BG 10-K Fiscal year ended Dec. 31, 2019

Portions of the proxy statement for the 2020 Annual General Meeting of Shareholders to be held on May 21, 2020 are incorporated by reference into Part III.

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•	weather conditions and the impact of crop and animal disease on our business;

•	global and regional economic, agricultural, financial and commodities market, political, social and health conditions;

•	changes in governmental policies and laws affecting our business, including agricultural and trade policies and environmental, tax and biofuels regulation;

•	the outcome of pending regulatory and legal proceedings;

•	our ability to complete, integrate and benefit from acquisitions, divestitures, joint ventures and strategic alliances;

•	industry conditions, including fluctuations in supply, demand and prices for agricultural commodities and other raw materials and products that we sell and use in our business, fluctuations in energy and freight costs and competitive developments in our industries;

•	our capital allocation plans, funding needs and financing sources;

•	the effectiveness of our risk management strategies;

•	the outcome of our strategic review process;

•	our ability to achieve the efficiencies, savings and other benefits anticipated from our portfolio rationalization and business realignment initiatives;

•	operational risks, including industrial accidents, natural disasters and cybersecurity incidents; and

•	changes in foreign exchange policy or rates;

•	other factors affecting our business generally.

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•	global oilseed processor and producer of vegetable oils and protein meals, based on processing capacity;

•	global grain processor, based on volume;

•	seller of packaged vegetable oils worldwide, based on sales;

•	producer and seller of wheat flours, bakery mixes and dry milled corn products in North and South America, based on volume; and

•	producer of sugar and ethanol in Brazil, through our interest in the recently-formed BP Bunge Bioenergia joint

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•	Sugar- The BP Bunge Bioenergia joint venture produces two types of sugar: very high polarity ("VHP") raw sugar and crystal sugar. VHP sugar is similar to the raw sugar traded on major commodities exchanges, including the standard NY11 contract, and is sold almost exclusively for export. Crystal sugar is a non-refined white sugar and is principally sold domestically in Brazil.

•	Ethanol -BP Bunge Bioenergia produces and sells two types of ethanol: hydrous and anhydrous. Hydrous ethanol is consumed directly as a transport fuel, while anhydrous ethanol is blended with gasoline in transport fuels.

•	Electricity -BP Bunge Bioenergia generates electricity from burning sugarcane bagasse in our mills.

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•	adverse trade policies or trade barriers on agricultural commodities and commodity products;

•	inflation and hyperinflation and adverse economic effects resulting from governmental attempts to control inflation, such as the imposition of wage and price controls and higher interest rates;

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•	changes in laws and regulations or their interpretation or enforcement in the countries where we operate, such as tax laws, including the risk of future adverse tax regulations relating to our status as a Bermuda company;

•	difficulties in enforcing agreements or judgments and collecting receivables in foreign jurisdictions;

•	exchange controls or other currency restrictions and limitations on the movement of funds, such as on the remittance of dividends by subsidiaries;

•	inadequate infrastructure and logistics challenges;

•	sovereign risk and the risk of government intervention, including through expropriation, or regulation of the economy or natural resources, including restrictions on foreign ownership of land or other assets;

•	the requirement to comply with a wide variety of laws and regulations that apply to international operations, including, without limitation, economic sanctions regulations, labor laws, import and export regulations, anti-corruption and anti-bribery laws, as well as other laws or regulations discussed in this "Item 1A. Risk Factors " section;

•	challenges in maintaining an effective internal control environment with operations in multiple international locations, including language differences, varying levels of U.S. Generally Accepted Accounting Principles ("U.S. GAAP") expertise in international locations and multiple financial information systems; and

•	labor disruptions, civil unrest, significant political instability, wars or other armed conflict or acts of terrorism.

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•	directors to be removed without cause at any special general meeting only upon the affirmative vote of at least 66% of all votes attaching to all shares entitling the holder to attend and vote on the resolution then in issue;

•	restrictions on the time period in which directors may be nominated;

•	our Board of Directors to determine the powers, preferences and rights of our preference shares and to issue the preference shares without shareholder approval; and

•	an affirmative vote of at least 66% of all votes attaching to all shares then in issue entitling the holder to attend and vote on the resolution for some business combination transactions, which have not been approved by our Board of Directors.

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(1)

In December 2019, we contributed our Brazilian sugar and bioenergy operations forming the majority of our Sugar and Bioenergy segment into BP Bunge Bioenergia, a joint venture with the Brazilian biofuels business of BP p.l.c. As a result of this transaction, we no longer consolidate our sugar and bioenergy operations in Brazil in our consolidated financial statements. We account for our interest in the joint venture under the equity method of accounting.

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(a)	Market Information

(b)	Approximate Number of Holders of Common Stock

(c)	Dividends

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(d)	Securities Authorized for Issuance Under Equity Compensation Plans

(1)	Includes our 2016 Equity Incentive Plan, 2009 Equity Incentive Plan, Equity Incentive Plan, 2007 Non-Employee Directors' Equity Incentive Plan and 2017 Non-Employee Directors' Equity Incentive Plan.

(2)

Includes non-statutory stock options outstanding as to 5,727,358 common shares, performance-based restricted stock unit awards as to 794,395 common shares, and vested and deferred restricted stock units outstanding (including dividend equivalents payable in common shares) as to 1,956 common shares, as well as 982,244 unvested and restricted stock units outstanding (including dividend equivalents payable in common shares) under our various equity incentive plans noted in (1) above. Dividend equivalent payments that are credited to each participant’s account are paid in our common shares at the time the award is settled.

(3)	Calculated based on non-statutory stock options outstanding under our 2016 Equity Incentive Plan and 2009 Equity Incentive Plan. This number excludes outstanding time-based restricted stock unit, performance-based restricted stock unit awards and deferred restricted stock unit awards under our various equity incentive plans noted in (1) above.

(4)

Includes dividend equivalents payable in common shares. Shares available under our 2016 Equity Incentive Plan may be used for any type of award authorized under the plan. Awards under the plan may be in the form of statutory or non-statutory stock options, restricted stock units (including performance-based) or other awards that are based on the value of our common shares. Our 2016 Equity Incentive Plan provides that the maximum number of common shares issuable under the plan is 5,800,000 , subject to adjustment in accordance with the terms of the plan. This number also includes shares available for future issuance under our 2017 Non-Employee Directors' Equity Incentive Plan. Our 2017 Non-Employee Directors' Equity Incentive Plan provides that the maximum number of common shares issuable under the plan may not exceed 120,000 , subject to adjustment in accordance with the terms of the plan. No additional awards may be granted under the Equity Incentive Plan and the Non-Employee Directors' Equity Incentive Plan.

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(f)	Purchases of Equity Securities by Registrant and Affiliated Purchasers

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(1)

Included in inventories were readily marketable inventories of $3,934 million , $4,532 million , $4,056 million , $3,855 million and $3,666 million at December 31, 2019 , 2018 , 2017 , 2016 and 2015 , respectively. Readily marketable inventories are agricultural commodity inventories, such as soybeans, soybean meal, soybean oil, corn and wheat that are readily convertible to cash because of their commodity characteristics, widely available markets and international pricing mechanisms.

(2)	Working capital is calculated as current assets less current liabilities.

(3)

Bunge has 6,899,683 4.875% cumulative convertible perpetual preference shares outstanding. Each cumulative convertible preference share has an initial liquidation preference of $100 per share plus accumulated and unpaid dividends up to a maximum of an additional $25 per share. As a result of adjustments made to the initial conversion price because cash dividends paid on Bunge Limited's common shares exceeded certain specified thresholds, each cumulative convertible preference share is convertible, at the holder's option, at any time, into approximately 1.2224 Bunge Limited common shares ( 8,434,172 Bunge Limited common shares), subject to certain additional anti-dilution adjustments.

(4)

In December 2019, we contributed our Brazilian sugar and bioenergy operations, which formed the majority of our Sugar and Bioenergy segment, into BP Bunge Bioenergia, a joint venture with the Brazilian biofuels business of BP p.l.c. As a result of this transaction, we no longer consolidate our sugar and bioenergy operations in Brazil in our consolidated financial statements. We account for our interest in the joint venture under the equity method of accounting.

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(1)

In December 2019, we contributed our Brazilian sugar and bioenergy operations forming the majority of our Sugar and Bioenergy segment into the BP Bunge Bioenergia joint venture. As a result of this transaction, as of December 2019, we no longer consolidate our sugar and bioenergy operations in Brazil in our consolidated financial statements. We account for our interest in the joint venture under the equity method of accounting.

(2)	We refer to our earnings before interest and taxes in each of our segments as "Segment EBIT". Total Segment EBIT is an operating performance measure used by Bunge's management to evaluate its segments' operating activities. Total

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(1)

Borrowings under the revolving credit facilities that have maturities greater than one year from the date of the consolidated balance sheets are classified as long-term debt, consistent with the long-term maturity of the underlying facilities. However, individual borrowings under the revolving credit facilities are generally short-term in nature, bear interest at variable rates and can be repaid or renewed as each such individual borrowing matures.

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(1)	Includes $348 million of local currency borrowings in certain Central and Eastern European, South American, and Asia-Pacific countries at a weighted average interest rate of 27.16% as of December 31, 2019 .

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(1)	Includes secured debt of $1 million and $9 million at December 31, 2019 and December 31, 2018 , respectively.

(2)	Includes $348 million and $136 million of local currency borrowings in certain Central and Eastern European, South American, and Asia-Pacific countries at a weighted average interest rate of 27.16% and 23.61% as of December 31, 2019 and December 31, 2018 , respectively.

(3)	Includes secured debt of $15 million and $17 million at December 31, 2019 and December 31, 2018 , respectively.

(4)	On December 16, 2019, Bunge extended the existing three-year revolving credit facility totaling $1,750 million, scheduled to mature on December 12, 2020, for two additional years, to December 12, 2022.

(5)	On July 1, 2019, Bunge refinanced its unsecured Japanese yen 28.5 billion and $85 million Term Loan Agreement, dated as of December 12, 2014, which extends the maturity date to July 1, 2024.

(1)	Short-term rating applies only to Bunge Asset Funding Corp., the issuer under our commercial paper program.

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(1)	Commodities delivered by suppliers that are yet to be priced are reflected at prevailing market prices at December 31, 2019 and 2018 .

(1)

We have issued guarantees to certain financial institutions related to debt of certain of our unconsolidated affiliates. The terms of the guarantees are equal to the terms of the related financings which have maturity dates through 2034 . There are no recourse provisions or collateral that would enable us to recover any amounts paid under these guarantees. In addition, one of our subsidiaries 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

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(2)

We have issued guarantees to certain third parties related to the performance of our unconsolidated affiliates. The terms of the guarantees are equal to the completion date of a port terminal which is expected to be completed in 2020 . There are no recourse provisions or collateral that would enable us to recover any amounts paid under these guarantees. At December 31, 2019 , our maximum potential future payments under these performance guarantees was $46 million , and no obligation has been recorded related to these guarantees.

(3)

We have issued guarantees to certain financial institutions which are party to certain operating lease arrangements for railcars and barges. These guarantees provide for a minimum residual value to be received by the lessor at conclusion of the lease term. These leases expire at various dates from 2020 through 2026 . At December 31, 2019 , 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 27, Leases , to our consolidated financial statements).

(1)	Excludes components of long-term debt attributable to fair value hedge accounting of $37 million and deferred financing fees and unamortized premiums of $18 million .

(2)	Represents future minimum payments under non-cancelable leases with initial terms of one year or more. Minimum lease payments have not been reduced by minimum sublease income receipts of $34 million due in future periods under non-cancelable subleases.

(3)

Represents purchase commitments for time on ocean freight vessels and railroad freight lines for the purpose of transporting agricultural commodities. The ocean freight service agreements are short term contracts with a duration of less than a year. Ocean freight service agreements with terms in excess of one year are included in non-cancelable lease obligations. The railroad freight service agreements require a minimum monthly payment regardless of the actual level of freight services used. The costs of our freight supply agreements are typically passed through to our customers

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(4)	Represents other purchase commitments and obligations, such as take-or-pay contracts, throughput contracts, and debt commitment fees.

(5)

Does not include estimated payments of liabilities associated with uncertain income tax positions. As of December 31, 2019 , Bunge had tax liabilities of $53 million , including interest and penalties. At this time, we are unable to make a reasonably reliable estimate of the timing of payments in individual years in connection with these tax liabilities; therefore, such amounts are not included in the above contractual obligations table. See Note 14 - Income Taxes to our consolidated financial statements.

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a.	(1) (2) Financial Statements and Financial Statement Schedules

a.	(3) Exhibits

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Schedule II—Valuation and Qualifying Accounts

(US$ in millions)

Description		Balance at beginning of period				Charged to costs and expenses			Charged to other accounts (b)			Deductions from reserves				Balance at end of period
FOR THE YEAR ENDED DECEMBER 31, 2017
Allowances for doubtful accounts (a)		$	212			42			( 1	)		( 70	)	(c)		$	183
Allowances for secured advances to suppliers		$	50			20			—			( 5	)			$	65
Allowances for recoverable taxes		$	35			12			( 1	)		( 7	)			$	39
Income tax valuation allowances		$	839			43			18			—				$	900
FOR THE YEAR ENDED DECEMBER 31, 2018
Allowances for doubtful accounts (a)		$	183			56			( 18	)		( 36	)	(c)		$	185
Allowances for secured advances to suppliers		$	65			21			( 10	)		( 6	)			$	70
Allowances for recoverable taxes		$	39			6			( 5	)		( 3	)			$	37
Income tax valuation allowances		$	900			114			( 98	)		( 150	)			$	766
FOR THE YEAR ENDED DECEMBER 31, 2019
Allowances for doubtful accounts (a)		$	185			38			( 2	)		( 49	)	(c)		$	172
Allowances for secured advances to suppliers		$	70			7			( 3	)		( 8	)			$	66
Allowances for recoverable taxes		$	37			52			—			( 11	)			$	78
Income tax valuation allowances		$	766			66			( 28	)		( 400	)			$	404

(a)	Includes allowance for doubtful accounts for current and non-current trade accounts receivables.

(b)	Consists primarily of foreign currency translation adjustments.

(c)	Includes write-offs of uncollectible accounts and recoveries.

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•	We evaluated the appropriateness and consistency of the Company’s methods and assumptions used to estimate the fair value of RMI and physically settled forward purchase and sale contracts.

•	We evaluated the competence, capabilities, and objectivity of in-house experts used to estimate the fair value of RMI and physically settled forward purchase and sale contracts.

•	We tested the design and effectiveness of controls over management’s review of the underlying assumptions used in the Company’s process of estimating the fair value of RMI and physically settled forward purchase and sale contracts, including those over Level 3 inputs.

•	We evaluated management’s ability to accurately estimate fair value by comparing management’s historical estimates to subsequent transactions, taking into account changes in market conditions subsequent to year-end.

•	We made a selection of RMI and physically settled forward purchase and sale contracts to test Level 3 inputs and performed the following:

◦	We evaluated the reasonableness of the Level 3 inputs by reference to third-party data, information produced by the entity, and inquires of management.

◦	We searched for contradictory evidence to Level 3 inputs based on our knowledge of the commodities market and inquiries of management.

•	We utilized audit professionals with industry and quantitative analytics experience when performing our auditing procedures.

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Description of Business —Bunge Limited, a Bermuda company, together with its consolidated subsidiaries and variable interest entities ("VIEs") in which it is considered the primary beneficiary, through which its businesses are conducted (collectively "Bunge" or "the Company"), is a leading global agribusiness and food company. Bunge's common shares trade on the New York Stock Exchange under the ticker symbol "BG." Bunge operates in five reportable segments: Agribusiness, Edible Oil Products, Milling Products, Sugar and Bioenergy, and Fertilizer.

Agribusiness —Bunge's Agribusiness segment is an integrated, global business involved in the purchase, storage, transport, processing and sale of agricultural commodities and commodity products. Bunge's agribusiness operations and assets are located in North America, South America, Europe and Asia-Pacific with merchandising and distribution offices throughout the world.

Bunge's Agribusiness segment also participates in related financial activities, such as offering trade structured finance, which leverages its international trade flows, providing risk management services to customers by assisting them with managing price exposure to agricultural commodities, trading of foreign exchange and other financial instruments and investing in start-up and high growth companies through its corporate venture capital unit.

Edible Oil products —Bunge's Edible Oil Products segment produces and sells edible oil products, such as packaged and bulk oils and fats, shortenings, margarine, mayonnaise and other products derived from the vegetable oil refining process, and refines and fractionates palm oil, palm kernel oil, coconut oil, and shea butter. Bunge's edible oil products operations are located in North America, South America, Europe, Asia-Pacific, and Africa.

Milling products —Bunge's Milling Products segment includes wheat, corn and rice milling businesses, which purchase wheat, corn and rice directly from farmers and dealers and process them into milled products for food processors, bakeries, brewers, snack food producers and other customers. Bunge's wheat milling activities are primarily in Mexico and Brazil. Corn and rice milling activities are in the United States and Mexico.

Sugar and Bioenergy —In December 2019, Bunge contributed its Brazilian sugar and bioenergy operations, forming the majority of its Sugar and Bioenergy segment, through which it produced and sold sugar and ethanol derived from sugarcane, as well as energy derived from the sugar and ethanol production process, into a joint venture with the Brazilian biofuels business of BP p.l.c. ("BP"). The joint venture, BP Bunge Bioenergia, in which Bunge has a 50 % interest, operates on a stand-alone basis, with a total of 11 mills located across the Southeast, North and Midwest regions of Brazil. As a result of this transaction, Bunge no longer consolidates its Brazilian sugar and bioenergy operations in its consolidated financial statements, and accounts for its interest in the joint venture under the equity method of accounting.

Fertilizer —Bunge's Fertilizer segment operates in Argentina, Uruguay and Paraguay, where it produces, blends and distributes a range of liquid and dry NPK fertilizers, including nitrogen-based liquid and solid phosphate fertilizers. Bunge's operations in Argentina are closely linked to its grain origination activities as it supplies fertilizer to producers who supply the Company with grain. This segment also includes port operations in Brazil.

Basis of Presentation —The consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The accounting policies used to prepare these financial statements are the same as those used to prepare the consolidated financial statements in prior years, except as described in these notes or for the adoption of new standards as outlined below.

Discontinued Operations —In determining whether a disposal group should be presented as discontinued operations, Bunge makes a determination of whether such a group being disposed of comprises a component of the entity, or a group of components of the entity, that represents a strategic shift that has, or will have, a major effect on the Company's operations and financial results. If these determinations are made affirmatively, the results of operations of the group being disposed of (as well as any gain or loss on the disposal transaction) are aggregated for separate presentation apart from the continuing operations of the Company for all periods presented in the consolidated financial statements.

Principles of Consolidation —The accompanying consolidated financial statements include the accounts of Bunge, its subsidiaries and VIEs in which Bunge is considered to be the primary beneficiary, and as a result, include the assets, liabilities, revenues and expenses of all entities over which Bunge exercises control. Equity investments in which Bunge has the ability to exercise significant influence but does not control are accounted for by the equity method of accounting. Investments in which Bunge does not exercise significant influence are accounted for at cost, or fair value if that is readily determinable. Intercompany accounts and transactions are eliminated. An enterprise is determined to be the primary beneficiary if it has a

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controlling financial interest, defined as (a) the power to direct the activities of a VIE that most significantly impact the VIE's business and (b) the obligation to absorb losses of or the right to receive benefits from the VIE that could potentially be significant to the VIE's operations. Performance of that analysis requires the exercise of judgment. The VIE and consolidation assessments are revisited upon the occurrence of relevant reconsideration events.

Noncontrolling interests in subsidiaries related to Bunge's ownership interests of less than 100 % are reported as Noncontrolling interests or Redeemable noncontrolling interests in the consolidated balance sheets. The noncontrolling ownership interests in Bunge's earnings, net of tax, is reported as Net (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests in the consolidated statements of income.

Reclassifications —Certain prior year amounts have been reclassified to conform to current year presentation.

