense) | | | | | Economic hedges | Interest rate | $ | 1 | | $ | — | | | Total Other income/(expense) | | $ | 1 | | $ | — | | | | | | | Other comprehensive income (loss) | | | | | Gains and losses on derivatives used as fair value hedges of foreign currency risk included in other comprehensive income (loss) during the period | $ | (1) | | $ | (1) | | Gains and losses on derivatives used as cash flow hedges of foreign currency risk included in other comprehensive income (loss) during the period (2) | $ | (2) | | $ | (21) | | | | | Gains and losses on derivatives used as net investment hedges included in other comprehensive income (loss) during the period | $ | (6) | | $ | 100 | | | Foreign currency gains and losses on intercompany loans used as net investment hedges included in other comprehensive income (loss) during the period | $ | — | | $ | (37) | | | | | | | | | Amounts released from accumulated other comprehensive income (loss) during the period | | | | | | | | | | Cash flow hedge of foreign currency risk | $ | (3) | | $ | 5 | | | | |
(1) Other includes the results from freight, energy and other derivatives. (2) Includes $(42) million and $(10) million Bunge share of other comprehensive income (loss) related to cash flow hedges associated with the Company's equity investment in BP Bunge Bioenergia for the nine months ended September 30, 2021 and 2020, respectively.
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