v3.22.2
TRADE ACCOUNTS RECEIVABLE AND TRADE RECEIVABLES SECURITIZATION PROGRAM
 6 Months Ended
Jun. 30, 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:
Six Months Ended June 30, 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 provisions27 1 28 
Recoveries(19)— (19)
Write-offs charged against the allowance(10)(3)(13)
Foreign exchange translation differences(1)2 1 
Allowance as of June 30, 2022
$82 $47 $129 

(1)     Long-term portion of the allowance for credit losses included in Other non-current assets.
Six Months Ended June 30, 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 provisions17 — 17 
Recoveries(13)(1)(14)
Write-offs charged against the allowance(2)— (2)
Foreign exchange translation differences(1)1 — 
Allowance as of June 30, 2021
$94 $51 $145 
(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 by 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)June 30,
2022		December 31,
2021
Receivables sold that were derecognized from Bunge's condensed consolidated balance sheet $1,732 $1,426 
Deferred purchase price included in Other current assets (1)
$628 $496 
(1)    Bunge's risk of loss following the sale of the trade receivables is limited to the deferred purchase price ("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 June 30, 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.
Six Months Ended
June 30,
(US$ in millions)20222021
Gross receivables sold$8,585 $6,915 
Proceeds received in cash related to transfer of receivables $7,876 $6,423 
Cash collections from customers on receivables previously sold $8,372 $6,545 
Discounts related to gross receivables sold included in Selling, general and administrative expense$6 $4 

    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.