Use of Estimates —The preparation of consolidated financial statements in conformity with U.S. GAAP requires Bunge to make estimates and assumptions that affect the amounts reported in the financial statements and notes. Actual results could differ from those estimates.

Translation of Foreign Currency Financial Statements —Bunge's reporting currency is the U.S. dollar. The functional currency of the majority of Bunge's foreign subsidiaries is their local currency and, as such, amounts included in the consolidated statements of income, comprehensive income (loss), cash flows and changes in equity are translated using average exchange rates during each period. Assets and liabilities are translated at period-end exchange rates and resulting foreign currency translation adjustments are recorded in the consolidated balance sheets as a component of accumulated other comprehensive income (loss). However, in accordance with U.S. GAAP, if a foreign entity's economy is determined to be highly inflationary, then such foreign entity's financial statements shall be remeasured as if the functional currency were the reporting currency.

Bunge has significant operations in Argentina and, up until June 30, 2018, had utilized the official exchange rate of the Argentine peso published by the Argentine government for its commercial transactions and remeasurement purposes of financial statements. Argentina has experienced negative economic trends, as evidenced by multiple periods of increasing inflation rates, devaluation of the peso , and increasing borrowing rates, requiring the Argentine government to take mitigating actions. During the second quarter of 2018, it was determined that Argentina's economy should be considered highly inflationary, and as such, beginning on July 1, 2018, Bunge's Argentine subsidiaries changed their functional currency to the U.S. Dollar. This change in functional currency did not have a material impact on Bunge's consolidated financial statements.

Foreign Currency Transactions —Monetary assets and liabilities denominated in currencies other than the functional currency are remeasured into their respective functional currencies at exchange rates in effect at the balance sheet date. The resulting exchange gain or loss is included in Bunge's consolidated statements of income as foreign exchange gain (loss) unless the remeasurement gain or loss relates to an intercompany transaction that is of a long-term investment nature and for which settlement is not planned or anticipated in the foreseeable future. Gains or losses arising from translation of such transactions are reported as a component of Accumulated other comprehensive income (loss) in Bunge's consolidated balance sheets.

Cash, Cash Equivalents, and Restricted Cash —Cash and cash equivalents include time deposits and readily marketable securities with original maturity dates of three months or less at the time of acquisition. Restricted cash is included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheet that sums to the total of the same such amounts shown in the consolidated statements of cash flows.

	December 31,
(US$ in millions)	2019			2018			2017
Cash and cash equivalents	$	320		$	389		$	601
Restricted cash included in other current assets	2			4			4
Total	$	322		$	393		$	605

Trade Accounts Receivable and Secured Advances to Suppliers —Trade accounts receivable and secured advances to suppliers are stated at their historical carrying amounts net of write-offs and allowances for uncollectible accounts. Bunge establishes an allowance for uncollectible trade accounts receivable and secured advances to farmers based on historical experience, farming economics and other market conditions as well as specific customer collection issues. Uncollectible

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accounts are written off when a settlement is reached for an amount below the outstanding historical balance or when Bunge has determined that collection is unlikely.

Secured advances to suppliers bear interest at contractual rates which reflect current market interest rates at the time of the transaction. There are no deferred fees or costs associated with these receivables. As a result, there are no imputed interest amounts to be amortized under the interest method. Interest income is calculated based on the terms of the individual agreements and is recognized on an accrual basis.

Bunge follows accounting guidance on the disclosure of the credit quality of financing receivables and the allowance for credit losses, which requires information to be disclosed at disaggregated levels, defined as portfolio segments and classes.

Under this guidance, a class of receivables is considered impaired, based on current information and events, if Bunge determines it probable that all amounts due under the original terms of the receivable will not be collected. Recognition of interest income is suspended once the borrower defaults on the originally scheduled delivery of agricultural commodities as the collection of future income is determined not to be probable. No additional interest income is accrued from the point of default until ultimate recovery, at which time amounts collected are credited first against the receivable and then to any unrecognized interest income.

Inventories —Readily marketable inventories ("RMI") are agricultural commodity inventories, such as soybeans, soybean meal, soybean oil, corn and wheat that are readily convertible to cash because of their commodity characteristics, widely available markets and international pricing mechanisms. All of Bunge's RMI are recorded at fair value. These agricultural commodity inventories have quoted market prices in active markets, may be sold without significant further processing, and have predictable and insignificant disposal costs. Changes in the fair values of RMI are recognized in earnings as a component of Cost of goods sold.

Inventories other than RMI are stated at the lower of cost or market by inventory product class. Cost is determined using primarily the weighted-average cost method.

Fair Value Measurements —Bunge determines fair value based on the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Bunge determines the fair values of its readily marketable inventories, derivatives, and certain other assets based on the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs are inputs based on market data obtained from sources independent of Bunge that reflect the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are inputs that are developed based on the best information available in circumstances that reflect Bunge's own assumptions based on market data and on assumptions that market participants would use in pricing the asset or liability. The fair value standard describes three levels within its hierarchy that may be used to measure fair value.

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Level	Description	Financial Instrument (Assets / Liabilities)
Level 1	Quoted prices (unadjusted) in active markets for identical assets or liabilities.	Exchange traded derivative contracts. Marketable securities in active markets.
Level 2	Observable inputs, including adjusted Level 1 quotes, quoted prices for similar assets or liabilities, quoted prices in markets that are less active than traded exchanges and other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.	Exchange traded derivative contracts (less liquid market). Readily marketable inventories. Over-the-counter (‘‘OTC’’) commodity purchase and sale contracts. OTC derivatives whose value is determined using pricing models with inputs that are generally based on exchange traded prices, adjusted for location specific inputs that are primarily observable in the market or can be derived principally from or corroborated by observable market data. Marketable securities in less active markets.
Level 3	Unobservable inputs that are supported by little or no market activity and that are a significant component of the fair value of the assets or liabilities.	Assets and liabilities whose value is determined using proprietary pricing models, discounted cash flow methodologies or similar techniques. Assets and liabilities for which the determination of fair value requires significant management judgment or estimation.

Based on historical experience with Bunge’s suppliers and customers, Bunge’s own credit risk, and knowledge of current market conditions, Bunge does not view nonperformance risk to be a significant input to fair value for the majority of its forward commodity purchase and sale contracts.

In many cases, a valuation technique used to measure fair value includes inputs from multiple levels of the fair value hierarchy. The lowest level of input that is a significant component of the fair value measurement determines the placement of the entire fair value measurement in the hierarchy. Bunge’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the classification of fair value assets and liabilities within the fair value hierarchy levels.

Bunge’s policy regarding the timing of transfers between levels, including both transfers into and transfers out of Level 3, is to measure and record the transfers at the end of the reporting period.

The majority of Bunge's exchange traded agricultural commodity futures are settled daily, generally through its clearing subsidiary and, therefore, such futures are not included in the assets and liabilities that are accounted for at fair value on a recurring basis .

Derivative Instruments and Hedging Activities —Bunge enters into derivative instruments to manage its exposure to movements associated with agricultural commodity prices, transportation costs, foreign currency exchange rates, interest rates, and energy costs. Bunge's use of these instruments is generally intended to mitigate the exposure to market variables (see Note 16, Derivative instruments and hedging activities ). Additionally, commodity contracts relating to forward sales of commodities in the Company’s Agribusiness segment, such as soybeans, soybean meal and oil, corn, and wheat, are accounted for as derivatives at fair value under ASC 815 (see Revenue Recognition below).

Generally, derivative instruments are recorded at fair value in other current assets or other current liabilities in Bunge's consolidated balance sheets. Bunge assesses at the inception of a hedge whether any derivatives designated as hedges are highly effective in offsetting changes in the hedged items and, on an ongoing basis, qualitatively monitors whether that assertion is still met. The changes in fair values of derivative instruments designated as fair value hedges, along with the gains or losses on the related hedged items are recorded in earnings in the consolidated statements of income in the same caption as the hedged items. The changes in fair values of derivative instruments that are designated as cash flow hedges are recorded in accumulated other comprehensive income (loss) and are reclassified to earnings when the hedged cash flows affect earnings or when the hedge is no longer considered to be effective. In addition, Bunge may designate certain derivative instruments and non-derivative instruments as net investment hedges to hedge the exposure associated with its equity investments in foreign operations. When using forward derivative contracts as hedging instruments in a net investment hedge, all changes in the fair value of the derivative are recorded as a component of accumulated other comprehensive income (loss) in the consolidated balance sheets.

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Marketable Securities and Other Short-Term Investments —Bunge classifies its marketable debt securities and short-term investments as available-for-sale, held-to-maturity or trading. Available-for-sale debt securities are reported at fair value with unrealized gains (losses) included in accumulated other comprehensive income (loss). Held-to-maturity debt investments represent financial assets in which Bunge has the intent and ability to hold to maturity. Debt trading securities and all equity securities are recorded at fair value and are bought and held principally for selling them in the near term and therefore held for only a short period of time, with all gains (losses) included in net income (loss). Bunge monitors its held-to-maturity investments for impairment periodically and recognizes an impairment charge when the decline in fair value of an investment is judged to be other than temporary.

Recoverable Taxes —Recoverable taxes include value-added taxes paid upon the acquisition of raw materials and taxable services and other transactional taxes, which can be recovered in cash or as compensation against income taxes or other taxes owed by Bunge, primarily in Brazil and Europe. These recoverable tax payments are included in other current assets or other non-current assets based on their expected realization. In cases where Bunge determines that recovery is doubtful, recoverable taxes are reduced by allowances for the estimated unrecoverable amounts.

Property, Plant and Equipment, Net —Property, plant and equipment, net is stated at cost less accumulated depreciation. Major improvements that extend either the life, capacity, efficiency, or improve the safety of an asset are capitalized, while maintenance and repairs are expensed as incurred. Costs related to legal obligations associated with the future retirement of capitalized assets are capitalized as part of the cost of the related asset. Bunge generally capitalizes eligible costs to acquire or develop internal-use software that are incurred during the application development stage. Interest costs on borrowings during construction/completion periods of major capital projects are also capitalized.

Depreciation is computed based on the straight-line method over the estimated useful lives of the assets. Estimated useful lives for property, plant and equipment are as follows:

	Years
Buildings	10 - 50
Machinery and equipment	7 - 25
Furniture, fixtures and other	3 - 20

Goodwill —Goodwill represents the cost in excess of the fair value of net assets acquired in a business acquisition. Goodwill is not amortized but is tested annually for impairment, or between annual tests if events or circumstances indicate potential impairment. Bunge's annual impairment testing is generally performed during the fourth quarter of its fiscal year.

Goodwill is tested for impairment at the reporting unit level, which has been determined to be the Company's operating segments or one level below the operating segments in certain instances (see Note 8, Goodwill ).

Other Intangible Assets —Finite lived intangible assets primarily include trademarks, customer relationships and lists, port facility usage rights, and patents that are amortized on a straight-line basis over their contractual or legal lives, or their estimated useful lives where such lives are not determined by law or contract (see Note 9, Other intangible assets ).

Impairment of Property, Plant and Equipment and Finite Lived Intangible Assets —Bunge reviews its property, plant and equipment and finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. Bunge bases its evaluation of recoverability on such indicators as the nature, future economic benefits, and geographic locations of the assets, historical or future profitability measures, and other external market conditions. If these indicators result in the expected non-recoverability of the carrying amount of an asset or asset group, Bunge evaluates potential impairment using undiscounted estimated future cash flows. If such undiscounted future cash flows during the asset's remaining useful life are below its carrying value, a loss is recognized for the shortfall, measured by the present value of the estimated future cash flows or by third-party appraisals. Bunge records impairments related to property, plant and equipment and finite-lived intangible assets used in the processing of its products in cost of goods sold in its consolidated statements of income. Any impairment of marketing or brand assets is recognized in selling, general and administrative expenses in the consolidated statements of income (see Note 10, Impairments ).

Property, plant and equipment and other finite-lived intangible assets to be sold or otherwise disposed of are reported at the lower of carrying amount or fair value less cost to sell.

Investments in Affiliates —Bunge has investments in various unconsolidated joint ventures accounted for using the equity method or cost method. Bunge reviews its investments annually or when an event or circumstances indicate that a potential

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decline in value may be other than temporary. Bunge considers various factors in determining whether to recognize an impairment charge, including the length of time that the fair value of the investment is expected to be below its carrying value, the financial condition, operating performance and near-term prospects of the affiliate and Bunge's intent and ability to hold the investment for a period of time sufficient to allow for recovery of the fair value. (see Note 10, Impairments and Note 11, Investments in affiliates ).

Revenue Recognition —The Company’s revenue comprises sales from commodity contracts that are accounted for under ASC 815, Derivatives and Hedging (ASC 815) and sales of other products and services that are accounted for under ASC 606, Revenue from Contracts with Customers (ASC 606). Additional information about the Company’s revenues can be found in Note 28, Segment Information .

Revenue from commodity contracts (ASC 815) - Revenue from commodity contracts primarily relates to forward sales of commodities in the Company’s Agribusiness segment, such as soybeans, soybean meal and oil, corn and wheat, which are accounted for as derivatives at fair value under ASC 815. These forward sales meet the definition of a derivative under ASC 815 as they have an underlying (e.g. the price of soybeans), a notional amount (e.g. metric tons), no initial net investment and can be net settled since the commodity is readily convertible to cash. Bunge does not apply the normal purchase and normal sale exception available under ASC 815 to these contracts. Certain of the Company’s sales in its Edible Oil Products, Milling Products, and Sugar and Bioenergy segments also qualify as derivatives, primarily sales of commodities like bulk soybean and canola oil, and sugar.

Revenue from commodity contracts is recognized in Net sales for the contracted amount when the contracts are settled at a point in time by transferring control of the commodity to the customer, similarly to revenue recognized from contracts with customers under ASC 606. From inception through settlement, these forward sales arrangements are recorded at fair value under ASC 815 with unrealized gains and losses recognized in Cost of goods sold and carried on the consolidated balance sheet as Current assets (see Note 6, Other current assets ) or Current liabilities (see Note 13, Other current liabilities ), respectively. Further information about the fair value of these contracts is presented in Note 15, Fair value measurements .

Revenue from contracts with customers (ASC 606) - Revenue from contracts with customers accounted for under ASC 606 is primarily generated in the Company's Edible Oil Products, Milling Products, Sugar and Bioenergy and Fertilizer segments through the sale of refined edible oil-based products such as packaged vegetable oils, shortenings, margarines and mayonnaise; milled grain products such as wheat flours, bakery mixes, corn-based products, and rice; certain sugar and bioenergy products; and fertilizer products. These sales are accounted for under ASC 606 as these sales arrangements do not meet the aforementioned criteria to be considered derivatives under ASC 815. These revenues are measured based on consideration specified in a contract with a customer, and exclude sales taxes, discounts related to promotional programs and amounts collected on behalf of third parties. The Company recognizes revenue from these contracts at a point in time when it satisfies a performance obligation by transferring control of a product to a customer, generally when legal title and risks and rewards transfer to the customer. Sales terms provide for transfer of title either at the time and point of shipment or at the time and point of delivery and acceptance of the product being sold. In contracts that do not specify the timing of transfer of legal title or transfer of significant risks and rewards of ownership, judgment is required in determining the timing of transfer of control. In such cases, the Company considers standard business practices and the relevant laws and regulations applicable to the transaction to determine when legal title or the significant risks and rewards of ownership are transferred.

The transaction price is generally allocated to performance obligations on a relative standalone selling price basis. Standalone selling prices are estimated based on observable data of the Company’s sales of such products and services to similar customers and in similar circumstances on a standalone basis. In assessing whether to allocate variable consideration to a specific part of the contract, the Company considers the nature of the variable payment and whether it relates specifically to its efforts to satisfy a specific part of the contract. Variable consideration is generally known upon satisfaction of the performance obligation.

Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue producing transaction, that are collected by the Company from a customer, are excluded from revenue.

Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in Cost of goods sold.

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Warranties provided to customers are primarily assurance-type warranties on the fitness of purpose and merchantability of the Company’s goods and services. The Company does not provide service-type warranties to customers.

Payment is generally due at the time of shipment or delivery, or within a specified time frame after shipment or delivery, which is generally 30-60 days. The Company’s contracts generally provide customers the right to reject any products that do not meet agreed quality specifications. Product returns and refunds are not material.

Additionally, the Company recognizes revenue in the Agribusiness segment from ocean freight and port services over time as the related services are performed. Performance obligations are typically completed within a fiscal quarter and any unearned revenue or accrued revenues are not material.

Share-Based Compensation —Bunge maintains equity incentive plans for its employees and non-employee directors (see Note 26, Share-based compensation ). Bunge accounts for share-based compensation based on the grant date fair value. Share-based compensation expense is recognized on a straight-line basis over the requisite service period.

Income Taxes —Income tax expenses and benefits are recognized based on the tax laws and regulations in the jurisdictions in which Bunge's subsidiaries operate. Under Bermuda law, Bunge is not required to pay taxes in Bermuda on either income or capital gains. The provision for income taxes includes income taxes currently payable and deferred income taxes arising as a result of temporary differences between the carrying amounts of existing assets and liabilities in Bunge's financial statements and their respective tax bases. Deferred tax assets are reduced by valuation allowances if current evidence does not suggest that the deferred tax asset will be realized. Accrued interest and penalties related to unrecognized tax benefits are recognized in Income tax (expense) benefit in the consolidated statements of income (see Note 14, Income taxes ).

Research and Development —Research and development costs are expensed as incurred. Research and development expenses were $ 15 million , $ 15 million and $ 20 million for the years ended December 31, 2019 , 2018 and 2017 , respectively.

New Accounting Pronouncements —In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments-Credit Losses (Topic 326) , which introduces a new accounting model, referred to as the current expected credit losses ("CECL") model, for estimating credit losses on certain financial instruments and expands the disclosure requirements for estimating such credit losses. Under the new model, an entity is required to estimate the credit losses expected over the life of an exposure (or pool of exposures). The guidance also amends the current impairment model for debt securities classified as available-for-sale securities. The new guidance will be effective for Bunge starting January 1, 2020. The Company will adopt the guidance under a modified-retrospective approach with a cumulative effect adjustment to opening Retained earnings as of the effective date. The adoption of this standard is not expected to have a material impact on Bunge's consolidated financial statements.

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740)-Simplifying the Accounting for Income Taxes, which reduces complexity in the accounting for income taxes by removing certain exceptions to the general principles in Topic 74 0. The amendments also improve consistent application of and simplify U.S. GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption of the amendments is permitted. Bunge is evaluating the impact of this standard on its consolidated financial statements.

Recently Adopted Accounting Pronouncements —On January 1, 2019 the Company adopted ASU 2016-02, Leases (Topic 842) . Under the new provisions, all leases, except short-term leases, are recognized on the balance sheet as right-of-use assets and lease liabilities for the obligation to make payments under such leases. The Company elected the amended transition approach provided by ASU 2018-11, Leases (Topic 842): Targeted Improvements , which allows entities to apply the guidance as of the date of initial application by recognizing a cumulative-effect adjustment to opening Retained earnings, with no retrospective adjustments. The Company also elected the package of practical expedients that permits the Company to not reassess under the new standard prior conclusions about lease identification, lease classification, and initial direct costs, as well as the practical expedient to not separate lease components from non-lease components in accounting for all classes of underlying assets. Upon adoption, the Company recorded $ 1,006 million of operating lease assets and $ 962 million of operating lease liabilities. Included in Operating lease assets at January 1, 2019 was $ 44 million of prepaid lease balances that were reclassified from Other non-current assets.

