v3.22.1
TRADE ACCOUNTS RECEIVABLE AND TRADE RECEIVABLES SECURITIZATION PROGRAM
 3 Months Ended
Mar. 31, 2022
Transfers and Servicing [Abstract]  
TRADE ACCOUNTS RECEIVABLE AND TRADE RECEIVABLES SECURITIZATION PROGRAM TRADE ACCOUNTS RECEIVABLE AND TRADE RECEIVABLES SECURITIZATION PROGRAM
Trade Accounts Receivable
Changes to the allowance for lifetime expected credit losses related to trade accounts receivable were as follows:
Three Months Ended March 31, 2022
Rollforward of the Allowance for Credit Losses (US$ in millions)Short-term
Long-term (1)
Total
Allowance as of January 1, 2022$85 $47 $132 
Current period provisions15 — 15 
Recoveries(9)— (9)
Write-offs charged against the allowance(10)(2)(12)
Foreign exchange translation differences3 4 7 
Allowance as of March 31, 2022$84 $49 $133 

(1)     Long-term portion of the allowance for credit losses included in Other non-current assets.

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.
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. On March 31, 2022, Bunge and certain of its subsidiaries renewed and amended the Program. As a result, the aggregate size of the facility that provides funding against receivables sold into the Program increased by $175 million from $925 million to $1.1 billion. Bunge may also, from time to time with the consent of the administrative agent, request one or more of the existing committed purchasers or new committed purchasers to increase the total commitments in an amount not to exceed $250 million pursuant to an accordion provision. The Program will terminate on May 17, 2031, however each committed purchaser's commitment to purchase trade receivables under the Program will terminate on May 17, 2025, unless extended for an additional period in accordance with the terms of the receivables transfer agreement. The Program was further amended to add sustainability provisions, pursuant to which the applicable margin will be increased or decreased based on Bunge's performance in comparison with certain sustainability targets, including, but not limited to, recently established science-based targets that define Bunge's climate goals within its operations and a commitment to a deforestation-free supply chain in 2025.
(US$ in millions)March 31,
2022		December 31,
2021
Receivables sold that were derecognized from Bunge's condensed consolidated balance sheet (1)
$1,625 $1,426 
Deferred purchase price included in Other current assets(1) (2)
$521 $496 
(1)    As of March 31, 2022, receivables sold that were derecognized from Bunge's condensed consolidated balance sheet, less the deferred purchase price ("DPP"), net of provisions for delinquencies, equaled the maximum facility size under the Program of $1.1 billion. Of this amount, $925 million has already been received by the Company at the March 31, 2022 balance sheet date, with the remaining $175 million, representing the increase in aggregate size of the facility on amendment of the Program, effective March 31, 2022, to be received on the Program's next monthly settlement date of April 19, 2022.
(2)    Bunge's risk of loss following the sale of the trade receivables is limited to the DPP, included in Other current assets in the condensed consolidated balance sheets (see Note 7- Other Current Assets). The DPP will be repaid in cash as receivables are collected, generally within 30 days of collection. Provisions for delinquencies and credit losses on trade receivables sold under the Program were $4 million and $5 million at March 31, 2022 and December 31, 2021, respectively.

    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)20222021
Gross receivables sold$4,080 $3,345 
Proceeds received in cash related to transfer of receivables $3,511 $3,067 
Cash collections from customers on receivables previously sold $4,007 $3,324 
Discounts related to gross receivables sold included in Selling, general and administrative expense$2 $2 

    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.