On January 1, 2019 the Company adopted ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This ASU allows a

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reclassification from Accumulated other comprehensive income ("AOCI") to Retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act ("Tax Act"). Consequently, the ASU eliminates the stranded tax effects resulting from the Tax Act and will improve the usefulness of information reported to financial statement users. However, because this ASU only relates to the reclassification of the income tax effects of the Tax Act, the underlying guidance that requires that the effect of a change in tax laws or rates be included in Income (loss) from continuing operations is not affected. The Company's stranded tax effects relate to unrecognized costs associated with certain pension plans for which the tax benefit was initially recorded to AOCI. Absent this ASU, the Company's policy is to release stranded tax effects upon the pension plans' termination. Upon the adoption of this ASU, the Company elected to reclassify the income tax effects of the Tax Act, resulting in a decrease to AOCI and an increase to Retained earnings of $ 21 million .

Global Competitiveness Program - In July 2017, the Company announced a comprehensive global competitiveness program to improve its cost position and deliver increased value to shareholders (the “Global Competitiveness Program” or "GCP"). The GCP was fully implemented by the end of 2019, and has reduced the Company’s overhead costs. The Company identified key elements of its strategy to meet this goal, including adopting a zero-based budgeting process that will target excess costs in specific budget categories and improving efficiency and scalability by simplifying organizational structures, streamlining processes and consolidating back office functions globally, including the relocation of the Company’s global headquarters. As part of the GCP, Bunge offered a voluntary early retirement program to certain U.S. based salaried employees. Costs associated with the early retirement program are reflected in severance and other employee benefit costs for the year ended December 31, 2017. In conjunction with the GCP, the Company has implemented other cost reduction and strategic initiatives to enhance the efficiency and performance of the Company’s business.

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The table below sets forth, by type and segment, the costs recorded for the GCP and other associated initiatives for the years ended December 31, 2019 , 2018 , and 2017:

(US$ in millions)		Agribusiness Segment				Edible Oils Segment				Milling Segment				Sugar and Bioenergy Segment				Fertilizer Segment				Total
2019
Severance and Other Employee Benefit Costs		$	19			$	6			$	4			$	—			$	—			$	29
Consulting and Professional Services		4				2				—				1				—				7
Other Program Costs		6				2				1				1				—				10
Total Program Costs		$	29			$	10			$	5			$	2			$	—			$	46
2018
Severance and Other Employee Benefit Costs		$	15			$	2			$	1			$	2			$	2			$	22
Consulting and Professional Services		18				4				3				4				1				30
Other Program Costs		6				1				—				1				—				8
Total Program Costs		$	39			$	7			$	4			$	7			$	3			$	60
2017
Severance and Other Employee Benefit Costs		$	39			$	12			$	6			$	1			$	1			$	59
Consulting and Professional Services		10				4				1				3				—				18
Other Program Costs		—				—				—				—				—				—
Total Program Costs		$	49			$	16			$	7			$	4			$	1			$	77

In addition to the above charges, for the year ended December 31, 2017 , $ 13 million of severance and other employee benefit costs were recorded related to other industrial productivity initiatives. For the years ended December 31, 2019 , 2018 , and 2017 $ 4 million , $ 9 million , and $ 35 million , respectively, of the above costs were recorded in Cost of goods sold ("COGS") and $ 42 million , $ 51 million , and $ 55 million , respectively, were recorded in Selling, general and administrative expenses ("SG&A").

Bunge's liability associated with the GCP and other associated initiatives is primarily comprised of accruals for severance and other employee benefit costs. The following table sets forth the activity affecting the liability for severance and other employee benefit costs related to the GCP and other associated initiatives, which is recorded in Other current liabilities on the consolidated balance sheet.

(US$ in millions)		Severance and Other Employee Benefit Costs
Balance at December 31, 2017		$	45
Charges incurred		22
Cash payments		( 64		)
Balance at December 31, 2018		$	3
Charges incurred		29
Cash payments		( 21		)
Balance at December 31, 2019		$	11

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Portfolio Rationalization Initiatives - The Company's portfolio rationalization initiatives may include the sale or disposal of long-lived assets and certain other investments, resulting in certain gains and charges being recorded in earnings. For the years ended December 31, 2019 , 2018 , and 2017, $ 1,761 million , $ 39 million and $ 45 million , respectively, of such charges have been recognized. Non-cash charges in 2019, including impairment and a loss on sale, of $ 1,524 million , recorded in COGS, $ 49 million recorded in Other income (expense)-net, and $ 2 million , recorded in SG&A, relate to the formation of a joint venture involving the company's sugar and bioenergy operations in Brazil, as further discussed below. Additional non-cash impairment charges of $ 28 million , recorded in SG&A, primarily relate to operating lease assets and leasehold improvements associated with the relocation of the company's global headquarters, and $ 152 million of non-cash impairment charges, recorded in COGS, relate to PP&E and intangible assets subject to portfolio rationalization initiatives. The Company also incurred a loss on the sale of an equity method investment of $ 6 million , recorded in Other income (expense)-net. Of the above charges recorded in the year ended December 31, 2019 , $ 1,590 million , $ 100 million , $ 41 million , $ 29 million , and $ 1 million were recorded in the company's Sugar and Bioenergy, Agribusiness, Edible Oils Products, Milling Products, and Fertilizer segments, respectively.

On December 2, 2019, the Company and BP completed the formation of BP Bunge Bioenergia, the Brazilian bioenergy joint venture that combines their Brazilian bioenergy and sugarcane ethanol businesses. Pursuant to the business combination agreement, the Company and BP contributed their respective interests in their Brazilian sugar and bioenergy operations to the joint venture. The Company received cash proceeds of $ 775 million in the transaction, comprising $ 700 million in respect of non-recourse debt of the Company assumed by the joint venture at closing, and an additional $ 75 million from BP, before customary closing adjustments. The Company used the proceeds to reduce outstanding indebtedness under its credit facilities. The joint venture agreements provide for certain exit rights of the parties, including private sale rights beginning 18 months after closing and the ability by the Company to trigger an initial public offering of the joint venture after two years from closing, enabling future monetization potential.

In connection with its entry into the business contribution agreement, the Company classified the assets and liabilities to be transferred to the joint venture under the business contribution agreement as held for sale in its condensed, consolidated financial statements in the quarter ended September 30, 2019. Accordingly, the Company recorded those assets and liabilities at fair value, less estimated transaction costs. As a result of the classification as held for sale, the Company recognized an impairment charge in its Sugar and Bioenergy segment, principally related to the recognition of cumulative currency translation effects, of $ 1,524 million , recorded in COGS, in the quarter ended September 30, 2019. Additional charges of $ 65 million were recorded in the quarter ended December 31, 2019 related to a loss on sale and closing and other costs associated with the transaction.

Acquisitions

On March 1, 2018 ("the acquisition date"), Bunge acquired a 70 % ownership interest in IOI Loders Croklaan ("Loders") from IOI Corporation Berhad ("IOI") for $ 980 million in cash. The transaction expands Bunge's value-added capabilities, reach, and scale across core geographies to establish Bunge as a global leader in business-to-business (or "B2B") oil solutions. The Loders portfolio includes a full range of palm and tropical oil-derived products with strength in confectionery, bakery and infant nutrition applications.

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The following table summarizes the allocation of the fair values of the assets acquired and liabilities assumed at the acquisition date, as included in Bunge's consolidated balance sheet:

(US$ in millions)
Cash and cash equivalents	$	82
Accounts receivable	146
Inventories	406
Other current assets	66
Property, plant and equipment	411
Other intangible assets	464
Goodwill	242
Total assets	1,817
Trade accounts payable	( 109		)
Other current liabilities	( 100		)
Deferred income taxes	( 143		)
Other non-current liabilities	( 35		)
Total liabilities	( 387		)
Redeemable noncontrolling interest	( 450		)
Net assets acquired	$	980

The $ 242 million of goodwill recognized was assigned to the Edible Oil Products segment. The goodwill recognized is primarily attributable to expected synergies and the assembled workforce of Loders. None of the goodwill is expected to be deductible for income tax purposes.

The fair value of the identifiable intangible assets was determined primarily using the “income approach,” which requires a forecast of all the expected future cash flows either using the multi-period excess earnings method or the relief-from-royalty method. Some of the more significant assumptions inherent in the development of intangible asset values include: the amount and timing of projected future cash flows, the discount rate selected to measure the risks inherent in the future cash flows, and the assessment of the intangible asset’s life cycle, as well as other factors.

The following table provides the details of other intangible assets acquired, by major class and weighted average useful life:

(US$ in millions)	Useful life
Customer relationships	15 years	$	265
Intellectual property	10 years	120
Trade names	15 years	51
Favorable leases	38 years	26
Other	various	2
Total Other intangible assets		$	464

The fair value in the opening balance sheet of the 30 % redeemable noncontrolling interest in Loders was estimated to be $ 450 million . The fair value was estimated based on 30 % of the total equity value of Loders based on the transaction price for the 70 % stake in Loders, considering the cash paid and the value of the put/call provisions. See Note 23 for more information related to this redeemable noncontrolling interest.

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The amounts of revenue and earnings of Loders included in Bunge's consolidated statement of income from the acquisition date to December 31, 2018 is as follows:

(US$ in millions)
Net sales	$	1,331
Income (loss) from continuing operations	$	3

The following represents the unaudited supplemental pro forma results of the combined entity as if Loders was acquired on January 1, 2017:

	Year Ended December 31,
(US$ in millions)	2018			2017
Net sales	$	46,047		$	47,588
Income (loss) from continuing operations	$	298		$	129

The supplemental pro forma amounts for Income (loss) from continuing operations above have been adjusted to reflect additional depreciation and amortization that would have been charged assuming the fair value adjustments to Property, plant and equipment and Other intangible assets had been applied on January 1, 2017. Additionally, these amounts were also adjusted to reflect additional interest expense on the $ 1 billion of senior notes issued in connection with the acquisition, as if such issuance occurred on January 1, 2017. Supplemental pro forma Income (loss) from continuing operations for the year ended December 31, 2018 was also adjusted to exclude $ 19 million of acquisition and integration related costs incurred in 2018, while 2017 supplemental pro forma Income (loss) from continuing operations was adjusted to include these charges.

Supplemental pro forma financial information is not necessarily indicative of the Company's actual results of operations if the acquisition had been completed at the date indicated, nor is it necessarily an indication of future operating results. Amounts do not include any operating efficiencies or cost savings that the Company believes are achievable.

Other acquisitions

On January 30, 2018, Bunge acquired Minsa Corporation ("Minsa USA") for $ 75 million . As a result of the transaction, Bunge acquired two corn mills in the United States. The purchase price allocation resulted in $ 37 million allocated to Property, plant and equipment, $ 20 million to finite-lived Other intangible assets, $( 1 ) million to other net assets and liabilities, and $ 19 million to Goodwill, all recorded in the Milling Products segment.

Dispositions

On December 2, 2019, Bunge and BP plc completed the formation of BP Bunge Bioenergia, a Brazilian bioenergy joint venture. As part of the transaction, Bunge contributed its interests in its Brazilian sugar and bioenergy operations to the joint venture and received cash proceeds of $ 775 million in the transaction, comprising $ 700 million in respect of non-recourse debt of the Company assumed by the joint venture at closing, and an additional $ 75 million from BP, before customary closing adjustments. As a result of this transaction, Bunge will account for the joint venture as an equity method investment. See Note 2 for further information related to this transaction.

On December 20, 2019, Bunge announced that it has entered into an agreement to sell its margarine and mayonnaise assets in Brazil. The transaction includes three production plants and the brands used for these two products. The completion of the sale is subject to regulatory approval and is expected to close during 2020. In connection with this agreement, the Company has classified the assets and liabilities to be sold as held for sale in its consolidated financial statements as of December 31, 2019. The following table presents the major classes of assets and liabilities included in Assets held for sale and Liabilities held for sale, respectively, on the Consolidated Balance Sheet at December 31, 2019:

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(US$ in millions)
Inventories	$	19
Property, plant, and equipment, net	49
Other intangible assets, net	4
Assets held for sale	$	72
Other current liabilities	$	4
Liabilities held for sale	$	4

Bunge engages in various trade structured finance activities to leverage the value of its global trade flows. For the years ended December 31, 2019 and 2018 , net returns from these activities were $ 27 million and $ 30 million , respectively, and were included as a reduction of cost of goods sold in the accompanying consolidated statements of income. These activities include programs under which Bunge generally obtains U.S. dollar-denominated letters of credit (“LCs”), each based on an underlying commodity trade flow, from financial institutions and time deposits denominated in either the local currency of the financial institutions' counterparties or in U.S. dollars, as well as foreign exchange forward contracts, and other programs in which trade related payables are set-off against receivables, all of which are subject to legally enforceable set-off agreements.

As of December 31, 2019 and 2018 , time deposits and LCs of $ 3,409 million and $ 4,729 million , respectively, were presented net on the consolidated balance sheets as the criteria of ASC 210-20, Offsetting , had been met. At December 31, 2019 and 2018 , time deposits, including those presented on a net basis, carried weighted-average interest rates of 3.10 % and 3.76 % , respectively. During the years ended December 31, 2019 , 2018 and 2017 , total net proceeds from issuances of LCs were $ 3,318 million , $ 4,657 million and $ 8,174 million , respectively. These cash inflows are offset by the related cash outflows resulting from placement of the time deposits and repayment of the LCs. All cash flows related to the programs are included in operating activities in the consolidated statements of cash flows.

Inventories by segment are presented below. Readily marketable inventories (“RMI”) are agricultural commodity inventories, such as soybeans, soybean meal, soybean oil, corn and wheat, carried at fair value because of their commodity characteristics, widely available markets, and international pricing mechanisms. The Company engages in trading and distribution, or merchandising activities, and part of RMI can be attributable to such activities and is not held for processing. All other inventories are carried at lower of cost or net realizable value.

	December 31,
(US$ in millions)	2019				2018
Agribusiness (1)	$	4,002			$	4,551
Edible Oil Products (2)	770				742
Milling Products	194				220
Sugar and Bioenergy (3)	6				280
Fertilizer	66				78
Total	$	5,038			$	5,871

(1)	Includes RMI of $ 3,796 million and $ 4,365 million at December 31, 2019 and 2018 , respectively. Of these amounts $ 2,589 million and $ 3,300 million can be attributable to merchandising activities at December 31, 2019 and 2018 , respectively.

(2)	Includes RMI of $ 133 million and $ 88 million at December 31, 2019 and 2018 , respectively.

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(3)	Includes RMI of $ 5 million and $ 79 million at December 31, 2019 and 2018 , respectively. Of these amounts, $ 0 million and $ 74 million can be attributable to merchandising activities at December 31, 2019 and 2018 , respectively.

Other current assets consist of the following:

	December 31,
(US$ in millions)	2019				2018
Unrealized gains on derivative contracts, at fair value	$	927			$	1,071
Prepaid commodity purchase contracts (1)	153				253
Secured advances to suppliers, net (2)	346				257
Recoverable taxes, net	476				500
Margin deposits	285				348
Marketable securities, at fair value, and other short-term investments	393				162
Deferred purchase price receivable (3)	105				128
Income taxes receivable	37				102
Prepaid expenses	221				165
Other	170				185
Total	$	3,113			$	3,171

(1)	Prepaid commodity purchase contracts represent advance payments against contracts for future delivery of specified quantities of agricultural commodities.

(2)

Bunge provides cash advances to suppliers, primarily Brazilian soybean farmers, to finance a portion of the suppliers' production costs. Bunge does not bear any of the costs or operational risks associated with growing the related crops. The advances are largely collateralized by future crops and physical assets of the suppliers, carry a local market interest rate, and settle when the farmer's crop is harvested and sold. The secured advances to farmers are reported net of allowances of $ 1 million and $ 1 million at December 31, 2019 and December 31, 2018 , respectively.

Interest earned on secured advances to suppliers of $ 26 million , $ 30 million and $ 44 million , for the years ended December 31, 2019 , 2018 and 2017 , respectively, is included in Net sales in the consolidated statements of income.

(3)	Deferred purchase price receivable represents additional credit support for the investment conduits in Bunge's trade receivables securitization program (see Note 19).

Marketable Securities and Other Short-Term Investments —Bunge invests in foreign government securities, corporate debt securities, deposits, equity securities, and other securities. The following is a summary of amounts recorded in the consolidated balance sheets as marketable securities and other short-term investments.

	December 31,
(US$ in millions)	2019				2018
Foreign government securities	$	212			$	55
Corporate debt securities	161				91
Certificate of deposits/time deposits	—				15
Equity securities	14				—
Other	6				1
Total marketable securities and other short-term investments	$	393			$	162

As of December 31, 2019 and 2018 , $ 387 million and $ 144 million , respectively, of marketable securities and other short-term investments are recorded at fair value. All other investments are recorded at cost, and due to the short-term nature of these

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investments, their carrying values approximate fair values. For the twelve months ended December 31, 2019 , unrealized gains of $ 32 million have been recorded for investments still held at December 31, 2019 .

Property, plant and equipment consist of the following:

	December 31,
(US$ in millions)	2019				2018
Land	$	390			$	403
Biological assets	—				663
Buildings	2,046				2,139
Machinery and equipment	4,834				5,664
Furniture, fixtures and other	587				581
Construction in progress	303				435
Gross book value	8,160				9,885
Less: accumulated depreciation and depletion	( 4,028		)		( 4,684		)
Total property, plant and equipment, net	$	4,132			$	5,201

Bunge's capital expenditures amounted to $ 528 million , $ 490 million , and $ 633 million during the years ended December 31, 2019 , 2018 and 2017 , respectively. Included in these capitalized expenditures was capitalized interest on construction in progress of $ 1 million , $ 4 million , and $ 6 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Depreciation and depletion expense was $ 489 million , $ 565 million and $ 580 million for the years ended December 31, 2019 , 2018 and 2017 , respectively.

Bunge performs its annual goodwill impairment analysis during the fourth quarter. If events or indicators of impairment occur between annual impairment analyses, the Company performs an impairment analysis at that date. These events or circumstances could include a significant change in the business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant asset. In testing for a potential impairment of goodwill, the Company: (1) verifies there are no changes to its reporting units with goodwill balances; (2) allocates goodwill to its various reporting units to which the acquired goodwill relates; (3) determines the carrying value, or book value, of its reporting units; (4) estimates the fair value of each reporting unit using a discounted cash flow model and/or using market multiples; (5) compares the fair value of each reporting unit to its carrying value; and (6) if the estimated fair value of a reporting unit is less than the carrying value, the Company recognizes an impairment charge for such amount, but not exceeding the total amount of goodwill allocated to that reporting unit.

Critical estimates in the determination of fair value under the income approach include, but are not limited to, assumptions about variables such as commodity prices, crop and related throughput and production volumes, profitability, future capital expenditures and discount rates, all of which are subject to a high degree of judgment.

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Changes in the carrying value of goodwill by segment for the years ended December 31, 2019 and 2018 are as follows:

(US$ in millions)	Agribusiness				Edible Oil Products				Milling Products				Sugar and Bioenergy (3)				Fertilizer				Total
Goodwill, gross of impairments	$	253			$	107			$	172			$	514			$	1			$	1,047
Accumulated impairment losses	( 2		)		( 13		)		( 3		)		( 514		)		—				( 532		)
Balance, December 31, 2017, net	251				94				169				—				1				515
Goodwill acquired (1)	—				242				19				—				—				261
Foreign currency translation	( 18		)		( 18		)		( 13		)		—				—				( 49		)
Goodwill, gross of impairments	235				331				178				514				1				1,259
Accumulated impairment losses	( 2		)		( 13		)		( 3		)		( 514		)		—				( 532		)
Balance, December 31, 2018, net	233				318				175				—				1				727
Foreign currency translation	( 5		)		( 4		)		1				—				—				( 8		)
Impairments (2)	—				( 108		)		—				—				—				( 108		)
Goodwill, gross of impairments	230				327				179				—				1				737
Accumulated impairment losses	( 2		)		( 121		)		( 3		)		—				—				( 126		)
Balance, December 31, 2019, net	$	228			$	206			$	176			$	—			$	1			$	611

(1)	Edible Oils goodwill relates to the Loders acquisition and the Milling Products goodwill relates to the Minsa USA acquisition. See Note 3, Business acquisitions and dispositions, for complete business acquisition details.

(2)

During the fourth quarter of 2019, the Company recorded an impairment charge related to the goodwill of its Loders reporting unit. The impairment resulted from a downward revision of forecasted future cash flows, as during 2019, the Loders reporting unit did not achieve its forecasted earnings targets due to operational delays at certain facilities, as well as delays in realizing certain expected synergies from the acquisition. The fair value of the Loders reporting unit was determined based on a weighted-average discounted cash flow model, comprising different scenarios and assumptions of the long-term revenues, costs, synergies, growth rates, capital expenditures and other related cash flows associated with each scenario.

(3)	During 2019, the Company contributed its Brazilian sugar and bioenergy operations into a joint venture with BP, forming BP Bunge Bioenergia. As such, historical goodwill, gross of impairments, and accumulated impairment losses have been derecognized from the consolidated financial statements.

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Other intangible assets are all finite-lived and consist of the following:

	December 31,
(US$ in millions)	2019				2018
Gross carrying amount:
Trademarks/brands	$	190			$	235
Licenses	11				12
Port rights	85				141
Customer Relationships	356				372
Patents	133				135
Other	99				95
	874				990
Accumulated amortization:
Trademarks/brands	( 81		)		( 106		)
Licenses	( 9		)		( 10		)
Port rights	( 22		)		( 37		)
Customer Relationships	( 75		)		( 54		)
Patents	( 43		)		( 32		)
Other	( 61		)		( 54		)
	( 291		)		( 293		)
Other intangible assets, net	$	583			$	697

In 2018 , Bunge acquired $ 282 million of customer relationships, $ 120 million of patents, $ 55 million of brands and trademarks, and $ 28 million other intangible assets, as part of the Loders and Minsa USA acquisitions. Bunge allocated $ 465 million to the Edible Oils segment and $ 20 million to the Milling segment. Finite lives of these intangibles range from 10 to 38 years.

Amortization expense was $ 55 million , $ 57 million and $ 29 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. The estimated annual future amortization expense is $ 36 million for 2020 through 2024. During 2019, Bunge recorded an impairment charge of $ 11 million related to a customer relationship intangible asset in its Milling Products segment.

For the year ended December 31, 2019 , Bunge recorded pre-tax, impairment charges of $ 1,825 million , of which $ 37 million , $ 1,678 million and $ 110 million are recorded in SG&A, COGS, and Other income (expense)—net ("Other"), respectively, in its consolidated statement of income. These amounts are primarily made up of $ 1,526 million relating to the contribution of the Company's Brazilian sugar and bioenergy operations to the newly formed BP Bunge Bioenergia joint venture, $ 158 million relating to the impairment of property, plant and equipment and right-of-use assets, primarily associated with portfolio rationalization initiatives, $ 108 million related to a goodwill impairment charge associated with the acquisition of Loders, $ 22 million related to the relocation of the Company's global headquarters, and an $ 11 million intangible asset impairment charge. The charges were recorded in the following segments; $ 1,535 million to Sugar and Bioenergy, $ 154 million to Edible Oils, $ 105 million to Agribusiness, $ 29 million to Milling, and $ 2 million to Other.

For the year ended December 31, 2018 , Bunge recorded pre-tax, impairment charges of $ 18 million , of which $ 7 million , $ 10 million and $ 1 million are recorded in SG&A, COGS, and Other, respectively, in its consolidated statement of income. These amounts primarily comprise $ 10 million relating to the impairment of property, plant and equipment at a port in Poland, in the Agribusiness segment, and a $ 6 million write-off of various machinery and equipment in Brazil, of which $ 5 million related to the Sugar and Bioenergy segment, and $ 1 million to Agribusiness.

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For the year ended December 31, 2017 Bunge recorded pre-tax impairment charges of $ 52 million , of which $ 19 million , $ 16 million and $ 17 million are in SG&A, COGS, and Other, respectively, in its consolidated statement of income. These amounts primarily comprise $ 25 million related to the impairment of property, plant and equipment of feedmills in China, a port in Poland and various machinery and equipment in Brazil, primarily in the Agribusiness segment, $ 17 million related to the impairment of two investments in affiliates in the Agribusiness and Sugar and Bioenergy segments, and $ 7 million related to an intangible asset impairment of patents.

The fair values of the assets were determined utilizing discounted future expected cash flows, and in the case of equity method investments, net market value based on broker quotes of similar assets.

Bunge participates in various unconsolidated joint ventures and other investments accounted for using the equity method. The Company records its interest in the net earnings of its equity method investees, along with the amortization of basis differences, within Other income (expense) - net, in the Consolidated Statements of Income. Basis differences represent differences between the cost of the investment and the underlying equity in net assets of the investment, and are amortized over the lives of the related assets that gave rise to them. At December 31, 2019, the aggregate of all basis differences was a credit of $ 136 million , primarily associated with BP Bunge Bioenergia. Certain equity method investments at December 31, 2019 are described below. Bunge allocates equity in earnings of affiliates to its reporting segments.

Agribusiness

Agricola Alvorada S.A. - Bunge has a 37 % ownership interest in an agribusiness company in Brazil which complements its grain origination business.

Agrofel Grãos e Insumos. - Bunge has a 30 % ownership interest in an agricultural inputs reseller in Brazil which complements its soybean origination business.

Complejo Agroindustrial Angostura S.A. ("CAIASA") - Bunge has a 33.3 % ownership interest in an oilseed processing facility joint venture with Louis Dreyfus Company and Aceitera General Deheza S.A. ("AGD"), in Paraguay.

G3 Global Holding GP Inc. - Bunge has a 25 % ownership interest in G3 Global Holding GP Inc., a joint venture with Saudi Agricultural and Livestock Investment Company that operates grain facilities in Canada.

Navegações Unidas Tapajós S.A. ("Tapajos") - Bunge has a 50 % ownership interest in Tapajos, a joint venture with Amaggi Exportaçao E Importaçao to operate inland waterway transportation between the municipalities of Itaituba and Barcarena, Brazil. The Tapajos complex is mainly dedicated to exporting soybeans and grains from Brazil.

Terminais do Graneis do Guaruja ("TGG") - Bunge has a 57 % ownership interest in TGG, a joint venture with Amaggi International Ltd. to operate a port terminal in Santos, Brazil, for the reception, storage and shipment of solid bulk cargoes.

Terminal Fronteira Norte Logística S.A.("TFN") - Bunge has a 50 % ownership interest in TFN, a joint venture with Amaggi Exportaçao E Importaçao to operate a port terminal in Barcarena, Brazil. The TFN complex is mainly dedicated to exporting soybeans and corn from Brazil.

Terminal 6 S.A. and Terminal 6 Industrial S.A. - Bunge has a joint venture, Terminal 6 S.A., in Argentina with AGD for the operation of a port facility located in the Santa Fe province of Argentina. Bunge is also a party to a second joint venture with AGD, Terminal 6 Industrial S.A., that operates a crushing facility located adjacent to the port facility. Bunge owns 40 % and 50 % , respectively, of these joint ventures.

Vietnam Agribusiness Holdings Ptd. Ltd ("VAH") - Bunge has a 45 % ownership in VAH, an oilseed processing facility joint venture with Wilmar International Limited ("Wilmar") and Quang Dung, a leading Vietnamese soybean meal distributor, in Vietnam. Bunge and Wilmar own equal 45 % interests in the joint venture and Quang Dung owns the remaining 10 % .

Sugar and Bioenergy

BP Bunge Bioenergia - Bunge has a 50 % ownership interest in BP Bunge Bioenergia, a joint venture with BP plc, a leading company in the ethanol, biopower, and sugar market in Brazil.

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ProMaiz - Bunge has a 50 % ownership interest in a corn wet milling facility joint venture with AGD in Argentina for the production of ethanol.

Summarized financial information, combined, for all of Bunge's equity method investees is as follows:

	December 31,
(US$ in millions)	2019				2018
Current assets	$	1,809			$	897
Noncurrent assets	3,822				1,727
Total assets	$	5,631			$	2,624
Current liabilities	$	1,344			$	581
Noncurrent liabilities	2,028				839
Total liabilities	$	3,372			$	1,420

	Years ended December 31,
(US$ in millions)	2019				2018				2017
Net Sales	$	3,611			$	3,923			$	2,953
Gross Profit	359				264				157
Net income	95				61				—

Other non-current assets consist of the following:

	December 31,
(US$ in millions)	2019				2018
Recoverable taxes, net (1)	$	48			$	112
Judicial deposits (1)	106				115
Other long-term receivables	6				8
Income taxes receivable (1)	208				221
Long-term investments	83				91
Affiliate loans receivable	29				29
Long-term receivables from farmers in Brazil, net (1)	69				93
Other	129				154
Total	$	678			$	823

(1)	These non-current assets arise primarily from Bunge's Brazilian operations and their realization could take several years.

Recoverable taxes, net —Recoverable taxes are reported net of allowances of $ 41 million and $ 27 million at December 31, 2019 and 2018 , respectively.

Judicial deposits —Judicial deposits are funds that Bunge has placed on deposit with the courts in Brazil. These funds are held in judicial escrow related to certain legal proceedings pending legal resolution and bear interest at the SELIC rate, which is the benchmark rate of the Brazilian central bank.

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Income taxes receivable —Income taxes receivable includes overpayments of current income taxes plus accrued interest. These income tax prepayments are expected to be utilized to settle future income tax obligations. Income taxes receivable in Brazil bear interest at the SELIC rate.

Affiliate loans receivable —Affiliate loans receivable are primarily interest-bearing receivables from unconsolidated affiliates with a remaining maturity of more than one year.

Long-term receivables from farmers in Brazil, net —Bunge provides financing to farmers in Brazil, primarily through secured advances against farmer commitments to deliver agricultural commodities (primarily soybeans) upon harvest of the then-current year's crop and through credit sales of fertilizer to farmers. Certain such long-term receivables from farmers are originally recorded in Other current assets as prepaid commodity purchase contracts or secured advances to suppliers (see Note 6) and reclassified to Other non-current assets when collection issues with farmers arise and amounts become past due and resolution of matters is expected to take more than one year.

The average recorded investment in long-term receivables from farmers in Brazil for the years ended December 31, 2019 and 2018 was $ 186 million and $ 215 million , respectively. The table below summarizes Bunge's recorded investment in long-term receivables from farmers in Brazil and the related allowance amounts.

	December 31, 2019								December 31, 2018
(US$ in millions)	Recorded Investment				Allowance				Recorded Investment				Allowance
For which an allowance has been provided:
Legal collection process (1)	$	95			$	85			$	105			$	89
Renegotiated amounts (2)	11				11				17				17
For which no allowance has been provided:
Legal collection process (1)	50				—				51				—
Renegotiated amounts (2)	5				—				10				—
Other long-term receivables	4				—				16				—
Total	$	165			$	96			$	199			$	106

(1)	All amounts in legal process are considered past due upon initiation of legal action.

(2)	All renegotiated amounts are current on repayment terms.

The table below summarizes the activity in the allowance for doubtful accounts related to long-term receivables from farmers in Brazil.

	Year Ended December 31,
(US$ in millions)	2019				2018
Beginning balance	$	106			$	113
Bad debt provisions	6				20
Recoveries	( 11		)		( 8		)
Write-offs	( 2		)		( 2		)
Foreign currency translation	( 3		)		( 17		)
Ending balance	$	96			$	106

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Other current liabilities consist of the following:

	December 31,
(US$ in millions)	2019				2018
Accrued liabilities	$	602			$	618
Unrealized losses on derivative contracts at fair value	766				1,192
Advances on sales	411				405
Other	476				287
Total	$	2,255			$	2,502

Bunge operates globally and is subject to the tax laws and regulations of numerous tax jurisdictions and authorities, as well as tax agreements and treaties among these jurisdictions. Bunge's income tax provision is impacted by, among other factors, changes in tax laws, regulations, agreements and treaties, currency exchange rates, and Bunge's profitability in each tax jurisdiction.

Bunge has elected to use the U.S. federal income tax rate to reconcile the actual provision for income taxes.

The components of Income (loss) from continuing operations before income tax are as follows:

	Year Ended December 31,
(US$ in millions)	2019				2018				2017
United States	$	( 4	)		$	233			$	21
Non-United States	( 1,201		)		223				209
Total	$	( 1,205	)		$	456			$	230

The components of the Income tax expense (benefit) are:

	Year Ended December 31,
(US$ in millions)	2019				2018				2017
Current:
United States	$	32			$	33			$	45
Non-United States	78				140				34
	110				173				79
Deferred:
United States	( 25		)		4				20
Non-United States	1				2				( 43		)
	( 24		)		6				( 23		)
Total	$	86			$	179			$	56

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Reconciliation of the Income tax expense (benefit) if computed at the U.S. Federal income tax rate to Bunge's reported Income tax expense (benefit) is as follows:

	Year Ended December 31,
(US$ in millions)	2019				2018				2017
Income (loss) from continuing operations before income tax	$	( 1,205	)		$	456			$	230
Income tax rate	21		%		21		%		35		%
Income tax expense at the U.S. Federal tax rate	( 253		)		96				80
Adjustments to derive effective tax rate:
Foreign earnings taxed at different statutory rates	( 66		)		24				( 38		)
Valuation allowances	66				114				43
Fiscal incentives (1)	( 43		)		( 43		)		( 42		)
Foreign exchange on monetary items	12				24				( 9		)
Tax rate changes	( 8		)		4				( 62		)
Non-deductible expenses	11				8				27
Uncertain tax positions	( 29		)		22				( 48		)
Deferred balance adjustments	( 5		)		—				( 4		)
Equity distributions, net	( 7		)		( 31		)		—
Transition tax	( 11		)		( 15		)		105
Tax exempt investments	—				—				( 14		)
Tax credits	( 7		)		( 5		)		( 8		)
Incremental tax on future distributions	—				( 26		)		27
State taxes	3				8				( 4		)
Goodwill impairment - Loders	28				—				—
Losses on Brazilian sugar and bioenergy contribution to joint venture	379				—				—
Other	16				( 1		)		3
Income tax (benefit) expense	$	86			$	179			$	56

(1)	Fiscal incentives predominantly relate to investment incentives in Brazil that are exempt from Brazilian income tax.

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The primary components of the deferred tax assets and liabilities and the related valuation allowances are as follows:

	December 31,
(US$ in millions)	2019				2018
Deferred income tax assets:
Net operating loss carryforwards	$	530			$	781
Operating lease obligations	239				—
Employee benefits	110				116
Tax credit carryforwards	44				12
Inventories	1				—
Accrued expenses and other	259				340
Total deferred tax assets	1,183				1,249
Less valuation allowances	( 404		)		( 766		)
Deferred tax assets, net of valuation allowance	779				483
Deferred income tax liabilities:
Property, plant and equipment	286				233
Operating lease assets	239				—
Undistributed earnings of affiliates	9				6
Investments	13				16
Intangibles	119				100
Inventories	—				26
Total deferred tax liabilities	666				381
Net deferred tax assets	$	113			$	102

As of December 31, 2019, Bunge has determined it has unremitted earnings that are considered to be indefinitely reinvested of approximately $ 183 million and accordingly, no provision for income taxes has been made. If these earnings were distributed in the form of dividends or otherwise, Bunge would be subject to income taxes in the form of withholding taxes to the recipient for an amount of approximately $ 37 million .

At December 31, 2019, Bunge's pre-tax loss carryforwards totaled $ 2,011 million , of which $ 1,488 million have no expiration, including loss carryforwards of $ 713 million in Brazil. While loss carryforwards in Brazil can be carried forward indefinitely, annual utilization is limited to 30 % of taxable income calculated on an entity by entity basis as Brazil tax law does not allow consolidated tax filings. As a result, realization of these carryforwards may take in excess of five years . At December 31, 2018, Bunge’s pre-tax loss carryforwards totaled $ 2,909 million , of which $ 2,340 million had no expiration, including loss carryforwards of $ 1,434 million in Brazil. The decrease in pre-tax loss carryforwards from 2018 to 2019 is primarily attributable to the contribution of the Company’s Brazilian sugar and bioenergy operations to the newly formed BP Bunge Bioenergia joint venture.

The remaining tax loss carryforwards expire at various periods beginning in 2020 through the year 2038.

Income Tax Valuation Allowances —Bunge records valuation allowances when current evidence does not suggest that some portion or all of its deferred tax assets will be realized. The ultimate realization of deferred tax assets depends primarily on Bunge's ability to generate sufficient timely future income of the appropriate character in the appropriate taxing jurisdiction.

As of December 31, 2019 and 2018, Bunge has recorded valuation allowances of $ 404 million and $ 766 million , respectively. The net decrease of $ 362 million is primarily attributable to the contribution of the Company's Brazilian sugar and bioenergy operations to the newly formed BP Bunge Bioenergia joint venture.

Unrecognized Tax Benefits —ASC Topic 740 requires applying a "more likely than not" threshold to the recognition and de-recognition of tax benefits. Accordingly, Bunge recognizes the amount of tax benefit that has a greater than 50 percent

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likelihood of being ultimately realized upon settlement. At December 31, 2019 and 2018, respectively, Bunge had recorded unrecognized tax benefits of $ 51 million and $ 120 million in Other non-current liabilities and $ 2 million and $ 0 million in Current liabilities in its consolidated balance sheets. During 2019, 2018 and 2017, respectively, Bunge recognized $( 11 ) million , $( 4 ) million and $( 9 ) million of interest and penalty charges in Income tax expense (benefit) in the consolidated statements of income. At December 31, 2019 and 2018, respectively, Bunge had included accrued interest and penalties of $ 12 million and $ 23 million within the related tax liability line in the consolidated balance sheets. A reconciliation of the beginning and ending amount of unrecognized tax benefits follows:

(US$ in millions)	2019				2018				2017
Balance at January 1,	$	390			$	421			$	409
Additions based on tax positions related to the current year	2				41				34
Additions based on tax positions related to prior years	7				21				13
Reductions for tax positions of prior years	( 27		)		( 54		)		( 43		)
Settlements with tax authorities	( 26		)		( 1		)		—
Expiration of statute of limitations	( 11		)		( 19		)		( 32		)
Reductions due to dispositions	( 19		)		—				—
Foreign currency translation	( 5		)		( 19		)		40
Balance at December 31,	$	311			$	390			$	421

Bunge believes that it is reasonably possible that approximately $ 25 million of its unrecognized tax benefits may be recognized by the end of 2021 as a result of a lapse of the statute of limitations or resolution with the tax authorities.

Bunge, through its subsidiaries, files income tax returns in the United States (federal and various states) and non-United States jurisdictions. The table below reflects the tax years for which Bunge is subject to income tax examinations by tax authorities:

	Open Tax Years
North America	2014 - 2019
South America	2013 - 2019
Europe	2006 - 2019
Asia-Pacific	2006 - 2019

As of December 31, 2019, Bunge's Brazilian subsidiaries have received income tax and penalty assessments through 2016 of approximately 5,464 million Brazilian reais (approximately $ 1,356 million ), plus applicable interest on the outstanding amount. Bunge has recorded unrecognized tax benefits related to these assessments of 7 million Brazilian reais (approximately $ 2 million ) as of December 31, 2019.

In addition, as of December 31, 2019, Bunge’s Argentine subsidiary had received income tax assessments relating to 2006 through 2009 of approximately 1,276 million Argentine pesos (approximately $ 21 million ), plus applicable interest on the outstanding amount of approximately 6,270 million Argentine pesos (approximately $ 104 million ).

Management, in consultation with external legal advisors, believes that it is more likely than not that Bunge will prevail on the proposed assessments (with the exception of unrecognized tax benefits discussed above) in Brazil and Argentina and is vigorously defending its position against these assessments.

Bunge made cash income tax payments, net of refunds received, of $ 123 million , $( 1 ) million and $ 89 million during the years ended December 31, 2019, 2018, and 2017 respectively.

On December 22, 2017, H.R. 1, commonly known as the “Tax Cuts and Jobs Act” (the “Tax Act”) was signed into U.S. law.  As a result of the Tax Act and in accordance with SEC Staff Accounting Bulletin 118 (“SAB 118”), Bunge recognized a provisional tax expense of $ 60 million in the fourth quarter of 2017 related to the one-time transition tax (“Transition Tax”), the

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revaluation of deferred tax assets and liabilities, and the accrual of incremental withholding taxes on future repatriation of earnings to the United States.

In the fourth quarter of 2018, Bunge completed its analysis of the impact of the Tax Act in conjunction with filing of its 2017 U.S. income tax return, assessment of additional documentation to determine the Transition Tax, and analysis of U.S. Treasury guidance on the Tax Act. As a result, Bunge recorded a tax benefit of $ 26 million , primarily related to the ability to utilize additional foreign tax credits to offset future repatriation of earnings to the United States.

Bunge has elected to account for any Global Intangible Low-Taxed Income (“GILTI”) inclusion as a current period expense when incurred.

Bunge's various financial instruments include certain components of working capital such as trade accounts receivable and trade accounts payable. Additionally, Bunge uses short and long-term debt to fund operating requirements. Trade accounts receivable, trade accounts payable, and short-term debt are stated at their carrying value, which is a reasonable estimate of fair value. See Note 4 for trade structured finance program, Note 12 for long-term receivables from farmers in Brazil, net and other long-term investments, Note 1 8 for long-term debt, and Note 20 for employee benefit plans. Bunge's financial instruments also include derivative instruments and marketable securities, which are stated at fair value.

For a definition of fair value and the associated fair value levels, refer to Note 1, Nature of Business, Basis of Presentation and Significant Accounting Policies.

The following table sets forth, by level, the Company’s assets and liabilities that were accounted for at fair value on a recurring basis.

	Fair Value Measurements at Reporting Date
	December 31, 2019																December 31, 2018
(US$ in millions)	Level 1				Level 2				Level 3				Total				Level 1				Level 2				Level 3				Total
Assets:
Readily marketable inventories (Note 5)	$	—			$	3,703			$	231			$	3,934			$	—			$	4,286			$	246			$	4,532
Unrealized gain on derivative contracts (1) :
Interest rate	—				45				—				45				—				6				—				6
Foreign exchange	—				331				—				331				—				473				—				473
Commodities	34				481				9				524				128				407				18				553
Freight	10				—				—				10				6				—				6				12
Energy	56				—				—				56				30				—				—				30
Other (2)	47				370				—				417				67				98				—				165
Total assets	$	147			$	4,930			$	240			$	5,317			$	231			$	5,270			$	270			$	5,771
Liabilities:
Trade accounts payable (3)	$	—			$	347			$	31			$	378			$	—			$	394			$	47			$	441
Unrealized loss on derivative contracts (4) :
Interest rate	—				4				—				4				—				42				—				42
Foreign exchange	—				257				—				257				—				499				—				499
Commodities	49				388				31				468				152				446				23				621
Freight	10				—				—				10				13				—				6				19
Energy	26				—				2				28				43				—				1				44
Equity	—				—				—				—				—				—				—				—
Total liabilities	$	85			$	996			$	64			$	1,145			$	208			$	1,381			$	77			$	1,666

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(1)	Unrealized gains on derivative contracts are generally included in Other current assets. There were $ 39 million and $ 3 million included in Other non-current assets at December 31, 2019 and December 31, 2018 , respectively.

(2)	Other includes the fair values of marketable securities and investments in Other current assets and Other non-current assets.

(3)	These payables are hybrid financial instruments for which Bunge has elected the fair value option.

(4)	Unrealized losses on derivative contracts are generally included in Other current liabilities. There were $ 1 million and $ 33 million included in Other non-current liabilities at December 31, 2019 and December 31, 2018 , respectively.

Readily marketable inventories —RMI reported at fair value are valued based on commodity futures exchange quotations, broker or dealer quotations, or market transactions in either listed or OTC markets with appropriate adjustments for differences in local markets where the Company's inventories are located. In such cases, the inventory is classified within Level 2. Certain inventories may utilize significant unobservable data related to local market adjustments to determine fair value. In such cases, the inventory is classified as Level 3.

If the Company used different methods or factors to determine fair values, amounts reported as unrealized gains and losses on derivative contracts and RMI at fair value in the consolidated balance sheets and consolidated statements of income could differ. Additionally, if market conditions change subsequent to the reporting date, amounts reported in future periods as unrealized gains and losses on derivative contracts and RMI at fair value in the consolidated balance sheets and consolidated statements of income could differ.

Derivatives —The majority of exchange traded futures and options contracts and exchange cleared contracts are valued based on unadjusted quoted prices in active markets and are classified within Level 1. The majority of the Company’s exchange-traded agricultural commodity futures are cash-settled on a daily basis and, therefore, are not included in these tables. The Company's forward commodity purchase and sale contracts are classified as derivatives along with other OTC derivative instruments relating primarily to freight, energy, foreign exchange and interest rates, and are classified within Level 2 or Level 3 as described below. The Company estimates fair values based on exchange quoted prices, adjusted as appropriate for differences in local markets. These differences are generally valued using inputs from broker or dealer quotations, or market transactions in either the listed or OTC markets. In such cases, these derivative contracts are classified within Level 2.

OTC derivative contracts include swaps, options and structured transactions that are generally fair valued using quantitative models that require the use of multiple market inputs including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets which are not highly active, other observable inputs relevant to the asset or liability, and market inputs corroborated by correlation or other means. These valuation models include inputs such as interest rates, prices and indices to generate continuous yield or pricing curves and volatility factors. Where observable inputs are available for substantially the full term of the asset or liability, the instrument is categorized in Level 2. Certain OTC derivatives trade in less active markets with less availability of pricing information and certain structured transactions can require internally developed model inputs that might not be observable in or corroborated by the market.

Marketable securities and investments are comprised of government treasury securities, corporate debt securities and other investments. Bunge analyzes how the prices are derived and determines whether the prices are liquid or less liquid tradable prices. Marketable securities and investments with liquid prices are valued using prices from publicly available sources and classified as level 1. Marketable securities and investments with less-liquid prices are valued using third-party quotes and classified as level 2.

Level 3 Measurements

The following relates to Level 3 measurements. An instrument may transfer into or out of Level 3 due to inputs becoming either observable or unobservable.

Level 3 Readily marketable inventories and other —The significant unobservable inputs resulting in Level 3 classification for RMI, physically settled forward purchase and sale contracts, and trade accounts payable, relate to certain management estimations regarding costs of transportation and other local market or location-related adjustments, primarily freight related adjustments in the interior of Brazil and the lack of market corroborated information in Canada. In both situations, the Company uses proprietary information such as purchase and sale contracts and contracted prices to value freight, premiums and discounts in its contracts. Movements in the price of these unobservable inputs alone would not have a material effect on the Company's financial statements as these contracts do not typically exceed one future crop cycle.

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Level 3 Derivatives —Level 3 derivative instruments utilize both market observable and unobservable inputs within the fair value measurements. These inputs include commodity prices, price volatility, interest rates, volumes and locations.

The tables below present reconciliations for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the years ended December 31, 2019 and 2018 . These instruments were valued using pricing models that management believes reflect the assumptions that would be used by a marketplace participant.

	Year Ended December 31, 2019
(US$ in millions)	Readily Marketable Inventories				Derivatives, Net				Trade Accounts Payable				Total
Balance, January 1, 2019	$	246			$	( 6	)		$	( 47	)		$	193
Total gains and losses (realized/unrealized) included in Cost of goods sold (1)	310				( 24		)		23				309
Purchases	2,002				—				( 458		)		1,544
Sales	( 2,935		)		—				—				( 2,935		)
Issuances	—				( 1		)		—				( 1		)
Settlements	—				7				462				469
Transfers into Level 3	884				—				( 32		)		852
Transfers out of Level 3	( 276		)		—				21				( 255		)
Balance, December 31, 2019	$	231			$	( 24	)		$	( 31	)		$	176

1)	Readily marketable inventories, derivatives, net and trade accounts payable, include gains/(losses) of $ 214 million , $( 25 ) million and $ 0 million , respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at December 31, 2019 .

	Year Ended December 31, 2018
(US$ in millions)	Readily Marketable Inventories				Derivatives, Net				Trade Accounts Payable				Total
Balance, January 1, 2018	$	365			$	2			$	( 116	)		$	251
Total gains and losses (realized/unrealized) included in Cost of goods sold (1)	144				( 11		)		26				159
Purchases	1,770				12				( 294		)		1,488
Sales	( 2,585		)		—				—				( 2,585		)
Issuances	—				( 11		)		—				( 11		)
Settlements	—				13				434				447
Transfers into Level 3	774				( 10		)		( 79		)		685
Transfers out of Level 3	( 222		)		( 1		)		( 18		)		( 241		)
Balance, December 31, 2018	$	246			$	( 6	)		$	( 47	)		$	193

1)	Readily marketable inventories, derivatives, net and trade accounts payable, includes gains/(losses) of $ 72 million , $( 24 ) million and $ 0 million , respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at December 31, 2018 .

The Company uses derivative instruments to manage several market risks, such as interest rate, foreign currency rate, and commodity risk. Some of those hedges the Company enters into qualify for hedge accounting in the financial statements ("Hedge Accounting Derivatives") and some, while intended as economic hedges, do not qualify or are not designated for

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hedge accounting ("Economic Hedge Derivatives"). As these derivatives impact the financial statements in different ways, they are discussed separately below.

Hedge Accounting Derivatives - The Company uses derivatives in qualifying hedge accounting relationships to manage certain of its interest rate, foreign currency, and commodity risks. In executing these hedge strategies, the Company primarily relies on the shortcut and critical terms match methods in designing its hedge accounting strategy, which results in little to no net earnings impact for these hedge relationships. The Company monitors these relationships on a quarterly basis and performs a quantitative analysis to validate the assertion that the hedges are highly effective if there are changes to the hedged item or hedging derivative.

Fair value hedges - These derivatives are used to hedge the effect of interest rate and currency exchange rate changes on certain long-term debt. Under fair value hedge accounting, the derivative is measured at fair value and the carrying value of hedged debt is adjusted for the change in value related to the exposure being hedged, with both adjustments offset to earnings. In other words, the earnings effect of an increase in the fair value of the derivative will be substantially offset by the earnings effect of the increase in the carrying value of the hedged debt. The net impact of fair value hedge accounting for interest rate swaps is recognized in Interest expense. For cross currency swaps the changes in currency risk on the derivative are recognized in Foreign exchange gains (losses), and the changes in interest rate risk are recognized in Interest expense. Changes in basis risk are held in Accumulated other comprehensive income (loss) until realized through the coupon.

Cash flow hedges of currency risk - The Company manages currency risk on certain forecasted purchases, sales, and selling, general and administrative expenses with currency forwards. The change in the value of the forward is classified in Accumulated other comprehensive income (loss) until the transaction affects earnings, at which time the change in value of the currency forward is reclassified to Net sales, Cost of goods sold or Selling, general and administrative expenses. These hedges mature at various times through December 2020 . Of the amount currently in Accumulated other comprehensive income (loss), $ 5 million is expected to be reclassified to earnings in the next twelve months.

Cash flow hedges of commodity risk - The Company manages commodity price risk on certain forecasted purchases and sales with commodity futures. The change in the value of the future is classified in Accumulated other comprehensive income (loss) until the transaction affects earnings, at which time the change in value of the commodity future is reclassified to Net sales or Cost of goods sold. At December 31, 2019, the Company had no open cash flow hedges of commodity risk.

Net investment hedges - The Company hedges the currency risk of certain of its foreign subsidiaries with currency forwards and intercompany loans for which the currency risk is remeasured through Accumulated other comprehensive income (loss). For currency forwards, the forward method is used. The change in the value of the forward is classified in Accumulated other comprehensive income (loss) until the transaction affects earnings.

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The table below provides information about the balance sheet values of hedged items and the notional amount of derivatives used in hedging strategies. The notional amount of the derivative is the number of units of the underlying (for example, the notional principal amount of the debt in an interest rate swap). 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)		December 31, 2019			December 31, 2018			Unit of Measure
Hedging instrument type:
Fair value hedges of interest rate risk
	Carrying value of hedged debt	$	2,279		$	2,229		$ Notional
	Cumulative adjustment to long-term debt from application of hedge accounting	$	37		$	( 29	)	$ Notional
	Interest rate swap - notional amount	$	2,249		$	2,266		$ Notional
Fair value hedges of currency risk
	Carrying value of hedged debt	$	281		$	312		$ Notional
	Cross currency swap - notional amount	$	281		$	313		$ Notional
Cash flow hedges of currency risk
	Foreign currency forward - notional amount	$	99		$	50		$ Notional
	Foreign currency option - notional amount	$	75		$	—		$ Notional
Net investment hedges
	Foreign currency forward - notional amount	$	928		$	1,888		$ Notional
	Carrying value of non-derivative hedging instrument	$	895		$	912		$ Notional

Economic Hedge Derivatives - In addition to using derivatives in qualifying hedge relationships, the Company enters into derivatives to economically hedge its exposure to a variety of market risks it incurs in the normal course of operations.

Interest rate derivatives are used to hedge exposures to the Company's financial instrument portfolios and debt issuances. The impact of changes in fair value of these instruments is primarily presented in Interest expense.

Currency derivatives are used to hedge the balance sheet and commercial exposures that arise from the Company's global operations. The impact of changes in fair value of these instruments is presented in Cost of goods sold when hedging commercial exposures and Foreign exchange gains (losses) when hedging monetary exposures.

Agricultural commodity derivatives are used primarily to manage the Company's inventory and forward purchase and sales contracts. Contracts to purchase agricultural commodities generally relate to current or future crop years for delivery periods quoted by regulated commodity exchanges. Contracts for the sale of agricultural commodities generally do not extend beyond one future crop cycle. The impact of changes in fair value of these instruments is presented in Cost of goods sold.

The Company uses derivative instruments referred to as forward freight agreements ("FFA") and FFA options to hedge portions of its current and anticipated ocean freight costs. The impact of changes in fair value of these instruments is presented in Cost of goods sold.

The Company uses energy derivative instruments to manage its exposure to volatility in energy costs. Hedges may be entered into for natural gas, electricity, coal and fuel oil, including bunker fuel. The impact of changes in fair value of these instruments is presented in Cost of goods sold.

The Company may also enter into other derivatives, including credit default swaps and equity derivatives to manage exposure to credit risk and broader macroeconomic risks, respectively. The impact of changes in fair value of these instruments is presented in Cost of goods sold.

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The table below summarizes the volume of economic derivatives as of December 31, 2019 and December 31, 2018 . For those contracts traded bilaterally through the over-the-counter markets (e.g., forwards, forward rate agreements ("FRA") and swaps), the gross position is provided. For exchange traded (e.g., futures, FFAs and options) and cleared positions (e.g., energy swaps), the net position is provided.

	December 31,						December 31,
	2019						2018						Unit of Measure
	Long			(Short)			Long			(Short)
Interest rate
Swaps	$	4,062		$	( 39	)	$	3,349		$	( 111	)	$ Notional
FRAs	$	213		$	( 418	)	$	139		$	( 149	)	$ Notional
Currency
Forwards	$	7,164		$	( 9,983	)	$	13,713		$	( 13,701	)	$ Notional
Swaps	$	191		$	( 170	)	$	127		$	( 535	)	$ Notional
Futures	$	—		$	( 16	)	$	—		$	( 16	)	$ Notional
Options	$	132		$	( 157	)	$	869		$	( 919	)	Delta
Agricultural commodities
Forwards	27,914,141			( 25,321,595		)	25,523,840			( 29,314,930		)	Metric Tons
Swaps	—			( 1,114,704		)	—			( 9,908,728		)	Metric Tons
Futures	—			( 1,960,051		)	4,136,525			—			Metric Tons
Options	—			( 115,232		)	718,709			—			Metric Tons
Ocean freight
FFA	—			( 133		)	—			( 90		)	Hire Days
FFA options	42			—			302			—			Hire Days
Natural gas
Swaps	215,640			—			1,205,687			—			MMBtus
Futures	2,802,500			—			2,268,190			—			MMBtus
Energy - other
Forwards	5,534,290			—			5,536,290			—			Metric Tons
Futures	—			—			—			( 29,367		)	Metric Tons
Swaps	239,836			—			188,800			—			Metric Tons
Other
Swaps and futures	$	50		$	( 14	)	$	52		$	—		$ Notional

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The Effect of Derivative Instruments and Hedge Accounting on the Consolidated Statements of Income

The tables below summarize the net effect of derivative instruments and hedge accounting on the consolidated statements of income for the years ended December 31, 2019 , 2018 and 2017 .

		Gain (Loss) Recognized in Income on Derivative Instruments
		Year Ended December 31,
(US$ in millions)		2019			2018			2017
Income statement classification	Type of derivative
Net sales
Hedge accounting	Foreign currency	$	( 3	)	$	( 2	)	$	—
Cost of goods sold
Hedge accounting	Foreign currency	$	—		$	1		$	—
	Commodities	20			—			—
Economic hedges	Foreign currency	172			( 220		)	( 1		)
	Commodities	( 50		)	506			676
	Other (1)	46			( 25		)	9
Total Cost of goods sold		$	188		$	262		$	684
Interest expense
Hedge accounting	Interest rate	$	( 12	)	$	( 6	)	$	13
Economic hedges	Interest rate	( 10		)	( 1		)	—
Total Interest expense		$	( 22	)	$	( 7	)	$	13
Foreign exchange gains (losses)
Hedge accounting	Foreign currency	$	11		$	( 10	)	$	—
Economic hedges	Foreign currency	33			34			22
Total Foreign exchange gains (losses)		$	44		$	24		$	22
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		$	15		$	( 2	)	$	14
Gains and losses on derivatives used as cash flow hedges of commodity price risk included in other comprehensive income (loss) during the period		$	20		$	—		$	—
Gains and losses on derivatives used as net investment hedges included in other comprehensive income (loss) during the period		$	( 47	)	$	48		$	( 8	)
Foreign currency gains and losses on intercompany loans used as net investment hedges included in other comprehensive income (loss) during the period		$	17		$	52		$	( 111	)
Amounts released from Accumulated other comprehensive income (loss) during the period
Cash flow hedge of foreign currency risk		$	( 5	)	$	—		$	37
Cash flow hedge of commodity risk		$	( 20	)	$	—		$	—

⁽¹⁾ Other includes the results from freight, energy and other derivatives.

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Bunge's short-term borrowings are typically sourced from various banking institutions and the U.S. commercial paper market. Bunge also borrows from time to time in local currencies in various foreign jurisdictions. Interest expense includes facility commitment fees, amortization of deferred financing costs, and charges on certain lending transactions. The weighted-average interest rate on short-term borrowings at December 31, 2019 and 2018 was 13.83 % and 6.98 % , respectively.

	December 31,
(US$ in millions)	2019				2018
Lines of credit:
Unsecured, variable interest rates from 2.63% to 60.00%	$	771			$	750
Total short-term debt (1)	$	771			$	750

(1)	Includes $ 348 million and $ 136 million of local currency borrowings in certain Central and Eastern European, South American and Asia-Pacific countries at a weighted average interest rate of 27.16 % and 23.61 % as of December 31, 2019 and December 31, 2018 , respectively.

Bunge's commercial paper program is supported by committed back-up bank credit lines (the ‘‘Liquidity Facility’’) equal to the amount of the commercial paper program provided by lending institutions that are required to be rated at least A-1 by Standard & Poor’s and P-1 by Moody’s Investor Services. The cost of borrowing under the Liquidity Facility would typically be higher than the cost of issuance under our commercial paper program. At December 31, 2019, no borrowings were outstanding under the commercial paper program and no borrowings were outstanding under the Liquidity Facility. The Liquidity Facility is our only revolving credit facility that requires lenders to maintain minimum credit ratings.

In addition to the committed facilities discussed above, from time-to-time, Bunge Limited and/or its financing subsidiaries enter into uncommitted bilateral short-term credit lines as necessary based on its financing requirements. At December 31, 2019 and 2018 , there were no borrowings outstanding under these bilateral short-term credit lines. Loans under such credit lines are non-callable by the respective lenders. In addition, Bunge's operating companies had $ 771 million in short-term borrowings outstanding from local bank lines of credit at December 31, 2019 to support working capital requirements.

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Long-term debt obligations are summarized below.

	December 31,
(US$ in millions)	2019				2018
Revolving credit facility expiring 2022 (1)	$	—			$	500
Term loan due 2019 - fixed Yen interest rate of 0.96% (Tranche B)	—				54
Term loan due 2024 - three-month Yen LIBOR plus 0.75% (Tranche A) (2)	281				258
Term loan due 2024 - three-month LIBOR plus 1.30% (Tranche B) (2)	89				85
3.50% Senior Notes due 2020	499				498
3.00% Senior Notes due 2022	398				397
1.85% Senior Notes due 2023—Euro	899				916
4.35% Senior Notes due 2024	596				595
3.25% Senior Notes due 2026	696				695
3.75% Senior Notes due 2027	595				594
Other	170				30
Subtotal	4,223				4,622
Less: Current portion of long-term debt	( 507		)		( 419		)
Total long-term debt (3)	$	3,716			$	4,203

(1) On December 16, 2019, Bunge extended the existing three -year revolving credit facility totaling $ 1.75 billion , scheduled to mature on December 12, 2020, for two additional years, to December 12, 2022.

(2)	On July 1, 2019, Bunge refinanced its unsecured Japanese yen 28.5 billion and $ 85 million Term Loan Agreement, dated as of December 12, 2014, which extends the maturity date to July 1, 2024.

(3)	Includes secured debt of $ 15 million and $ 17 million at December 31, 2019 and December 31, 2018 , respectively.

The fair values of long-term debt, including current portion are calculated based on interest rates currently available on comparable maturities to companies with credit standing similar to that of Bunge. The carrying amounts and fair values of long-term debt are as follows:

		December 31, 2019									December 31, 2018
(US$ in millions)		Carrying Value				Fair Value (Level 2)					Carrying Value				Fair Value (Level 2)
Long-term debt, including current portion		$	4,223			$	4,319				$	4,622			$	4,584

On December 16, 2019, Bunge entered into an amendment and restatement agreement (the “Amendment and Restatement Agreement”) which amends and extends its unsecured $ 1.75 billion revolving credit facility entered into on December 12, 2017 (as amended by the Amendment and Restatement Agreement, the “Revolving Credit Facility”), adding a sustainability-linked mechanism to the facility. Through the sustainability-linked mechanism, the interest rate under the Revolving Credit Facility is tied to five sustainability performance targets that highlight and measure Bunge’s continued advancement of its sustainability initiatives across the following three areas: 1) reducing greenhouse gas emissions by improving industrial efficiency; 2) increasing traceability for main agricultural commodities; and 3) supporting increasing levels of adoption of sustainable practices across the wider soybean and palm supply chain. Bunge may from time to time, with the consent of the agent, request one or more of the existing lenders or new lenders to increase the total commitments in an amount not to exceed $ 250 million pursuant to an accordion provision set forth in the Revolving Credit Facility. Pursuant to the Amendment and Restatement Agreement, the Revolving Credit Facility will mature on December 12, 2022. Borrowings under the Revolving Credit Facility will bear interest at LIBOR plus a margin, which will vary from 0.30 % to 1.30 % , based on the senior long-term unsecured debt ratings provided by Moody’s Investors Services Inc. and S&P Global Ratings. Amounts under

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the Revolving Credit Facility that remain undrawn are subject to a commitment fee payable quarterly in arrears at a rate of 35 % of the margin specified above, which will vary based on the rating level at each such quarterly payment date. Bunge also will pay a fee that will vary from 0.10 % to 0.40 % based on its utilization of the Revolving Credit Facility. There were no borrowings outstanding at December 31, 2019, under the Revolving Credit Facility.

In November 2019, the $ 700 million credit facility maturing in May 2023 was converted into a term loan and then transferred to the recently formed joint venture, BP Bunge Bioenergia, on a non-recourse basis.

At December 31, 2019 , Bunge had $ 4,315 million of unused and available borrowing capacity under its committed long-term credit facilities with a number of lending institutions.

Certain property, plant and equipment and investments in consolidated subsidiaries having a net carrying value of approximately $ 45 million at December 31, 2019 have been mortgaged or otherwise collateralized against long-term debt of $ 16 million at December 31, 2019 .

Principal Maturities — Principal maturities of long-term debt at December 31, 2019 are as follows:

(US$ in millions)
2020	$	512
2021	13
2022	505
2023	903
2024	968
Thereafter	1,303
Total (1)	$	4,204

(1)	Excludes components of long-term debt attributable to fair value hedge accounting of $ 37 million and deferred financing fees and unamortized premiums of $ 18 million .

Bunge's credit facilities and certain senior notes require it to comply with specified financial covenants related to minimum net worth, minimum current ratio, a maximum debt to capitalization ratio, and limitations on secured indebtedness. Bunge was in compliance with these covenants at December 31, 2019 .

During the years ended December 31, 2019 , 2018 and 2017 , Bunge paid interest, net of interest capitalized, of $ 327 million , $ 306 million and $ 236 million , respectively.

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 (collectively, the "Purchasers") that provides for funding of up to $ 800 million against receivables sold into the Program. The Program is designed to enhance Bunge's financial flexibility by providing an additional source of liquidity for its operations. In connection with the Program, certain of Bunge's U.S. and non-U.S. subsidiaries that originate trade receivables may sell eligible receivables in their entirety on a revolving basis to a consolidated bankruptcy remote special purpose entity, Bunge Securitization B.V. ("BSBV") formed under the laws of the Netherlands. BSBV in turn sells such purchased trade receivables to the administrative agent (acting on behalf of the Purchasers) pursuant to a receivables transfer agreement. In connection with these sales of accounts receivable, Bunge receives a portion of the proceeds up front and an additional amount upon the collection of the underlying receivables, which is expected to be generally between 10 % and 15 % of the aggregate amount of receivables sold through the Program.

Koninklijke Bunge B.V., a wholly owned subsidiary of Bunge, acts as master servicer, responsible for servicing and collecting the accounts receivable for the Program. The Program terminates on May 26, 2021 . The trade receivables sold under the program are subject to specified eligibility criteria, including eligible currencies, and country and obligor concentration

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limits. On February 19, 2019, Bunge exercised a portion of the $ 300 million accordion feature under this program to increase the aggregate size of the facility by $ 100 million to an aggregate of $ 800 million .

	December 31,
(US$ in millions)	2019				2018
Receivables sold which were derecognized from Bunge's balance sheet	$	801			$	826
Deferred purchase price included in Other current assets	$	105			$	128

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.

	Years Ended December 31,
(US$ in millions)	2019				2018				2017
Gross receivables sold	$	10,120			$	9,803			$	10,022
Proceeds received in cash related to transfer of receivables	$	9,868			$	9,484			$	9,734
Cash collections from customers on receivables previously sold	$	8,434			$	9,173			$	9,659
Discounts related to gross receivables sold included in SG&A	$	15			$	14			$	9

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.

Bunge's risk of loss following the sale of the trade receivables is limited to the deferred purchase price (the "DPP"), included in Other current assets in the consolidated balance sheets (see Note 6). The DPP will be repaid in cash as receivables are collected, generally within 30 days . Delinquencies and credit losses on trade receivables sold under the Program during the years ended December 31, 2019 , 2018 and 2017 were insignificant.

Certain United States, Canadian, European, Asian and Brazilian-based subsidiaries of Bunge sponsor defined benefit pension plans covering substantially all employees of the subsidiaries. The plans provide benefits primarily based on participant salaries and lengths of service. The funding policies for Bunge's defined benefit pension plans are determined in accordance with statutory funding requirements. The most significant defined benefit plan is in the United States.

Certain United States and Brazilian-based subsidiaries of Bunge have benefit plans to provide postretirement healthcare benefits to eligible retired employees of those subsidiaries. The plans require minimum retiree contributions and define the maximum amount the subsidiaries will be obligated to pay under the plans. Bunge's policy is to fund these costs as they become payable.

Plan amendments and pension liability adjustment - In 2018 , Bunge's Swiss defined benefit pension plan changed its local pension provider, resulting in a change to its conversion rate. This plan amendment resulted in a $ 13 million increase in benefit obligation as of the year ended December 31, 2018 .

On September 19, 2017, Bunge approved changes to certain U.S. defined benefit pension plans. These changes freeze the plans for future benefit accruals effective January 1, 2023, and these plans are closed for participation for employees hired on or after January 1, 2018. As a result, Bunge remeasured the projected benefit obligations for these plans as of September 30, 2017 and recognized a $ 31 million pension curtailment gain and $ 18 million remeasurement loss, recorded in Other comprehensive income, at September 30, 2017.

In addition, in 2017, the Company offered a voluntary early retirement program to qualifying U.S. based salaried employees. The employees that accepted the offer received an enhanced retirement benefit in the defined benefit pension plans. The Company incurred $ 10 million of additional defined benefit expenses relating to the program as of December 31, 2017, which are reflected in the tables below.

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Cost of Benefit Plans - Service cost is recognized in a period determined as the actuarial present value of benefits attributed by the pension benefit formula to services rendered by employees during that period. Interest cost is the amount recognized in a period determined as the increase in the projected benefit obligation due to the passage of time. The expected return on plan assets is determined based on the expected long-term rate of return on plan assets and the market-related value of plan assets. Amortization of net loss represents the recognition in net periodic cost over several periods of amounts previously recognized in Other comprehensive income (loss). Service cost is included in the same income statement line item as other compensation costs arising from services rendered during the period, while the other components of net periodic benefit pension cost are presented separately in Other income (expense), net.

The components of net periodic benefit costs for defined benefit pension plans and postretirement benefit plans are as follows:

	Pension Benefits December 31,												Postretirement Benefits December 31,
(US$ in millions)	2019				2018				2017				2019				2018				2017
Service cost	$	38			$	39			$	33			$	—			$	—			$	—
Interest cost	43				40				36				5				5				8
Expected return on plan assets	( 47		)		( 57		)		( 46		)		—				—				—
Amortization of prior service cost	2				1				—				—				—				—
Amortization of net loss	9				9				10				—				—				—
Curtailment (gain) loss	2				( 2		)		—				—				—				—
Settlement loss recognized	—				4				—				—				—				—
Special termination benefit	1				—				9				—				—				—
Net periodic benefit costs	$	48			$	34			$	42			$	5			$	5			$	8

Assumptions used in Pension Calculations - At December 31, 2019 , a 7.2 % annual rate of increase in the per capita cost of covered healthcare benefits was assumed for 2019 postretirement benefit plan measurement purposes, decreasing to 6.9 % by 2038, and remaining at that level thereafter. At December 31, 2018 , a 7.7 % annual rate of increase in the per capita cost of covered healthcare benefits was assumed for 2018 postretirement benefit plan measurement purposes, decreasing to 7.4 % by 2038, and remaining at that level thereafter.

A one-percentage point change in assumed healthcare cost trend rates would have the following effects:

(US$ in millions)	One-percentage point increase				One-percentage point decrease
Effect on total service and interest cost	$	—			$	—
Effect on postretirement benefit obligation	$	5			$	( 4	)

The weighted-average actuarial assumptions used in determining the benefit obligation under the defined benefit pension and postretirement benefit plans are as follows:

	Pension Benefits December 31,						Postretirement Benefits December 31,
	2019			2018			2019			2018
Discount rate	2.8	%		3.7	%		6.1	%		8.3	%
Increase in future compensation levels	3.2	%		3.2	%		N/A			N/A

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The weighted-average actuarial assumptions used in determining the net periodic benefit cost under the defined benefit pension and postretirement benefit plans are as follows:

	Pension Benefits December 31,									Postretirement Benefits December 31,
	2019			2018			2017			2019			2018			2017
Discount rate	3.7	%		3.4	%		4.0	%		8.3	%		9.0	%		10.8	%
Expected long-term rate of return on assets	5.1	%		6.0	%		6.2	%		N/A			N/A			N/A
Increase in future compensation levels	3.2	%		3.2	%		3.2	%		N/A			N/A			N/A

The sponsoring subsidiaries select the expected long-term rate of return on assets in consultation with their investment advisors and actuaries. These rates are intended to reflect the average rates of earnings expected on the funds invested or to be invested to provide required plan benefits. The plans are assumed to continue in effect as long as assets are expected to be invested.

In estimating the expected long-term rate of return on assets, appropriate consideration is given to historical performance for the major asset classes held, or anticipated to be held, by the applicable plan trusts and to current forecasts of future rates of return for those asset classes. Cash flows and expenses are taken into consideration to the extent that the expected returns would be affected by them. As assets are generally held in qualified trusts, anticipated returns are not reduced for taxes.

Plan Transfers In and Out - As a result of the March 1, 2018 Loders acquisition, there was a transfer into Bunge's defined benefit pension plan resulting in a $ 211 million increase in benefit obligation and $ 181 million increase in the fair value of plan assets during the year ended December 31, 2018 . There were no significant transfers into or out of Bunge's employee benefit plans during the year ended December 31, 2019 .

For the year ended December 31, 2018 , there were settlements to Bunge's Swiss defined benefit pension plan as a result of the GCP, resulting in a $ 28 million decrease in benefit obligation, and a change to a defined contribution plan, resulting in a $ 27 million decrease in benefit obligation. There were no significant settlements in Bunge's employee benefit plans during the year ended December 31, 2019 .

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Pension Benefit Obligations and Funded Status - The following table sets forth in aggregate the changes in the defined benefit pension and postretirement benefit plans' benefit obligations, assets and funded status at December 31, 2019 and 2018 . A measurement date of December 31 was used for all plans.

	Pension Benefits December 31,								Postretirement Benefits December 31,
(US$ in millions)	2019				2018				2019				2018
Change in benefit obligations:
Benefit obligation at the beginning of year	$	1,192			$	1,073			$	59			$	67
Service cost	38				39				—				—
Interest cost	43				40				5				5
Plan amendments	( 3		)		16				—				—
Plan curtailments	( 5		)		( 2		)		—				—
Special termination benefits	1				—				—				—
Actuarial (gain) loss, net	172				( 84		)		1				1
Employee contributions	3				3				1				1
Net transfers in (out)	—				213				—				—
Plan settlements	( 2		)		( 55		)		—				—
Benefits paid	( 49		)		( 40		)		( 8		)		( 7		)
Expenses paid	( 2		)		( 3		)		—				—
Impact of foreign exchange rates	—				( 8		)		( 2		)		( 8		)
Benefit obligation at the end of year	$	1,388			$	1,192			$	56			$	59
Change in plan assets:
Fair value of plan assets at the beginning of year	$	957			$	896			$	—			$	—
Actual return on plan assets	181				( 36		)		—				—
Employer contributions	25				18				7				6
Employee contributions	3				3				1				1
Net transfers in (out)	—				181				—				—
Plan settlements	( 2		)		( 55		)		—				—
Benefits paid	( 49		)		( 40		)		( 8		)		( 7		)
Expenses paid	( 2		)		( 3		)		—				—
Impact of foreign exchange rates	1				( 7		)		—				—
Fair value of plan assets at the end of year	$	1,114			$	957			$	—			$	—
Funded (unfunded) status and net amounts recognized:
Plan assets (less than) in excess of benefit obligation	$	( 274	)		$	( 235	)		$	( 56	)		$	( 59	)
Net (liability) asset recognized in the balance sheet	$	( 274	)		$	( 235	)		$	( 56	)		$	( 59	)
Amounts recognized in the balance sheet consist of:
Non-current assets	$	14			$	11			$	—			$	—
Current liabilities	( 6		)		( 6		)		( 5		)		( 6		)
Non-current liabilities	( 282		)		( 240		)		( 51		)		( 53		)
Net liability recognized	$	( 274	)		$	( 235	)		$	( 56	)		$	( 59	)

Included in Accumulated other comprehensive income (loss) for pension benefits at December 31, 2019 are the following amounts that have not yet been recognized in net periodic benefit costs: unrecognized prior service loss of $ 4 million ( $ 3 million , net of tax) and unrecognized actuarial loss of $ 213 million ( $ 157 million , net of tax).

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Included in Accumulated other comprehensive income (loss) for postretirement healthcare benefits at December 31, 2019 is the following amount that has not yet been recognized in net periodic benefit costs: unrecognized actuarial loss of $ 4 million ( $ 3 million , net of tax).

Bunge has aggregated certain defined benefit pension plans for which the projected benefit obligations exceeds the fair value of related plan assets with pension plans for which the fair value of plan assets exceeds related projected benefit obligations. The following table provides aggregated information about pension plants with a projected benefit obligation in excess of plan assets:

	Pension Benefits December 31,
(US$ in millions)	2019				2018
Projected benefit obligation	$	1,252			$	1,073
Fair value of plan assets	$	965			$	827

The accumulated benefit obligation for the defined pension benefit plans was $ 1,304 million and $ 1,122 million at December 31, 2019 and 2018, respectively. The following table summarizes information related to aggregated defined benefit pension plans with an accumulated benefit obligation in excess of plan assets:

	Pension Benefits December 31,
(US$ in millions)	2019				2018
Projected benefit obligation	$	1,252			$	978
Accumulated benefit obligation	$	1,171			$	938
Fair value of plan assets	$	964			$	758

Pension Benefit Plan Assets —The objectives of the plans' trust funds are to sufficiently diversify plan assets to maintain a reasonable level of risk without imprudently sacrificing returns, with a target asset allocation of approximately 60 % fixed income securities and approximately 40 % equities. Bunge implements its investment strategy through a combination of indexed mutual funds and a proprietary portfolio of fixed income securities. Bunge's policy is not to invest plan assets in Bunge Limited shares. Plan investments are stated at fair value. For a further definition of fair value and the associated fair value levels, refer to Note 15 .

The fair values of Bunge's defined benefit pension plans' assets at the measurement date, by category, are as follows:

	December 31, 2019
(US$ in millions)	Total				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Cash	$	12			$	12			$	—			$	—
Equities:
Mutual funds (1)	449				449				—				—
Fixed income securities:
Mutual funds (2)	581				547				34				—
Others (3)	72				29				31				12
Total	$	1,114			$	1,037			$	65			$	12

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	December 31, 2018
(US$ in millions)	Total				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Cash	$	16			$	16			$	—			$	—
Equities:
Mutual funds (1)	363				362				1				—
Fixed income securities:
Mutual funds (2)	536				498				38				—
Others (3)	42				6				20				16
Total	$	957			$	882			$	59			$	16

(1)	This category represents a portfolio of equity investments comprised of equity index funds that invest in U.S. equities and non-U.S. equities. The U.S. equities are comprised of investments focusing on large, mid and small cap companies and non-U.S. equities are comprised of international, emerging markets, and real estate investment trusts.

(2)	This category represents a portfolio of fixed income investments in mutual funds comprised of investment grade U.S. government bonds and notes, foreign government bonds, and corporate bonds from diverse industries.

(3)	This category represents a portfolio consisting of a mixture of hedge funds, bonds, real estate and insurance contracts.

Bunge expects to contribute $ 19 million and $ 5 million to its defined benefit pension and postretirement benefit plans, respectively, in 2020 .

The following benefit payments, which reflect future service as appropriate, are expected to be paid related to defined benefit pension and postretirement benefit plans:

(US$ in millions)	Pension Benefit Payments				Postretirement Benefit Payments
2020	$	62			$	5
2021	52				5
2022	53				5
2023	55				5
2024	58				5
2025 and onwards	309				23

Employee Defined Contribution Plans —Bunge also makes contributions to qualified defined contribution plans for eligible employees. Contributions to these plans amounted to $ 16 million , $ 10 million and $ 11 million during the years ended December 31, 2019 , 2018 and 2017 , respectively.

Bunge annually purchases agricultural commodity products from certain of its unconsolidated investees and other related parties. Such related party purchases comprised between 2 % and 5 % of total Cost of goods sold in each of the years ended December 31, 2019, 2018 and 2017. Bunge also sells agricultural commodity products to certain of its unconsolidated investees and other related parties. Such related party sales comprised between 1 % and 2 % of total Net sales in each of the years ended December 31, 2019, 2018 and 2017.

In addition, Bunge receives services from and provides services to its unconsolidated investees, including tolling, port handling, administrative support, and other services. During the years ended December 31, 2019, 2018 and 2017, such services were not material to our consolidated results.

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At December 31, 2019 and 2018, receivables and payables related to the above related party transactions, and included in Trade accounts receivable and Trade accounts payable, respectively, in the consolidated balance sheets were not material.

Bunge is party to claims and lawsuits, primarily non-income tax and labor claims in South America, arising in the normal course of business. Bunge is also involved from time to time in various contract, antitrust, environmental litigation and remediation and other litigation, claims, government investigations and legal proceedings. The ability to predict the ultimate outcome of such matters involves judgments, estimates and inherent uncertainties. Bunge records liabilities related to legal matters when the exposure item becomes probable and can be reasonably estimated. Bunge management does not expect these matters to have a material adverse effect on Bunge’s financial condition, results of operations or liquidity. However, these matters are subject to inherent uncertainties and there exists the remote possibility that a liability arising from these matters could have a material adverse impact in the period the uncertainties are resolved should the liability substantially exceed the amount of provisions included in the consolidated balance sheets. Included in Other non-current liabilities at December 31, 2019 and 2018 are the following amounts related to these matters:

	December 31,
(US$ in millions)	2019				2018
Non-income tax claims	$	23			$	94
Labor claims	50				78
Civil and other claims	88				95
Total	$	161			$	267

Brazil Indirect Taxes

Non-income tax claims - These tax claims relate to claims against Bunge’s Brazilian subsidiaries, primarily value-added tax claims (ICMS, ISS, IPI and PIS/COFINS). The determination of the manner in which various Brazilian federal, state and municipal taxes apply to the operations of Bunge is subject to different interpretations arising from the complex nature of Brazilian tax law. In addition to the matter discussed below, Bunge monitors other potential claims in Brazil regarding these value-added taxes. In particular, Bunge monitors the Brazilian federal and state governments’ responses to recent Brazilian Supreme Court decisions invalidating on constitutional grounds certain ICMS incentives and benefits granted by various states. While Bunge was not a recipient of any of the incentives and benefits that were the subject of these Supreme Court decisions, it has received other similar tax incentives and benefits which are being challenged before the Supreme Court. In August 2017, Complementary Law 160/2017 (“LC 160/2017”) was published, authorizing the states, through an agreement to be reached within the framework of CONFAZ (National Council of Fiscal Policy), to grant amnesty for tax debts arising from existing tax benefits granted without previous CONFAZ authorization and to maintain such existing benefits still in force for up to 15 years. In December 2017, Interstate Agreement ICMS 190/2017 was published to regulate Complementary Law 160/2017, which endorsed the past incentives granted by the Brazilian states at CONFAZ. The states have validated their incentives in accordance with this legislation. Considering that Bunge has not received any tax assessment from the states that granted these incentives or benefits related to their validity and, based on Bunge's evaluation of this matter as required by U.S. GAAP, no liability has been recorded in the consolidated financial statements.

On February 13, 2015, Brazil’s Supreme Federal Court ruled in a leading case that certain state ICMS tax credits for staple foods (including soy oil, margarine, mayonnaise and wheat flours) are unconstitutional. Bunge, like other companies in the Brazilian food industry, is involved in several administrative and judicial disputes with Brazilian states regarding these tax credits. While the leading case does not involve Bunge the leading case decision will be a precedent and should be applicable to Bunge and other companies. Based on management’s review of the ruling and its general application to Bunge’s pending cases, management recorded a liability in the fourth quarter of 2014. Since 2015, Bunge settled a portion of its outstanding liabilities in amnesty programs in certain Brazilian states. In October 2019, Bunge resolved outstanding liabilities in the Brazilian state of

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Rio Grande do Sul. Bunge paid 110 million Brazilian reais (approximately $ 27 million ) in December 2019 and will pay another 58 million Brazilian reais (approximately $ 14 million ) in 2020 or 2021.

As of December 31, 2019 , the Brazilian federal and state authorities have concluded examinations of the ICMS and PIS COFINS tax returns and have issued outstanding claims (plus applicable interest and penalties) of the following amounts:

		December 31,
(US$ in millions)	Years Examined	2019			2018
ICMS	1990 to Present	$	221		$	264
PIS/COFINS	2004 through 2016	$	268		$	231

Argentina Export Tax

Since 2010, the Argentine tax authorities have been conducting a review of income and other taxes paid by exporters and processors of cereals and other agricultural commodities in the country. In that regard, Bunge has been subject to a number of assessments, proceedings, and claims related to its activities. During 2011, Bunge’s subsidiary in Argentina paid $ 112 million of accrued export tax obligations under protest and preserved its rights with respect to such payment. In 2012, the Argentine government suspended Bunge’s Argentine subsidiary from a registry of grain traders. While the suspension has not had a material adverse effect on Bunge’s business in Argentina, these actions have resulted in additional administrative requirements and increased logistical costs on domestic grain shipments within Argentina. Bunge challenged these actions in the Argentine courts and in December 2019 the Federal Chamber of Córdoba ruled in favor of Bunge and reinstated Bunge into the registry.

Labor claims — The labor claims are principally claims against Bunge’s Brazilian subsidiaries. The labor claims primarily relate to dismissals, severance, health and safety, salary adjustments and supplementary retirement benefits.

Civil and other claims — The civil and other claims relate to various disputes with third parties, including suppliers and customers.

During the first quarter of 2017, Bunge received a notice from the Brazilian Administrative Council for Economic Defense ("CADE") initiating an administrative proceeding against its Brazilian subsidiary and two of its employees, certain of its former employees, several other companies in the Brazilian wheat milling industry, and others for alleged anticompetitive activities in the north and northeast of Brazil. Additionally, in the second quarter of 2018, Bunge received a notification from CADE that it has extended the scope of an existing administrative proceeding relating to alleged anticompetitive practices in the Rio Grande port in Brazil to include certain of Bunge's Brazilian subsidiaries and certain former employees of those subsidiaries. Bunge is defending against these actions; however, the proceedings are at an early stage and Bunge cannot, at this time, reasonably predict the ultimate outcome of the proceedings or sanctions, if any, which may be imposed.

Guarantees —Bunge has issued or was a party to the following guarantees at December 31, 2019 :

(US$ in millions)	Maximum Potential Future Payments
Unconsolidated affiliates guarantee (1)(2)	$	300
Residual value guarantee (3)	254
Total	$	554

(1)

Bunge has issued 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 which 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 December 31, 2019 , Bunge's potential liability was $ 168 million , and it has recorded a $ 16 million obligation related to these guarantees.

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(2)

Bunge has issued guarantees to certain third parties related to the performance of its unconsolidated affiliates. The terms of the guarantees are equal to the completion date of a port terminal which 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 December 31, 2019 , Bunge's maximum potential future payments under these performance guarantees was $ 46 million , and no obligation has been recorded related to these guarantees.

(3)

Bunge has issued guarantees to certain financial institutions which are party to certain operating lease arrangements for railcars and barges. 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 December 31, 2019 , 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 .

Bunge Limited has provided a guaranty to the Director of the Illinois Department of Agriculture as Trustee for Bunge North America, Inc. ("BNA"), an indirect wholly-owned subsidiary, which guarantees all amounts due and owing by BNA, to grain producers and/or depositors in the State of Illinois who have delivered commodities to BNA's Illinois facilities.

In addition, Bunge Limited has provided full and unconditional parent level guarantees of the outstanding indebtedness under certain credit facilities entered into, and senior notes issued by its 100% owned subsidiaries. At December 31, 2019 , Bunge's consolidated balance sheet includes debt with a carrying amount of $ 4,688 million related to these guarantees. This debt includes the senior notes issued by two of Bunge's 100 % owned finance subsidiaries, Bunge Limited Finance Corp. and Bunge Finance Europe B.V. There are largely no restrictions on the ability of Bunge Limited Finance Corp. and Bunge Finance Europe B.V. or any other Bunge subsidiary to transfer funds to Bunge Limited.

Commitments —At December 31, 2019, Bunge had approximately $ 705 million of purchase commitments related to inventories, $ 190 million of freight supply agreements, not accounted for as leases, $ 42 million of power supply contracts, $ 39 million of contractual commitments related to construction in progress, and $ 89 million other purchase commitments and obligations, such as take-or-pay contracts, throughput contracts, and debt commitment fees.

In connection with the acquisition of a 70 % ownership interest in Loders, the Company has entered into a put/call arrangement with the Loders' minority shareholder and may be required or elect to purchase the additional 30 % ownership interest in Loders within a specified time frame.

The Company classifies these redeemable equity securities outside of permanent stockholders’ equity as the equity securities are redeemable at the option of the holder. The carrying amount of redeemable noncontrolling interests is the greater of: (i) the initial carrying amount, increased or decreased for the noncontrolling interests’ share of net income or loss, equity capital contributions and distributions or (ii) the redemption value. Any resulting increases in the redemption amount, in excess of the initial carrying amount, increased or decreased for the noncontrolling interests’ share of net income or loss, equity capital contributions and distributions, are affected by corresponding charges against Retained earnings. Additionally, any such charges to Retained earnings will affect Net income (loss) available to Bunge common shareholders as part of Bunge's calculation of earnings per common share.

Share Repurchase Program —In May 2015, Bunge established a program for the repurchase of up to $ 500 million of Bunge's issued and outstanding common shares. The program has no expiration date. Bunge did not repurchase any common shares during the year ended December 31, 2019 . Total repurchases under the program from its inception in May 2015 through December 31, 2019 were 4,707,440 shares for $ 300 million .

Cumulative Convertible Perpetual Preference Shares —Bunge has 6,899,683 , 4.875 % cumulative convertible perpetual preference shares (convertible preference shares), par value $ 0.01 outstanding at December 31, 2019 . Each convertible preference share has an initial liquidation preference of $ 100 per share plus accumulated unpaid dividends up to a maximum of an additional $ 25 per share. As a result of adjustments made to the initial conversion price because cash dividends paid on Bunge Limited's common shares exceeded certain specified thresholds, each convertible preference share is convertible at any time at the holder's option into approximately 1.2224 common shares based on a conversion price of $ 81.8087 per convertible

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preference share, subject in each case to certain specified anti-dilution adjustments (which represents 8,434,172 Bunge Limited common shares at December 31, 2019 ).

If the closing market price of Bunge's common shares equals or exceeds 130 % of the conversion price of the convertible preference shares, for 20 trading days within any period of 30 consecutive trading days (including the last trading day of such period), Bunge may elect to cause all outstanding convertible preference shares to be automatically converted into the number of common shares that are issuable at the conversion price. The convertible preference shares are not redeemable by Bunge at any time.

The convertible preference shares accrue dividends at an annual rate of 4.875 % . Dividends are cumulative from the date of issuance and are payable, quarterly in arrears, on each March 1, June 1, September 1 and December 1, when, as and if declared by Bunge's Board of Directors. The dividends may be paid in cash, common shares or a combination thereof. Accumulated but unpaid dividends on the convertible preference shares will not bear interest. In each of the years ended December 31, 2019 , 2018 and 2017 , Bunge recorded $ 34 million of dividends, paid in cash, on its convertible preference shares.

Pension liability adjustment - On September 19, 2017 , Bunge approved changes to certain U.S. defined benefit pension plans (“Plans”). The changes were announced on September 26, 2017 to all U.S. employees of Bunge. These changes froze the Plans for future benefit accruals effective January 1, 2023 , and these Plans are closed for participation for employees hired on or after January 1, 2018 . As a result, Bunge remeasured the projected benefit obligations associated with the Plans as of September 30, 2017 and recognized a $ 31 million pension curtailment gain and $ 18 million remeasurement loss in Other comprehensive income (loss).

Accumulated Other Comprehensive Income (Loss) Attributable to Bunge — The following table summarizes the balances of related after-tax components of Accumulated other comprehensive income (loss) attributable to Bunge:

(US$ in millions)	Foreign Exchange Translation Adjustment (1)				Deferred Gains (Losses) on Hedging Activities				Pension and Other Postretirement Liability Adjustments				Unrealized Gains (Losses) on Investments				Accumulated Other Comprehensive Income (Loss)
Balance January 1, 2017	$	( 5,734	)		$	( 102	)		( 145		)		3				( 5,978		)
Other comprehensive income (loss) before reclassifications	187				( 105		)		5				2				89
Amount reclassified from accumulated other comprehensive income	—				( 37		)		—				( 4		)		( 41		)
Net-current period other comprehensive income (loss)	187				( 142		)		5				( 2		)		48
Balance, December 31, 2017	( 5,547		)		$	( 244	)		( 140		)		1				( 5,930		)
Other comprehensive income (loss) before reclassifications	( 1,119		)		99				( 16		)		—				( 1,036		)
Amount reclassified from accumulated other comprehensive income (loss)	29				—				3				( 1		)		31
Net-current period other comprehensive income (loss)	( 1,090		)		99				( 13		)		( 1		)		( 1,005		)
Balance, December 31, 2018	( 6,637		)		$	( 145	)		( 153		)		—				( 6,935		)
Other comprehensive income (loss) before reclassifications	( 119		)		1				( 24		)		—				( 142		)
Amount reclassified from accumulated other comprehensive income (loss)	1,493				( 26		)		( 14		)		—				1,453
Net-current period other comprehensive income (loss)	1,374				( 25		)		( 38		)		—				1,311
Balance, December 31, 2019	$	( 5,263	)		$	( 170	)		$	( 191	)		$	—			$	( 5,624	)

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(1)

Bunge has significant operating subsidiaries in Brazil, Argentina, North America, Europe and Asia-Pacific. The functional currency of Bunge's subsidiaries is generally the local currency. During the second quarter of 2018 , it was determined that Argentina's economy should be considered highly inflationary, and as such, beginning on July 1, 2018 , Bunge's Argentine subsidiaries changed their functional currency from the Argentine peso to the U.S. Dollar. The assets and liabilities of these subsidiaries are translated into U.S. dollars from the local currency at month-end exchange rates, and the resulting foreign currency translation gains (losses) are recorded in the consolidated balance sheets as a component of Accumulated other comprehensive income (loss). This change in functional currency did not have a material impact on Bunge's consolidated financial statements.

The following table sets forth the computation of basic and diluted earnings per common share:

	Year Ended December 31,
(US$ in millions, except for share data)	2019				2018				2017
Income (loss) from continuing operations	$	( 1,291	)		$	277			$	174
Net (income) loss attributable to noncontrolling interests and redeemable noncontrolling interests	11				( 20		)		( 14		)
Income (loss) from continuing operations attributable to Bunge	( 1,280		)		257				160
Convertible preference share dividends	( 34		)		( 34		)		( 34		)
Adjustment of redeemable noncontrolling interest (1)	( 8		)		—				—
Income (loss) from discontinued operations, net of tax	—				10				—
Net income (loss) available to Bunge common shareholders - Basic and diluted	$	( 1,322	)		$	233			$	126
Weighted-average number of common shares outstanding:
Basic	141,492,289				140,968,980				140,365,549
Effect of dilutive shares:
—stock options and awards (2)	—				734,803				899,528
—convertible preference shares (3)	—				—				—
Diluted	141,492,289				141,703,783				141,265,077
Basic earnings (loss) per common share:
Net income (loss) from continuing operations	$	( 9.34	)		$	1.58			$	0.90
Net income (loss) from discontinued operations	—				0.07				—
Net income (loss) attributable to Bunge common shareholders—basic	$	( 9.34	)		$	1.65			$	0.90
Diluted earnings (loss) per common share:
Net income (loss) from continuing operations	$	( 9.34	)		$	1.57			$	0.89
Net income (loss) from discontinued operations	—				0.07				—
Net income (loss) attributable to Bunge common shareholders—diluted	$	( 9.34	)		$	1.64			$	0.89

(1)	The redemption value adjustment of the Company's redeemable noncontrolling interest is deducted from income (loss) as discussed further in Note 23 . Redeemable Noncontrolling Interests.

(2)	The weighted-average common shares outstanding-diluted excludes approximately 7 million , 4 million and 4 million stock options and contingently issuable restricted stock units, which were not dilutive and not included in the computation of earnings per share for the years ended December 31, 2019 , 2018 and 2017 , respectively.

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(3)	Weighted-average common shares outstanding-diluted for the year ended December 31, 2019 , 2018 and 2017 excludes approximately 8 million weighted-average common shares that are issuable upon conversion of the convertible preference shares that were not dilutive and not included in the weighted-average number of common shares outstanding, respectively.

For the years ended December 31, 2019 , 2018 and 2017 , Bunge recognized approximately $ 39 million , $ 46 million and $ 29 million , respectively, of total compensation expense for awards classified as equity awards related to its stock option and restricted stock unit awards.

In 2019 , 2018 and 2017 , Bunge granted equity awards under the 2016 Equity Incentive Plan (the "2016 EIP"), a shareholder approved plan. Under the 2016 EIP, the Compensation Committee of Bunge's Board of Directors may grant equity based awards to officers, employees, consultants and independent contractors in the form of stock options, restricted stock units (performance based or time-vested) or other equity based awards. The 2016 EIP replaced the 2009 Equity Incentive Plan (the "2009 EIP"), also a shareholder approved plan, under which, beginning May 26, 2016, no further awards may be granted. Shares issued under the 2016 EIP may consist, in whole or in part, of authorized and unissued shares, treasury shares or shares reacquired by the Company in any manner, or a combination thereof.

Stock Option Awards—Options to purchase Bunge Limited common shares are granted with an exercise price equal to the grant date fair market value of Bunge common stock, vest over service periods that generally range from one to three years , and expire 10 years from the date of grant. Vesting may be accelerated in certain circumstances as provided in the plans or associated award agreements. Grant date fair value is recognized as compensation expense on a straight-line basis for option grants.

Restricted Stock Units—Restricted stock units ("RSUs") give recipients the right to receive shares of Bunge common stock upon the lapse of related restrictions determined by the Compensation Committee. Restrictions on RSUs may be based on continued service by the recipient through the designated term and/or based on the achievement of certain performance targets. These targets may be financial or market-based, and the number of units actually earned varies based on the level of achievement of predefined goals. Compensation expense is recognized on a straight-line basis over the vesting period for restricted stock units. RSUs generally vest over periods ranging from one to three years . Vesting may be accelerated under certain circumstances as defined in the plans or associated award agreements. RSUs are generally settled in shares of Bunge common stock upon satisfaction of the applicable vesting terms. Where share settlement may be prohibited under local law, RSUs are settled in cash. At the time of settlement, a participant holding a vested restricted stock unit will also be entitled to receive corresponding accrued dividend equivalent share payments.

Bunge has also established the Bunge Limited 2017 Non-Employee Directors' Equity Incentive Plan (the "2017 Directors' Plan"), a shareholder approved plan. Under the 2017 Directors' Plan, the Compensation Committee may grant equity based awards to non-employee directors of Bunge Limited. Awards may consist of restricted stock, restricted stock units, deferred restricted stock units and non-statutory stock options. The 2017 Directors' Plan replaced the 2007 Non-Employee Directors Equity Incentive Plan, under which no further awards may be granted.

Restricted Stock Units—Restricted stock units granted to non-employee directors generally vest on the first anniversary of the grant date, provided the director continues to serve on the Board until such date, and are settled in shares of Bunge Limited common stock. At the time of settlement, a participant holding a vested restricted stock unit is also entitled to receive corresponding accrued dividend equivalent share payments.

The fair value of each stock option granted under any of Bunge's equity incentive plans is estimated on the grant date using the Black Scholes Merton option pricing model. Assumptions for the prior three years are noted in the following table. The expected volatility of Bunge's common shares is a weighted average of historical volatility calculated using the daily closing price of Bunge's shares up to the grant date and implied volatilities on open option contracts on Bunge's stock as of the grant date. Bunge uses historical employee exercise behavior for valuation purposes. The expected option term of granted options represents the period of time that the granted options are expected to be outstanding based on historical experience and giving consideration for the contractual terms, vesting periods and expectations of future employee behavior. The risk-free interest rate is based on U.S. Treasury zero-coupon bonds with a term equal to the expected option term of the respective grants and grant dates.

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	December 31,
Assumptions:	2019			2018			2017
Expected option term (in years)	5.97			6.31			5.86
Expected dividend yield	3.81	%		2.44	%		2.09	%
Expected volatility	25.91	%		25.57	%		24.85	%
Risk-free interest rate	2.36	%		2.75	%		2.21	%

A summary of option activity under the plans for the year ended December 31, 2019 is presented below:

Options	Shares			Weighted-Average Exercise Price				Weighted-Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding at January 1, 2019	6,122,304			$	70.93
Granted	1,163,100			$	52.53
Exercised	( 332,942	)		$	50.43
Forfeited or expired	( 1,144,443	)		$	72.75
Outstanding at December 31, 2019	5,808,019			$	68.06			4.63		$	12
Exercisable at December 31, 2019	4,542,233			$	70.16			3.46		$	8

The weighted-average grant date fair value of options granted during the years ended December 31, 2019 , 2018 and 2017 was $ 9.07 , $ 16.75 and $ 17.13 , respectively. The total intrinsic value of options exercised during the years ended December 31, 2019 , 2018 and 2017 was approximately $ 1 million , $ 4 million and $ 11 million , respectively. The excess tax benefit classified as a financing cash flow was not significant for any of the periods presented.

At December 31, 2019 , $ 8 million of total unrecognized compensation cost related to non-vested stock options granted under the equity incentive plan is expected to be recognized over the next two years .

A summary of restricted stock unit activity under Bunge's plans for the year ended December 31, 2019 is presented below.

Restricted Stock Units	Shares			Weighted-Average Grant-Date Fair Value
Restricted stock units at January 1, 2019	1,873,293			$	69.29
Granted	1,208,335			53.01
Vested/issued (2)	( 518,596	)		59.79
Forfeited/cancelled (2)	( 763,552	)		60.37
Restricted stock units at December 31, 2019 (1)	1,799,480			$	64.89

(1)	Includes accrued unvested dividends, which are payable in Bunge's common shares upon vesting of underlying restricted stock units.

(2)

During the year ended December 31, 2019 , Bunge issued 369,119 common shares, net of common shares withheld to cover taxes, including related common shares representing accrued dividends, with a weighted-average fair value of $ 59.79 per share. During the year ended December 31, 2019 , 31,627 performance-based restricted stock units vested. During the year ended December 31, 2019 , Bunge canceled approximately 454,426 shares related to performance-based restricted stock unit awards that did not vest due to non-achievement of performance targets.

The fair value of RSU awards is determined based on the market value of the Company's shares on the grant date. The weighted-average grant date fair value of restricted stock units granted during the years ended December 31, 2019 , 2018 and 2017 was $ 53.01 , $ 75.06 and $ 76.79 , respectively.

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At December 31, 2019 , there was approximately $ 45 million of total unrecognized compensation cost related to restricted stock units granted under the equity incentive plans, which is expected to be recognized over the next two years . The total fair value of restricted stock units vested during the year ended December 31, 2019 was approximately $ 31 million .

Common Shares Reserved for Share-Based Awards —The 2017 Directors' Plan and the 2016 EIP provide that 120,000 and 5,800,000 common shares, respectively, are to be reserved for grants of stock options, restricted stock units and other awards under the plans. At December 31, 2019 , 50,408 and 1,451,918 common shares were available for future grants under the 2017 Directors' Plan and the 2016 EIP, respectively. No shares are currently available for grant under any other Bunge Limited equity incentive plan.

The Company routinely leases storage facilities, transportation equipment, land, and office facilities which are typically classified as operating leases. The accounting for some of the Company's leases may require significant judgment when determining whether a contract is or contains a lease, the lease term, and the likelihood of renewal or termination options. Leases with an initial term of more than 12 months are recognized on the balance sheet as right-of-use assets (Operating lease assets) and lease liabilities for the obligation to make payments under such leases (Current operating lease obligations and Non-current operating lease obligations). As of the lease commencement date, the lease liability is initially measured as the present value of lease payments not yet paid. The lease asset is initially measured equal to the lease liability and adjusted for lease payments made at or before lease commencement (e.g., prepaid rent), lease incentives, and any initial direct costs. Over time, the lease liability is reduced for lease payments made and the lease asset is reduced through expense, classified as either Cost of goods sold or Selling, general and administrative expense depending upon the nature of the lease. Lease assets are subject to review for impairment in a manner consistent with Property, plant and equipment. Leases with an initial term of 12 months or less (“short-term leases”) are not recorded on the balance sheet, and lease expense for these short-term leases is recognized on a straight-line basis over the lease term.

The Company’s leases range in length of term, with an average remaining lease term of 5.1 years , but with certain land leases continuing for up to 92 years . Additionally, certain leases contain renewal options that can extend the lease term up to an additional 5 years . Renewal options are generally exercisable solely at the Company’s discretion. When a renewal option is reasonably certain to be exercised, such additional terms are considered when calculating the associated operating lease asset and liability. When determining the lease liability at commencement of the lease, the present value of lease payments is based on the Company’s incremental borrowing rate determined using a portfolio approach and the Company’s incremental cost of debt, adjusted to arrive to the rate in the applicable country and for the applicable term of the lease, as the rate implicit in the lease is generally not readily determinable. As of December 31, 2019, such weighted average discount rate was 4.5 % .

Certain of the Company’s freight supply agreements for ocean freight vessels and rail cars, as well as land leases associated with agricultural partnership agreements for the production of sugarcane, may include rental payments that are variable in nature. Variable payments on time charter agreements for ocean freight vessels under freight supply agreements are dependent on then current market daily hire rates. Variable payments for certain rail cars can be based on volumes, and in some cases, benchmark interest rates. In December 2019, Bunge contributed its Brazilian sugar and bioenergy operations to a newly formed joint-venture, BP Bunge Bioenergia. As such, the land leases associated with agricultural partnership agreements for the production of sugarcane have been contributed to BP Bunge Bioenergia, and are not recognized in the consolidated balance sheet at December 31, 2019. Payments under the Company's agricultural partnership agreements in Brazil, through November 2019, were dependent on the quantity of sugarcane produced per hectare, the total recoverable sugar ("ATR") per ton of sugarcane produced, and the price for each kilogram of ATR as determined by Consecana, the state of São Paulo sugarcane, sugar and ethanol council. All such variable payments are not included in the calculation of the associated operating lease asset or liability subsequent to the inception date of the associated lease and are recorded as expense in the period in which the adjustment to the variable payment obligation is incurred. Certain of the Company’s lease agreements related to railcars and barges contain residual value guarantees (see Note 22, Commitments and Contingencies ). None of the Company’s lease agreements contain material restrictive covenants.

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The components of lease expense were as follows:

(US$ in millions)		Year Ended December 31, 2019
Operating lease cost		$	322
Short-term lease cost		703
Variable lease cost		20
Sublease income		( 125		)
Total lease cost		$	920

Supplemental cash flow information related to leases was as follows:

		Year Ended December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows associated with operating leases		$	320
Supplemental non-cash information:
Right-of-use assets obtained in exchange for lease obligations		$	256

Maturities of lease liabilities for operating leases as of December 31, 2019 , are as follows:

(US$ in millions)
2020		$	243
2021		196
2022		149
2023		108
2024		55
Thereafter		108
Total lease payments (1)		859
Less imputed interest		104
Present value of lease liabilities, as separately presented on the condensed consolidated balance sheet		$	755

(1) Minimum lease payments have not been reduced by minimum sublease income receipts of $ 34 million due in future periods under non-cancelable subleases. Non-cancelable subleases primarily relate to agreements with third parties for the use of portions of certain facilities with remaining sublease terms of approximately six years , as well as an agreement with an unconsolidated joint venture in which the Company subleases rail cars with remaining sublease terms of approximately three to four years . Additionally, the Company may enter into re-let agreements to sell the right to use ocean freight vessels under time charter agreements when excess capacity is available.

As of December 31, 2019 , the Company has additional operating leases for freight supply agreements on ocean freight vessels, that have not yet commenced, of $ 223 million . These operating leases will commence in 2020 , with lease terms of up to eight years .

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Prior year lease disclosures

The following pertains to previously disclosed information from Note 21, Commitments and contingencies and Note 26, Lease commitments , contained in the Company's 2018 Annual Report on Form 10-K, which incorporates information about leases now in scope of ASC 842, Leases , disclosed above.

Operating leases for storage facilities, transportation equipment and office facilities — Future minimum lease payments by year and in the aggregate under non-cancelable operating leases with initial term of one year or more at December 31, 2018 are as follows:

(US$ in millions)
2019	$	134
2020	107
2021	84
2022	58
2023	48
Thereafter	126
Total (1)	$	557

(1) Minimum lease payments have not been reduced by minimum sublease income receipts of $ 43 million due in future periods under non-cancelable subleases.

Freight Supply Agreements —In the ordinary course of business, the Company enters into time charter agreements for the use of ocean freight vessels for the purpose of transporting agricultural commodities. In addition, the Company sells the right to use these ocean freight vessels when excess freight capacity is available. These agreements generally range from two months to approximately seven years . Future minimum payment obligations due under these agreements as of December 31, 2018 are as follows:

(US$ in millions)
2019	$	172
2020 and 2021	176
2022 and 2023	121
2024 and thereafter	37
Total	$	506

Bunge has five reportable segments - Agribusiness, Edible Oil Products, Milling Products, Sugar and Bioenergy, and Fertilizer, which are organized based upon similar economic characteristics and are similar in nature of products and services offered, the nature of production processes, and the type and class of customer and distribution methods. The Agribusiness segment is characterized by both inputs and outputs being agricultural commodities and thus high volume and low margin. The Edible Oil Products segment involves the processing, production and marketing of products derived from vegetable oils. The Milling Products segment involves the processing, production and marketing of products derived primarily from wheat and corn. Up until December 2019, when the Company contributed its Brazilian sugar and bioenergy operations forming the majority of our Sugar and Bioenergy segment into a joint venture with the Brazilian biofuels business of BP p.l.c, the Sugar and Bioenergy segment primarily involved sugarcane growing and milling in Brazil, as well as sugarcane-based ethanol production and corn-based ethanol investments and related activities. Following the classification of the Brazilian fertilizer distribution and North American fertilizer businesses as discontinued operations, the activities of the Fertilizer segment include its port operations in Brazil and Argentina and its blending and retail operations in Argentina.

The “Other” column in the following table contains the reconciliation between the totals for reportable segments and Bunge's consolidated totals, which consists primarily of amounts attributable to corporate and other items not allocated to the reportable segments, discontinued operations, and inter-segment eliminations. Transfers between the segments are generally

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valued at market. The segment revenues generated from these transfers are shown in the following table as “Inter-segment revenues.”

(US$ in millions)	Agribusiness				Edible Oil Products				Milling Products				Sugar and Bioenergy				Fertilizer				Other (1)				Total
2019
Net sales to external customers	$	28,407			$	9,186			$	1,739			$	1,288			$	520			$	—			$	41,140
Inter—segment revenues	4,784				153				1				1				28				( 4,967		)		—
Foreign exchange gains (losses)	( 32		)		—				4				( 89		)		—				—				( 117		)
Noncontrolling interests (1)	2				7				—				—				( 3		)		5				11
Other income (expense)—net	108				( 3		)		5				( 7		)		( 5		)		75				173
Segment EBIT (3)	491				59				59				( 1,623		)		54				69				( 891		)
Depreciation, depletion and amortization	( 254		)		( 159		)		( 54		)		( 74		)		( 7		)		—				( 548		)
Investments in affiliates	457				—				13				357				—				—				827
Total assets	12,123				3,789				1,377				430				348				250				18,317
Capital expenditures	222				149				22				118				2				11				524
2018
Net sales to external customers	$	32,206			$	9,129			$	1,691			$	2,257			$	460			$	—			$	45,743
Inter—segment revenues	4,641				161				—				19				2				( 4,823		)		—
Foreign exchange gains (losses)	( 104		)		—				2				7				( 6		)		—				( 101		)
Noncontrolling interests (1)	( 14		)		( 12		)		—				1				( 2		)		7				( 20		)
Other income (expense)—net	79				( 8		)		( 3		)		4				—				( 24		)		48
Segment EBIT (4)	645				122				90				( 135		)		39				( 24		)		737
Discontinued operations (2)	—				—				—				—				—				10				10
Depreciation, depletion and amortization	( 257		)		( 153		)		( 58		)		( 146		)		( 8		)		—				( 622		)
Investments in affiliates	406				—				—				45				—				—				451
Total assets	11,865				3,940				1,448				1,681				330				161				19,425
Capital expenditures	219				129				23				110				5				7				493
2017
Net sales to external customers	$	31,741			$	8,018			$	1,575			$	4,054			$	406			$	—			$	45,794
Inter—segment revenues	4,323				154				5				45				4				( 4,531		)		—
Foreign exchange gains (losses)	85				3				( 3		)		11				( 1		)		—				95
Noncontrolling interests (1)	( 9		)		( 8		)		—				—				( 2		)		5				( 14		)
Other income (expense)—net	56				( 7		)		( 5		)		( 4		)		—				—				40
Segment EBIT (5)	256				126				63				( 12		)		3				—				436
Depreciation, depletion and amortization	( 267		)		( 105		)		( 61		)		( 164		)		( 12		)		—				( 609		)
Investments in affiliates	411				—				—				50				—				—				461
Total assets	12,094				2,610				1,460				2,195				330				182				18,871
Capital expenditures	318				136				45				139				9				15				662

(1)	Includes the noncontrolling interests' share of interest and tax to reconcile to consolidated noncontrolling interests.

(2)	Represents Net income (loss) from discontinued operations.

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(3)

2019 EBIT includes a $ 55 million loss in the Sugar & Bioenergy segment, $ 49 million in Brazil and $ 6 million in North America, due to the dispositions of certain subsidiaries and equity investments, which are recorded in Other income (expense)-net. Additionally, 2019 EBIT includes a $ 19 million gain in the Milling Products segment in Brazil, on the sale of certain assets, which are recorded in Other income (expense)-net. Bunge recorded pre-tax, impairment charges of $ 1,825 million , of which $ 37 million , $ 1,678 million and $ 110 million are in Selling, general and administrative expenses, Cost of goods sold and Other income (expense)—net, respectively. Of these pre-tax impairment charges, $ 1,535 million was allocated to Sugar and Bioenergy, $ 154 million to Edible Oil Products, $ 105 million to Agribusiness, $ 29 million to Milling Products, and $ 2 million to Other.

(4)

2018 EBIT includes a $ 16 million loss in the Sugar & Bioenergy segment and a $ 10 million loss in the Agribusiness segment, due to the dispositions of certain equity investments, which are recorded in Other income (expense)-net. In addition, Bunge recorded pre-tax, impairment charges of $ 18 million , of which $ 7 million , $ 10 million and $ 1 million are in Selling, general and administrative expenses, Cost of goods sold and Other income (expense)—net, respectively. Of these pre-tax impairment charges, $ 12 million was allocated to Agribusiness, $ 5 million to Sugar and Bioenergy and $ 1 million to Edible Oil Products.

(5)

2017 EBIT includes a $ 9 million gain related to the disposition of a subsidiary in the Agribusiness segment in Brazil, which is recorded in Other income (expense)-net. In addition, Bunge recorded pre-tax, impairment charges of $ 52 million , of which $ 19 million , $ 16 million and $ 17 million are in Selling, general and administrative expenses, Cost of goods sold and Other income (expense)—net, respectively. Of these pre-tax impairment charges, $ 41 million was allocated to Agribusiness, $ 7 million to Sugar and Bioenergy, $ 3 million to Edible Oil Products, and $ 1 million to Milling Products.

Total segment earnings before interest and taxes ("EBIT") is an operating performance measure used by Bunge's management to evaluate segment operating activities. Bunge's management believes total segment EBIT is a useful measure of operating profitability, since the measure allows for an evaluation of the performance of its segments without regard to its financing methods or capital structure. In addition, EBIT is a financial measure that is widely used by analysts and investors in Bunge's industries.

A reconciliation of total segment EBIT to net income attributable to Bunge follows:

	Year Ended December 31,
(US$ in millions)	2019				2018				2017
Total segment EBIT from continuing operations	$	( 891	)		$	737			$	436
Interest income	31				31				38
Interest expense	( 339		)		( 339		)		( 263		)
Income tax (expense) benefit	( 86		)		( 179		)		( 56		)
Income (loss) from discontinued operations, net of tax	—				10				—
Noncontrolling interests' share of interest and tax	5				7				5
Net income (loss) attributable to Bunge	$	( 1,280	)		$	267			$	160

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Net sales by product group to external customers were as follows:

	Year Ended December 31,
(US$ in millions)	2019				2018				2017
Agricultural Commodity Products	$	28,407			$	32,206			$	31,741
Edible Oil Products	9,186				9,129				8,018
Wheat Milling Products	1,050				1,037				988
Corn Milling Products	689				654				587
Sugar and Bioenergy Products	1,288				2,257				4,054
Fertilizer Products	520				460				406
Total	$	41,140			$	45,743			$	45,794

Geographic area information for net sales to external customers, determined based on the location of the subsidiary making the sale, and long-lived assets follows:

	Year Ended December 31,
(US$ in millions)	2019				2018				2017
Net sales to external customers:
Europe	$	15,278			$	17,802			$	16,313
United States	9,147				9,955				10,128
Asia-Pacific	8,019				8,651				8,613
Brazil	5,195				5,553				7,040
Argentina	1,015				1,166				1,433
Canada	1,246				1,216				1,114
Rest of world	1,240				1,400				1,153
Total	$	41,140			$	45,743			$	45,794

	Year Ended December 31,
(US$ in millions)	2019				2018				2017
Long-lived assets (1) :
Brazil	$	1,065			$	1,994			$	2,406
United States	1,413				1,561				1,267
Europe	2,057				1,912				1,485
Asia-Pacific	613				679				483
Canada	448				401				440
Argentina	190				161				216
Rest of world	381				382				341
Total	$	6,167			$	7,090			$	6,638

(1)	Long-lived assets include Property, plant and equipment, net, Goodwill and Other intangible assets, net, Investments in affiliates and non-current assets held for sale.

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The Company’s revenue comprises sales from commodity contracts that are accounted for under ASC 815, Derivatives and Hedging (ASC 815) and sales of other products and services that are accounted for under ASC 606, Revenue from Contracts with Customers (ASC 606). The following tables provide a disaggregation of Net sales to external customers between sales from contracts with customers and sales from other arrangements:

		Year Ended December 31, 2019
(US$ in millions)		Agribusiness				Edible Oil Products				Milling Products				Sugar and Bioenergy				Fertilizer				Total
Sales from other arrangements		$	27,457			$	1,953			$	71			$	729			$	—			$	30,210
Sales from contracts with customers		950				7,233				1,668				559				520				10,930
Net sales to external customers		$	28,407			$	9,186			$	1,739			$	1,288			$	520			$	41,140

		Year Ended December 31, 2018
(US$ in millions)		Agribusiness				Edible Oil Products				Milling Products				Sugar and Bioenergy				Fertilizer				Total
Sales from other arrangements		$	31,040			$	1,818			$	65			$	1,568			$	—			$	34,491
Sales from contracts with customers		1,166				7,311				1,626				689				460				11,252
Net sales to external customers		$	32,206			$	9,129			$	1,691			$	2,257			$	460			$	45,743

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(1)	Earnings per share attributable to Bunge common shareholders for both basic and diluted is computed independently for each period presented. As a result, the sum of the quarterly earnings per share for the years ended December 31, 2019 and 2018 may not equal the total computed for the year.

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